Redevelopment revenues decline; Coronet building slated for demolition
| Monday, Jan 04 2010 07:17 PM
Last Updated Monday, Jan 04 2010 07:17 PM
Another tidbit from Monday's meeting was an annual financial report listing the top 10 property taxpayers in the city's redevelopment areas, along with the assessed valuation of their holdings in 2008 (not what they paid in taxes). Numbers are rounded.
Nakanogumi Corp.: $29.4 million
Carson Inn Inc.: $27.1 million
Lee Development LLC: $22 million
Calif. Ave. Senior Housing LP: $19.9 million
NGP Capital Partners III LP: $19.2 million
CPT Operating Partnership LP: $17.3 million
CL Investors: $15.2 million
UCM Titan Bakersfield Indstrial Portfolio: $13.1 million
CALCOTT Ltd: $10.8 million
Fourteen Thirty Truxtun Ave. PTP: $10.1 million
The year's first meeting of the Bakersfield Redevelopment Agency Monday included some dreary -- and unexpected -- fiscal clouds.
In addition, fans of Bakersfield's old structures might be saddened by the probable demolition of the Coronet building in Old Town Kern.
City finance officials recently learned of a $100 million decrease in property values in a redevelopment area in the southeast; values were previously pegged at about $815 million. They figure the drop will reduce revenues by $750,000 in the current fiscal year, which ends June 30.
Alan Tandy, Bakersfield's city manager, said the revenue decrease, combined with a possible state "take" of about $2.5 million in local redevelopment funds, will "greatly constrain our ability to initiate" new projects. No agency layoffs are expected.
The city's southeast redevelopment area covers more than 4,500 acres, generally south of California Avenue and east of H Street. It is the largest of three such areas that use certain property taxes for rejuvenation projects.
Nelson Smith, the city's finance director, said his office had expected no change in property values in the three areas. Values in the other two stayed steady.
The city council will hear an update on the tax revenue drop and other midyear budget issues, including sales tax declines, later this month.
In other business, the redevelopment agency:
* Heard from Donna Kunz, the city's economic development director, that the city had retaken ownership of the Coronet building near Baker Street in the Old Town Kern redevelopment area. The building, previously planned for renovation, will likely be torn down while under the city's ownership, she said, because modernizing it would be too expensive.
* Approved a $70,000 increase, nearly double the original contract amount, for outside legal fees in an eminent domain dispute at 730 California Ave. in the South Mill Creek project. An ongoing legal dispute could go to trial in March if it's not settled.
* Heard from Kunz that the developers of the Parkview Cottages, Petrini Brothers Inc., received notice from the city that they have defaulted on their contract. Construction on the remaining 25 or so empty lots could be put out for bid, she said, although "it's going to be awhile" before the remaining cottages get built because of the economy.
* Re-elected Philip Bentley to chair the agency for another year and Larry Koman to serve as vice chair.
