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1 The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday, August
• 18, 1997, in the Council Chambers in said City. President Bob Dickman presided with the following
c Councilmembers present: Howard "Jack" Elstro, Etta Lundy, Bruce Wissel, Sarah "Sally" Hutton, Geneva
•
• "Gene"Allen, Alan Stamper, Bing Welch and Larry Parker. The following business was had to-wit:
• PLEDGE OF ALLEGIANCE
PRAYER BY COUNCILMEMBER ALLEN
1. ROLL CALL
1
1' Nine present.
1:
1• APPROVAL OF MINUTES OF AUGUST 4.1997
1•
1. The minutes of the August 4, 1997 meeting were approved on a motion by Councilmember Hutton, second
1 r by Councilmember Allen and was carried on a unanimous voice vote.
1:
1: Councilmember Hutton moved to open the agenda and add Ordinance No. 95- 1997 and Resolution No. 10
2I -1997.
2
2' PRESENTATIONS OF REMONSTRANCES. PETITIONS. MEMORIALS OR PUBLIC COMMENTS
2:
2, The Clerk read Resolution No. 10- 1997-A RESOLUTION REGARDING TRAFFIC SAFETY
2.
2. "WHEREAS, on or about August 4, 1997, Richmond Common Council passed Ordinance No. 80 - 1997
2r regarding the return of two-way traffic on North and South 6th Stret and North and South 7th Street;and
2:
2: "WHEREAS, in the course of discussion upon the above Ordinance, it was determined to make a
3. recommendation to the City's Board of Public Works and Safety regarding the other aspects of traffic safety
3 on those two streets;and
3'
3' "WHEREAS, it is now the desire of Council to make such recommendations in the form of this Resolution.
3,
3. "NOW,THEREFORE, BE IT RESOLVED AS FOLLOWS:
3.
3, "1. Parking - In spite of the return of two-way traffic on the above streets, Council strongly
3: recommends that all current parking on both sides of 6th and 7th Streets remain in existence, but
3 s for any individual spaces which may need to be reduced for visual safety purposes at certain
40 intersections.
41
4 "2. Truck Limits - Council recommends that all truck traffic be eliminated on South 6th and South
4 7th Streets between the streets of South A and South E Streets.
4
4 "3. Stop Signs - Council recommends that four-way stop signs be strongly considered at the
4,, intersection of South 6th and South B Streets; and at the intersection of South 6th and South C
4' Streets.
4:
4° "4. Library Crossing - That the City Administrations, through its Department of Public Works, its
50 Street Department and any other applicable office or department, conduct a study and take any
5 action necessary to create a safe pass-way across North 6th Street between Morrison-Reeves
5: Library and the municipal parking lot on the east side of North 6th Street, which pass-way can be
5 implemented following the commencement of two-way traffic upon such street."
5.'
5', Councilmember Stamper suggested that instead of a four-way stop sign that perhaps a crossing guard could
5.. be used by those churches affected. Councilmember Elstro also commented on the trucks, noting that he felt
5 they should be banned all the way from South E Street to South I Street. City Attorney Bob Bever said the
5: only reason that was not included was that he was trying to keep it confined, but, he added, that does not
5^ mean it cannot be added, because this is just a recommendation.
6(1
6 Councilmember Stamper questioned as to whether or not the trucks could be penalized if they traveled on
6. the roadway that specifically stated no trucks were allowed. Bever said they can be cited for violation of the
6, City's code and he said he would have some conversation with the Police Department about that, adding he
6.' will set up a meeting with Police Chief Bill Shake. President Dickman said the fine tuning on this will come
6' later, but for now,this resolution is merely a recommendation.
Common Council Minutes Cont'd
August 18, 1997
Page 2
1 Councilmember Hutton moved to approve Resolution No. 10 - 1997, second by Councilmember Allen aid
2 the motion was carried on a unanimous voice vote.
3
4 COMMUNICATIONS FROM THE MAYOR
5
6 Mayor Dennis Andrews stated that he had distributed to Councilmembers the most recent notes on tie
7 administration team meeting and a face sheet on a financial information packet concerning Police and F re
8 Pension information which would be covered in detail in a Committee of the Whole meeting. He said this is
9 correspondence to State Senator Allen Paul and State Representative Richard Bodiker to let them know it is
10 a problem. He stressed that any earned pension is guaranteed, but the question is, as those costs escalate,
11 by the year 2000, it will be 30 percent of our tax levy.
12
13 REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY
14
15 Included in the Council packets were the minutes of the meetings of July 17,24 and 31, 1997.
16
17 REPORTS FROM CITY DEPARTMENTS
18
19 City Controller Shelley Miller presented copies of the 1998 budget, explaining the procedure is similar to list
20 year. In addition, she said, are the Committee of the Whole meetings and the topics to be discussed. S e
21 said Councilmembers should be familiar with the document because it is similar to what was done last ye.r,
22 noting that the first section is introductory, followed by the budget mission, organizational charts and a beef
23 overview of the budget process. She said where it stands, the $500,000 is the amount the budget is un•er
24 the maximum levy which is the ability the City has to raise in property taxes. She added that it shows wh:re
25 each fund individually stands.
26
27 REPORTS FROM SPECIAL COMMITTEES
28
29 REPORTS FROM STANDING COMMITTEES
30
31 REPORTS FROM ORGANIZATIONS
32
33 MISCELLANEOUS BUSINESS
34
35 Chairperson Welch congratulated Duane Heeter and the other officers of the Fairview Neighborhood
36 Association on a succssful event held last Saturday afternoon, noting that more than 200 attended. He al.o
37 mentioned Billy Henderson and all his work in cooking hamburgers and hot dogs as well as Engine No. 6
38 from the Richmond Fire Department for being there and spraying down the kids for over an hour of
39 entertainment.
40
41 ORDINANCES
42
43 ORDINANCES ON FIRST READING
44
45 Councilmember Elstro moved to suspend the rules and read Ordinances No. 91, 93, 94 and 95- 1997 on
46 first reading by title only and Ordinance No. 92- 1997 in its entirety, second by Councilmember Wissel a.d
47 the motion was carried on a unanimous voice vote.
48
49 ORDINANCE NO.91 -1997
50
51 The Clerk read Ordinance No. 91 - 1997 - A SPECIAL ORDINANCE AMENDING THE ZONING MAP AT
52 235 NORTHWEST 7TH STREET
53
54 President Dickman said Ordinance No. 91 - 1997 will go to the Planning Commission.
55
56 ORDINANCE NO. 92-1997
57
58 The Clerk read Ordinance No. 89 - 1997- AN APPROPRIATION ORDINANCE AUTHORIZING THE CI
59 OF RICHMOND TO RECEIVE A DONATION
60
61 "WHEREAS, the City of Richmond, Indiana, has the option of accepting or rejecting donations for a speci is
62 purpose;and
63
64 "WHEREAS, the acceptance of a donation for a specific purpose constitutes the appropriation of su h
65 property for the intended purpose.
"NOW, THEREFORE, be it ordained by the Common Council of the City of Richmond, Indiana, that t e
following donations made during 1997 to the Street Tree Fund (Account Number 850-99-001-9949) .re
hereby accepted and gratefully acknowledged by the citizens of Richmond: May 4, 1997, $100; May ,8,
$10; May 31, $35; and August 1,$14."
403
Common Council Minutes Cont'd
Auytl,t 18. 1997
rage 3
1
2
3
4 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 92- 1997 to second reading
5 and read by title only, second by Councilmember Elstro and the motion was carried on a unanimous voice
6 vote.
7
8 The Clerk read Ordinance No. 92-1997 on second reading.
9
0 President Dickman declared Ordinance No. 92- 1997 on public hearing.There being no comments either for
1 or against the ordinance, Councilmember Elstro moved for engrossment, second by Councilmember Hutton
2 and the motion was carried on a unanimous voice vote.
3
4 Councilmember Elstro moved to suspend the rules and advance Ordinance No. 92 - 1997 to third and final
5 reading and read by title only, second by Councilmember Wissel and the motion was carried on a unanimous
6 voice vote.
7
8 The Clerk read Ordinance No. 92- 1997 on third reading.
9
.0 Ordinance No.92-1997 was adopted on the following call of the roll:
.1
.2 Ayes:Elstro, Lundy,Wissel, Hutton,Allen, Stamper,Welch, Parker and Dickman (9)
.3 Nays: None
.4
.5 ORDINANCE NO.93-1997
.6
.7 The Clerk read Ordinance No. 93 - 1997 - AN APPROPRIATION ORDINANCE AMENDING THE 1997
.8 BUDGET
.9
0 Bob Goodwin,director of Planning and also the president of the Board of Public Works and Safety, requested
1 that $850 be deleted from the Insurance account and added to the Overtime account in the Board of Works
2 account.Also,that$150 be deleted from the Insurance account and added to the Janitorial Supplies account.
3
4 Councilmember Welch moved to suspend the rules and advance Ordinance No. 93- 1997 to second reading
5 and read by title only, second by Councilmember Parker and the motion was carried on a unanimous voice
6 vote.
7
8 The Clerk read Ordinance No. 93-1997 on second reading.
9
0 President Dickman declared Ordinance No. 93- 1997 on public hearing.There being no comments either for
1 or against the ordinance, Councilmember Elstro moved for engrossment, second by Councilmember Allen
4�2 and the motion was carried on a unanimous voice vote.
tfr. Councilmember Allen moved to suspend the rules and advance Ordinance No. 93 - 1997 to third and final
reading and read by title only, second by Councilmember Welch and the motion was carried on a unanimous
4 voice vote.
47
The Clerk read Ordinance No. 93- 1997 on third reading.
0 Ordinance No.93-1997 was adopted on the following call of the roll:
1
Ayes:Elstro, Lundy,Wissel, Hutton,Allen, Stamper,Welch, Parker and Dickman (9)
Nays:None
5
5 ORDINANCE NO.94-1997
56
517 The Clerk read Ordinance No. 94 - 1997 - AN APPROPRIATION ORDINANCE FIXING THE ANNUAL
5p COMPENSATION OF ALL ELECTED CITY OFFICERS FOR 1998
I 59
60 President Dickman announced this would be held on second reading.
6
6 ORDINANCE NO.95-1997
6C
6- The Clerk read Ordinance No. 95 - 1997 AN APPROPRIATION ORDINANCE AMENDING THE 1997
6 BUDGET
City Engineer Bob Wiwi explained this ordinance deletes $500 from the Computer Services & Charge
account and $500 from the Contractual Printing account and adds $1,000 to the Copier Charges account in
the Department of Public Works and Engineering.
14 4
Common Council Minutes Cont'd
August 18, 1997
Page-4
1
2
3
4 Councilmember Welch moved to suspend the rules and advance Ordinance No. 95- 1997 to second read ng
5 and read by title only, second by Councilmember Allen and the motion was carried on a unanimous vo ce
6 vote.
7
8 President Dickman said Ordinance No. 95- 1997 was on public hearing.There being no comments either for
9 or against the ordinance, Councilmember Elstro moved for engrossment, second by Councilmember Al en
10 and the motion was carried on a unanimous voice vote.
11
12 Councilmember Elstro moved to suspend the rules and advance Ordinance No. 95 - 1997 to third and final
13 reading and read by title only, second by Councilmember Hutton and the motion was carried on a
14 unanimous voice vote.
15
16 The Clerk read Ordinance No.95-1997 on third reading.
17
18 Ordinance No. 95- 1997 was adopted on the following call of the roll:
19
20 Ayes: Elstro, Lundy,Wissel, Hutton,Allen, Stamper, Welch, Parker and Dickman (9)
21 Nays: None
22
23 ORDINANCES ON SECOND READING AND ENGROSSMENT
24
25 ORDINANCE NO.90-1997
26
27 The Clerk read Ordinance No. 90 - 1997 - AN APPROPRIATION ORDINANCE TO BE KNOWN AS Ti E
28 1998 SALARY ORDINANCE
29
30 President Dickman announced that this ordinance will come back on second reading at the next meeting.
31
32 ORDINANCE NO.85-1997
33
34 The Clerk read Ordinance No. 85 - 1997-A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL O' A
35 STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I C.
36 6-1.1-12.1
37
38 President Dickman declared Ordinance No.85- 1997 on public hearing.
39
40 Councilmember Stamper explained the ordinance is a tax abatement request made by FRR Developm-nt
41 Co.on a 21,000 square-foot office facility they are proposing to build for the Stride Rite Corp.
42
43 Jeff Hanna, representing FRR Development Co., said they are proposing to build a 21,000 square-foot
44 office building for Stride Ride Corp. which employs approximately 132 people. He said it would mean =n
45 increase of 27 jobs at the new facility which could possibly increase to 37 with the addition of a new line of
46 women's shoes. He said the current salaries are $2.2 million and the new salaries could be well over anot er
47 $600,000 to $700,000. He stated that the average job at Stride Rite, not including a lot of senior
48 management that has been coming along, is between $8 for entry level, up to $12.50 for people Wiith
49 experience in their line of work. Hanna said the proposed site for the project is in the revitalization ar a
50 which is currently bare ground.
51
52 Hanna said from 1985 to 1994, permits in new business went from $8 million to $28.4 new construction in
53 1994, adding that approximately 100 white collar jobs were lost this year. He said Stant, Dana, Alcoa a d
54 Color Box are all losing good jobs because of corporation changes. He said he is fearful the loss of
55 tremendous upper income jobs will continue. He said tax abatement is an investment in the future of
56 Richmond and will stay with us for a long time with some of these commitments being made. He also no d
57 that Stride Rite Corp. had tried unsuccessfully to find some facility downtown to satisfy its needs.
58
59 Councilmember Welch said Hanna had said rather emphatically that Stride Rite wanted to leave its pres nt
60 office and its downtown location, implying that he had that decision in writing. Hanna responded that he h d
61 it verbally from the manager of the division here. Hanna said it was explained to him that the company is
62 doing business on four different levels of the building and because of the changes they find they can of
63 conduct business effectively. Hanna said it is a fact that the company has to get out of the facility it is now n.
64
65 In answer to a question posed by Councilmember Welch, Hanna said this is not a done deal but merel a
contingency process prior to an agreement through which the company wants to know whether or not they
are going to have an abatement prior to making their final decision. He said he hopes he is successful in
keeping this company in Richmond.
!40:5
Common Council Minutes Cont'd
August 18. 1997
P ge 5
1 Councilmember Stamper asked if a tax abatement is granted and Stride Rite did not occupy the buiilding,
2 would Hanna have to come back before Council before he could put another company in there. Bever said
3 what Council is approving is the statement of benefits would be at that location for that office building and if
4 something changed, it could be somebody else, a different tenant, so it is not locked in to that. However, he
5 said, at that point it would have to be looked at and if enough of the information changed it could be enough
6 that the prior statement of benefits would be inapplicable to a new tenant.
7
8 Councilmember Lundy asked if he had said the entry level is $8 and goes to $12.50 and Hanna answered
9 that is true, for the partners, people doing the inputting. Hanna said the current property selected for the
0 building has a semi-annual tax bill of $400 a year, stating that after talking with Mike Statzer, Wayne
1 Township assessor, and giving him the proposed cost of the building, he said this tax could easily be
2 $30,000 a year, adding that he cannot see the downside of this and asked that someone point it out to him if
3 there is one.
4
5 Councilmember Wissel voiced his concerns, stating that this tax abatement is different than the ones voted
6 on in the past. He said he understands this is a part of a bid situation that Hanna is in and what Council is
7 doing is giving him an opportunity to reduce his cost in bidding against other parties. Hanna answered that it
8 does not reduce his cost as a pass through to the company. Councilmember Wissel said he does see it as
9 causing that, making decisions between firms within the City competing against one another. He added that
-'0 when tax abatements are given for manufacturing the City is competing against other communities.
.1
:2 Hanna mentioned Stant Manufacturing, Tourism Bureau and Enterprise Rent A Car which were given tax
:3 abatements and they are all virtually offices. Councilmember Elstro commented that he was against giving
.4 this tax abatement. He pointed out that he is a realtor, as is Hanna, and fighting to get the property taxes
:5 down, adding that tax abatement does not do that. Hanna responded that it is a totally different product
.6 because it is an investment and is always on the tax roles. Councilmember Elstro, speaking to the base pay
7 of Stride Rite as stated by Hanna, said if you figure what they are paying now, it does not come near to the
:8 figure given by Hanna. In response, Hanna said these figures he gave here tonight are coming from the
9 manager of Stride Rite.
0
1 Councilmember Welch said Hanna talked about the incresed tax that would be collected on the bare ground
2 in question,then asked what happens to the building downtown. Hanna responded that the building will stay
3 on the tax roles as is, adding that there is no change because it is vacant or not. He said there is no
4 downside or loss to that part of it because somebody else will pick that up. Councilmember Welch said the
5 City is now spending several million dollars to revitalize downtown to attract people and now he is proposing
6 to move people out of the downtown which they frequent every day. He said he does not see the validity of
7 making such a move.
8
9 Hanna said the company has searched for three acres to retain its downtown employment and been
0 unsuccessful. He added that if someone else has an idea, he would like to hear it. Councilmember Welch
1 stated that Council only has Hanna's word that Stride Rite is going to move out of downtown. Hanna then
2 asked Councilmember Welch if he had talked with Ed Samuels, the manager, and Councilmember Welch
3 said he had not. Councilmember Welch commented that he would like to know what Stride Rite would like
4 before he votes on this ordinance one way or another.
.5
6 Councilmember Stamper said there is no question as to whether or not this puts someone at a competitive
7 advantage, adding that he hates to see this ordinance held up because of competitive disadvantage. He said
8 he does not want Stride Rite to leave town because they are caught in some local town politics. He added
9 that these people have other communities they can go to.
-0
1 Councilmember Wissel commented that this is a bad situation because he can see 20 people bidding on this
`2 and Council could have 20 tax abatement requests. He added that he felt Council is out of its element, and
'3 he does not want Stride Rite to get the wrong idea, but he thinks this is not the place for Council to be.
-4 Councilmember Welch said he agreed, stating that the application requests a 10-year tax abatement and he
-5 sees nothing in the ordinance that mentions Stride Rite. Hanna said they requested they not be named with
-6 this application. Councilmember Welch responded that at this point the abatement, if it is granted, will be
7 granted to FRR and not Stride Rite, and all Hanna is asking is for an abatement on an office building,one he
'8 hopes he will be able to get Stride Rite to sign a lease for,but there is competition.
-9
:0 Hanna said this is the fourth tax abatement he has written and he has had three successful ones and
:1 accepted through FRR Corp. so this is not anything unusual. He added that it falls within the revitalization
:2 area and this is not an exception to the ordinance.
:3
s4 Councilmember Lundy said she knows people who work at Stride Rite and they do not make $8 an hour at
:5 the entry level, adding that the numbers do not add up. President Dickman commented that if the manager
let those numbers out to be made public then those employees will have questions of him tomorrow.
Common Council Minutes Cont'd
August-1-871-997
Rage-6
1 In answer to a question by President Dickman about how many square feet the company has currently,
2 Hanna said there are 17,000 square feet on four different floors and this does not include the common
3 areas.
4
5 Bever said, in reading through the ordinance, Council is making a finding, and if these numbers are corr ing
6 from Stride Rite,the findings will have to be there with whoever else would go into that for this stateme t of
7 benefits to have any support.
8
9 Councilmember Hutton asked if anyone is checking yearly on these figures for tax abatements :nd
10 Councilmember Stamper answered that he is trying to keep up yearly with what is going on. He said h- is
11 encouraged as he goes out and talks with the businesses getting tax abatements, adding that better t an
12 half of them are adding a lot of people,far in excess of what they told Council they were going to add w en
13 they requested their tax abatements.
14
15 There being no further comments in favor of the ordinance and none against, Councilmember Elstro mo ed
16 for engrossment,second by Councilmember Allen.
17
18 However, the vote was postponed with the recognition of David Wells, a professional economist ho
19 stepped forward to speak against the ordinance.
20
21 Wells said he thinks this issue of following through on tax abatements is very important even if it me.ns
22 Council has to hire a full time person to make sure that happens. He said if it is a 10-year tax abatement ? at
23 requires the business to be in Richmond that 10 years and if they leave early they should lose the w ole
24 thing. He added that there has to be some call backs. The third issue, Wells said, is whether or net a
25 company really needs a subsidy to make this move or not because you are basically giving up tax mo ey,
26 essentially the tax expenditure, and in many cases that is not necessary.
27
28 President Dickman stated that a motion and a second had been heard for engrossment and asked fir a
29 vote.The motion was carried on a unanimous voice vote.
30
31 Councilmember Allen moved to suspend the rules and advance Ordinance No. 85 - 1997 to third and f'nal
32 reading and read by title only, second by Councilmember Hutton and the motion was carried o a
33 unanimous voice vote.
34
35 The Clerk read Ordinance No.85-1997 on third reading.
36
37 Ordinance No. 85- 1997 was defeated on the following roll call vote:
38
39 Ayes:Allen,Stamper, Parker and Dickman (4)
40 Nays: Elstro, Lundy, Wissel, Hutton and Welch (5)
41
42 Councilmember Stamper stated that he hopes nobody from Stride Rite takes this to mean Council does of
43 value the 132 jobs as an investment in the community, adding that he hopes the company continues to al ow
44 one of the local firms to do a bid and stay here.
45
46 ORDINANCE NO.86-1997
47
48 The Clerk read Ordinance No. 86- 1997-A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A
49 STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER C.
50 6-1.1-12.1
51
52 Councilmember Stamper explained this tax abatement request is made by Soma Lodging Corp. whic is
53 proposing a facility for the Hampton Inn, creating 18 to 20 new jobs in the $1.6 million new construct on
54 which would have 66 rooms and an indoor pool. The facility would be built off West Eaton Pike where he
55 current Villa Motel is which is a three-acre lot. He said he conferred with both Joe Kaiser,the Wayne Cou ty
56 Auditor, and Mike Statzger, the Wayne Township Assessor, took the plans to them to get an estima ed
57 assessed value and an idea of what the taxes and abatement would be. He said after four years the ity
58 would start to make extra money off of this and in 10 years, and done, make an additional $161,000 in ax
59 revenues. He said that would be just on the property tax alone and not include any of the$45,000 a year nn
60 keeper's tax and money imported from outside of the community. He said that money could be as much as
61 $600,000 of additional tax revenue into the Wayne County area over the next 10 years and additional sire.m
62 of$100,000 every year after that.
63
64 President Dickman declared Ordinance No. 86- 1997 on public hearing.
65
407
Common Council Minutes Cont'd
tg97
-Pge7
1 Speaking in favor of the ordinance was Gary Patel of 530 West Eaton Pike, who said he had been in the
2 Richmond community for nine years, starting with the Spirit of 76 motel and he worked into Days Inn. He said
3 he owns a couple of properties and a house in Richmond and contributes $53,000 property tax for real
4 estate. He said the Hampton Inn would create about 18 to 20 jobs which includes manager and sales people
5 with a wage range from $5.50 to $8 per house, averaging out at about$6.75 per hour. He said the Hampton
6 Inn is a medium to luxury type motel with a consistent reputation and people staying there would spend
7 money in the community.
8
9 He said the business will spend money in the community, buying supplies and goods and paying Indiana
10 sales tax and will still pay on personal property and on the land. Patel said he is counting on this to stay in
11 the community, stating that the east side of Richmond is growing. He said in checking with other towns such
12 as New Castle, he has learned they are contructing two new motels and both have abatements from Henry
13 County. He said Winchester and Piqua, Ohio, will also grant abatements. Patel said if he doesn't get this tax
14 abatement, he will have to think twice about staying and start to think about other plans. He said he would be
15 happy to answer questions.
16
17 Councilmember Welch asked Patel if the property is currently the Villa Motel and if that three acres is taxed
18 as one parcel with the motel. Patel said it is. Councilmember Welch then asked if those taxes are$6,375 per
19 year and Patel answered that is correct. Patel said his intention is to demolish the Villa Motel and build the
20 Hampton Inn on that land and he is also in negotiations with another facility, may a restaurant, but there has
21 been no agreement reached. However, he said, if they do come, they will take about a $1.2 million facility
22 which will not come to Council for a tax abatement but will bring additional jobs. He added that there is a
23 strong possibility of that happening.
24
5 Councilmember Welch said that under statute, the legislative body has a choice of giving 3, 6 or 10 year tax
'6 abatements. He asked Patel if he felt he had to have a 10-year tax abatement and Patel answered in the
'7 affirmative, adding that this is the only way he can do this.
,8
'9 Mary Walker, director of the Wayne County Convention &Tourism Bureau, spoke to Council about the travel
0 and tourism industry as a whole, stating the economic benefits to the community and the county. She said
1 she has been with the Bureau since 1981 and has seen much growth within the past five to seven years.
'2 She stated that nationally in the U.S.this industry in 1996 generated $467 billion in expenditures, 6.6 million
:3 jobs directly related to the industry and $116 billion in payroll. Walker said 684,000 of those jobs she
:4 mentioned are executive position and jobs are increasing because of the competitiveness.
•5
.6 Walker said the travel and tourism industry is the third largest in the state, noting that it is a service industry
7 and proved to be great entry level jobs for the youth with great opportunities for advancement. She said it is
8 a great field for women and single parents because of the flexible work hours. She read a letter from Douglas
9 Peters, CEO of the Richmond/Wayne County Chamber of Commerce, recommending Council consider
0 granting the request because of the impact on the tourism industry.
1
2 Dana Weigle of McDonald's Restaurants, referred to an independent study done in 1983 by the Chamber,
•3 revealing that Richmond and Wayne County's growth was going to be in the service industry. He said he felt
4 this request truly deserves Council's consideration because it means many jobs and many dollars.
•5
•6 Davis Wells, economist, pointing out some of the issues which don't always come up about tax abatements,
•7 said the $45,000 innkeeper's tax which the Hampton Inn will bring in will be lower for what the City will get
-8 out of it because they will be competing,so the City will lose some business.
g
'0 He said based on what Patel said, people will drive an extra 20 miles, roughly from Eaton, Ohio, to
'1 Cambridge City and there are other motel options in that area. He said if other motels have a loss,there will
'2 be slower growth or they will cut back on the jobs. He said those reasons are generally why you don't offer
.3 tax abatements to retail operations or businesses that compete against each other in the same locality.
.4
'5 Wells said the second issue, is, whether or not this subsidy is necessary to obtain economic benefits. He
'6 said in that case, Patel might decide to locate in Ohio and the Ohio side is much less attractive and not as
'7 enticing a location.
-8
•9 He said the third issue is, going back to the job issue, between $6 and $8 per hour, not to mention health
:0 benefits. He said in comparison with McDonald's, it is a little bit questionable because they hire the youth and
:1 motels tend to employ older people. He said he would recommend Council not approve the request.
:2
3 Hearing no further comments for or against the ordinance, Councilmember Allen moved for engrossment,
:4 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
:5
4O:8
Common Council Minutes Cont'd
Aug ust/1997
-Page8
1 Councilmember Hutton moved to suspend the rules and advance Ordinance No. 86 - 1997 to third and f nal
2 reading and read by title only, second by Councilmember Parker and the motion was carried on a
3 unanimous voice vote.
4
5 The Clerk read Ordinance No.86-1997 on third reading.
6
7 Councilmember Lundy said in 1996 Council made a mistake when it decided to look at the tax abatements
8 on a case by case basis. Her reasoning for that, she said, was when people come to Council and go thro gh
9 the process it makes it appear that Council is against a particular company or person. She added that he
10 feels Council has to make a decision on this.
11
12 Councilmember Wissel said City Attorney Bob Bever sent all the Councilmembers a copy of the law hat
13 dealt with the abatements and what types of businesses are not eligible. He said 10C is "other retail"an. he
14 looked it up on the Internet under Indiana Code to see if he could find a definition and found it und:r a
15 different article. He said it stated that "a person is a retail merchant making a retail transaction when he
16 person rents or furnishes rooms, lodging or other accommodations." He said he is not sure this quali ies
17 under the broad description that the tax code provides. He added that he is concerned with the points W-Ils
18 brought up. He said he has doubts that Council should give any parties unfair advantages over peopl- in
19 their own industry.
20
21 Councilmember Hutton said the she feels hotels and motels are the same as manufacturing, stating t at
22 several years ago when the Hampton Inn was coming to Richmond she voted against it. The reason, he
23 said, was because it was located next to the off ramp from 1-70. She said she will be voting for this, si ce
24 she feels it is a safe place for it.
25
26 Councilmember Welch said in 1996 when Council talked about tax abatements in the Committee of he
27 Whole meetings about what companies to consider for tax abatements, they said it should be addres ed
28 case by case. He said the statutes as they read gives tax abatements three, six and 10 years. He s id
29 Council has gone along with the industry and are looking at nothing more than a real estate improvem nt.
30 Bringing jobs lower paying than manufacturing he has strong reservations that we continue this ax
31 abatement under 10-year periods and judge each case individually. He added that he feels Hampton In is
32 not falling into the true intent of the tax abatement.
33
34 Councilmember Stamper said he is using Bever's argument, when we argued this on behalf of the Holi ay
35 Inn. He said it is in the statute regarding tax abatements if they wanted to specifically exclude since they id
36 not exclude certain industries, they would have excluded hotels by saying other retail and then not defin ng
37 other retail. He said you can't go anywhere else in the law book and assume other retail somehwere e'se
38 means other retail in this instance.
39
40 Bever said he appreciated Councilmember Wissel looking up the article on the Internet, but one thing we do
41 have the benefit of is that the Indiana State Board of Tax Commissioners have come out with a definitio of
42 a retail facility which is "a facility at which goods or items are sold to the ultimate consumer for he
43 consumer's use or consumption." He said based on that, it is his opinion, that that exclusion does of
44 absolutely prohibit this Council from giving a tax abatement to an office building or to a hotel. He said tha is
45 not to say that as a matter of policy Council wants to do that, adding that it is policy ,not legal advice from he
46 City Attorney. He said he believes that based on last year's regulation, it is not specifically excluded.
47
48 Ayes: Hutton,Allen, Stamper and Dickman (4)
49 Nays: Elstro, Lundy,Wissel,Welch and Parker(5)
50
51 ORDINANCES ON THIRD READING
52
53 There were none.
54
55 UNFINISHED BUSINESS
56
57 ADJOURNMENT
58
59 There being no further business,on a motion duly made, seconded and passed the meeting was adjourne..
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65
Robert Dickman, President
ATTEST:
• Norma Schroeder, Clerk