01-09-12 Community & Economic Development

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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.