HomeMy Public PortalAbout10-03-1994 52.E
PROCEEDINGS-OF-mE-eoMMON-G-OUNEIL-QF-FH C
IT-TO RIOHIVIONDNDFANKRWONEYA- ,OC-TOBER3;1994
The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday,October
3, 1994, in the Council Chambers in said City. President Larry Parker presided with the following
Councilmembers present: Howard "Jack" Elstro, Etta Lundy, Jane Brookbank, Mary Ellen Donat, Don
McBride, Gene Allen, Bob Dickman and Sally Hutton.The following business was had to-wit:
0 PLEDGE OF ALLEGIANCE
17
8 PRAYER BY COUNCILMEMBER ALLEN
1 ROLL CALL
1
1 Nine present.
14 APPROVAL OF MINUTES OFSEPTEMBER 19.1994
15
10 Councilmember McBride moved to approve the minutes of September 19, 1994, second by Councilmember
17 Allen and the motion was carried on a unanimous voice vote.
1:
1• COMMUNICATIONS FROM THE MAYOR
20
2 PRESENTATIONS OF REMONSTRANCES. PETITIONS. MEMORIALS OR PUBLIC COMMENTS
2
2 Scott Thomas, 860 Liberty Avenue, told Councilmembers he had been fighting a flooding problem at his
2, residence for the past 11 years and had tried contacting different agencies without receiving any help with
2' his problem. Councilmember Elstro and President Parker said they had seen the area and admitted that
2. Thomas had a problem. Councilmember Elstro said possibly a flood wall could be built and President Parker
2 said he would get the City Engineer Bob Wiwi and have him get back with Thomas.
2:
2• REPORT FROM CITY DEPARTMENTS
3i
3 REPORT FROM OTHER OFFICES
3-
3 REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY
3,
3- Minutes of the September 15 and 22, 1994 meetings were in the Council packets.
3:
3 Councilmember Elstro requested that the Department of Law direct the inspectors to get back with whoever
3 turned the complaint in after the they had acted upon it.
3
4 REPORTS FROM SPECIAL COMMITTEES
41
4 REPORTS FROM STANDING COMMITTEES OR OTHER COUNCIL COMMITTEES
4
4 Councilmember Brookbank said she wanted to give credit to the Street Tree Commission for planting 80
4 trees Saturday morning in her neighborhood.She said the homeowners paid for the trees but volunteers like
4 T.L. Bosell, who works for the City, volunteered his time to work in that four-block area. She also expressed
4 her appreciation to the Fire Department for watering those street trees.
4E
4u ORDINANCES
5
51 ORDINANCES ON FIRST READING
5
5 Councilmember Brookbank moved to suspend the rules and read on first reading by title only Ordinance No.
5 71, 76, 77 and 78 - 1994, second by Councilmember McBride and the motion was carried on a unanimous
5 voice vote.
5
5 ORDINANCE NO.71 -1994
5
59 The Clerk read Ordinance No. 71 -1994-A GENERAL ORDINANCE AMENDING SECTION 32.50 OF THE
6 RICHMOND CODE
61
6 President Parker explained the ordinance and read it, stating that it was self-explanatory, noting that with the
6 adoption of the 1995 City budget the understanding was that Carol Brady would continue to serve as Human
6 Rights Commission director. He added that the State Statute requires residency within the city of various city
6 employees and all elected office holders. Brady, he said, lives in Spring Grove.
522
Common Council Minutes Cont'd
October 3, 1994
Page-2
1
2 Councilmember Hutton asked for an explanation of the Indiana Code and asked how Council can charge
3 the State Statute. City Attorney Thomas Milligan said it can not be done and asked Council to check the
4 fourth "Whereas" in the ordinance. He noted that it was an error and said it should be stricken from la he
5 ordinance. Councilmember Hutton so moved, second by Councilmember Allen and the motion was carred
6 on a unanimous voice vote.
7
8 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 71 - 1994 to seco d
9 reading and read by title only, second by Councilmember McBride and the motion was carried on a
10 unanimous voice vote.
11
12 The Clerk read Ordinance No. 71 - 1994 on second reading.
13
14 President Parker announced Ordinance No. 71 - 1994 on public hearing. There being no comments eit er
15 for or against, Councilmember McBride moved for engrossment, second by Councilmember Hutton and t e
16 motion was carried on a unanimous voice vote.
17
18 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 71 - 1994 to third readi g
19 and read by title only, second by Councilmember McBride and the motion was carried on a unanimous voi e
20 vote.
21
22 The Clerk read Ordinance No. 71 - 1994 on third reading.
23
24 Councilmember Elstro said it was his feeling that those who work for the City should live in the City, althou h
25 he knows the police and fire don't have to, he thinks everybody else should. Councilmember McBride ask d
26 about that exception and Councilmember Elstro said there is a state law that says they can live withi a
27 15-mile radius.
28
29 Ordinance No. 71 - 1994 was adopted on the following call of the roll.
30
31 Ayes:Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(8)
32 Nays:Elstro (1)
33
34 ORDINANCE NO.76-1994
35
36 The Clerk read Ordinance No. 76 - 1994- A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL F
37 STATEMENTS OF BENEFITS FOR PROPERTY OWNERS APPLYING FOR DEDUCTIONS UNDER I. .
38 6-1.1-12.1
39
40 President Parker explained the ordinance,stating that Imperial Products and Mosey Mfg. had applied for t
41 abatement under new manufacturing equipment for a period of 10 years. Councilmember Donat coment d
42 that the letter sent by the Department of Law asking representatives of each to attend tonight were sent ut
43 late, adding that it was hard for them to comply on such late notice. President Parker said 7 additional jo s
44 will be created at Mosey Mfg. by putting this equipment in place.
45
46 Councilmember Allen moved to suspend the rules and advance Ordinance No. 76 - 1994 to second reading
47 and read by title only, second by Councilmember McBride and the motion was carried on a unanimous voice
48 vote.
49
50 The Clerk read Ordinance No. 76-1994 on second reading.
51
52 President Parker announced Ordinance No. 76 - 1994 on public hearing. There being no comments eithpr
53 for or against, Councilmember McBride moved for engrossment, second by Councilmember Hutton aid
54 motion was carried on a unanimous voice vote.
55
56 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 76 - 1994 to third and final
57 reading and read by title only, second by Councilmember McBride and the motion was carried on a
58 unanimous voice vote.
59
60 The Clerk read Ordinance No. 76- 1994 on third and final reading.
61
62 Ordinance No. 76- 1994 was adopted on the following call of the roll:
63
64 Ayes:Elstro, Lundy, Brookbank, Donat, McBride, Allen, Dickman, Hutton and Parker(9)
65 Nays:None
523
Common Council Minutes Cont'd
Octobe 199.1
Page-3
1 ORDINANCE NO.77-1994
The Clerk read Ordinance No. 77- 1994 - A SPECIAL ORDINANCE AUTHORIZING THE SUBMITTAL OF
THE HOUSING DEVELOPMENT FUND (HDF) APPLICATION TO THE INDIANA HOUSING FINANCE
AUTHORITY AND ADDRESSING RELATED MATTERS
6
7 President Parker asked Robert Goodwin, director of planning, to explain the ordinance. He said the Council
19 funding.
can authorize the Mayor to apply for a planning grant of $50,000 to which woould be added $5,000 of local
1 funding. He said $4,000 of that match would come from financial institutions and the additional $1,000 from
1 the Housing Authority. He added that the grant deadline is Friday and it is completed for the most part. He
11 stated the purpose of the grant is to study the Nicholson School for the architecture engineering problems
1 that may be presented in rebuilding that property and make it useful for housing.
1
1 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 77- 1994 to second reading,
1 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
16
17 The Clerk read Ordinance No. 77- 1994 on second reading.
18
19 President Parker announced Ordinance No.77- 1994 on public hearing.There being no comments either for
20 or against, Councilmember Dickman moved for engrossment, second by Councilmember McBride and the
2 motion was carried on a unanimous voice vote.
2
2 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 77 - 1994 to third
2 reading and read by title only, second by Councilmember McBride and the motion was carried on a
2 unanimous voice vote.
2
2� The Clerk read Ordinance No. 77- 1994 on third reading.
2
2 Councilmember Lundy commented that since Nicholson School is in her district she is pleased to see the city
3 and other interested people trying to do something to improve the area.
33 Ordinance No.77-1994 was adopted on the following call of the roll:
3
3, Ayes: Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
3. Nays:None
3.
3 ORDINANCE NO. 78-1994
3:
3: The Clerk read Ordinance No. 78 - 1994 -A SPECIAL ORDINANCE AUTHORIZING THE SUBMITTAL OF
4r THE COMMUNITY FOCUS FUND (CFF) APPLICATION TO THE INDIANA DEPARTMENT OF
4 COMMERCE AND ADDRESSING RELATED MATTERS
4,
4: President Parker asked Goodwin to explain the ordinance. He said the grant is for the removal of the Medical
4, Arts structure on South 8th Street between South A and Promenade. He said the local funds for this project
4 come from a total of$108,334 and $25,000 of that was received from the County when the City took over the
4. ownership of the Medical Arts Building.
4
4: The additional $25,000, Goodwin said, is presently in the budget for the renovation of the Promenade for
41 removal of spot blight and slum conditions within the redevelopment area so the City can use that $25,000
5. earmarked for the Promenade as a match for this grant. He said $58,334 is from the E.D.I.T. funds and the
51 state is being asked for$250,000. Goodwin said if the City is successful in getting the grant, it would expect
5P the grant to be available to actually start expenditure at the first of the year.
4
54 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 78 - 1994 to second
5 reading and read by title only, second by Councilmember Allen and the motion was carried on a unanimous
5 voice vote.
5,
5 The Clerk read Ordinance No. 78-1994 on second reading.
6 President Parker announced Ordinance No. 78 - 1994 on public hearing. There being no comments either
6I for or against, Councilmember Parker moved for engrossment, second by Councilmember Hutton and the
6 motion was carried on a unanimous voice vote.
6
6j Councilmember Allen moved to suspend the rules and advance Ordinance No. 78 - 1994 to third and final
65 reading and read by title only, second by Councilmember Brookbank and the motion was carried on a
unanimous voice vote.
524
Common Council Minutes Cont'd
October 3, 1994
Page 4
1 The Clerk read Ordinance No.78-1994 on third reading.
2
3 Ordinance No. 78- 1994 was adopted on the following call of the roll:
4
5 Ayes: Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
6 Nays:None
7
8 ORDINANCES ON SECOND READING
9
10 ORDINANCE NO.69-1994
11
12 The Clerk read Ordinance No. 69 - 1994 - A SPECIAL ORDINANCE AMENDING THE ZONING MAP
13. 1227 AND 1229 NORTH E STREET
14
15 President Parker announced the ordinance on public hearing. Councilmember Brookbank said the Planni g
16 Commission unanimously approved this ordinance. President Parker said the request is to change t e
17 zoning designation from C-4 business to accommodate the continued use as a used car lot.
18
19 Speaking in favor of the ordinance was Robert Delaney, the attorney representing Donald and Nita Burk-,
20 owners of the property. He noted that owners of the properties around 1227 and 1229 North E Street h-d
21 been contacted and had no objections. Councilmember Elstro commented that the property already loo s
22 100 percent better.
23
24 Hearing no further comments for and none against the ordinance, Councilmember McBride moved for
25 engrossment, second by Councilmember Brookbank and the motion was carried on a unanimous voice vot-.
26
27 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 69 - 1994 to third and final
28 reading and read by title only, second by Councilmember McBride and the motion was carried on a
29 unanimous voice vote.
30
31 The Clerk read Ordinance No.69-1994 on third reading.
32
33 Ordinance No. 69- 1994 was adopted on the following call of the roll:
34
35 Ayes: Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
36 Nays:None
37
38 ORDINANCE NO.72-1994
39
40 The Clerk read Ordinance No. 72 - 1994 - A SPECIAL ORDINANCE AMENDING THE ZONING MAP
41 1809 CHESTER BOULEVARD
42
43 President Parker announced that Ordinance No. 72 - 1994 was on public hearing. Councilmemb r
44 Brookbank said the Planning Commission had unanimously approved the ordinance.
45
46 Speaking in favor of Ordinance No. 72 - 1994 was Attorney Robert L. O'Maley who said his statemen s
47 related also to Ordinance No. 73 - 1994 which would come to Council immediately following this one. e
48 said the parcel of real estate is on Chester Boulevard and the two petitions of Marvin and Esther Manis t
49 1809 Chester Boulevard and Irvin and Mary Conder at 1801 Chester Boulevard are adjacent and ha e
50 contiguous frontage of 166 feet on Chester Boulevard and it is 350 feet deep. To put the location n
51 perspective O'Maley said the real estate immediately south is Chester Heights Apartments. He said t e
52 owners are requesting the zoning be made R-3, which is an extension of the R-3 zoning to the nod .
53 O'Maley said both parcels are residential and the intent if it is zoned R-3 is for several uses. One, he said, s
54 an administrative .and business office not dependent on over-the-counter sales for the operation of t e
55 business. In this instance, he said,the intent is to establish an insurance agency at 1801 Chester Boulevar .
56 He said that structure will not be altered substantially from the exterior but will be internally. Both parcel ,
57 O'Maley said,are being included in this as a logical extension of the R-3 zoning.
58
59 President Parker declared Ordinance No. 72 - 1994 on public hearing. There being no further comments n
60 favor and none against, Councilmember McBride moved for engrossment, second by Councilmember All n
61 and the motion was carried on a unanimous voice vote.
62
63 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 72 - 1994 to third and
64 final reading and read by title only, second by Councilmember McBride and the motion was carried on a
65 unanimous voice vote.
52.5
Common Council Minutes Cont'd
October 3, 1994
Page-5
1 The Clerk read Ordinance No.72-1994 on third reading.
2
3 Ayes:Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
4 Nays:None
5
6 ORDINANCE NO.73-1994
7
8 The Clerk read Ordinance No. 73 - 1994 - (SECOND READING AMENDMENT) A SPECIAL ORDINANCE
9 AMENDING THE ZONING MAP AT 1801 CHESTER BOULEVARD
10
11 Councilmember Hutton moved to amend Ordinance No. 73 - 1994, second by Councilmember Allen and the
12 motion was carried on a unanimous voice vote.
13
14 Councilmember Brookbank reported that the Planning Commission approved the ordinance but it carried
15 stipulations on site drainage and landscaping.
16
17 President Parker declared the amended Ordinance No. 73- 1994 on public hearing. Speaking in favor of the
18 ordinance was O'Maley who noted that his previous remarks were applicable to this ordinance. There being
19 no further comments in favor and none against, Councilmember Elstro moved for engrossment, second by
20 Councilmember Hutton and the motion was carried on a unanimous voice vote.
21
22 Councilmember Elstro moved to suspend the rules and advance Ordinance No. 73 - 1994 to third and final
23 reading and read by title only, second by Councilmember Lundy and the motion was carried on a unanimous
24 voice vote.
25
26 The Clerk read Ordinance No. 73-1994 on third reading.
27
28 Ordinance No.73-1994 was adopted on the following call of the roll:
29
30 Ayes: Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
31 Nays: None
32
33 ORDINANCE NO.74-1994
34
35 The Clerk read Ordinance No. 74 - 1994 - A GENERAL ORDINANCE ADDING CHAPTER 158 TO THE
36 RICHMOND CODE IN ORDER TO PROMOTE HISTORIC PRESERVATION AND PROTECTION
37
38 President Parker declared Ordinance No. 74- 1994 on public hearing. He asked those speaking in favor or
39 against the ordinance to limit their comments to 5 to 7 minutes.
40
41 Matthew Stegall, 326 North 10th, spoke as president of the Starr Neighborhood Association giving some
42 background on the area. He said it all started as a neighborhood crime watch but residents found their
43 needs went farther. He noted that the group has a 501-C3 not-for-profit corporation rating which is quite an
44 accomplishment considering what you have to go through to get the status. He noted that their goal is to
45 create a neighborhood environment that is something to be proud of, where you can feel safe and make a
46 lifetime investment.
47
48 Stegall said they are proposing the ordinance because they need Council's support and it is important that
49 the City embrace this idea of historic preservation as a planning tool for community development. He stated
50 that it is no threat to private property ownership, not adding more beauracracy to City government, and not
51 restricting people so they cannot do proper maintenance and rehabilitation to their properties. He said those
52 are arguments against this ordinance and are all falacies. He said the Fort Wayne ordinance had been used
53 as a model for this ordinance.
54
55 Speaking in favor of the ordinance was Andrew Cecere of King's Row,former City Attorney, who noted that
56 Stegall had made his plea with sincerity and had recruited him to review the ordinance and speak about it
57 briefly. He said the ordinance provides an instrumentality which enables the citizens of the community to
58 participate or not in the preservation of the historic district. He said this ordinance, as it is written, does not
59 set out any historic districts. He explained the procedures which would be necessary to form a district if the
60 ordinance is adopted.
61
62 Don Orb introduced himself as a resident of Fort Wayne and administrator of the Historic Preservation
63 Review Board and also the preservation planner for the city of Fort Wayne. He explained that he was here
64 because this ordinance is his ordinance that he has lived with for eight years. He said this all started in Fort
65 Wayne in the mid 1970s and this ordinance was rewritten in 1984 to comply with updated state legislation.
•
526
Common Council Minutes Cont'd
Qctober_3;L994
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•
1 He said what the ordinance allows is for monitoring changes that will inevitably take place. He said they ha e
2 had new construction and even demolition but this ordinance allows people a protection on their investmen .
3
4 Another Fort Wayne resident stated that he had become the owner of a Queen Ann house which had stood
5 empty for 10 years. He said he sold his car for a down payment on the house and lived in the house for thr-e
6 years. He said when he thinks of Richmond he thinks of the old houses.
7
8 Fred Holycross, 401 South 14th Street, director of Historic Landmark Foundation of Indiana Eastern Region
9 office which is the Huddleston Farm House and Museum in Western Wayne County, said this ordinance is
10 nothing new or extraordinary. He said Indiana has had a state law since 1977 allowing communities to en-ct
11 this type of legislation and 29 communities have chosen to do so. He said this is a nationwide program of
12 financial and technical assistance to help preserve historic properties of importance in the culture of local
13 neighborhoods and communities all around the country. He explained that this ordinance simply puts on t e
14 books a mechanism to get a historic district if you want it and it may lay on the books forever and never •e
15 used if it isn't wanted.
16
17 Byron Klute of 323 South 19th Street said the neighborhood association whose president is Stegall spent
18 hours and hours to get this ordinance thrashed out, enlisting people from Fort Wayne. He commend-d
19 Stegall for his effort and hard work and asked that the ordinance be given a chance.
20
21 Roy Werking, 1707 Chester Boulevard, said he has given his own personal backing to this ordinan e
22 because he thinks the City is rich in historic and architecturally worthy buildings in various areas of the Ci y.
23 He added that this ordinance provides a great tool for permitting the orderly preservation and restoration of
24 this rich heritage and for maintaining the beauty of the stately buildings.
25
26 Hazel Cox, representing the Neighborhood Services Clearinghouse, said she is a resident of the Elizabeth
27 Starr Neighborhood which is backing this ordinance. She said her Board supported it and believes it is
28 essential for neighborhoods to have goals to protect their vital assets. She said her Board is satisfied that t[e
29 language fully protects all the neighborhood residents. She said she is a 38-year resident in the St-rr
30 Neighborhood and as early as two years ago it was an undesirable place but today there is a beautiful p-rk
31 area, it is safer,cleaner and has less crime.
32
33 Speaking against the ordinance was Eleanor Van Middlesworth who said she had lived at 205 North 11 h
34 Street for the past 48 years. She said there are some mis-statements about this ordinance, noting t at
35 property owners such as herself are a special breed who have worked long enough and hard enough a d
36 saved well enough to buy property and they should be able to do with that property what they wish. She s.id
37 she has purchased 18 properties on North 11th Street and has restored every one of them with her money,
38 which, she said,can be done by people who have the courage and the love of these old houses.
39
40 Bob Goodwin, director of planning and redevelopment, said he finds this ordinance objectionable because it
41 is going to be an unfunded mandate. He said he does not have the staff on hand to do what this wo Id
42 require. He added that people talk in terms of simply going to pass this and nothing is going to happen w h
43 it. He said staffing in the Planning department is inadequate and it is a busy department already.
44
45 Scott Gibson,who has his office at 112 North 11th Street, said he has spent the last seven years buying real
46 estate and has been involved in 30 transactions since 1987. He said petitions circulated last week includ-d
47 97 owners representing pieces of property out of 305 in the Starr District. He said 30 percent of those •r
48 nearly all contacted were against the ordinance or the establishment of a historic Board.
49
50 Gibson said the City needs to take a tighter grip on the problems and not have a historic ordinance. IS
51 added that it would simply create more beauracracy, heading toward a Socialist government.Gibson said II e
52 did not want another level of government there to where he has to fight it all the time. He said he wants Ito
53 make Richmond a better place to live and he has been putting 30 percent of his gross income back into his
54 rentals for the past seven years.
55
56 Catherine Acheman at 109 North 13th Street, expressed her displeasure with the ordinance stating that a of
57 of residents in the Starr District are in the middle to lower income bracket and would not be able to affo d
58 maintenance and repairs like the ordinance says it should be done. She added that it is not economica ly
59 feasible.
60
61 Tom Joyner, a resident of Boston Township, said he owns 44 properties and he thinks the ordinance ill
62 create conflicts. He commended Stegall on his work in the Starr District, calling it a super job. He said t e
63 problem would be trying to balance between preservation and economics. He said owners are going to ha e
64 to alter some of the structures, remove windows or change chimneys, and that can be very costly. He s-id
65 he, along with the other owners,want to continue taking care of their own;properties.
. 527
•
•
Common Council Minutes Cont'd •
£3ctober3I_99_4
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Councilmember Brookbank read a.letter written by the Rev. Phil Hodgkin who lives in her district. He wrote
that he feels the ordinance is far too extensive and much too restrictive. He said although it has some merit it
would move control away from the owner and taxpayer and place it in the hands of an appointive committee.
Councilmember Elstro moved for engrossment, second by Councilmember Hutton and the motion was
carried on a unanimous voice vote. Councilmember Elstro moved to suspend the rules and advance
Ordinance No. 74- 1994 to third and final reading and read by title only, second by Councilmember Hutton
and the motion was carried on a unanimous voice vote.
1 The Clerk read Ordinance 74- 1994 on third reading.
1
1 Ordinance No. 74- 1994 was defeated on the following call of the roll:
1
1 Nays: Brookbank, McBride,Allen, Dickman and Parker(5)
1 Ayes: Elstro, Lundy, Donat and Hutton (4)
17 ORDINANCE NO.75-1994
16
19 President Parker explained that Ordinance No. 75- 1994 is on public hearing. He said the ordinance outlines
20 qualifications for tax abatement, noting that Council has tried to come up with some type of an ordinance that
21 would enable not only the business community but the citizens to be heard and have some checks and
2 balances in regard to abatements that the City is allowed to give local businesses. He said he would like to
2 give both sides a few minutes to discuss the ordinance then send it back to the Comittee of the Whole to
2 review and see if it is possible to come up with an ordinance that is satisfactory to both sides.
2
2E Attorney Jeff Arnold said he is the author of the ordinance which complies with Indiana law, adding that he
27 used as a model the City of South Bend. He invited questions but there were none.
2:
2• Jerry Easley, president of the Richmond/Wayne County Chamber of Commerce, said he supports the need
31 for Council to be involved in the tax abatement process and acknowledges it is the final authority for
31 approving such applications. He said this Council should not enact additional requirements that this
3. community will have that other communities it is trying to compete with do not have. He said this ordinance
3 does that and the Chamber cannot support it. He added that it will have an intimidating effect upon new
3, business ventures that want to go into this community and he does not think the City needs that kind of
3- detriment.
3.
3 Joe Kaiser, Wayne County Auditor, said he met June 21 with the Comittee of the Whole and presented
3: information which helped Council members understand how tax abatements worked. His impression, he
3• said, was that Council's roll in further developing plans to deal with tax abatements was to investigate
4C ongoing tax abatements and see if they are in compliance with their statements of benefits. Councilmember
41 Donat asked Kaiser whether or not this ordinance goes far enough and Kaiser answered that he felt the
42 impetus of the ordinance shifted from what he perceived to be the path in June. He added that he feels it is
43 now an unnecessary or rather overengineered and redundant piece of legislation. He said he imagined the
44 committee once resolved could be resurrected.
45
46 Ben Ross, president of the Economic Development Corporation of Wayne County, said his Board adopted
47 this position that the ordinance is an unnecessary invasion of the privacy of busineses that are considering
4g locating or expanding in Richmond. He said the effect of the ordinance will be to erode the competitive
49 position of the City relative to other locations. He added that businesses should be able to submit their
50 applications to the committee and the information on the forms should not be made public information. He
51I said he would hope the Council would understand the corporations considering a new location, relocation
5 and expansion. He said it is not something that happens every day, perhaps only once or twice in their
53 corporate lifetime. He added that anything this City can do to help present a friendly face and remove
51 uncertainty gives it a definite advantage. In looking at it from the viewpoint of a new corporation the
ordinance as currently drafted is pretty imposing.
5
5 Suanna Goodnight,who represents Hagerstown on the Wayne County Economic Development Council, said
5 i at first blush she thought this ordinance would be good for Hagerstown because she thought it would be
59 doing her town a big favor making properties there look a whole lot more attractive. She noted that she knew
60 that was a very provincial attitude and that kind is not needed in the county anymore. She feels the
61I ordinance would have a ripple effect and probably would help discourage development throughout the
6 county.
63
64
65
52 . •
•
•
Common Council Minutes Cont'd. '
October 3, 1994
Page 8
•
•
1 Mike Toschlog said the ordinance does not go far enough. He added that he always assumed that ;ex
2 abatements were created to create jobs but nobody seems to talk about those. He said the ordinance does
3 not ask what the jobs are, how much money they pay, what benefits there are and what a community g is
4 out of these. He said there are $30 million in tax abatements but the City says it does not have enou h
5 money to get the budget through. He added that if the City had some of that tax base it would have enou h
6 money. He said the City's tax base is being eroded by these tax abatements and there needs to be so e
7 checking done.
8
9 Councilmember Allen noted there is a difference between exemptions and abatements. She said ith
10 exemptions you get homestead, mortgage and inventory exemption in the Enterprise Zone and those o
11 take off the tax base. However, abatements are adding to the tax base eventually since they are a ly
12 delayed.
13
14 Peter Bartel, 1106 South A Street,said there is a code and tax abatement in the state. He said he does of
15 understand why Council wants to have people stand up in front and answer questions. He said it wo Id
16 make it more difficult to try and create jobs.
17
18 Milligan stated that the administration opposes the entire ordinance. He gave a brief history of ax
19 abatements, explaining that when they were first authorized by the economic incentive packages in a rly
20 1980, the City set up a committee to review at that time confidential SBI forms. That committee w s
21 composed of the City Attorney, Controller, Director of Economic Development,.Director of Planning an a
22 Council representative. He said when the present administration took office it was determined to be handl d
23 by the Department of Law because ordinances were required to be introduced and placed on the agenda. At
24 that time, he said, the Department of Law was in control of the agenda. He said Hibner worked as a
25 representative of the Department of Law and convened the committee and saw the need to have better a d
26 direct communication with the County Auditor's office. Sharon Tabor, Deputy Auditor, began as t at
27 representative to enhance good communications.
28
29 Milligan said in public law 65-1993, which became effective July 1, 1993, the SB1 form which is what t e
30 Council is acting on in the approval of the application for an abatement became a public record. Therefo e,
31 the committee meeting to review a confidential record and recommend to Council without divulging t e
32 contents of confidential record was obviously eliminated so with the effectiveness of the new form which was
33 promulgated as Councilmember Allen said in October 1993, all SB1 forms became public records. Nov,
34 under the procedure, the ordinance is prepared with the SB1 forms attached and it is up to individ Ial
35 Councilmembers to ascertain the nature of the application and to, on their own, initiate any contacts that m y
36 be necessary to satisfy their curiosity regarding the nature of the application. '
37
38 He said the administration encourages all tax abatements because these are new investments into t e
39 community and are available for new manufacturing equipment and rehabilitation and expansion of existi g
40 manufacturing buildings and facilities in designated economic revitalization areas. He said they have to e
41 there to even be considered. He noted tax abatements have been a successful tool for attracting jobs to t is
42 City between June 1992 and June 1994, adding that jobs have increased from 29,000 to 38,000. He said te
43 Department of Adminstration headed by Hibner is actually the one working with the various busine s
44 persons who are applying for these abatements. He noted that it seems that Council's concern is miler
45 compliance.
46
47 Milligan noted that each year an individual who has filed an SB1 form must file a CF1, therein lies the
48 compliance that all of the Councilmembers desire. He added that what Council wants is someone who has
49 petitiioned themselves for a tax deduction. He said the enforcement of the CF1 form is a matter of public
50 record.
51
52 Councilmember Allen moved to strike the ordinance, second by Councilmember Brookbank but the moti n
53 was defeated on a 5-4 roll call vote.Councilmember Elstro moved to place the ordinance in the Committee of
54 the Whole,second by Councilmember Donat and President Parker said that could be done.
55
56 Councilmember Donat said that in a previous Council meeting several members voiced concern as to
57 whether or not to send.letters,to businesses applying for tax abatements and asked if that is something th y
58 still wish to happen. Councilmember Allen said they can't continue to do that. Councilmember Donat s id
59 although several Councilmembers had made that request for the letters, now, as the committee person,
60 Hibner has been placing her name on the letter instead of Council. Milligan defended the lateness of t e
61 letters, noting that it was not intentional. He said the Department of Adminstration's role is to facilitate t at
62 business man's effort and that department is going to get it into Council's agenda as soon as it can. He s-id
63 he feels the°Department of Administration is accommodating and providing incentive for econo is
64 development. Councilmember Dickman asked that the businesses not be requested to be here because it
65 caused a lot of confusion, second by Councilmember Allen and the motion was carried on a unanimo s
voice vote. 0
., 529
Common Council Agenda Cont'd
OetobeL34--994
agp 9
ORDINANCES ON THIRD READING
There were none.
OLD BUSINESS
MISCELLANEOUS BUSINESS •
ADJOURNMENT
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1 There being no further business,on a motion duly made,seconded and passed,the meeting was adjourned.
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1 Larry Parker, President
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2. ATTEST:
2. Norma Carnes, City Clerk
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