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Home My WebLink About11/14/2011 RDA AGENDA PACKETBAKERSFIELD REDEVELOPMENT AGENCY AGENDA REGULAR MEETING OF NOVEMBER 14, 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. Minutes of the August 22, 2011 special meeting. b. Approval of department payments from August 12, 2011 to November 3, 2011 in the amount of $3,318,097.39. Staff recommends approval of Consent Calendar items 3.a. and 3.b. 4. PUBLIC HEARINGS 5. REPORTS a. Update of State related and legal issues regarding Redevelopment. b. Update status of Mill Creek Area Projects. c. Update status of Baker Street Mixed Use Project 6. DEFERRED BUSINESS 7. NEW BUSINESS a. Assisgnment and Assumption of Owner Participation Agreement No. RA08-014 (19th Street Seniors). Staff recommends approval of agreement. b. Assignment and Assumption of Disposition and Development Agreement No. RA09-001 (Creekview Villas). Staff recommends approval of agreement. 8. AGENCY STATEMENTS 9. CLOSED SESSIONS 10. WORKSHOPS 11. ADJOURNMENT Resp t Ily submifite an Tandy Executive Director MEETING DATE: November 14, 2011 AGENDA SECTION: Consent Calendar ITEM: 3.a. TO: FROM: DATE: SUBJECT: Bakersfield Redevelopment Agency Roberta Gafford, Secretary November 7, 2011 Minutes of the August 22, 2011 special meeting. APPROVED DEPARTMENT HEAD GENERAL COUNSE EXECUTIVE DI RECOMMENDATION: Staff recommends approval of the minutes. BACKGROUND: ADMINISTRATIVE REPORT MEETING DATE: November 14, 2011 AGENDA SECTION: Consent Calendar ITEM: 3. b. TO: Bakersfield RDA APP= FROM: Nelson K. Smith, Finance Officer DEPARTMENT HEAD DATE: November 4, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Approval of department payments from August 12, 2011 to November, 2 11 in the amount of $3,318,097.39. RECOMMENDATION: Staff recommends approval of payments totaling $3,318,097.39 BACKGROUND: Individual nnvmon+e cvrg%g%A;- Qa cM o., - - • . w %~%dYri IvIUI Ulu IIbICU U@IDW Dresser Services Inc . . A b t 9,650.00 s es os abatement & ceiling fireproofing scrape per agmnt # P W 11-059 Wallace & Smith Contractors Mill C k 375,157.10 ree streets utilities & infrastructure work era rmnt #RA 10-011 The Cat People Business moving expenses - re-establishment 7,800.00 Gold Coast Electric, Inc. 129 673 23 Progress payment per a rmnt # RA 11-005 , . 191h & Investment Group, LLC 95 660 85 Progress payment era rmnt # RA10-009 , . Wallace & Smith Contractors Mill Creek streets utilities & infrastructure work era rmnt #RA 10-0 11 62,173.26 Aleshire & W nder LLP 4 601.00 Legal services era rmnt # RA 11-007 , Creekview Villas LLC , Draw re uest era rmnt #RA09-001 49,386.72 University of La Verne 6,000.00 Payment re: 1600 Truxtun Avenue era rmnt #RA07-001 HPS Mechanical Inc. 52,761.60 Boiler replacement at Rabobank era rmnt #RA11-004 Housing Authority of The County of Kern 105,759.49 Draw request per a rmnt #RA10-003 US Bank 616,775.00 COP Series A & B Interest due California Housing Finance Agency 1,791,395.00 CHFA Help Loan # 1585 Principal & Interest payment SAKim GWDMIN-BRDA\ADMIN-BRDA-AP-20121ADMIN--BRDA-AP-11-14-1 Ldoc A eotrn14 S ADMINISTRATIVE REPORT ~o MEETING DATE: November 14, 2011 AGENDA SECTION: Reports ITEM: 5. a. TO: Bakersfield Redevelopment Agency APPRf FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: November 3, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Update of State related and legal issues regarding Redevelopment. RECOMMENDATION: No action required. BACKGROUND: Staff will provide a report of State related and legal issues regarding the status of Redevelopment. S:\Admins\RDA\RDA Admins 2011 \Legislahve Update 111411.Docx 11 /3/2011 1:37 PM Cg F~ Aa, k ~ • fcn ADMINISTRATIVE REPORT C +RY I MEETING DATE: November 14, 2011 AGENDA SECTION: Reports ITEM: TO: Bakersfield Redevelopment Agency FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: November 3, 2011 GENERAL COUNSE EXECUTIVE DIRECT( SUBJECT: Update status of Mill Creek Area Projects RECOMMENDATION: No action required. BACKGROUND: Staff will provide an update on Milicreek Area Projects. S:\Admins\RDA\RDA Admins 2011\Millcreek Update 111411.Docx November 3, 2011, 8:48AM Cg A, ADMINISTRATIVE REPORT ~'to MEETING DATE: November 14, 2011 AGENDA SECTION: Reports ITEM: TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L, Kunz, Deputy Executive Director DEPARTMENT HEAD ~f DATE: November 3, 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. S:\Admins\RDA\RDA Admins 2011 \Baker Street Update 111411,Docx 11 /3/20118:45 AM Cg BAK O~~,waro,r S U p ADMINISTRATIVE REPORT MEETING DATE: November 14, 2011 AGENDA SECTION: New Business ITEM: 7.a. TO: Bakersfield Redevelopment Agency All FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEA¢ DATE: November 3, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR T7 SUBJECT: Assignment and Assumption of Owner Participation Agreement No. RA08-014 (19th Street Seniors) 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 .("Assignor", as owners' agent and manager) to construct 19th Street Senior Plaza, 67 units of senior rental housing in a three-story structure, with an adjacent 132 space parking structure. The proposed project located on developer owned property is immediately east of the Mill Creek Linear Park between 18tn and 19th streets, The project is located in the Old Town Kern-Pioneer Redevelopment Project Area. The following is a chronology of changes to the project primarily due to developer challenges with obtaining bank financing: On September 14, 2009, in recognition of the difficulties in securing bank construction loans due to unfavorable market conditions, the Agency entered into Amendment No. 1 to Agreement 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 Agency's participation for the housing portion of the project included $3,65 million of redevelopment housing set-aside funds. Assignor agreed by certain promissory note dated August 25, 2008, to repay the Agency's contribution to the Project should any default of the Agreement occur. On August 18, 2010, the Agency, Owner, and Assignor entered into Amendment No. 2 to Agreement RA08-014 to revise terms of the Agency's financial assistance to allow the project to continue development and to provide for the construction of the parking garage. The amendment included a $1,300,000 loan of federal funds disbursed by the United States Department of Housing and Urban Development pursuant to the Home Investment Partnerships Act Program ("HOME") program to the Project and a $1,900,000 grant of Proposition 1 C Infrastructure Assistance funds disbursed by the California Department of Housing and Community Development for the parking structure. S:\Admins\RDA\RDA Admins 2011\19th St Senior Assignment Agreement. Docx 11/3/201114:44 PM DB ADMINISTRATIVE REPORT Page 2 Subsequently, on February 25, 2011, the Agency entered into Amendment No, 3 to Agreement RA08-014, to assist the Owner with the development of the parking structure by increasing the amount of redevelopment financial assistance as a loan of $500,000 due to a restricted lending market. Summary and Recommendation The purpose of this agreement is to assign the original agreement and all subsequent amendments from the 19th Street Plaza LLC (Assignor) to The Meo Group (Assignee), who would assume all obligations under this Assignment and Assumption of Owner Participation Agreement. The original 2008 agreement was structured with both parties, Mike Keele, 19th Street Plaza LLC and Byron Meo, The Meo Group. Because Mr. Keele has encountered numerous obstacles in obtaining construction financing for this project, he is willing to sign over all development rights to Mr. Meo. This is allowed under the original agreement and staff is satisfied that the Mr. Meo will be able to provide a construction loan of $4.3 million. Mike Keele, 19th Street Plaza LLC (Assignor) has agreed to assign duties as agent of the Owners and manager of the Project and the parking garage to The Meo Group. Mr, Meo has demonstrated the capacity to secure the construction loan of $4.3 million or greater. This Assignment confirms Assignee's transfer of rights and obligations under the original Agreement, three amendments, the amended Agency Note and the HOME Funds Note (collectively, "Assigned Documents"), to the Assignor. This Assignment contains no intent of making any additions or modifications to the terms of the assigned documents other than the transfer of rights therein to Assignee. All rights and obligations of Assignor, including any rights to payment under any of the assigned documents, would be assigned to Assignee. This includes the HOME funds note and the amended Agency Note. S:\Admins\RDA\RDA Admins 2011\19th St Senior Assignment Agreement.docx 11/3/20114:44 PM (DB) BA R o~ CO PO Il `s U p ADMINISTRATIVE REPORT MEETING DATE: November 14, 2011 AGENDA SECTION: New Business ITEM: 7.b. TO: Bakersfield Redevelopment Agency APPROVED FROM: Donna L. Kunz, Deputy Executive Director DEPARTMENT HEAD DATE: November 4, 2011 GENERAL COUNSEL EXECUTIVE DIRECTOR SUBJECT: Assignment and Assumption of Disposition and Development Agreement N q, A09- 001 (Creekview Villas), RECOMMENDATION: Staff recommends approval. BACKGROUND: On February 2, 2009, the Bakersfield Redevelopment Agency entered into Disposition and Development Agreement RA09-001 with Creekview Villas, LLC ("Assignor") to construct 36 units of for-sale affordable residential townhomes known as Creekview Villas. The project is located east of the Mill Creek Linear Park west of "S" Street between 13th and 14th streets. The project is located in the Southeast Bakersfield Redevelopment Project Area. The following is a chronology of changes to the project primarily due to developer challenges with obtaining bank financing; • On October 12, 2009 the Agency entered into Amendment No. 1 to Agreement No. RA09- 001 to provide $205,000 in funding for engineering and survey services necessary for street design and streetscape improvements consistent with the existing Mill Creek architectural theme. On April 20, 2010, in recognition of the difficulties in securing bank construction loans due to unfavorable market conditions, the Agency entered into Amendment No. 2 to Agreement RA09-001. The amendment allowed the developer to borrow $1,500,000 from its Courtyard project adjacent to Creekview Villas. These funds would allow for the completion of Phase 1 of the project which consisted of 14 units. Upon sale of the 14 units the $1,500,000 would be paid back to the Agency and returned to the Courtyard project. On August 18, 2010 the Agency entered into Amendment No. 3 to Agreement No. RA09- 001 to require the maintenance of all street and landscape improvements through the formation of a maintenance district. S:\Admins\RDA\RDA Admins 2011\Creekview Assignment Agreement.Docx 11/4/2011 10:34 AM dls ADMINISTRATIVE REPORT Page 2 • On February 25, 2011, the Agency entered into Amendment No. 4 to Agreement No. RA09-001 to provide downpayment assistance for the project. The downpayment assistance would assist in ensuring the affordability of the units. Summary and Recommendation The purpose of this agreement is to assign the original agreement and all subsequent amendments from Creekview Villas, LLC (Assignor) to The Meo Group (Assignee), who would assume all obligations under this Assignment and Assumption of Disposition and Development Agreement. The original Agreement and Amendments were structured with both parties, Mike Keele, Creekview Villas and Bryon Meo, The Meo Group. Because Mr. Keele has encountered numerous obstcles in completing the project, he is willing to sign over all development rights to Mr. Meo to complete the project. This action is allowed under the original agreement with Agency approval and staff is satisfied that Mr. Meo will be able to complete the construction of the remaining 22 units. The existing Disposition and Development Agreement provides for assignment between the parties of all rights and obligations. This Assignment confirms Assignee's transfer of rights and obligations under the original Agreement, four amendments, the Agency Note, Deed of Trust, and Regulatory Agreement (collectively, "Assigned Documents"), to the Assignor. This Assignment contains no intent of making any additions or modifications to the terms of the assigned documents other than the transfer of rights therein to Assignee, All rights and obligations of Assignor, including any rights to payment under any of the assigned documents, would be assigned to Assignee. S:\Admins\RDA\RDA Admins 2011\Creekview Assignment Agreement.docx 11/4/2011 10:34 AM (DB)