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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