BAKERSFIELD, Calif. (KGET) — The Bakersfield City Council voted to approve a lease agreement for the Bank of America building in downtown Bakersfield, along with an option to purchase the property in the near future.
The property is on 2.31 acres at 1430 and 1440 Truxtun Ave. across from the Kern County courthouse. It is owned by Erwin Property LLC.
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The building would provide office space for the city’s police department, which grew significantly in staff size as assessed in 2021, according to City Manager Christian Clegg.
The city’s five-year lease agreement sought 22,244 square feet of the ground floor, 9,231 square feet of the second floor and 9,396 square feet on the third floor, for a total lease space of 40,871 square feet. It also included 94 parking spots out of the property’s 292 total.
City Council was recommended on Wednesday by staff to approve the lease agreement execution and appropriate $400,000 to spend on investigating the building for possible purchase. This amount would be used to hire third-party individuals to assess the building.
City officials said staff can begin the due diligence period in the middle of March if the City Council approves the agreement at this meeting. They would have until July 15 to make a final decision on the purchase or lease.
In 2021, the city leased office space on California Avenue as a temporary solution for BPD staff.
The Truxtun Tower became a “realistic option” for the city in 2025, Clegg said.
Clegg said this agreement would create short-term and long-term savings for the city. The lease for the California Avenue space was $935,000 in 2025 and the new negotiated lease is estimated to be $1.1 million annually, while the proposed lease for Truxtun Tower’s first two years is $682,000 and $795,000.
“This is part of creating more ongoing operational capacity because it frees up the dollars that are currently being spent on a lease that does not lead to any long-term asset ownership,” Clegg said.
The city has two purchase options, officials said. If they complete the due diligence period by July 15 and escrow closes by Aug. 15, the city can purchase the property for $13.6 million. If more time is needed and escrow closes by June 15, 2027, the city can buy it for about $14.2 million.
The revenue generated from tenants who already exist in the building is expected to cover the operating costs the city would be responsible for if it purchases the property, according to officials.
Ward 6 Councilmember Zack Bashirtash made a motion to postpone this agreement. He said this is a great opportunity to save money and get more space, but he hasn’t received all the information he requested yet, such as a profit and loss statement and a copy of the California Avenue lease contract.
Bashirtash’s motion would have delayed the city from hiring third-parties for building assessment by two weeks as it would’ve had to be approved at the next City Council meeting.
“I won’t make a $14 million decision based on PowerPoint, no offense, the PowerPoint is great and I appreciate your brevity,” said Bashirtash. “I just, as a business guy, I think those are realistic expectations that any taxpayer would be concerned about looking over just to make sure that we are making a right move with taxpayer money.”
Bob Smith, representing Ward 4, made a motion to approve the lease agreement and the due diligence period. He said this would save money, move police back to downtown Bakersfield and help the economy in the area.
Ward 5 Councilmember Larry Koman said the city needs to start considering its long-term vision.
“I think that that corner really has a significance in the future of Bakersfield and for us to be able to control that corner, I think, is awesome,” said Koman.
He also said he agrees with Bashirtash in wanting to see additional information, but is fine with getting it during the due diligence period.
Andrae Gonzales of Ward 2 said vacant or underutilized buildings are holding downtown Bakersfield back from improving because they can become liabilities for the city that may require potential police and fire responses in the future.
Bashirtash said his motion would save the city from immediately spending $400,000 for due diligence, as opposed to Smith’s. He clarified he’s not opposing the plan for the building, but that money can be saved if they get a P&L statement to compare the old and new leases.
Clegg said the city isn’t expected to spend all amounts immediately and staff can stop spending the portion of the $400,000 if they found the purchase to be a bad deal during their investigation.
Smith said governments move very slowly. He argued it’s better to have a signed agreement rather than postponing it, which could lead to unexpected situations like the seller changing his mind.
The City Council first voted on Bashirtash’s motion to delay the process. Gonzales, Koman, Smith, Ward 1 Councilmember Eric Arias and Vice Mayor Manpreet Kaur voted no, while only Bashirtash voted in favor of it.
The Council then voted on Smith’s motion to move forward with the lease agreement and due diligence period. Only Bashirtash voted against this motion, allowing the motion to move forward.
Ward 3 Councilmember Ken Weir was absent at the meeting.
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