HomeMy WebLinkAbout08/18/10 RDA AGENDA
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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
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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
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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
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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
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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.
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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
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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.
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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
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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.
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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.
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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.
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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,
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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
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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,
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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,
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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,
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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.
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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
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