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HomeMy WebLinkAbout7/28/2008 - City Council - Minutes - RegularUNAPPROVED MINUTES CITY COUNCIL WORK SESSION July 28, 2008 A work session of the Council of the City of Salem, Virginia, was held in the City Manager’s Conference Room, City Hall, 114 North Broad Street, at 6:30 p.m., on July 28, 2008, there being present the following members of said Council, to wit: Byron Randolph Foley, John C. Givens, William D. Jones, and Lisa D. Garst (Jane W. Johnson – absent); with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; and Frank P. Turk, Director of Finance; and the following business was transacted: Mayor Foley reported that this date, place, and time had been set in order for the Council to hold a work session; and WHEREAS, a discussion was held regarding the Intergovernmental Agreement for the Greenway; Ms. Belcher stated that the 12-year sunset runs out in 2009; she stated that a draft revision is out and needs to be adopted prior to 2009; a discussion was also held regarding the Regional Greenway Plan Adoption; Ms. Belcher stated it should be adopted as part of the comprehensive plan; a discussion was also held regarding an appointment to replace Jim Phipps on the Greenway Commission; Councilwoman Garst suggested better advertising for openings on various boards and commission; and WHEREAS, a discussion was held regarding e-mail accounts for Council members; and WHEREAS, a discussion was held regarding a date and time for Council to tour the Art Museum; and WHEREAS, there was no other topics for discussion. There being no further business to come before the Council, the work session was adjourned at 7:18 p.m. Mayor Clerk of Council UNAPPROVED MINUTES COUNCIL MEETING July 28, 2008 A regular meeting of the Council of the City of Salem, Virginia, was held in the Council Chambers, City Hall, 114 North Broad Street, on July 28, 2008, at 7:30 p.m., there being present the following members of said Council, to wit: Byron Randolph Foley, John C. Givens, William D. Jones, and Lisa D. Garst (Jane W. Johnson – absent); with Byron Randolph Foley, Mayor, presiding; together with Kevin S. Boggess, City Manager; James E. Taliaferro, II, Assistant City Manager and Clerk of Council; Frank P. Turk, Director of Finance; Melinda J. Payne, Director of Planning and Economic Development; Charles E. Van Allman, Jr., City Engineer; and Stephen M. Yost, City Attorney; and the following business was transacted: Mayor Foley commended the efforts of the Salem Family YMCA and its staff for hosting the Roanoke Valley Aquatics Association City/County Swim Meet. Mayor Foley also commended City employees for their hard work during the Roanoke Valley Horse Show, the Salem Fair, and the Olympic Softball game. The minutes of the regular meeting of July 14, 2008, were approved as written. The report by the City Manager of the City’s activities for the month of June 2008 was received and ordered filed. Mayor Foley requested that Council consider a donation to the Adult Care Center of Roanoke Valley, Inc., in the amount of $109.85, equal to the amount of admissions tax paid in connection with the Salem After Five event held June 27, 2008; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, a donation to the Adult Care ITEM 1 DONATION APPROVED FOR ADULT CARE CENTER OF ROANOKE VALLEY, INC. EQUAL TO THE AMOUNT OF ADMISSIONS TAX PAID IN CONNECTION WITH THE SALEM AFTER FIVE EVENT HELD JUNE 27, 2008 2 Center of Roanoke Valley, Inc., in the amount of $109.85, equal to the amount of admissions tax paid in connection with the Salem After Five event held June 27, 2008, was hereby approved -- the roll call vote: all present – aye. Mayor Foley requested that Council consider adoption of Resolution 1124 in support of Passenger Rail Service in the Roanoke Valley; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, Resolution 1124 was hereby adopted in support of Passenger Rail Service in the Roanoke Valley: (HERE SET OUT RESOLUTION 1124) -- the roll call vote: all present – aye. Mayor Foley requested that Council consider approval of a performance agreement between the City of Salem and BET Wilkinson Salem Venture for the properties identified by Tax Map Numbers 142-1-1 and 142-1-2; and WHEREAS, the City Manager stated that the agreement is between the City of Salem and the developer of the project BET Wilkinson Salem Venture; he stated that the agreement provides a tax grant for the redevelopment of an existing site and is based upon the performance of the retail occupant on the site; he stated that a “base tax year” was established; in other words, the amount of revenue the City received from the property in the most recent revenue year, which was revenue year 2005 when the shopping center was essentially fully occupied with viable businesses; he further stated that the revenue generated from the property was approximately $109,000, which was the amount used in the agreement as the “base tax year”; he stated that the agreement states that any new revenue generated on the redevelopment of the site (revenue generated above $109,000) is eligible to be granted back to the developer at an amount not to exceed $3 million over a 10-year period; the City ITEM 2 RESOLUTION 1124 ADOPTED IN SUPPORT OF PASSENGER RAIL SERVICE IN THE ROANOKE VALLEY ITEM 3 PERFORMANCE AGREEMENT BETWEEN THE CITY OF SALEM AND BET WILKINSON SALEM VENTURE APPROVED 3 Manager stated that there is also a 10-year “sunset” clause in the agreement, which means that if the retail business under performs expectations and the amount available to be paid back to the developer does not reach the $3 million within the 10 grant years following the opening of the retail store, the requirement for the City to pay the developer the $3 million ceases to exist; he further explained that there are two caps in the agreement—the amount of the grant to be paid to the developer will exceed $3 million, and the agreement will not last longer than 10 years; the City Manager stated that he expects the $3 million to be granted to the developer within five to six years; he stated that the City will grant the developer up to $500,000 in any grant year based upon the performance of the retail store; he further stated that the City has the option to pay the developer more than $500,000 a year if the retail establishment becomes very successful and meets or exceeds expectations in order to retire the City’s obligation early; the City Manager went on to give examples of the payment options; the City Manager stated that there have been concerns regarding the redevelopment of the site because the existing West Salem Plaza building will be demolished; he stated that the concerns will be addressed through both the site plan process and through the building inspection process, and because the City has an agreement with the developer that the City will hold the revenue stream to encourage the developer to cooperate with the City of Salem, adjoining property owners, and businesses; the City Manager stated that within the past few years, there have been at least two attempts to redevelop the site and because of the unique problems with the site, there is a large amount of site work that needs to be done on the property in order to make it a viable commercial site; he stated that the site has been underutilized and has great potential for developing new businesses, new employment, and a new revenue stream for the City; he stated that staff recommends that Council consider the performance agreement; and 4 WHEREAS, Councilwoman Garst questioned if the adjoining property owners will have an opportunity to review the site plan and express any concerns they may have; and WHEREAS, the City Manager stated that once a site plan has been received from the developer, it becomes a public document and the residents will be able to view the plans; he further stated that the site plan review process does take some time, usually a few weeks, and the adjoining property owners that have concerns about lighting, traffic, etc. will be given the opportunity to have their concerns addressed; he stated that the residents need to contact the City if they want to be contacted once the site plan has been received so that a list can be compiled on who needs to be contacted; and WHEREAS, Councilwoman Garst questioned if the storm water management issues on the property will be addressed; and WHEREAS, the City Manager stated that through the site plan process, the developer will have to meet all of the regulations that currently exist pertaining to storm water management; and WHEREAS, the Clerk of Council stated that all of the storm water management, along with everything else in the zoning ordinance, if a building is completely demolished, then the entire site has to comply with the entire zoning ordinance; and WHEREAS, the City Manager stated that includes the new tree ordinance, as well as some of the site plan ordinances that have been passed recently; and WHEREAS, Councilman Jones stated that he has spoken with some of the smaller businesses located near the development, and their only concern is the amount of disruption that will occur during the construction of the property; and WHEREAS, the City Manager stated that if any adjoining business owner has a concern about the construction and the impact it will have on their business, to let City officials know so that any problem(s) can be addressed; he 5 further stated that with a construction project as large as this one, there will be some problems, but the City has a good relationship with the developer and there should not be any problem that cannot be taken care of; and WHEREAS, Vice Mayor Givens stated that he is concerned about the businesses adjacent to the development and feels that the impact needs to be minimized on the adjacent business as much as possible; and WHEREAS, Councilwoman Garst asked if a target date had been set for the opening of the development; and WHEREAS, the City Manager stated that the date is approximately 18 months from the beginning of construction or early 2010; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILWOMAN GARST, AND DULY CARRIED, the performance agreement between the City of Salem and BET Wilkinson Salem Venture was hereby approved and the proper City officials are authorized to execute the agreement - - the roll call vote: all present – aye. Mayor Foley requested that Council receive report and consider awarding contract for the Red Lane Water Line project; and WHEREAS, Vice Mayor Givens, Chairman of Council’s Audit-Finance Committee, reported that the City has a joint arrangement with the Western Virginia Water Authority for the delivery of water, including both the purchase and sale of water; a number of years ago the City acquired the old Virginia Baptist Children’s Home Water System located on the north side of I-81, including an existing line under the interstate; the City wishes to improve this arrangement by upgrading this line to the City’s 8-inch line, utilizing the City’s interconnect with the Water Authority at Heather Lane (the Old Water Tank Site); this will be accomplished in several phases; the first of which is a 270-foot, 8-inch water line attached to the Red Lane Bridge over I-81; the City received the ITEM 4 LOW BID OF ALLEGHANY CONSTRUCTION CO. ACCEPTED FOR THE RED LANE WATER LINE PROJECT IN THE AMOUNT OF $187,450 WITH MONIES TO COME FROM THE WATER DEPARTMENT BUDGET 6 following bids: Alleghany Construction Co. in the amount of $187,450; Burleigh Construction Company in the amount of $189,500; Lanford Brothers Company in the amount of $259,069; and Aaron J Conner Company in the amount of $283,600; both the Water Department and the Finance Department have reviewed the bids and recommend acceptance of the low bid of Alleghany Construction Company in the amount of $187,450; funds are available for this project in the Water Department budget; the Committee reviewed the bids that were received and concurred with the recommendations that the bid be awarded to Alleghany Construction Company at a price not to exceed $187,450; ON MOTION MADE BY VICE MAYOR GIVENS, SECONDED BY COUNCILMAN JONES, AND DULY CARRIED, the low bid of Alleghany Construction Company for the Red Lane Water Line Project was hereby accepted in the amount of $187,450 with funds for the project to come from the Water Department budget -- the roll call vote: all present – aye. Mayor Foley requested that Council consider appointments to fill vacancies on various boards and commissions; THEREUPON, no action was taken. There being no further business to come before the Council, the same on motion adjourned at 7:55 p.m. ITEM 5 NO ACTION TAKEN