HomeMy Public PortalAbout04-04-1994 4 41 5
PROCEEDINGS-OF-TN E-COMMON-COU NCIL-OF-TH E
CITY-OF RICHNION,INDIAN MONDA-YTAP-RIL=4994 -
1 The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday, April 4,
2 1994, in the Council Chambers in said City. President Larry Parker presided with the following
3 Councilmembers present: Howard "Jack" Elstro, Etta Lundy, Jane Brookbank, Don McBride, Gene Allen,
4 Bob Dickman and Sally Hutton. Absent was Mary Ellen Donat.The following business was had to-wit:
5
6 PLEDGE OF ALLEGIANCE
7
8 PRAYER BY COUNCILMEMBER MCBRIDE
9
10 ROLL CALL
11
12 Eight present.
13
14 At the invitation of President Parker, Councilmember Allen introduced her guests,Ashley Perkins,Angi Mays
15 and Tamara Toney, all students at Dennis Middle School.
16
17 APPROVAL OF MINUTES OF MARCH 21. 1994
18
19 Councilmember McBride moved to approve the minutes of March 21, 1994, second by Councilmember
20 Hutton and the motion was carried on a unanimous voice vote.
21
22 COMMUNICATIONS FROM THE MAYOR
23
24 PRESENTATIONS OF REMONSTRANCES. PETITIONS AND MEMORIALS
25
26 REPORT FROM CITY DEPARTMENTS
27
28 REPORT FROM OTHER OFFICES
29
30 REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY
31
32 Minutes of the March 17 and 24 meetings in the Council packets.
33
34 REPORTS FROM SPECIAL COMMITTEES
35
36 REPORTS FROM STANDING COMMITTEES
37
38 Councilmember Hutton said the Gorge Park Committee had a meeting earlier in the day and discussion had
39 centered around the first cleanup that had been held Saturday in the Gorge with about 24 volunteers
40 participating. She said the clean up was going to be held every Saturday during April and more people were
41 needed, especially those who own chain saws. She invited them to come and join in the cleanup project.
42 President Parker commented that since he had received a chain saw for Christmas he supposed he would
43 be making an appearance.
44
45 REPORTS FROM OTHER COUNCIL COMMITTEES '
46
47 ORDINANCES
48
49 ORDINANCES ON FIRST READING
50
51 Councilmember Brookbank moved to suspend the rules and read on first reading by title only Ordinances
52 No.26, 27,28 and 29- 1994,second by Councilmember Hutton and the motion was carried on a unanimous
53 voice vote.
54
55 ORDINANCE NO.26-1994
56
57 The Clerk read Ordinance No. 26 - 1994 - A SPECIAL ORDINANCE AMENDING THE ZONING MAP AT
58 3194 UNION PIKE
59
II 60 President Parker announced that Ordinance No.26- 1994 would go to Planning.
61
62 ORDINANCE NO.27-1994
63
64 The Clerk read Ordinance No. 27 - 1994 - AN APPROPRIATION ORDINANCE AMENDING THE 1994
65 BUDGET
Common Council Minutes Cont'd
April 4, 1994
Page 2
1
2
Explaining Ordinance No. 27 - 1994 was City Controller Dennis Grimes who said it deals with a portion of
4 the $18,000 that was allocated to the neighborhood effort, transferring money from one major budget
E classification to another within the Department of Planning. It deletes $6,000 from the neighborhood center,
6 adding $1,600 to printing, $500 to office supplies and$3,900 to other supplies.
7
6 Councilmember Hutton moved to suspend the rules and advance Ordinance No. 27 - 1994 to second
c reading and read by title only, second by Councilmember Brookbank and the motion was carried on a
10 unanimous voice vote.
11
12 The Clerk read Ordinance No.27- 1994 on second reading.
11
President Parker announced that Ordinance No. 27- 1994 was on public hearing.
1
1 Bob Goodwin, director of planning and redevelopment, commented that the Neighborhood Association
1 J board of directors established to utilize these funds, working in conjunction with the Urban Enterprise
18 Association, with a good deal of help from Councilmember Hutton, and working through the Planning
14 Department, was successful in the past week in raising an additional $50,000 which will go into this
2t neighborhood project.
2'
2 Hearing no comments against Ordinance No. 27- 1994, Councilmember Dickman moved for engrossment,
2 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
2
2 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 27- 1994 to third and final
2 reading and read by title only, second by Councilmember Brookbank and the motion was carried on a
2 unanimous voice vote.
2
2 The Clerk read Ordinance No.27- 1994 on third reading.
3
3 Ordinance No.27- 1994 was adopted on the following call of the roll:
3
3 Ayes:Elstro, Lundy, Brookbank, McBride,Allen, Dickman, Hutton and Parker(8)
3 Nays:None
3
3 ORDINANCE NO. 28-1994
37
3 The Clerk read Ordinance No. 28 - 1994 - A SPECIAL ORDINANCE AUTHORIZING AND COMMITTING
3 THE CITY TO PROCEED WITH FINANCING ECONOMIC DEVELOPMENT FACILITIES
41
4 Richard Starkey, representing Baker & Daniels of Indianapolis, acting as bond counsel for Schuller
4 International, said this is what is called an inducement resolution, a preliminary type resolution, which
4 expresses the intent of the City to encourage the company to go forward with its project. He said Schuller is
4 experiencing tremendous growth and this is not to exceed $8 million for equipment they are putting in and
45 this would be an economic development bond, commonly referred to as an industrial development bond. He
4 added that the City will have no liability with the bond which will be paid through a loan agreement with the
4 company and payments will be made to a trustee,with the City lending its name to the bond.
J4
4 Joe Fleagle, also a member of the company, said Schuller is interested in expanding its operation. It
5 currently has only one machine in operation and is interested in adding a second one which will give the
5 company the ability to expand. He said the expansion will add approximately 24 new jobs.
5
5 Councilmember Allen commended the company for going on with the project, noting that the citizens of this
5 community need this kind of investment in the City. President Parker added his appreciation of the extra
5 jobs.
5
57 Councilmember Elstro moved to suspend the rules and advance Ordinance No. 28 - 1994 to second reading
56 and read by title only, second by Councilmember McBride and the motion was carried on a unanimous voice
59 vote.
60 is6' The Clerk read Ordinance No.28- 1994 on second reading. I
62It
6 President Parker announced that Ordinance No.28- 1994 was on public hearing.There being no comments
6, either for or against the ordinance, Councilmember McBride moved for engrossment, second by
6 Councilmember Brookbank and the motion was carried on a unanimous voice vote.
7 i
Common Council Minutes Cont'd
April 4, 1994
Page-3
1
2
3 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 28 - 1994 to third and
4 final reading and read by title only, second by Councilmember McBride and the motion was carried on a
5 unanimous voice vote.
6
7 The Clerk read Ordinance No.28- 1994 on third reading.
8
9 Ordinance No.28 -1994 was adopted on the following call of the roll:
10
11 Ayes: Elstro, Lundy, Brookbank, McBride, Allen, Dickman, Hutton and Parker(8)
12 Nays: None
13
14 ORDINANCE NO.29-1994
15
16 The Clerk read Ordinance No. 29 - 1994 - AN APPROPRIATION ORDINANCE AUTHORIZING THE CITY
17 OF RICHMOND TO RECEIVE A DONATION FROM RICHMOND CENTER, LLC
18
19 President Parker announced that a request had been received from counsel of Richmond Center, LLC, to
20 table Ordinance No. 29 - 1994. Councilmember Dickman so moved, second by Councilmember Hutton and
21 the motion was carried on a unanimous voice vote.
22
23 ORDINANCES ON SECOND READING
24
25 ORDINANCE NO. 24-1994
26
27 The Clerk read Ordinance No. 24 - 1994 - A SPECIAL ORDINANCE APPROVING A DECLARATORY
28 RESOLUTION AND ECONOMIC DEVELOPMENT PLAN ADOPTED BY THE RICHMOND
29 REDEVELOPMENT COMMISSION AND APPROVING AN ORDER OF THE RICHMOND ADVISORY PLAN
30 COMMISSION
31
32 Addressing his remarks to Mayor Roger Cornett, President Parker said Council had several questions
33 regarding Ordinance No.24- 1994 during its first reading at the March 21 meeting. He asked the Mayor if he
34 would speak to the ordinance and try to answer those questions.
35
36 Mayor Cornett said he told the developers when they came to him that this is in the Master Plan and he
37 supports the effort 100 percent, however, he added,this is not an initiative put out by the administration but it
38 came to the administration which is trying to help the developers and the process as much as it can. He said
39 the developers were told that they would have to demonstrate support of the project with the vested interest
40 groups, particularly the Wayne County Convention&Tourism Bureau.
41
42 He stated that the first step is to endorse, in principal, that the convention center would be good for the
43 community and that is where it is now. He said the ordinance comes to Council as the official final word in
44 allowing the process to proceed to the next step.The Mayor said, in his mind,there are basically three steps:
45 one is to agree in concept,the second is to agree in money and the third to agree in management. He noted
46 that the letter given to Councilmembers by City Attorney Thomas Milligan outlines those distinct processes.
47 (That letter is on file in the City Clerk's office.)
48
49 Mayor Cornett said the City has not taken the time nor the money at this point to come up with additional
50 information. He explained that if the community and Council are not in agreement with the concept and the
51 center is compatible with the master plan and if this particular location is a problem, a negative vote at this
52 time would save time and money in pursuing the next step.
53
54 However,the Mayor added, if Council agrees that the concept is one with which it agrees, the City would be
55 prepared to take the time and spend the money to come up with two additional documents. He held up a
56 copy of the feasibility study done in 1989, noting that the company who did it is out of business, explaining
57 that in order to proceed the plan would have to be updated or a brand new plan would have to be drawn up.
58 Secondly, he said, a financial analysis would have to be made since there is no such document for a
59 convention center and it would definitely be needed.
60
61 These two documents,the Mayor said, need to be generated from the public sector, not the developers who
62 could appear to be self serving. He preparation of these two documents should be done by the
63 Redevelopment Commission, Wayne County Convention & Tourism Bureau, possibly the Economic
64 Development Corporation and the City administration and would be the basis to go to the next public hearing
65 with the Redevelopment Commission to analyze them and to agree that those forecasts and financial
analysis does or does not make sense.
Common Council Minutes Cont'd
April 4, 1994
Page 4
The Mayor said his position is that the Richmond/Wayne County Chamber of Commerce, the Economic
Development Corporation Board, the Greater Richmond Progress Committee and the Wayne County
Convention & Tourism Bureau need to be in agreement with that and willing to step forward at the
Redevelopment Commission and so state that they would support those documents when they finished.
Then, he added, it would come back to the Council in the form of another ordinance to do the same thing
since Council is the final decision maker.
1 t The last and final step, Mayor Cornett said, would be to go back and negotiate a contract with someone to
1 run the center for the City. At that time, he added, DFR Limited would be consulted in establishing the
1 normal process of getting a contact, establish the specifications of that contract, put it up for bid and the
I11 highest bidder would win.
1
He said this first step, if it is taken tonight, simply allows the City to take the time and money to go into the
1 next step. He estimated spending less than $25,000 to generate the two documents mentioned, adding that
1 there is money available in the variety of budgets to take care of this. He said those documents would be in
16 the hands of Council before the public hearing and they would have the wisdom of a recommendation from
19 the various groups mentioned, plus the Redevelopment Commission.
20
2 President Parker said a concern of council at the last meeting was the price of the land and asked the Mayor
2 if the ordinance is passed tonight whether or not that gives the Redevelopment Commission the right to
2 purchase the land without any further approval of Council. The Mayor said he felt that would not be the case
2 and Doug Oler, attorney for DFR Limited,agreed.
2
2 The question posed by Councilmember Lundy was whether or not the Redevelopment Commission will work
27 out all the details and only come back to Council with the lease agreement. The Mayor said Milligan's letter
2 indicated that Council will have another ordinance to ask for support of the financial arrangements and then
2 Council would have to approve the lease.
3
3 In answer to Councilmember McBride's question about the money he said iit would be available for the two
3 documents he mentioned earlier and will require some cooperation from those who control the various
3 budgets because there is not enough in any one budget to pay for it. Councilmember McBride said the big
3 question asked by the taxpayers who have contacted him is whether or not they are going to have to pay for
3 it.
3
3 The Mayor responded, that, in all fairness, Councilmembers have had the information in front of them that
31 indicates a center cannot be built and operated without some public support. He added that there are several
3 ways to do that and when and if a second ordinance is brought before Council there will be specific
I4 recommendations in those areas. He said there is no way to do that now because there is not enough
41 information.
4
4 Councilmember Allen said she had read the information in the feasability study and found that much of it is
4 still valid today. She said she felt it would be less inexpensive to update the existing study rather than have a
4 new one done. The Mayor agreed, noting again the firm who did the survey is now out of business, but
4 adding that perhaps someone could take the existing study and update it. Councilmember Allen stated that if
4 the ordinance is adopted tonight declaring this area an economic development area there would be no cost
4: associated with it at this point.
4•
5# Councilmember Elstro said there would be an estimated $25,000 cost to go ahead. Mayor Cornett noted that
5 in a decision-making process the first thing is to gather information and the next decision is going to take
5. more data and the third even more. He added that ordinarily in a contractual situation, specifications are put
5 out for contracts in the normal routine of doing business so, as far as making those decisions, the City is
5, talking in the neighborhood of $25,000 until those decisions can be made. Then, he added, once you move
5- into some kind of bond issue there are significant costs as far as legal and accounting. Tonight, he said, if
5: Council votes for this ordinance,or even the next two, it is not committing to more than$25,000.
5
5 President Parker stated that Ordinance No. 24 - 1994 is on second reading and invited input from those in
5 the audience, asking that they limit their comments to three minutes.
6
6 Oler, in answer to questions posed by Councilmember Elstro, said if this ordinance is adopted the
6 Redevelopment Commission publishes a notice and conducts a public hearing. He added that the
6J Redevelopment Commission can confirm, modify and confirm, or reject this ordinance. If they confirm, that
6, confirmatory resolution comes back to Council.
6
49
Common Council Minutes Cont'd
April 4, 1994
Page-5
1
2 Oler said Council is actually voting on the declaratory resolution tonight and if it is approved it would go to the
3 Redevelopment Commission for a public hearing and if they confirm, it comes back to Council to vote on the
4 confirmatory resolution. He noted that is Council's second opportunity, and the third is on the lease
5 negotiations on down the line. He said that was confusing at the last meeting and he apologized for that
6 confusion.
7
8 President Parker invited comments from the public. There being no comments in favor, he invited those
9 speaking in opposition to step forward.
10
11 Dick McClaren of 883 South West 15th Street said he had listened to presentations the last two times
12 Council met and it seemed to him, as a citizen, that the way it was presented it will be a liability to the City.
13 He added that he is not in disagreement with a convention center and thinks it is a great thing to do if it is
14 done properly. He said listening to the Mayor tonight had cleared up a few of his concerns but he felt he
15 needed more information because from what had been presented thus far, he feels it is not a good business
16 deal. He also asked about whether or not The Leland property had been considered as a convention center
17 site. The Mayor responded that it had been discussed but the size of the area to the north of The Leland is
18 not adequate to accommodate 1,000 people.
19
20 Annabelle Davis of 2520 West Main Street said she is opposed to the convention center since it sounds to
21 her as though the taxpayer will be left holding the bag. She said she is not opposed to a convention center if
22 someone wants to build one privately and make a go of it. She concluded by saying that she feels Richmond
23 does not qualify for a convention center and doesn't want the taxpayer to end up having to pay for it.
24
25 Vivian Battista of 6083 Roby Lane said she missed the first meeting and wished to clarify whether or not this
26 area in question is inside the City limits or if it goes back into the southeast annexation area in which she
27 lives. Bob Goodwin,director of planning and development, answered that the site is within the City limits.
28
29 Councilmember Dickman moved for engrossment, second by Councilmember Brookbank and the motion
30 was carried on a unanimous voice vote.
31
32 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 24 - 1994 to third and
33 final reading and read by title only, second by Councilmember Hutton and the motion was carried on a
34 unanimous voice vote.
35
36 The Clerk read Ordinance No.24- 1994 on third reading.
37
38 Councilmember Elstro stated that he would be voting against the ordinance. He added that he thinks a
39 convention center would be great, but in taking a poll of his district, only three out of the 50 to 55 people he
40 talked with are in favor of it. He said to represent the people in his district fairly, he will have to vote against it.
41
42 President Parker said he had received several phone calls and most who called said the center would be fine
43 with the following exceptions or concerns: (a) The price of the land seems excessive at about $416,000 for
44 land without frontage; (b) Taxpayers feel they should not be responsibile for any shortfall on any bonds and
45 since the managers of the property will be the ones making a profit they should be the ones to take up any
46 slack in a shortfall of the bonding; (c)The City should not have to pay for the management of the center and
47 if DFR is awarded the contract they feel since they will be the ones receiving the benefits of the center they
48 should not be paid by the City; and (d)The City would have no management capability once it is established
49 and leased off to some other organization. President Parker said he will vote to go ahead and to look further
50 into the possibilities, keeping in mind the concerns expressed by his constituents. He added that he expects
51 the Redevelopment Commission to look into those concerns and if that is not done to his satisfaction he will
52 vote against the center at that time.
53
54 Councilmember Lundy said she, too, had had several phone calls, however she realized the way to get a
55 really good answer as to how she should proceed is to have more information and she feels voting for this
56 ordinance is the only way to get that. She said the same concerns as those received by President Parker
57 had been voiced by those living in her district and she,too,will have to wait for more information.
58
59 Councilmember Allen said not to lose sight of the fact that the convention center will be a benefit to the entire
60 community. She said some people say it would be great to have such a center but they don't want it and
61 don't want to have to pay for it but want someone else to pay for it. She stated that this is an investment that
62 we as citizens need in our community, adding that some times you have to take risks in order to get benefits.
63 She said the entire community will benefit because of the people who will come here who would not be
64 coming here otherwise.
65
5
Common Council Minutes Cont'd
April 4, 1994
Page-6
Ordinance No.24- 1994 was adopted on the following call of the roll:
Ayes: Lundy, Brookbank, McBride, Allen, Dickman,Hutton and Parker(7)
6 Nays: Elstro
Absent: Donat
• ORDINANCES ON THIRD READING
1.
1 There were none.
1
1 OLD BUSINESS
1
1' MISCELLANEOUS BUSINESS
1•
1 Councilmember Hutton moved to nominate Bob Binversie, business agent for the Teamsters Local, to a
1: four-year term as the Council's representative to the Richmond Board of Zoning Appeals, second by
1' Councilmember Brookbank and the motion was carried on a unanimous voice vote.
2'
2 Councilmember Hutton asked if any information had been received about Ordinance No. 22- 1994 that is in
2 Committee of the Whole. Councilmember Brookbank said she had inquired about the taxes and learned that
2 they are $3,166 per year. Mayor Cornett said he would like Council to schedule a meeting so the questions
2, they have could be answered, adding that he would hope by that time to have bids so there could be a
2- specific figure given.
2.
27, He reminded Councilmembers that he had sent each of them a letter in February with a follow up letter from
2 City Engineer Bob Wiwi, listing all the projects that the City is involved in. He said this project was on that list
28 and there was a number of $527,000 on there at that time, which was a cursory engineering type number.
3 However, he said, he feels that the bid numbers will be much less than that. He added that there is no
3 question that Councilmembers had that information in their hands in early February that indicated the City's
3 intention on that project and that was the best guess at the cost at that time which is to be paid out of the
3 City's portion of the EDIT funds.
3
3 Councilmember Hutton asked about the time bids would be coming in and Mayor Cornett responded it
3 should be around April 14. She said that would mean that no Committee of the Whole meeting would be
34 necessary and Council could do this at its next meeting since all they were interested in was the cost.
3: President Parker agreed with her.
3•
46 ADJOURNMENT
4
4 There being no further business, on a motion duly made,seconded and passed,the meeting was adjourned.
4
4,
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4
5 Larry Parker, President
5
5
5
5 ATTEST:
5 Norma Carnes, City Clerk
5:
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