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HomeMy Public PortalAbout09-21-1981 149 PROCEEDINGS OF, THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA, SEPTEMBER 21, 1981 . 1 The Common Council of the City of Richmond, Indiana, met in regular 2 session September 21, 1981 at the hour of 7:30 p.m. in the Council 3 Chambers in the Municipal Building in said City. President Pro-Tem 4 Ahaus presided with the following members present: Elstro, Williams, 5 Welch, Parker, Carter and Paust. Absent: Hankinson and Mills. The 6 following business was had, to-wit: 7 8 DEVOTIONS . 9 10 Councilman Carter gave devotions. 11 12 APPROVAL OF MINUTES OF SEPTEMBER 8, 1981 13 14 Councilman Williams moved to approve the minutes of the previous meeting 15 as prepared, seconded by Councilman Welch and on unanimous voice vote 16 the motion was carried. 17 18 RESOLUTION NO. 17-1981 19 20 Councilman Welch moved to suspend the rules and read Resolution No. 17- 21 1981 by title only, seconded by Councilman Elstro and on unanimous 22 voice vote the motion was carried. 23 24 The Clerk read by title only Resolution No. 17-1981 - A RESOLUTION 25 APPROVING AND AUTHORIZING CERTAIN ACTIONS AND PROCEEDINGS WITH RES- 26 PECT TO CERTAIN PROPOSED ECONOMIC DEVELOPMENT REVENUE BONDS. 27 _ 28 Speaking for this Resolution was Attorney Gayle Gardner, 302_Peoples 29 Building, acting as local counsel for law firm Ballard-Spahr, etc. He 30 read from the minutes of the Economic Development Commission meeting 31 held September 21, which approved the Resolution unanimously. Also 32 speaking in favor of the Resolution were Arthur M. Vivian, 3587 Wernle 33 Rd. , Bruce Thompson, 1492 Fairway Fr. , Lima, Ohio, President and 34 Chairman of Health Care Fund and Bruce Giles-Klein, 2101 Spruce St. , 35 Philadelphia, Pennsylvania, attorney with Ballard-Spahr. 36 37 Mr. Thompson explained that in this project Vista Pines would be the 38 "lessee", Health Care Fund would be the "lessor" and Care Centers of 39 Dayton would be the "hired manager". He stated they could be ready 40 to start the project in ten (10) days after the inducement was passed. 41 In reference to 1122 (certificate of need) , he said he feels comfor- 42 table in the fact that he is right, and if by any chance he is not, 43 he will carry the project himself, and the worst that could happen 44 would be he'd run these as private pay beds until he could get the 45 decision reversed. 46 47 Councilman Carter questioned Mr. Thompson about a letter received 48 from Th . Ellis which, in his opinion, states that Vista Pines, Inc. 49 and Care Centers, Inc. must be reviewed by the DPA to secure a Sec- 50 tion 1122 approval. 51 52 Councilman Williams asked Mr. Thompson if the home would be receiving 53 Medicade patients. 54 55 Mr. Giles-Klein stated that what the August 15, 1981 letter from the 56 Indiana Department of Health and Human Services seemed to them to 57 say was that if indeed these changes have occurred, they must go back 58 to them, but all of that assumes, he thinks, that if the changes have 59 not occurred, they have approval. 60 61 In response to questions from Councilman Parker, Mr. Thompson stated 62 his preference in a nursing home is a.mix.of 50-70% Medicade patients 63 and the remainder a mix between private and other programs. Every 64 five (5) to seven (7) years, the nursing home operators buy back the 150 • Common Council Minutes Cont'd. September 21, 1981 Page 2 1 facilities from Health Care Fund. If Vista Pines were non-profit, they 2 would probably go off the tax roles at the time they buy back the 3 operation from the Health Care Fund. 4 5 Councilman Welch asked Mr. Thompson how long it would take to obtain 6 a written opinion from his legal staff on the status of the 1122 permit 7 before you actually start construction. Mr. Thompson replied that he 8 would simply ask them for a letter which says "when the opinion is issued 9 it will contain a provision expressing our opinion that the 1122 is 10 valid. That letter would be two lines long, maybe three, I'll have it 11 in four days, three days, two days. There'll be delay on that account". 12 - - 13 Councilman Welch asked if he would be willing to attach- to the Reso- 14 tion a copy of that opinion. Mr. Giles-Klein responded that, pending 15 his partners' approval (he'.sees -no/problem with=.tha.t). but they would 16 probably reserve the right not to, should conditions change; however, 17 as of right now, they feel there is a valid 1122 approval. 18 19 In a discussion of Dr. Ellis' letter, Councilman Ahaus requested an 20 answer to a question asking if timely notice had been given to the 21 DPA prior to obligation for expenditures. Mr. Giles-Klein answered 22 he "does not accept the assumptions on which the statement is grounded. 23 The statement begins 'Given that (meaning assuming that) there are 24 changes in the capital, expenditure and a leasehold arrangement which are 25 subject to Section 1122 review' . I don't accept that. There haven't 26 been significant changes in the capital expenditures. We're well 27 within the limits on that. There is no leasehold arrangement". He 28 feels there is no review necessary. - 29 30 Councilman Ahaus asked if the proposed South 18th Parkway tould be 31 put in and how far. .Mr. Thompson replied it was a safe assumption 32 if it was on the drawings. He answered Councilman Ahaus' question in 33 the affirmative that at least the proposed South 18th Street Parkway 34 would at least be started up to the point of entrance. 35 36 Mr. Giles-Klein explained that their role of Ballard-Spahr is as 37 bond counsel and their client is the transaction and the purchasers of 38 the bonds. He stated they have investigated this thoroughly and are 39 prepared to stand behind -it, are prepared to give their opinion and 40 believes they are prepared to give Council the "comfort" letter sought. 41 42 Attorney Robert Burton, 25 North 7th St. , representing Golden Rule 43 Nursing Center, Inc. spoke in opposition. to Resolution No. 17-1981. 44 He offered an opinion in writing. He said it is necessary to have 1122 45 approval to receive Medicaid and Medicare patients and he feels Vista 46 Pines does not have that. He suggested going to the HHS to receive 47 an answer on the question of approval. Mr. Burton took exception to 48 the Economic Development Commission minutes as to what was established . 49 and what was not. He said the Economic Development Commission did vote 50 their approval of the bond issue; however, it was the way findings 51 that were made or not made to which he takes exception, and to whether 52 notice has properly been given under. Statutes. - 53 54 Following a rebut-tal by Mr. Giles-Klein, Attorney Gardner requested 55 that the tapes be retained intact. 56 57 Councilman Carter requested he be allowed to abstain from voting. 58 Councilman Paust moved to excuse Mr. Carter from voting on the issue, 59 seconded by Councilman Parker and on unanimous voice vote the motion 60 was carried. 61 62 Councilman Williams moved to table this Resolution until further 63 notices seconded by Councilman Welch. 151 • • Common Council Minutes Contld. September 21, 1981 _ • Page 3 1 Councilman Parker requested that the City Attorney would give Council 2 a legal opinion that even .if it does pass.to a non-profit organization 3 that it. should not..be. removed from the ..tax roles. Councilmen re- "' quested the City Attorney also check into the validity of. the permit 5 and to seek a written legal opinion from the HHS before the next 6 meeting. , 7 • 8 It was requested by Councilmen during. discussion. that the City Attorney 9 look into the matter to see if a valid 1122 permit •does exist for . 10 this project. 11 - 12 On a call of the roll, the motion was passed with Councilmen Elstro, 13 Williams, .Welch, Parker, Paust and Ahaus voting Aye. Noes: None. 14 The vote being-.six .(6) ayes and zero .(0.) noes. . 15 16 BOARD OF PUBLIC WORKS AND SAFETY . 17 18 ' City Engineer George Webb announced.that there will. be' a.public 19 hearing Thursday September 24 at 9:00 a.m. on Section 18, - Urban 20 Mass Transit Act, for bus subsidy, and -also a meeting -September 29 at 21 7:00 p.m. on the mew proposed bus routes .and invited everyone to 22 attend. He said that the C&0 railroad has the new crossing in on 23 South "0" St. and has .repaired. the crossing on North 3rd & "D". 24 25 . ORDINANCES ON 1st READING • 26 27 Councilman Welch moved to suspend the rules and read Ordinances No. 28 67-1981 and No. 68-1981 by title only, seconded by Councilman Williams 29 and on unanimous voice vote the motion was carried. 30 31 ORDINANCE NO. 67-1981 32 . 33 The Clerk read on first reading by title only Ordinance No. 67-1981 - 34 AN 'ORDINANCE TO APPROPRIATE WITHIN THE GENERAL FUND. 35 • r, 36 President Pro-Tern Ahaus announced this has to be advertised. 37 38 ORDINANCE NO. 68-1981 39 • 40 The Clerk read on first reading by title only Ordinance No. 68-1981 - 41 AN ORDINANCE TO TRANSFER WITHIN THE MUNICIPAL AIRPORT FUND. 42 43 Councilman Welch moved to suspend the rules on Ordinance No. 68-1981 44 and advance it to second reading, seconded by Councilman .Parker and 45 on unanimous voice vote the motion was carried. 46 47 The Clerk read on second reading_ Ordinance No. . 68-1981. 48 49 There being no one speaking for or against this Ordinance, .Councilman 50 ' Carter moved for engrossment, seconded by Councilman Parker and on 51 unanimous voice vote the motion was carried. 52 • 53 Councilman Welch moved to suspend the rules and read Ordinance No. 68- 54 1981 on _third and final reading by title only, seconded by Councilman 55 Parker and on unanimous. voice vote the motion was carried. 56 57 Ordinance No. 68-1981 was adopted by the following vote: 58 AYES: Elstro, Williams, Welch, Parker, Carter, Paust, Ahaus (7) 59 NOES: None (0) 60 ABSENT: Hankinson, Mills 61 62 ORDINANCES ON 3rd READING 63 64 Councilman Welch moved to suspend the rules and read Ordinance No. 152 Common Council Minutes Cont'd. September 21, 1981 Page 4 1 59-1981 on third and final reading by title only, seconded by 2 Councilman,Parker and on unanimous:voice vote the motion was 3 carried. 4 5 The Clerk read Ordinance No. 59-1981 on third and final reading by title 6 only - AN ORDINANCE AMENDING ARTICLE 30, THE C-1 NEIGHBORHOOD BUSINESS 7 DISTRICT AND ARTICLE 31, THE COMMUNITY BUSINESS DISTRICT, A PART OF 8 CHAPTER 154 OF THE MUNICIPAL CODE, BEING ORDINANCE NO. 2325-1968, 9 COMMONLY KNOWN AS THE ZONING ORDINANCE OF THE CITY OF RICHMOND, INDIANA, 10 ADOPTED JUNE 3, 1968. 11 12 Ordinance:No. 59-1981_was adopted by the following vote: 13 AYES: Elstro, Williams, Welch, Parker, Carter, Paust, Ahaus , (7) 14 NOES: None (0) 15 ABSENT: Hankinson, Mills 16 17 ADJOURNMENT - 18 19 There being no further business on motion duly made, seconded and 20 passed the meeting was adjourned. 21 22 Rick Ahaus 23 President Pro-Tem 24 25 ATTEST: Nancy V. Beach 26 Deputy Clerk