HomeMy WebLinkAbout11-26-1990COUNCIL PROCEEDINGS OF THE
COMMON COUNCIL OF THE CITY
OF JEFFERSONVILLE, INDIANA
NOVEMBER 26, 1990
The Common Council of
in Council Chambers, in the City-County
Indiana, on the 26th day of November, 1990,
The meeting was called to order
Richard Spencer Jr. at the desk.
Reverend Kay McFarland of
invocation.
Mayor Orem asked all those present to pledge
flag.
The
Jimmy Carter,
Williams,
the City of Jeffersonville, Indiana met
Building in Jeffersonville,
at 7:30 o'clock P.M.
by Mayor Dale Orem and C.
7, and
Community Christian Church gave the
roll was called and those present
Marie Clapp, Ron Grooms, Tony Harrod,
and Robert Waiz.
allegiance to the
were: Councilpersons
John Perkins, Andrew
Absent: None.
Mayor Orem presented
November 13, 1990
the minutes of the
for consideration
meetings of November
by the Council.
Councilperson Harrod made the motion to approve the minutes
presented, seconded by Councilperson Grooms and carried unanimously.
Clerk and Treasurer Spencer~ presented the claim register,
several additional
as
and
claims for consideration by the Council. Following
all discussion Councilperson
claims presented, seconded
unanimously.
Carter made the motion to approve all the
by Councilperson Clapp and carried
Councilperson Williams made the motion to pass Ordinance
90-OR-55, An Ordinance Creating Redevelopment Authority on the third and
final reading, seconded by Councilperson Clapp, and opened for
discussion. Mr. Donald Day, President of the Redevelopment Commission
explained what the Commission is about and how they got to this point.
He then introduced the members of the Commission, Ms. Treva Newlan, Ms.
Betty Armstrong, and Mr. Bob Campbell. Mr. Jim Paris the fifth member
was not in attendance. Mr. David Carley of DeMars/Haka reviewed the'
master plan and Phase
with construction as
Myron Frasier of H. J.
Financing and
I financing, saying they are ready to move forward
soon as the financing process is complete. Mr.
Umbaugh & Associates summarized the Tax Increment
Tax Abatement concept. Mr. Rich Starkey, legal advisor
PAGE 2
NOVEMBER 26,
1990
from Baker and DaNiels explained the Redevelopment 6u,,,,,iooi~n duties
comparing the G~mmrl-a~ to a school building authority. Councilperson
Perkins asked how the '~ would be dissolved. Mr. Starkey
explained the ~ can dissolve itself once the purposes are
complete. Other questions were answered including whether the
~could spend money on its own which was answered with no. Mr.
Carrol Gowens, Director of the Department of Redevelopment asked for the
Council's blessings on this project. The meeting was then opened to
comments from the public. Mr. Milt Lamb spoke of the credibility of Mr.
Carley and DeMars/Haka saying Jeffersonville is very fortunate to have
this kind of people. Mr. Ron Carroll spoke of the financing saying
Jeffersonville should "get while the getting is good". Ms. Wanda Wright
read portions of a letter she asked to have included with the minutes.
Mr. Stewart Sellers would like to see the this project going. Ms. Ruth
Frederick feels the City should grasp now at this opportunity. Ms.
Marcella Bratcher stated she is tired of watching Clarksville grow and
let us do something. Ms. Sharon Martin questioned who will have the
advantage and praised the Council for looking into this in depth, asking
they vote their conscience. Mr. Wes Wright referred to the Ramada Hotel
in the area and the financial problems there. This was discussed by Mr.
Frasier and Mr. Carley. Mr. Pangborn said "let's go". Mr. Tom Pangborn
would like to see it started. Ms. Melba Doggett asked the Council to
cooperate and move forward. Mr. Walt Bales stated he would like to have
company in the area. Mr. Rick VanGilder feels there is at least 5-1 for
the project and would like to see this go. Councilperson Perkins
explained he has no doubts about the project, however he is
uncomfortable with the marriage of T.I.F. and abatement and he has
serious reservations. Councilperson Carter agrees with the observation
after doing a lot of checking, and he has not been satisfied this is the
right way to go. There being no further comments the vote on Ordinance
No. 90-OR-55 was called for. Ordinance No. 90-OR-55 passed on a 5-2
vote. Councilpersons Carter and Perkins voted no.
A recess was granted at 8:30 o'clock P.M.
The meeting resumed at 8:40 o.'clock P.M.
PAGE 3
NOVEMBER 26, 1990
Mayor Orem declared this meeting a public hearing for
Resolution No. 90-R-45, A Confirming Resolution Declaring An Area To Be
An Economic Revitalization Area. Councilperson Perkins referred to the
recent problems in Louisville asking if there might be any problems
here. Mr. Gowens explained there have been court challenges that have
help up. Attorney Fifer added to the subject reading from State Code.
Councilperson Carter inquired if Bales Motors was in the T.I.F. area.
Mayor Orem said both Bales and Hardees are in this area. Mr. Starkey
explained the court will uphold the findings of the body if not out of
line. Mayor Orem then asked for any opposition to Resolution No.
90-R-45. Mr. Fred Male of the Economic Development Commission said the
same questions had come before the Commission and had been unanimously
adopted. Councilperson Perkins spoke against the Resolution.
Councilperson Grooms made the motion to pass Resolution No. 90-R-45,
seconded by Council President Waiz, passing on a vote of 5-2.
Councilperson Perkins voted against the Resolution as did Councilperson
Carter who stated he doesn't believe T.I.F. and abatement work together.
The meeting was declared a joint session with the
Redevelopment Commision. Mr. Day called the meeting to order. The roll
was called with members Newlan, Armstrong, and Campbell present and
Paris absent. President Day introduced Resolution 14-90, A Resolution
Approving Waiver of Statement of Benefits And Allowance Of Real Property
Tax Deductions By The Common Council Of The City Of Jeffersonvilte,
Indiana. Member Armstrong made the motion to approve the Resolution,
seconded by Member Campbell, passing unanimously. Member Campbell made
the motion to adjourn, seconded by Member Armstrong, and carried
unanimously.
Councilperson Perkins questioned granting tax abatement for an
area and not by particular buildings. Attorney Filer explained new
legislation has passed that gives the Common Council the power to look
at an entire project and grant tax abatment.
to approve any changes.
Mayor Orem introduced Resolution No.
Waiving Statement Of Benefits And Granting
The Commission will have
90-R-46, A Resolution
Tax Abatement To The
Riverpointe Redevelopment
motion to pass Resolution No.
passing with a vote of 5-3.
against the Resolution.
Project. Councilperson Williams made the
90-R-46, seconded by Councitperson Clapp,
Councilperson Perkins and Carter voted
PAGE 4
NOVEMBER 26, 1990
Mayor Orem presented Ordinance No. 90-OR-58, An Ordinance Of
The City Of Jeffersonville, Indiana, Approving A Lease For The Riverside
Landing Development Project Between The Jeffersonville Redevelopment
Authority And The Jeffersonville Redevelopment Commission. Mayor Orem
has asked Mr. Gene Henstey, Ms. Bev Lane, and Mr. Bob Potter to serve on
the Redevelopment Authority. Councilperson Harrod made the motion to
pass Ordinance No. 90-OR-58 on the first and second reading, seconded
by Councilperson Clapp, passing on a vote of 5-1-1. Councilperson
Carter voted no and Councilperson Perkins abstained, stating he had not
had time to read the lease.
Mayor Orem announced there will be a public meeting of the
Redevelopment Commission and Redevelopment Authority at 4:00 o'clock
P.M., November 27, 1990.
Mayor Orem introduced Mr. Mike Harrington and Mr. Bob Lanun of
Stites and Harbison Law Firm and Mr. Doug Ralston of Proctor Davis Ray,
who along with Mr. Myron Frasier presented and explained information
regarding the financial structuring necessary to build a Wastewater
Treatment Plant. Questions were asked regarding the demolition of the
existing buildings on the land, ground contamination, and asbestos. The
contracts have not been signed for demolition or construction. The
asbestos will be removed properly and the apparent iow bidder for
construction is Hall Construction. Hall Construction has had experience
building similar plants. Mr. Ralston explained the proposed plant is
the most cost effective, and will be have expansion capabilities. Mr.
Harrington gave a presentation summarizing the bond Ordinance. The
rates necessary for this project will have to be raised 45%. Following
all discussion, Councilperson Grooms made the motion to pass Ordinance
No. 90-OR-59, An Ordinance Concerning The Construction By The City Of
Jeffersonville, Indiana, Of Improvements And Extensions Of Its Sewage
Works, The Issuance Of Additional Revenue Bonds To Provide The Cost
Thereof, The Collection, Segregation And Safeguarding Of The Interests
Of the Owners Of The Revenue Bonds, Other Matters Connected Therewith
And Repealing Ordinances Inconsistent Herewith, on the first reading,
seconded by Councilperson Harrod. The Ordinance passed on the first
reading on a vote of 5-2. Councilpersons Perkins and Williams voted
PAGE 5
NOVEMBER 26, 1990
against the Ordinance. Councilperson Williams explained he is the
representative of the area where the plant will be constructed and this
is a sore spot in the area and he will continue to not support the plan.
Mayor Orem introduced Ordinance No. 90-OR-60, An Ordinance
Establishing A Schedule Of Rates And Charges To Be Collected By The City
Of Jeffersonville From The Owners Of Property Served By The Sewage Works
Of Said City And Other Matters Connected Therewith. Councilperson
Harrod made the motion to pass Ordinance No. 90-OR-60 on the first
reading, seconded by Councilperson Grooms, passing on a vote of 5-2.
Councilpersons Perkins and Williams voted negative.
Mayor Orem asked that Ordinance No. 90-OR-61, An Ordinance
Rezoning Certain Property From R-2, Residential, To B-2, Service
Business be tabled until November 27, 1990. As this was advertised as a
public hearing on this matter opposition was asked for. There being no
response, Councitperson Harrod made the motion to reschedule, seconded
by Councilperson Waiz, passing unanimously. Mayor Orem did explain the
request. Councilperson Perkins has received a call reminding him of a
previous denial of rezoning.
Following discussion it was decided to cancel the December 3,
and December 15 meetings and schedule meetings December 12, and December
19, 1990, at 7:30 o'clock P.M. in the Council Chambers.
Councilperson Carter, Mayor Orem and Council President Waiz
have met with the County Commissioners regarding the City-County
Building space and have reached a tentative agreement. Councilperson
Carter made the motion to accept the agreement, seconded by
Councitperson Harrod. Several aspects of the agreement were discussed.
Councilperson Perkins is concerned that subsequent County Commissioners
can ask the City to vacate that portion that is now City Court.
Attorney Filer explained this would be a breach of contract.
Councilperson Perkins feels if City Court is in existence for 10 years,
the City will be ahead. He is also concerned about the City paying a
portion of the telephone operator. It is hoped once
settled talks can begin regarding the Animal Shelter~
question on the motion was then made. The motion
Council President Waiz voting no.
this situation is
The call for the
carried 6-1 with
PAGE 6
NOVEMBER 26, 1990
Councilperson Grooms would like to discuss employee insurance
at the next meeting. He then asked if the Council felt information
necessary to bid on insurance should be made available. Mayor Orem will
request the Agent of Record make this information available.
Councilperson Harrod commends Councilperson Perkins and Carter
for standing on their committments regarding the DeMars/Haka project.
Councilperson Perkins stated differences in opinion make the world go
around.
There being
Councilperson Grooms made the motion to adjourn at 10:45 P.M.,
by Council President Waiz and carried unanimously.
DALE L. OREM, MAYOR
ATTEST:
C. RICHARD SPENCER J~., Cl AND TREASURER
no further business to come before the Council,
seconded
NOVEHBER 14,1990
TO; ALL NEMBERS CITY
COUNCIL, JEFFERSONVILL
RE; RIVER POINTE PROJECT;
TO ALL MEMBERS OF CITY COUNCIL;
SINCE I ONN PROPERTY IN THE WEST ENO OF JEFFERSONVILLE, I HAVE SOME
CONCERN IN THE,aPROPOSED", DEVELOPEMENT OF THAT AREA, NOW CALLEO, RIVER
POIHTE.
AS EVERYONE KNOWS, I AM OUT OF STATE ANO THE ONLY INFORMATION I HAVE
CONCERNING RIVER POINTE IS FROH READING THE EVENING NEWS, WHICH I RELIEVE
DAILY.
I AM CONFUSED BY WHAT I READ AND ! BELIEVE OTHER PROPERTY OWNERS/TAX
PAYERS NUST BE CONFUSED ALSO.??
NY IMPRESSION MAS THAT THE DEVELOPER, DENARS-RAKA, HAD BIO ON THE
DEVELOPEMENT OF RIVER POINTE, WITH ALL OETAILS WORKED OUT PRIOR TO THE
BID OPENING.??? OVIOUSLY.NOT TRUE, ACCOROING TO RECENT NEWS ARTICLES.
IF THE PRESENT PROBLEMS WERE NOT WORKED OUT PRIOR TO BIDDING, HOW DID
THE BIDDERS SUBMIT A BID BASED ON ACTUAL COST????
THE EVEHING NEHS HEADLINES FOR. NOVEHBER 5,1990 WERE MIS-LEADING.
THE THREE MILLION DOLLARS,"UP-FRONT, WAS NOT Up-FRONT AT ALL.
EITHER THE DEVELOPER IS A HASTER MANIPULATOR OR THE EVENING NEWS IS
A PARTHER IN THE DEVELOPEMENT ????
I SUSPECT THAT THE DEVELOPER HADE THE COST ESTIMATE FOR THE CITY OF
WHAT THE STREETS AND SEWERS WOULD COST TO DEVELOPE THE,"PROPOSED' PROJECT.
IF SO, I AH CERTAIN IN MY OPIIIION THAT DOUBLE COST WAS INCLUDED IH THE
ESTIMATE.
SEVERAL POSSIBILITIES EXIST CONCERNING WHAT I HAVE READ. ALL LOOK BAD
FOR THE CITY.
THE DEVELOPER IS SAID TO HAVE UNLIHITEO SUPPLY OF FUNDS.??? IF SO, WHY
HASN'T HE PUT ANY OF HIS MONEY WHERE HIS MOUTH IS????
AT THIS POINT THE DEVELOPER HAS SAID .HIS MONEY IS IN PLACE BUT WHO
CAN VERIFY THAT????
THE DEVELOPERS PROPOSED LETTER OF CREDIT, CORPORATE GUABANTEE AND
FIVE HUNDRED THOUSAND DOLLAR RESERVE FUND WOULD NOT GO TO THE CITY
IF THE DEVELOPER FILES BANKRUPTCY . EVERYTHING WOULD GO TO THE BANK-
RUPTCY TRUSTEE TO DISTRIBUTE TO THE BANKS OR OTHER LENDING INSTITUTIONS
WITH MORTGAGES ON THE PROPERTY, THEN THE SUB-CONTRACTORS AND THE MATERIAL
SUPPLIERS WOULD RE NEXT IN LINE. LAST WOULD BE THE CITY AND NOTHING
'NOULD BE LEFT IN FUNDS FOR THE CITY.
THE DEVELOPER IS ALREADY STATING THE POSSIBILITY OF DEFAULT,(SEE EVE.
NEHS, 11/5/90), ZF DEFAULT OCCURR6D, THE CITY COULD NOT ATTEHPT TO
HAKE UP THE CONSTRUCTION LOANS ,(NATURALLY HORE THAN ONE LOAN), HONTHLY
PAYHENTS OF SEVERAL HUNDRED THOUSAND 00LLARS EACH HONTH, AND CONTINUE
FUNDING CONSTRUCTION OF THE PROJECT. (THREE HILLION DOLLARS NOULD NOT
HAKE CONSTRUCTION ,(INTEREST) PAYHENTS FOR EVEN ONE YEAR ON THE THIRTY
HZLLION DOLLAR FIRST PHASE OF THE DEVELOPEHENT).
FURTHER, NO DOUBT, THE DEVELOPER HAS SET UP A CORPORATZOH FOR THE ONE
PROJECT AND IF RE DEFAULTS IN PAYMENTS, HE ~OULB HAVE NO AUTHORITY TO
TRANSFER HIS OBLIGATIONS IN THE PROJECT TO THE CITY.
IN ADDITION TO THAT, THE CITY NOULD HAVE NO AUTHORITY TO ACCEPT THE
DEVELOPERS OBLIGATIONS, IF IT NOULD BE POSSIBLE FOR THE DEVELOPER TO
TRANSFER.
THE DEVELOPER IN DEFAULT WOULD BE FORCED [HTO [NVOLUNTARY BANKRUPTCY
BY HIS CREDITORS,(BANKS)., HATER[AL SUPPLIERS ARD SUB-CONTRACTORS.
THIS LETTER IS NY ATTEHPT TO GET THE CITY COUNCIL TO CONSIDER NHAT [
RAVE STATED, CHECK OUT THE LEGAL ASPECTS AND HAKE A REASONABLE, LOGICAL
DEC[S[DN BASED ON FACTS OF TRE CATASTROPHE NH[CH IS ADOUT TO HAPPEN
IN JEFFERSONVILLE.
PLEASE LOOK AT THE WORLD ECONOHY. EVERYTHING IS CHANGING AND THE EXPERTS
SAY THAT ALL BUSINESS HILL COHPLETELY CHANGE IN NEEDS. (THIS MEAHS THAT
COHHEBCIAL OEVELOPENENT HUST CHANGE ALSO).
SOHE,T[HE IS NEEDED TO HATCH AND SEE NHAT THE ECONOHY DEHAHDS AND ALLON
THE ECOHOHY TO RECOVER FROH ITS PRESENT SLUHP IN ORDER TO SEE HHAT ZS
BEST FOR JEFFERSONVILLE.
REHEHBER, THE HOTEL, IH THE WEST END HAS BANKRUPTED ABOUT THREE T[HES.
THE CARRIER ESTATE LOST THE LAND IN THE BANKRUPTCY, WHICH WAS LONG TERH
LEASED TO THE DEVELOPERS OF THE HOTEL. ( A DEVELOPER"S DEFAULT DESTROYS
EVERY PARTY INVOLVED). THE HOTEL IS APPROXIHATELY THE SA~.IE SIZE OF THE
THENTY THREE HILLION DOLLAR APARTHENT BUILDING PROPOSED FOR THE FIRST
PHASE OF RIVER POINTE.
/not
REHEHBER THAT THE BANKS COULD EVEN GET A ORE t~ILLZON DOLLAR OFFER FOR
THE MOTEL ,AFTER BANKRUPTCY OF THE OEVELOPER, GORDON JOYCE, ETC.
THE RE-DEVELOPEHENT DIRECTOR, CARROLL GONENS KNOWS THAT SEVERAL HILLIOH
DOLLARS WAS LOST IN THE CONSTRUCT[ON OF THE HOTEL.
CONSIDER ALLOWING CLARKSV[LLE AND LOUISVILLE TO DEVELOPE THEIR AREAS
AND THEN JEFFERSONVZLLE WOULD HAVE THE ADVANTAGE OF KNOWING NHAT IS
NEEDED TO WORK INTO THE OTHER COHPLETED PROJECTS..
~HE LAND IN THE HEST END HAS BEEN GROHING HEEDS FOR THENTY YEARS SO
HAY GET IN.A RUSH TO DEVELOPE ZNA DEPRESSION HHEN ALL SENSIBLE PEOPLE
ARE BEING VERY CONSERVATIVE HITH COHHERCIAL DEVELOPEHENT ????
I BELIEVE THE PASSING OF THO ORDINANCES, ECONOMIC DEVELOPEHENT AND
REVITALIZATION AREA 0ESIGNATIONS ARE ILLEGAL IN SEVERAL RESPECTS;
FIRST COHPLETE STUDIES AND PUBLIC HEARINGS HUST BE HELD PRIOR TO PASSAGE
OF THOSE ORDINANCES.
SECOND. NOTHING CAN BE CHANGED TO ENHAriCE THE DEVELOPER AT THIS POINT
H[TR VOIDING THE LAST RIDS AND TAKING NEH BIDS, ALLOHIXG A~tY ENHANCE-
NEWT TO RE CONSIDERED PRIOR TO BIDDING BY ALL BIDDERS.
ONCE THE BID IS SUBNITTED ON THE CIRCUNSTANCES AT THE TINE OF BIDDING
THE SUCCESSFUL BIDDER CAN NOT LATER RE-NEGOCIATE FOR A BETTER DEAL.
(A~ TAX PAYERS EXPENSE).
Itl CLOSING, I HILL SAY THAT ! BELIEVE THE COUNCIL HEHBERS AND THE CITY
HOULD BE BETTER OFF TO STOP TRYING TO PLAY BIG LEAGUE BALL HITH ONLY
ELEMENTARY SCHOOL EXPERIENCE. (AVOID BEING DRAHN INTO ONE HUNDRED
DOLLAR PROJECTS HITHOUT EXPERIENCE OF ALL THE PIT FALLS)
CAUTION HILL SAVE EMBARRASSHENT AND LIT[GATION FEES, PLUS RILLIONS OF
TAX DOLLARS FOR JEFFERSONVILLE TAX PAYERS.
THE RECENT LITIGATION IN LOUIS~ILLE CONCERNING'THE PROPOSED EXPANSION
OF THE AIR PORT IS A GOOD EXAHPLE OF CITY GOVERNHENT OUT OF CONTROL.
IF TH~ COUNCIL'DOES NOT RE-CONSIDER THE RIVER POINTE ISSUE AND HAKE
APPROPRIATE AND LEGAL CHANGES, I HILL HAVE NO CHOICE BUT TO FILE AN
ACTION IN FEDERAL COURT ATTACKING THE CITY, COUNTY, STATE, N.U.D~'AND
THE DEVELOPER. I HILL ASK FOR AN INJUNCTION TO STOP THE PROJECT PENDING
THE OUTCOME OF THE SUIT.
I HILL HAVE THE ATTORNEYS WHO HERE SUCCESSFUL AOAINST THE CITY OF
LOUISVILLE REPRESENT NY INTERESTS IN COURT. ([ HILL ASK FOR THE RETURN..
OF NY PROPERTY TAKEN ALNOST TWENTY YEARS ADO BY H.U.D. GRANTS FOR RE-
DEVELOPEHENT)
ALL LITIGATION EXPENSES CONCERNING THE RIVER POINTE PROJECT WITH ME
AS A PLAINTIFF, CAN BE AVOIDED BY THE COUNCIL'S SHOHING A.CONSCIENT-
IOUS CONCERN TO PROTECT THE TAX PAYERS OF JEFFERSONV[LLE FRON THE
HOST RENOTE POSSIBILITY OF LOSS OF TAX HONEY TO A PRIVATE
DEVELOPEHENT.
LASTLY, IT IS IHPROPER FOR REISERT REAL ESTATE TO BE INVOLVED IN ANY
DEVELDPE~ENT OF THE WEST END DUE TO HIS COHPANY AND FAHILY HEHBERS~
INCLUDING HIHSELF, BEING THE APPRAISORS FOB THE DEPARTHENT OF RE-DEVELOPE-
HENT ALHOST TWENTY YEARS AGO HHEN THE WEST END PROPERTY HAS ~AKEN ~Y
THE CITY. RESPECTFULLY, ~ ~