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HomeMy WebLinkAbout08/18/10 RDA AGENDA u v P BAKERSFIELD REDEVELOPMENT AGENCY AGENDA SPECIAL MEETING OF AUGUST 18, 2010 Conference Room A, City Hall North 1600 Truxtun Avenue 4:00 p.m. SPECIAL MEETING 1. ROLL CALL 2. PUBLIC STATEMENTS 3. CONSENT CALENDAR a. Minutes of the July 12, 2010 regular meeting. b. Approval of department payments from June 30, 2010 to August 5, 2010 in the amount of $1,712,133.01. C. Amendment No. 2 to Agreement No. RA08-015 with Chelsea Investment Corporation to authorize Agency to construct street improvements on private streets consisting of 14th Street north, 131h Street, and a portion of "R" Street for South Mill Creek Affordable Apartment development, require developer to participate in a landscape maintenance district, and be responsible for payment of maintenance, irrigation and electricity costs. d. Amendment No. 3 to Agreement No. RA09-001 with Creekview Villas, LLC, to authorize Agency to construct street improvements on private streets consisting of 14th Street south, 13th Street, and a portion of "R" Street within the Creekview Villas development, require developer to participate in a landscape maintenance district and be responsible for payment of maintenance, irrigation and electricity costs. e. Amendment No. 2 to Agreement No. RA09-004 with Mill Creek Courtyard, LLC to authorize Agency to construct street improvements on private streets consisting of 14th Street south, 13th Street, and a portion of "R" Street for the Mill Creek Courtyard development, require developer to participate in a landscape maintenance district and be responsible for payment of maintenance, irrigation and electricity costs. f. Assignment Agreement for use of Home Funds for the 191h Street Senior Plaza Project with the Bakersfield Redevelopment Agency for use of federal HOME Investment Partnership Funds ($1,300,000) for a housing project located at 519 19th Street. Staff recommends approval of Consent Calendar items 3. a. through 3. f. 4. PUBLIC HEARINGS 5. REPORTS a. Update status of Baker Street Mixed Use Project. b. Update status of Mill Creek 6. DEFERRED BUSINESS 7. NEW BUSINESS a. Agreement between the Bakersfield Redevelopment Agency and the 19th and "I" Investment Group, LLC for $612,000 housing set-aside funds for the construction and development of a nine (9) unit rental housing project at 1612 19th street. Staff recommends approval of Agreement and Executive Director to execute all necessary documents. b. Amendment No. 2 to Agreement No. RA08-014 with 19th Street Senior Plaza, LLC, (in an amount not to exceed $3,200,000) for the construction and development of 67 units of senior rental housing and a parking garage. 1. Authorize the loan of $1,300,000 in federal HOME Investment Partnership Funds for the development of eleven (11) affordable housing units at the 191h Street Senior Plaza Project located at 519 19th Street. 2. Authorize a grant of $1,900,000 necessary to partially fund the cost of engineering, design and construction of the parking garage located at 511 19th Street. Staff recommends approval of Amendment. c. South Mill Creek Easement Purchase: 1. Loan Reimbursement Agreement with the City of Bakersfield for $950,000 for the purchase of a City owned 1.95 linear acre easement located to the east of P/Q Streets and south of the B.N.S.F. railroad a tracks for the South Mill Creek Project. Staff recommends approval of Agreement. 8. AGENCY STATEMENTS 9. CLOSED SESSIONS a. Conference with Legal Counsel - Existing Litigation Closed session; pursuant to subdivision (a) of Government Code section 54956.9 for Bakersfield Redevelopment Agency vs. Whitlock Property, LLC, et al. KCSC Case No. S-1500-CV-265174 SPC RECESS TO CLOSED SESSION 10. CLOSED SESSION ACTION 11. WORKSHOPS 12. ADJOURNMENT Res ctfully submitt T ndy Executive Direct O~ycB oRJrEniS ADMINISTRATIVE REPORT 1000 MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: 3.a. TO: Bakersfield Redevelopment Agency APPROVED FROM: Roberta Gafford, Secretary DEPARTMENT HEAD DATE: June 30, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Minutes of the July 12, 2010 regular meeting. RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: A , ADMINISTRATIVE REPORT MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: 3. b. TO: Bakersfield RDA APPROVED FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: August 5, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Approval of department payments from June 30, 2010 to August 5, 201 in the amount of $1,712,133.01. RECOMMENDATION: Staff recommends approval of payments totaling $1,712,133.01. BACKGROUND: Individual payments exceeding $3,500 in the above total are listed below. Creekview Villas LLC 182,496.06 Disbursement requests era rmt #RA09-001 San Joaquin Fence & Supply 3,582.98 Temporary fencing rental California Redevelopment Association 5,500.00 Membership renewals Creekview Villas LLC 106,193.55 Disbursement requests era rmt #RA09-001 Elite Landscaping Incorporated 26,838.49 Mill Creek canal refurbishment era rmt #09-031 California Utility Consultants, Inc 8,000.00 Contract amount ,for PG & E relocation design Housing Authority of the Count of Kern 128,716.50 Bakers Street Village Phase I draw request era rmt #RA10-003 BK Transmissions 10,000.00 Relocation settlement for 700 California Avenue Creekview Villas LLC 226,154.11 Disbursement requests era rmt # RA09-001 Valle Tree & Construction 4,480.00 Demolition of improvements at 525 181h Street era rmt #09-139 Chicago Title Company 50,000.00 Down payment assistance era rmt # DAP 10-003 U.S. Bank 203,303.28 RDA, SEPA and OTKP interest on Tax Allocation Bonds The Bank of New York 327,322.90 Interest & principle for US Govt. Guaranteed Sec 108 Note SAKim G\ADMIN-BRDA\ADMIN-BRDA-AP-201 1\ADMIN-BRDA-AP-08-09-10.doc l A ADMINISTRATIVE REPORT Brown Armstrong 8,190.00 Consultant Services era rmt # 10-013 Wells Fargo Bank Corp Trust Serv. $ 405,611.53 Payment of Principle, Interest and annual fee on (Bank loan sales a rmnt #CIEDB-B08-083 SAKim GADMIN-13RDMADMIN-BRDA-AP-2011\ADMIN-BRDA-AP-08-09-10.doc 2 G A Q`yW 4 ADMINISTRATIVE REPORT io MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: ,3, j TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: August b, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 2 to Agreement No. RA08-015 with Chelsea Invest ent Corporation to authorize Agency to construct street improvements on private streets consisting of 141h Street north, 13th Street, and a portion of "R" Street for the South Mill Creek Affordable Apartment development, require developer to participate in a landscape maintenance district, and be responsible for payment of maintenance, irrigation, and electricity costs. RECOMMENDATION: Staff recommends approval. BACKGROUND: On September 23, 2008, the Bakersfield Redevelopment Agency approved a Disposition and Development Agreement with Chelsea Investment Corporation for construction of a 70 unit multi- family affordable apartment complex in the South Mill Creek Mixed Use Redevelopment Project, The Developer was successful in obtaining construction financing for the project and is ready to begin construction within the next 90 days. Over the last few months staff has been working with a local. engineering firm and landscape architect to provide engineering design, surveying, landscaping, and preparation of construction documents for construction of the interior streets within the South Mill Creek Redevelopment Project area consistent with the Mill Creek design theme. Staff intends to award the contract for the construction of the interior streets in September 2010. Funds for these improvements will mostly be paid from the Prop 1 C grant secured in 2009 from the state. To achieve the construction of the interior streets and establish a process for the developer to pay for the maintenance of the street improvements including landscaping maintenance, irrigation, and electricity costs, staff is requesting approval to amend Disposition and Development Agreement RA08-015 for the South Mill Creek Affordable Apartment 70 unit multi- family apartment complex. Significant action items to the amendment are as follows: Installation Obligations: 1. Infrastructure Improvements: Authorize Agency to construct street improvements on private streets consisting of 14th Street north, 13th Street, and a portion of "R" Street from S:\Admins\RDA\RDA Admins 2010\Che1seaDDAAmendment#2.docx 8/6/2010 9:51 AM ADMINISTRATIVE REPORT Page 2 the circle north, all alley's, and on-site infrastructure within the South Mill Creek Affordable Apartment development. 2. DEVELOPER will install the sidewalk, street, curb, gutter, landscaping, irrigation and lighting as per master plan and approved project landscape plan along the north side of 14th Street and west side of "S" Street from 14th Street to the railroad tracks, 3. The City of Bakersfield Public Works Department will install the street, curb, gutter, landscaping, irrigation (including any required irrigation controls, water meters and points of connection) and lighting (including 10 historic street lights and points of connection) along the east side of "S" Street from the railroad tracks to California Avenue. Developer Maintenance Obligations: 4. Maintain the street, curb, gutter, landscaping, irrigation and street lighting along the north side of 14th Street and will provide and pay for electrical power to said street lighting and water to said landscaping through privately metered or fixed-fee based points of connection. 5. Maintain the landscaping and irrigation along the east side of "S" Street from the railroad tracks to California Avenue, and along the west side of "S" Street from the railroad tracks to 14th Street and will provide and pay for water to said landscaping through privately metered or fixed-fee based points of connection. City Obligations: 1, The City of Bakersfield Public Works Department will maintain the streets, curb, gutter and street lighting along "S" Street from the railroad tracks to California Avenue and will provide and pay for electrical power to the street lights through publicly maintained points of connection. Staff recommends approval of Amendment No. 2 for the South Mill Creek Affordable Apartment development agreement under the terms and conditions outlined above. S:Wdmins\RDA\RDA Admins 2010\Che1seaDDAAmendment#2.docx 8/6/20109:51 AM BA OF y.vo 4 ~s IFo ADMINISTRATIVE REPORT MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD ~Cl DATE: August 3, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No, 3 to Agreement No. RA09-001 with Creekview Villas, LL to authorize Agency to construct street improvements on private streets consis Ing of 141h Street south, 131h Street, and a portion of "R" Street within the Creekview Villas development, require developer to participate in a landscape maintenance district, and be responsible for payment of maintenance, irrigation, and electricity costs. RECOMMENDATION: Staff recommends approval, BACKGROUND: In February 2009, the Bakersfield Redevelopment Agency approved a Disposition and Development Agreement with Southwest Consulting for the construction of 36 upscale townhomes. To provide a catalyst for development, staff developed a construction phasing plan for the Creekview Villas starting with 14 units as the first phase. Construction on the first 14 units began in May 2010, Construction completion is estimated to be the fall 2010. In order for the developer to sale the units, the interior streets, off-site improvements, and landscaping infrastructure will need to be installed. In addition, the developer will be required to establish a Homeowners Association to pay for the costs of maintaining the street improvements installed including the landscaping maintenance, irrigation, and electricity costs. Over the last few months staff has been working with a local engineering firm and landscape architect to provide engineering design, surveying, landscaping, and preparation of construction documents for construction of the interior streets within the South Millcreek project area. Staff intends to award the contract for the construction of the interior streets in August 2010, Funds for these improvements will mostly be paid from the Prop 1 C grant secured in 2009 from the state. To achieve the development of this phasing plan, staff is requesting approval to amend Disposition and Development Agreement RA09-001 for the Creekview Villas. Significant action items to the amendment are as follows: 1. Infrastructure Improvements: Authorize Agency to construct street improvements on private streets consisting of 14th street south, 13th street, and a portion of "R" street from S:\Admins\RDA\RDA Admins 2010\Creekview Villas Amendment #3.docx 8/3/2010 10:59 AM ADMINISTRATIVE REPORT Page 2 the circle north, all alley's, and on-site infrastructure within the Creekview Villas development, Street and off-site improvements include curbs, gutters, landscaping, trees, lighting, and landscaping a 5 foot buffer along the canal. 2. Require the developer and its successors to be responsible for maintenance of all private streets and off-site improvements constructed on 141h Street south, 13th Street, and a portion of "R" Street from the circle north, all alley's and on-site infrastructure within the Creekview Villas development, and pay for landscaping maintenance, irrigation, and electricity costs. 3. Require the developer to participate in the formation of a landscape and maintenance district for the maintenance of the Millcreek Linear Park area adjacent to the canal and the Creekview Villas development. Staff recommends approval of Amendment No. 3 for the Creekview Villas development agreement under the terms and conditions outlined above. S:\Admins\RDA\RDA Admins 2010\Creekview Villas Amendment #3.docx 8/3/201010:59 AM ADMINISTRATIVE REPORT 'E~CIFORI' MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: C TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: July 28, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 2 to Agreement No. RA09-004 with Mill Creek Courtyard, LL , to authorize Agency to construct street improvements on private streets consisting of 14th Street south, 13th Street, and a portion of "R" Street for the Mill Creek Courtyard development, require developer to participate in a landscape maintenance district, and be responsible for payment of maintenance, irrigation, and electricity costs. RECOMMENDATION: Staff recommends approval, BACKGROUND: In March 31, 2009, the Bakersfield Redevelopment Agency approved a Disposition and Development Agreement with Mill Creek Courtyard, LLC., for construction of a 57 unit multi-family apartment complex in the South Mill Creek Mixed Use Redevelopment Project. The Developer has encountered numerous obstacles in obtaining construction financing for the project so the project timeline for construction was extended for an additional three years and an interim financing plan was developed, Over the last few months staff has been working with a local engineering firm and landscape architect to provide engineering design, surveying, landscaping, and preparation of construction documents for construction of the interior streets within the South Mill Creek Redevelopment Project area consistent with the Mill Creek design theme, Staff intends to award the contract for the construction of the interior streets in August 2010. Funds for these improvements will mostly be paid from the Prop 1 C grant secured in 2009 from the state. Although the timeline for construction of the Mill Creek Courtyard was extended for an additional three years, the interior streets, off-site improvements, and landscaping infrastructure will need to be installed. In addition, the developer will be required to establish a process to pay for the costs of maintaining the street improvements installed including the landscaping maintenance, irrigation, and electricity costs. To achieve the construction of the interior streets and establish a process to pay for the maintenance costs, staff is requesting approval to amend Disposition and Development S:\Admins\RDA\RDA Admins 2010\Mi11 Creek Courtyard Amendment #2.docx 7/28/2010 3:11 PM ADMINISTRATIVE REPORT Page 2 Agreement RA09-004 for the Mill Creek Courtyard 57 unit multi-family apartment complex. Significant action items to the amendment are as follows; 1. Infrastructure Improvements; Authorize Agency to construct street improvements on private streets consisting of 14th Street south, 13th Street, and a portion of "R" Street from the circle north, all alley's, and on-site infrastructure within the Mill Creek Courtyard development, Street and off-site improvements include curbs, gutters, landscaping, trees, and lighting, 2. Require the developer and its successors to be responsible for maintenance of the street, sidewalk, curb and gutter as well as landscaping, irrigation, and lighting on the south side of 14th Street. Require the developer to maintain the streetscape and irrigation along the west side of "S" Street south of 141h Street to California Avenue, and the south side of 14th Street as per plan and pay for landscaping maintenance, irrigation, and electricity costs, Two (2) street lights along south side of 14th Street will be privately metered and maintained. 3. Require the developer to participate in the formation of a landscape and maintenance district for the maintenance of the Millcreek Linear Park area adjacent to the canal and the Mill Creek Courtyard development, Staff recommends approval of Amendment No, 2 for the Mill Creek Courtyard development agreement under the terms and conditions outlined above. S:\Admins\RDA\RDA Admins 2010\Mi11 Creek Courtyard Amendment #2.docx 7/28/20102:53 PM BA O~ymwc.,re S ADMINISTRATIVE REPORT LIFO MEETING DATE: August 18, 2010 AGENDA SECTION: Consent Calendar ITEM: 3. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Economic Development Director DEPARTMENT HEAD DATE: August 3, 2010 CITY ATTORNEY CITY MANAGER SUBJECT: Assignment Agreement for Use of HOME Funds for the 19. h Street fSenirza Project with the Bakersfield Redevelopment Agency for use of federal HOME Investment Partnership Funds ($1,300,000) for a housing project located at 519 19th Street. (Ward 2) RECOMMENDATION: Staff recommends approval, BACKGROUND: On August 25, 2008 the Bakersfield Redevelopment Agency entered into an Owner Participation Agreement with 19th Street Senior Plaza, LLC to construct 19th Street Senior Plaza, 67 units of senior rental housing in a three-story structure, plus a two level 160 space parking structure. The Agency's participation includes $3,65 million in Redevelopment low-mod housing funds, The housing project will be constructed on developer owned property immediately east of the Mill Creek Linear Park between 18th and 19th streets, The proposed project is located in the Old Town Kern-Pioneer Redevelopment Project Area, In order to ensure that the Project will be built and affordable housing provided, $1,300,000 in HOME Funds can be used for construction costs related to the development of 66 units of affordable senior apartments plus one manager's unit. The attached sub-recipient agreement will serve as an assignment function whereby the City will allow the Agency to administer the project, ensuring that the project will be built and that affordable housing will be provided as previously described. HUD regulations require the commitment of these funds through a contractual agreement either to a developer or a sub-recipient entity over the course of two funding years. The funds must be expended within five years, Uncommitted funds are subject to reclaiming by HUD. This sub- recipient agreement fulfills the commitment requirement called for under the HUD regulations and secures the funds for the project. S:\Admins\ RDA\ RDA Admins 2010\City Agency HOME Funds 19th St Senior Plaza 2010.Docx August 3, 2010, 10:OOAM db ADMINISTRATIVE REPORT Page2 On July 21, 2010 the City Council approved this Agreement with the Agency. The Agency would assume the oversight responsibility for the use of the federal HOME funds and agree to comply with HUD mandated regulations in the administration of the project and assure affordable housing will be provided. When this item went to City Council, the project address on the Administrative Report was 501- 19m Street. However, since that time the address has been officially designated as 519-19th Street, This change does not affect the Assignment agreement approved by the City Council and submitted for Agency action. S:\Admins\RDA\RDA Admins 2010\City Agency HOME Funds 19th St Senior Plaza 2010.Docx August 3, 2010, 10:OOAM db oF, b A R ~At ADMINISTRATIVE REPORT ro MEETING DATE: August 18, 2010 AGENDA SECTION: New Business ITEM: 7. q . TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD Kn~ DATE: August 5, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Agreement between the Bakersfield Redevelopment Agency and the 1 th nd "I" Investment Group, LLC for $612,000 housing set-aside funds for the constructi n and development of a nine (9) unit rental housing project at 1612 19th Street. RECOMMENDATION: Staff recommends approval and authorization of the Executive Director or his designee to execute all necessary documents to complete the construction of the project, BACKGROUND: The 19th and "I" Investment Group, LLC proposes to construct nine (9) rental units on the second floor of the Hay Building located at 1612 19th Street in the Downtown Bakersfield Redevelopment Project Area. New housing in Downtown Bakersfield has been very limited in the past few decades and affordable housing is a much needed commodity. This project achieves the Agency's expenditure of affordable housing funds established for the purpose of increasing, improving and preserving the community's supply of affordable housing for low and moderate income person. All nine (9) rental units will be rented to moderate Income households. All units will remain affordable for 55 years. The project involves the conversion of an existing upper level office building and HVAC rooftop deck into individual urban lofts. The existing elevator will be removed and replaced with a new code compliant passenger elevator; the exterior windows and rooftop will be removed and replaced with energy efficient components; and the plumbing, mechanical and electrical systems will be replaced to meet current code requirements and new building use. The former HVAC rooftop deck will be relocated to the building roof, and a new residential exterior deck will be created that services six of the nine new lofts. The interior walls and corridor will be removed and re-built to create the new residential units, and all new fixtures, furnishings and applicable equipment will be installed within each loft. The project will also involve the structural upgrades required for the change in use, as well as a new fire suppression and life safety system. Staff has reviewed the proposal received from 19th and "I" Investment Group and is recommending approval of the Owner Participation Agreement. The agreement requires the nine units continue to operate as rental housing for 55 years. No additional funding is being requested from the Agency for the project, SAAdmins\RDA\RDA Admins 2010\1612 Lofts OPA Agree.doc 8/5/2010 4:17 PM BAK ~ Q~~msroe,r~~sC~ U ~ t7 ADMINISTRATIVE REPORT FIFO MEETING DATE: August 18, 2010 AGENDA SECTION: New Business ITEM: i , b . TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: August 3, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Amendment No. 2 to Agreement No. RA08-014 with 19th Street Senior Plaza, L , (in an amount not to exceed $3,200,000) for the construction and development f 67 units of senior rental housing and a parking garage. (Ward 2) 1) Authorize the loan of $1,300,000 in federal HOME Investment Partnership Funds for the development of eleven (11) affordable housing units at the 19th Street Senior Plaza Project located at 519 19th Street; and 2) Authorize a grant of $1,900,000 necessary to partially fund the cost of engineering, design and construction of the parking garage located at 511 19th Street, RECOMMENDATION: Staff recommends approval. BACKGROUND: On August 25, 2008, the Bakersfield Redevelopment Agency entered into Owner Participation Agreement RA08-014 with 19th Street Senior Plaza, LLC to construct 19th Street Senior Plaza, 67 units of senior rental housing in a three-story structure, with a 160 space parking structure. The Agency's participation included $3.65 million of Redevelopment low-mod housing funds. The proposed project will be constructed on developer owned property immediately east of the Mill Creek Linear Park between 18th and 19th streets. The project is located in the Old Town Kern- Pioneer Redevelopment Project Area. In recognition of the difficulties in securing bank construction loans due to unfavorable market conditions, on September 14, 2009, the Agency entered into Amendment No. 1 to Agreement No. RA08-014. The amendment authorized the Agency to reimburse the Owner for development and construction costs before the Owner secured the bank construction loan. The Owner has encountered numerous obstacles in obtaining construction financing for this project. The difficulty was a direct result of the persistent economic crisis and the banks being unwilling to loan funds for commercial and residential development without significant equity. To S:\Ndmins\RDA\RDA Admins 2010\19th St Senior Amendment #2.docx 8/3/2010 10:56 AM ADMINISTRATIVE REPORT Page 2 provide a catalyst for development, staff has developed a construction financing assistance package for the development of the senior rental complex and the parking garage. Housing and Urban Development (HUD) HOME Funds In order to ensure that the Project will be built and affordable housing provided, the amended Agreement proposes $1,300,000 in HUD HOME Funds be used for construction costs related to the development of eleven (11) affordable senior apartments, Two (2) of the units will be reserved for very-low households not exceeding 50% of Kern County area median income and nine (9) of the units will be reserved for low income households not exceeding 80% of median income, The HOME funds will be a cash loan contribution from the Agency to the Owner secured by a Deed of Trust and Note, Elsewhere on this agenda, the Agency will be asked to approve an Agreement with the City Council, allowing the Agency to assume the oversight responsibility for the use of the federal HOME funds and to comply with HUD mandated regulations in the administration of the project and assure affordable housing will be provided. That agreement was approved by the City Council on July 21, 2010. Prop 1 C Funds Infrastructure Assistance To provide assistance for development of the parking garage, an amount not to exceed $1,900,000 of Proposition 1C funds will be granted to partially fund the costs of engineering, design and construction of the minimum 132 space parking garage. The garage will reserve 50 parking spaces for tenant parking. Because the project is a senior housing development, and because it is located in the Central District, this number of spaces meets the City requirements, Additionally $150,000 from the Prop 1C funds will be used for pre-construction design. Amendment Actions Staff is requesting approval to amend Owner Participation Agreement RA08-014 for the 19th Street Senior Plaza. Significant action items to the amendment are as follows: 1. HOME Funds Note for Housing Construction: $1,300,000 construction assistance will be secured by a note and deed of trust, 2. Low-Mod Housing Disbursements: The previously approved low-mod housing funds will be paid on a pro rata basis with the Agency funds being limited to 50% of each payment. 3. Prop IC Infrastructure Assistance, Parking Garage: Authorize an Agency contribution up to $1,900,000 funds from the Prop 1 C grant for Developer to construct the parking garage. Draws submitted for construction of the parking garage will be at a ratio of 69,0% Agency funds to the Owner contribution representing 31.0%. 4. Prop 1 C Infrastructure Assistance, Pre-Construction Design: Authorize the Owner to use $150,000 of Prop 1 C funds for pre-construction design. This does not require the 69/31 % match, S:\Admins\RDA\RDA Admins 2010\19th St Senior Amendment #2.docx 8/3/201010:56 AM ADMINISTRATIVE REPORT Page 3 Conclusion If this amendment is approved, construction on the project is anticipated to begin in September 2010. Funding will not be released until construction financing has been completed and released by the Owner, S:1Admins\RDA\RDA Admins 2010\19th St Senior Amendment #2.docx 8/3/201010:56 AM „`''1't3~41 L ' ~ ccORPDR,; tfo ` J ~`cr Ff ADMINISTRATIVE REPORT rc 'aRR, '.a*~Dt~MEETING DATE: August 18, 2010 AGENDA SECTION: New Business ITEM: . C . TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAC~ DATE: August 10, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: South Mill Creek Easement Purchase: 1) Loan Reimbursement Agreement with the City of Bakersfield for $950,000 for, the purchase of a City owned 1.95 linear acre easement located to the east of P/Q Streets and south of the B,N,S,F, railroad tracks for the South Mill Creek Project, RECOMMENDATION: Staff recommends approval. BACKGROUND: In March of 2007, the Bakersfield Redevelopment Agency sold to the City of Bakersfield a 1.95 acre linear strip of land located east of P/Q streets and south of the B.N.S.F. railroad tracks. This linear strip of land was purchased by the City in order to create an easement for right-of-way for the future Centennial Freeway. Currently, there are four build alternatives being studied for the Centennial Freeway by the Thomas Roads Improvement Program (TRIP) with this site being Alternative "D," The City of Bakersfield has invested millions of dollars in recent public recreational facilities including the McMurtry Aquatics Center, the Ice Sports Center and the Rabobank Arena, combined by other significant private and pubic investment that includes the County Administrative offices and the Bakersfield High School campus, making Alternative "D" an extremely problematic and costly choice to the Centennial Freeway. For these reasons the City of Bakersfield intends to remove the existing freeway easement reservation on the 1.95 acre linear strip, The Bakersfield Redevelopment Agency staff has determined a need to repurchase this 1.95 acre linear strip for the Chelsea Housing Project and the proposed South Mill Creek Commercial Project. Chelsea has been awarded its State of California TCAC and must begin construction of the project within 150 days, The purchase of this easement is critical to Chelsea receiving their construction financing for the project, S:\Admins\RDA\RDA Admins 2010\Agency Purchase Easement P-9,doc 8/10/2010 9:34 AM ADMINISTRATIVE REPORT Page 2 The original funds in the amount of $1,000,000 to purchase the land by the City of Bakersfield came from the Thomas Roads Improvement Program (TRIP) Transportation Development Local Match fund. The purchase price of $950,000 represents the fair market value paid by the City of Bakersfield to the Redevelopment Agency in March of 2007 and adjusted for a $50,000 payment made to the City by the Agency. The Redevelopment Agency currently does not have sufficient resources to purchase the easement and is requesting a loan from the City's Equipment fund in order to reimburse the City's Transportation Development Fund in the amount of $950,000. The actual vacation of the easement east of the canal for the Chelsea project and the loan reimbursement agreement was heard and considered by City Council at their September 11, 2010 meeting. Admins\RDA\RDA Admins 2010\Agency Purchase Easement P-Q.d0c 8/10/20109:34 AM A 1 A v ADMINISTRATIVE REPORT BAKERSFIELD REDEVELOPMENT AGENCY MEETING DATE: August 18, 2010 AGENDA SECTION: Closed Session ITEM: 61, o TO: Bakersfield Redevelopment Agency APPROVED FROM: Virginia Gennaro, General Counsel DEPARTMENT HEAD DATE: August 3, 2010 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Conference with Legal Counsel - Existing Litigation Closed session pursuant to subdivision (a) of Government Code sectio 54956.9. (One matter.) • Bakersfield Redevelopment Agency vs. Whitlock Property, LLC, et al. KCSC Case No. S-1500-CV-265174 SPC JHR:vl S:\Edcd\RDA(CDDA)\10-11 RDA Admins\ClSessAdmin08-18-10ExistLit.doc