HomeMy Public PortalAbout02-07-2000 PROCEEDINGS OF THE COMMON COUNCIL OF
THE CITY OF RICHMOND,INDIANA,MONDAY,FEBRUARY 7,2000
The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday,
February 7,2000,in the Council Chambers in said City.President Larry Parker presided with the following
Councilmembers present: Howard "Jack" Elstro, Etta J. Lundy, Bruce Wissel, Karl Sharp, Bing Welch,
Phil Dickman and Sarah "Sally" Hutton. Councilmember Paul Combs was absent due to illness. The
following business was conducted:
PLEDGE OF ALLEGIANCE
PRAYER BY COUNCILMEMBER SHARP
ROLL CALL
Eight present.
APPROVAL OF MINUTES
Minutes of the January 18,2000 meeting were approved on a motion by Councilmember Wissel,second by
Councilmember Welch and the motion was carried on a unanimous voice vote.
PRESENTATION OF REMONSTRANCES, PETITIONS, MEMORIALS, INTRODUCTIONS,
MOTIONS AND PUBLIC COMMENTS
COMMUNICATION FROM THE MAYOR
Mayor Dennis Andrews commented that he would like to use his allotted amount of time this evening to
have a discussion with Council and others about the status of the Leland Hotel which is closed to the public
as of last week. He said he felt, since this is the case, that it would be appropriate to have some public
discourse on the subject as well as talk about some of the steps which have been taken to date and some
that might be considered to be taken within the next several months.
He said the Leland,as a physical structure,is one of the many buildings that the City wrestles with, adding
that oftentimes they come from different circumstances. He said that during a three-day period last week
there were meetings and discussions about five different facilities which included the YMCA building, the
depot owned by the Urban Enterprise Association, the Atlas building which is privately held, the Gas
building which is owned by the City and the Leland Hotel. He said the discussions centered around the
circumstances, challenges, funding and potential public participation in relation to each of those separate
facilities.
He said he believes as an activity center in the heart of uptown,the Leland is a facility and an activity that
is something that if it is focused on through participation of non profits, public and private sectors can
hopefully be a success story. He said in the past year there have been on-going discussions about that
facility and this administration has had contact with the owners,prospects and prospective owners.He said
about six months ago when looking at the restructuring of the City's Revolving Loan Fund portfolio,one of
the things that was done,primarily because of the discussions with those associated with the Leland, was to
have a set-aside in the portfolio that could possibly become part of a finance package.
The Mayor said this would have been in the form of a loan should there be a request for public
participation, adding that there was no such request made. However, he said, that step was taken in
anticipation of it signifying that the City was interested in more than a passive way in that facility. More
recently,he said,completely aside from that Revolving Loan action at the request of the administration,he
said he asked the Law Department to research the redevelopment plan which includes a list of projects for
which funds can be appropriated by the Redevelopment Commission.He said there are several things listed
in that plan,created by an ordinance,that authorizes the commission to appropriate funds.
However,he said, the Leland is not a part of that plan at the present time. He said during one of the times
he has had discussion with Mr. Nelson, the manager and contact for the ownership, he advised him of that
and how it could be changed or amended if someone would decide accumulatively to do something. One of
the issues, Mayor Andrews said, which might be considered is adding the Leland to the Redevelopment
Plan,adding that the only thing that could do is to allow that appropriation should the commission receive a
proposal with which they would feel comfortable.
He said it has been several years ago since that Redevelopment Plan has been looked at, so it may be a
good thing to be considered. He questioned as to whether to move this discussion on to a form of
Committee of the Whole with Council,or whether or not the administration moves it forward in the form of
a town meeting. He said one of the reasons he is optimistic about some form of combined innovative
partnership to move forward and hopefully to attract a private investor is that there is great interest in the
activity center in that location which is important to the uptown area. He said within the last week he, as
well as several Council members have received community feedback about the Leland. Therefore,he said,
he feels that as this is moved forward a forum needs to be provided for that to continue.
Common Council Minutes Cont'd
February 7,2000
Page 2
The Mayor said until further notice, Mr. Nelson would be the point of contact because he will be at the
hotel for the next few months. By referencing something that was said by Tom McKee at the annual
meeting of the Economic Development Corp.,the Mayor said there is no successful vital uptown that is not
part of the EDC initiative for the community. The Mayor said if the closure of this building could be
viewed as an opportunity to think about making connections such as the Technology Zone or any other
infinite number of possibilities it might turn that facility into a success as opposed to a recurring story of
closure. He said his hope is that this City can see it stay in the private sector and can take important steps
short of underwriting the matter, as Councilmember Parker expressed concern about, with taxpayer dollars
in disproportion to what the overriding concern is,and that is to have an activity center in that location.
Councilmember Hutton said she felt a town meeting was a good idea and asked if Mr. Nelson would
possibly consider having that meeting at the Leland. The Mayor said he would be surprised if they didn't
allow that to happen and agreed it would be a good location. Councilmember Welch asked if the current
owners had indicated they are still exploring the potential of a sale with prospective buyers or purchasers.
The Mayor said that is true, adding that one of the things the City would like to do is to help get something
going on this as soon as possible. He said he wasn't sure as to whether the building was listed with any
private firm or not, adding that one of the things the City thought would be advantageous is what people
need to know about this facility.
Councilmember Lundy asked about the income from tax abatement donations, as to whether or not that
money is going to be used in case something needs to be done for the Leland.The Mayor responded,saying
that the tax abatement donations that have been receipted by the City, had been restricted by the City in
terms of how that money could be applied. That language, he said, had been changed only to allow the
Board more flexibility and one of the reasons for that is this project,potentially. He asked City Controller
Shelley Miller to step forward and respond to that issue.
Miller stated that the City does have the three homeowner programs that it had previously and what the
City did through the restructuring was to use local cash for those programs. She added that the Revolving
Loan Fund was experiencing a long delay in getting applications through the state agencies which was
taking between four to six months which,she said,was too long for the potential owners to wait for repairs.
She said that restructuring has worked and at this time the City is evaluating those three programs to see
what kind of need continues. She said the money beyond that, the$100,000, was set aside and at this time
the City is also receiving the annual donations through the tax abatement requests. She said the City is
currently evaluating the historic program,the homeowner equity program and the homeowner rehabilitation
to find out where the need is. So, at this time no application is being processed until the City has those
results. She said these evaluations would be taken to the Revolving Loan Fund Board to get further
recommendation from those Board members.
Councilmember Wissel asked how much money is currently in the local cash account and Miller answered
there is approximately $130,000. She repeated that the City recently sent out the tax abatement donation
requests and these are returned during December through March. She added that$100,000 in donations is
typically received with 50 percent going into the infrastructure fund and 50 percent into the local cash so
the receipt of another $40,000 to $50,000 is anticipated within the next three months. Councilmember
Wissel then commented that that donation is suggested to be 10 percent of the abated tax savings, and
Miller said that is correct.
President Parker said he feels the Mayor has made a good point that the City should be the focal point of
this, going through the Mayor's office and Council as well as the respected avenues it needs to go to. In
saying that, President Parker announced that he would allow comments from the public for about 30
minutes,giving each person three minutes.
Stepping forward was Tom Cox, 4407 State Road 227 South, who said the Leland sits on a viable
intersection in the City, adding that he feels it is a real opportunity that something new is going to happen
on that corner.He said the property owned by him and his wife,Midtown Prescriptions,is the first business
property north of the hotel and over the years they have seen a lot of good things happen.He said one of the
good things was the tearing down of the buildings to make room for public parking. He said making it a
multi-purpose facility would be a good thing for this community.
Also speaking on the issue was Javier Aguilar of 324 South 27th Street who said he has lived in Richmond
for 10 years and has a business at 42 South 9th across the street from the Leland. He said that in reading
about the history of the Leland, he believes there is a change in order for the building itself. He suggested
that other organizations should get involved in the possibilities for the building both locally and outside the
City.
Scott Zimmerman, 429 Kinsey Street, the Eastern Regional Director of Historic Landmarks Foundation of
Indiana, stated that he believes this can be an opportunity, adding that this is a historic resource for this
community and was listed in the National Register of Historic Places in 1985. He added that that makes it
eligible for additional grants for its redevelopment and tax credits for private redevelopment,both positives
in this situation. He said his organization has helped other communities to look at the "white elephant"
downtown hotels such as Hotel Roberts in Muncie, the hotel in Anderson, and the Deming Hotel in Terre
Haute which was adapted for senior housing in the downtown area.
Common Council Minutes Cont'd
February 7,2000
Page 3
Councilmember Welch asked for more facts on the Hotel Roberts. Zimmerman said his understanding is
that originally there was only a single use for that building but realized they needed a multiple use for the
building,which is its current status.
Also speaking was Andrew Cecere who resides in King's Row. He said doing away with the Leland would
leave a hole in the uptown area, which was redone, to the tune of$2,500,000 which,he said,has proven to
be well worth the cost.He said he feels the community has a responsibility to see that the Leland continues,
adding that he feels that can be done as a hotel with proper management and some assistance from the
community.
Councilmember Welch commended the Mayor for his action to this date, adding that he would like to see
Council help with the ongoing continuation of discussion about the Leland.
The Mayor said one of the main things he wished to discuss with Council was the potential revisiting of the
Redevelopment Commission Plan and he hoped that might be one way at looking at this question about the
hotel. He suggested that Council might want to designate a representative to attend discussions about this
and have public participation either at a Committee of the Whole by Council or as a town meeting by the
administration. President Parker said he felt the Committee of the Whole meeting would be the avenue to
follow. Since there was no opposition from any of the Councilmembers, the Mayor agreed that would be
the format to be used.
REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY
President Parker said the minutes of the meetings of January 6, 13 and 20, 2000 were included in their
packets.
REPORTS FROM DEPARTMENT HEADS
REPORTS FROM STANDING COMMITTEES
REPORTS FROM SPECIAL COMMITTEES
REPORTS FROM ORGANIZATIONS
MISCELLANEOUS BUSINESS
Councilmember Hutton nominated Dick Foore,supervisor at GTE,to be a member of the Urban Enterprise
Board, stating that he is a 10-year resident of Richmond and has been actively involved in the community,
second by Councilmember Dickman and the motion was carried on a unanimous voice vote.
ORDINANCES ON FIRST READING
Councilmember Elstro moved to suspend the rules and read by title only Ordinance No. 8 and 9 —2000,
second by Councilmember Welch and the motion was carried on a unanimous voice vote.
ORDINANCE NO.8—2000
The Clerk read Ordinance No. 8—2000—A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL
OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS
UNDER I.C.6-1.1-12.1.
Councilmember Wissel explained that this ordinance deals with a request for tax abatement for
manufacturing equipment by Spartech Plastics, estimating that 123 jobs would be retained but not creating
any new jobs.He said this request would go to the abatement committee and there would be a report from
that committee at the February 22 Council meeting.
ORDINANCE NO.9—2000
The Clerk read Ordinance No. 9 — 2000— AN APPROPRIATION ORDINANCE AUTHORIZING THE
SUBMITTAL, ACCEPTANCE, AND APPROPRIATION OF A GRANT FROM THE WAYNE
COUNTY FOUNDATION
Tony Foster, grants administrator for the City, speaking on behalf of the Richmond Parks & Recreation
Department, explained that this is a request for$25,000 from the Wayne County Foundation. He said the
money would be used to assist with the purchase and installation of the fibar safety falling surface and
other related site work for the new playground equipment to be installed in Glen Miller Park.
Councilmember Lundy moved to suspend the rules and advance Ordinance No. 9—2000 to second reading
and read by title only, second by Councilmember Sharp and the motion was carried on a unanimous voice
vote.
Common Council Minutes Cont'd
February 7,2000
Page 4
The Clerk read Ordinance No. 9—2000 on second reading. There being no comments either for or against
the ordinance, Councilmember Elstro moved for engrossment, second by Councilmember Welch and the
motion was carried on a unanimous voice vote.
Councilmember Welch moved to suspend the rules and read Ordinance No. 9 — 2000 on third and final
reading and read by title only, second by Councilmember Sharp and the motion was carried on a
unanimous voice vote.
The Clerk read Ordinance No.9—2000 on third reading.
Ordinance No. 9—2000 was adopted on the following call of the roll:
Ayes:Elstro,Lundy,Wissel,Sharp,Welch,Dickman,Hutton and Parker(8)
Nays:None
ORDINANCES ON SECOND READING AND ENGROSSMENT
ORDINANCE NO. 5-2000
The Clerk read Ordinance No. 5—2000—A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL
OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS
UNDER I.C.6-1.1-12.1.
Councilmember Wissel,chairman of the Tax Abatement Committee,reported that this ordinance deals with
a request for a 10-year abatement for Incy Realty LLC, which is the real estate lessor to Qualitronics. He
said it is for$600,000 in real estate and$50,000 in equipment.He said they estimate 18 new jobs as a result
of this new expansion with 32 jobs retained. He explained that Qualitronics manufactures wiring harnesses
for the automotive industry and its customers include Carpenter, Union City Body, Airstream Trailer,
Grauman Olson and U-Haul. He said he met with Roger Cornett and reviewed with him the new
procedures for tax abatements adopted in January 1998 through Ordinance 113 — 1997 and explained that
the request would not meet the 10-year guidelines as requested in the abatement procedure.He said the Tax
Abatement Committee felt that the investment recognized a substantial investment in the City and that the
entity does meet the guidelines of community involvement and commitment as a major supplier for
Carpenter. He said the committee recommends amending the Ordinance No. 5-2000 to a 5-year abatement
for equipment and a 6-year abatement for real estate,second by Councilmember Welch and the motion was
carried on a unanimous voice vote.
Councilmember Welch commended the abatement committee for its evaluation of these requests and
keeping in mind the guidelines that were established for tax abatements wanting to help local businesses,
but keeping in mind that the community is best served by following state statute and recommendations for
these tax abatements.
President Parker announced that Amended Ordinance No. 5—2000 was on public hearing. There being no
comments either for or against the ordinance, Councilmember Elstro moved for engrossment, second by
Councilmember Welch and the motion was carried on a unanimous voice vote.
Councilmember Welch moved to suspend the rules and advance Ordinance No. 5—2000 to third and final
reading and read by title only, second by Councilmember Sharp and the motion was carried on a
unanimous voice vote.
The Clerk read Ordinance No.5—2000 on third reading.
Ordinance No.5—2000 was adopted on the following call of the roll:
Ayes:Elstro,Wissel,Sharp,Welch,Dickman,and Parker(6)
Nays: Lundy and Hutton(2)
Absent: Combs
ORDINANCES ON THIRD READING
There were none.
UNFINISHED BUSINESS
Speaking to the issue of tax abatement, City Attorney Bob Bever explained that at the special session held
late in 1999 that the State Legislature did give more flexibility for the tax abatements on real estate and
personal property.He said previous law was that a community could grant upon real estate for three, six or
10 years and for 5 or 10 years on personal property. However, it is now Council's prerogative to grant 1
through 10 years, whichever way it wants so it could have all those variances. However, he said, the City
does not have that in its local code as yet.
Common Council Minutes Cont'd
February 7,2000
Page 5
Now,Bever asked, since Council has made an amendment to this ordinance just presented, is it Council's
pleasure to ask him to present an ordinance that gives them the same flexibility? Councilmember Welch
said he would like to see the ordinance updated and amended to reflect the more lenient possibilities so that
it becomes a part of the tax abatement committee's consideration. In answer to a question by
Councilmember Wissel,Bever said the granting of 1 through 10 years was the only substantial change that
was made by the state legislature that would affect this body.
CALL FOR ADJOURNMENT
There being no further business, on a motion duly made, seconded and passed, the meeting was adjourned
at 9:10 p.m.
Larry Parker,President
ATTEST:
Norma Schroeder,Clerk