HomeMy Public PortalAbout03-21-1994 435
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1 The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m. Monday, March
2 21, 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, Mary Ellen Donat, Don
4 McBride, Gene Allen, Bob Dickman and Sally Hutton.The following business was had to-wit:
5
6 PLEDGE OF ALLEGIANCE
7
8 PRAYER BY COUNCILMEMBER BROOKBANK
9
10 ROLL CALL
11
12 Nine present.
13
14 APPROVAL OF MINUTES OF MARCH 7.1994
15
16 Councilmember McBride moved to approve the minutes of the previous meeting as prepared, seconded by
17 Councilmember Hutton and by unanimous voice vote the motion carried.
18
19 COMMUNICATIONS FROM THE MAYOR
20
21 Councilmember Brookbank said she had given each Councilmember a copy of Indiana Business Magazine,
22 noting that on page 55 was an article about Richmond which she encouraged them to read,commenting that
23 it was written by Carlos David Mogollon, a former Palladium-Item reporter.
24
25 PRESENTATIONS OF REMONSTRANCES.PETITIONS AND MEMORIALS
26
27 None were presented.
28
29 REPORT FROM CITY DEPARTMENTS
30
31 REPORT FROM OTHER OFFICES
32
33 REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY
34
35 Minutes of the February 24, March 3 and March 10, 1994 meetings were in the Council packets.
36
37 In response to a telephone call he received, Councilmember Elstro asked who is doing weights and
38 measures, when and how. President Parker said he would see that Earnest Jarvis, director of Public Works
39 & Safety, got the message. President Parker added that he had received a note from Bill Smith, Street
40 Division Manager, stating that he is ready to drive the Council districts and Councilmembers need to call him
41 for appointments to ride the streets and roadways in their districts or send a note to him stating their priorities
42 of those they would like to have looked at.
43
44 REPORTS FROM SPECIAL COMMITTEES
45
46 None were presented.
47
48 REPORTS FROM STANDING COMMITTEES
49
50 None were presented.
51
52 REPORTS FROM OTHER COUNCIL COMMITTEES
53
54 None were presented.
55
56 ORDINANCES
57
58 ORDINANCES ON FIRST READING
59
60 Councilmember Lundy moved to suspend the rules and read on first reading by title only Ordinances No. 21,
61 22, 23, 24 and 25 - 1994, second by Councilmember Brookbank, and the motion was carried on a
62 unanimous voice vote.
63
64 ORDINANCE NO. 21 -1994
65
The Clerk read Ordinance No. 21 - 1994 - AN APPROPRIATION ORDINANCE AMENDING THE 1994
BUDGET
43 ;
Common Council Minutes Cont'd
March 21, 1994
Page 2
1
City Controller Dennis Grimes explained the purpose of the ordinance is to accurately reflect the
appropriation of income the City will receive from the distribution of the Economic Development Income Tax
(EDIT) in 1994. Grimes said $1,142,575 is the certified allocation of the State Tax Board. He added that the
agreement the City has with the Wayne Council Council to fund the activities of the Economic Development
/ Corporation with half of its allocation, leaves $571,000 which is the legal amount to include in the City's
appropriation. In answer to a question by Councilmember Donat, Grimes said the $6 is the difference in the
estimate received last summer and the final certification received at the end of this month.
9
1 Councilmember Dickman moved to suspend the rules and advance Ordinance No. 21 - 1994 to second
1 reading and read by title only, second by Councilmember Hutton and the motion was carried on a
1 unanimous voice vote.
1
1 The Clerk read Ordinance No.21 - 1994 on second reading.
1
1 President Parker declared Ordinance No. 21 - 1994 on public hearing. There being no comments either for
17 or against the ordinance, Councilmember McBride moved for engrossment, second by Councilmember
1! Lundy and the motion was carried on a unanimous voice vote.
1
21 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 21 - 1994 to third and
2 final reading and read by title only, second by Councilmember McBride and the motion was carried on third
2 and final reading.
2
2 The Clerk read Ordinance No.21 - 1994 on third reading.
2
2 Ordinance No.21 - 1994 was adopted on the following call of the roll:
2
2i Ayes:Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
2 Nays:None
3
3 ORDINANCE NO. 22-1994
3
3 The Clerk read Ordinance No. 22 - 1994 - AN APPROPRIATION ORDINANCE AUTHORIZING THE CITY1111
3 OF RICHMOND TO RECEIVE A DONATION OF REAL ESTATE
3
3 Explaining the ordinance was Robert Goodwin, director of planning and redevelopment, who said it is a
3 donation of land by the King Hotel Management group which is referred to locally as The Leland. Goodwin
35 read a letter from Dick Bernstein, president of the corporation, in which he stated that the intent is to deed
3E the one-story property to the city in exchange for the city's commitment to demolish the one story building
40 temporarily and approve the site as a park and to improve the north end of the hotel structure as may be
4'f required as a result of the demoliton.
4
4 Continuing, Bernstein said all of the above mentioned activity will constitute phase one of an overall plan to
4 improve the site, adding that phase two will consist of a professional land use plan which will be
4 commmissioned subject to the City's approval and participation in the study's cost.
4
47 He noted, as had been discussed earlier, there will be a meeting with various members of the downtown
4 community to discuss the subject property in the context of an overall City plan and a hotel sidewalk, alley
4 and parking lot improvement plan will be submitted for the City's consideration.
5
5 / Goodwin said basically what he is looking for is acceptance of that land for the purpose of the demoliton of
5 the site and determining at a later date the manner in which it will be used. In answer to Councilmember
5 McBride's question about funding, Goodwin said funds are on hand and have been appropriated. He said
5 that site will be incorporated along with what is done with the Medical Arts Building, CIGNA and with the
5 overall downtown Promenade area, adding that all of that would be incorporated into one plan for the
51 downtown area.
5
5 In answer to Councilmember Hutton's question about where all of that funding will come from,Goodwin said
5 that would be decided by the City administration. He said it could come through several sources and
6 mentioned EDIT and CCDF as possibilities. Councilmember Allen asked if figures are available as to how
6 much the cost will be and Goodwin said that information would not be available until the project is actually
6 bid. Answering Councilmember Elstro's question about how much tax that parcel of ground is bringing now,
61 Goodwin said that is part of the bankruptcy and that part has not been improved so taxes on those three lots
6 are negligible. He said those buildings are not being used and it will be difficult to tear them down because
65 the roofs had been used as a parking lot and they had been extremely reinforced.
437
Common Council Minutes Cont'd
March 21. 1994
Page-3
1
2 Councilmember Donat read from a portion of the ordinance, which stated that"donor shall be consulted with
3 regard to any development or disposition of said real estate." She said that line bothered her because that
4 ties the City to that particular business and she felt that consulting with them on anything that comes later is a
5 mistake. She also stated she is concerned about the cost and would like to hold the ordinance until Council
6 could be provided with the actual figures. She added that she feels it is a gift on one hand but on the other it
7 is a hand in the City's pocket.
8
9 Goodwin said although he understood the concern he said the corporation had been working hand in hand
10 with the City to help improve the downtown area and it did not seem out of line to include that type of
11 language in the ordinance adding that they are asking us simply what the City has been asking them. He said
12 the corporation wants to have a hand in the development there and it is interested in what will be going in
13 adjacent to their building. Councilmember Dickman said his understanding of the line read by
14 Councilmember Donat is that the corporation wishes to be consulted but it wouldn't mean that it would have
15 the ultimate say so or would have to authorize what the City uses that land for. Goodwin said his
16 understanding is correct.
17
18 Councilmember Elstro said he,too, would like to hold the ordinance until Council received further information,
19 adding that he would like to know what taxes are being paid on that site, now. He also would like to know
20 about the money the City is anticipating using and what else it could be used for, adding that he would like to
21 know what the cost would be to get it torn down and without that information it was like buying a pig in a
22 poke. Goodwin said until the bid is let he doesn't know exactly what the cost is going to be and
23 Councilmember Elstro said he had heard that it could be $500,000. Goodwin responded that that was in
24 excess of what he had heard.
25
26 Councilmember Donat moved to place the ordinance in the Committee of the Whole, second by
27 Councilmember Lundy and the motion was carried on a unanimous voice vote. President Parker directed
28 Goodwin to get the figures on the present taxes, approximate cost of tearing the buildings down and the cost
29 to improve the site.
.30
. 31 ORDINANCE NO. 23-1994
32
33 The Clerk read Ordinance No. 23 - 1994 - AN APPROPRIATION ORDINANCE AUTHORIZING THE CITY
34 OF RICHMOND TO RECEIVE A DONATION OF REAL ESTATE
35
36 Goodwin said this parcel of land is .15 of an acre, about 6,633 square feet, and is a small wooded area
37 immediately adjacent to the RP & L sub station. He added that the parcel is the only remaining one on that
38 side of the street which was not in the hands of the Parks and Recreation Department. He said the owner
39 has asked to donate it to the City. Councilmember Donat asked about the taxes and other Councilmembers
40 pointed out that it was stated in the ordinance, noting that they are$80.
41
42 Councilmember Allen moved to suspend the rules and advance Ordinance No. 23 - 1994 to second reading
43 and read by title only, second by Councilmember Hutton and the motion was carried on a unanimous voice
44 vote.
'45
46 The Clerk read Ordinance No.23- 1994 on second reading.
47
48 President Parker declared Ordinance No.23- 1994 on public hearing.
49
50 There being no comments either for or against the ordinance, Councilmember Dickman moved for
51 engrossment,second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
52
53 Councilmember Hutton moved to suspend the rules and advance Ordinance No. 23 - 1994 to third and final
54 reading and read by title only, second by Councilmember McBride and the motion was carried on a
55 unanimous voice vote.
56
57 The Clerk read Ordinance No. 23- 1994 on third reading.
58
59 Councilmember Hutton asked if it had been mentioned as to who was giving this donation to the City and
60 President Parker answered that it had not, noting that it is Elizabeth F. Mull.
61
62 Ordinance No.23-1994 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
438
Common Council Minutes Cont'd
March 21, 1994
Page 4
1
2. ORDINANCE NO. 24-1994
L. The Clerk read Ordinance No. 24 - 1994 - A SPECIAL ORDINANCE APPROVING A DECLARATORY
i RESOLUTION AND ECONOMIC DEVELOPMENT PLAN ADOPTED BY THE RICHMOND
REDEVELOPMENT COMMISSION AND APPROVING AN ORDER OF THE RICHMOND ADVISORY PLAN
COMMISSION
5
9 Goodwin came forward, noting Mary Walker, director of the Wayne County Convention and Tourism Bureau,
1 L and Attorney Doug Oler, were two of the other presentors. He said the information presented to Council is
1 the redevelopment portion completed March 14 and the Planning Commission met the next evening on
1 March 15 to consider whether or not the resolution and plan met with the Master Plan for the City of
1 Richmond and determined that it did. He said the area is immediately south of the present Holiday Inn,which
1 is the former Quality Inn, and is an opportunity for a convention center.
1
1 Goodwin pointed out the area on the overhead projector, noting that zoning immediately across the street
1 and on either side and to the rear is C-4 and across the street is M-1. He added that all of that is retail
18 service area and is immediately adjacent to the new Lowe's store.
1
21 Walker referred to the convention center survey results and an availability listing she had distributed to
21 Councilmembers. She noted that she had also given them a proposed expanded sales and marketing plan if
22 the convention center becomes a reality.
22
2 She said a 35,000 square foot facility is needed because the City is now limited in current facilities in order
2 to get large groups. She said the City is missing an entire percentage of groups because the most any one
2 facility now can handle is approximately 250, perhaps three hundred people. She said what a convention
2 center will do for the City is increase its market share which will bring more dollars into the community.
2 Comparing the current figures with those in the 1989 study, Walker said the City will be receiving more
231
center for less money, noting that in the current proposal it gives a figure of 35,000 square feet with 17,500
square feet for actual meeting space availability. It is also less money than in 1989 when $420,000 was the
3 proposed cost which is now $301,000. She pointed out that the convention center survey shows who the
3 competitors are, noting that the City is going to have to be competitive if it is going to have the center. She
3 directed Council's attention to the listing of available groups that the City can go after which represent 350 to
3 1,000 people within each group.
3
31 Walker said this planned facility speaks to the trend in future meetings where groups meet in large general
3 sessions, break out into luncheon facilities and then into small meeting rooms. She said it has central
38 location which is easily accessible from Indiana and Ohio, is directly accessible from 1-70, easy to find, and is
3 not more than 2,500 to 3,000 feet off the Interstate. She noted that there are tremendous amenities on U.S.
4 40 which include shopping, restaurants, nearly 700 hotel rooms within two to three minutes drive which
4 provide a range of rates and there is also diversity in cultural events. She said visitors look at all of these
4 things. She said the focus in the past several years of the Wayne County Convention &Tourism Bureau has
4 been tournaments and special events which are possible with what has been available. She noted the men's
4 state bowling tournament which has brought 10,000 people into the City over a 10 to 12 weekend period
4 spending their monthy into the City's economy.
4
4 Referring to the sales results from 1988 to 1993, she said she wanted to give Councilmembers an idea of
4 the numbers the Bureau has dealt with without a recognizable product. She said they have brought in
4 160,000-plus participants and 120,000 of those have been in connection with tournaments, special events
5 and small meetings. Addressing what she calls seasonality, Walker said winter is notoriously the weakest
5 season, summer is the best and spring and fall are not as bad as the winter, which tends to bring down the
5 average for the entire year. She said the convention center will help eliminate that seasonality because the
5 Bureau has not been able to get the winter meetings market because of the limited facilities. She noted that
5 the tourism industry is a heavy importer of capital in that locally owned businesses gain from tourism
5 because it will keep their locally owned profits in the community. She said the center will be a local image
5 enhancement for corporations because having a center will raise the image and is an asset to local as well
5 i as out of town corporations who need the space for workshops,training sessions and trade shows.
5
5 She added that the center must concentrate on out of town groups and focus long term on getting those
6 groups and local business should try as much as possible to be retained in local facilities so that the center
6 complements them rather than competes against them. She noted the five different areas that tourism
6 affects which are lodging, food and beverage, entertainment, travel related business services and retail,
6 adding that these are direct beneficiaries. She said it will affect others, too, indirectly in that businesses will
6, generate additional revenue. She said the proposed center is estimating an economic impact of
6 approximately$3.3 million and providing about 83 jobs, about 40 or 50 of those will be in the center itself.
439
Common Council Minutes Cont'd
March 21, 1994
Page.5
1
2 She said in order to be effective and competitive the City needs at least a 35,000 square foot facility and the
3 center must be marketed aggressively by every available resource. She stressed that it must have its own
4 sales and marketing staff in selling it 100 percent. She added that groups book one, two and three years in
5 advance. Walker said to show the Bureau's level of commitment in this project it has adjusted its budget,
6 diverting its limited resources to pull together an aggressive plan for the proposed center. She added that the
7 Bureau is taking a calculated risk that the center will produce results that can be measured. She asked the
8 Council to let the Bureau do what it is best at, noting that it has a proven track record, and let it show what it
9 can do with a recognizable product.
10
11 Speaking next was Jim Martin at 152 South 48th Street who said he was a newcomer to the City two years
12 ago, retired from the U.S. Army where he directed special projects. He said he agreed with Walker on all the
13 points she made. She cited the assets of the City in that it has a great park system, four golf courses,
14 beautiful old homes, beautiful buildings downtown, a fascinating area called Old Richmond, a good
15 government, three great colleges, a Downtown Promenade, a Civic Auditorium, Rose Festival, Rose
16 Gardens, good streets and roads, a symphony, a local theater, great leaders, an outstanding tourist bureau,
17 and a supporting local newspaper. He noted that when he and his wife moved to Richmond it was their 32nd
18 move and at that time he wanted to take the Leland Hotel and make a retirement center out of it. He added
19 that he felt the success of any operation is the manager, the guy who runs it, and he said he had known
20 Forbes Dodge for a long time, having worked for the Sheraton Corp. as he did. He talked about Dodge's
21 experience in operating a resort center in Vermont, noting that he had operated four restaurants and had
22 been in consulting for 25 years where he had organized conferences and been involved in programming and
23 managing companies.
24
25 Representing DFR, the owners of the project, Oler said they had spent time and effort in working with the
26 City to put together a package feasible for the private sector and the City. He said the idea of a convention
27 center is not new to the City inasmuch as the previous administration had received a report in 1989. Oler
28 highlighted the main points of that study.
29
30 He said Richmond cannot be competitive in the convention center business with the larger facilities and the
31 resort-oriented locations, however, it can be competitive with comparable sized cities in the so-called second
32 tier business for statewide and regional conventions. Highlighting important aspects of a successful
33 convention center, he mentioned location, quality of the facility, quality of the management, supply of hotel
34 rooms and marketing efforts of the City and the facility. He added that the study said a convention center
35 was feasible in 1989 and DFR submitted that it still is and even moreso in 1994.
36
37 .Oler said increased and improved funding now allows the Wayne County Convention & Tourism Bureau to
38 expand its marketing efforts, an aggressive staff and a much higher statewide recognition is now coming
39 Richmond's way. He added that Walker is now president of the State Tourism Bureau. Oler said the City has
40 a committed administration, one that understands that jobs are created through investment and knows that
41 an investment must be made in Richmond if jobs are going to be created. He added that this administration
42 is committed to making it easier for investors to make the necessary investment. Oler said the City now has
43 a Holidome project and DFR is proceeding with the project and expected to be completed this summer. He
44 added that the Holidome will enable Richmond to have a first-class hotel adjacent to a convention center. He
45 said every study indicates the importance of having a convention center adjacent to a first-class motel.
46
47 Oler said the City now has the resources of DFR of which the primary principals are First Richmond Realtors
48 and Forbes Dodge. He noted that First Richmond is a major investor in Ohio and Indiana properties and
49 Dodge knows the hotel, restaurant and convention industry as Maring had just indicated. He said Dodge had
50 been in the industry for over 20 years and his management expertise will now be availalbe. Oler added that
51 never before had an investor stepped up who also had a convention management experience. He said this
52 proposal brings a bigger and more flexible convention center than was earlier presented, being almost 50
53 percent larger than was presented in 1989.
54
55 Explaining how the project will work, Oler said 2.49 acres will be acquired immediately south of the existing
56 Quality Inn at a purchase price of $410,000 with a bond issue of $4,700,000 and a rate of interest projected
57 at 5.85 percent. He added that the bond issue would be for a 25-year term and there would be a separate
58 contract between the Richmond Redevelopment Commission and DFR whereby DFR agrees to pay the
59 Redevelopment Commission $150,000 a year for five years toward debt service. He added that this is
60 important in that it shows DFR is dedicated because it is willing to make a significant investment of its own
61 resources in this project. He said there will be a management contract between the Redevelopment
62 Commission and DFR whereby DFR is paid a management fee under a five-year contract. He said
63 compensation wise the management contract will be in two parts which means there will be a fixed portion
64 and under this portion DFR will be paid $150,000 per year and under a separate contract, DFR pays
65 $150,000 back to the Redevelopment Commission.
1 .0
Common Council Minutes Cont'd
March 21, 1994
Page-6
2 Oler said DFR gets paid a percentage of gross revenue and the variable portion can never exceed the fixed
portion, adding that it is not a fat, lucrative contract for DFR. He asked Council where they could get a
manager of the experience of a convention center that is producing $600,000 in revenue for $20,000 per
year. He pointed out that DFR does not get financially rewarded unless significant gross revenues are
generated and does not get rewarded unless the center is successful. Oler said the primary purpose of a
7 convention center is to host conventions and meetings in order to generate economic impact to the City,
8 County and region.
1 He said that is done because there is a one time facility construction benefit and close to $2 million in payroll
1 will be pumped into the economy just from the construction. Another way is from the facility operations itself
1 through part-time and permanent employment. He added that it will generate a tremendous amount of
1 purchase of goods and services. Oler said the third way for economic impact is for direct attendee spending,
1 noting that if each person spent just $60 a day it would generate $1.5 million annually being spent in
1 Richmond. Oler said the potential and the cost to the community is $300,000 annually and that means the
117 center is bringing in five times its cost which will make a positive economic impact and an investment the
City can justify.
10
1° Citing a story about the three bricklayers, noting the difference in how things are perceived, Oler said one
20 bricklayer noted that he was merely laying bricks,the other said he was building a wall and the third said he
2 was building a cathedral. He asked Councilmembers to put in focus what is in front of them tonight, adding
2 that they are not really voting on the purchase of the land, on the building of the center, not pushing the
2 project on to the tax roles, but simply taking one small step in moving the project to the next level. He
2, explained that the legal process goes back to the Richmond Redevelopment Commission for public hearings
2• and it is his hope that at that time there will be good, healthy public debate and time given to study
20 alternative funding.
2
2: Councilmember Hutton asked if it would come back to Council for a final vote before it goes to a bond issue
2° and Oler said it would not, explaining it would go back to the Redevelopment Commission for public hearing
30 where it can be approved, amended or revoked.Then, if it is approved it will proceed for further negotiations
3 and the matter that will be coming back to Council will be the lease. Oler said there will be a lease from the
3 Redevelopment Authority and it has to be approved by Council, but the bond issue will not come back before
3 Council. Oler explained that the reason it does not come back to Council in the bond issue form is that
31 Council is not really the body that approves it as far as putting it on the tax roles, but it is the Redevelopment
I3• Commission that does that.
3
3 Councilmember McBride stated then, that a yes vote by Council tonight would be authorization for the
3 Redevelopment Commission to proceed. Oler said that Council, tonight, is approving the resolution that was
3 approved by the Redevelopment Commission and the Planning Commission to have that area declared an
4 economic development area.
4
4. Councilmember Elstro said in the past all bond issues had always come back before Council. Oler said the
4 procedure he has explained is the one set forth by ICE Miller and Associates. He added that technically the
4 lease is the only thing coming back to Council. Councilmember Dickman then asked if it is the Richmond
4 Redevelopment Authority which will actually made the decision on the bonds. Oler said it will be acquiring
4 the land and issuing the bonds and the lease comes back to Council before the bonds are let.
4 Councilmember Lundy's question was if Council goes along with this is this body saying to the
4 Redevelopment Commission to go ahead with the convention center and all Council will be getting back is
4 the lease and everything else will be handled by someone else.
5
5 Allan Stamper of 1624 Pheasant Run and representative of Baird & Associates, said the lease will come
5 back to the Redevelopment Authorty and the Redevelopment Commission. He added that Council will be
5 approving the appropriations to fulfill that lease if the revenues are insufficient to do so and at that time
5 Council will have the ability to kill the project if it so desires and if it does not believe it is not the best thing for
5 the City of Richmond.
5
5 Councilmember Donat asked if Milligan was in Council Chambers. Finding that he was not, she said she
54 understood there was some misunderstanding and she did not want to divulge a confidence but she felt the
5 need to hold off on this until she can get some answers. She continued, stating that she was told that
6 Milligan was not happy with the letter accompanying the ordinance. She made a motion that Council hold
6 this until it had a proper understanding about what it was rally committing to. She added that until a few
6 moments before, she thought Council would be voting on the bond issue later and did not realize that by
6 voting on this ordinance declaring that area an Ohioana development area that Councilmembers would be
6 committing themselves. She said she thought it would be coming back, but it seems there is a question and
6 added that she did not want this ordinance to fail tonight.
441
Common Council Minutes Cont'd
Mar-ch_21.,199_4
Page 7
1
2 Councilmember Hutton interjected that while watching television earlier in the evening, she learned that
3 Indianapolis is talking about building a new ball park and its redevelopment commission is doing the same
4 thing in that they are taking it back to Council and they,too, say it does not have to go back to Council. She
5 concluded that this must be the normal procedure.
6
7 President Parker invited Stamper to speak amd Stamper explained that Milligan's original letter had stated
8 that he wanted Council to know what it was voting on tonight-first of all, that the City would be purchasing
9 2.49 acres for the purpose of owning and operating a convention center under the City of Richmond and, if
10 there is a shortfall in the revenues that are derived from running that center that as currently proposed that
11 would go on the tax roles of the City of Richmond. Stamper said that is what Milligan wanted Council to vote
12 on. He added there was no other thing about the approval of the bond letting, noting that Council will be able
13 to kill the project completely if it does not approve the funding and does not approve the lease between the
14 Redevelopment Commission and the Redevelopment Authority as set forth in the 30-step process that has
15 been laid out by Ice Miller,the bond counsel for the City.
16
17 Councilmember Donat said, as a member of the Redevelopment Commission, she was one who voted to
18 designate that area Ohioana and bring it on to Council because she was very much in favor of a center being
19 built. However, she said, she was not able to defend and support the debt service. She added that it seems
20 there are other avenues open to pay for it, mentioning the beverage tax. She said she felt it would be
21 dangerous for Council to go on at this point because this seems to take it completely out of Council's hands
22 except for denying the lease.
23
24 Oler said he would also like to have alternative sources for funding, explaining again that the way the
25 process works is that that is to be done at the Redevelopment Commission and at that point he hopes there
26 is a good debate on the project and means of funding debt service. He added that this cannot be done at the
27 Redevelopment Commission level unless Council approves this ordinance tonight.
28
29 Councilmember Allen stated that what she believed Council is voting on is declaring this an economic
30 development area. She added that she saw no reason not to do it. Councilmember Elstro seconded the
31 motion made earlier by Councilmember Donat, noting that any one Councilmember could stop this on first
32 reading tonight and let it stay there. President Parker agreed that could be done. Councilmember Hutton
33 asked why anyone would want to stop it. Councilmember Donat said she came prepared to vote positively on
34 the ordinance because she would very much like to see the center come to Richmond, noting that it would be
35 a great asset. However, she said she had been honest with everyone who had talked with her and she could
36 not agree to committing the City to the debt service. Therefore, she said, she did not want to make a rash
37 decision tonight because she had learned something here that she did not know before. That, she said,
38 makes her feel uncomfortable with it and she would like to go up other avenues to see if either the Wayne
39 County Convention & Tourism Bureau or Representative Dick Bodiker could introduce things like the food
40 and beverage tax to the legislature.
41
42 Oler agreed with Councilmember Donat,but added that he did not know how to get to that disucssion unless
43 Council approves this ordinance tonight. He said he had a three-page outline of the steps that are supposed
44 to be taken as prepared by Ice Miller and he would be happy to share that with Council. Councilmember
45 Donat said she would withdraw her motion and allow everyone to cast their own votes, however, she said
46 she could not vote favorably for something that she is not sure about.
47
48 Councilmember Lundy merely asked for a clarification, noting that all Council will be doing by adopting the
49 ordinance is to move it on to Redevelopment Commission,then they will come back with the lease. She said
50 Council is not committing itself to the convention center but have the option to say whether or not they want
51 this. Councilmember Elstro asked if it would give Council the right to buy the land and Oler said the City
52 would not acquire the land until after the public hearing.
53
54 Reading from the process rules drawn up by Ice Miller, Stamper said Common Council adopts the ordinance
55 approving execution of the lease, assuming unanimous consent to suspend the rules and two thirds approval
56 of ordinance or following the normal three reading procedure, then it goes back to the Redevelopment
57 Commission which submits it to the tax board,then the local government property tax control board conducts
58 a hearing on the proposed lease then the tax board issues the order approving the lease. He said those
59 seven things have to happen before title insurance is done and execution of the final purchase of the land,
60 adding that the land will not be bought until the way to pay for it has been agreed upon and Council is
61 controlling the purse strings.
62
63 Councilmember Dickman moved to suspend the rules and advance Ordinance No. 24 - 1994 to second
64 reading and read by title only, second by Councilmember Brookbank and stopped by a vote of 8-1 with
65 Councilmember Donat casting the dissenting vote.
4 42
Common Council Minutes Cont'd
March 21, 1994
Page 8
1
2
1 ORDINANCE NO.25-1994
The Clerk read Ordinance No. 25- 1994 - A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF
c STATEMENTS OF BENEFITS FOR PROPERTY OWNERS APPLYING FOR DEDUCTIONS UNDER I.C.
7 6-1.1-12.1
Councilmember Donat said this goes along with the ordinance Council passed at its March 7 meeting
1 allowing council to extend the time to 10 years. She added that all of the proper forms have been received
1 by the law department and and it is ready to proceed on this which was passed unanimously by the Tax
1 Abatement Committee.
1
1 Councilmember Allen moved to suspend the rules and advance Ordinance No. 25- 1994 to second reading
1 and read by title only, second by Councilmember McBride and the motion was carried on a unanimous voice
1 vote.
1
1 The Clerk read Ordinance No.25- 1994 on second reading.
19
President Parker declared Ordinance No. 25 - 1994 on public hearing. There being no comments either for
21 or against the ordinance Councilmember McBride moved for engrossment, second by Councilmember
Lundy and the motion was carried on a unanimous voice vote.
2i
24 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 25 - 1994 to third and final
21 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.25 -1994 on third reading.
2'
3 I Councilmember Brookbank acknowledged the presence of the manager of Hill's Pet Foods in the audience
3 and expressed her appreciation for the growth of the company and what it means to the City of Richmond.
3
3: Ordinance No. 25-1994 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 ORDINANCES ON SECOND READING
3
4 ORDINANCE NO. 18-1994
4
4 The Clerk read Ordinance No. 18 - 1994 - (SECOND READING AMENDMENTS) AN APPROPRIATION
4 ORDINANCE AMENDING THE 1994 BUDGET
4
4 Councilmember Lundy moved to accept the second reading amendments in Ordinance No. 18 - 1994,
4 second by Councilmember Hutton and the motion was carried on a unanimous voice vote.
47
1Grimes explained that the last time he came to Council with the ordinance, Councilmember Donat had
requested additional information which all Councilmembers should have received in their packets. He said it
5 details all the cash balances of all the funds the City has at 12/31/94. He said he was going one step further
5 and providing Councilmembers with additional handouts tonight which take the cash balances through the
5 necessary financial calculations to get the net operating balance. (The complete list is on file in the City
5 Clerk's office).
5
5 He began with the general fund, explaining that the cash balance statement there is $734,778 cash at the
5 end of 1993 with encumberances of$162,765 which were deducted, and claims payable of $114,712 which
5t were deducted for a subtotal of cash available of $457,301. He said the total revised revenue after
certification of the State Tax Board for the general fund for 1994 was $12,415,024 and the total budget that
5 they approved was $12,543,057 which left an operating deficit of $128,033. He noted that if the deficit is
6 added to the subtotal column of the operating balance to the positive you get a net operating balance of
6 $329,268. Additionally, if you add that to the deduction ordinance figure in Ordinance No. 17 - 1994 which
6 Countil approved at its last meeting which was $161,750, you get the figure of$491,000 which is available to
6 reappropriate.
6•
6
43
Common Council Minutes Cont'd
March 21, 1994
Pag 9
1
2 President Parker declared Ordinance No. 18 - 1994 on public hearing. There being no comments either for
3 or against, Councilmember Dickman moved for engrossment, second by Councilmember McBride and the
4 motion was carried on a unanimous voice vote.
5
6 Councilmember Brookbank moved to suspend the rules and advance Ordinance No. 18 - 1994 to third and
7 final reading and read by title only, second by Councilmember McBride and the motion was carried on a
8 unanimous voice vote.
9
10 The Clerk read Ordinance No. 18- 1994 on third reading.
11
12 Ordinance No. 18-1994 was adopted on the following call of the roll:
13
14 Ayes: Elstro, Lundy, Brookbank, Donat, McBride,Allen, Dickman, Hutton and Parker(9)
15 Nays: None
16
17 ORDINANCES ON THIRD READING
18
19 There were none.
20
21 OLD BUSINESS
22
23 Councilmember Hutton asked about placing Ordinance No. 22 - 1994 in the Committee of the Whole.
24 President Parker said Council could see what figures are provided by Goodwin and he said there was no
25 need to have the meeting within the next two weeks.
26
27 MISCELLANEOUS BUSINESS
28
29 Councilmember Brookbank commented that the Bed and Breakfast at East Main and 21st Street is now
30 open. She said the house has been totally renovated by a couple in their mid-thirties who are the parents of
31 two young boys. She added that the couple loves Richmond and came here from Florida.
32
33 ADJOURNMENT
34
35 There being no further business,on a motion duly made, seconded and passed,the meeting was adjourned.
36
37
38
39
40
41
42
43 Larry Parker, President
44
45
46
47
48
49
50 ATTEST:
51 Norma Carnes, City Clerk
52
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56
57
58
59
60
61
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63
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65
444