RESOLUTION NO. ____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BAKERSFIELD TO APPROVE AN INTERFUND LOAN FROM
THE EQUIPMENT FUND TO THE GENERAL FUND IN THE
AMOUNT OF $12,100,000 FOR THE PURCHASE OF
PROPERTY (TRUXTUN TOWERS)
WHEREAS, providing adequate space for the Bakersfield Police Department is among the principal responsibilities of the CITY; and
WHEREAS, CITY staff identified a commercial property with a lease and option to purchase to relieve crowded staff conditions, add available parking for CITY ’s uses, and generate private tenant revenue intended for ongoing operational and maintenance costs; and
WHEREAS, on March 11, 2026, the Bakersfield City Council approved Agreement No. [ENTER] to lease with a structured option to purchase the building formerly known as the Bank of America Building (“Truxtun Towers”), generally located at 1430 and 1440 Truxtun Avenue, Bakersfield, California 93301, consisting of over 120,000 square feet located on 2.3 acres of land on a prime corner of property very close to City Hall; and
WHEREAS, on June 30, 2026, a third-party appraiser determined that the value of the property is between $14,100,000 and $14,300,000 which includes the land, parking structure and the building; and
WHEREAS, on July 15, 2026, the Bakersfield City Council approved the Interfund Loan Policy to allow for the City Council to approve loans between funding sources; and
WHEREAS, the City Manager desires to obtain approval of an interfund loan between the City Equipment fund and the City General Fund in order to facilitate the acquisition and improvements of the Truxtun Towers; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bakersfield as follows
1. The above recitals are true and correct and incorporated herein by this reference.
2. Interfund Loan Reimbursement is proposed to provide funds for use by the CITY for the purchase of the Truxtun Towers located at 1430 and 1440 Truxtun Avenue Bakersfield, CA
3. The Loan is executed as of August 26, 2026 (Effective Date), between the City of Bakersfield Equipment Fund (Lender) and the City of Bakersfield General Fund (Borrower). Lender agrees to lend to Borrower, and Borrower agrees to repay Lender, an amount not to exceed the Principal Amount and interest accrued on the unpaid loan balance, in accordance with the following:
4. Principal Loan Amount: Not to exceed Twelve Million and One Hundred thousand ($12,100,000). The loan will be recorded as receivable to the Lender and payable to the Borrower.
5. Term of the Loan: The term of this loan shall be twelve (12) years, beginning on the Effective Date, and shall be repaid in full as of January 1, 2038.
6. Scheduled Payments. Borrower shall make payments annually against principal and interest. The first payment shall commence on January 1, 2027. Exhibit A allocates the annual payment schedule or debt service schedule. Payments will be credited first to interest, then due, and then to principal. Borrower may make partial or complete payment of principal and earned interest at any time before its due date and without any prepayment penalty.
7. Rate of Interest. Interest shall accrue at a rate equal to 2.5%. Loan interest will be recorded as revenue to the Lender and expenditure to the Borrower.
8. General Provisions. This Agreement constitutes the full Agreement by and between the parties and no other representations have been made regarding the contents of this Agreement. This Agreement shall not be amended, modified, or altered in any respect unless such amendment, modification, or alteration has been reduced to writing and executed by both parties.
9. This resolution shall take effect immediately upon adoption.
I HEREBY CERTIFY that the foregoing Resolution was passed and adopted, by the Council of the City of Bakersfield at a regular meeting thereof held on ______________________________ by the following vote:
AYES: COUNCILMEMBER _________________________________________________________ NOES: COUNCILMEMBER
_________________________________________________________ ABSTAIN: COUNCILMEMBER _________________________________________________________ ABSENT: COUNCILMEMBER _________________________________________________________
___________________________________________
JULIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
APPROVED: _________________
By __________________________
KAREN GOH
Mayor
APPROVED AS TO FORM:
VIRGINIA GENNARO, CITY ATTORNEY
By _________________________
XXXXXXXXXX
Xxxxxxxxx
Exhibit A
Amortization Schedule
Year Due
Date
Payment
Due
Additional
Payment Interest Principal Balance
$
12,100,000
1 1/1/27
$
1,179,594
$
302,500
$
877,094
$
11,222,906
2 1/1/28
$
1,179,594
$
280,573
$
899,022
$
10,323,884
3 1/1/29
$
1,179,594
$
258,097
$
921,497
$
9,402,387
4 1/1/30
$
1,179,594
$
235,060
$
944,535
$
8,457,852
5 1/1/31
$
1,179,594
$
211,446
$
968,148
$
7,489,705
6 1/1/32
$
1,179,594
$
187,243
$
992,352
$
6,497,353
7 1/1/33
$
1,179,594
$
162,434
$
1,017,160
$
5,480,192
8 1/1/34
$
1,179,594
$
137,005
$
1,042,589
$
4,437,603
9 1/1/35
$
1,179,594
$
110,940
$
1,068,654
$
3,368,949
10 1/1/36
$
1,179,594
$
84,224
$
1,095,371
$
2,273,578
11 1/1/37
$
1,179,594
$
56,839
$
1,122,755
$
1,150,824
12 1/1/38
$
1,179,594
$
28,771
$
1,150,824
$
(0)
$
2,055,131
$
12,100,000