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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, ~ ~