HomeMy WebLinkAbout1998-04-07 MinutesA MEETING OF THE FAYETTEVILLE CITY COUNCIL
A meeting of the Fayetteville City Council was held on Tuesday,
April 7, 1998, at 6:30 p.m., in the Council Room of the City
Administration Building, 113 W. Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna; Aldermen Donna Pettus, Stephen
Miller, Kit Williams, Len Schaper, Heather Daniel,
Cyrus Young, Randy Zurcher, and Trent Trumbo; City
Attorney Jerry Rose; City Clerk/Treasurer Heather
Woodruff; staff; press; and audience.
ABSENT: None
Mayor Hanna called the meeting to order with eight aldermen
present.
NOMINATING COMMITTEE REPORT
Alderman Daniel nominated James Beamis to the Cable Board.
Alderman Williams seconded. Upon roll call, the nomination
carried on a vote of 8 to 0.
CONSENT AGENDA`
Mayor Hanna introduced consideration of items which may be
approved by motion or by resolution and which may be grouped
together and approved simultaneously under a consent agenda:
A. Minutes of the March 17 regular City Council meeting;
B. MUD CREEK WATER LINE RELOCATION: Approval of the contract
for Water Line Relocation for Mud Creek Str. and Apprs. with
United Plumbing in the amount of $80,050. Approval of 15%
contingency amounting to $12,000. The total funds requested
being $92,050;
RESOLUTION 37-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
C. FULTON SANITATION SERVICES, INC
contract with Fulton Sanitation
processing and marketing of the
recyclables.
•Review of Amendment 2 of
Services, Inc., for
City's collected curbside
RESOLUTION 38-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
D. OLD ANIMAL SHELTER RENOVATION: 'Approval of a.project with '
Johnson Mech. for installation of plumbing and HVAC systems
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April 7, 1998
in Old Animal Shelter Renovation. Rates per annual plumbing
contract (Res. 45-96). Not to exceed $44,500;
RESOLUTION 39-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
E . CHANGE ORDERS 6 AND 7 FOR 24TH STREET: Approval of change
orders 6 and 7 to the contract for reconstruction of 24th
Street with APAC Arkansas, Inc., McClinton -Anchor Div. in
the amount of $61,420.86. Approval of a budget adjustment
of $130,000;
RESOLUTION 40-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
F. SUMMIT WATER TANK: Approval of a contract with Avanti
Demolition to demolish Summit water tank and water filter
building and approval of a budget adjustment.
RESOLUTION 41-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
G . CLEVELAND ST. IMPROVEMENTS: A resolution authorizing the
execution of a contract with Crafton, Tull, and Associates
for engineering services in connection with the design of
improvements to Cleveland Street from Garland Avenue to
Gregg Street in the amount of $58,431.83 plus a contingency
of $15,000;
RESOLUTION 42-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
H . CONSIDERATION OF 240 E. CENTER STREET: Approval of the
offer and acceptance contract with Mary and Barbara Carr for
acquisition of the property at 240 E. Center. In addition,
staff requests a resolution to donate the property to
Habitat for Humanity of Fayetteville, Inc.;
RESOLUTION 43-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
Alderman Miller moved the consent agenda. Alderman Schaper
seconded. Upon roll call, the motion carried on a vote of 7-0-1,
with Alderman Young abstaining.
OLD BUSINESS
VOLUME BASED GARBAGE COLLECTION
Mayor Hanna introduced consideration of an ordinance approving a
change to our garbage collection program and approving a budget
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adjustment.
Alderman Young moved to suspend the rules and go to the next
reading. Alderman Miller. seconded.
City Attorney Rose confirmed for Alderman Miller that the Council
could table this at anytime before the final vote.
Upon roll call the motion carried on a vote of B to 0.
'City Attorney Rose read the ordinance for the third time.
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Alderman Miller has received many phone calls about this and
there seems to be a lot of confusion. Staff has told him this is
not something that has to be done in the next couple of months.
As chairman of the Environmental Concerns Committee, he would be
willing to send this to that committee for their May meeting. He
stated he thinks this is a good system but, because of the
confusion and other good suggestions that have been made, he is
amenable to having a public hearing on this in May.
Alderman Daniel reported a citizen's concern about animals
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gettingin the garbage bags.
Cheryl Zotti, Environmental Affairs Director, responded that the
purple bags can be placed in garbage cans.
Alderman Williams stated he has worked out something to send in
the water bills that explains the options. He encouraged giving
citizens plenty of time to respond with their preferences.
John Lindsey, citizen, stated he has talked to 30 or 40 people
and the real issues are landfill problems and recycling. Two
bags won't change the flow of trash. People will use a dumpster
somewhere. We can't forget about the citizens and what they
want. People should have options.,''
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Larry Ash, Park Place, does not appreciate the city government
micro=managing his life. The government is a servant of the
people. It is not the citizen's fob to make life easy for the
people in the Public Works Department. Public input is a good
idea. The right approach 'is for proponents and opponents to
discuss the issue fully. _Citizens'should have the option to
participate or not participate. It disturbs him that this would
not be implemented until after the next election.
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April 7, 1998
Alderman Schaper responded that the bag system does give options.
You can throw out a lot of trash, but you have to pay for it.
Alderman Williams stated his insert discusses all the options,
including the rate increase if we change nothing, and it
encourages the public to call the Solid Waste Division with their
opinions and ideas.
Wayne Brewster, citizen, asked what would be done with items
larger than the bags but not necessarily big enough to send a
separate truck for. Putting smaller trash bags in a larger one
does not make much sense. He asked about smelly bags that are
not yet full. He is against tax dollars subsidizing the poor to
throw out their trash. In this town, many college students may
fit under that. There are many things taxpayers pay for that
they may or may not use. Right now $8.75 pays for an average of
five or six bags every week. He asked why the rate would not
decrease for fewer bags. He saw many disadvantages and no
advantages for the citizens. He noted that 65% of the waste
comes from the commercial sector. He thought the number of bags
to be given each household was not arrived at scientifically.
Lonnie Gibson, citizen, commented on the lack of clarity in the
previous public hearing notice that was published in the paper.
He hoped the next notice would be more easily understood by the
average citizen. He stated there are trash cans on the market
that would work. He listed examples of gas and water bills where
citizens pay for what they don't use. He stated the best for him
would be to go back to picking it up twice a week.
Alderman Miller stated that the City could buy bags for about
half what citizens could in the store and the City could specify
a certain percentage of post consumer content.
Alderman Zurcher stated he had been ready to pass this but is
willing to have more public input. Regarding Alderman Williams'
plan, which lets people who recycle throw more trash away, he
read portions of a letter from citizen Fran Alexander, which
said, "Sorry, Kit, but rewarding recycling by giving extra trash
bags for more trash is like rewarding someone trying to quit
smoking with a free pack of cigarettes."
Alderman Williams also read from Ms. Alexander's letter, "As far
as the half -bag issue goes, I say people have the choice of
holding garbage another week and filling the bag up completely,
if they choose not to compost their smelly, kitchen waste. If
they can't stand it, they have the choice of putting out half a
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April 7, 1998,
bag." He stated she also compared education vs. spending, saying
education takes ten times more work and we shouldn't educate and
should charge more. He stated he does not agree with that.
Alderman Schaper stated the staff has studied this a lot and is
not working in a vacuum. This is based on a lot of research of
what works in many communities.
Alderman Miller,moved to table this to be discussed at a public
hearing by the Environmental Concerns Committee in the May
meeting.
City Attorney Rose read the definition of lay on the table.
Upon roll call, the motion carried on a vote of 8 to 0.
WARD BOUNDARIES
Mayor Hanna introduced discussion of ward boundaries presented by
Alderman Williams and Alderman Zurcher.
Alderman Schaper stated he thought two of the understandings in
drawing up the new wards were to try to preserve the existing
precinct boundaries as much as possible and to change as little
as possible how the wards are laid out. Three aldermen came up
with maps like that. Alderman Williamsplan radically changes
the configuration of the wards.
Alderman Trumbo did not'remember wanting to keep it exactly the
same.
Alderman Pettus also did not remember discussing keeping the
boundaries the same as possible.
Alderman Zurcher stated there needs
any big changes on a ward map. The
should have the opportunity to vote
to be a very good reason
people who voted you in
you out.
ward
for
Alderman Williams felt his map was being misrepresented. He made
eight changes in the ward boundaries, but Alderman Zurcher's map
has six changes.
Alderman Young stated the radical change is making Ward 2 go
almost to the mall. Ward 2 has always been the central ward
encompassing the central part of the city. Alderman Williams has
combined people in the central part of the city with people who
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do not have the same interests. He also spit the votes in other
northern wards, watering down the votes so there is no strong
constituency in either ward.
Alderman Schaper stated that in terms of population, Ward 1 had
to grow in area, Ward 2 had to grow in area, and Ward 3 and Ward
4 had to shrink. Alderman Williams has grown Ward 1 but has
eliminated areas that were historically in Ward 1 and given it
areas that were historically in Ward 3.
Alderman Williams responded most citizens aren't interested in
just one area of town. Most see themselves as Fayetteville
residents.
Alderman Schaper suggested using the major north -south and east -
west streets of the city to define boundaries, if a major change
is to be made.
Alderman Zurcher felt it is inappropriate to add precincts to a
ward just to avoid splitting precincts. If a ward needs more
people, you need to add that area to the precinct, not take away.
Richard Culver, 2810 Old Farmington Road, said he would like to
see each council member represent a broader spectrum of the
city's population.
Errol Conner, 333 Cleburn Street, asked if the layout of the
wards was arrived at scientifically. He said the University
could provide a scientific layout of any type of geography.
There being no further comments from the audience, Mayor Hanna
brought the discussion back to the Council.
Alderman Williams moved his configuration, Configuration E.
Alderman Daniel seconded. Upon roll call, the motion carried on
a vote of 5-4-0, with Mayor Hanna voting yes and Aldermen Miller,
Schaper, Young, and Zurcher voting no.
City Attorney Rose read the ordinance for the first time.
The ordinance was left on first reading.
NEW BUSINESS
SEWER USE ORDINANCE AMENDMENT
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April .7, 1998
Mayor Hanna introduced revision of Chapter 51: Water and Sewers,
Discharge and Pretreatment Regulations, of The Code of
Fayetteville.
Mayor Hanna explained this is to comply with the DPC&E's latest
ruling on our permit.
City Attorney Rose read the ordinance for the first time.
Kevin Crosson, Public Works -Director, stated that the Council
passed in 1996 a new chapter covering discharge and pretreatment
regulations. This was submitted to the DPC&E, and these are the
modifications they recommend. Most are only to bring it into
compliance with their rules and regulations. He asked the
Council to approve it at this meeting, so it can be approved
before the rules are changed again. He stated each item in the
ordinance is the DPC&E's recommendation and is insignificant to
the sub§tance of the original Chapter 51.
Alderman Williams moved to suspend the rules and go to the second
reading. Alderman Miller seconded. Upon roll call, the motion
carried on a vote of 8 to 0.
City Attorney Rose read the ordinance for the second time.
Billy Ammons, OMI, stated these are largely clerical changes to
bring the language more in line with what the State recommends.
A couple of substantive changes are relaxations in the limits
based on the fact that we don't have a technical reason for being
more stringent. ,If we have problems in the future, we can
justify more strict limits.
Alderman Schaper noted this has been discussed by Lthe Water &
Sewer Committee and these are minor changes.
Alderman Schaper moved to suspend the rules and go to the third
reading. Alderman Trumbo seconded. Upon roll call, the motion
Carried on a vote of 8 to 0.
-City Attorney Rose .read the."ordinance for the third time.
There being no comments 'from the audience, Mayor Hanna called for
the` vote:
Uponiroll•call, the,ozdinince passed on a vote of 8 to 0.
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April 7, 1998
ORDINANCE 4088 AS RECORDED IN THE CITY CLERK'S OFFICE.
Steve Ward, Chamber of Commerce, was concerned about the impact
of this on industries.
Alderman Schaper thought the changes in the local limits would
not be a problem for anybody.
RAZE & REMOVAL
Mayor Hanna introduced approval for raze and removal of structure
at 2173 W. Deane per Ord. 3948.
Neither the property owner nor the owner's representative was
present.
Alderman Daniel stated this has been a concern of hers for a
number of months. There have been two fires there. Empty.places
can harbor criminal activity. There is nothing salvageable about
this.
Alderman Williams stated there was a good report from the
Inspection Division about how long this has been a problem.
Mayor Hanna stated Mr. Weatherford told him he has made
arrangements with architectural students to rehabilitate the
property. He stated he called the owner to inform him this was
on the agenda. He wants to be certain the owner does not want to
be represented before the Council votes.
Alderman Pettus was confused about who the actual owner is.
Mayor Hanna told her it is Mr. Weatherford.
Alderman Pettus asked why Ms. Schuman's name is on the deed and
other documents.
Alderman Daniel did not see how architecture students could in
any way benefit this house.
Alderman Schaper thought it would be dangerous for them.
Alderman Pettus was still uncertain about the ownership and
whether or not the true owner has been notified.
Alderman Young stated the ordinance was meant to apply to a
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April 7, 1998
building like this.
Alderman Trumbo agreed it needs to be razed but was also
concerned about the legalities of who actually owns it and who
has been signing the notices.
Alderman Daniel agreed the Council needs to be clear on the
ownership but did not want to wait more than two more weeks.
Burt Rakes, Inspection Superintendent, stated it is his
"'understanding,that`Mr. Weatherford represents the owner. There
?have{been no communications-with.the owner.
Alderman Williams. stated we needlto notify the owner directly.
•AlaerMan Young moved to table this to the next meeting. Alderman
Williams seconded. Upon roll,call, the motion carried on a vote
pf 8 to O.
GREENSPACE WAIVER FOR DINERSTEIN APARTMENTS
Mayor Hanna introduced a resolution.waiving the greenspace land
requirement in part and accepting 1.28 acres and $34,800, money
in lieu, for the proposed Dinerstein apartment complex.
Harold Heady, representing the Dinerstein Company, stated there
are a couple of changes to discuss. One is a little more land in
lieu of a little less money. The total land donation would be
1.53 acres, and the dollar value would be about $31,000. This
.came from conversations with Kathleen Ramsey, who will be the
ultimate user of the land. He stated he understands it is all
right with the Parks Board to make this minor change, though he
has no confirmation in writing. He intends to put the new
proposal on paper and forward it to the Parks Board.
Mr. Heady stated another aspect is that part of the original .
proposal to the Parks Board regarded occupancy of the land, the
third codicil on the agreement. The requirement of getting
access to the land early on is not an issue. He asked that the
proposal be accepted at face value.
Mayor Hanna thought the Council could take care of the changes in
land and dollar amounts. He stated vacating the property quicker
does not have anything to do with the Parks Board. It affects
the Water & Sewer Department. We have been in favor of doing
this ever since it was first proposed.
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April 7, 1998
Mr. Heady reiterated that this is not now a requirement of the
proposal.
Alderman Williams stated this is a good proposal and he agreed
with the Parks Board's recommendation. It is good use of the
land and gives Children's House enough room.
Kevin Crosson, Public Works Director, stated there is a
possibility that if something can be worked out to relocate the
Water & Sewer Department, a temporary lease might be brought to
the Council for a facility somewhere else in town.
Alderman Zurcher asked how much park land they would have been
required to give.
Alett Little, Planning Director, stated for 180 units, the total
amount of acreage is 3.6 acres.
A representative of Children's House stated the land is
sufficient for their needs and planned expansion. It will not be
park land, but children will play there every day.
Alderman Trumbo moved the resolution. Alderman Miller seconded.
Upon roll call, the resolution passed on a vote of 7 to 1, with
Alderman Zurcher voting no.
RESOLUTION 44-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
RZ 98-6.00/DINERSTEIN
Mayor Hanna introduced a rezoning request for property located at
the southeast corner of Cato Springs Road and Razorback Road.
The property is zoned I-1, Heavy Commercial -Light Industrial, and
contains approximately 19.47 acres. The request is to rezone the
property R-2, Medium Density Residential.
City Attorney Rose read the ordinance for the first time.
Alderman Williams stated this goes along with the 2020 Plan. It
is down zoning.
Alderman Schaper stated R-2 zoning would allow 24 units per acre.
The R-2 is needed in order to build apartments. 24 units per
acre on 18 acres would allow 412 apartments to be built on that
parcel. He asked if Mr. Heady would be willing to offer a bill
of assurance that all they would build on that property is 180
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April 7, 1998
129
Mr. Heady replied their plans are to build 180 units. He stated
the best assurance would be that it has to go back through the
development process. He stated he would like to have an
opportunity to discuss it with the main office.
Alderman Williams thought the City has some protection, as the
developer has to come back for another greenspace requirement
waiver if they go over 180 units, because their figures are based
on 180 units. If they come back with more units, they would have
to give more greenspace. Also, he thought the number of units
was mentioned in the contract..
Mr. Heady agreed there was a ceiling or an approximate amount of
units.
Alderman Schaper noted that land ownership changes but rezoning
is permanent; whoever owns it is legally entitled to build that
many units. A contract is with the owner, but a bill of
assurance runs with the land.
This item was left on first reading.
AD 98-5.00/ADVANCED TOWING/BARBED WIRE
Mayor Hanna introduced a request submitted by Nick Jeffries of
Advanced Towing for property located at 331 West Poplar Street.
The request is to allow barbed wire on the fence surrounding the
impound lot for a towing business.
Mayor Hanna stated there are conflicting regulations.
Nick Jeffries stated he is asking to be allowed to put the barbed
wire up. People have been climbing his fence.
Alderman Daniel stated the business is very visible. She asked
if Mr. Jeffries plans to expand the fenced area.
Mr. Jeffries replied he is. He has had the business almost 9
months. The Police Department requires the business be in the
city limits.
Alderman. Pettus stated•the towing services used by the police•
department range from Greenland'to Springdale.
Mr/Jeffries stated he needs to be zoned industrial and the
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April 7, 1998
farther out he gets hurts his business.
Alderman Schaper was concerned that if this was granted, the
ordinance would be voided.
Alderman Young thought the unique circumstance here is the Police
Department's regulations. The fundamental problem is a conflict
in regulations.
Little stated the zoning regulations do not permit barbed wire
and call for screening. The Police Department adopted the
State's operating procedures, which do call for barbed wire.
Options for resolution include having the Police Department
changed their requirements, having the Planning Commission devise
a compromise, and giving the Planning Commission authority to
waive requirements or grant variances.
Little stated the reason the discussion has centered on the
barbed wire, and not the screening, is because that is the only
conflict with the Police Department's regulations. There is no
screening conflict, though they would prefer to see into the lot.
Little stated a new business could be required to remove the
barbed wire, if this is kept up with.
Mr. Jeffries was aware of the regulations before he moved here
but assumed it could be taken care of quickly. He has towed cars
for the police at the owner's request.
Alderman Williams could see that Mr. Jeffries is in a bind but
did not want to handle this case by case. The City needs to
organize itself on what is required.
Alderman Schaper asked if the City allows the barbed wire, could
they require screening.
Little replied if the Council does not grant the waiver for that
specific part of the ordinance, then that part still stands.
Alderman Schaper stated the goal is if we allow barbed wire, we
don't want to look at it.
Little stated an important consideration is whether barbed wire
is necessary for protection.
Alderman Miller stated he doesn't like barbed wire, but this is
necessary to this citizen's livelihood. There are times when
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barbed wire is appropriate. The ordinance should be looked at so
people know what they are dealing with.
Alderman Miller moved to grant the variance and to direct staff
to look at the ordinance and come up with times barbed wire can
be used.
In response to questions from Alderman Zurcher, Mr. Jeffries
stated he has been in business 9 months, impounded 1,000 cars,
and at least ten have been broken into.
Alderman Pettus seconded Upon roll call, the motion carried on
a vote of 5-3 with Aldermen Schaper, Daniel, and Zurcher voting.
no. - -
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RESOLUTION 45-98 AS RECORDED IN THE CITY CLERK'S OFFICE.
IMPROVEMENT DISTRICT NO, 4/HAWG HEAVEN
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Mayor Hanna introduced a petition to form Fayetteville Municipal
Property Owner's Improvement District No. 4--Hawg Heaven
Subdivision Project.
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City Attorney Rose read the ordinance for the first time.
Jim McCord, attorney, stated the Council is required to determine
whether the petition is signed by the record owners of all the
property in'the improvement district. He stated he filed a
certificate certifying the petition is in fact signed by all the
record owners of the property to be included. The statute
provides if the Council makes that finding, it is their duty to
pass the ordinance.
Mr. McCord stated the legal description for the improvement
district matches the legal description for the subdivision.
There are only three owners: Christopher Adams, Charles Wright,
and Linda Wright.
Alderman Williams moved to suspend the rules and go to the second
reading. Alderman Young seconded. Upon roll call, the motion
carried on a vote of 7-0, with Alderman Pettus voting no.
City Attorney Rose read the ordinance for the second time.
Rose stated the law provides that if the governing body
determines that all the owners of the real property to be located
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in the district have petitioned for the improvements, it shall be
its duty by ordinance to establish and layoff the district as
defined in the petition and to appoint the commissioners named in
the petition.
Alderman Young noted there are only three owners and they are not
challenging this. The abstractor has certified these are the
owners.
Alderman Pettus wanted to be sure Mr. McCord has gone through all
the statutory procedures.
Alderman Williams moved it to the third reading. Alderman Young
seconded. Upon roll call, the motion carried on a vote of 8 to
0.
City Attorney Rose read the ordinance for the third time.
There being no further comments, Mayor Hanna called for the vote.
Upon roll call, the ordinance passed on a vote of 8 to 0.
ORDINANCE 4089 AS RECORDED IN THE CITY CLERK'S OFFICE.
AFFIRMING PLANNING COMMISSION FINDINGS
Mayor Hanna introduced an ordinance requiring the Planning
Commission to take a separate vote to affirm findings.
City Attorney Rose read the ordinance for the first time.
Alderman Young stated he would talk to the Planning Commission
about this.
This item was left on first reading.
ENTRY PLAZA FOR THE PROPOSED TOWN CENTER
Mayor Hanna introduced a recommendation from the City Council on
whether or not to proceed with negotiations of a long-term lease
with Mr. F. G. Bradberry for the entry plaza into the proposed
town center.
Mayor Hanna explained that City Attorney Rose needs to know if
the Council is willing to enter into a lease. He stated when the
town center was first conceived at a meeting with of some of the
A&P Commission and Chamber of Commerce, we were asked how we
would access the town center. At that time, before the
architects were involved, one of the thoughts was that we could
access the town center and parking deck by the walkway beside
Tim's Pizza, in Mr. Bradberry's south side building. Mayor Hanna
stated he had called Mr. Bradberry and asked him if he'd be
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April 7, 1998=
willing to go along with that. .Mayor Hanna stated Mr. Bradberry
said not only would he be willing to go along with it, but he
would extend that walkway, if we wanted to make a nicer entrance
from the square into'the°town center.
Mayor Hanna stated that as we got into it architecturally, we
were shown a beautiful plaza entrance. It was discussed that the
plaza would be dug down and leave Mr. Bradberry's parking
underneath, which would be covered over with the entryway to the
plaza. Before we got to the negotiations, the architect decided
that would be too expensive. We could let Mr. Bradberry have
parking spaces in the plaza itself. He was willing to negotiate
and talk with us about doing it that way, but now we are to the
point of talking about using the Bradberry property as the plaza
entrance. What we discussed has-been changed twice and this is
the third suggestion.
Ed Bradberry, owner of property on the south side of the square,
stated he supports the town center project, which he understood
was conceived to revitalize and support the development of
business on the downtown square and to provide much needed
additional parking. He stated he was shocked and somewhat
bewildered to learn that the City would consider the possibility
of condemning his business development and destroying his parking
in order to accomplish a project designed to promote the very
same thing. This is especially true in light of the fact that he
has offered a viable alternative to such drastic and expensive
action. He is also concerned about the message this sends to
businesses considering investment on the square.
Mr. Bradberry stated it took almost 15 years and 4 separate
purchases to put together the land on the south side necessary to
complete phase one of his project, which was to bring back the
dignity of this property and to provide office, restaurant, and
retail leases to businesses. It now exists as a single project
known as Executive Square serving over 40 clients representing a
wide variety of businesses. The parking spaces serve these
businesses. It was absolutely necessary to provide assigned
parking spaces adjacent to interior spaces to the majority of the
clients in order to attract them to the project. Parking spaces
are leased to each client under leases ranging in terms from one
year to several years. He listed many clients of statewide or
national prominence and many fine local companies. The vast
majority have leased individually assigned parking spaces.
Mr. Bradberry showed the Council an artist's rendition of phase
two of his project. Phase two of Executive Square was already
planned and included an office tower, so badly needed in our
town; additional underground parking spaces; and a small plaza
surrounded by additional retail•space.i Proceeding to phase two
'was' being discussed about two -years ago, when he was approached
by representatives of the City concerning a possible Town Center
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behind this.
a -arils ., a._F.'v
Mr. Bradberry stated the position stated in a letter sent to the
City is not a new or changed position. It has remained the same
throughout all discussions with City representatives. He was led
to believe that a long-term lease, as proposed by him, would not
only be acceptable, but would assist the City with this project
financially and in getting it approved by the voters. As a
result, he strongly supported the project. He stated he was even
presented a draft of the proposed lease prior to the election and
was advised certain points could be negotiated if the project was
approved by the voters.
Mr. Bradberry stated he hoped the Council would proceed to
negotiate a fair lease so they can work together on this
worthwhile project. He assured the Council he is only motivated
by the desire to protect the property, to serve his clients, and
to retain ownership of the property.
In response to a question from an Alderman Trumbo, Mr. Bradberry
stated he does not expect free trash pickup. He explained this
came up because there has to be a place for a dumpster to serve
his building. At the present time, the dumpster is right under
where the town center will be. That point has been discussed
with his architects and they will have a place for the dumpster.
In response to another question from an Alderman Trumbo, Mr.
Bradberry stated he has always wanted to discuss a lease that
would be satisfactory to the City, if it would accomplish his
purposes. He has a large investment on the south side of the
square. He has property on either side of this particular space.
It is the heart of the property. He stated he needs ongoing
control as to what would happen to the property on either side.
Alderman Schaper stated the town center would be a mayor public
facility. The entrance is critical to its functioning. The City
needs to own what becomes the public space. He is not opposed to
doing this in a way that would not hurt Mr. Bradberry's
businesses. He suggested leasing to Mr. Bradberry what he needs
for his businesses.
Alderman Trumbo stated he has a problem with the City taking the
land. Mr. Bradberry has invested a lot of money to build a
viable, ongoing concern. He did not see a problem with a
properly worded, long-term lease.
Alderman Young agreed and added that if it comes down to
condemning the land and the devaluing of the other properties is
added, the price could get expensive.
Alderman Williams thought the value of the other properties would
increase dramatically by having a seven or eight million dollar
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April 7, 1998
project built right next to it. He would like to work out an
accommodation, but had aproblem with investing half a million
dollars on property the City does not own. A jury would say the
property value has increased. He stated he does not want to
condemn the- building,, but would rather work with Mr. Bradberry.
Alder -man Young asked Mr. Bradberry if he would consider leasing
land from the City, after the City purchased it.
Mr. Bradberry replied he would not be interested in that. He
stated he does not mind giving up the primary•use of the land for
the City to use as a town center, but he wants to own the
property in order to have some control of what happens on either
side of it. It is a single unit they want to keep together. It
is there for the City to use and cheaper than if the City bought
it. This has been talked about for two years and never seemed to
be a problem. Many public facilities are built on leased land.
Alderman Schaper stated he has said from the first that the City
needs to -own the property. under the town center, including the
plaza: The -public investment is seven -plus million dollars. He.
stated he is willing to go along and protect Mr. Bradberry's 21
parking spaces in the town center, but the public needs the
security of owning the land., lie is not sure the plaza needs to
be as large'as itis drawn. He mentioned Mr. Bradberry had
talked about retaining the right to build on the eastern 25' of
this`. space.
Mr. Bradberry stated it was brought up by the Planning Commission
that it might be desirable to have little shops on the side of
the plaza, next to Mr. Bradberry's building. He stated his point
was to be allowed to build them. That could be taken out of the
lease.
Alderman Schaper stated that is a plus for Mr. Bradberry, but the
public interest has to come first.
Alderman Young stated Mr. Bradberry's position is the same; the
land is necessary for his project.
Alderman Pettus stated that over the next 75 years, almost a
million dollars would go to Mr. Bradberry's family and the City
still would not own the property. There is precedent for taking
business land, the Walton Arts Center.
Alderman Williams added this is not a business. It is a parking
lot.
Mr. Bradberry responded it is an integral part of his business.
They simply could not have leased spaces had they not been able
to control those parking spaces to lease spots that are adjacent
17
Arils 11 1!/v
to the interior spaces.
Alderman Williams stated there has been no talk of refusing to
replace those parking spaces and with more desirable parking
spaces, covered spaces. Several on the Council feel the plaza
should be City owned and are willing to work out the details to
make it a positive for Mr. Bradberry's businesses.
Mr. Bradberry stated that if the City has to pay for the property
and pay its value to him, he is not only giving up parking
spaces, he is giving up the ability to complete the south side as
he has elected to do it. He is giving up a great deal as far as
future business is concerned. The money the City would pay for
this lot could return a lot more to the City then it would from a
small lease.
Alderman Schaper hoped the City would not end up paying a huge
amount, as Mr. Bradberry would be getting a 75 -year lease on 32
parking spaces, covered garage parking worth a considerable
amount of money and is more than he has now.
Alderman Trumbo stated there is a big difference between what is
being replaced here and what was replaced by the Walton Arts
Center. The Walton Arts Center replaced rundown businesses that
were eyesores.
Alderman Pettus stated they were still people's businesses that
they got their livelihood from.
Alderman Williams stated the only thing being taken is an asphalt
parking lot. We are not talking about taking a single building.
Mr. Bradberry asked if it were cheaper for the City and made more
economic sense for them to lease this over 75 years, getting the
same benefits they would have if they purchased it outright,
wouldn't that be something that the City should consider as a way
to save money.
Alderman Daniel stated it is not just a money consideration. It
is the flexibility it gives the City.
Alderman Williams added that another consideration is not
saddling the generations to come with having to buy this plaza or
to negotiate a new lease that might cost a tremendous amount of
money.
Mayor Hanna stated it is quit possible a lease could be
negotiated and a portion of the money that we would have to pay
for the property if we bought it could be invested to make enough
money to make the lease payments for the next 75 years. That
would save the City money, not spending $900,000. Another option
would be for Mr. Bradberry to retain air rights up two or three
18
April 7, 1998
stories, so he could still build his tower'across those
buildings. if c s;t
Mr. Bradberry stated the tower was going to be phase two of his
project. The plans were drawn up several years ago, before the
remaining part of; the south side property was acquired. The idea
was that once it was acquired, they would move towards this. He
stated'he believes there is a need for office space in downtown
Fayetteville: He stated -he has.preliminary plans, not specific
plans.
Alderman Young stated it appears that. some do not want to
negotiate a lease and Mr. Bradberry is not interested in selling.
He asked Mr. Bradberry if he is interested in negotiating the
sale of the land. The question before the Council is whether or
not to instruct Jerry Rose to continue negotiating a lease or
change to negotiating a sale 6f the property.
Mr. Bradberry reiterated this is the heart of his project and it
is not for sale. He stated he is doing his dead level best to
come up with a lease that is satisfactory to the City that will
last a long time. He stated the City should at least try to
negotiate a satisfactory lease. He stated if that is not
possible, the only conditions under which he would be interested
in discussing a sale would be if the City just bought the whole
thing, the whole south side.
Alderman Schaper stated a public project has to be able to stand
on its own and not be held hostage.
Mr. Bradberry stated there are many public properties built on
leased land.
Alderman Pettus stated the Arkansas legislature has proposed an
amendment to the State constitution which would allow state and
local governments to enter into long-term leases to lease
property or equipment. The state constitution does not now allow
that and she asked if the City can legally enter into a lease.
City Attorney Rose replied it is possible to enter into a long-
term lease. It may require budgetary approval and be subject to
yearly budgetary approval. That risk would be run by Mr.
Bradberry more than the City. The City would be secure in the
lease as long as the budgetary advances are made. If the City
stopped making payments, Mr. Bradberry would still own the land.
Alderman Trumbo asked if this should not have been anticipated
and addressed before this all got started.
Alderman Schaper responded it was always anticipated that we
would buy this thing. We've always said we need to own the land
it is on. That's why we worked out the elaborate deal with the
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• r -
Downtown Parking District.
•
Alderman Williams stated he, too, always assumed we would own the
property. He was not aware of any lease proposal until he heard
from Mr. Bradberry. There was some miscommunication. Evidently,
the staff had talked to some extent with Mr. Bradberry about a
lease, but it was not presented to the City Council.
Alderman Trumbo stated protracted litigation will not serve
anybody in this situation. Interest rates could be 200 bases
points higher by the time it is rectified.
Alderman Miller stated this looks like a good deal for Mr.
Bradberry. The City has to pay the taxes, the insurance, and all
the upkeep. Mr. Bradberry gets access to some of the property.
He stated he does not like the lease the way it is. If a better
lease can't be negotiated, we should try to do what needs to be
done on a friendly basis to expedite this.
Alderman Williams stated condemnation proceedings would not
prevent the project from going forward. He stated it would be
better to reject the lease concept. He hoped a good sale could
be negotiated.
Alderman Williams moved to ask the City Attorney to enter into
negotiations to purchase the Bradberry property. Alderman Pettus
seconded.
Alderman Trumbo had confirmed that there is no money allocated
for this and we are already over budget.
Steve Ward, Fayetteville Chamber of Commerce, stated what the
Council is pursuing is out of context with what it started out
with. The A & P Commission entered into discussions and
negotiations with Mr. Bradberry. Mr. Bradberry assured the A & P
Commission that he supports the project and has shown that
support all the way through. He stated what is being done at the
meeting is unfair to Mr. Bradberry. He hoped to continue to
negotiate with Mr. Bradberry to a point that can't be resolved
and then to proceed from there. Mr. Bradberry is owed the
opportunity to attempt to negotiate a lease.
Mr. Ward stated this project is an A & P Commission project, from
beginning to end.
Alderman Williams stated he has been on the A & P Commission for
the last year and a half and no lease agreement or negotiation
has been brought forward from Mr. Bradberry.
Mr. Ward stated the Mayor made the initial contact with Mr.
Bradberry.
20
April 7, 1998
Mayor Hanna stated that: when this idea was ..started, we weren't
talking about leasing orbuying that whole lot. We were talking
about an entry way, a sidewalk, an elevated walkway to get to -the
town center. It is important to have access from the square to
the town center. .Mr. Bradberry offered that free, to begin with,
as a walkway. In the beginning, no one was discussing using that
whole piece of property.
Alderman Zurcher hoped no one is under the impression that the
A & P Commission could speak for the Council. It sounds like Mr.
Bradberry had assurances that we wanted to lease, but it never
came to this Council as any kind of a lease agreement.
Mr. Ward stated these are A & P funds and this is an A & P
project. Within those guidelines, the A & P Commission was
pursuing what it took to make the project come together,
including access to the property. Those negotiations were
entered into in a business -like manner.
•
Alderman Trumbo pointed out that the brochure that went out
before the city vote says 12,000 sq. ft. of new plaza and
landscape areas would span the square gardens. That is what the
voters voted on.
Anne 'Murphy,`"citizen,` underscored that no money has been
allocated for the lease or the purchase of this land. This means
-that whichever way. the City goes,, additional money will have to
go.into the project.: -She reminded the Council that this passed
by a small margin of a'small.percentage of voters. If we are
talking about cost overruns, the voters have a place in this
discussion.: This situation illustrates there is not clear
communication. The details have not been covered. She is very
concerned about the flawed decision making process. She felt Mr.
Bradberry made a good point when he said he has contributed to
the enhancement of the Fayetteville square. She wondered if it
is not unjust to even suggest condemning the property. In light
of what we now know, perhaps the project should be.reconsidered.
Diane Boyd, manager of Executive Square, Inc., responded to
comments that the Council did not know about a lease. Since
1995, she has been involved in numerous meetings with
representatives from the A & P Commission, the City, and the
architect to work out the details of the lease. She stated she
was presented with a draft of a lease. The entire time this has
been dealt with under the representation that the City or the A&P
Commission would lease the property, because she has not been
interested in selling it.
Ms. Boyd stated that rather than increasing the value of the.
property, there are some definite problems. The plaza cuts off a
big part of their building. It towers over another building.
She stated she has spent hours with the architect talking about
21
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y AW !% L11 1, arra
what would have to be done in order not to harm the other
buildings.
Ms. Boyd stated it is not as though they are suddenly saying they
want a lease. They have helped with the town center and want to
do it and will do anything to cooperate in working out terms of
the lease. The initial lease received from the City did not have
some of the protections that were asked for to protect the
property. She was told those could be worked out and she was
told to draft a lease. She stated they have never negotiated on
the lease.
Ben Mayes, Administrative Services Director, stated he drafted
the initial lease. He stated staff had brought to the Council
the acquisition of a lot owned by the Downtown Parking
Improvement District. The Council told staff to stop working on
this until after the vote. That is why the lease was started in
1995 and never came forward until after the vote. After the
vote, they met one time with Ms. Boyd. The Council could either
have done all this work and then voted on it, or it could have
voted on the project and then proceeded. The Council and A & P
Commission elected to proceed without detailed drawings and
without leases and land acquisition. The initial lease was
drafted by staff because Mr. Bradberry had been approached and
was not interested in selling the land. It was only for the
provision of the exact number of parking spaces they were losing.
The initial idea of the town center was to have the parking
extend under the plaza area, so it made sense to provide them
spaces immediately below what they were losing. Once staff was
instructed not to go forward, staff did not go forward. This is
the first response since that date.
Mayor Hanna stated he thinks it is wrong not to give the lease a
chance to be brought forward and worked on.
Alderman Pettus was not in favor of this because it has been
shown that initial conversations about a lease have become
binding representations in the minds of some people. If we vote
to negotiate a lease, it may be perceived to be binding. She
stated she wants to buy the property, not lease it.
Mayor Hanna called for a vote on the motion to have the City
Attorney enter into negotiations to purchase the property.
Upon roll call, the motion carried on a vote of 5 to 3, with
Aldermen Miller, Young, and Trumbo voting no.
PROPOSED CHANGES TO TOWN CENTER
Mayor Hanna introduced proposed changes to the town center from
the Advertising and Promotion Commission.
22
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April 7, 1998
Mayor Hanna stated that staff continues to+believe that it is
important to provide as much parking as possible and prudent as
part of the town center project. As Mayor, he recommended that
the Council instruct the architect to proceed with bid plans to
include all three complete levels of anticipated parking,
approximately 230 spaces,.for the following reasons:'
The -town Center' was introduced 'several years ago as a
project that could help the parking situation in the
downtown area: The citizens -understood during the town
center campaign that there would be approximately 230
parking spaces in conjunction with the project. The town
,center.feasibility study on which the bond requirements were
based.estimated the parking deck to cost $3.3 million to $4
million, for an average of -$3.-7 million. The latest
estimate of the total project cost of $8.5 million includes
a parking estimate of $3.7 million for all the approximately
230 spaces. This item is closer to the estimated cost used
in the feasibility study and bond sizing estimates than any
other construction cost item. The current estimates are
just that, estimates. The bids could come in higher or
lower than these estimates. When bids are received, the
City Council and Advertising & Promotion Commission will
make the final decisions, if necessary, on design
alterations and additional financing. He proposed having
Richard Alderman bid on all three decks.
Alderman Daniel asked if the Council could go with Mr. Alderman
to look at the actual model, which was in the foyer.
Richard Alderman, architect, stated that model is for the
ultimate project, the $8.S million. He offered to bring it to
the council chamber. The difference in the model has to do with
the roof line and the materials on the outside, which were never
in any of the preliminary drawings.
Alderman Williams agreed with the Mayor, though one of the ways
the A & P Commission looked to save money was a $450,000 saving
from eliminating half of the bottom parking deck. If it were
bid, it might actually come down and we could afford the full
parking deck as originally designed. If not, it could be faced
at that time. It would be hard to add that on, if the bids came
in lower than expected.
Mr. Alderman,pointed out that State law requires having deductive
alternates only. Regarding the tower, he stated it is his
responsibility to show what the City can afford. He does not
think the City can afford a real tower with a point.
Alderman Young askedhow much having the full parking deck
underneath the town center would cost. He asked if what the
Mayor suggested could be done. for $6.95 million.
23
,
Mr. Alderman did not think the building could be built with that
on there, it is worth an estimated $450,000.
Alderman Schaper stated the A & P Commission was happy to delete
the parking but didn't budge on the suggestion to trim 20' off
the south side of the building, which was over the estimate and
would have saved $454,000. The Council needs to set its
priorities.
Alderman Young, referring to a conceptual budget dated June 10,
1996, asked if the building, without the parking, would cost
roughly $4 million.
Mr. Alderman replied that on June 10, 1996, a preliminary budget
was made. The total cost of the building, the exhibition hall
and support spaces, was given as $2.6 to $3.4 million. The
parking deck was $3.125 million to $3.750 million. The overall
budget was $6.1 million to $7.6 million, hard construction
numbers at that time. Taking the contingency of $.5 million, it
looks like $4 million for the parking deck and $3.3 million for
the building itself.
Mr. Alderman stated the March 9, 1998, document is the breakdown
of all the numbers, the $7 million budget. The building itself
is $3.75 million. The parking deck is $300,000. The plaza is
$250,000. The parking deck number includes the basic site work.
Mr. Alderman clarified that he was being asked to bid the project
with just the parking and not the other features being discussed,
bidding something that is around $7.5 million and hoping it will
come in at $7 million.
Mr. Alderman stated they are fine bidding the rest of the parking
as a deductive alternative. They have tried to show what they
have heard everyone wants the building to be.
Alderman Young stated the people voted for $6.95 million. His
vote for the bonds must reflect what the public voted for. If
the A & P Commission wants more money, they can ask the people
for more. This is between the A & P Commission and the people.
Alderman Trumbo stated he is in favor of bidding this project
based on all the material presented to the voters and based on
the drawings shown to the public.
Mr. Alderman responded there is no difference other than 40
parking spaces.
Mayor Hanna reiterated he is asking for those parking spaces to
be included. Three A & P Commissioners, one or two councilmen,
the Downtown Parking District, and a lot of business people got
behind this project because of the parking.
24
April 7, 1998
Mr. Alderman stated that to bid this out and then change the
project afterwards is not, cost-effective.:n We need to come up
with the best possible project.with hopefully one deductive for
parking. If we start negotiating, we will get sixty to seventy-
five cents on the dollar. He cautioned against trying to change
the job later.
Alderman Williams agreed to bidding what the A & P Commission has
worked out to meet the budget with at least that one deductive
alternate. He did not support using the concept drawing that was
done after the election and making cuts from that.
Alderman Zurcher supported taking it back to voters, if it costs
more money to give them what they want.
Alderman Williams responded that the A &P, Commission has already
determined what they can leverage through bonds and through the
current tax. We would not have to go to the voters to use
capital improvement funds to improve or to build a portion of
this project. He hoped we don't have to do this, but he is in
favor of building a building that is a true asset and civic
improvement.
Alderman Miller stated the voters were presented with a town
center and a bond issue. They did not agree to spend capital
improvement money on this.
rt
Alderman.Schaper asked if one of the deductive alternates could
p be' -to decrease the size. -
0.
Mr: Aldermanrespondedthat much smaller than 14,000 sq. ft.
doesn't help us any. That,is the breakpoint for handling the
bigger conventions and making a difference in attracting people
to Fayetteville. • This could be done, but the fewer deductive
alternates, -the better. u . ,
Alderman Williams reported that the A & P Commission was
unanimous in not wanting to reduce the size. It would cut the
available uses of the building dramatically and it would be
difficult to enlarge in the future.
Mr. Alderman pointed out the land south of this building needs to
be looked at as possible future parking and expansion. The
property and view from the back end of the building is very
important,- too.
Alderman Trumbo asked if the original picture showed the whole
plaza on Mr. Bradberry's parking lot.
Mr. Alderman replied it did show the plaza go all the way out.
An area was marked off reflecting Mr. Bradberry's desire for some
future retail.
25
nt. 11 ..,
Sue Clemons, Friends for Fayetteville, gave written comments to
the Council regarding the town center. She stated Friends for
Fayetteville likes the idea of a town center to enhance the sense
of community on the square and to enhance economic viability.
Personally, she is concerned about all the details that need to
be worked out. She asked if costs for landscaping and purchasing
or leasing the plaza were included. She was told $250,000 has
been budgeted to do the plaza. She asked about ownership and
operation of the facility. She stated it is a concern that
whoever manages the building commits to providing meeting space
for non-profit organizations and public bathroom accessibility.
City Attorney Rose replied that the Council has reflected that
the City of Fayetteville will be the owner of the building. The
management may be anyone the City names. It is logical for that
to be the A & P Commission. He stated he would present to the
Council at the next meeting a management lease with the A & P
Commission.
TOWN CENTER BOND ISSUE
Mayor Hanna introduced an ordinance providing for the execution
of documents needed to complete the issuance of the Hotel and
Restaurant Gross Receipts Tax Bonds, Series 1998, the proceeds of
which will be used to partially finance the construction of the
Town Center and Parking Garage on the south side of the downtown
square. In addition, the City Council is requested to grant the
authority for the Budget Coordinator to execute any budget
adjustments necessary to recognize the bond proceeds and bond
issuance costs.
City Attorney Rose read the ordinance for the first time.
Ben Mayes, Administrative Services Director, stated staff does
not intend to market the bonds until directed but wants the
Council to have time to look at it and ask questions. The bond
attorney could be present at the next meeting.
David Hausam, of Llama Company, reviewed a handout.
Jeff Erf, citizen, asked why there are two underwriters for the
bond issue and if there was a bidding process for the
underwriting contract.
Mayes replied there can be any number of underwriters. It was
decided to use two because of the size of the issue.
Alderman Schaper added that these two firms are complementary in
their strengths and marketing plans. It doesn't cost more money.
This item was left on first reading.
26
Alderman Miller
April 18, 1998.
April 7, 1998•
ADJOURNMENT °
4
e
announced a'hous'eh-old hazardous waste roundup for -
T - T...:.
City Attorney Rose -announced h
Council meeting but would be a
Mayor Hanna adjourned the meet
e would not be present for the next
t the next agenda session.
ing at 11:00 p.m.
77