HomeMy WebLinkAbout01-09-12 Community & Economic DevelopmentCOMMUNITY AND ECONOMIC DEVELOPMENT 01 -09 -12
Committee Members Present: Henry Davis; Karen White; Gavin Ferlic; Dr. Fred Ferlic
Other Council Members Present: Tim Scott; Oliver Davis; David Varner; Derek Dieter;
Valerie Schey
Others Present: Mayor Pete; Dick Nussbaum; Leslie Kleppe; Andrew
Nemeth; Terry Miller; Catherine Andres; Thomas Butler;
James Lee; Kathy Cekanski - Farrand; Rita Kopala; Mike
Schmuhl; Kevin Allen; Henry Davis, Sr., Satish
Gabahawala
Agenda: Bill No. 12 -01 Tax Abatement Steel Warehouse
Bill No. 81 -11 Appropriate Chase Tower
Newly appointed Chairperson of the Community and Economic Development Committee, Henry
Davis, Jr., called his full committee to task at 4:37 p.m.
The first item on the agenda Bill No. 12 -01 was a request for a 5 year personal property tax
abatement for equipment to be purchased by Steel Warehouse operating at 1400 West Riverside
Drive in the former Lock Joint Tube Plant.
Don Inks provided the eligibility for abatement analysis prepared by the Redevelopment staff.
The report was very positive. While just over $150,000 in taxes would be abated over the 5 year
period over $146,000 new tax dollars would be generated. Additionally, 10 new jobs would be
created and 20 retained.
Chairperson Henry Davis, Jr., asked the petitioner Jerry Lerman to state his case. Mr. Lerman
gave a short description of the machinery's manufacturing application. He stated too that Steel
Warehouse had applied for numerous abatements in the past and had always met or exceeded
employment projections.
There was no one, save Inks, to speak in favor or against.
On a motion to send favorably by Councilmember Gavin Ferlic, seconded by Councilmember
White and affirmed by all the bill was sent to Council.
The second item on Mr. Davis' CED Agenda was a request to appropriate money to assist with
the rehabilitation of the Chase Tower.
This controversial issue proved to be contentious from the outset. To capture the essence of
what was at stake please refer to three attachments. One from Dick Nussbaum, an attorney
hired by the City to negotiate a development agreement for the Chase project. A second from
Henry Davis entitled Chase Tower Fact Sheet outlining what was at stake. The third is a letter
from the Mayor requesting continuance until February 27, 2012.
Chairperson Henry Davis, Jr., opening the hearing outlining the "rules of engagement" allowing
each would have an opportunity to state their case.
Mayor Buttigieg was recognized first. He promptly asked for a continuance until February 27,
2012. Chairperson Henry Davis was intent on pushing forward with a public hearing.
Councilmember Gavin Ferlic and Councilmember White both asked for clarification as to whether
a vote for continuance would preclude the public hearing. Finally Councilmember Dr. Fred Ferlic
motioned to go ahead with a public hearing for 1 hour and then agree to the Mayor's request for
continuance. Chairperson Henry Davis, Jr., called for a vote which ended in a tie.
Councilmember Dr. Fred Ferlic and Councilmember Gavin Ferlic voting for. Chairperson Henry
Davis, Jr., and Councilmember White against. President Dieter voted for to break the tie.
To begin discussion Chairperson Henry Davis, Jr., called upon Dick Nussbaum to give an
overview and perspective on the development agreement be negotiated under contract for the
City with the developer Care Hotels.
Mr. Nussbaum spoke of an $11,400,000 re- development effort for the Chase. The developer
would invest a minimum of $5.7 million to match a like investment by the City. Details in the
attachment.
Turning to Council questions, Mr. Davis recognized Councilmember Valerie Schey. She
questioned the source of funds and wondered why the Redevelopment Commission said no to
the proposed reimbursement of the source (Rainy Day Funds) by TIF funds. She also thought an
overall downtown development strategy was needed.
Council President Derek Dieter had reservations based upon what he felt were unresolved legal
issues.
Councilmember Oliver Davis wondered why delay if no other potential developers had yet to step
forward.
Councilmember Dr. David Varner had "clawback" questions should the developer not be able to
perform their end. He suggested the possibility of a performance bond to protect the City's
interest.
Chairperson Henry Davis, Jr., then asked who from the public was to speak for the development
proceeding.
Leslie Kleppe was first. She urged a decision be made now before the opportunity to work with a
developer passes.
Andrew Nemeth said the project would both protect jobs and add to the tax base.
Terry Miller urged going forward tonight or the opportunity would be lost.
Catherine Andres said the project would help keep downtown alive.
Chairperson Henry Davis, Jr., recognized three people to speak again the project.
Thomas Butler claiming affiliation with "Occupy Wall St." said public dollars should not be used to
help a private entity that had not acted responsibly.
Both James Lee and Rita Kopala felt public dollars should not be used for this purpose.
Getting back to the Council portion Chairperson Henry Davis, Jr., listened to committee members
express a need for more information.
There being no further business to come before the Council at this time, Chairperson Henry
Davis, Jr. adjourned the meeting at 5:12 p.m.
Respectfully Submitted,
Henry D vi , Jr., Cha rson
Communi y & Economic Development