Loading...
HomeMy WebLinkAboutCity Council - Regular Meeting - Feb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¶VSURSHUW\DQG  7KLVSHUPLWPD\QRWEHDVVLJQHGZLWKRXWWKH&LW\¶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ƒ D]LPXWKIHHWWKHQFHQRUWKHUO\ƒ D]LPXWK IHHWWRWKHQRUWKOLQHRIWKH6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHURI VDLG6HFWLRQWKHQFHZHVWHUO\ƒ D]LPXWKDORQJVDLGQRUWKOLQH IHHWWRWKHQRUWKZHVWFRUQHURIVDLG6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHU WKHQFHVRXWKHUO\ 5HJXODU$GMRXUQHG0HHWLQJ)HEUXDU\     7KDWSDUWRIWKH6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHURI6HFWLRQ 7RZQVKLS1RUWK5DQJH:HVW2OPVWHG&RXQW\0LQQHVRWDGHVFULEHGDV IROORZV  &RPPHQFLQJDWWKHVRXWKZHVWFRUQHURIVDLG6RXWKZHVW4XDUWHURIWKH6RXWKZHVW 4XDUWHUWKHQFHRQDQDVVXPHGEHDULQJRI1RUWKƒ :HVWDORQJWKHZHVW OLQHRIVDLG6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHUIHHWWKHQFH 6RXWKƒ QQLQJWKHQFHFRQWLQXLQJ6RXWK ƒ (DVWIHHWWRDSRLQWIHHWPHDVXUHGSHUSHQGLFXODUIURPVDLG ZHVWOLQHRIWKH6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHUWKHQFH1RUWK ƒ OLQHRIVDLG 6RXWKZHVW4XDUWHURIWKH6RXWKZHVW4XDUWHUWKHQFH1RUWKƒ (DVWDORQJ VDLGQRUWKOLQHIHHWWKHQFH6RXWKƒ (DVWIHHWWKHQFH6RXWK ƒ :HVWIHHWWKHQFH6RXWKƒ  ƒ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´O RWWKDWJXDUDQWHHVWKHSURWHFWLRQDQGPDLQWHQDQFHRIWKHEXIIHU\DUG IRULWVLQWHQGHGSXUSRVH   $UHFRUGHGDFFHVVDJUHHPHQWLVUHTXLUHGIRUWKHVKDUHGDFFHVVZLWKWKH ³.XW]N\+RXVH´WRWKHZHVW   )XUWKHUUHYLHZRIWKH³.XW]N\+RXVH´WRWKHZHVWDVDQ\WKLQJRWKHUWKDQWKH SHUPLWWHGVLQJOHIDPLO\GZHOOLQJLVUHTXLUHGDQGLVQRWSDUWRIWKLVDSSOLFDWLRQ   5HJXODU$GMRXUQHG0HHWLQJ)HEUXDU\     $7UDIILF,PSDFW6WXG\ 7,6 PD\EHUHTXLUHGDVSDUWRIWKHUHYLHZSURFHVVIRU WKLVGHYHORSPHQWLQWKH&LW\RI5RFKHVWHUSXUVXDQWWR6HFWLRQRIWKH 5RFKHVWHU/DQG'HYHORSPHQW0DQXDO   $LUFRQGLWLRQLQJXQLWVDUHQRWLGHQWLILHGRQWKHHOHYDWLRQVEXWLIWKHUHDUH LQGLYLGXDODLUFRQGLWLRQLQJXQLWVWKHXQLWVVKRXOGQRWEHYLVLEOHIURPWKHSXEOLF VLGHZDON   HDUDQFHRIWKHEXLOGLQJGHVLJQH[WHULRUIDoDGHDQGODQGVFDSLQJ$VVXFK WKHDSSOLFDQWPXVWQRWGHYLDWHIURPWKHDSSHDUDQFHRIWKHEXLOGLQJGHVLJQ H[WHULRUIDoDGHDQGODQGVFDSLQJDVRULJLQDOO\SUHVHQWHGWRWKH&RXQFLOZLWKRXW WKH&RXQFLO¶VSULRUDSSURYDODQG   5HJXODU$GMRXUQHG0HHWLQJ)HEUXDU\    5(68/7$'237('>81$1,0286@  029(5 (G+UXVND 6(&21'(5 1LFN&DPSLRQ $<(6 6WDYHU&DPSLRQ+UXVND%LOGHUEDFN+LFNH\0HDQV $%6(17 :RMFLN )$SSHDO5$3E\2OLYHU//& $SSURYHG$SSHDO5$3E\2OLYHU//& 5(68/7$'237('>72@  029(5 0DUN+LFNH\ 6(&21'(5 6DQGUD0HDQV $<(6 6WDYHU+UXVND+LFNH\0HDQV 1$<6 &DPSLRQ%LOGHUEDFN $%6(17 :RMFLN )$SSHDO5$3E\2OLYHU//& $SSURYHG5HVROXWLRQ1RDXWKRUL]LQJWKDWWKH$SSOLFDQWKDVVDWLVILHGWKH FULWHULDRI5&2†VTXDUHIHHW 5&2†  $SSOLFDQWSURSRVHGODQGVFDSHVSDFHRIRIWKHORWRU VTXDUHIHHW DQG  $YDULDQFHRIVL[IHHWIURPWKHUHTXLUHGIHHWPLQLPXPGULYHZD\ZLGWK UHTXLUHPHQW 5&2† +     $SSOLFDQWSURSRVHGIRRWZLGHGULYHZD\   5HJXODU$GMRXUQHG0HHWLQJ)HEUXDU\    5(68/7$'237('>72@  029(5 (G+UXVND 6(&21'(5 0DUN+LFNH\ $<(6 6WDYHU+UXVND+LFNH\0HDQV 1$<6 &DPSLRQ%LOGHUEDFN:RMFLN *5(62/87,216$1'25',1$1&(6 )LUVWUHDGLQJVRI  $125',1$1&(&5($7,1*$1'(1$&7,1*&+$37(5