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HomeMy Public PortalAbout05-19-2003PROCEEDINGS OF THE COMMON COUNCIL OF THE CITY OF RICHMOND, INDIANA, MONDAY, MAY 19, 2003 The Common Council of the City of Richmond, Indiana met in regular session at 7:30 p.m., Monday, May 19, 2003, in the Council Chambers in said City. President Bing Welch presided with the following Councilmembers present: Howard "Jack" Elstro, Etta J. Lundy, Karl Sharp, Bruce Wissel, Larry Parker, Phil Dickman, Stephen H. Rabe and Sarah "Sally" Hutton. The following business was conducted: PLEDGE OF ALLEGIANCE PRAYER BY COUNCILMEMBER RABE ROLL CALL Nine present. APPROVAL OF MINUTES Councilmember Parker moved to approve the minutes of May 5, 2003, second by Councilmember Sharp and the motion was carried on a voice vote. PRESENTATIONS, MEMORIALS, REMONSTRANCES, PETITIONS AND INTRODUCTIONS MOTIONS OR RESOLUTIONS. (MUST BE IN WRITING) The Clerk read RESOLUTION NO. 5 — 2003 — A RESOLUTION ALLOWING A LATE FILED STATEMENT OF BENEFITS FORM FOR A TAX ABATEMENT FOR MACWAHOC ENTERPRISES, LLC Councilmember Wissel explained that this resolution was just received in last week's packet and in that light said that this would be handled in the usual way by the Tax Abatement Committee which is using the procedure of investigating the company requesting the late tiling request. He so moved, second by Councilmember Elstro and the motion was carried on a voice vote. The Clerk read RESOLUTION NO. 6 — 2003 — A RESOLUTION ALLOWING A LATE FILED STATEMENT OF BENEFITS FORM FOR A TAX ABATEMENT FOR SILGAN CLOSURES LLC Councilmember Wissel said he had been the one to look at company requesting this he reported that the Tax Abatement Committee would be recommending approval but wanted to point out the differences in this request and the well -publicized request that Council denied a month ago. He proceeded to explain that this is a manufacturing operation competing with jobs within the Silgan operation as well as international distribution of the product they make and this is 46 percent completed. He said changes in the ownership and control of the local plant here and for that reason the committee recommends that the request be altered to 8 years as opposed to 10 which would mean there would be a penalty for late tiling. George Quinlan, Plant Controller for Silgan, spoke in favor of the resolution. He explained all the changes that had occurred which were the reasons the application was not completed in a timely manner. Councilmember Rabe moved to approve the resolution, second by Councilmember Hutton and the motion was carried on a voice vote. COMMUNICATION FROM THE MAYOR In the absence of Mayor Shelley Miller who was attending the Forum on Poverty at the Townsend Community Center, City Attorney Bob Bever reminded the public of the upcoming improvement projects which would have some impact on traffic. He said she would ask the public to be patient, adding that there would be weekly press releases on any traffic impact as the projects progress to keep the local media up to date on those. REPORT FROM BOARD OF PUBLIC WORKS AND SAFETY President Welch said the minutes of the meetings of April 24, 2003 were in the packets. Councilmember Sharp had some questions about whether or not the improvements mentioned were located on North West 5' Street or South West 5' Street. Planning Director Bob Goodwin responded by saying that it is indeed South West 5' Street. REPORTS FROM DEPARTMENT HEADS REPORTS FROM STANDING COMMITTEES Common Council Minutes Cont'd May 19, 2003 Page 2 REPORTS FROM SPECIAL COMMITTEES REPORTS FROM ORGANIZATIONS MISCELLANEOUS BUSINESS President Welch said that last week he, along with Councilmembers Sharp and Dickman, as well as Mayor Miller, went across the street to attend the Wayne County Council meeting at their invitation. He said it was interesting that they were having a public hearing on tax abatements, one of the very few that they have during the year. He said they enjoyed the visit and intend to reciprocate by inviting the County Councilmembers to attend the City Council meeting, probably in June. He added that it is the intent to get all of the Councils involved in a special meeting. As has been his custom at the past two Council meetings, President Welch continued to remind Councilmembers of the strategic themes used in the Visioning Community. This week's theme was: "The People of Wayne County for envisioning, enjoyment and fun will have access to diverse, cultural and recreational activities." President Welch said he had two volunteers, Councilmembers Rabe and Parker, who said they would serve on a committee to look over the 113 ordinances on the books to choose which should be kept on the books and which should be stricken. He asked that both Councilmembers meet with the City Attorney and Assistant City Attorney around the first of June to go through these ordinances. President Welch announced that several members of Council would be attending the A.P.P.A. conference the third week in June and would be unable to attend the regularly scheduled Council meeting, he would suggest that meeting be rescheduled to the fourth Monday and be held on Monday, June 23. ORDINANCES ON FIRST READING Councilmember Elstro moved to suspend the rules and read Ordinances No. 39 and 40 — 2003 on first reading and read by title only, second by Councilmember Lundy and the motion was carried on a voice vote. ORDINANCE NO. 39 — 2003 The Clerk read Ordinance No. 39 — 2003 — A SPECIAL ORDINANCE CREATING A CONSERVATION DISTRICT City Attorney Bob Bever explained that he could start the discussion on this, recalling how and why the historic preservation came about, explaining that it was decided to create two different types of districts — a historic district that had more strict requirements and short of that a conservation district. He said that before anything could become a historic district it had to go through the conservation district and in a two or three year period could move on to be a historic district. Charlie Ball, president of the Historic Preservation Commission, said this should be a simple procedure because they have a property owner who has come to the Commission and requested this designation and the Commission has agreed. After comments made by President Welch and Councilmember Parker, Councilmember Dickman moved to suspend the rules and move Ordinance No. 39 — 2003 to second reading and read by title only, second by Councilmember Hutton and the motion was carried on a voice vote. The Clerk read Ordinance No. 39 —2003 on second reading. President Welch announced that Ordinance No. 39 — 2003 was on public hearing. There being no comments either for or against the ordinance, Councilmember Hutton moved for engrossment, second by Councilmember Lundy and the motion was carried on a voice vote. Councilmember Lundy moved to suspend the rules and advance Ordinance No. 39 — 2003 to third and final reading and read by title only, second by Councilmember Elstro and the motion was carried on a voice vote. The Clerk read Ordinance No. 39 — 2003 on third reading. Ordinance No. 39 — 2003 was adopted on a unanimous roll call vote Common Council Minutes Cont'd May 19, 2003 Page 3 ORDINANCE NO.40 — 2003 The Clerk read Ordinance No. 40 — 2003 — A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 Councilmember Wissel said this ordinance deals with a request for a real estate abatement for 10-years made by Macwahoc Enterprises, LLC which is a holding company for Belden. He said there would be an addition of 5 new jobs and 4 jobs retained, adding that the estimated new value is $160,000. President Welch said this ordinance, along with Resolution No. 5 — 2003, would be referred to the Tax Abatement Committee and be returned to Council on June 2, 2003. ORDINANCES ON SECOND READING AND ENGROSSMENT ORDINANCE NO. 18 — 2003 The Clerk read Ordinance No. 18 — 2003 — A SPECIAL ORDINANCE AMENDING THE ZONING MAP FOR A CERTAIN PARCEL FROM R-3 TO AN R-3 SPECIAL USE DISTRICT Councilmember Wissel reported that the Richmond Advisory Planning Commission conducted a public hearing on the ordinance on May 12. He said this petition requests a special use for an R-3 multifamily resident district for a Bed and Breakfast to be located at 2221 East Main Street. He added that notices were served to several adjacent property owners and three comments were received in favor and none in opposition. The petitioners, he said, are Chris and Jill Nelson who now operate the Bed and Breakfast at 21" and Main Street. He said the vote was 9-0 to recommend approval of the request to Council. Speaking in favor of the ordinance was Mary Walker, director of the Wayne County Convention and Tourism Bureau, who lauded the leadership and ownership of the Nelsons. Also speaking in support of the ordinance was Barry Kraemer, a neighbor of the Philip W. Smith Bed and Breakfast now owned by the Nelsons. He said he has not experienced any excessive traffic or partying or noise or anything that would be detrimental to have a Bed and Breakfast a block or two from him. Jill Nelson also spoke in favor of the ordinance and thanked the two people who spoke in favor of the ordinance, adding that she and her husband feel that this is a great opportunity for revitalization of the home which is in a neighborhood where they have lived for several years. President Welch declared Ordinance No. 18 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Elstro moved for engrossment, second by Councilmember Hutton and the motion was carried on a voice vote. Councilmember Lundy moved to suspend the rules and advance Ordinance No. 18 —2003 to third and final reading and read by title only, second by Councilmember Elstro and the motion was carried on a voice vote. The Clerk read Ordinance No. 18 —2003 on third reading. Ordinance No. 18 — 2003 was adopted on a unanimous roll call vote. ORDINANCE NO. 27 — 2003 The Clerk read Ordinance No. 27 — 2003 — A SPECIAL ORDINANCE AMENDING THE ZONING MAP FOR A CERTAIN PARCEL FROM R-3 TO AN R-3 SPECIAL USE DISTRICT Councilmember Wissel announced that apublic hearing on this ordinance had also been conducted on May 12 and this petition requests a special use district in an R-3 multiple family resident district for an administrative business office with no over the counter sales. He said it is located at 3225 East Main Street, adding that notices were mailed to adjacent property owners with three comments received in favor of the request and one opposed. The Planning Commission, he said, concluded that the request was consistent with the neighborhood and the comprehensive plan and voted to recommend approval to Council with two conditions. One of those, he said, was that a final review of the parking lot grade by the engineering department be conducted and the second, since the owner did not have a proposed occupant for this address, that it be used by an attorney, accountant, mortgage or title office. President Welch declared Ordinance No. 27 —2003 on public hearing. Dexter Melling, the owner of the property, said he would rather not have restrictions but leave it as an administrative office with no retail sales over the counter. Common Council Minutes Cont'd May 19, 2003 Page 4 Councilmember Hutton asked why the restriction was to the four occupants named. Councilmember Wissel said during the discussion, there was a concern about not having an occupant in mind. Councilmember Parker asked why they had not included insurance and travel agent to occupy that location since it is stated in the ordinance. Bever cited what was mentioned under the Indiana Code. Councilmember Wissel said that the Planning staff had recommended three of those mentioned and after asking Melling if there was a specific one he wanted included and he requested that mortgage be added. Following comments by Councilmembers Dickman, Elstro, Sharp, Wissel, Lundy and Rabe, Melling reiterated that he would rather not have any restrictions placed on this. Councilmember Wissel said that in approving something as broad as a business administrative use and a chain of adult book stores wants to put a business office in there next to it, he could see that parents of small children might have concerns about that. President Welch also added his comments in favor of the ruling of the Commission, adding that Council has to be careful as to what it allows to go into those locations on Bast Main. Speaking in support of the ordinance was Jim Backmeyer, a local realtor, who commented that Melling had put several thousands of dollars in the property in question and took it up to another level. He pointed out that Melling is a banker and is extremely well respected. Councilmember Wissel moved to amend the ordinance based upon the Commission's conditions which include the parking lot proposal and the four suggested occupants, second by President Welch. In answer to a question by Councilmember Sharp as to whether or not the suggestion of the occupancy of an insurance agency or travel agency had been mentioned at the Commission meeting, Assistant Planning Director Scott Zimmerman said that neither of those were discussed specifically. He added that before Planning Director Bob Goodwin left on vacation they talked about the potential uses that would be the most appropriate for the limited amount of parking spaces, essentially 8 spots, presented in the plan. After much discussion among Councilmembers about the motion and the possibility of adding two other uses, President Welch called for the vote on Councilmember Wissel's motion already on the floor. The vote was five in favor and four against, with Councilmembers Elstro, Lundy, Sharp, Wissel and President Welch voting in favor and Councilmembers Parker, Dickman, Rabe and Hutton voting against. Councilmember Sharp moved to amend the amended ordinance to include insurance agent or travel agency, second by Councilmember Parker and the motion was carried on a voice vote with one dissenting vote coming from Councilmember Wissel. There being no further comments either for or against the ordinance Councilmember Parker moved for engrossment, second by Councilmember Elstro and the motion was carried on a voice vote. Councilmember Parker moved to suspend the rules and advance Amended Ordinance No. 27 — 2003 to third and final reading and read by title only, second by Councilmember Rabe and the motion was carried on a voice vote. The Clerk read Amended Ordinance No. 27 — 2003 on third reading. Amended Ordinance No. 27 —2003 was adopted on a unanimous roll call vote. ORDINANCE NO. 30 — 2003 The Clerk read Ordinance No. 35 — 2003 — A SPECIAL ORDINANCE AMENDING THE ZONING MAP FOR A CERTAIN PARCEL FROM R-2 TO R-2 SPECIAL USE DISTRICT Councilmember Wissel explained that a public hearing on the above ordinance was conducted on May 12, 2003 by the Richmond Advisory Planning Commission. He said the petition requested a special use in the R-2 multifamily resident district for a First Call Home Health Care and Hospice located at 1631 Chester Boulevard. He said notices had been sent to adjacent property owners with one comment received in favor and one against. He said the Commission voted 9-0 to recommend the ordinance to Council. Speaking in favor of the ordinance was Jim Backmeyer, who said the use of the property is consistent of the property uses on Chester Boulevard and in answer to a question by Councilmember Parker said it is strictly administrative. President Welch declared Ordinance No. 30 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Lundy moved for engrossment, second by Councilmember Elstro and the motion was carried on a voice vote. Councilmember Lundy moved to suspend the rules and advance Ordinance No. 30 — 2003 to third and final reading and read by title only, second by Councilmember Sharp and the motion was carried on a voice vote. The Clerk read Ordinance No. 30 — 2003 on third reading Common Council Minutes Cont'd May 19, 2003 Page 5 Ordinance No. 30 — 2003 was adopted on a unanimous roll call vote ORDINANCE NO. 35 — 2003 The Clerk read Ordinance No. 35 — 2003 — A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 Councilmember Wissel explained that this ordinance deals with a tax abatement request made by Silgan Closures, LLC which has several plants and has transferred jobs from two different states. He said their wage is considerably higher than the average industrial wage that the committee bases things on and they have a good health insurance benefit. He said he had toured the plant with George Quinlan and had gone over the procedures on the late tiling which was heard earlier in the resolution . Councilmember Wissel also said that a mistake had been found in the math on the ordinance and moved to amend the estimated new value from $1,625,871 to $2,075,871, second by Councilmember Sharp and the motion was carried on a voice vote. A second amendment was presented by Councilmember Wissel who moved to amend the equipment request from 10 years to 8 years, second by Councilmember Parker. Councilmember Rabe commented that it was his feeling that Council should waive the state guideline and grant the full 10-year abatement, adding that he would be voting against the amendment. President Welch stated that Silgan had had prior notice of the abatement and had their financial people and controller been "on the ball" they would have filed the request for the tax abatement on time. The amendment was adopted on an 8-1 voice vote with Councilmember Rabe voting against. President Welch declared Amended Ordinance No. 35 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Parker moved for engrossment, second by Councilmember Wissel and the motion was carried on a voice vote. Councilmember Dickman moved to suspend the rules and advance Amended Ordinance No. 35 — 2003 to third and final reading and read by title only, second by Councilmember Rabe and the motion was carried on a voice vote. The Clerk read Amended Ordinance No. 35 — 2003 on third reading. Amended Ordinance No. 35 —2003 was adopted on a unanimous roll call vote ORDINANCE NO. 36 — 2003 The Clerk read Ordinance No. 36 — 2003 — A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 Explaining this ordinance was Councilmember Wissel who said it deals with real estate and is a request made by Masterbrand Cabinets, Inc. saying they anticipate 8 new jobs and the retention of 364 and an estimated increase of $550,400. He said the equipment is listed on a separate ordinance which is Ordinance No. 37 — 2003 which is to follow this one. Councilmember Welch said that in addition, the organization is going through an expansion on their floor staff where they have just hired 10 additional people and will be hiring another 10 not related to this expansion but they are a growing business. He said that in the last year they have gone from manufacturing 1,100 cabinets a day to 1,300 so they are in an economic surge right now. He said the Tax Abatement Committee recommended that Council approve the request. He commented that the next ordinance deals with a 10-year tax abatement request for new equipment and the request is for $738,000. Speaking in favor of the ordinance was Clayton Shimmel, General Manager of Masterbrand Cabinets, LLC, who said he had a point of clarification, commenting that the increase employment in the company's customer service area in the first year would be an additional 8 and over the three-year period there would be a total of 23. Also speaking in favor of the ordinance was Dan Craston with the Economic Development of Wayne County who stated that the company's customer service is an integral part of the manufacturing process so it is more than just a normal customer service operation. President Welch declared Ordinance No. 36 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Elstro moved for engrossment, second by Councilmember Lundy and the motion was carried on a voice vote. Common Council Minutes Cont'd May 19, 2003 Page 6 Councilmember Lundy moved to suspend the rules and advance Ordinance No. 36 — 2003 to third and final reading and read by title only, second by Councilmember Elstro and the motion was carried on a voice vote. The Clerk read Ordinance No. 36 — 2003 on third reading. Ordinance No. 36 — 2003 was adopted on a unanimous roll call vote. ORDINANCE NO. 37 — 2003 The Clerk read Ordinance No. 37 — 2003 — A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 Councilmember Wissel explained that this ordinance deals with a request for $738,800 but on the last sheet on the ordinance there are three items which include computers which are not abatable so by adjusting that amount it would reduce it to $505,000. He moved to amend the ordinance to change that total to that amount, second by Councilmember Dickman and the motion was carried on a voice vote. In double checking, Councilmember Wissel found that there had been a mistake in his calculation and moved to change the amendment from $505,000 to $675,000, second by Councilmember Dickman and the motion was carried on a voice vote. President Welch declared Amended Ordinance No. 37 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Parker moved for engrossment, second by Councilmember Rabe and the motion was carried on a voice vote. Councilmember Parker moved to suspend the rules and advance Amended Ordinance No. 37 — 2003 to third and final reading and read by title only, second by Councilmember Sharp and the motion was carried on a voice vote. The Clerk read Amended Ordinance No. 37 — 2003 on third reading. Amended Ordinance No. 37 —2003 was adopted on a unanimous roll call vote ORDINANCE NO. 38 — 2003 The Clerk read Ordinance No. 38 — 2003 — A SPECIAL ORDINANCE AUTHORIZING THE APPROVAL OF A STATEMENT OF BENEFITS FOR A PROPERTY OWNER APPLYING FOR DEDUCTIONS UNDER I.C. 6-1.1-12.1 President Welch explained that this ordinance deals with a request made by Grigg Smith Industries LLC, saying that there would be four retained jobs being brought to the City and estimated the new value of the equipment is $209,000. He said this basic company has been a transferred company coming in from Akron, Ohio. He said the Economic Development Corporation has been working with Dr. Smith, the principal owner of the corporation, adding that he has been a local physician for about 15 years. President Welch said this company was originally founded and established by Pfizer Pharmaceutical Company to develop and manufacture a laminated plastic product that acts like an adhesive tape that holds the bags to the bodies of individuals who have had colostomies. He said Dr. Smith bought the patent rights to this particular product and bought the equipment and made the decision to relocate the company to Richmond. President Welch said that the EDC assisted in the relocation of that equipment and through some contact established a location for them to be an incubator company in the existing company in Richmond, adding that that company is Primex Plastics. He said Dr. Smith and his corporation would be located in the Woodruff Building in the eastern industrial park area and Primex would be furnishing the space for the company to locate in as well as furnishing the labor consisting of up to 6 people on initial startup with the Grigg Smith Industries, LLC paying a fee for each pound of extruded product that would be made by Primex and its employees. In his request Dr. Smith had included $20,000 in real estate improvements and President Welch said he told him that since he does not own the real estate he could not ask for that abatement. However, Dr. Smith explained that the $20,000 covers the putting in the electrical control boxes, junction boxes, conduit and perhaps adding venting fans in the area where the extrusion would be taking place. With that explanation, President Welch moved to amend the ordinance to add the $20,000 under equipment, changing the final total to $229,000, second by Councilmember Parker and the motion was carried on a voice vote. President Welch declared Amended Ordinance No. 38 — 2003 on public hearing. There being no comments either for or against the ordinance Councilmember Sharp moved for engrossment, second by Councilmember Dickman and the motion was carried on a voice vote. Common Council Minutes Cont'd May 19, 2003 Page 7 Councilmember Parker moved to suspend the rules and advance Amended Ordinance No. 38 — 2003 to third and final reading and read by title only, second by Councilmember Sharp and the motion was carried on a voice vote. The Clerk read Amended Ordinance No. 38 — 2003 on third reading. Councilmember Wissel stated that his wife is the in-house counsel for Primex Plastics and asked Council for its permission to allow him to abstain on the vote of Amended Ordinance No. 38 — 2003. On a unanimous voice vote of Council the permission was allowed. Amended Ordinance No. 38 — 2003 was adopted on an 8-1 roll call vote with Councilmember Wissel abstaining. ORDINANCES ON THIRD READING None CALL FOR ADJOURNMENT There being no further business, on a motion duly made, seconded and passed, the meeting was adjourned at 9:30 P.M. Bing Welch, President ATTEST: Norma Schroeder, Clerk