Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
City Council - Regular Meeting - Mar 18, 2013
$GMRXUQHG0HHWLQJ1R±0DUFK 3OHGJHRI$OOHJLDQFH $1RRQHZLVKHGWREHKHDUGGXULQJWKH2SHQ&RPPHQW3HULRG %$FWLQJ3UHVLGHQW5DQG\6WDYHUFDOOHGWKHPHHWLQJWRRUGHUDWV0DLQH$YHQXH 6( 3XEOLF7UDQVSRUWDWLRQ5HQHZDO WK 'DQ0RXOWDQGED6SHFLDOW\7RXUV $GMRXUQHG0HHWLQJ1R±0DUFK 0LVFHOODQHRXV$FWLYLWLHV 5HWXUQRIWKH5RELQ.5XQ±ELNHWUDLOVEHKLQG5HFUHDWLRQ&HQWHU±0DUFK ±WR$0 0HHWWKH0RQVWHU.±6ROGLHU¶V)LHOG±$SULO,WHPV '$GRSWHG5HVROXWLRQ1R $GMRXUQHG0HHWLQJ1R±0DUFK '$GRSWHG5HVROXWLRQ1RV DQGHVWDEOLVKLQJD3URMHFW +HDULQJIRU$SULODQGDQ$VVHVVPHQW+HDULQJIRU$SULOIRU3URMHFW VW 1R63 - ³5HFRQVWUXFW7+(DVW)URQWDJH5RDGIURP 6WUHHW1:WR3HQQLQJWR Q&RXUW1:´ 'QJHVWR5&2 $GMRXUQHG0HHWLQJ1R±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±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±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¶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±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¶V+RPH5XOH&KDUWHUUHDGV³1RYDFDWLRQVKDOOEHPDGHXQOHVVWKHFRPPRQ FRXQFLOILQGVWKDWWRGRVRLVLQWKHSXEOLFLQWHUHVW´0LQQHVRWDDSSHOODWHFRXUWVKDYH XVHGD³XVHIXOQHVV´VWDQGDUGLQGHWHUPLQLQJZKHWKHUWKHSXEOLF¶VLQWHUHVWVDUH VHUYHGE\DYDFDWLRQRIDSXEOLFULJKWRIZD\,IWKDWULJKWRIZD\QRORQJHUVHUYHV WKHSXEOLFSXUSRVHLWVHUYHGZKHQLWZDVLQLWLDOO\SXWLQWRSODFHWKHQLWLVQRORQJHU XVHIXODQGFDQEHYDFDWHG 0U+UXVNDVWDWHGWKHWHVWLPRQ\KHDUGKDVVKRZQWKDWWKHXVHIXOQHVVRIWKLVDOOH\LV VWLOOQHHGHG+HVDLGWKHUHQHHGVWREHDPRGLILHGYHUVLRQWKDWVDWLVILHVHYHU\RQH $GMRXUQHG0HHWLQJ1R±0DUFK EXWGRHVQ¶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¶1HLOVWDWHG0HQDUGVZDVVXUSULVHGWR VHHZRUWKRIDGGLWLRQDODVVHVVPHQWV 5LFKDUG)UHHVH3XEOLF:RUNV'LUHFWRUVWDWHGWKDWWKHUHZLOOQRWEHDQ\DGGLWLRQDO DVVHVVPHQWVRWKHUWKDQWKRVHLQWKHGHYHORSPHQWDJUHHPHQWIRU0HQDUGV7KH FKDUJHVDUHDOUHDG\LQWKHGHYHORSPHQWDJUHHPHQWDQGDUHQRWDGGLWLRQDOFKDUJHV 0U)UHHVHVWDWHGLWZRXOGEHLPSRUWDQWIRUWKH&RXQFLOWRDVN0U2¶1HLOIRUKLV SRVLWLRQRQWKHSURMHFW0U2¶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±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±0DUFK VLGHZDONDVWKH\KDYHRQVLWHSDUNLQJDQGYHU\IHZSHRSOHZDONE\WKHLUSURSHUW\DV WKHUHDUHQRFORVHGHVWLQDWLRQV$WWKDWWLPHWKH\ZHUHFKDUJHGRYDORIWZRODQHVRIWUDIILF +DYLQJQRRQHIXUWKHUZLVKLQJWREHKHDUG$FWLQJ3UHVLGHQW5DQG\6WDYHUFORVHG WKHKHDULQJ &RXQFLOPHPEHUV:RMFLNPRYHG+UXVNDVHFRQGHGWRDGRSW5HVROXWLRQ1RV DQGRUGHULQJWKHSURMHFWDQGSUHSDUDWLRQRIWKHDVVHVVPHQWUROOIRU QGWK 3URMHFW1R - $GMRXUQHG0HHWLQJ1R±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³5HFRQVWUXFW UG 6WUHHW6(IURP%URDGZD\WR$YHQXH6(´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±0DUFK &RXQFLOPHPEHU:RMFLNDVNHG0U1HZPDQIRUDQXSGDWHRQWKHVSHFLDOWD[LQJ GLVWULFWVIRUSXEOLFZRUNVLPSURYHPHQWV0U1HZPDQVWDWHGWKHELOOKDVPRUH VXSSRUWWKDQHYHUDQGLVPDNLQJSURJUHVV0U:RMFLNVWDWHGWKLVELOOZRXOGDOORZ GLVWULFWVWREHFUHDWHGLQRUGHUWRVSUHDGRXWWKHFRVWVIRUWKHVHSURMHFWVUDWKHUWKDQ MXVWDVVHVVLQJWKHDGMDFHQWSURSHUW\RZQHUV &RXQFLOPHPEHUV:RMFLNPRYHG+UXVNDVHFRQGHGWRDGRSW5HVROXWLRQ1RV DQGRUGHULQJWKHSURMHFWDQGSUHSDUDWLRQRIWKHDVVHVVPHQWUROOIRU WKUG 3URMHFW1R -DSSURYHWKHIROORZLQJ6RXQG $PSOLILFDWLRQ3HUPLWUHTXHVWV :DLYHWKH0D[LPXP$OORZDEOH6RXQG3UHVVXUH8QWLO 30 0HG&LW\0DUDWKRQ±0D\R&LYLF&HQWHU±0D\± $GMRXUQHG0HHWLQJ1R±0DUFK 06:DON±6ROG LHU¶V)LHOG±0D\±$0WR30: $PHULFDQ&DQFHU6RFLHW\:DON±0D\R3DUN±-XQH±$0WR 30 7ULDWKDORQ(YHQW±)RVWHU$UHQGV3DUN±-XQH±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±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