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HomeMy WebLinkAbout03-22-04Minutes of the Special Town Council meeting held March 22, 2004 at 6:00 p.m. in the Council Chambers of the Municipal Building. There were present: Charles W. Stewart, Jr., Mayor Council Members: Jeffrey S. Worrell, Kenneth M. Fleenor, E. G. Black, Jr., Pauline G. Mitchell, Bettye H. Steger, John T. Bolen, Absent: James M. Neblett, Jr. Staff: John J. Hawley, Town Manager Randolph D. Eley, Jr., Town Attorney Patricia Cruise, Clerk of Council John White, Economic Development Director Dave Quesenberry, Asst. to the Town Manager Sherry Boyd, Finance Director Others: Nick Glenn Charles Wade Andy McCready Lane Penn John Shaw, K.W. Poore & Associates Dave Dalton Jennifer White Jo Beth Wampler, Southwest Times Mayor Stewart called the meeting to order at 6:00 p.m. Councilwoman Mitchell led the Pledge of Allegiance and Councilman Black gave the Invocation. Following roll call, Councilman Fleenor moved to excuse Councilman Neblett’s absence, seconded by Councilman Bolen and carried on the following recorded vote: Jeffrey S. Worrell - Aye Bettye H. Steger - Aye Kenneth M. Fleenor - Aye John T. Bolen - Aye E. G. Black, Jr. - Aye James M. Neblett, Jr. - Absent Pauline G. Mitchell - Aye Councilman Black moved to adopt the Certification Resolution for the Closed Session held prior to the Council meeting under Virginia Code 2.2-3711 (A-7), consultation with legal counsel regarding specific legal matters requiring the provision of legal advice by such counsel, seconded by Councilman Fleenor and carried on the following recorded vote: Jeffrey S. Worrell - Aye Bettye H. Steger - Aye Kenneth M. Fleenor - Aye John T. Bolen - Aye E. G. Black, Jr. - Aye James M. Neblett, Jr. - Absent Pauline G. Mitchell - Aye Mayor Stewart moved on to a Public Hearing for a CDBG Downtown Revitalization Grant. Mr. Hawley advised that this is the Town’s second attempt to obtain funding from the CDBG Downtown Revitalization Grant. The Town was not successful in last year’s application. However, after meeting with Housing and Community Development, information was gained in how to fine-tune the application for this year. Among the changes to this year’s application was a reduction in the project area, redrafting of the project narrative, and recalculation of the project’s budget. He advised that the project consisted of three phases including: housing rehabilitation, commercial façade improvements, and streetscape work. He asked John Shaw, Planner and Consultant with K.W. Poore and Associates, to review the project. Mr. Shaw presented a slide show for Council, reviewing the areas to be included in the project and summarizing the project. He and Mr. Hawley answered questions from Council regarding the types of projects that could be addressed, and when the outcome of the award will be known. Mayor Stewart opened the Public Hearing at 6:40 p.m. Dave Dalton addressed Council, inquiring whether Council had considered raising the level of Peak Creek. Mr. Hawley responded that the Town could raise the level of Peak Creek, however it is not included in the CDBG Downtown Revitalization Grant. Mr. Dalton asked was there a method under the tax code to force property owners to keep their buildings up when they move out of the building. Mr. Eley, the Town Attorney, advised that the tax code does not address owners failing to maintain their buildings, however, there are other means of action that can be taken. Mr. Dalton also asked whether the Town had considered designating a parking lot that tractor-trailer drivers could use to park their vehicles. He felt that that would help address the blighted appearance of shopping center parking lots. Additionally, he asked whether the housing and redevelopment portion of the grant was aimed at lower income housing? Mayor Stewart advised that the grant was aimed at the category of low to middle income housing. Mr. Dalton opined he did not think that mixing low-income housing and a shopping district together would work. Mr. Dalton further advised that he had seen that the Town had removed trees in sidewalks in the downtown area because of root problems. He stated that he had seen other areas pour sections of concrete offsite and then when problems occur in the sidewalks, they remove the problem section and replace it with the pre-poured slab of concrete. Nick Glenn next addressed Council advising them that he is trying to rehabilitate a building downtown. He inquired whether the Town was trying to draw fixed income residents to the downtown area or residents with expendable income, as that could affect how he finished his apartments. Secondly, he advised that he thought that the Town should consider a resolution on the property tax and the inventory tax for new start up businesses to give them a tax break for at least two or three years, while they are establishing their businesses. There being no further comments, the Public Hearing closed at 6:55 p.m. Councilman Worrell moved to adopt Resolution 2004-11, Authorizing the Preparation and Filing of an Application for Community Improvement Grant Funds through the Small Cities Community Development Block Grant Program of the Commonwealth of Virginia. The motion was seconded by Councilwoman Steger and carried on the following recorded vote: Jeffrey S. Worrell - Aye Bettye H. Steger - Aye Kenneth M. Fleenor - Aye John T. Bolen - Aye E. G. Black, Jr. - Aye James M. Neblett, Jr. - Absent Pauline G. Mitchell - Aye The next item on the agenda was Resolution 2004-10, Moral Obligation Resolution. Mayor Stewart advised that Andy McCready was present to address Council regarding the Resolution. Mr. McCready advised that he was very concerned about the Resolution of Moral Obligation that Council was to consider with respect to GCS. He opined that there were several red flag issues that needed to be addressed. Of particular note was that GCS was obtaining a loan from the Virginia Small Business Financing Authority, which handles higher risk loans. Referring to a comment from the Authority, saying “the client (GCS) has minimum collateral to repay”, Mr. McCready expressed reservations that a comment of this nature regarding GCS came from a business that makes high risk loans. He voiced his concern that the adoption of the Resolution would expose the Town to potential cash outlays. In light of these concerns, Mr. McCready recommended that Council not adopt the Resolution, but work with the client to help them establish a two year track record of payments and substantial health in the community. Councilwoman Steger asked staff if a financial background check had been done on GCS? Mr. Hawley answered that it had. He explained that GCS is a start up company, in their third year of existence and advised that the company is leasing their equipment that would have been collateral out of the buildings that they work out of. Since the company doesn’t own the building or the equipment, these facilities cannot used for collateral. Mr. Bolen commented that the last time Council met, the Town Manager was going to get a balance sheet for Council. He asked whether that information had been received. Mr. Hawley advised that he did have the balance sheet. Dr. White interjected that staff had information from Dunn and Bradstreet, which suggests that there is not enough information on the company at this point to give a rating. He reviewed the positives of the company including the amount of people hired to date by GCS and the amount of their payroll per month. In light of current practices to attract investment, he emphasized that different tactics must be used to recruit businesses and recommended that Council adopt the Resolution. In response to another question from Councilman Bolen, Dr. White advised that GCS is requesting a loan of $272,500 from the Virginia Small Business Finance Authority. They are asking the local governments to cover $125,000 of the $272,500. Mr. Hawley stated that Council was aware that GCS would be asking for funding. During the recruitment process, GCS had asked whether there was any low interest money available from the Town. They were advised of the UDAG money, but were encouraged to apply to other agencies first. Councilman Worrell’s motion to adopt Resolution 2004-10, Moral Obligation Resolution, seconded by Councilman Bolen. Councilman Worrell commented that if Council “is not willing to take a chance on our Town, I don’t think we can expect anyone else to”. The motion then passed on the following recorded vote: Jeffrey S. Worrell - Aye Bettye H. Steger - Aye Kenneth M. Fleenor - Aye John T. Bolen - Aye E. G. Black, Jr. - Aye James M. Neblett, Jr. - Absent Pauline G. Mitchell - Aye The next item on the agenda was cell phone tax increase. Mr. Hawley advised that the current cell phone tax is $2.50. The maximum allowed by the State is $3.00 per cell phone. The state has proposed that beginning in 2005, all communications taxes including cell phones, be collected by the state and reimbursed to the locality. Since this is the last year that the Town will have control over the rates, Mr. Hawley advised Council that the staff’s recommendation was to increase the cell phone tax to the $3.00 maximum, beginning July 1, 2004. He added that it is necessary to notify the cell phone carriers 120 days prior to the implementation of any increase. This provision would require the Town to notify the carriers of the proposed increase by April 1, 2004. Following discussion, Councilman Worrell moved to notify the cell phone carriers of the Town’s intent to increase the tax from $2.50 to $3.00 effective July 1, 2004, and direct the Finance Department to proceed with the necessary notification and that the necessary steps for the future be taken by the Town Attorney. Councilwoman Steger seconded the motion which carried on the following recorded vote: Jeffrey S. Worrell - Aye Bettye H. Steger - Aye Kenneth M. Fleenor - Aye John T. Bolen - Aye E. G. Black, Jr. - Aye James M. Neblett, Jr. - Absent Pauline G. Mitchell - Aye The next item on the agenda was a report on the Town’s certificates of deposit (cd’s). Mr. Hawley advised that staff was directed by the Finance Committee to investigate the best rates for the Town’ certificates of deposit. He advised that the quotes were included in the packet for Council’s information and that staff would renew the cd’s at the best rate available. At 7:25 p.m., there being no further business, Councilwoman Steger moved to adjourn, seconded by Councilman Bolen and carried on voice vote.