Loading...
HomeMy WebLinkAbout1997-05-20 MinutesA MEETING OF THE CITY COUNCIL A meeting of the Fayetteville City Council was held on Tuesday, May 20, 1997, at 6:30 p.m., in the Council Room of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Mayor Fred Hanna; Aldermen Trent Trumbo, Donna Pettus, Stephen Miller, Kit Williams, Heather Daniel, Cyrus Young and Randy Zurcher; Assistant City Attorney LaGayle McCarty; Marie Mitchell; staff; press and audience. ABSENT: Alderman Len Schaper Mayor Hanna called the meeting to order with seven alderman present. OLD BUSINESS ANNEXATION RZA97-4 Mayor Hanna introduced an ordinance annexing approximately 30 acres located north of Mt. Comfort Road and west of Salem Road as requested by Michele Harrington on behalf of Prestige Properties. Alderman Williams moved to suspend the rules and go to the second reading. Alderman Miller seconded motion. Upon roll call, the motion passed on a vote of 7 to 0. Assistant City Attorney LaGayle McCarty read the ordinance for the second time. Mayor Hanna asked for comments from the audience. Alderman Williams moved to suspend the rules and go to the third and final reading. Alderman Pettus seconded motion. Upon roll call, the motion passed on a vote of 7 to 0. Assistant City Attorney McCarty read the ordinance for the third time. Mayor Hanna called for the vote. Upon roll call, the ordinance passed on a vote of 7 to 0. ORDINANCE 4036 APPEARS ON PAGE OF ORDINANCE BOOK 1 137 May 20, 1997 CONSENT AGENDA Mayor Hanna introduced consideration of items which may be approved by motion or contracts and leases which can be approved by resolution and which may be grouped together and approved simultaneously under a consent agenda: A: Minutes of the May 6 regular City Council meeting. Alderman Daniel moved to pass the Consent Agenda Alderman Miller seconded. Upon roll call, the motion passed on a vote of 7 to 0. NEW BUSINESS COURTHOUSE ANNEX RENOVATION r Mayor Hanna introduced a resolution awarding a contract to Buildings Inc. in the amount of $315,225 for the renovation of the Courthouse Annex building for operations of the Northwest Arkansas Free Health Center and approving a budget adjustment in the amount of $41,295. Administrative Services Director Ben Mayes stated the Council toured this on Council Tour. He introduced the people present to Answer questions:. Richard Alderman, the architect; Jan Simco, Community Development Director; and Jessie Bryant, Director of the. Free Health Clinic. Alderman Pettus questioned the fact that the lease was a twenty year lease and expressed concern about the City spending $300,000 and then having the lease cancelled on us. Alderman Daniel stated the lease from the. County is just pittance, sort of a symbolic amount. Jan. Simco stated the lease is $1.00 per year. Neither party can break the lease the first 10 years. After that, if the County decidesithey want the building back, then they agree to repay a portion of the money that was spent on the building. Alderman Pettus asked how much. Simco stated we amortize that at 5% each year for the 20 years. Alderman Williams stated after 10 years, they'd have to pay half the money back? - Simco agreed. 1.39 May 20, 1997 Mayes stated after 20 years, it would all be gone. That's a number we did discuss with HUD who is backer of this HUD Community Block Grant Money and they agreed to a minimum of ten and we went ahead and made the lease for 20 years and felt like that was going to be the approximate life of the improvements. Alderman Pettus stated the County can't change their minds before 10 years is up and condemn the lease because they need the space for any reason. Simco agreed and stated if they do change their mind after 10 years, then they have to pay us back a portion. Alderman Williams expressed his support for the project. Alderman Daniel asked if the renovation would allow for an increase in services to the people. Jessie Bryant stated yes. Alderman Pettus asked if there had been any exploration in just building a building. Simco stated the cost of the land was going to be so much that we couldn't get the size of the building that we wanted if we had to buy the land too. Alderman Williams stated the Courthouse Annex is a good location. In response to another question from Alderman Pettus, Simco stated this building has about 7,000 square feet and that's about what we need for the Free Health Center. When you consider cost per square foot to build plus the cost to buy land, we just didn't' have enough money. Alderman Young expressed his support for preserving the old Armory. In answer to a question from Alderman Miller, Simco stated we have about 180 days construction. Alderman Daniel asked if parking was a problem there. Simco stated there is a parking problem in front of the building, but Jessie has a clinic on Thursday evening, I believe, and so that frees up some more space. Alderman Daniel asked what the hours would be. 3 140 May 20, 1997 Bryant stated every day from 8:30 a.m. until 4:00 p.m. There are two clinics a week: The medical one is on Wednesday afternoon from 1:00 p.m. to after 3:00 p.m. Thursday evenings we start at 4:30: pr and we go until everybody is seen. Bryant explained that the evening clinic is convenient for people who work. Alderman Williams stated there are gravel. parking lots behind the building too that are accessible to the public. In answer to a question from Alderman Daniel, Bryant stated dental services are available Monday -or when a dentist is available. Clinics are held as volunteering professionals are available. There is a waiting list of people that need a dentist. Alderman Zurcher asked for comments from the architect, Richard Alderman. Alderman stated there was a preliminarystudy of what it would cost to move out from the area that they're in and to buy a piece of property somewhere and build another building. We estimated it was going to cost somewhere between $500,000 and $600,000 to move in a new building with the type of square footage they were looking for. We are able to do this one for close to'half that amount. Another benefit of the project is that it is taking an old building that was getting pretty run down and getting some new life in it. The building is really not going to change a whole lot from the outside. Alderman reviewed some of the details of the interior renovation. Alderman Trumbo made a motion to approve the resolution as presented. Alderman Zurcher seconded the motion. Upon roll call, the motion passed on a vote of 7 to 0. RESOLUTION 47-97 AS RECORDED IN THE CITY CLERK'S OFFICE, WASTEWATER TREATMENT PLANT IMPROVEMENTS Mayor Hanna introduced a resolution accepting odor control improvements at the City of Fayetteville Wastewater Treatment Plant and approving the final payment to OMI for the odor control improvements. Alderman Miller stated he would be abstaining from discussion on the item. 4 141 May 20, 1997 Alderman Williams explained he has had positive feed back from people in the area and stated it seems like there's a very substantial improvement in the odor control. Kevin Crosson stated Billy Ammons with OMI is present to answer any questions about the project. Mayor Hanna asked for comments from the audience. Alderman Young moved to accept the resolution. Alderman Daniel seconded. Upon roll call, the motion passed on a vote of 6 to 0 with Alderman Miller abstaining. RESOLUTION 48-97 AS RECORDED IN THE CITY CLERK'S OFFICE. REZONING RZ97-6 Mayor Hanna announced that the rezoning request for property located east of Cato Springs Road and south of Treat Street has been postponed until the next Council meeting. REZONING APPEAL Mayor Hanna introduced consideration of an appeal of the Planning Commission's decision to deny Rezoning RZ97-5 as requested by Michele Harrington on behalf of Prestige Properties, Development & Construction, Inc. for property located north of Mt. Comfort Road and west of Salem Road. In answer to a question from Alderman Zurcher, Michele Harrington explained she wanted to revise the request to R-1 because her client is looking at doing a PUD after the discussions at the last Council meeting. R-1 would be sufficient to accomplish the result. Alderman Zurcher stated there seems to be a lot of homes that are for sale, for rent, and that are still being built right now out there. I think we're over building in this area. We are beating our infrastructure. This would add some traffic on those roads that we're just not ready for out there. Also, there are some lakes there in danger that are habitats for ducks and geese year round. Harrington explained the lakes would be preserved as part of the PUD. Mayor Hanna asked for comments from the audience. 5 R'ki42 • i . R May 20, 1997 Jim Kimbrough, 2420 N. Salem Road, stated he was in agreement with the change of request inthedensity. The density change doesn't address all the problems associated with this development, but'it goes a long way toward making them acceptable: He explained -his main concern is the pressure on the traffic situation out there. Kimbrough asked if he could show a three minute video. Kimbrough stated Salem Road,where this development will exit out onto, is 20' wide. Mt. Comfort Rd. is 22' wide where is intersects with Salem Road. Mt Comfort Road.receives traffic from nine subdivisions, 72 mobile homes, inbound Tontitown and Wheeler traffic. Traffic avoiding the situation at the intersection'of S. Salem Road and Wedington detour onto Mt. Comfort Road. Mayor Hanna stated the City is aware of the problem at the intersection at Mt. Comfort and Salem Rd. Public Works is already doing a survey on that intersection to widen it. That situation should be improved before any houses are built in the subdivision. Tfiere was a three minute video presentation of the intersection of Salem Road and Mt. Comfort Road. In: answer to a question from Alderman Daniel Kimbrough stated =^there are small shoulders on Salem Rd. In answer to a question from Alderman Daniel, Little stated we're receiving the R -O -W as each property develops and so as they're requesting to be annexed into the City and as they come to the City for their development approval we're receiving the R -O -W as a grant to us. As long as the property to the West remains in the County, we won't have that R -O -W but right now you realize that farther to the West doesn't have an access so having that street there is a great benefit. It gives those properties frontage. These properties have frontage on Salem Road. :In the future these properties will have frontage on this other street, as yet un -named. And more than likely, they'll petition to be annexed into the City just like this has. Alderman Williams expressed his support for an R-1 zoning and a PUD development at the location in question. Harrington stated we'd still like to address the same market, which is going to be a slightly lower level than the houses that are currently being built. This will bea different market than the ones being built currently. Hopefully, it will not result in over- built empty houses because they'll be different people looking at these that cannot afford the ones that are there, for the ones that are being built. Harrington requested that the Council place the ordinance on its second or third reading if possible. 6 143 May 20, 1997 Assistant City Attorney McCarty read the ordinance for the first time. Mayor Hanna asked for comments from the audience. Alderman Trumbo motioned to suspend the rules and go to second reading. Alderman Pettus seconded. Upon roll call, the motion passed with a vote of 6 to 1 with Alderman Zurcher voting no. Assistant City Attorney McCarty read the ordinance for the second time. Members of the Council expressed their desire to leave the ordinance on its second reading until the next meeting. Mayor Hanna stated the ordinance will be on the third reading at the next meeting. APPEAL - MEADOW BROOKS L.S.D. Roy Stanley stated on behalf of Meadow Brook Apartments, we are appealing the Planning Commission's decision to deny the Large Scale Development. In the last four years, this is the only LSD that has been approved by City Planning that has been voted down by the Planning Commission. Out of 166 large scale developments that have gone to the Planning Commission from 1994 to current date, this is the only one that has been denied. To the best of our knowledge, this development has complied with all city ordinances. It was zoned R-2 in 1976, so for the last 21 years it has had the appropriate zoning to put in a multi -family development of up to 24 units per acre. Our proposed development has approximately 10 units per acre. The density is much less than allowed by the current zoning. The drainage issues have been taken care of according to the city ordinances. Stanley explained the site contains a little over 13 acres immediately north of Ramey Jr. High School and just West of Sang Ave. Stanley stated the proposal has 120 apartment units. We have received, from the State of Arkansas, approval for low-income housing tax credits. This makes housing affordable for the low to moderate income person. It's the only one that's been approved by ADFA for Washington County this year. If the opponents of this apartment community are successful in defeating it, then that means there will not be any new development for low to moderate income housing in Fayetteville, or Washington County this year. When we talk about low income housing, there are guidelines that are set up by the Federal Government. There are three kind of basic types of assisted housing. One is that the government owns the housing itself. Another is to give a subsidy directly to the renter and 14 May 20, 1997 let that renter take it to the different places he wants to rent. The one proposed is. under Title 42; the Internal Revenue Code and it's a direct contribution in terms of tax credit to allow the owner to raise capital throughthe sale of those credits so that he can then offer quality housing to residents for below market rates. The Arkansas Development Finance Authority has approved this as the only one for Washington County, other than that elderly development. In answer to a question from Alderman Daniel regarding Title 42, Stanley stated Section 42 of the Internal Revenue Code is an Internal Revenue Code provision, but it's administered bythe states. In Arkansas, the Arkansas Development Finance Authority is the agency that administers the tax credits. It receives applications and we submit applications. It evaluates those applications based on the merits of their particular development and ours was awarded Reservation Tax Credits. What this means is that the developer is given tax credits over a 10 year period. Now tax credit is a dollar for dollar reduction in your Federal Income Taxes. The developer can sell those to syndicators who will then sale them to individuals, like yourself, or to corporations, and they can use them to offset their income taxes so that thecapital that we derive from selling those up -front we can put against our development cost. If we were to build this identical property some where else without the tax credits, then it would mean we would have to charge probably $50-60 per month additional rent to cover the additional expenses. So this is a way that .we can provide quality housing to people for less than market rent. Now the other side of that is that those apartments are going to be restricted for the next 20 years to being occupied by people who not more. than 60% of the median income for this area. The median income for this area is $39,100 per family of four for 1 year. If you make that amount, then half the people make more than you; half the people make less than you. That is scaled down depending upon the number of people living in the apartments, so, for example, 'a single person living in a one bedroomapartment could make $7.89 per hour working full time, 40 hours per week and could live in one -of our apartments. If they made $7.98 they couldn't.- It's a way to provide quality housing for less than they would pay at a comparable apartment. Alderman Daniel asked what the rent range would be. -Stanley stated the allowable rent would be $366 for a one bedroom -'and our=rents will be from $290-335. The two bedroom allowable ,,.would be $438; ours will be $335-390. We are pricedbelowwhat the allowable rents could be for low income housing. Then market rate rents; of course, do not have a cap, it's just whatever the market would bear. Typically, these are going to rent for about $50-60 8 145 May 20, 1997 less than they would if they were in the same location or comparable location without the low income housing assistance. Alderman Daniel stated all the units are going to come under this tax? Stanley stated yes. Alderman Pettus asked if the Council needed to vote to hear the appeal. Mayor Hanna stated this is a 2 -step process. First, the Council has vote to hear the appeal. Members of the Council expressed their views on whether to hear the appeal or not. Alderman Daniel moved for Council to hear the appeal. Alderman Pettus seconded. Upon roll call, the motion was tied 3 to 3 with Alderman Young abstaining. Mayor Hanna voted to hear the appeal. Mayor Hanna stated now the item before the Council is the appeal from the Planning Commission's denial of the Large Scale Development. Alderman Zurcher stated he whole-heartedly supports affordable housing for lower income people. It should be built nice and in a way that preserves the natural environment. We have this written into the law. There are several places where this thing breaks City ordinance. He read several code sections regarding grading and clearing. He stated this plan has excessive grading, excessive clearing, excessive filling, and excessive cutting and the Council should not hear the appeal. Alderman Williams stated he was concerned with the fact that the Council with almost no discussion decided to hear the appeal that the Planning Commission voted almost unanimously to oppose. The Planning Commission deals with these issues on a regular basis, and the Council should have had more careful discussion and consideration and allowed members of the public and not just the proposer to speak before deciding to take over the Planning Commission's role. Alderman Trumbo disagreed. He stated the Planning Commission might not have had the legal counsel that the City Council asked for in terms of has the developer abided by all the City ordinances, rules, and regulations. He stated the legal response was there may not be enough ammunition to defend this in a court case, based on the fact that they have followed our present ordinances. We don't 9 May 20, 1997 have a hillside ordinance at the present time. Mayor Hanna stated he could not recall the City Council refusing to hear an appeal, either way. He felt it was proper to hear the appeal. Mr. Stanley stated they have agreed in their tax creditapplication to reserve two units for occupancy by handicapped persons. The developers have agreed to equip at least two of the apartments for handicapped persons. Mr. Stanley contrasted his design with that of a hillside development he saw presented to the Planning Commission which was nestled back into the hill and showed a single occupancy dwelling with three levels and two staircases. His apartments are two levels, with a walk up for people physically able to walk up and for those who are not, an accessible route from their vehicle to and through their apartment. Mr. Stanley stated the cost of compromise would have to be passed on. They could not put that kind of dollars into that kind of development and still rent to people under affordable housing limits. If the Council is saying this is the kind of building that must be built, they are insisting on getting away from affordable 'housing. Alderman Zurcher agreed the density might have to be dropped to work with the land, however the land does not have to be altered. Cutting and filling that much land would cost more than having an. architect design a building to fit the hills. Mr. Stanley stated he saw the purpose of the Council being to look back at the Planning Commission's decision and see if the Planning Commission acted within parameters of the law. This development satisfies every ordinance. The City ..has specific ordinances dealing with grading and drainage. These have been followed. Under every rule of construction he is familiar: with, if there is a general statement and are specific identifiable, objective criteria to follow, then the identifiable, objective criteria. rule. The developers have followed the standards promulgated by the City. Alderman Williams stated the ordinance should be read as a whole, not looking at just the specific but also at the general requirements. He did not perceive a conflict in the ordinance, both should be followed. Mr. Stanley stated he would defer to the City Attorney for his interpretation and encouraged the Council to listen to it. 10 147 May 20, 1997 Mr. Stanley stated that to the extent the Council can consider things other than lust that particular piece of ground, he'd like for the Council to consider the cost in human and economic terms. The development Mr. Zurcher and others recommend is not economically viable. He cannot pay those costs and recover the investment with any hopes of making a profit. If they cannot build them, the school district will be deprived of about $22,500 a year in tax revenues. The City will be deprived of $28,800 for park land. Alderman Williams stated that when the parks question was presented to this Council, Mr. Lindsey said he could build two fewer units. This could be more what the Planning Commission was wanting. This could be financially feasible, as Mr. Lindsey presented it as an option. Alderman Zurcher stated that someone had mentioned to him that the 2020 Plan discourages any development on a grade of 18% or better. Alett Little agreed this is a general policy adopted as part of the 2020 Plan. As with any policy in the Plan, we look to the regulations that implement them. Alderman Pettus asked Assistant City Attorney McCarty if all the Council was supposed to be deciding was whether or not the Planning Commission made a proper ruling within the ordinances. Assistant City Attorney McCarty replied this is correct and stated that in Section 159.54 there are six reasons set out that a large scale development can be refused or approved on. She read them to the audience. Alderman Pettus asked staff if the developer refused to comply with any of these conditions. Alett Little, City Planning Director, stated the staff cannot substitute its judgement for the judgement of the Planning Commission. While staff recommended approval, the Planning Commission came to a different conclusion. Alderman Pettus stated the minutes of the Planning Commission focused on the general intent, not these particular reasons. Little stated the second reason in Section 159.54 refers to other ordinances. Chapter 161 is the land alteration guide which is referred to in grading. She stated it was her opinion, from being at the meeting, that they determined the provisions of Chapter 161 were not being met. 11 148 May 20, 1997 Alderman Miller stated the glaring problem is that although they will do excessive cutting and grading and clearing, they are not going to allow landslides, flooding, runoff, degradation of water quality, or erosion and sediment in storm sewer systems_ or. water storage basins as addressed in 161.01(B). This is the glaring problem with 161.01(B). Mr. Lindsey is complying with the law. Alderman Pettus agreed but felt that the Council is legally required to approve the development. She felt it could not be defended in court. Alderman Miller asked Mr. Lindsey about his statement that as long as the public behaves in the park he would build, he would not keep them out. Mr. Lindsey said he'd put that in writing. Alderman Miller asked if it would be okay to take school -size groups up there. Mr. Lindsey replied absolutely. They would work with the school system. AIdeiman-Daniel asked if Mr. Lindsey had received any input frog the two private properties this development .will be going around. Mr-. Lindsey replied they had gone to see these people inadvance of doing this project and asked if they had interest in selling. They voiced no interest in selling. All back in behind them would be natural - Alderman Zurcher asked what percentage, including where the development is, would be cut and fill. Mr. Lindsey stated that any project he does has two guidelines: where the water comes on and where it goes off the grade can't change. The cut and fill is adjusted so that water comes on.at.the same elevation and leaves at the same elevation. In between, the cut and fill is balanced so that people can get out of their cars and get to their units without using steps or an obstacle course. He did not know the exact percentage of cut and fill on this project. John Williams, 140 N. Sang. Avenue, read and commented on a letter he'd written to the Mayor and Council. He then addressed the question of there being no specific law dealing with some of the questions brought. up. He did not believe the best service to the City of Fayetteville would result from careful and narrow interpretation of what is legal and what is best for the City. 12 149 May 20, 1997 Lamar Pettus, school board member, pointed out that when Vandergriff Elementary School was built it was taken to the high traffic area. For Holcomb Elementary, the school board went to the subdivider and asked for 15 acres to put the school in the high traffic area. The concept of not putting subdivisions against the schools doesn't hold water. We want our schools in high traffic areas, preferably where children can come back in the evenings and use the playgrounds as parks. Jeff Erf, 2711 Woodcliff Road, had a procedural question. He stated he had a copy of Mr. Lindsey's application for low income housing tax credit which indicated he had a commitment from Mcllroy Bank and Trust for $2 million. Mr. Stanley answered they did have an agreement to fund the first phase and have added a second phase to bring it to a 120 units and now have a commitment for loans to fund the whole thing. Mr. Erf stated his understanding is that Mayor Hanna is on the board of directors of Mcllroy Bank and asked if anyone considered that a conflict of interest. Mayor Hanna stated this is the first he's heard about this. Robert Albertson, adjoining property owner, asked the Council to respect the thinking of its peers on the Planning Commission that rejected this. The fact that this was reversed and no others have been is a red flag. He stated the issues for him are land use and impact on the neighborhood, particularly traffic. This would be put in a place not comfortably served, and the City will have to pay for proper streets to get people to these apartments. Traci Slattery, a teacher at Ramey Jr. High, explained she was in favor of a park being developed in the area. Slattery expressed concern about possible traffic problems and suggested the City should investigate an extension of Stone Street to the west. Reviewing comments from the Planning Commission minutes, Slattery expressed concern about different interpretations of the Grading Ordinance. Slattery stated the ordinance could be worded in such way as to be something that can only be proven after a landslide or flooding or excessive run-off or degradation of water quality or erosion would happen. Mayor Hanna explained that the City's engineers do studies to prevent something like that from being built. Slattery also expressed her concern that the design of the project does not seem to be for this particular site so it does not conform to the natural contours of the land. 13 n i1.5V May 20, 1997 Phillip Maynard stated it would appear that Mr. Lindsey has met the letter of the law, but the Council did consider a moratorium on` large scale construction on large grades. Itwas a few months ago and that the moratorium was deemed unnecessary by the City Council because the Ordinance stating the grading and cutting covered that. Alderman Pettus stated this development was already in consideration. A moratorium would never apply to this development. Alderman Williams stated we have clear statutes here. The ordinance that talks about "should conform to the natural contours of the land and natural drainage ways" gives us protection until we get another hillside ordinance. Sam Hill stated Fayetteville enjoys a national reputation in having one of the highest qualities of living status in the country. It just seems like we're bulldozing and developing'ourselves possibly out of that quality of life. Anne Murphy, Chair for the Friends for Fayetteville, stated we encourage and promote the development of a livable community which includes a sustainable economy and sustainable environment.. We believe that developments which respect and preserve our natural geological environment are right for the whole community. Developments that unnecessarily alter or destroy our natural heritage should be modifiedto ensure preservation of features which make Fayetteville such a beautiful town. We have certainly seen examples in Fayetteville, as Well as other communities; where removal of hills or filling wetlands has led to floods, unhealthy run-off and to the end of some of nature's most beautiful sites. The best walls, retention ponds, drainage'.schemes, can fail and have failed. We appreciate and support the:wisdom of the Planning Commission in their decision to deny this request as submitted.. We hope the concurswith the Planning Commission and requests the developers submit a plan that respects the natural contours and geology of this site under consideration. Tom McKinney, representing the Ozark Headwaters group of the Sierra Club, expressed concern that the developers are trying to take a flat development and stick it into a hillside and the ordinances -we have in place, basically, are trying to discourage such. 'deve'lopment. i s Tiny Hamilton stated even though all of us may be on a different . side of the issue, let's work together with a little give and take and a little common sense and this City will continue to 'grow, otherwise it will die. 14 May 20, 1997 Arthur Tyson expressed his support is complying with all the ordina property values there and it might to get back in there and clean up area. 151 for the project if Mr. Lindsey nces. He stated improve the influence the rest of the city the slum area that is in that Jim Lindsey stated lots of wonderful developments, including Mt. Sequoyah, Highland Park, and Markham Hill have steep accesses and entrances. The real question here is, "is this legal"? It's not a question particularly was that law wise, but the question is, "is it legaln? Alderman Zurcher asked how many of the developments mentioned are made up of 12-plexes built for flat land. Alderman Zurcher stated Mt. Sequoyah has quite a few houses that are built for hillside. Lona Benedict stated her concerns which were submitted to the Council in a letter. She expressed her concern that the development would violate city ordinances and dangerously increase traffic. Mayor Hanna closed the public hearing. In answer to a question from Alderman Daniel, Little stated generally an apartment will generate about 8 trips per day. Eight trips per day multiplied by 120 units would be 960 trips per day. Alderman Daniel expressed concern about the traffic on Stone Street. Little stated thanks to their Engineer, I do have the Traffic Generation Report, provided by Perry Franklin of our Traffic Staff. The 24 hour two way volume is 776. Peak hours would be a.m. peak hours of 51 traffic and a p.m. peak hour of 51, so the most at any one time would be about 51 cars per hour. Members of the Council discussed how they should proceed with the item. Stanley requested the Council go ahead and vote on the appeal. Alderman Daniel moved to table the item. Alderman seconded. Upon roll call, the motion passed on a vote of with Young abstaining. 15 Zurcher 4 to 2, 2 May 20, 1997 RAZE & REMOVAL Mayor:Hanna introduced consideration of a resolution approving the raze and removal of a structure at 20 S. Hill Avenue. ;Alderman Young made a motion to table the item. Alderman Williams stated there is somebody in the audience that might want to address this before we table it. 'Alderman Daniel asked if the owner would be present at the next meeting. Mayor Hanna stated the owner of the property is not here tonight. One or two of the aldermen expressed a desire to table this until he is present. Mayor Hanna called for comments from the audience. Sheri Holt stated the house has the potential. The house should be saved and cared for. Mayor Hanna stated the desire of the owner is to sell it. There is a.dispute with the insurance company over the damages that were done by fire. Michael Lolly stated he lives across the street from 20 S. Hill. It has been a problem for years. Lolly explained that he has offered to manage the house for Mr. Allred. Lolly stated he has talked with Mr. Allred's insurance company about the problems with vandalism. Lolly stated he wanted to see the house saved and asked where the ordinances are that prevent property from getting tothis stage. - Sam Hill stated the house is big and could be used for apartments. There were about 10 meters on the outside. Alderman Pettus stated there is about 5,000 square feet in the house. Bill Stiles, 117 W. Rock Street, stated he thought the house could be saved. Saving old houses is difficult in Fayetteville because there are no ordinances to help with restoration. There should be laws to help people restore houses. Stiles stated he talked with Mr. Allred about purchasing the property. Stiles expressed his concern that current building regulations make a restoration project too difficult. 16 153 May 20, 1997 Mayor Hanna asked Stiles to document his experiences with restorations. Mayor Hanna agreed that old houses are historically significant and there should be some differences in regulations. Alderman Williams explained that the City is discussing the raze and removal of the structure because it has been viewed as a hazard by the Fire Chief. He stated the Council wants to see it restored. In response to comments from Stiles, Kevin Crosson explained that the City has adopted the Southern Standard Building Code. Alderman Young stated the Code is set up for new construction. Stiles stated the Codes are for new construction. They are not for remodeling and they are not for restoration of old houses. Alderman Zurcher asked if the problem isn't catching these things before they get so far along. Mayor Hanna stated a fire started the problem with the property at 20 S. Hill. When the apartment caught on fire, all the meters were turned off so everybody had to move out. Michael Lolly stated the house has not been a problem since it was boarded up. Fire Chief Mickey Jackson disagreed that there haven't been any problems since it was boarded up. Jackson stated the police have arrested people in this house since it was boarded up. One of the problems that we're dealing with is you cannot secure the house. Mr. Allred did a reasonable job of boarding the house up after the last fire occurred. It didn't keep the vandals out. That's kind of the thing we're living with now on a day to day basis. Obviously I was involved in the process of getting this issue on the agenda tonight, proposing that the City require that it be razed. The problem is not necessarily that we want the house torn down. We'd be happy to see it restored and made livable and occupied again. The problem is that time has elapsed since we started having problems over there at that house. Mr. Allred was told many weeks ago that he needed to begin immediately to restore that house and repair the damage that was done from the first fire, long before the second fire ever occurred. He hasn't done anything to that house and it's sitting over there now in a situation that causing a threat to the rest of the neighborhood. It's certainly a threat to firemen to have to go over there. If it is set on fire a third time, the Fire Department has a pre -plan on that house that says that if that fire has any start on us at all, we're not going inside the next time it gets on fire. We're going set up around it and apply streams from the outside. We have to do that. It's the 17 ;. AT -PA 1 May 20, 1997 only way that we can do it with a reasonable degree of safety to the firemen. The house needs to be razed if it isn't going to be restored. If it is going to be restored, they need to start tomorrow and get that job done and make itlivable. Alderman Pettus stated she was concerned that Jerry Allred was not present. He needs to address several legal questions. Assistant City Attorney McCarty stated we are not responsible for the debt. The City can require him to razeand remove. He has to start within 10 days and finish within 30 days. ' If he doesn't do that, the Mayor can issue the order to have the City to raze and remove and then the City would have a lien on his property. Mayor Hanna stated he be at the next meeting. Alderman Daniel stated this is a serious situation. It is dangerous for the neighbors. If that should catch on fire again, it's a big enough structure it could catch the adjoining homes on fire. Empty, deteriorating structures like that can be places of crime. Alderman Daniel explained she did want to see the structure saved: flddrman Daniel moved to table the approval for the raze and --removal for this structure at 20 S. Hill Ave. Alderman Miller seconded. Jackson asked that the City Council help get something started at, the property right away. Upon roll call, the motion passed on a vote of 7 to 0. SPECIAL ELECTION - TOWN CENTER Mayor Hanna introduced consideration of a resolution recommending the City of Fayetteville proceed with the necessary steps for a special election for issuing bonds to construct a town center. Mayor Hanna stated an ordinance had been drawn up by the City Attorney. Assistant City Attorney LaGayle McCarty read the ordinance for the first time. Alderman Young opposed the word "substantially" in the first sentence of Section 2. He stated it needs to read exactly'like it will go on file. 18 May 20, 1997 Alderman Williams noted the resolution from the A&P Commission has a couple of blanks, the amount and maturity date. He stated we know the amount not to exceed is $6,950,000 and we are shooting for a particular number of years and it is not in the ordinance. Ben Mayes, Administrative Services Director, explained that when this was copied they did not have the final resolution from the A&P Commission. The amount is not to exceed $6,950,000 in 22 yeaxs.. He stated we do have the signed copy of the resolution now with those amounts in place and they will be incorporated into the ordinance. Alderman Young stated the Council would have to make a motion to amend that. Alderman Miller asked what the interest and principal would be on this bond over 22 years. Mayes replied it would depend on the market. A principal amount right at $6.9 million will have interest at $6 million, so over the 20 year period at today's interest rate it would be $12,919,000. The debt service would equal the amount that was done in the feasibility study. We came up with the amount of $775,000 annually and we said we did not want it to exceed approximately 22 years. The current interest rates allow us to do it in about 19 years. The reason we said not to exceed 22 years is that if the interest rates move slightly between now and the time of issuance, there would be a little bit of flexibility. If there would be much change between now and the issuance of the bonds, it would come back to the Council. This obviously has to come back to the Council and the A&P Commission for approval. Alderman Williams stated he would move to amend this ordinance and to place in what was requested by the A&P Commission of not to exceed 22 years. Mayor Hanna stated the Council could eliminate the word "substantially" that Alderman Young objected to. McCarty stated that is standard language in ordinances calling for elections. Alderman Young scated we are talking about the wording that will be on the ballot. It should not be "substantially"; it should be whatever we want put on there. He asked if the Council had the exact wording of the title of that tax being collected now. Mayes replied the exact wording is as it is in this ordinance. 19 €"15 6 May 20, 1997 Alderman Young asked what the wording of the parks tax is: Mayes did not know what this wording is. • Alderman Young stated what the Council wants to re -apply is for advertising and promotion. Whatever the&title of that tax is needs' to be in the ordinance. Alderman Pettus asked where the $6,950,000 figure came from and what happens if the town center costs more than that. Mayes stated there was a question of doing the entire architect and engineering drawing before the vote or after. What was heard from the Council whenthis general idea was presented six or seven months ago was that they did not want to spend a lot of money before it was taken to a vote of the taxpayers. The original estimates ranged from $6.8 million to $8.2 million. This issue will generate $7.6 million, approximately, for the construction fund, which is right in between those two estimates. Mayes explained how the $6,950,000 was arrived at. We got with our financial advisors and looked at the- maximum debt service requirement that we wanted to incur annually and came up with approximately $775,000 based on the feasibility study. Starting with that number, we determined how much 'bond issue we could do on a 20 year bond issue. $6,950,000 is the amount of bonds you can. issue and still keep your debt service within $775,000. The resolution from the A&P.Commission takes the $6,950,000 and pledges $1 million from the advertising and promotion fund in addition to the bond. To do a bond issue, some money must be put in.a reserve fund and not be available for. construction. There will be some cost of issuance that will come out of that. You will start with right at $7.9 million plus themoney from the A&P. If you put 10% of it back in a reserve fund and have issuance cost, it will leave you $7.6 million, approximately, for construction. Alderman Zurcher was concerned that there was a chance the money would not be enough to build this the way we've been selling it. Mayor Hanna stated getting money from the State or Federal government is possible and there area couple of other possibilities that may reduce the debt before we actually start. Alderman very end tax." he Alderman Williams stated he would like to make an.amendment at the of the ballot. Instead of ending it with; "gross receipts would add, "in a period not to exceed 22 years." Miller seconded. 20 157 May 20, 1997 Lamar Pettus, attorney, stated he was not sure a vote of the people was necessary to spend the one cent tax -to pay off this town center; and, since it includes parking, the A&P Commission may have a legal issue as to whether or not, since you are combining the two deals, you can spend that money without the approval of the voters on what the purpose of that tax was in the first place. He stated he did not want the Council to build the town center and he did not want an election where his only choice is to either build the town center or not build it. The citizens should be given an alternative. Mr. Pettus stated one of the cracks in the damn in the incinerator lawsuit was when the bonds were issued they had not sited the location. Everything about the town center refers to it being located on the south side of the square. The City has not bought the property yet. He had convinced the Council not to pay $133,000 for something they are going to get free. He would be arguing that same position now because Walter Niblock is negotiating with the City Attorney for the City to give a piece of property north of Mcllroy Bank in exchange for this lot. Mr Pettus asked why the City would give a free piece of property in exchange for property that they are going to get in a couple of years for free. He also had reservations as to whether or not the off-street parking authority or commission can give the City that property in the first place. Those are legal issues that will be resolved at some point in time. He stated he is in communication with the property owners in that district to address that strategy. Mr. Pettus stated the City does not have a firm cost on this project. Cutbacks or another election might be needed, which would cost money. The reason given for holding this election in the first week in August is to get this issue before the people before the County's tax for the jail. He stated nothing prohibited having this election in September when there is a school board election already scheduled. Mr. Pettus pointed out the ordinance isn't for a specific amount of money. It doesn't put an interest rate in and will be amended to put the number of years on it. The City needs to look at this issue because it has $775,000 extra money and needs a way to spend it. He suggested there were alternative ways, rededicating or repealing the tax. Mr. Pettus listed other tax requests citizens will soon face from the school board, County, and City. Mr. Pettus handed out and explained two ordinances he had prepared. He proposed tabling this issue for further study. He suggested looking at the alternatives and prioritizing the needs facing the City. 21 May 20, 1997 Mayor Hanna stated it was his understanding that the A&P tax could .not, be rededicated for any:purpose other than what will attract tourism. Mr. Pettus stated the tax could be repealed and another tax replace Alderman Williams stated the City could not immediately undo the :t -ax as it is pledged to the bonds for the Continuing Education Center to the year 2004. Alderman Daniel stated there were public hearings and she did not remember any citizens making this suggestion. Mr. Pettus stated he did not attend the public meetings because the paper reported the Mayor had said people against the town center were not wanted there. Mayor Hanna stated he had not said that. There was discussion as to whether or not this was accurately reported. Alderman Williams stated that was not 'the position. of the Advertising. and Promotion Commission. They had an open mind when the public hearings were held: Many citizens spoke and were able to ask questions. There will be further public hearings. Alderman Daniel agreed that Mr. Pettus had raised some important points and the City has critical needs but felt the vitality of downtown was critical, too. The town center cavi• revitalize downtown and have a ripple effect on the economy. Mr. Pettus used Dickson Street as an example of this being done by commercial enterprises, not the City. The ordinance says it will be done to attract conventions. This needs to be. clarified. The Mayor says he wants this to be a town center. The A&P Commission spent thousands of dollars to get .some architect and engineer to say this thing will pay for itself because we will attract all of these conventions, but you are going to build it downtown where it will be hard to get to. Alderman Williams corrected a statement by Mr. Pettus thatwe should put this money into police and fire as the .City is not doing enough work there. Alderman Williams stated that in the five years he's been on the Council, they have made efforts every year and increased the police budget every year. The crime rate has gone down in recent years. The same thing has been done with the fire department. 22 159 May 20, 1997 Ben Mayes stated that the City Attorney has said there is a statute that does not allow other issues to be put with a school board election. This will be checked into. The City is not opposed to that or being with the county jail question. The Election Commission will have something to say about that. Alderman Williams stated the City has not gone on record saying it will try to raise millage rates to pay for the wastewater treatment plant. Mayes reiterated that A&P dollars could not be used for fire stations and police stations, though a tax can be repealed and another voted in. Mayor Hanna stated the only way to get a new sales tax now is to set a specific time and use for it. He stated Mr. Pettus has the choice to lead a movement to repeal the tax. Mr. Pettus requested that the Mayor ask the City Attorney to draw up a petition to repeal the tax which Mr. Pettus would circulate. Mayor Hanna declined to do this. Mr. Pettus stated he thought the Mayor had told him he would help him do this a couple of months ago. Mayor Hanna responded this was only if the City was not going to be able to use it for the town center. Mr. Pettus stated he is considering petitioning to repeal the tax, with or without the town center. Mayes reported two public hearings had been held with attendance of about 100 citizens. He stated Richard Alderman, the architect on this project, was present to summarize the hearings and Joe Fennel, chairman of the A&P Commission, was also present. Richard Alderman, architect, stated this is something that the A&P Commission and the City have been working on since 1992. It has had a lot of discussion. A convention center proved to be invalid and a town center was proposed. The last year and a half has been spent working on this, to bring it forward to the voters. The Council has been given voluminous information. There were two well -attended, televised public hearings that everyone had a chance to come to. The key question now is does the Council want to give the citizens the opportunity to vote on this. Alderman Pettus asked if he was saying this is not going to be a convention center. 23 =160 31Yll:t I. May 20, 1997 Mr. Alderman replied conventions can be in this building but itis._ not a single purpose, convention -center -only building. It wants'to be a building with convention facilities:and also badly'needed civic facilities. We came up with 1/3 usage for conventions and 2/3 for civic -oriented facilities. It has been purposely designed differently than a convention center. It has Windows and views and is more of a town center. Five or six.other sites were eliminated. This is the preferred site and -has been the solid site for the last year of the study. Mayes stated the City does not own the site yet. We own.40%. We made a proposal to buy it outright but are also looking into the options of swapping the land or doing something else. He stated several aldermen commented this did not need to be pursued until we had an election to decide we are doing this, so it has not been pushed to be finalized.' We don't think it reverts to the City automatically when the bonds are paid off. We think itis at.the option of the parking district. Giving us that site once the bonds are retired was discussed at a public meeting several months ago,` and they said no but would consider selling that site. We are close to having a deal and can finalize it before or after the election. The parking district has said they will help in any way they can on the site. Mr. Alderman stated they also have a very public relationship with the owners of the property on the south side of the square. They have said they have property they would like to incorporate into this facility. Alderman Daniel asked how much input the public will have if they approve this issue at the polls. Mr. Alderman stated it is their intention to bring this project back to the Council. They are asking for a very definite. resolution. He promised that they intend, if the concept of this facility can be passed, to bring it back to the Council on_several occasions, to have meetings at the A&P Commission, to solicit input, to have more public forum meetings about what.they want, and to make sure the end design incorporates the issues most important. Alderman Williams encouraged everyone with questions to come forward now. Alderman Zurcher stated he had some things. he would like guaranteed before a vote. If it is really going. to -be a•town center,'.4t needs to be available to the regular folk to utilize for the betterment. of Fayetteville, so he wanted -to define what we are talking about.. He stated we know what a convention center is. His definition of a town center is a vital place .where different groups in the a 11 24 161 May 20, 1997 community can meet day and night to share plans and resources, a place where a community comes together to work on a better Fayetteville. Non -profits are key to this. There are many groups who are doing tremendous work with little or no space or other resources. By providing them with permanent, shared space and equipment, we can give them a hand in furthering their excellent goals. This also contributes to the vitality of the town's economy and our downtown. There are already -facilities for convention type arrangements. To make this town center a town center in name only and convention center in reality, as we've mentioned before, would ignore the possibilities for bringing life to the downtown area day and night. If, on the other hand, a significant amount of space is dedicated for non -profits to use for free, then meetings, charitable functions, and other community building activities will happen on the square, bringing life and local money to the downtown area. Alderman Zurcher stated he would like to see guaranteed non-profit access, including equipment, kitchen facilities, conference rooms, and offices; architecture which promotes the feeling of accessibility, including a street side facade in the downtown vernacular or a well marked archway entrance; a clear mission statement detailing what the town center will provide that the CCE and the U of A don't; and sustainable building ethics. Mr. Alderman stated A&P money can be spent on facilities for the promotion of, or that can be used somewhat as, convention centers or meeting spaces. If you start having dedicated spaces for local participation, there may be a problem. We will have to ask our bond people. Regarding the design, Mr. Alderman stated the City needs to go forward and tell them they are interested in doing the project and then trust the design will be put together. Alderman Zurcher suggested holding the A&P meetings in the City Administration building at a time people can come and having them televised. Alderman Pettus stated she would like to see the operating costs addressed. The public needs to know it is most probably going to be operated at a deficit. Mr. Alderman stated it operates at a deficit only in some of its day-to-day operation. When you take the capital flow of A&P money, then it doesn't operate at a deficit and we still have $250,000- $300,000 of the A&P money left over every year. The facility is not, in an overall sense, operating at a deficit. All this is spelled out in the book, which is available to everybody. 25 May 20, 1997 Mayor Hanna stated there was a motion and a second to make some changes. Alderman Young had some questions about the bonds. There are some bonds on the Continuing Education Center He asked how the new bonds are going to be wrapped around the existing ones. Mayes replied there is an existing bond issue on the Continuing Education Center that pays off in 2004. The town center bonds will be paid for out of the HMR tax just like the CEC bonds are. They are on parity with and guaranteed by the same tax. These bonds would start being paid off in the year 2005, after the CEC bonds are paid off in 2004. The interest on the new bonds will be paid until 2004, then the principal and second issue. Alderman Young asked if the town center is built, will therebe a permanent staff. Mr. Alderman stated the book shows there is a permanent staff of about four to five with a director and two full time employees to help run the facility and a couple of part time employees. This has been considered, but as the design changes socould the staffing. It will always be paid for by the A&P Commission. Joe Fennel, A&P Commission, stated they already have people on staff who are working for the A&P Commission. That is all part of funds that will be transferred into this facility. A lot of those dollars already being spent now will be incorporated into the physical facility to sell the project and work with the project on a day-to-day basis. Alderman Young stated the public needs to realize if they vote for a town center, they will also be voting to hire a permanent staff. Alderman Williams asked if the staff will be City employees and run by the City and not the A&P Commission. Mr. Fennel replied possibly these would be City employees. The A&P Commission does not want to get into the business of physically running the building. Mayes stated it is a City owned facility. Most facilities are operated under a contract, not always City employees per se. He agreed the numbers are built into the project for those employees from a contract standpoint. Alderman Young confirmed that Mr. Alderman would prepare plans and bid documents and send them out to bid and then, if it comes back and can be done $7.5 million, construction would start 'Alderman 26 1 .163 May 20, 1997 Young cautioned Mr. Alderman to have everything in those bid documents and if something was forgotten not to come back to the Council or the A&P. The maximum amount to be borrowed is $6.95 million. Mr Alderman responded this will be like any other construction project the City goes into. There are no guarantees, but when the project is bid, there will be contingencies in it. Mr. Pettus stated he understood Marilyn Johnson is employed by the Chamber of Commerce and asked why her salary is paid with tax money if she is working for the Chamber of Commerce. Mayor Hanna responded that the A&P Commission has a $100,000 contract with the Chamber of Commerce to handle advertising, incoming inquiries, phone calls, and to coordinate all of it. The Chamber actually hires her. Mayor Hanna stated there was still a motion and a second to change the ordinance to read for a period not to exceed 22 years. He asked for a roll call. Alderman Williams stated the amendment is adding at the of the vote for or against, "in a period not to exceed 22 years." It was confirmed that the vote was for the amendment only. Upon roll call, the amendment passed on a vote of 7 to 0. Mayor Hanna stated the Council should vote this all the way through and send it to the people to make the decision. Mayes responded to a comment from the audience. He stated we keep a reserve fund. It is City policy to keep at least 10% in reserve in every fund. The general fund has around $5 million in reserve. It is available for capital improvements. ADJOURNMENT Mayor Hanna adjourned the meeting at 10:35 p.m. 27