HomeMy WebLinkAbout10/11/10 RDA AGENDA+
BAKERSFIELD REDEVELOPMENT AGENCY AGENDA
REGULAR MEETING OF OCTOBER 11, 2010
Conference Room A,
City Hall North
1600 Truxtun Avenue
4:00 p.m.
REGULAR MEETING
1. ROLL CALL
2. PUBLIC STATEMENTS
3. CONSENT CALENDAR
a. Minutes of the August 18, 2010 special meeting.
b. Approval of department payments from August b, 2010 to October 1,
2010 in the amount of $4,916,180.85.
c. Seventy (70) units of multifamily affordable housing at 1401 "S" Street,
1) Amendment No. 3 to Agreement No. RA08-015 between the Bakersfield
Redevelopment Agency and CIC South Mill Creek, L.P. for the project,
2) Agreement with U.S. Bank National Association and CIC South Mill Creek,
L.P. for the project.
d. Agreement with Wallace and Smith General Contractor (in the amount of
$2,741,552) for the construction of the South Mill Creek streets, utilities, sidewalks
and landscaping located in the Southeast Redevelopment Project Area.
Staff recommends approval of Consent Calendar items 3. a, thru 3. d.
4. PUBLIC HEARINGS
5. REPORTS
a. Update status of Baker Street Mixed Use Project,
b. Update status of the Mill Creek Project.
c. Redevelopment Update,
d. Bakersfield Redevelopment Agency Hiring Practices on Redevelopment
Projects with Consideration of Various Funding Sources.
6. DEFERRED BUSINESS
7. NEW BUSINESS
8. AGENCY STATEMENTS
9. CLOSED SESSIONS
10. WORKSHOPS
11. ADJOURNMENT
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Alan Tan y
Executive Dln
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ADMINISTRATIVE REPORT
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MEETING DATE: October 11, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3.a.
TO:
FROM:
DATE:
SUBJECT:
Bakersfield Redevelopment Agency
Roberta Gafford, Secretary
September 30, 2010
Minutes of the August 18, 2010 special meeting.
APPROVED
DEPARTMENT HEAD
GENERAL COUNSEL
EXECUTIVE DIRECTO
RECOMMENDATION:
Staff recommends approval of the minutes.
BACKGROUND:
MEETING DATE: October 11, 2010 AGfNDA SECTION: Consent Calendar
iTEnn: . b .
TO: Bakersfield RDA
FROM: Nelson K. Smith, Finonce Officer
DATE: October 4, 2010
APPROVED
DEPARTMENT HEAD
GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Approval of department payments from August 6, 2010 to October 1, 2010
in the amount of $4,916,180.85.
RECOMMENDATION: Staff recommends opproval of payments totaling $4,916,180.85.
BACKGROUND:
Individual payments exceeding $3,500 in the above total are listed below.
Elite Landsca in Incor orated
116,781.72
Mill Creek canal refurbishment er a rmt #09-031
Con re ation B'Nai Jacob
5.000•40
A raisal for 600 17th Street er a rmt # 10-0 12
Creekview Villas LLC
1,062,554.06
Disbursement re uests er o rmt #RA09-001
Housin Authorit of the Coun of Kern
97,500.01
Bakers Street Villa e Phase I drow re uest er a rmt #RA10-003
Me er Civil En ineerin
10,592.40
Pre aration of lans & s ecs for Mill Creek Ph 4 & 5 er a rmt #08-044
Para on Partners LTD
10,440.69
Relocation assistance er a rmt #ED10-007
Creekview Villas LLC
28.000•00
Disbursement re uests er a rmt #RA09-001
Aleshire & W nder LLP
5,678.58
Professionol services er a mnt #09-009
Graharn Vaa e LLP
1,425,275.63
Settlement with Rick's Rec clin for So. Mill Creek
Jim Alfter Cement Controctor
13,534.27
Curb & Gutter at E. California and Robinson Street er a rmt #07-196
McCain Traffic Su I
6,829.99
Electronic traffic su I arts
Me er Civil En ineerin
4,356.00
Pre aration of lans & s ecs for Mill Creek Ph 4& 5 er a rmt #08-044
BK Transimissions
20-000•00
Relocation assistance for BK Transmissions
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ADMINISTRATIVE REPORT
U S Bank Trust NA
3,800.00
Tax allocation bonds 2009A & B, HUD Sec. 108 Loan admin fees
Pacific Gas & Electric CFM/PPC
23,109.52
Relocation/Rearran ement costs for So. Mill Creek
California Eminent Domain Law Grou
23,965.65
Le al services er a rmt #BRDA 08-018
Lunar Cow
15,000.00
Desi n of Visitors Guide er a rmnt #ED09-025CV6
U S Bank Trust NA
653,675.00
Refundin COP-Series A & B interest Due
California Housin Finance A enc
1,373,579.15
CHFA Hel Loan #1984 re ardin Cit alk Pro'ect
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ADMINISTRATIVE REPORT
MEETING DATE: October 11, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3, e.
TO:
FROM:
DATE:
SUBJECT
Bakersfield Redevelopment Agency
Donna L. Kunz, Deputy Executive Director
October 4, 2010
Seventy (70) units of mulfiifamily affordable housing at 1401 "S" Street,
1) Amendment No. 3 to Agreement No, RA08-015 between the Bakersfield
Redevetopment Agency and CIC South Mill Creek, L.P, for the project.
2) Agreement with U.S. Bank National Association and CIC South Mill Creek, L.P.
for the project,
APPROVED
DEPARTMENT HEAD ~
GENERAL COUNSEL
EXECUTIVE DIRECTOR
RECOMMENDATION:
Staff recommends approval,
BACKGROUND:
On September 23, 2008 Chelsea Investment Corporation and the Bakersfield Redevelopment
Agency entered into a Disposition and Development Agreement (DDA) for the developer to
acquire the site and develop seventy (70) units of multifamily affordable housing.
As part of the process of securing financing for the project, Chelsea Investment Corporation
submitted a Tax Credit Application in March 2010 for 9% federal Tax Credit Financing. In order
to obtain the Tax Credits, Chelsea Investment Corporation created CIC South Mill Creek, L.P.,
a California Limited Partnership to receive Tax Credits for the Housing Project, and Pacific
Southwest Community Development Corporation, a California nonprofit public benefit
corporation, to act as the Managing General Partner,
As a result of this partnership and addition of the Tax Credit financing, changes are required to
the Disposition and Development Agreement by way of the proposed amendment. Significant
changes listed in the Amendment suggested by Agency staff are as follows:
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ADMINISTRATIVE REPORT
1) Amendment Action Items
Page 2
Affordability mix. The developer adjusted the affordability mix to serve households with
incomes ranging from 30% to 60% of the Area Median Income (AMI). Due to the new 9%
Tax Credit Financing, a revision to section C in the Regulatory Agreement and several
sections within the original DDA are required. The Regulatory Agreement will call for the
following income and unit mix: Seven (7) of the Housing Units to 30% AMI Households,
seven (7) of the Housing Units to 40% AMI Households, seven (7) of the Housing Units to 459'0
AMI Households, twenty-eight (28) of the Housing Units to 50% of AMI, twenty (20) of the
Housing Units to 60% of AMI, and one (1) unrestricted manager unit,
Regulatory Agreement. Several changes were made to the Regulatory Agreement by way
of this amendment, most notably the affordability mix. Changes to the affordability mix are
consistent with the changes to the affordability mix throughout the original DDA.
New language was also added to section 5"Affordable Rent" in the Regulatory
Agreement. The language was inserted to clarify the affordable rent definition and to use
more comprehensible language. Declaration of Restrictions was removed and
incorporated into the comprehensive Regulatory Agreement,
Administrative modifications. Additional administrative modifications qre proposed in order
to finalize the DDA. Some of the modifications included are; The combination of the Low-
Mod and Home Loan Deeds of Trust; the combination of the Low-Mod and HOME Loan
Promissory Notes; The Declaration of Restrictions was removed due to the fact that the
language and terms are covered under the Regulatory Agreement; The number of HOME
assisted Units has been increased to nineteen Lower Income Housing Units; the option to
acquire the Site upon Default will be deleted from the agreement as well as any reference
to the option agreement,
U. S. Bank modifications. Chelsea has brought to our attention that U.S Bank an Equity
investor would also like to address several sections in the DDA to ensure their protection as
an Equity Investor and to ensure that the project continue forward in case of default by the
Developer, The main areas addressed within the proposed amendment are as follows;
1. U,S. Bancorp with consent of the Agency shall have the right to remove and replace
the Property Manager with another assuming that the choice is acceptable to both
the Agency and the Developer,
2, Any notice of default given to developer shall also be given to U.S. Bank and that U,S.
Bank shall be given an opportunity to cause the cure of such default, and the Agency
agrees to accept a cure by U,S. Bank as if such cure were made by Developer.
3, Notices shall be revised to include the contact information for the following entities: U,S,
Bancorp Community Development Corporation, Kutak Rock LLP, and CIC South Mill
Creek, L.P.
4, The withdrawal, removal, transfer, or replacement of Developer's general partner is
permitted provided that the Agency has approved of the replacement.
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2) TRI-Party Agreement
Page 3
U.S. Bank National Association has requested that the Agency enter into the Tri-Party
Agreement with U.S. Bank National Association and South Mili Creek, L,P., The Tri-Party
Agreement is required by U.S. Bank to ensure 1) that the developer is not in any way in
default 2) that the Agency is not aware of any reasons why the conditions to funding the
HOME loan Documents would not be satisfied, and 3) to restate that all parties involved
understand that the Agency's HOME Loan to developer is subordinate to U.S Bank's loan
and that proper notice is given if there is potential for a default,
Escrow is scheduled to close between the 13'h and 15m of October, 2010 and Construction
is scheduled to begin November 1• 2010, Construction is scheduled to begin November 1,
2010 with completion estimated by November 2011, Staff recommends approval of the
aforementioned documents,
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~ ADMINISTRATIVE REPORT
MEETING DATE: October 11, 2010 AGENDA SECTION: Consent Calendar
ITEM: 3 . d.
TO: Bakersfield Redevelopment Agency
FROM: Donna L. Kunz, Deputy Executive Director
DATE: October 5, 2010
APPR VED
DEPARTMENT HEA
GENERAL COUNSEI
EXECUTIVE DIRECTOR
SUBJECT: Agreement with Wallace and Smith General Contractor (in the amount of
$2,741,552) for the construction of the South Mill Creek streets, utilities, sidewalks and
landscaping located in the Southeast Redevelopment Project Area.
RECOMMENDATION:
Staff recommends approval of the Agreement.
BACKGROUND:
In June 2009, staff received $10.8 million dollars of Sfate of California Prop. 1 C grant funds to
provide infrastructure to support the five affordable housing projects under development in the
Mill Creek Area. One of the infrastructure projects approved for this grant assistance consisted of
improving the streets, sidewalks, lighting and landscaping in the area bounded by California
Ave., the canal, 14th Street and S Streets in the planned South Mill Creek Village. As recipients of
Prop. 1 C grant funds it is the Agency and staff's responsibility to oversee the street infrastructure
contract to ensure complionce with the grant program requirements. The project will be
constructed on both public and private streets and private property, which makes it unique from
a typical public works capital improvement street project. When constructed the street
infrastructure project will provide significant improvements that serve all three of the new
residential projects in the South Mill Creek Village and will compliment the recently constructed
Mill Creek Linear Pork improvements.
On October 12, 2009, the Bakersfield Redevelopment Agency approved Amendment No. 1 to
Agreement RA09-001 with Creekview Villas, LLC to provide funding for engineering and survey
services necessary for street design and streetscape improvements required for the South Mill
Creek residential village consistent with the existing Mill Creek architectural theme. Additionally,
the design and engineering includes the north side of California Avenue between "R" and "S"
Streets creating two new entry points of California Avenue into the South Mill Creek residential
village. All three residentiol projects located in the village; Creekview Villas, Millcreek Courtyard,
and South Mill Creek Affordable Apartments will benefit from the enhanced streetscape, street
lights, landscaping and irrigation improvements.
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ADMINISTRATIVE REPORT
Landscape and street design, engineering and utility construction and relocation was previously
secured by the development group; Creekview Villas LLC, whose owner is responsible for two of
the three new residential developments that will be constructed in the South Mill Creek Village.
The developer's general contractor; Wallace and Smith provided the construction work. Funding
for this work was provided by the Redevelopment Agency to the developer. This was a
component of the infrastructure improvements included in the Prop. 1 C grant application.
After an extensive generol contractor intenriew, Wallace and Smith General Contractors was
selected to competitively bid out all sub contracts for the remaining street and landscape
improvements planned for the South Mill Creek residential village. Wallace and Smith secured
competitive subcontractor bids prices for all of the required work. Over the past few months,
pricing and value engineering was undertaken by staff, the project engineers and with input
from the residential developers to secure the best possible bid for a final construction price of
$2,741,552. Of these costs, $1.9 million will be paid from Prop. 1 C grant funds. Funds for the
project have been resenred in the current Capital Improvement Budget in the Southeast
Redevelopment Project Area.
The project is subject to State of California prevailing wage rules and additional special
conditions outlined in the Prop. 1 C grant contract. Construction management oversight services
will be performed by staff from the City's Public Works department. Staff will also require
Wallace and Smith General Contractors to conduct , an on-site job fair to encourage the
subcontractors with employment openings to take applications from interested, qualified
applicants that wish to seek construction employment on the project. The attractive project
design will serve the family target population by providing much needed street infrastructure and
street improvements leading to affordable town-home and new rental units which are in great
demand in the area. In addition, the project will improve long-standing blighted parcels of land
within the Southeast Bakersfield Redevelopment Project Area, therefore, staff recommends
approval of the agreement.
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ADMINISTRATIVE REPORT
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MEETING DATE; October 11, 2010 AGENDA SECTION: Reports
ITEM: s,q,
TO; Bakersfield Redevelopment Agency
FROM: Donna L. Kunz, Deputy Executive Director
DATE; September 28, 2010
SUBJECT; Update status of Baker Street Mixed Use Project
APPROVED
DEPARTMENT HEAD
GENERAL COUNSEL~
EXECUTIVE DIRECTOR
RECOMMENDATION;
No action required,
BACKGROUND;
Staff will provide an update on the Baker Street Mixed Use Project,
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ADM I N ISTRATIVE RE PORT
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MEETING DATE: October 11, 2010 AGENDA SECTION; Reports
ITEM; 5. h.
TO: Bakersfield Redevelopment Agency
FROM: Donna L, Kunz, Deputy Executive Director
DATE: September 28, 2010
SUBJECT: Update status of the Mill Creek Project
APPROVED
DEPARTMENT HEA
GENERAL COUNSEL
EXECUTIVE DIRECTOR
RECOMMENDATION;
No action required.
BACKGROUND;
Staff wiil provide an update on the Millcreek Project.
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ADMINISTRATIVE REPORT
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MEETING DATE: October 11, 2010 AGENDA SECTION: Reports
ITEM; 15.C.
TO: Bakersfield Redevelopment Agency
FROM; Donna L, Kunz, Deputy Executive Director
DATE: October 6, 2010
SUBJECT: Redevelopment update
APPROVED
DEPARTMENT HEAD
GENERAL COUNSEL 041-
EXECUTIVE DIRECTOR
RECOMMENDATION;
No action required.
BACKGROUND;
In response to recent negative articles printed in the Los Angeles Times news regarding abuses of
redevelopment found in a few California Redevelopment Agencies, staff will present a report
detailing the Bakersfield Redevelopment Agency activities,
The Bakersfield Redevelopment Agency is a leader in affordable housing unit production and has
not been subject to any compliance or audit concerns, Redevelopment has been a positive
force in jump starting development and creating affordable housing in urban Bakersfieid.
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ADMINISTRATIVE REPORT
'F° ` BAKERSFIELD REDEVELOPMENT AGENCY
MEETING DATE: October 11, 2010 AGENDA SECTION: Reports
ITEM: 5.d.
TO: Bakersfleld Redevelopment Agency APPROVED
FROM: Joshua H. Rudnick, Deputy Agency Counsel DEPARTMENT HEAD /4L _
DATE: September 24, 2010 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Bakersfieid Redevelopment Agency Hiring Practices on Redevelopment Pro)ects
with Consideration of Various Funding Sources
RECOMMENDATION:
No action required.
BACKGROUND:
This report has been prepared by the Cfty Attorney's Office in conJunction with Economic &
Commun(ty Development staff as Q response to Marvin Dean's recent correspondence dated
August 19, 2010 regarding hiring practices related to redevelopment proJects and his request
that the Bakersfield Redevelopment Agency ("Agency") Include a clause in all future
development agreements reguiring developers/contractors to hire 109'0 of sub-contracted labor
from the Southeast and Old Town Redevelopment Project Areas.
The City of Bakersfield and Agency are in compliance with all Federal and State regulations
regarding hiring goals for Minority Business Enterprises (MBE), Women Owned Business Enterprfses
(WBE) and Sectlon 3 ProJects. Currently all of the Agency development agreements contain the
required language for the federal required MBE, WBE and Sect(on 3 Project hiring goals. The City
of Bakersfield is the recipient of these federal funds and the Economic and Community
Development Department has on flle the current HUD approved Section 3 Plan that is required
for the City of Bdkersfield,
In response to Mr. Dean's request that all Agency development agreements include a 10% (ten
per cent) minimum construction workforce contract hiring goal from the Southeast and Old
i own Kern Project Hreas, Tnis requiremenT wouia pe in ciirecT conriicT wim me rederai iviBt, wBt
and Sectlon 3 Project regulatlons that requlre hlring of low-income persons throughout the City
without Ilmiting the hlring of residents and buslnesses wlthin the project area. In addltfon, the
proposed contract language would impose an undue burden on contractors and staff for
monitoring and compliance.
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However, the Agency is attempting to achfeve the proposed hiring goals through job fairs,
outreach, and good faith efforts by the contractor and sub-contractors to hire low-income
residents and businesses from the Southeast and Old Town Kern Redevelopment Project Areas.
For example, a recent job fair was conducted by the general contractor Wallace and Smith at
the Baker Street pro)ect site located in Old Town Kern in which 18 subcontractors representing
various trades participated. As a result, 315 applications were accepted and are currently under
review. In addition, Mr. Dean representing his Kern Minority Contractors Association had a booth
and participated in this event.
Conclusion
As the City of Bakersfieid and Agency are in compliance with the Federal and State regulations
regarding hiring practices on redevelopment proJects, staff does not recommend the proposed
changes to its development agreements. Instead, the Agency should continue to encourage
Job fairs, outreach and other good faith efforts by contractors and sub-contractors in order to
achieve the Federal and State redevelopment project hiring goals.
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