Loading...
HomeMy WebLinkAboutCity Council - Regular Meeting - Apr 19, 2010 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO 3OHGJHRI$OOHJLDQFH  $:LVKLQJWREHKHDUGGXULQJWKH2SHQ&RPPHQW3HULRGZDV2WKHOPR'D6LOYD WK 6WUHHW6:DVNLQJ3UHVLGHQW+DQVRQWRUHVLJQKLVVHDWLPPHGLDWHO\DV 3UHVLGHQWRIWKH&RXQFLO0U'D6LOYDVDLGWKHQHZSRVLWLRQWKDW3UHVLGHQW+DQVRQ KDVWDNHQDVDFRPPHUFLDOSURSHUW\PDQDJHULVDJODULQJFRQIOLFWRILQWHUHVWZLWK KLVSRVLWLRQRQWKH&RXQFLO  :LVKLQJWREHKHDUGGXULQJWKH2SHQ&RPPHQW3HULRGZDV-RH3RZHUV /DNHULGJH/DQH1:+HVDLGWKH&RXQFLO3UHVLGHQW¶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¶VODQGORUG+HVDLGWKHKRXVLQJFRGHVKDYHJRW WRFKDQJHDQGVRPHWKLQJKDVWREHGRQH  :LVKLQJWREHKHDUGZDV-RKQ:DGH%HUNVKLUH5RDG6:0U:DGH WKDQNHG3UHVLGHQW+DQVRQIRUKLVVHUYLFHWRWKHFRPPXQLW\+HQRWHGWKHUHDUH WLPHVWKH&KDPEHUGRHVQ¶WDJUHHZLWK3UHVLGHQW+DQVRQDQGWKHDGPLQLVWUDWLRQRI WKH&LW\,QWKH&KDPEHU¶VUHODWLRQVKLSZLWKPHPEHUVWKH\KDYHQRWVHHQ FRQIOLFWDULVHZKHUH3UHVLGHQW+DQVRQGRHVQ¶WH[FXVHKLPVHOI,WLVQRWKDYLQJWKH FRQIOLFWEXWKRZ\RXGLVFORVHWKHFRQIOLFWWKDWLVLPSRUWDQW  7HUU\$GNLQV&LW\$WWRUQH\VXPPDUL]HGWKH&LW\¶V(WKLFV2UGLQDQFHVD\LQJWKH SXUSRVHIRUDOOSHUVRQVDFWLQJLQWKHSXEOLFVHUYLFHLVQRWRQO\WRPDLQWDLQWKH KLJKHVWSRVVLEOHVWDQGDUGVRIHWKLFDOFRQGXFWLQWKHLUWUDQVDFWLRQRISXEOLFEXVLQHVV EXWWKDWVXFKVWDQGDUGVEHFOHDUO\GHILQHGDQGNQRZQWRWKHSXEOLFDVZHOODVWR WKHSHUVRQVDFWLQJLQSXEOLFVHUYLFH  %3UHVLGHQW'HQQLV+DQVRQFDOOHGWKHPHHWLQJWRRUGHUDW 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO '$GRSWHG5HVROXWLRQ1RDSSURYLQJWKHDPHQGPHQWWRWKH163FRQWUDFW EHWZHHQWKH&LW\DQG0+)$WRDFFHSWWKHDGGLWLRQDOUHDOORFDWLRQRI163 IXQGV  '$GRSWHG5HVROXWLRQ1RDSSURYLQJWKHUHYLVLRQWR'HIHUUHG$VVHVVPHQW 3ROLFLHVWRSURYLGHIRUGHIHUUDOVLQLQVWDQFHVRIDFWLYHPLOLWDU\GHSOR\PHQW  '$GRSWHG5HVROXWLRQ1RHQWHULQJLQWRDSDUNLQJOHDVHZLWK* ++ROGLQJV IRUVSDFHLQWKH7KLUG6WUHHW3DUNLQJ5DPS  '$GRSWHG5HVROXWLRQ1RHQWHULQJLQWRDOHDVHZLWK5HJHQ7KHUDQRVWLFV ,QFIRUVTXDUHIHHWRIVSDFHLQWKH0LQQHVRWD%LR%XVLQHVV&HQWHUIRUDQ LQLWLDOSHULRGRIILYH\HDUV  '6HHDWHQGRI',WHPV  'VNQRZQDV$YHQXH6:PLQXWHOLPLW$0WR 300RQGD\WKURXJK)ULGD\   5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO '$GRSWHG5HVROXWLRQ1RDZDUGLQJWKHFRQWUDFWIRU(PXOVLRQ6HDVRQ6XSSO\ WR0HLJV3DYLQJ$VSKDOWV (PXOVLRQVLQWKHDPRXQWRIQGHUWKH6WDWH RI0LQQHVRWDFRQWUDFW 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO &RXQFLOPHPEHUV1RZLFNLPRYHG0HDQVVHFRQGHGWRDSSURYHDPHQGLQJWKH FXUUHQW*DPEOLQJ2UGLQDQFH&KDSWHUWRWKH$VVRFLDWLRQWKH&LW\ZRXOGQRWEXLOGWKHQRLVHZDOODQGWKH &LW\FRXOGPRYHDKHDGZLWKWKHURDGSURMHFWDQGUHFHLYHIHGHUDOIXQGVIRUWKH EXLOGLQJRIWKDWURDG  &RXQFLOPHPEHUV:RMFLNPRYHG+UXVNDVHFRQGHGWRDGRSW5HVROXWLRQ1R FRQILUPLQJWKH&RXQFLO¶VGHWHUPLQDWLRQRQZKHWKHUDQGZKHUHQRLVHZDOOV WK VKRXOGEHEXLOWDVSDUWRIWKH6WUHHW6(&RQQHFWLRQ3URMHFWWDNLQJLQWR FRQVLGHUDWLRQDOOWKHLWHPVQRWHGLQWKH5HTXHVWIRU&RXQFLO$FWLRQLQFOXGLQJWKH XQUHDVRQDEOHQHVVRIFRQVWUXFWLQJQRLVHZDOOVWRPLWLJDWHQRLVHOHYHOVWKDWZLOOEH SUHVHQWZLWKRUZLWKRXWWKHSURMHFW$\HV 5HJXODU$GMRXUQHG0HHWLQJ1R±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¶WKDYHDQ\SHUVRQDOEHQHILW LQZDQWLQJWRVHUYHWKH&LW\WKLVZD\,QHYHUZDVPXFKRIDVFKRROYROXQWHHU, ZRXOGORYHWRVHUYHWKH&LW\LQWKLVUHJDUG´  :LVKLQJWREHKHDUGZDV5D\PRQG6FKPLW]+HQRWHGKHZDVILUVWDSSRLQWHGWR WKHRQH\HDUWHUPDWWKHEHJLQQLQJRIWKH(WKLFDO3UDFWLFHV%RDUGSURFHVV³,WKLQN WKDWERWKLQGUDIWLQJRIWKHRUGLQDQFHZKLFK,ZDVLQYROYHGZLWKDQGLQWKH\HDU, KDYHVHUYHGRQWKH(WKLFV&RPPLWWHHZHKDYHGHPRQVWUDWHGWKDWZHKDYH DFFRPSOLVKHGDJUHDWGHDO7KHUHFRJQLWLRQWKDWWKH&LW\$WWRUQH\KDVWDONHGDERXW IURPWKH/HDJXH RI0LQQHVRWD&LWLHV DQGIURPWKH$VVRFLDWLRQRI&LW\$WWRUQH\V GHPRQVWUDWHVZHKDYHEHHQDSUHWW\JRRGDQGSUHWW\HIIHFWLYHJURXS,ZRXOGOLNH WRFRQWLQXHIRUDQRWKHUWKUHH\HDUV,WKLQN,KDYHPRUHWRJLYHWRWKHJURXS,WKLQN ZHFRQWLQXHWRPDNH5RFKHVWHUDPRGHOGHPRQVWUDWLQJWRFLWLHVLQWKH6WDWHWR  5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO FRXQWLHVDQGWRRWKHUOHJLVODWLYHERGLHVWKDWWKHUHLVDJRRGZD\WRGRWKLQJV, WKLQNZHFDQFRQWLQXHWRVHWWKDWKLJKEDUDQG,ZRXOGOLNHWRFRQWLQXHWRGRWKDW´  :LVKLQJWREHKHDUGZDV+DUU\51HYOLQJ&HQWXU\+LOOV'ULYH1(0U 1HYOLQJSUHVHQWHGWKHIROORZLQJFRPPHQWV³,DPDQDWLYH,ZDVJRQHIRUD FRQVLGHUDEOHDPRXQWRIWLPHDQGPRYHGEDFNLQDQGZLOOEHKHUHXQWLO,GLH, GRQ¶WNQRZKRZ,ZRXQGXSJHWWLQJQRPL QDWHGIRUWKLVVRPHRQHHOVHGLGLWIRUPH EXWRQFH,JRWWKHLQIRUPDWLRQIURPWKH&OHUN,ZDVYHU\LQWHUHVWHGLQLW,KDYHD YHU\H[WHQVLYHEDFNJURXQG,GRQ¶WNQRZLI\RXJRWWKHSDFNHWEXWLW¶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¶WUHPHPEHU DQ\WKLQJWKDWSURKLELWV\RX 'HQQLV+DQVRQ IURPKDYLQJDQ\MRE\RXZDQWDQG WKHUHLVQ¶W1RZWKDW,DPUHWLUHG,YROXQWHHU5HJLRQ4XDOLW\$VVXUDQFH 3URJUDP5HJLRQ6WDNHKROGHUV*URXSLQYROYHGZLWKWKH&RXQW\WKURXJK &KDLUPDQVKLSRIWKH&RXQW\6RFLDO6HUYLFHV$GYLVRU\%RDUGDQGZRXOGEHYHU\ PXFKLQWHUHVWHGLQSDUWLFLSDWLQJLQWKHHWKLFDOVHWXS,QRWLFHSDUWRIWKLVLVWRVHWXS SURJUDPVWKURXJKWKH+XPDQ5HVRXUFHV'HSDUWPHQWWRWHDFKHWKLFVDQGHWKLFDO VWDQGDUGVWRWKHSHRSOHLQFLW\HPSOR\PHQWDQG,WKLQNWKDWZRXOGEHIDVFLQDWLQJ´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¶[´ RIDXWLOLW\HDVHPHQWRQ/RW%ORFN5RFKHVWHU0RQWHVVRUL 6XEGLYLVLRQ7KHSURSHUW\KDVDQDGGUHVVRI 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO  $+HDULQJRQ)LQDO3ODW53/$7E\5RFKHVWHU0RQWHVVRUL6FKRRO//& WREHNQRZQDV5RFKHVWHU0RQWHVVRUL6HFRQG7KH3ODWSURSRVHVWRUHVXEGLYLGH /RW%ORFN5RFKHVWHU0RQWHVVRUL6XEGLYLVLRQE\DGGLQJDGGLWLRQDOODQGIURP WKHQRUWKWRWKHSURSHUW\7KHSURSHUW\LVORFDWHGDORQJWKHQRUWKVLGHRIPSURYHPHQW3URMHFW1R- 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO $+HDULQJRQ*HQHUDO'HYHORSPHQW3ODQ5*'3E\&DQDGLDQ+RQNHU7KH *'3LQGLFDWHVWKDWWKHSURSHUW\ZLOOEHGHYHORSHGZLWKDVXUIDFHSDUNLQJORWODQG ZHVWRIWK$YHQXH6:LVDOUHDG\GHYHORSHGZLWKDSDUNLQJORW7KHSURSHUW\LV ORFDWHGDORQJWKHVRXWKVLGHRIVW6WUHHW6:HDVWDQGZHVWRIWK$YHQXH6:  $OOWHVWLPRQ\DSSOLHVWR,WHPV(DQG(HDUG3UHVLGHQW+DQVRQFORVHGWKHKHDULQJ  &RXQFLOPHPEHUV+UXVNDPRYHG6Q\GHUVHFRQGHGWRDSSURYH*HQHUDO 'HYHORSPHQW3ODQ5*'3E\&DQDGLDQ+RQNHUZLWKWKUHHFRQGLWLRQV$\HV 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO IRUWKH5RFKHVWHU/RGJLQJ*URXS//&,QFHQWLYH'HYHORSPHQWSURSRVDO 5 &83 7KHSURSHUW\LVORFDWHGDORQJWKHQRUWKVLGHRIQG6WUHHW6:EHWZHHQ WKHHDVWIURQWDJHURDGRI7+DQGWK$YHQXH6:  $OOWHVWLPRQ\UHFHLYHGDSSOLHVWR,WHPV(DQG(  7HUU\$GNLQV&LW\$WWRUQH\VDLGKHZDVSUHVHQWDWWKH3ODQQLQJDQG=RQLQJ &RPPLVVLRQPHHWLQJZKHQWKLVPDWWHUFDPHEHIRUHWKHPDQGWKH\VSHQWWLPH WDONLQJDERXWWKH6HFRQG6WUHHW&RUULGRU3ODQ0U$GNLQVWROGWKH&RXQFLOWKHUH DUHDWOHDVWILYHDSSHOODWHFRXUWFDVHVWKDWKDYHUXOHGWKDWDFLW\DQGDFRXQW\ FDQQRWUHO\RQDFRPSUHKHQVLYHSODQWRGHQ\DSURSRVHGDSSOLFDWLRQ7KH&RXUW KDVVDLGWKHSODQ¶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±$SULO WKHHOHYDWLRQRIWKHEXLOGLQJVHYHUDOWLPHVWRDFKLHYHLW7KHRXWVLGHRIWKH EXLOGLQJVZLOOEHVWRQHDQGEULFN6XJJHVWHGFKDQJHVE\WKHQHLJKERUKRRG FRPPLWWHHZHUHFRQVLGHUHG7KHURRIPDWHULDOVDGGLQJEHORZJUDGHSDUNLQJDQG PRYLQJWKHSRRODUHDWRWKHVLGHRIWKHKRWHORQWKHSHGHVWULDQOHYHOZHUH FRPSOHWHG  :LVKLQJWREHKHDUGZDV&KULV&ROE\<DJJ\&ROE\0U&ROE\QRWHGDJUHHPHQW ZLWK&RQGLWLRQVPLWWHG&RQGLWLRQIRUWUDVK HQFORVXUHVUHTXLUHWKHPDWHULDOVIRUWKHHQFORVXUHVWRPDWFKWKHEXLOGLQJ  :LVKLQJWREHKHDUGZDV.HOOLH0XOOHU 5HJXODU$GMRXUQHG0HHWLQJ1R±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¶WUHDOO\UHIHUHQFHWKH&RUULGRUEXWWKHGHYHORSPHQW LVYHU\LQWURVSHFWLYHRQWKHSURSHUW\+LJKHUGHQVLW\DQGEHWWHUXVHFRXOGJRRQ WKHUHZLWKRXWWKHSDUNLQJORW7KHH[WHULRURIWKHEXLOGLQJLVZKDW\RXZLOOVHHRII DQ\IUHHZD\HQWUDQFHDQGQRWQHFHVVDULO\ZKDWLVQHHGHGIRUWKHIODJVKLSHQWU\RI WKH&RUULGRU7KH&RUULGRU3ODQGRHVKLJKO\UHFRPPHQGQRPRUHWKDQDRQHVWRU\ EXLOGLQJDQGWKHUHLVQRWDGHTXDWHEXIIHULQJRIWKHSDUNLQJORWQRUWKHFRQQHFWLRQV WRWKHQHLJKERUKRRG  :LVKLQJWREHKHDUGZDV6XVDQ6WUDQGEHUJ(LJKWK$YHQXH6:&8'( &RPPLWWHHPHPEHU6KHDOVRHPSKDVL]HGWKHFRUULGRULVDFULWLFDOJDWHZD\WR GRZQWRZQ5RFKHVWHUDQGZLOOVHWDVWDQGDUGIRUWKHIXWXUHGHYHORSPHQWRI6HFRQG 6WUHHWDQGRWKHUGRZQWRZQDUHDV6KHQRWHGWKHUHLVYHU\OLWWOHWKDWZRXOGDGGWR WKHYLWDOLW\RIWKH6HFRQG6WUHHW&RUULGRUDVWKHGHYHORSPHQWORRNVOLNH5RFKHVWHU RIWKHSDVWDQGQRW5RFKHVWHURIDQGEH\RQG7KHSURSRVDOGRHVOLWWOHWR DGGUHVVWKHUHFRPPHQGDWLRQVFRQWDLQHGLQWKH6HFRQG6WUHHW&RUULGRU3ODQ  WK :LVKLQJWREHKHDUGZDV6FRWW+HEEULQJ$YHQXH1:$IHZ\HDUVDJR ZKHQWKH6KRSSHV2Q6HFRQGGHYHORSPHQWZDVSURSRVHGWKHUHZHUHVRPH 5HJXODU$GMRXUQHG0HHWLQJ1R±$SULO SUREOHPVZLWKDFTXLVLWLRQRIODQGDQGZLWKWKH6WDWHWKDWGLGQ¶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±³7KHSURSRVHGDFFHVVIURP$YHQXH6: QG GRHVQRWPHHWDFFHVVVSDFLQJVWDQGDUGV´1HZVHQWHQFH±³3ULRUWRWKH LVVXDQFHRI%XLOGLQJ3HUPLWVWKHDSSOLFDQWDJUHHVWRVXEPLWDVLWHSODQWKDW WK UHIOHFWVKRZLQWHUQDOFLUFXODWLRQZLOOEHPDQDJHGLIWKHDFFHVVWR$YHQXH6:LV UG PRGLILHGWRDULJKWLQDQGULJKWRXWLQJUHVVHJUHVVLQWKHIXWXUH´1HZVHQWHQFH ±³$GHYHORSPHQWDJUHHPHQWZLOODGGUHVVDWZKDWSRLQWWUDIILFLQFUHDVHVZLOOWULJJHU WKHUHTXLUHPHQWIRUDPHGLDQ´7KHODVWVHQWHQFHUHPDLQVDVLV7KHGHYHORSHU¶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³QRPDMRUGHYLDWLRQ´ DGGHG  &RXQFLOPHPEHU:RMFLNPRYHGWRDPHQGWKHPRWLRQWRPHHWWKHFRPSDWLELOLW\ZLWK WKHH[LVWLQJODQGVFDSLQJSODQUHWXUQHGWRWKHVWDWXVLWH[LVWHGDWWKHODVWPHHWLQJ ZLWKWKHQHLJKERUV0RWLRQIDLOHGIRUODFNRIVHFRQG 5HJXODU$GMRXUQHG0HHWLQJ1R±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±$SULO 1RQHRIWKRVHSODQVKDVVKRZQDIURQWDJHURDGDIIHFWLQJUHVLGHQWVDVWKH 0Q'RWSURSRVDOGRHV5HIHUULQJWKHPDWWHUWR52&2*ZRXOGJLYHWKH7HFKQLFDO $GYLVRU\&RPPLWWHHDQRSSRUWXQLW\WRVWXG\WKHSODQWKDW0Q'RWKDVGHYHORSHG PDNHDUHFRPPHQGDWLRQWRWKH52&2*3ROLF\%RDUGUHDFKFRQVHQVXVDQG SHUKDSVVWUHQJWK HQWKH&LW\¶VSRVLWLRQ  &RXQFLOPHPEHU6Q\GHUVDLGWKHUHDUHDQXPEHURIFLWL]HQVVLWWLQJLQOLPERVHHLQJ KRXVHVPDUNHGIRUUHPRYDODQGWKHUHPDLQGHUZRQGHULQJZKDWZLOOEH KDSSHQLQJDQGZRXOGDVNIRUWKHUHVROXWLRQEHDGRSWHGDWWKLVPHHWLQJ  &RXQFLOPHPEHU6Q\GHUDGGLQJWKHUHIHUUDOWR52&2*RQKLVPRWLRQ &RXQFLOPHPEHU1RZLFNLDJUHHGZLWKWKHDPHQGPHQW  $\HV G38' =RQLQJ'LVWULFWVWRWKH%=RQLQJ'LVWULFWDQG$PHQGLQJ2UGLQDQFH1R 5HJXODU$GMRXUQHG0HHWLQJ1R±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