REGULAR CITY COUNCIL MEETING
JANUARY 5, 2009
The Mt. Vernon City Council met in Regular Session on Monday, January 5, 2009 at 7:00 p.m. in the Community Building at Veterans Park.
Mayor Mary Jane Chesley called the meeting to order and Reverend Travis Perry gave the invocation.
The Pledge of Allegiance was given.
Roll Call showed present: Council Member Mary Burgan, Council Member Mike Walker, Council Member David Wood and Mayor Mary Jane Chesley. Absent: Council Member Shirilyn Holt.
The journal for the December 15, 2008 Regular City Council Meeting was presented to Council for any additions, deletions or corrections. Mayor Mary Jane Chesley asked that a sentence in the middle of the first item on the City Attorney’s portion of the minutes be changed to the end of the paragraph. City Clerk Jackie Sharp stated that the change would be made and the minutes corrected. Motion by Council Member Mike Walker to approve the journal for the December 15, 2008, Regular City Council Meeting with the changes suggested. Second by Council Member David Wood. Yeas: Burgan, Walker, Wood and Chesley. Absent: Holt.
The Consolidated Vouchers for the Accounts Payable for January 2009 in the amount of $ 728,051.51 were presented for Council’s consideration. Council Member David Wood asked about item # 10 for a tractor/ mower for the Park Department. City Manager Neibert stated that you get a better price if you buy this time of year.
Council Member Mary Burgan questioned the check to CSX Transportation for the annual pipeline encroachment fee for waterlines on railroad right-of-way. City Attorney David R. Leggans explained that this is a fee for the lines to go under the railroads. He stated that some of the fees are annual agreements and some are lump sums. There are 4 or 5 agreements of this type per Mr. Leggans. City
Manager Ron Neibert stated that they have several rules regarding right-of-way, however we have trouble getting them to fix the crossings.
Council Member David Wood questioned the Powerline Equipment Sales for an Annual Inspection on the bucket truck in the Public Works Department. Mr. Wood stated that $3,212.50 seems high. City Manager Neibert stated that this is for the inspection and maintenance both.
Mayor Chesley asked about the check to Mid America Fire and Safety for bunker gear and boots for the Fire Department. City Manager Ron Neibert stated that this was all grant money, so the City is not out any funds on this.
Motion by Council Member Mary Burgan to approve the Consolidated Vouchers for Accounts Payable for January 2009 in the amount of $ 728,051.51 as presented. Second by Council Member Mike Walker. Yeas: Burgan, Walker, Wood and Chesley. Absent: Holt.
CITY MANAGER
City Manager Ron Neibert presented for Council’s consideration a Request for Authorization to Seek Bids for Three Police Vehicles. Mr. Neibert stated that these were put in the budget, but had been held to see how the finances were going. With the price of gasoline being budgeted at nearly $4.00 per gallon, and then going back down, the funds will be available to purchase the vehicles. The current vehicles are at over 140,000 miles on two of them and 125,000 for the other one to be replaced. Police Chief Mendenall stated that these are hard miles, not like highway miles on a vehicle. The old vehicles will be set out for bid but are not expected to bring much money. Motion by Council Member David Wood to Authorize the City Manager to go out for Bids for Three New Police Vehicles as requested. Second by Council Member Mike Walker. Yeas: Burgan, Walker, Wood and Chesley. Absent: Holt.
City Attorney David R. Leggans presented for Council’s consideration the Second Reading of an Ordinance Approving a Tax Increment Redevelopment Agreement with Triple L Holdings, LLC. City Manager Ron Neibert stated that this is to reimburse Triple L Holdings, LLC, State Beauty Supply, subject to the provisions, for a period of fifteen (15) years, eighty percent (80%) of the property taxes created by the increase of Equalized Assessed Valuation from the development hereunder shall be allocated for the payment of qualified project costs until the aggregate assistance to the Developer reaches $93,000.00. The
total benefit of $93,000.00 shall be paid $38,500.00 within 90 days of execution of this agreement from funds of the City borrowed from a financial institution for a term not to exceed 20 years and the balance of $54,500.00 from the Tax Allocation Account. After payment has been made on the amounts relating to the $38,500.00 advance, payment will be made annually on the remaining $54,500.00 qualified project costs.
Council Member Mike Walker asked if bids would be taken on the financing of the $38,500.00 advance. City Manager Ron Neibert stated that yes they would.
Council Member David Wood stated that this is the first actual TIF that has been completed. Hopefully the first of many to come. Council Member Wood stated that he hopes this encourages more people to develop properties into the beautiful buildings that have come from this TIF.
Mayor Mary Jane Chesley stated that Council had the First Reading on this Ordinance the last meeting of 2008 and that was a great ending to 2008 and a great beginning to 2009. Mayor Chesley stated that the TIF is a wonderful incentive for developers to use. The TIF is a great beginning for the Downtown area and this TIF goes to Veterans Memorial Drive. Hopefully this will lead a pathway for a lot of new development.
Council Member Mike Walker stated that this is the kind of development that we want to see in the City. All of the restored buildings that have been done in the downtown area have turned out to be beautiful buildings and assets to the downtown area.
Motion by Council Member David Wood to Adopt Ordinance # 2009-1, an Ordinance Approving a Tax Increment Redevelopment Agreement with Triple L Holdings, LLC – State Beauty Supply. Second by Council Member Mike Walker. Yeas: Walker, Wood and Chesley. Abstain: Burgan . Absent: Holt.
City Attorney David R. Leggans presented for Council’s consideration the Second Reading of an Ordinance Approving a Tax Increment Redevelopment Agreement with Campland, LLC. City Manager Ron Neibert explained that this request is for a renovation of the property located at 224 South 10th Street. Chris Campo has purchased the property and his intentions are to operate a Restaurant and Lounge in the building once it is renovated. Mr. Campo is proposing to do $324,608.00 of renovation to the building. The TIF Committee has recommended $150,000.00 reimbursement over a five-year period. For five years, ninety percent (90%) of the new property taxes created by the increase of Equalized Assessed Valuation from the development shall be allocated for the payment of the qualified project costs. For the following years, eighty percent (80%) of the new property taxes created shall be allocated for the developer until
the developer reaches $150,000.00. City Manager Neibert stated that the ultimate goal is to bring up the quality of the buildings and the area in the TIF area. The agreement is to remodel the structures. This will essentially make the buildings more saleable.
Council Member Mike Walker asked if a business has to be active in the future? What if it becomes something else in the future? City Manager Ron Neibert stated that the agreement is not for the business itself, it is for the structure and the developer that puts the money and effort into the project. The targeted purpose of the TIF is to bring up the standards of the buildings in the area. If the business fails after 1 or 2 years, we still have a building or structure with higher standards and looks than we had before the project. The businesses and the jobs are not the ultimate goal of a TIF.
Council Member David Wood asked if the property owner is unable to make the real estate tax payments, does the TIF continue to make the payments to the owner. City Manager Ron Neibert stated that yes we do continue to make the payments to the owner. City Attorney David R. Leggans stated that the TIF Funds or TIF Taxes are kept in a special fund. If the developer sells the building, the developer continues to receive the payments because the building has been renovated. The City’s TIF agreement is with the owner-developer now and there are no third party payments. City Attorney David R. Leggans stated that this TIF money is a reimbursement and the developer has already paid out the money that he will be collecting.
Motion by Council Member Mike Walker to Adopt Ordinance # 2009-2, an Ordinance Approving a Tax Increment Redevelopment Agreement with Campland, LLC. Second by Council Member David Wood. Yeas: Walker, Wood and Chesley. Abstain: Burgan. Absent: Holt.
Council Member Mary Burgan stated that she would like to explain why she abstained to vote on these two Ordinances. Mrs. Burgan stated that she is part owner in properties within the TIF area so she felt it might be a conflict.
City Attorney David R. Leggans presented for Council’s consideration the First Reading of an Ordinance Annexing Property Located at 817 Dewey Avenue. The Petitioning Party is Randolph L. Steele. City Manager Ron Neibert stated that this is a small piece of residential property and they would like to annex to partake of City water, sewer and trash service. Council Member David Wood asked why the small lot next to this is not requesting to be annexed. City Manager Ron Neibert stated that they have not requested to be taken in. City Attorney stated that this could only be a first reading due to notice requirements. First Reading was held.