There continues to be significant redevelopment activity in each of the three project areas with several projects in various stages of planning, negotiation, demolition or construction.  The following is highlights of Bakersfield redevelopment project activity. 

Redevelopment Activity Highlights:

The Parkview Cottages – Single Family Housing Project (OTK-P)
Construction of the Parkview Cottages project continues.  The City was awarded a $1.2 million HELP loan that was used to acquire a portion of the old foundry site located at 21st and “R” streets.  The project consists of three phases, and 74 single-family housing units, ranging from 1,280 to 1,820 square feet.  Each unit will be two stories and have a two/three car garage.  The estimated total project cost is $10.4 million of which $1.4 in HOME and $970,000 in RDA funds have been set aside for the City’s Down Payment Assistance program.  Eighteen homes are currently under construction.  Home buyers currently occupy 23 units and two units are models.  The anticipated completion date for the entire project is November 2007.

Baker Street - Old Town Kern Mixed Use Project
Over the past three years, the Redevelopment Agency (Agency) has been diligently assembling nearly two blocks of required land for the Baker Street Village mixed use project.  The Agency acquired fifteen properties, relocated ten businesses and two residential occupants and then demolished the buildings in preparation for this project.  The project site is now vacant with the exception of the former Coronet Building which will be renovated and incorporated into the project.

The commercial component of the project will consist of five (5) new commercial buildings containing a total of approximately 54,000 square feet that will provide various retail space configuration options for potential tenants.  The two story Coronet Building contains 20,000 square feet and includes a basement.

The residential component of the project will consist of 84 residential units.  Fifty-three (53) will be affordable units at 60%, 80%, 100%, and 120% of medium income.  Thirty-one (31) units will be sold at market rate.  The Council and Agency intends to provide down payment assistance to qualified buyers.  All homes reserved as affordable will contain various covenants and restrictions to assure continuing affordable opportunities dependent on income levels. 

The City and Agency will provide professional housing staff and department management to coordinate the construction development.  Homebuyer counseling and home purchases will be monitored for affordability and occupancy and maintenance standards to assure the long term success and compliance of the project.

Another requirement of the total project is to generate 106 full-time equivalent jobs, 51% of which are to be provided to low and moderate income persons and the future project residents.  The goal is to create these jobs within three years following project completion.

Estimated total project value is about $30 million.  The City has utilized multiple funding sources for land acquisition, relocation and demolition including a $1,000,000 Section 108 loan, $250,000 Brownfields Economic Development Initiative (BEDI), $741,102 tax increment funds, and $1,166,514 CDBG funds.

South Mill Creek  -  Retail, Entertainment & Housing Project (SE) 
The City of Bakersfield was awarded a $3,750,000 federal Section 108 Loan and a $750,000 Brownfield Economic Development Initiative (BEDI) grant to be used for land assembly and to assist with the development of the $80 million South Mill Creek mixed use project.  Planned components of the mixed-use project include; 65,000 square feet of commercial development including retail, restaurants, entertainment, recreation and neighborhood services, 80 units of affordable town-home style high rise two and three bedroom rental units and 35 upscale market rate urban style condominiums.  The Redevelopment Agency currently has site control of approximately 5.5 acres which has been earmarked for the affordable housing rental component. The additional 4.5 adjacent acres is privately owned and will be acquired by the Redevelopment Agency for the project.  The project will generate 156 new full-time equivalent jobs, will replace a contaminated auto wrecking yard and auto body shop in addition to a partially converted warehouse and predominantly vacant dilapidated commercial building with several abandoned partial structures.

In February 2007, the Bakersfield Redevelopment Agency issued a Request for Statements of Qualifications and Development Proposal (RFQ) to 70 potential developers for the construction of the 10 acre mixed use residential/commercial development to be located on property between South “Q” Street and “S” Street, and California Avenue and the Burlington Northern & Santa Fe railroad tracks.  Responses to the RFQ were received on May 15, 2007 and are currently under review.  Staff is nearing the final phase of the environmental review process in order to access the HUD funds in August 2007 to complete the remaining land acquisitions required for the project.

Certain rental restrictions limiting the income will be required as a covenant and condition of the multi-family rental property.  The rental restrictions include:  13 units to be restricted to persons whose incomes do not exceed 50% of area median income and 67 units to be restricted to persons whose incomes do not exceed 80% of median income. For the condominiums, the restrictions include:  6 units will be restricted to persons whose incomes do not exceed 80% of area median income 29 units to be restricted to persons whose incomes do not exceed the CalHFA Downpayment guideline for Kern County.

Recreation and Park Improvements Along Downtown Canal  (Mill  Creek in OTK-P) 
Mill Creek is a conceptual design of a 1.5 mile stretch of agricultural canal which is being redeveloped into a major recreational linear park with a white water look and will travel through the heart of downtown Bakersfield along the Kern Island Canal from Golden State to California Avenues. Elements of the project include a walking path, public art, street furniture, lighting, decorative fencing, landscaping, creation of a pond in Central Park, and a new pedestrian plaza at 17th Street and “R” Street intersection creating a “River Street” environment. 

Royston, Hanamoto, Alley, & Abney, Inc. a premiere landscape architecture firm with a broad practice in the design and planning of outdoor spaces provided preliminary engineering design and detailed project cost estimates to develop the project. The City of Bakersfield has received the draft Master Plan for fully implementing the Mill Creek Linear Park over time as full funding becomes available.  Appropriations in the FY 2007-08 budget include $400,000 for the 21st Street crossing segment and $1.0 million for Central Park Improvements.  Construction is anticipated to begin in December 2007. 

Southeast Neighborhood Revitalization Project – (SE)
Staff is moving forward to finalize a 3 year targeted neighborhood revitalization program beginning October 2007, for a five block area bounded by Brook Street to the south, Hale Street to the east, E. Planz Road to the north and Cottonwood Road to the west.  The area is a blighted tract with 132 structures, ranging from wood frame commercial buildings, some new and older mobile home units and deficient wood frame single family homes.  21 vacant lots are scattered throughout the neighborhood with various amounts of debris, abandoned vehicles and substandard structures.

This is a comprehensive neighborhood program which includes the addition of one dedicated Code Enforcement position, partial clerical support, equipment and supplies to provide various code enforcement activities such as removal of junk cars and the demolition of substandard structures.  Other public improvements are also planned for the neighborhood that includes the installation of curb and gutters.  Additional housing programs are currently under development for this neighborhood including a homeowner rehabilitation program.  Other programs for low and moderate income residents include an exterior paint program, front porch program to improve the appearance of the exterior of a residence, bulky waste pick up days and neighborhood watch.  The program will be funded with a combination of federal HOME funds and Southeast Tax Increment funds.

South Mill Creek Plaza Cinema Complex 
South Mill Creek Plaza is a mixed-use lifestyle, ground-up development on approximately 7 acres. The site is designed to accommodate a total of 89,000 square feet of space featuring 28,000 sq. feet of entertainment related retail, restaurant space and 61,000 sq. feet state of the art 16 screen, 2,600 seat multiplex cinema.  Maya Cinemas North America, the developer, plans to develop the project south of Rabobank Arena and Convention Center, and south of the railroad tracks between California Avenue, “M” Street and the Kern Island Canal.  Maya Cinemas North America and D.W. Sivers have acquired all the property necessary for the development of the $32 million dollar project and will take 24 months to construct and stabilize.
The South Mill Creek Plaza will be a major factor in reducing blight in the area and will provide the Southeast Redevelopment Project Area with an anchor tenet that will be a catalyst for additional development along California Avenue.

Southeast Bakersfield Infill Housing Project (SE)
The Agency assumed all rights and obligations for Phase II of the Southeast Infill Housing Project funded by a $500,000 California Housing Finance Authority (CalHFA) loan, interest rate of 3% per annum over a term of ten years.  The loan is used to build affordable housing on scattered lots in Southeast Bakersfield.  Fourteen new homes have been constructed to date.  Staff is working to complete a two year agreement with Hybrid Construction for fiscal year 2006-07.  Nine tax defaulted properties have been acquired for construction sites.  Bakersfield College recently completed an agreement with the Agency for participation in the program.  Staff anticipates the completion of another three homes by the end of June 2007.  The area has seen an increase in sales prices in the range of $170,000 to $200,000 due, in part, to the activity generated by this program and affordable housing demand.

EPA Brownfield Grant (DT, OTK-P, SE)
Staff continues to market the U.S. Environmental Protection Agency $1 million Brownfields revolving loan fund grant that targets the city’s three redevelopment areas.  The EPA grant is used to capitalize a revolving loan fund from which the city will provide loans and sub-grants to conduct cleanup activities.  The EPA funds require a 20% match.  The match has been pledged from various funding sources.  The revolving loan fund will promote the reuse of Brownfields in blighted areas, reduce economic and physical blight, and improve the economic well-being of the community and its residents.

State Water Resources Board – Orphan Grant
In April 2006, the State Water Resources Control Board awarded the City of Bakersfield a $1.5 million Orphan Site Cleanup Account Grant (OSCA) to clean up the former Navy Oil Company site located at 1433 Union Avenue in the proposed Mill Creek South project area.  In September 2006, staff issued a request for proposal (RFP) for a Corrective Action Plan (CAP), and received two responses from regional qualified environmental firms.  The CAP is to provide feasible, cost effective alternatives for mitigation of the residual petroleum suitable for the proposed redevelopment project.

The City of Bakersfield recently executed an agreement with Geomatrix Inc., a regional environmental firm to prepare the CAP and provide a cost estimate for the project. The City of Bakersfield Fire Department Prevention Services Division, as the Certified Unified Program Agency (CUPA) will be the local oversight agency for the soil remediation and risk assessment under the OSCA grant. The project will be completed no later than July 2008.

The Village at Towne Centre(OTK-P)
The developer has completed this mixed use project on the long vacant (formerly Sangera Buick/Volvo) auto sales site.  Across the street staff worked with a local developer to acquire a vacant CalTrans parcel at 24th and “M” streets, which the Agency later transferred to the developer for the same purchase price.  The acquired CalTrans parcel provides adequate parking for the development tenants.  The project contains over 40,000 square feet of commercial space.  Current tenants are Starbucks, Flame ‘n’ Skewer, UPS Store, Western Dental, Baja Fresh, University of LaVerne, and Lee's Pharmacy.