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HomeMy WebLinkAbout2020-01-21 - Minutes -Council Member Sonia Gutierrez Ward 1 Position 1 Council Member Sarah Marsh Ward 1 Position 2 Council Member Mark Kinion Ward 2 Position 1 Council Member Matthew Petty Ward 2 Position 2 Mayor Lioneld Jordan City Attorney Kit Williams City Clerk Kara Paxton City of Fayetteville Arkansas City Council Meeting January 21, 2020 City Council Meeting Minutes January 21, 2020 Pagel of 33 Council Member Sloan Scroggin Ward 3 Position 1 Council Member Sarah Bunch Ward 3 Position 2 Council Member Teresa Turk Ward 4 Position 1 Council Member Kyle Smith Ward 4 Position 2 A meeting of the Fayetteville City Council was held on January 21, 2020 at 5:30 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Jordan called the meeting to order. PRESENT: Council Members Sonia Gutierrez, Sarah Marsh, Mark Kinion, Matthew Petty, Sloan Scroggin, Sarah Bunch, Teresa Turk, Kyle Smith, Mayor Lioneld Jordan, City Attorney Kit Williams, City Clerk Kara Paxton, Staff, Press, and Audience. Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions: None City Council Meeting Presentations, Reports, and Discussion Items: Presentation of the City of Fayetteville Martin Luther King Brotherhood Award. City Attorney Kit Williams: For the last 18 years it has been my honor and privilege to recognize a worthy City of Fayetteville employee to receive the Dr. Martin Luther King Jr. Brotherhood Award. This award is given annually in recognition to a city employee whose service to our city exemplifies Dr. King's dream of justice, equality, brotherhood, and service. This year's honoree joins a distinguished list of city employees who have embodied Dr. Martin Luther King's dream and helped fulfil his legacy of service. This year's 2020 City of Fayetteville Martin Luther King Jr. Brotherhood honoree has worked for the city and citizens of Fayetteville for over 14 years. During this entire time, she has steadily endeavored to improve her knowledge, capabilities, and service. She attended special training and education classes put on by the Arkansas City Clerks Treasurers Association and the International Institute of Municipal Clerks. Both organizations 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www -fa yetteviIle-ar_gov City Council Meeting Minutes January 21, 2020 Page 2 of 33 awarded her certifications as a highly trained City Clerk. Unfortunately, Deputy City Clerk Lisa Branson needed all this training, as well as the training she received for more than 13 years from City Clerk Sondra Smith when she tragically died last year. Dr. King has said, "Everybody can be great because everybody can serve. You only need a heart full of grace and a soul generated by love." Lisa has such a heart and her service as interim City Clerk despite the tragic circumstances was great. Dr. King said, "All labor that uplifts humanity has dignity and importance and should be undertaken with painstaking excellence." Lisa has always undertaken her duties with such excellence. She has consistently treated all applications for City Council appointments for various committees and commissions with fairness and understanding. Lisa has patiently dealt with upset citizens whose applications could not be accepted. Lisa displayed kindness and concern while still upholding the City Councils rules for all applicants with excellence. When Sondra's death left a tragic void in the City Clerk office and in our government, Lisa stepped forward to brilliantly fill that void and successfully perform both duties until City Clerk Kara Paxton could be appointed by the City Council and assume those duties. Lisa Branson, Deputy City Clerk: Thank you. I am very honored. ORT -Ozark Regional Transit -_ Periodic Report Jeff Hatley, Ozark Regional Transit Public Information Officer gave a brief presentation of ORT's Periodic Report. Mayor Jordan stated RFQ 19-01 Olsson Inc., A.14 on Consent was requested by a Council Member to be pulled for discussion. RFQ 19-01 Olsson Inc.: A resolution to approve a professional engineering services agreement with Olsson, Inc., pursuant to RFQ #19-01, in the amount of $634,100.00 for site selection and design services for a replacement parking deck for the Cultural Arts Corridor Project, to approve a project contingency in the amount of $64,000.00, and to approve a budget adjustment. City Attorney Kit Williams: A single City Council Member can remove an item from Consent. Council Member Scroggin: A citizen asked for this to be pulled and look at it a little more. Peter Tonnessen, Ward 3 stated they shouldn't change the parking from where it is right now. He stated he hadn't realized when they were talking about an Arts Corridor, he was thinking about a linear kind of park. He stated he is opposed to the Depot parking lot. He stated his opposition because of aesthetics. He stated it is premature to do anything with $700,000 worth of engineering funds until there is a decision to build a new lot. He stated the city should show a little more respect for parking until events drive it economically. Dot Neely, Ward 3 gave a brief description of the item. She stated she prefers the parking garage on Spring Street, but would hate to see the historic buildings gone. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 3 of 33 Mayor Jordan clarified that the resolution is about hiring a firm to design the parking facility. Kendall Curlee, 524 West Prospect Street stated she would like to see more people at the table than just an engineering firm. Mayor Jordan: How was the selection done? Susan Norton, Communications and Marketing Director: It was a typical Purchasing process with an RFP and a committee. Wade Abernathy, Bonds Projects and Construction Manager: The engineering service was advertised in a RFQ, which resulted in the Selection Committee choosing Olsson. City Attorney Kit Williams: An REQ means Request for Qualifications and that is how you have to select professionals to do a city project? Wade Abernathy: Yes. City Attorney Kit Williams: State law requires us to do that and we are required to hire a professional company that will be responsible for a design rather than having volunteers. We went through what was required under state law in order to get this done. Council Member Petty: I served on the Selection Committee. Our principle concerns were how quickly the team could act and deliver the designs to the project and how well we thought they would be able to work with third parties. Olsson answered those questions with many other and that's the reason the Selection Committee felt comfortable selecting them. Council Member Marsh: This is for structural engineering, civil engineering or are we going to have an architect that's going to oversee this process? Wade Abernathy: The architectural would be a separate contract. Council Member Marsh: Why are we hiring the engineer first? Wade Abernathy: For the structural to tell us which way to go, as far as precast, cast -in-place, tilting or flat. That will help us start with a conceptual budget. Council Member Marsh: We aren't bringing the whole team on board and using an integrated design process? Wade Abernathy: Not this early stage. Council Member Marsh: Which is when an integrated design process yields the most benefit. Council Member Scroggin: Seems like most of the comments from citizens were over which place they want. This RFQ allows both of them. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviI1e-ar.gov City Council Meeting Minutes January 21, 2020 Page 4 of 33 City Attorney Kit Williams: We need an engineering contract before we can build a deck. We committed under the bond issue that we would build a deck. Council Member Scroggin moved to approve the resolution. Council Member Bunch seconded the motion. Upon roll call the resolution passed unanimously. Resolution 32-20 as recorded in the office of the City Clerk Mayor Jordan stated Regulation 37 Proposed Nutrient Trading Regulation, A.16 on Consent was requested by a Council Member to be pulled for discussion. Regulation 37 Proposed Nutrient Trading Regulation: A resolution to authorize the City Attorney to respond to and oppose the Springdale Water Utilities' request before the Arkansas Pollution Control and Ecology Commission to substitute itself for the Northwest Arkansas Nutrient Trading Research and Advisory Group, and then to pursue adoption of the Regulation 37 proposed Nutrient Trading Regulation rejected by the Fayetteville City Council. Council Member Turk stated they had new information and requested for City Attorney Kit Williams to discuss it. City Attorney Kit Williams: This was drafted a day after I received surprised notification from the Springdale Water Utilities and the Attorney that had been representing us and had withdrawn. Even though the body of this is correct, the title is not. I recommend you amend the title to say, "A resolution to authorize the City Attorney to respond to and oppose the Springdale Water Utilities' request before the Arkansas Pollution Control and Ecology Commission to possibly substitute itself for the Northwest Arkansas Nutrient Trading Research and Advisory Group, and then to pursue adoption of the Regulation 37 proposed Nutrient Trading Regulation recommended by the Fayetteville City Council." Council Member Petty moved to amend the title as read. Council Member Scroggin seconded the motion. Upon roll call the amendment passed unanimously. City Attorney Kit Williams: This afternoon I received from the Arkansas Rural Water Association, the Beaver Water District, and Central Arkansas Water District an objection to the request of the Springdale Water Utilities to substitute parties and in the alternative request a substitute Arkansas Water Rural Association, Beaver Water District, and Central Arkansas Water as parties. We agree with the Beaver Water District with having the same highest goal of water quality. We want to do this as cost effective as possible, but not sacrifice water quality. This objection was filed today by that group and I am glad to see it. If you authorize me, we are going to file a similar objection tomorrow. I will keep you informed. Council Member Turk: Thank you to the City Council in previous votes. Thank you to City Attorney Williams for all his support in working with our water suppliers to better protect water quality. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 5 of 33 Council Member Kinion spoke about this being at the forefront of discussion at the Water & Sewer Committee for quite some time. He thanked Council Member Turk for her active participation in this process. He spoke about the value of the Nutrient Trading Regulation. Council Member Turk moved to approve the resolution. Council Member Smith seconded the motion. Upon roll call the resolution passed unanimously. Resolution 34-20 as recorded in the office of the City Clerk Agenda Additions: None Consent: Approval of the December 17, 2019 City Council Meeting Minutes. Approved Lewis Ford: A resolution to authorize the purchase of three Ford F250 trucks from Lewis Automotive Group of Fayetteville in the total amount of $82,698.00, pursuant to a state procurement contract, for use by the Parks & Recreation Department and the Water and Sewer Operations Division. Resolution 20-20 as recorded in the office of the City Clerk Bobcat Company: A resolution to authorize the purchase of Bobcat Skid Steer Loader from Bobcat Company of West Fargo, North Dakota for the amount of $61,840.62 plus applicable taxes and freight charges, pursuant to a Sourcewell cooperative purchasing contract, for use by the Wastewater Treatment Division, and to approve a budget adjustment. Resolution 21-20 as recorded in the office of the City Clerk Vac -Con, Inc.: A resolution to approve the purchase of a Vac -Con Xcavator from Vac -Con, Inc. of Green Cove Springs, Florida in the amount of $414,509.00 plus applicable taxes and freight charges, pursuant to a Houston -Galveston Area Council cooperative purchasing contract, for use by the Utilities Department. Resolution 22-20 as recorded in the office of the City Clerk Superior Chevrolet: A resolution to approve the purchase of two Dodge Ram 1500 trucks from Superior Chevrolet of Siloam Springs in the total amount of $45,240.00, pursuant to a state procurement contract, for use by the Utilities Department. Resolution 23-20 as recorded in the office of the City Clerk 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www. fayetteviIIe-ar.gov City Council Meeting Minutes January 21, 2020 Page 6 of 33 Bid # 19-51 Hilbilt Sales Corporation: A resolution to award Bid # 19-51 and authorize the purchase of a Clement All-Star Dump Trailer from Hilbilt Sales Corporation of Benton for the amount of $41,458.00 for use by the Wastewater Treatment Division. Resolution 24-20 as recorded in the office of the City Clerk Environmental Products Group: A resolution to authorize the purchase of a Elgin Crosswind Street Sweeper from Environmental Products Group of Memphis, Tennessee in the amount of $266,434.39, pursuant to a Sourcewell cooperative purchasing contract, for use by the Transportation Department. Resolution 25-20 as recorded in the office of the City Clerk Superior Chevrolet: A resolution to approve the purchase of a Chevrolet Silverado 1500 truck from Superior Chevrolet of Siloam Springs in the amount of $30,571.00, pursuant to a state procurement contract, for use by the Fire Department. Resolution 26-20 as recorded in the office of the City Clerk BSN Sports, LLC: A resolution to approve the purchase of a Turf Tank robotic line painter from BSN Sports, LLC of Dallas, Texas in the amount of $49,999.00 plus applicable taxes and freight charges, pursuant to the NIPA/OMNIA Partners cooperative purchasing contract, for use by the Parks and Recreation Department. Resolution 27-20 as recorded in the office of the City Clerk Garver, LLC Task Order 13: A resolution to approve Task Order No. 13 with Garver, LLC in the amount of $109,800.00 for design and bidding services for the proposed HVAC replacement in the terminal building at Drake Field, and to approve a budget adjustment. Resolution 28-20 as recorded in the office of the City Clerk Fayetteville Fire Department Donation: A resolution to approve a budget adjustment in the amount of $1,000.00 representing donation revenue to the Fayetteville Fire Department from the Bank of Fayetteville for the annual employee service awards event. Resolution 29-20 as recorded in the office of the City Clerk Presidio Networked Solutions, Inc.: A resolution to authorize the purchase of networking equipment and software from Presidio Networked Solutions, Inc. pursuant to a TIPS cooperative purchasing contract on an as needed basis through July 31, 2021 and any future renewal periods, and to approve a budget adjustment. Resolution 30-20 as recorded in the office of the City Clerk 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 7 of 33 Housing Success Funding Distributor Agreement: A resolution to authorize Mayor Jordan to sign a Housing Success Fund Distributor Agreement with the Endeavor Foundation for the City of Fayetteville to receive initial funding of $25,000.00 to assist individuals and families achieve stable housing. Resolution 31-20 as recorded in the office of the City Clerk RFQ 19-01 Olsson Inc. was removed from the Consent Agenda for Discussion. RFQ 19-01 Olsson Inc.: A resolution to approve a professional engineering services agreement with Olsson, Inc., pursuant to RFQ #19-01, in the amount of $634,100.00 for site selection and design services for a replacement parking deck for the Cultural Arts Corridor Project, to approve a project contingency in the amount of $64,000.00, and to approve a budget adjustment. Resolution 32-20 as recorded in the office of the City Clerk 2020 Reappropriating Capital Projects: A resolution to amend the 2020 Adopted Budget by reappropriating $209,810,000.00 in bonded or ongoing capital projects, outstanding obligations and grant funded items. Resolution 33-20 as recorded in the office of the City Clerk Regulation 37 Proposed Nutrient Trading Regulation was removed from the Consent Agenda for Discussion. Regulation 37 Proposed Nutrient Trading Regulation: A resolution to authorize the City Attorney to respond to and oppose the Springdale Water Utilities' request before the Arkansas Pollution Control and Ecology Commission to substitute itself for the Northwest Arkansas Nutrient Trading Research and Advisory Group, and then to pursue adoption of the Regulation 37 proposed Nutrient Trading Regulation rejected by the Fayetteville City Council. Resolution 34-20 as recorded in the office of the City Clerk Council Member Marsh moved to accept the Consent Agenda as read. Council Member Gutierrez seconded the motion. Upon roll call the motion passed unanimously. Unfinished Business: ADM 19-6649 (City Plan 2040): A resolution to approve and adopt City Plan 2040 as the Comprehensive Land Use Plan for the City of Fayetteville and its planning area. At the December 3, 2019 City Council Meeting this item was tabled to the December 17, 2019 City Council Meeting. At the December 17, 2019 City Council Meeting this item was tabled to the January 21, 2020 City Council Meeting. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar-gov City Council Meeting Minutes January 21, 2020 Page 8 of 33 Jonathan Curth, Development Review Manager gave a brief description of the resolution. He stated staff and Planning Commission recommend approval of the resolution. He spoke about an amendment to have a more robust historic preservation element. He proposed two short term action items, one of which is to encourage the creation of a local regulated district. He spoke about wanting to explore some other tools to encourage and support preservation efforts. He stated they want to seek funding and complete a city-wide community preservation plan. Council Member Scroggin: On the short-term action items, are there other cities that have something similar to this? Is there a benchmark or metric? Jonathan Curth: We look at the benchmarks as where we are in achieving the goals within our plan. A lot of other cities have pursued these things in Arkansas. It is something we have fallen further down rankings when we have gone for grant money because we've not had this more robust language in our comprehensive plan. Council Member Scroggin: There is a precedent for this? Garner Stoll, Director of Development Services: Yes. Local historic districts exist in Eureka Springs, Russellville, Conway, Little Rock, and El Dorado. Council Member Scroggin: When those are enacted, if there's properties that financially can't be repaired, what happens to those? Is this to find out that process? Garner Stoll: The process for doing a local district is entirely up to the Council. There is an ongoing effort to do it by petition in the Washington Willow neighborhood. We engaged a consultant to create design standards. They are in the middle of a petition drive. Even if they achieve the 50% through the petition process, which state law requires, it's still up to Council to create the district. This doesn't commit you to anything, other than it is official policy to try to encourage historic districts. Council Member Scroggin: I am in support of the change. Council Member Turk: Even more cities than the ones Garner listed have historic district ordinances that have been successful. Usually Fayetteville is the frontrunner on those progressive things, but in this case, we are way behind. We don't have any historic district ordinances in place. When I reviewed the final version of the 2040 Plan, we added that section in previous versions, but there was no accompanying action item to follow through. The second part seeks funding to complete a city-wide community preservation plan, which has been recommended by the Arkansas Historic Preservation group in Little Rock. We haven't been able to receive more funding because we don't have a Historic Preservation plan. If we can move forward to develop that and incorporate it as an action item, we will have a greater chance of receiving funding to assist in our historic preservation activities. Council Member Smith requested clarification on the language for the vote. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 9 of 33 Jonathan Curth: The paper copy in front of you is the one that we shared with Council Member Turk. Does it not reflect it accurately? Council Member Smith: It's all of that, plus another phrase that says, "and make the case for preservation to decision makers and community members." That doesn't appear on the screen version. Garner Stoll: It doesn't matter to staff which ever Council prefers. I took it out because I thought it was redundant, but I don't have any objections to the intent. The abbreviated one on display is the one I had sent to Council Member Turk. Council Member Smith: The one on the screen would be my preference. It's strange to seek funding to make a case for something. Garner Stoll: I don't have an objection. If Council wants, we can keep the language to educate the community. There was brief discussion about the proposed amendment as displayed on the screen. Council Member Scroggin moved to amend the resolution as written on the screen. Council Member Smith seconded the motion. Upon roll call the motion passed unanimously. Peter Tonnessen, Ward 3 spoke in opposition of the resolution. He spoke against Council Member Petty being able to vote on the resolution because he believes there is a conflict of interest. He stated his dissatisfaction with Council Member Petty's form of email correspondence. Will Dockery, 4149 West Bradstreet stated his appreciation of the resolution. He requested for performance zoning to be added in as a tool. He requested after the resolution is passed, can they approve or review revised Chapters 167 and 177 of the Code that the Urban Forestry Advisory Board put forward almost a year ago for Council review. Angela Belford, Fayetteville Housing Authority Executive Director stated the City Plan 2040 is exciting to read as a housing advocate. She requested for housing to be kept at the forefront. Dot Neely, Ward 3 spoke about stormwater management. Council Member Petty spoke about the plan being very good. He thanked staff for all their hard work. He stated he wished it was a bit more aggressive, but believes it represents a diverse consensus. He spoke about climate change. He spoke about infill. He spoke about a drainage vacation easement. Council Member Scroggin spoke in favor of the resolution. He spoke about housing needs. He stated allowing people to live close to where they work is not only humane, it's the environmentally friendly thing to do. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar gov City Council Meeting Minutes January 21, 2020 Page 10 of 33 Council Member Marsh thanked staff for their hard work because it is an excellent plan. She stated she wished it was a little bit more aggressive, but believes it represents a good compromise. She stated there is a housing crisis in the community. She spoke about creating opportunities for attainable housing and growing a livable transportation network. Council Member Turk thanked staff for including the Historic Preservation components of the plan. She spoke about stormwater and traditional neighborhoods. She stated she wish there were improvements that could have been made, such as having a statistically unbiased survey. She wants to have the statistically unbiased survey in the next plan. She stated they are still deficient in protecting well established neighborhoods. She spoke about the charm and vibe of Fayetteville. Council Member Scroggin stated there is absolutely no way to do a truly unbiased sample of citizen responses. He stated it's important that they know which direction the biases are in and then it can be adjusted. He stated the biases are always towards homeowners because homeowners fill out surveys at a lot higher rate than renters or homeless people. Council Member Kinion spoke in favor of the resolution. He stated he believes there was a problem with methodology. He stated they do recognize the biases, but often in the discussion, they weren't pointed out. He stated there are ways to do sound surveys. He spoke about the plan being a beautiful vision plan, but it is not the gospel or ordinances. He spoke about neighborhood protection. Mayor Jordan: How did you gather the information on this? Susan Norton, Communications and Marketing Director: We worked with the Development Services team. The Speak Up Survey was one data point. There were meetings in the public. Mayor Jordan: You had public meetings? Susan Norton: Yes, plenty of public meetings and stakeholder meetings. We went to the people and they came to us. The use of the Speak Up tool is a way of having the most privileged to be able to voice their opinion because it is online. I recognize that because of our dilemma with digital inclusion. It is just one data point though. We have ways of getting to the public that balances it out. I am open to continued conversation about what makes a valid sample. Jonathan Curth stated there were around 12 to 14 events where staff went into the public. He spoke about meetings being conducted and people being spoken with at places like the Farmers Market, University of Arkansas, High School, Artist Laboratory, Community Resources, and Walker Park. He spoke about their efforts in reaching out to the lower socioeconomic population. He spoke about self-selection biases. He stated a statistically valid survey could bring contribution to a future plan. Garner Stoll thanked Council Members for their careful review. He stated the plan is better because of their suggested changes. He thanked a citizen group for their work on the resolution. He thanked Jonathan Curth and Leif Olson for their work. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 11 of 33 Mayor Jordan thanked staff. Council Member Marsh moved to approve the resolution. Council Member Scroggin seconded the motion. Upon roll call the resolution passed unanimously. Resolution 35-20 as recorded in the office of the City Clerk Adopt Revised Future Land Use Map: A resolution to approve and adopt a revised Future Land Use Map. Jonathan Curth, Development Review Manager gave a brief description of the resolution. He stated staff recommended approval. Council Member Turk: With Alternative 1, why is staff not recommending the development of a formal annexation policy? Jonathan Curth stated they are recommending it to be deferred until after adoption of the Future Land Use Map. He apologized if that wasn't clear. He gave brief background description. Garner Stoll, Development Services Director: There is a specific action in the action section of the plan of a one to five-year action to look at our annexation policies. Council Member Turk: Of the 2040 Plan? Garner Stoll: Yes. You are already approved that. Council Member Turk: What is the rush to get this Land Use Map approved now, rather than waiting for an annexation policy to be developed? Jonathan Curth: There is not a rush. Staff wanted to take the opportunity to reflect the capital investments the city has made on Rupple Road. We see a lot of development pressures along Wedington Drive. Council Member Turk: If you decided to start an annexation policy discussion now and postpone agreeing to a Land Use Plan, how long would that take? Garner Stoll: The recommendation as suggested by the Mayor and included in the 2040 Plan is that a Council committee investigate the entire issue. A Future Land Use Map is a parcel of a comprehensive plan. We need the Land Use Plan adopted. The changes that are suggested are much more modest than what was in the 2025 Plan. It suggests rationalizing the edge on the Northwest corner. It doesn't suggest taking in nearly as much land as was in the 2025 Plan, which was pulled back during the recession. A lot more development pressure and utilities have been provided in this area. We sought to do more of a step-down along the Northwest edge as an interim measure. The annexation policy review may identify additional tools for allowing City Council to at least consider annexing larger areas and preserving them. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 12 of 33 Council Member Turk: I encourage that we start working on that as soon as possible. Garner Stoll: We agree. Mayor Jordan: At the end of the day, I wanted to control the land. We are getting a squeeze from a lot of the other cities that are doing development after development. I never was a real big proponent of expansion, but I have warmed up to the idea. Other cities are beginning to come in and take the land that is available to us and develop it however they want to do it. I would rather control how we develop our land around the city and that is why I was in a little bit of a hurry to do this. Council Member Turk thanked Mayor Jordan for clarification. Council Member Smith stated this originally came to us as one item that we put into four different resolutions. He stated there are some changes throughout the city internally to bring into alignment with places where they have approved development that was slightly different from the plan and those are important to have consistent. He spoke about peninsulas of city and county where it makes development approval in those areas difficult. He spoke about the city having appropriate control. He stated as far as waiting for an annexation policy, this is a step in initiating the process to have a more conservative policy on the books until they can do it. He stated he does not want to annex stuff that they can't have the tools to do what they want. Mayor Jordan spoke about wanting to take a little bit at a time and controlling the land to develop it at the city's standards. Council Member Kinion stated they don't prevent sprawl out in the county by not annexing. He stated they prevent sprawl by annexing and then have control of what is happening in the county. He spoke about how to develop property that is on the northwest end of the zoning map. He stated they must look at the importance of annexation to control sprawl and enforce the expectations of the 2040 Plan rather than encourage sprawl. He believes they have better planning tools if they have an annexation policy around the borders. He stated he supports the resolution. Will Dockery stated he does not like Alternate 1. He stated he lives on the west side of town and now his town center area is being taken away. He spoke about a walkable area. Fran Alexander, Fox Hunter Road stated if they annexed her road, she would be in the annexation area. Council Member Gutierrez spoke about tabling the resolution to have more time to review it. Council Member Marsh stated she would be fine with tabling. She requested for staff to respond to Mr. Dockery's concerns. Jonathan Curth: Alternative 1 is existing Future Land Use Map, which shows Residential neighborhood along Rupple Road. Alternatives 2 and 3, staff had proposed revising those areas zoned CS to city neighborhood area. We would be amenable to such an amendment. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIIe-ar.gov City Council Meeting Minutes January 21, 2020 Page 13 of 33 Council Member Petty: Did the Planning Commission not recommend one of the other Alternatives? Jonathan Curth: The Planning Commission did not recommend Alternatives 2 and 3. Their concerns was based on placing the potential for annexation ahead of the creation of a more robust annexation policy. That was the genesis of their support for Alternative 1, which is the existing Future Land Use Map. Council Member Petty: Was there a position expressed for one of the other Alternatives if we were to have such a policy? Jonathan Curth: There were a lot of different positions expressed. Several of them were in line with what I have heard tonight. There is concern that there's a significant amount of development occurring outside the city's boundaries, but are not subject to the city's stormwater, tree preservation, and design requirements. These are things that can be disconcerting and create issues in the future if the city were to expand its boundaries. Council Member Petty: Assume someday we have an annexation policy and we followed your advice in how it gets created, does staff have a clear preference for one of the Alternatives? Jonathan Curth stated they agree with the Planning Commissions concerns and are in favor of Alternative 1 until the policy is adopted. He spoke about being in favor for the city to be able to annex properties and have the ability to subject them to the city's ordinances that represents the citizens vision of Fayetteville. Council Member Petty reiterated what he heard Mr. Curth say. He requested to know if he preferred Alternative 2 or 3 for the Future Land Use Map. Jonathan Curth: Our inclination was towards 3, which is the more moderated expansion policy. It would allow some rationalization of those existing boundaries. Council Member Petty: Do you feel that number 3 addresses some of the concern we heard from the public, such as Rupple Road? Jonathan Curth stated yes, it is addressed. He spoke about the areas on Rupple Road zoned Community Services. Council Member Petty: I have been a little uneasy about voting for Alternative 1 because of what we have heard from several of the Council Members and staff. If we have no control over the land, we have no control over how it is developed at all. While we don't have an annexation policy in place today, I don't think it's necessary to have one written down somewhere before we adopt the Future Land Use Map. It is a fact that no single annexation can occur without the City Council voting to do so. The debates in the past about annexation have been quite spirited and would only demand a more robust debate going forward. I am prepared to vote tonight if it is for Alternative 3. This is the third or fourth meeting this has been on the agenda, but we need to move forward. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 14 of 33 Council Member Smith spoke about acting on the resolution because they have been looking at the item since late October. He stated he is afraid they won't see annexation request and instead it will be developed as the county sees fit. He stated he would annex to the planning boundary and take more land under city control if they had the tools to have it in the city limits and not develop it. He stated under current zoning policies, they find themselves almost required to go with low density sprawling residential zones because the city doesn't have a natural preservation zone on the books. He stated he would be comfortable incorporating the strip of city neighborhood from Plan 3 into the amendment on the northwest quadrant. He stated he would be just as comfortable applying the amendment shown to Map 3 instead of Map 1. He stated both would accommodate the interim term and the realignment of interest and Mr. Dockery's concerns, but he would not favor Alternative 3 as it is right now. Council Member Marsh stated generally she has not favored annexations because when some one applies for an annexation it's to build a neighborhood, which is sprawl. She stated they could think about this differently because they would be annexing the Enduring Green Network and could be in favor of a larger annexation area due to that. She spoke about preserving the city neighborhood area on Alternative 3 or is okay with approving number one if they add the Rupple Road area. Council Member Bunch stated she go could either way on choice one or three. Council Member Kinion stated he was in favor of approving number three. Council Member Turk stated she would like to table the resolution for more time to think about it and get a clearer vision. She spoke about wanting to incorporate the Rupple Road area, but wants more time to look at it. Council Member Scroggin stated he thinks they can get the resolution completed tonight because they have had the item for a while. Council Member Turk made a motion to table the resolution to the February 4, 2020 City Council meeting. Council Member Gutierrez seconded the motion. Upon roll the motion failed 2-6. Council Members Turk and Gutierrez voting yes. Council Members Marsh, Kinion, Petty, Scroggin, Bunch, and Smith voting no. Council Member Kinion: We have option 3 to consider, but when is the time that we might want option 3? Council Member Smith: That was going to be my question to the motioner and seconder if they would be friendly to including our northwest quadrant amendment in option 3? Council Member Petty: I'm not sure I understand what the northwest quadrant amendment is? Council Member Smith: As shown here, it would be the yellow, north of Wedington plus Lewis Park and the Police and Fire Stations. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 15 of 33 Council Member Petty: You are talking about the new stuff outside the existing boundary? Council Member Smith: Yes. Council Member Petty: That is fine with me. Council Members Kinion, Bunch and Smith stated they were fine with it. City Attorney Kit Williams stated he wants to make sure staff understands what the motion is. Garner Stoll: The motion is to approve the yellow areas in Alternate 1 and the Rupple Road areas to be in Alternate 3. The existing zoning is reflected by the blue, Alternate 3 on the map. Council Member Petty reiterated what he heard. Evelyn Rios Stafford, 527 South Sherman stated there is a difference between Alternate 1 and Alternate 3. She stated between the airport and Country Club, there's a strip that an Alternate 1 is listed as Industrial and Alternate 3 is listed as Residential. Jonathan Curth: I believe that was a mixture of concern about the floodplain associated with the West Fork White River and the realities of what is existing today. It is an area of very low residential development. It's not Industrial in nature. Chaim Goodman -Strauss, 524 West Prospect: I didn't realize there's a city neighborhood area being planned for the border of Mount Kessler Park. What are the intentions of that? Jonathan Curth: I don't have the institutional knowledge of Leif Olson who is our Long Range Planner. There was a Planned Zoning District approved some years ago for an intensive urban development. That didn't occur and when it expired, the Council elected to rezone the property to a mixture of Urban Thoroughfare and Community Services, which are a mixture of mixed-use zoning districts. Staff is proposing to have the Future Land Use Map reflect the actual zoning. Garner Stoll stated all the alternatives show the blue. He stated there is no difference in the alternatives. He spoke about a master planning effort. There was a brief discussion about the City Council being able to change something later if they choose to do so. Council Member Scroggin spoke about the blue section on the map. He stated if it's currently zoned that and then downzone it, would that be a taking? City Attorney Kit Williams: Zoning controls are passed by the City Council by ordinance. This is merely a guide of what you all think might be in the best interest of Fayetteville. If somebody wanted to build on that land right now with UT, they can, regardless of what you might pass tonight in this Future Land Use Map. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar gov City Council Meeting Minutes January 21, 2020 Page 16 of 33 Council Member Petty moved to approve the resolution. Council Member Bunch seconded the motion. Upon roll call the resolution passed 7-0. Council Members Marsh, Kinion, Petty, Scroggin, Bunch, Turk, and Smith voting yes. Council Member Gutierrez was absent during the vote. Resolution 36-20 as recorded in the office of the City Clerk Sage Partners, LLC Depot Lot Proposal: A resolution to authorize Mayor Jordan to sign letters of intent with Sage Partners, LLC, on behalf of Fayetteville Depot, LLC and Farmers & Merchants Bank (f/k/a The Bank of Fayetteville), for the purchase of approximately 0.6 acres along with necessary permanent access and temporary construction easements at the northwest corner of West Avenue and Dickson Street for the construction of a replacement parking deck for the total amount of $350,000.00, the conveyance of liner building space and approximately 0.2 acres at the north end of the Civic Plaza. At the December 17, 2019 City Council Meeting this item was tabled to the January 7, 2020 City Council Meeting. At the January 7, 2020 City Council Meeting this item was tabled to the January 21, 2020 City Council Meeting. Peter Nierengarten, Environmental Director gave a brief description of the resolution. Council Member Marsh requested a summary of public comments that were received at the Thursday input session. Susan Norton, Communications and Marketing Director passed out a summary. She stated the information is on the website. She stated the comments are organized into three categories with positive, negative, and neutral comments. Council Member Marsh: Describe how we've incorporated these comments and in what ways we have updated the proposal to take into account the public comments and recommendations? Peter Nierengarten: The most significant incorporation into the revised letter of intent is for the long-term preservation and protection of the historic structures on the sites. There were a few comments that desired to get the Police Department a space in the liner building. Final negotiations between Arsaga's and the Depot, LLC be completed prior to the start of construction. That was an important addition and a positive inclusion in the revised letter of intent. Council Member Marsh: When did we receive the revised letter of intent? Peter Nierengarten: This was passed out at Agenda Session last Tuesday. Council Member Marsh: When did the city receive it from the developer? Peter Nierengarten: We got it earlier in the day, last Tuesday. Susan Norton: Just before we gave it to Council. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 17 of 33 Council Member Marsh: Was that before or after the public comment session? Susan Norton: Before. Council Member Marsh: We received the proposal before we had the public input session and we've not received any revisions since taking the public comment? Susan Norton: That is correct. Council Member Marsh: That sums up what has been so frustrating about this process. The people came and gave their valuable time, commented, and attended meetings. They have not been heard and their feedback has not been incorporated into the revision. Susan Norton: This is the same thing I heard earlier when you all were discussing the 2040 Plan. It is fairly impossible to reach consensus on all the different opinions that we have been receiving. That is why we compiled them for you. City staff has done what we can to incorporate the feedback we have heard, which has come from most of the same people that were in the meeting last Thursday night. Council Member Marsh: They felt like they weren't being heard. They gave their feedback and the deal was already written up before the public meeting. Susan Norton: The deal was brought to you for consideration with these public comments for you to make a determination. Council Member Kinion stated he sees some pretty pictures on the Depot lot and a matrix that could flip either way. He stated it is a snarl of traffic with the current parking lot. He stated there have been so many things that have been left out of the discussion into the public. He stated he would like to see some pretty pictures of Shipley alley and how it might be transformed into something awesome. He stated if we are going to present a biased presentation again, we have to accept it for what it is. He stated we don't have the same information of the East lot and haven't spent the same time on the East lot. Susan Norton: We don't have a developer that is associated with the development on the East lot. Council Member Kinion stated they have a biased presentation on the Depot lot and they have not got the same information on the East lot. He stated it has been ignored. He stated he is representing the voice of the people that are talking to him that feel like they are not heard. Council Member Smith: Why do we need the developer to build the Police substation for us to then lease back, as opposed to us building it with bond money? Peter Nierengarten: Through the design process, we would sort out if that is something we would build and own or look to the developer to build and lease. If the Depot lot is selected, we would work through that as part of the preliminary design process. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 18 of 33 Council Member Smith: That is still a point that can be negotiated in the contract differently from the way it is stated in the letter of intent? Peter Nierengarten: Yes. Council Member Smith: Would we be able to pull from the Police facilities bond money to fund part of a substation construction? Paul Becker, Chief Financial Officer: We could use the money for anything that is public infrastructure. We could fund a Police liner building. We intend to put a substation wherever we put the deck. We can pay for that from the bond. Council Member Smith: I don't want anyone to consider this telegraphing a vote or position. On the timeline we talk about having to spend 85% of our bond funds in three years. What happens if we don't hit that mark? Paul Becker: It is possible if we were audited, we would be declared that the bonds would not be non-taxable to the owners, which is the worst thing that could happen. We might yield or we would have to have a very absolute answer to why we did that. We would have to have a very good reason other than we could not make up our minds to move forward. The commitment was made when we issued the bonds with the expectation to complete it in three years. Council Member Smith: If we decided to not spend everything that had been issued, is that an option or does that pose a similar problem? Paul Becker: If we complete a project and we don't spend everything issued, we can transfer that over to debt service. That would pay off bonds more quickly and reduce the total liability. Council Member Smith: We list the design use and restrictions in the presentation and we've talked about that a couple of times. We already have some design restrictions in our code, as far as heights and design standards, what kinds of controls are we looking to impose here? Peter Nierengarten: The letter of intent speaks specifically to a maximum three-story height limit on the building on the north side of the Civic Plaza. Council Member Smith: Are we talking about that same kind of limit on the parts associated with the Depot? Peter Nierengarten: No, we are not. The design use restrictions are on the 5,000 square foot footprint building on the north side of the Civic Plaza. There is a three-story height limit and a requirement that the ground floor have active uses that are complimentary to the Civic Plaza space and sustainability components included in the design of the building. Council Member Smith: It's not always been clear which portions we are talking about applying those limitations too and what the nature would be. As we get into contract negotiations, I hope 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 19 of 33 we will be very specific about that if this is the way we decide to go. Is there capacity where we. could add another 60 if other development were to happen on the East lot in place of that parking? Peter Nierengarten: The development potential that exist is limited by height of the building and the availability of bond funding to construct that parking. Council Member Smith stated the images had the liner building half the depth on the West Avenue side, but at the public input session we talked about less traditional deck options. He requested to know if there was any imagery or discussion to use the two floors to provide additional commercial space and activate street sides and move the parking up. Peter Nierengarten: The only imagery I have is an alley image that contemplates exactly what you are talking about, which is full activation underneath the deck. The rendering contemplates greater use than you are seeing in this image of that ground floor. The language in the letter of intent allows for that flexibility. Council Member Smith spoke about the tax impact of taking current private land and making it into public land. He requested to know if sharing the square footage of the land where it is serving both purposes mitigates that concern? Devin Howland, Director of Economic Vitality stated he ran the millage numbers. He stated he tried to use the same market value assumption of 52 a foot that the others have. He stated it's looking like we are taking raw land off the tax roll. He stated we are placing untaxed public land onto the tax roll and we know there will be a structure. He spoke about an assumption value. He spoke about liner buildings. Council Member Smith: The buildings would still be taxable even though the dirt underneath is not? Devin Howland: Correct. City Attorney Kit Williams: Everything to do with the liner buildings are going to have to be run through our bond counsel. I am concerned about acquiring property that's going to be for the parking deck, which is allowed under our ballot and law. Any acquisition of property that is going to be used by a commercial entity, I don't think we can do that with bond funds. This future concept we are showing right now is why we are going to have to have a contract. I am concerned about trying to mix commercial onto any of the bond money assets. We have a $30 million -dollar bond. The only time Fayetteville has gotten into trouble in the past is on two bond issues where the Board of Directors tried to do the right thing and it blew up in our face and our taxpayers owed many millions of dollars. It left a black mark on Fayetteville and probably caused a change in the form of government in getting rid of all the previous Board of Directors. I am going to look at anything involving commercial or private use and try to make sure it's not on our land. It seems strange that we would want to acquire land or do anything and then start paying market rate rent to our Police Department. I will talk to our Chief of Police and see his position on that. This has some issues in it without a doubt. I'm not going to be in favor of the money we use for our bonds touching 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 20 of 33 anything that could be attacked as something that is improper. If you all pass this letter of intent, I will then look at more of the facts and I'll be able to better explain to you any concerns. Wade Abernathy, Bonds Projects and Construction Manager: Paul has visited with the bond counsel about the liner space. Their position is, as long as we don't spend any bond funds associated with the liner building, therefore the design fees, construction finishes out would all be by the developer. We would keep the money separate. City Attorney Kit Williams: That would include we couldn't acquire the property with bond funds, not if we are going to have something else built on it? Wade Abernathy: Paul thinks we can lease the property to the developer. Paul Becker: I was advised by bond counsel that they would have to pay. They would have to pay the full cost of construction. We would have to retain the underlying property and work something out on the long-term lease. They would have to pay all cost including any structural cost. Kit will have to check all this out. City Attorney Kit Williams: We talked about having additional decks on that if they paid underlying cost for public parking that they might build for their tenants. I will look at this carefully. No Attorney is going to give a firm opinion until they see exactly what the proposal is in a contract. When the contract is submitted to our bond counsel, then he will be willing to give his opinion on what we can and must do. I like liner building and it makes sense to try to hide the ugliness. I want us to be very careful and stay within the law like we did with the other parking deck. Council Member Smith: Moving away from strictly a thin veneer liner building to something that's a more meaningful ground floor use that serves a bigger purpose to the community makes this more appealing. In much bigger cities, tall buildings with multiple owners is common place. This is a vague framework for discussion and there will be more specific contract negotiations. I hope to hear what the public is going to require for the final contract. City Attorney Kit Williams spoke about how the plan could possibly be structured. Council Member Bunch spoke about receiving good comments from the public at the meeting she attended. She stated staff has done a really good job summarizing everything. She spoke about the conceptual drawing. She stated she feels comfortable with what has been provided to Council and the details can be worked out in the contract. Peter Lane, Walton Arts Center spoke about his reasons for supporting the Depot lot. Cary Arsaga, 917 West Cato Springs Road thanked the citizens of Fayetteville for supporting Arsaga's and Mayor Jordan for supporting Arsaga's to be treated fairly. He spoke about the specifics of his contract with House, Inc. He spoke about the deck design. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIIe-ar.gov City Council Meeting Minutes January 21, 2020 Page 21 of 33 Joyce Stafford, 1420 East Rosemont Street spoke about her reasons for not supporting the Depot lot. She spoke about safety issues. Patty Besom, 15 North West Avenue: Will Mr. House be given a strip on the south side of Dickson Street? Mayor Jordan: That is true. Patty Besom stated it did not show up on any of the pictures she saw, which negates the idea of turning the current parking lot into a park. She spoke about Arsaga's being a gathering place. Council Member Kinion: Do you prefer the East lot to the Depot lot? Patty Besom: I voted against this project. The current parking lot would be an ideal place to build a new parking deck. Mayor Jordan: On the Arts Corridor, it did show a building on that area over there. There is a building on the south end and a building on the north end? Peter Nierengarten stated that is correct. He spoke about the schematic plan. David Jolliffe, 1637 North Plantation Avenue spoke in favor of the resolution. He spoke about the renovation of Dickson Street. Richard Berquist, 809 East Lighton Trail stated he is the owner of the Scarpino's building. He stated if the Depot lot is chosen, he hopes there would be some consideration for a better setback. Joe Fennel, 1655 Woolsey requested for Council to make the choice that creates the best opportunities for the future. He spoke in favor of the Depot lot. Jerry Davis, Ward 3 spoke in favor of the Depot lot. He spoke about the positive economic impact. Jessie Ward, 105 North Nolan Avenue spoke in favor of the East lot. She spoke about wanting to keep Arsaga's the way it is. Jim Mitchell, 224 West Watson Street spoke about not wanting the project to interfere with the dignity of the historic space. He spoke about parking concerns. Allison Williams, Horn Street spoke in favor of the East lot. She spoke about setback issues. Jenny Wallace, 339 North West Avenue spoke in favor of the Depot lot. She stated she would not support a secondary exit behind the ice house building. Anne Littell, Johnson Street spoke in favor of the East lot. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 22 of 33 Steve Clark, Fayetteville Chamber of Commerce President spoke about the Cultural Arts Corridor. He spoke about public-private partnership. He urged the Council to make a decision about replacement parking. He stated the Chamber likes the West lot. Ezra Breashears spoke about the amount of money offered to all parties and the developer's monetary gain. He suggested having a non-profit take over the liner buildings to help with housing. Peter Tonnessen, Ward 3 spoke about historic preservation. He stated he prefers the West lot to be left where it is. He spoke about architecture firms. Evelyn Rios Stafford, 527 South Sherman: If you approve this, who is going to negotiate the contract on behalf of the city? City Attorney Kit Williams: Most likely it will be me. I wasn't involved in the initial negotiations. I will take what the City Council wants out of this, what they approve, and I would negotiate that with the current owner. Evelyn Rios Stafford: At any point in this process up until this point, did the city consider bringing on an experienced real estate broker to negotiate this deal? Mayor Jordan: No. Evelyn Rios Stafford spoke about the deal not being a good one. She encouraged the Council to come up with their own letter of intent. She spoke about taxes. Council Member Kinion: Are you endorsing the Depot location? Evelyn Rios Stafford: I am not. My preference is the East lot. Council Member Kinion: Why do you support the East lot? Evelyn Rios Stafford spoke about it being a lot simpler of a deal. She stated the current letter of intent is not a good deal for the city. Bob Stafford, 527 South Sherman spoke in favor of the East lot. He requested to know who the Fayetteville Police will be paying rent to at the substation. City Attorney Kit Williams: That would be the owner, assuming that is Greg House. Bob Stafford stated it is a sweetheart deal. He spoke about artist employment. He spoke about the Civic Plaza plans. There was a brief description about the lot that would be swapped. Council Member Kinion moved to allow three additional minutes for the speaker. Council Member Gutierrez seconded the motion. Upon roll call the motion passed unanimously. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar gov City Council Meeting Minutes January 21, 2020 Page 23 of 33 Bob Stafford: A couple of years ago there was a small sliver of land behind George's that was put out to bid? City Attorney Kit Williams: There was a very small sliver on the other side of the railroad behind George's. The owner of George's wanted to purchase it. We advertised it and we got a much better offer from Craig Underwood. The City Council decided to wait until the Corridor was built and it was not sold. Bob Stafford: It was about $750,000 offered? City Attorney Kit Williams: Per acre. Bob Stafford stated there's talk that the Depot lot is going to be a driver of the economy, but wants the Civic Plaza to be the driver. He spoke about putting parking across from parking. He spoke about a private developer building a hotel without this deal. Chaim Goodman -Strauss, 524 West Prospect stated the input has shifted the conversation. He requested to know at what point can the public weigh in about the off ramp? City Attorney Kit Williams: There is an off ramp. This is not enforceable, which it says that several times in the letter of intent. If it's voted on tonight, that just means I get to work with a contract. The contract would have to be brought back before the City Council and they would approve it. Chaim Goodman -Strauss: If you vote to accept this letter of intent, is there the political will to see through making sure it is all the kinds of things we want? Mayor Jordan: Kit will negotiate it. We are taking input from the Council and other folks. He will bring back the contract. If the Council doesn't like the contract, they will vote it down and we go to School Street. This is to just start the negotiation process. Rob Qualls stated he believes the votes are there to move forward with the letter of intent. He spoke about parameters to move forward. He spoke about looking at all details carefully. He spoke about traffic concerns. He stated he is leaning towards the Depot lot because it would leave the East lot available for housing. Angela Belford, Fayetteville Housing Authority thanked Susan Norton for listening and following through. She spoke about contract negotiations. She requested for housing to be a priority. She spoke about homelessness. She spoke about having a design committee. Melissa Terry, 701 South Wood Avenue spoke about the future concept drawing and the land swap. She stated an issue in the process is when we don't present the whole picture and only present certain images, this is a form of confirmation bias. She spoke about who was negotiating on behalf of the city. She spoke about having parking concentrated that supports and cultivates a pedestrian experience downtown. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 24 of 33 Council Member Petty stated the suggestion that they can accomplish some of what that has been asked for with some of the cities other assets, regardless of this decision is important. He stated they have had a lot of eggs to put in baskets and this the first basket we've had and now we want to put all the eggs in them. He spoke about other land that the city owns that are assets and it could be easy for him to vote for a proposal to convert one of those assets in partnership for housing. He stated he is in favor to vote for the letter of intent, but with not having a contract he wouldn't be prepared to vote for the whole deal. He spoke about the reasons he could be comfortable with voting for the lot on School Avenue. He stated the reason he is willing to vote for the letter of intent is because there is incredible potential. He stated he doesn't like the land swap and the optics of it are bad. He believes they are contributing more value than it's been accounted for, but he is willing to overlook it if they can get some things. He stated they should get what they have been shown. He stated getting the transit hub memorialized makes the deal for him. He stated he would like some language in the contract about the potential for cost overruns due to design decisions and how those would be handled. He stated the cost of doing the bond issue are real and are accumulating. Council Member Scroggin stated he is going to vote for the letter of intent. He stated if they do Spring Street and they have 590 cars trying to exit there at the same time, it will be a problem that could last for 40 years. He stated it is a safety net, but hopefully one that they don't have to do. Council Member Marsh stated she sees a lot of potential with the proposal on the table. She stated she is not afraid of density or height. She spoke about her concerns with the public process. She stated she did not want to vote on the resolution tonight until she read the public comments. She spoke about there being no opportunity for local design firms to submit to design the Cultural Arts Corridor. She stated she is uncomfortable with the land swap. She stated she does not want to commit to the developer to the North building of the Cultural Arts Corridor and wants it out of the deal. She spoke about negotiating harder to get the best deal. She stated she likes the transit hub. She stated there has been too many engineers and not enough artist and designers involved. Council Member Gutierrez thanked everyone for coming out to speak. She stated she is always trying to listen to see what's going on and where the voices and intent are coming from. She spoke about safety concerns. She stated her concern with the Depot lot is that they all have a long list of things to make it work right. She stated she keeps looking at the East lot and it seems it is less complicated than the Depot lot. She stated time is of the essence and to get the perfect thing at the Depot, it will be very concerning financially to get everything right. She stated the East lot seems simpler to obtain parking. She stated she does not like the land swap. Council Member Kinion spoke about his skepticism of a public/private arrangement. He stated the city owns property that they could make their promise good on and it's the fiscally responsible thing to do for the taxpayers' money. He spoke about building a destination with the Arts Corridor. He spoke about West Street and Dickson Street traffic and safety. He stated the East lot is a feasible location. He stated there are ways to handle traffic that are much better than dealing with the traffic and safety at Dickson Street and West Street. He stated he is not supporting the letter of intent. He stated he doesn't intend to waste more time on a project that is so complicated and has been perceived as sketchy. He spoke about affordable housing. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 25 of 33 Council Member Smith stated Nadine Baum was his first preference and has never been a fan of the East lot, but did look at ways to make it better. He stated they owe all options full consideration. He stated the Depot deal has not been satisfying and doesn't feel right. He spoke about needing a plan that meets their needs and doesn't believe parking needs to be in both places. He stated housing is needed Downtown. He stated more daytime bodies are needed on Dickson Street to visit establishments. He spoke about the need of historic preservation and not getting that at the East lot. He stated he is ready to vote for the letter of intent to begin contract negotiations. He spoke about being ready to vote against a contract if it comes back to Council and doesn't measure up. He spoke briefly about his wishes for the contract. Council Member Bunch stated she is ready to vote on the letter of intent and 60 days is long enough to work out a contract. She stated if it can't be worked out, then she has no problem with going to the East lot. She spoke about having the potential to gain more with the Depot lot. She spoke about being concerned with the land swap, but said it can be worked out or not. She stated she likes the idea of an alley in front of Arsaga's. She spoke about traffic. She spoke about the bike shop owner in the area being unhappy with a lot going in behind his building. She spoke about a transit hub. Council Member Turk thanked everyone for their input. She stated the correspondence she has received has overwhelmingly been against the Depot lot for a variety of reasons. She spoke about representing citizens. She stated she has many concerns about the Depot lot and doesn't feel like they are getting a good deal, especially financially. She spoke about historic preservation. She spoke about the land swap. She spoke about traffic concerns. She spoke about wanting more options than the two they were given. She stated she is not supporting the Depot lot. Council Member Petty stated he is skeptical that much new will be added to the debate by further conversation. He wants to move forward and work on the contract. Council Member Bunch stated they don't have an option to be creative if they don't enter into a contract. She spoke about starting the negotiation process. Council Member Kinion stated he has never said that he supports the East lot and nothing else. He stated the East lot has the capacity to have a liner building. He stated they can have all the solutions to all the situations that are mentioned by people using false arguments to support the Depot with the East lot. He stated they have to look at it differently, but they have not had the opportunity to look at the East lot differently. City Attorney Kit Williams: If this resolution passes, I hope it's with the understanding that we are not going to convey the liner building space as originally stated because that's illegal. That would be removed from the title and Section 2. There was a comment that we needed to have a real estate expert negotiate. I have been negotiating for more than four decades. I have negotiated real estate. We bought Lewis Fields and I negotiated them down $267,000 on that. When Kum & Go came to the city and offered to buy our Tyson 10 acres, they offered us about $900,000. There was some indication that maybe we should do that because we had an appraisal that said that was good. I did research and after analyzing, they offered us $1 million dollars for 1.5 acres and then later Casey's made us an offer for $1.1 million. I am counting on you all to be my support in a 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 26 of 33 negotiation. I don't want to waste 60 days on a negotiation. They are going to either deal with us or not. Sharing cost overruns is a tricky subject. I listened to what you have all said. We have a third option. The ballot says, the city must ensure the availability of sufficient new net public parking space to fully replace all public parking spaces removed, lost or likely to be removed within the near future from the Walton Arts Center parking lot and not planned to be promptly replaced below upon or above the current parking area. There could be a .3 -acre lot next to West Street and that would mean we wouldn't have to hit either lot. We don't want to put a parking deck on part of the Cultural Arts Plaza. That is not a great option, but it is an option. If you pass this resolution, then you are going to give me a chance to really negotiate. I don't like their deal. It's not the Mayor's deal, it's their deal. We are deciding if we want to entertain it. This offer is sweet for them and not nearly as sweet for us. The only way to get a better deal is if the City Council will stand behind me in tough negotiations. I will bring something back to you for your consideration. If you don't like it, then go to the School Street lot or put it on the Walton Arts Center parking lot, both of which are financially feasible. Council Member Marsh spoke about a local preservationist named Charles Alison who put together a proposal for lining the west edge of the Cultural Arts Corridor with a parking deck that would help to insulate that from the rail line, as well as provide a backdrop for the Corridor. She stated one of her primary complaints about the design of the Corridor is that the Plaza space is too big. She stated a more intimate space might be more appropriate and construct the deck on land the city already owns. She wants negotiations to continue because there is a lot of potential to make it a nice project. She stated she wants the land swap out. She wants public ownership of the Depot and freight buildings for preservation. She wants to use the train depot as a future transit hub. She spoke about having more options. Mayor Jordan: This is a letter of intent. Kit would start to negotiate and then you all would weigh in on it. It would probably be a 30 -day process. City Attorney Kit Williams: 30 days to get back with the final contract. I will be able to tell quickly if negotiations are advancing or not. You will be able to take what they are offering or go somewhere else. Council Member Smith: Whatever timeframe ends up being appropriate for negotiations, I would like an update at each Agenda Session during that time. Mayor Jordan: I will update you. Council Member Turk: Can we not look at the proposal that Charlie Alison put forward? I liked his plan. We own that land. Do we really need to have a Cultural Arts Corridor plaza that large? Mayor Jordan: We have already designed the Corridor. City Attorney Kit Williams: It is a legal possibility. We had our consultants and they presented pictures and drawings. You all kind of accepted it, but that doesn't mean it is cut in stone and the only way it can look like. You still have the option. I want to talk to our bond counsel to make sure he agrees with me. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIIe-ar.gov City Council Meeting Minutes January 21, 2020 Page 27 of 33 Mayor Jordan: When we started this in December 2018, the Council voted they wanted this at a 1,000 -foot radius. Anyone remember that vote? City Attorney Kit Williams: Yes, it is in the ballot. Mayor Jordan: A map was shown, and we had three locations. My personal preference was the Nadine Baum area, but that got ruled out early. The University was not interested in doing that. After the University said no, I contacted Greg House about the Depot lot. We can always put it at School Street. There was a group of us that met with the other parties. I have met people in my office over the years over many projects that have been established in this city. Devin Howland meets with businesses all over the place and negotiates with businesses. We then bring you what we got. This time you don't like the deal, so we still have School Street. This is not a final deal. This is a letter of intent to negotiate a contract that you can approve or not approve. I campaigned hard for the Arts Corridor and the bond as a whole. The main complaint I heard was that people didn't want it so far away that they had to walk a long way. From the front of the parking deck on the Depot lot is about 400 feet. The distance from the deck on School Street is 550 feet. Nadine Baum was 650 feet. The staff has worked tremendously hard to try and work out something. I wanted to do something that had a little more vision to it. I told Greg House I wanted the Depot lot protected and to work out the situation with Cary Arsaga. Steve Clark has worked on this too. When the deck goes in, there won't be booting or towing. The hotel came in later. Kit will do an excellent job negotiating. We need to decide and move forward. Council Member Petty moved to approve the resolution. Council Member Bunch seconded the motion. Upon roll call the resolution passed 5-3. Council Members Marsh, Petty, Scroggin, Bunch, and Smith voting yes. Council Members Kinion, Turk, and Gutierrez voting no. Resolution 37-20 as recorded in the office of the City Clerk New Business: Superior Chevrolet: An ordinance to waive the requirements of formal competitive bidding and authorize the purchase of ten Police Pursuit Chevrolet Tahoes from Superior Chevrolet of Siloam Springs in the total amount of $342,180.00 for use by the Police Department. City Attorney Kit Williams read the ordinance. Sara Glenn, Fleet Operations Superintendent gave a brief description of the ordinance. Council Member Scroggin moved to suspend the rules and go to the second reading. Council Member Gutierrez seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 28 of 33 Council Member Scroggin moved to suspend the rules and go to the third and final reading. Council Member Gutierrez seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed unanimously. Ordinance 6276 as Recorded in the office of the City Clerk ADM 19-6927 (NE of N. Cross Ave. & W. Markham Rd./Markham Hill PZD Amend): An ordinance to amend Ordinance No. 6096 which enacted Commercial Planned Zoning District 18- 6318, Pratt Place Inn & Barn, at 2231 West Markham Road to reduce the front setbacks for Planning Area 2 along Cross Avenue. City Attorney Kit Williams read the ordinance. Garner Stoll, Director of Development Services gave a brief description of the ordinance. He stated staff and the Planning Commission recommend approval. Lawrence Finn, Specialized Real Estate Group stated he was available for questions. Council Member Smith: Is this change a consequence of a change in your plans or a change in our policy? Lawrence Finn stated both. He briefly discussed the changes. Council Member Turk: When you all were coming around talking about the development that you were proposing, you met with neighbors about the sensitivity and the context of the neighborhood and how you would be sustainable and green. Yet, the first item out of your proposal was going to cut down all those trees. Why were you not aware of the sensitivity of the trees, who planted them, and why were the neighbors so upset about it? Lawrence Finn: The trees are all being preserved. We worked around Cross Street. Our development is preserving those trees. Council Member Turk: Now you are asking for a variance so you can put the houses close to where you wanted them originally. I am glad you are preserving the trees, but I hope there would be more sensitivity to the neighborhood in any future actions. Lawrence Finn spoke about it being the company's mission to act responsibly in their development. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 29 of 33 Fran Alexander, Fox Hunter Road stated she was glad that the tree issue on Cross Street had been somewhat resolved. She stated it is unclear who planted the trees. She spoke about the setback and compatibility. She stated she would like for the developers to reconsider the entire development. She spoke about a traffic study and alternative connections. Lisa Orton, 1663 West Halsell stated she was opposed to the variance. She requested for City Council to deny it. She spoke about landscape buffers, setbacks, and the existing neighborhood context. She spoke about a traffic study. Trey Marley, 1440 Markham spoke against the variance request. He stated he is against the development. Renigene Smeg, 803 North Park Avenue requested for Council to help save Markham Hill from development. She spoke against the ordinance. Council Member Turk stated it was getting late and requested for the ordinance to be held on the first reading. Council Member Marsh stated it is a straight forward issue about adjusting the setback by five feet to have rear loaded houses, which is something she advocates for. She stated it is a reasonable request. Council Member Gutierrez stated this is a little bit more of poking at something that we already knew the neighbors didn't want from the beginning. She stated we are losing 25% of the permeable surface that we were going to have. She stated they already had an agreement and they got the development. She stated they should work with what they got and now they are asking for more. She stated she is not supporting the ordinance. Council Member Kinion stated this is more of promises made and promises broken. Council Member Marsh moved to suspend the rules and go to the second reading. Council Member Kinion seconded the motion. Upon roll call the motion failed 5-2. Council Members Marsh, Kinion, Petty, Scroggin, and Smith voting yes. Council Members Turk and Gutierrez voting no. Council Member Bunch was absent during the vote. Mayor Jordan chose to not vote. This ordinance was left on the First Reading. Economic Development Administration: A resolution to authorize an application for an 80/20 matching grant from the Economic Development Administration in the amount of $2,084,720.00 for the construction of a road from Industrial Drive to City Lake Road, and to authorize Mayor Jordan to sign a funding commitment letter confirming that the city has matching funds available in the amount of $521,180.00. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes January 21, 2020 Page 30 of 33 Devin Howland, Director of Economic Vitality gave a brief description of the resolution. He stated at Agenda Session Council Member Marsh spoke about wanting to ensure that residents who work in the Commerce District can access their place of employment through alternative means of transportation. He stated it is important because the trail runs just to the north of all our city owned Commerce Park land. He stated he spoke with the administrator at the Northwest Arkansas Economic Development Administration. He stated if they include a sidewalk in it, it's a reimbursable part of the grant. He stated it would be an additional $148,000 that would be included in and would bring the total to $556,317. He stated if this is done, staff advises that the sidewalk be built on the west side. He requested for the grant to be amended to $556,317. There was a brief discussion what the cost would be for the project with the additional amount added for the sidewalk. Council Member Scroggin: With sidewalks being on the west side, wouldn't the land be worth more if the sidewalks were on the side where things are going to be? Are they going to tear them up? Devin Howland: Staff s concern was it getting damaged in construction with utility work that might be done and other site improvements. Looking at other parcels that we have had under contract to sell in this area, sidewalks were a requirement in that, just as they were if this was a Master Street Plan road. Council Member Marsh thanked Devin for helping to get the sidewalk. Devin Howland stated his excitement that EDA wanted to have a partnership. Council Member Petty: I want to encourage you to reconsider building the entire new length of the sidewalk on the opposite side of the road. Anybody who comes in and damages the sidewalk has to replace it anyway. Sidewalks on both sides of the streets is overkill down here. Council Member Gutierrez moved to amend the resolution to $556,317. Council Member Scroggin seconded the motion. Upon roll call the motion passed 7-0. Council Members Marsh, Kinion, Petty, Scroggin, Turk, Smith, and Gutierrez voting yes. Council Member Bunch was absent during the vote. Council Member Petty: I am little skeptical of the proposal and its impacts. Would you repeat what you said at Agenda Session about Water & Sewer infrastructure and if those would be provided? Devin Howland: Regarding those being provided to these specific sites, no that would not. We would intend those cost to be on the company. There is water and sewer at the north side of the property and there is sewer at the south side where the road turns, as well as water access at South City Lake Road. We highly envision these parcels developing in a systematic order, so the utilities would be run and we can take advantage of that. Council Member Petty: What would you anticipate a land sale for one of these parcels would be? 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www-fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 31 of 33 Devin Howland: Items in the past have been between $16,000 to $20,000 an acre. Council Member Petty: How many acres? Devin Howland: 46. Council Member Petty: How much money did we put in the Commerce Park? Devin Howland stated he would have check into it. Council Member Petty: Mayor, do you know? Mayor Jordan: No. Council Member Petty stated he was not going to vote for the resolution. He stated there are much more impactful uses of more than $500,000. He stated the city has the tendency to provide utilities and lower the purchase price when it is asked for. Council Member Scroggin: Do we have any idea of the impact on property taxes? Does that have a lot to do with what gets built there? Devin Howland: Correct. That would be dependent upon that public land going back on to the private. I don't think you'd see a massive influx of property tax. It depends on what gets built and the valuation of the building. Council Member Smith: Is this speculative or do you have a sales tax generator lined up that you are expecting will come in and be ready to buy soon? Devin Howland stated companies that you see in the commerce Park, 70% of sales tax comes from retail and restaurants. He stated retail and restaurants are the main drivers, but some sales tax does come from manufacturers. He spoke about job creation. Council Member Smith: Do we have prospects that are ready to buy here if only they can get to it or is this a speculative deal and then we will go hunting for somebody to sell it to? Devin Howland stated we have interest in the Commerce Park, but it comes and goes. He stated in the past we did bring several that never came through. He stated even with the City Council approving the contract, there was a law change that affected us a little bit on the ability to directly sell this land. He stated that has been corrected now where we can. He spoke about the Chamber being very confident in their ability to market the site. Council Member Smith: This would add to your inventory of land you can market? Devin Howland: Correct. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIle-ar.gov City Council Meeting Minutes January 21, 2020 Page 32 of 33 Council Member Gutierrez: Thank you for finding the opportunity for the sidewalk. It is an important part of putting our energy out there for what we want to get. We want to get those higher paying jobs and opportunities for more employers. We need to step up on our economic development to make spaces to attract employers. We need to market it properly, but I have full confidence you are getting that together. I am supporting this. Council Member Scroggin: If we approve this, will it be a done deal? If you get the grant will it come back to us again? Devin Howland: It will have to come back to approve the acceptance of the grant. This enables us to apply with the funding commitment letter. Council Member Scroggin: That will give more time to look at some of these questions. Mayor Jordan: What is the time on the application? Devin Howland stated he has been advised to get this in by March. He spoke about giving enough time to not rush. He spoke about an environmental assessment. There was a brief discussion about the deadline. Council Member Turk thanked staff for considering the environmental assessment. She stated it is important for the city to do that kind of review. Devin Howland spoke about the environmental component in the Commerce Park. Council Member Gutierrez moved to approve the resolution. Council Member Kinion seconded the motion. Upon roll call the resolution passed 6-1. Council Members Marsh, Kinion, Scroggin, Turk, Smith, and Gutierrez voting yes. Council Member Petty voting no. Council Member Bunch was absent during the vote. Resolution 38-20 as recorded in the office of the City Clerk Amend §34.08 Parking Revenue Fund: An ordinance to amend §34.08 Parking Revenue Fund to create a new Residential District Parking Fund, to approve a loan in the amount of $20,000.00 from the General Fund to the new Residential District Parking Fund, -and to approve a budget adjustment. City Attorney Kit Williams read the ordinance. Paul Becker, Chief Financial Officer gave a brief description of the ordinance. Council Member Scroggin moved to suspend the rules and go to the second reading. Council Member Smith seconded the motion. Upon roll call the motion passed 7-0. Council Members 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www. fayetteviIle-ar_gov City Council Meeting Minutes January 21, 2020 Page 33 of 33 Marsh, Kinion, Petty, Scroggin, Turk, Smith, and Gutierrez voting yes. Council Member Bunch was absent during the vote. City Attorney Kit Williams read the ordinance. Council Member Scroggin moved to suspend the rules and go to the third and final reading. Council Member Smith seconded the motion. Upon roll call the motion passed 7-0. Council Members Marsh, Kinion, Petty, Scroggin, Turk, Smith, and Gutierrez voting yes. Council Member Bunch was absent during the vote. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed 7-0. Council Members Marsh, Kinion, Petty, Scroggin, Turk, Smith, and Gutierrez voting yes. Council Member Bunch was absent during the vote. Ordinance 6277 as Recorded in the office of the City Clerk Announcements: Susan Norton, Communications and Marketing Director spoke about a Puppy Gram from Fayetteville Animals Services. City Council Agenda Session Presentations: Agenda Session Presentation - Economic Impact Update City Council Tour: None 12:08 a.m. Kara Paxton, City Clerk Treasurer 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteviIIe-ar.gov