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BAKERSFIELD REDEVELOPMENT AGENCY AGENDA
► REGULAR MEETING OF MAY 9, 2011
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. Approval of Minutes of the February 14, 2011 Regular Meeting, the February
25, 2011 and March 7, 2011 Special Meetings,
b. Approval of department payments from February 1, 2011 to April 28, 2011 in
the amount of $5,364,443.85.
C. Resolution finding that Fiscal Year 2011-12 Planning and Administrative
Expenses from the Agency's Low and Moderate Income Housing Funds are
necessary for the Production, Improvement or Preservation of Low and
Moderate Income Housing in the City of Bakersfield,
Staff recommends approval of Consent Calendar Item 3.a. thru 3.c.
4. PUBLIC HEARINGS
5. REPORTS
a. Update status of Baker Street Mixed Use Project
b. Update status of Mill Creek Area Projects
C. Legislative update regarding the status of Redevelopment in California
including various reforms,
6. DEFERRED BUSINESS
7. NEW BUSINESS
a. Agreement with outside counsel, Aleshire & Wynder, LLP for legal services in
the matter of Redevelopment and/or other miscellaneous matters as directed
by the City Attorney in the amount not to exceed $60,000.
Staff Recommends approval of the agreement.
b. Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal
Year 2011-12.
Staff recommends approval and transmittal to City Council.
8. AGENCY STATEMENTS
CLOSED SESSIONS
10. WORKSHOPS
11. ADJOURNMENT
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Executive Director
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ADMINISTRATIVE REPORT
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MEETING DATE: May 9, 2011 AGENDA SECTION: Consent Calendar
ITEM: 3.a.
TO:
FROM:
DATE:
SUBJECT
Bakersfield Redevelopment Agency
Roberta Gafford, Secretary
April 28, 2011
Minutes of the February 14, 2011 regular meeting, Minutes of e ebruary 25,
2011 and March 7, 2011 Special Meetings.
APPROVED
DEPARTMENT HEAD
JT-
GENERAL COUNSEL
EXECUTIVE DIRECTOR
RECOMMENDATION:
Staff recommends approval of the minutes.
BACKGROUND:
MEETING DATE: May 9, 2011 AGENDA SECTION: Consent Calendar
ITEM:
TO: Bakersfield RDA APPROVED
FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD
DATE: April 28, 2011 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Approval of department payments from February 1, 2011 to April 28, 2f 1
in the amount of $5,364,443.85.
RECOMMENDATION: Staff recommends approval of payments totaling $5,364,443.85
BACKGROUND:
Individual payments exceeding $3,500 in the above total are listed below.
California Eminent Domain Law Group
3,856.80
Professional services eragreement BRDA 10-019
Kosmont & Associates Inc
4,050.00
Professional services eragreement BRDA 10-022
Me er Civil En ineerin , Inc
4,158.00
Prepare plans, specs and estimate for Mill Creek era rmt 08-044
Creekview Villas LLC
228,882.36
Disbursement requests era rmt #RA09-001
Housing Authority of the County of Kern
5,042.10
Disbursement requests era rmt #RAI0-003
Wallace & Smith Contractors
29,735.77
Disbursement re uests era rmt #RA10-011
California Water Service Co.
394,041.00
Installation of water mainline extension for 18th St era rmnt RA1 1-001
State of California Treasurer's Office
195,000.00
Deposit of probable compensation for eminent domain litigation
California Eminent Domain Law Group
6,758.40
Professional services eragreement BRDA 10-019
Housing Authority of the Count of Kern
16,422.39
Disbursement requests era rmt #RA10-003
AMCAL Santa Fe Fund LP
134,691.00
Disbursement request era rmt #08-009(l)
Creekview Villas LLC
59,069.96
Disbursement requests era rmt #RA09-001
Wallace & Smith Contractors
78,998.70
Disbursement requests era rmt # RA 10-011
SAKim MADMIN-BRDMADMIN-BRDA-AP-20I MADMIN-BRDA-AP-5-09-1 Ldoc 1
ADMINISTRATIVE REPORT
Me er Civil En ineerin , Inc
Prepare plans, specs and estimate for Mill Creek era rmt 08-044
5,380.29
Entertainment Li htin Service
Lighting per bid #10-11-53 specifications
58,817.75-
Key Code Media
Monitorin equipment for Rabobank Arena
18,917.04
Creekview Villas LLC
Disbursement requests era rmt #RA09-001
22,642.00
Wallace & Smith Contractors
235,350.55
Disbursement requests era rmt #RA10-0 11
HPS Mechanical Inc.
3,583.55
Construction cost for Mill Creek Phase 5B era rmt # 10-013
Michael Berger & Associates
4,000.00
Appraisal for 600 & 602 18th Street
Creekview Villas LLC
400,769.57
Disbursement requests era rmt #RA09-001
University of Laverne
6,000.00
Real property a ment era rmts #07-081 & RA07-001
California Eminent Domain Law Group
8,044.39
Professional services eragreement BRDA 10-019
Housing Authority of the Count of Kern
918,440.67
Disbursement requests era rmt #RA10-003
U.S. Bank
2,498,675.00
Refunding COP - Series A & B interest and rinci al due
SAKim GWDMIN-BRDAWDMIN-BRDA-AP-201 1\ADMIN-BRDA-AP-5-09-1 Ldoc
ADMINISTRATIVE REPORT
MEETING DATE: May 9, 2011 TAGENDA SECTION: Consent Calendar
ITEM: 3. C.
TO; Bakersfield Redevelopment Agency
FROM: Donna L, Kunz, Deputy Executive Director
DATE: April 27, 2011
ROVED
DEPARTMENT HEA
GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT; Resolution finding that Fiscal Year 2011-12 Planning and Administrative Expenses
from the Agency's Low and Moderate Income Housing Funds are necessary for the
Production, Improvement or Preservation of Low and Moderate Income Housing in
the City of Bakersfield,
RECOMMENDATION:
Staff recommends adoption of the resolution,
BACKGROUND:
In accordance with State Health and Safety Code Section 33334.3 (d), redevelopment agencies
may use a portion of monies from the Low and Moderate Income Housing Funds to provide
planning and general administrative costs. The Agency must determine annually that the
planning and administrative expenses are necessary for the production, improvement, or
preservation of low-and moderate-income housing.
For Fiscal Year 2011-12, the Agency has budgeted $475,523 in the Housing Funds for planning
and administrative services for housing related projects. These appropriations are supported by
the high level of affordable housing development activity currently underway.
Attached is a resolution finding that planning and administrative costs are necessary for the
production, improvement, or preservation of low-and moderate-income housing for fiscal year
2011-12,
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MEETING DATE; May 9, 201 1 AGENDA SECTION: Reports
ITEM: 5.q.
TO: Bakersfield Redevelopment Agency AP O2VEEDD
FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEA
DATE: April 25, 2011 GENERAL COUNSEL
EXECUTIVE DIRECTOR
SUBJECT: Update status of Baker Street Mixed Use Project
RECOMMENDATION:
No action required.
BACKGROUND:
Staff will provide an update on the Baker Street Mixed Use Project.
SAAdmins\RDA\RDA Admins 2011 \Baker Street Update 050911.Docx
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MEETING DATE: May 9, 2011 AGENDA SECTION: Reports
ITEM: 5.6.
TO: Bakersfield Redevelopment Agency
FROM: Donna L, Kunz, Deputy Executive Director
DATE: April 25, 2011
SUBJECT: Update status of Mill Creek Area Projects
APPROVE
DEPARTMENT HEAD
GENERAL COUNSEL
EXECUTIVE DIRECTOR
RECOMMENDATION:
No action required,
BACKGROUND:
Staff will provide an update on Millcreek Area Projects.
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ADMINISTRATIVE REPORT
MEETING DATE: May 9, 2011 AGENDA SECTION: Reports
ITEM: 5. c.
TO:
FROM:
DATE:
SUBJECT:
Bakersfield Redevelopment Agency
Donna L. Kunz, Deputy Executive Director
May 3, 2011
Legislative update regarding the status of Redevelopment in California including
various reforms.
APPROVED
DEPARTMENT HEAD
GENERAL COUNSEL
EXECUTIVE DIRECTOR
RECOMMENDATION:
No action required.
BACKGROUND:
Staff will provide a report on Legislative information regarding the current status of Governor
Brown's proposal to eliminate Redevelopment in the State of California in addition to various
reforms being considered by the legislature,
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ADMINISTRATIVE REPORT
MEETING DATE: May 9, 201 1 I AGENDA SECTION: New Business
ITEM: -1. A .
TO: Bakersfield Redevelopment Agency
FROM: Donna L. Kunz, Economic Development Director
DATE: April 28, 2011
SUBJECT: Agreement with outside counsel, Aleshire & Wynder,
matter of Redevelopment and /or other miscellaneous
City Attorney in the amount not to exceed $60,000.
APPROVED
DEPARTMENT HEA
GENERAL COUNCIL
EXECUTIVE DIRECTOR
LLP for legal services in the
matters as directed by the
RECOMMENDATION:
Staff recommends approval.
BACKGROUND:
Staff is requesting approval of an agreement for legal services with David J. Aleshire of Aleshire &
Wynder LLP. Mr. Aleshire specializes in redevelopment law matters and has been providing legal
counsel to the Redevelopment Agency over the past few years as directed by the City Attorney.
At this time the City Attorney's office requests that a new contract be executed with the Agency
for $60,000 in compensation, so that outside representation may continue. The Economic and
Community Development Department has sufficient funds within its operating budget to
accommodate this request for additional compensation.
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ADMINISTRATIVE REPORT
MEETING DATE: May 9, 201 1 AGENDA SECTION: New Business
ITEM: 7 . b .
TO:
FROM:
DATE:
SUBJECT
Bakersfield Redevelopment Agency
Donna L. Kunz, Economic Development Director
April 28, 2011
APP D
DEPARTMENT
GENERAL COUNCIL
EXECUTIVE DIRECTOR
Proposed Budget for the Bakersfield Redevelopment Agency (RDA) - Fiscal Year
2011-12
RECOMMENDATION:
Staff recommends the Agency authorize the transmittal of the Fiscal Year 201 1-12 RDA budget to
the City Council for approval.
BACKGROUND:
In January of this year, the Governor of the
redevelopment as a method to assist with the
pending in legislation, and adjustments to
pending the outcome of the bill.
State of California
reduction the State
the redevelopment
proposed a bill to eliminate
budget deficit. This bill is still
budget may be necessary
To minimize the financial damages to the Bakersfield Redevelopment Agency and to ensure the
completion of planned redevelopment projects, staff appropriated fund balances and
encumbered funds for planned projects during the current fiscal year where funding previously
had not been committed. Cooperation agreements were prepared with the Agency agreeing
to reimburse the City for expenditures on the South Mill Creek Infrastructure, Mill Creek Sister City
Gardens & Mill House projects. In addition, the Agency also transferred Agency owned
properties to the City for future development. These actions are reflected in the proposed
budget, as any uncommitted funds and available fund balances were committed to viable
planned projects, leaving only the revenues from Fiscal Year 201 1-12 available for administration
and debt service.
Redevelooment Agency Proposed Budget - Fiscal Year 2011-12
Attached is the proposed Bakersfield Redevelopment Agency Budget for Fiscal Year 2011-12,
which has been prepared in accordance with the Agency's goals and objectives. There
continues to be significant redevelopment activity in each of the three project areas, with
several projects in the implementation or construction phase. Currently, there are no significant
changes to the redevelopment budget in Fiscal Year 2011-12 compared to the current fiscal
year.
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ADMINISTRATIVE REPORT Page 2
The Redevelopment Agency budget is comprised of nine separate funds. Each of our three
redevelopment project areas has three distinct funds; an Operating fund, a Housing Set Aside
fund and a Debt Service fund. California Redevelopment Law requires redevelopment project
area operating funds be kept separate from those of other areas and that Tax Increment
Revenues are only used within the area of which it was generated. The Bakersfield
Redevelopment Agency may, however, use its Housing Set Aside monies anywhere deemed
necessary within the City, provided an "of benefit" finding is made by the governing body.
In addition to the Capital and Operating Budgets, the Debt Service Budgets include
appropriations for contractual long term debt, including the payment of principal and interest on
Redevelopment Tax Allocation Bonds, Certificates of Participation, Notes, Interagency loans,
Section 108 loans for Baker Street and Mill Creek South, the I-Bank loan for Mill Creek Linear Park,
Residential Development Loan Program Site Acquisition for Creekview Villas Townhomes and
2009 RDA Bonds Series A & B.
Downtown Redevelopment Project Area
The Downtown Project Area has budgeted $50,000 for legal, consulting and professional services;
$178,135 in salaries and benefits; and $18,812 in administrative expenditures which benefit the
ongoing Downtown Redevelopment Projects.
Old Town Kern Redevelopment Project Area
The Old Town Kern Project Area has budgeted $234,736 for salaries and benefits, and $26,806 for
administrative expenditures which benefit the ongoing Old Town Kern Redevelopment Projects.
Southeast Redevelopment
The Southeast Project Area has budgeted $25,000 for outside legal counsel and relocation
services for Southeast Redevelopment projects; $272,551 for salaries and benefits, and $31,833 for
administrative expenditures which benefit the ongoing Southeast Redevelopment Projects.
The followina is an update of current redevelopment projects underway:
South Mill Creek Commercial
A retail consultant has been retained to assist in marketing the commercial properties in South
Mill Creek to potential users. The properties are directly east of "P" Street across from Maya
Cinemas, adjacent to Mill Creek Linear Park between California Avenue and the railroad tracks.
This location is ideal for retail and restaurant users, especially considering that the new housing
developments are under construction directly across from the properties on the east side of Mill
Creek. Staff intends to prepare a new "Request for Proposal" in the near future.
Creekview & Courtyard
In February and March 2009, the City Council and Bakersfield Redevelopment Agency approved
two Disposition and Development Agreements with Southwest Consulting for the construction of
36 upscale townhomes and 57 mid-rise apartments. Construction on the first fourteen (14) units of
the Creekview Villas townhomes began in May 2010 and the Creekview Villas "hard hat"
ceremony was held on July 15, 2010. Construction completion for Phase I of the Creekview Villas
is estimated to be June 2011. Staff also requested the Millcreek Courtyard project be deferred up
to 36 months to allow additional time for repayment of the cash flow loan from the sales of the
Creekview Villas townhomes.
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Citvplace Apartments
In September 2008, the City Council and Bakersfield Redevelopment Agency approved a
Disposition and Development Agreement (DDA) with Chelsea Investment Corporation for the
development of 70 mid-rise garden style affordable rental apartments. In March 2010, the
Agency approved an amendment for the use of $3 million in HOME Investment Partnership Funds
as construction assistance to construct the apartments. In June 2010, Chelsea Investment
Corporation was successful in applying for and securing nine percent state tax credits. In August
2010, the Agency approved an amendment that requires Chelsea and its successors to be
responsible for maintaining street improvements, electric costs, and landscape maintenance on
a portion of 14th street, a portion of "S" street, and a public street within the development. The
General Contractor held an on-site job fair on March 29, 2011 to encourage subcontractors with
employment openings to take applications from interested, qualified local applicants seeking
construction employment. Construction is underway with an estimated completion date of
November 30, 2011.
1612 lofts
In August 2010, the City Council and Bakersfield Redevelopment Agency approved the Owner
Participation Agreement with the 19th and I Investment Group, LLC for the development of nine
(9) rental units on the second floor of the Hay Building located at 1612 191h Street in the
Downtown Bakersfield Redevelopment Project Area. All rental units will remain affordable for a
term of 55 years. Building plans are currently in review, pending plan changes for new building
codes, construction will begin as soon as the plans are approved.
19th Street Senior Housing & Parkina Structure
This project is planned to have 66 units of affordable senior rental housing, one manager's unit,
and a minimum 132 space parking garage. This project will be immediately east of the 19th
Street Mixed Use Project. The developer has selected a general contractor for the housing
component of this project, and plans for the parking garage are being reviewed by City staff.
Selection of a contractor for the parking structure is pending. The developer is working to secure
financing and the project should be underway this year.
19th Street Mixed Use Project
Located on 1 /3 acre directly adjacent to the east of Mill Creek Linear Park between 18th and
19th streets, this project will include approximately 22,500 square feet of leasable retail, office,
and affordable residential space in a three story building. It is anticipated that the total project
cost will be $5.725 million.
State of California Infill Infrastructure Grant (Prop 1 C)
South Mill Creek Village Street Improvements
In June 2009, staff received $10.8 million dollars of State of California Prop. 1 C grant funds to
provide infrastructure to support five affordable housing projects under development in the Mill
Creek Area. The first infrastructure project funded for $2,121,000 in grant assistance consists of
improving the streets, sidewalks, lighting and landscaping in an area bounded by California
Avenue, the canal, 14th and S Streets. The project will be constructed on both public and
private streets, which makes it unique from other public works capital improvement streets
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ADMINISTRATIVE REPORT Page 4
projects. This infrastructure project will provide significant improvements serving all three of the
new residential projects in the South Mill Creek Village and compliment the Mill Creek Linear Park
improvements.
On October 11, 2010, the Bakersfield Redevelopment Agency approved the construction
agreement. Shortly thereafter, the General Contractor held an on-site job fair to encourage
qualified local applicants to apply for employment opportunities with the subcontractors working
on the project. Construction on the project began in November 2010, however due to heavy
Winter rains; PG&E experienced several weather related emergencies which took priority over
new construction projects. City staff continues to coordinate with the General Contractor, PG&E,
California Water, Pinnacle Engineering and the impacted businesses in the planning and
construction of the street infrastructure and landscaping improvements. Based on the latest
revised construction schedule the final project completion date is estimated to be in late April
2011.
"Q" Street Streetscace
Plans to improve the appearance of "Q" Street are moving forward. The City of Bakersfield has
received funds from State of California Proposition 1 C Bonds to make improvements on "Q"
Street between Truxtun Avenue and 241h Street. These improvements will include landscaped
median islands, new decorative lights and trees in the sidewalk, new sidewalks, alley cross gutters
and handicapped ramps at all corners. Enhanced intersections at Truxtun, 18th, 19th and 21 st
streets will include new decorative traffic signals and decorative intersections. In addition, there
will be some improvements on the cross streets which will blend the new "Q" Street design into
the existing streets. The project is currently out to bid, and work is expected to begin by early
Summer. On March 9, 2011, the City Council approved forming a maintenance district for "Q"
Street. This action was taken following a vote of affected property owners. The results of that
balloting supported the formation of a maintenance district.
Sister City Gardens of Mill Creek
This project will involve two different site locations adjacent to Mill Creek Linear Park at 18th
Street. The Sister City Gardens will create individual gardens that represent each of Bakersfield's
Sister Cities, providing an additional amenity along Mill Creek. The project will use a mix of funds
including redevelopment bonds, tax increment and Proposition 1 C. The project is currently out to
bid and the anticipated completion is expected by the end of 2011.
The Parkview Cottages - Single Family Housing Project (OTK-P)
The Parkview Cottages consists of 74 single-family housing units, ranging from 1,280 to 1,820
square feet. Each unit consists of two stories and a two/three car garage. In June, 2010, staff
negotiated an amendment to the disposition agreement requiring the developer/builder to
construct two speculative homes at a time and continue to build out the development as the
houses sell. With the modified schedule the project should achieve sell out in four years or less.
Under the revision, construction of two homes has been completed and marketing of the units
continue. Two additional units are under construction. Down payment assistance for this phase
of the project will be provided in an amount not to exceed $35,000. To date a total of 46 units
have been constructed and sold.
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Baker Street - Old Town Kern Mixed Use Project (OTK-P)
Construction has resumed on Phase I of Baker Street Village. This long-delayed project is now
well underway and construction crews are working toward an expected completion in the Fall of
2011. Phase I of Baker Street Village will feature 24 townhomes and 13 lofts at the southeast
corner of Baker and Lake Streets. In addition to the housing units, approximately 9,000 square
feet of commercial space will be available fronting Baker Street. The development is owned by
the Housing Authority of the County of Kern.
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