Life Of Jason

2008 & 2009 Springfield Local Bloggers Association Blog of the Year

Live at Springfield City Council July 14, 2008

with 2 comments

6:20pm….we’re here and we’re ready to rock.  So is Councilman Manley who walks around shaking the hands of the five folks already in attendance.  Councilman Whayne walks in shortly after Councilman Manley.

6:30pm…Bill Cantrell of KTTS shows up ready for action.  He looks at the agenda and wonders which items are going to get a ton of people commenting.  He speculates that at least one person will complain about the renaming of a street for Bob Barker.

6:38pm…Councilman Wylie arrives as does City Hall’s #1 Fashion Plate, Anita Cotter of the City Clerk’s office.

6:40pm…Councilman Wylie starts makinng the rounds of the room.

6:47pm…Councilman Deaver arrives and takes his place.  Councilman Burlison arrives soon after.  Councilwoman Rushefsky walks in and strikes up a chat with Councilman Deaver.

6:50pm…Wes from the News-Leader arrives.  Nice guy and a good journalist.

6:53pm…Still no sign of Dan Chiles’ tie.  The room has an uneasy feeling.

6:55pm…Economic Development Director Mary Lilly Smith is working the room.

6:56pm…City Attorney Dan Wichmer comes in and says hi.

6:57pm…Councilwoman Collette arrives.  The room is now filling up…about 40 folks not city staff are in the room and hall.

6:59pm…Still no Dan Chiles.  I guess the pressure of knowing he had to walk in with tie perfection was too much for him to take today.

7:00pm…Mayor Pro Tem Deaver sits in the Mayor’s seat…so it looks like no Mayor Carlson and no Councilman Deaver for tonight’s festivities.

7:02pm…Meeting called to order.  Councilman Manley leads the prayer.  The pledge and the roll call.

7:03pm…Approval of the minutes from the last meeting.  Passes by voice vote.

7:04pm…Mayor Pro Tem Deaver recognizes a Boy Scout in attendance working on his communication badge.

7:05pm…Two items removed from the consent agenda: COUNCIL BILL 2008-212. COUNCIL BILL 2008-214

Consent agenda passes unanimously.

7:06pm…Councilman Burlison moves that at the end of the meeting the council adjourn for a closed session tomorrow at 12 Noon at the Busch Municipal Building.

7:07pm…Assistant City Manager Honea recognized city attorney Nancy Yendes for her work on the phone lawsuit.  She also updated Council regarding the upcoming vote on the transportation tax.  Citizens will be getting a flier in the mail with their City Utilities bill.

She updated on the sales tax.  She said that sales tax for the new fiscal year was up just over 1% over last year.  The staff is pleased that the revenue is up for the first month of the new fiscal year.

7:10pm…Mayor Pro Tem Deaver asked public works to talk about conservation efforts because of gas prices.

7:11pm…Phil Broyles of public works talks about employees working four day work weeks on a rotating basis so that all five days of the week are covered.  He said there is less break time and more focus on the projects because there is less setup time.  They’re downsizing the fleet where they can and they’re using smaller vehicles for repairs when they don’t need the bigger trucks for a repair.

Public works is looking into compressed natural gas vehicles.  He said they’re trying to conserve in buildings as well as vehicles and trying to help their staff at the same time.

7:13pm…Mayor Pro Tem Deaver reminds the audience that they need to fill out a card if they wish to address the Council during tonight’s meeting.

7:14pm…Councilman Whayne moves to amend COUNCIL BILL 2008-202. (Whayne)A general ordinance amending the Official Map of Springfield, adopted pursuant to General Ordinance No. 1478, by changing the name of a segment of Brower Street to Bob Barker Street as shown thereon.  The street will be named Bob Barker Boulevard instead of Bob Barker Street.

Mike MacPherson addresses the Council.  He said all impacted property owners were contacted and that it was being done in honor of Bob Barker and his efforts with Drury University.

Councilman Wylie reads a letter from a constituent regarding Mr. Barker and the efforts he’s made in his life that have benefitted Springfield and his efforts regarding animal health and protection.  He said that this bill was by a constituent initiative and has the blessing of Drury University.

Councilman Manley said that he was a classmate of Bob Barker at Drury University.  “We didn’t realize that Bob would go to the success that he did in the field of media and I’m very proud of him.”  “It’s a tribute to Bob, to Drury and the community.”

Councilman Burlison brought up the time the city did not rename Chestnut Expressway to Martin Luther King Boulevard and instead named a bridge.  He said that he wanted to get it out about the number of entities affected by this change and asked staff about it.  Mr. MacPherson said that there are only three properties have a Brower address during the stretch that is renamed and all property owners are enthusiastic about the change.

7:19pm…Linda Herd comes to speak.  She said it’s not fair to Martin Luther King.  She said Drury could rename Drury Lane.  She said she doesn’t like Bob Barker.  She said it’s not a good street in the first place.  It looks bad.  “If you’re going to name a street after someone you should make it at least a good one.”  She says she doesn’t see the difference between this renaming and the renaming of Chestnut for Martin Luther King.  (Editorial note:  You can’t see the difference between four blocks that run through Drury with three property owners effected and Chestnut Expressway with hundreds of land owners?  Are you serious?)

Mayor Pro Tem closed the public session and said it would be voted on in two weeks.

7:21pmCOUNCIL BILL 2008-203. (Chiles)A general ordinance amending the Springfield Land Development Code, Section 5-2300, Common Open Space and Common Improvements Regulations to permit the administrative approval of subdivisions with common area, specifically condominiums and administrative re-plats (Both Planning and Zoning Commission and staff recommend approval).

Ralph Rongstad said it was to streamline the approval process for these properties.  Mayor Pro Tem Deaver closed the public hearing.  Vote in two weeks.

7:23pmCOUNCIL BILL 2008-204. (Manley)A general ordinance amending the Springfield Land Development Code, Section 1-1600, Zoning Maps, by rezoning approximately 9.4 acres of land generally located from 717 South Kansas Avenue to 807 South Kansas Avenue on the West side of the street and more particularly described in this ordinance, from an R-TH, Residential Townhouse District, to an R-LD, Low-Density Multi-Family Residential District; and establishing Conditional Overlay District No. 19. (Both Planning and Zoning Commission and staff recommend approval.) (By: Joe Ege & Barbara Hembree; 717-807 block S. Kansas Avenue; Z-18-2008 and Conditional Overlay District #19.)

Mr. MacPherson explained it was a request for 11 units per acre.  Conditions include additional right of way and construction of sidewalks along Kansas St.  He said there has been some concern about the kind of development in the area and showed photos of the kinds of buildings not permitted.  Window ownings on new multiple unit structures must match residential structures of neighboring buildings.  All homes should have front porches and multiple units will have porches for each unit.

Councilman Wylie asked Mr. Wheeler of Planning and Zoning about how it passes 4-2 and why the vote was split.  Mr. Wheeler said some of the issues were that the developer is not required to build garages and adequate off-street parking available for the units.  Councilman Wylie asked if that’s been resolved and Mr. Wheeler said yes.  He thinks that the two members who voted against it (and he was one of them) that felt garages should be included in it.  Mr. Wheeler also said he had a question regarding playground space for children.

Councilwoman Rushefsky asked Mr. Wheeler about two concerns; playgrounds and parking.  She would like to have someone on staff make her feel better about the parking situation and playgrounds.  Mr. Rongstad said it’s apartments and there would be a parking lot so there is not a need for parking at each individual unit.  She said she had seen a drawing where the parking would be in violation of city ordinance.  Mr. Rongstad said that the photos showed garages in the front and that in this case any garages would have to be in the back of the property.   Councilwoman Rushefsky asked if there would be parking on the street and the answer was that no, the developer would have to provide one parking space for each bedroom.

Councilwoman Rushefsky said she shares Mr. Wheeler’s concern about a play area after the developer said that the complex would be for families with young children.  She doesn’t like the idea that young families are being excluded from center city area developments because there appears to be a trend against spaces for children.

Mr. Wheeler said this might be a trend that goes past the last few proposals.  He said that current ordinances require green space but there is nothing that requires developers to put in playgrounds or play space.  He wants to see a change to ordinance that would allow P&Z to require playground and/or play space in new developments.  He would like to see the Matrix system worked to give points to developers who include playground space.

He is concerned about getting children places to play and off the street.

Councilwoman Rushefsky asked if he sees it as a problem.  Mr. Wheeler said personally he thinks it is but that P&Z has not addressed it yet.

City Attorney Wichmer said that the city needs to consider that requiring a playground puts developers at additional risk for lawsuit if there is an injury on the playground area.  He said that the city is not normally at a place where they require business owners and developers to have more risk than necessary.  It can be considered an “artificial hazard.”  Councilwoman Rushefsky asked who is responsible for the hazard if a pool is put in and the answer was the owner.

Mr. Rongstad said that there is a school park three blocks to the east.  (Editorial note:  I live in that neighborhood and the street they would likely walk up is a residential street that would have the 25 mph speed limit but they would have to cross Fort.)

Councilman Burlison asked if safeguards were in place to stop a development like shown in the photo that no one in the neighborhood wants to see.  Mr. Rongstad said that the developer has to go through a design process to meet a city standard for building low income housing.  The overlay condition said that any building has to have pedestrian entrances facing Kansas but cannot have garage doors facing the street.

Councilman Burlison said it’s probably not feasable to micromanage the design process.

Jane Earnhardt came to speak and she is a representative of the landowner and developer.  She said under current zoning, they could build in the manner that everyone does not want.  She said the new plan allows one development instead of a subdivided development.  “They intend to blend in with the neighborhood in a visual overlay.”  She said they had a public meeting and the people who attended seemed to have their concerns answered.

“The reason we hadn’t included a playground initially was because we planned to have a lot of green space on the west side of the property and we didn’t have to have children that close to Kansas Expressway.”

Councilman Wylie asked if it was this woman’s experience that playgrounds are incorporated if a developer is going after a certain market like he sees in advertising for other complexes promoting things like health clubs on site.   Ms. Earnhardt said that playgrounds can be a liability.  “If somebody gets hurt, you’re exposed.”  She said that amenities are based on demographics.

City Attorney Dan Wichmer said he wanted to clairify that right now the city doesn’t mandate that a developer take on the additional risk of a pool (for example.)

Councilman Manley said that his grandfather built the house on that property 97 years ago and that he picked strawberries where Kansas Expressway is now located.

Councilman Whayne asked staff about parking.  “If each family has three cars, where are they gonna park?”  Mr. Rongstad said that if there is a two bedroom apartment, they have to provide two spaces.  For a one bedroom, they have to provide one and a half.  “Some developers do provide more than the minimum and they may do that.”  Councilman Whayne asked if this limits the number of cars a family may have if they live at the complex.  The answer was that the developer can limit it but the city cannot make those limits…they can only require the minimum number of spaces for any complex.

Councilwoman Rushefsky said this was her last comment.  She said she understands the liability and that’s the reason the Council doesn’t want to mandate that.  She said that she doesn’t understand why it can’t be mandated for someone to take that risk if other developments willingly take on the risk of things like workout facilities.  “If there were an incentive, some points for example that were given for this kind of thing…is that something that you think might be worthwhile in terms of encouraging builders to include those kinds of things for children?”

Mr. Rongstad said that under the current plan a developer can get points for a playground but it’s under a bulk system with other items like a pool.  He said they could break out the system if the Council wished to do.  He said he doesn’t remember in a long time the last time someone put in a playground with an apartment complex.

The developer representative said part of a development is getting residents out in the neighborhood to meet the community and that the school park helps enhance that.

Mayor Pro Tem Deaver said it was his understanding that reading the design guidelines that the intent is to have sidewalks, front porches and a residential feel to the neighborhood.  “The majority, if not all of the parking, would be in the interior of the property.”  The developer representative confirmed that is correct.

Mayor Pro Tem Deaver said that the “poster child” for what the neighborhood didn’t want had cars all over the place despite two car garages and the single family residences around don’t have garages but look much better.

Mr. Wheeler said that the city would be well served not to put the playground issue on this particular issue.  He feels this applicant should not bear the burden of a sudden change.  He said that the Council should step back and take a look at it.

Mayor Pro Tem closes the public hearing and announces a vote in two weeks.

7:53pmCOUNCIL BILL 2008-129. SUBSTITUTE NO. 1. (Wylie)A general ordinance amending the Springfield Land Development Code, Section 1-1600, Zoning Maps, by rezoning approximately 6.89 acres of land generally located at 3900 South Lone Pine Avenue, more particularly described in this ordinance, from a GM, General Manufacturing District, to an R-MD, Medium-Density Multi-Family Residential District; and establishing Conditional Overlay District No. 17 (Both Planning and Zoning Commission and staff recommend approval). (By: Vaughn Properties, LLC.; 3900 South Lone Pine Avenue; Z-14-2008 and Conditional Overlay District #17.)

Mr. MacPherson said that on May 5, 2008 Council Meeting there was concern regarding the design of the facility.  He said the applicant requested changes as a result of the meeting and there have been more public hearings about the facility.   He said the applicant has submitted a new proposal.

He said one of the issues that made a difference was neighborhood compatibiliity.  “It’s an all or nothing issue…you get all three points or you get no points.”  He said that this new proposal has received all three points for this new design.  He said the total number of units was restricted to comply with that compatibility.

7:57pm…Mayor Carlson arrives and takes his seat.

Mr. MacPherson said that the property received points because of it’s connectivity to greenway space and bike trails.  He said that future development of the quarry could lead to greater connectivity to the property to the Galloway area.

Staff and P&Z recommend approval.

Councilman Wylie asked about the stormwater aspect of the design.  Ms. Honea said that public works is looking at it and will get the report to Council before the vote in two weeks.  Councilman Wylie asked if businesses next to the development spoke against it at the planning and zoning meeting.    The businesses were concerned about outdoor storage next to a residential area being restricted and staff said that the businesses could continue to do all they are currently doing but could not increase the intensity.

Councilwoman Rushefsky said she feels like the developer is taking a beating for what is one of the better projects that she’s seen.  She said it seems to offer a lot of amenities in general.  She was concerned there would be more neighbors to complain about the quarry and that they probably shouldn’t do that.  She said that she cannot see any immediate connectivity and asked how far on the horizon does the connectivity have to be to get the points in the matrix for the development.  “The connectivity seems pretty iffy.”

Staff response was that connectivity is estimated based on property in the surrounding area and potential roadways within that future development.

Councilman Manley said he toured the area and he “got plum excited.”  He said that in the Galloway area there was a layer of dust over the whole area and that it’s all gone now.  He said it’s great to see the area being redeveloped that was blighted for so long with the lime plant.   “What a blessing that would be to that part of town.

8:11pm...Brent Stevens, developer of the property, addresses Council.  Mayor Carlson suggests that one speak first and that the second answer questions if any arise.  Mr. Stevens said that the rezoning was faced with multiple hurdles from staff mistakes on the matrix.  He said that he hopes this process has opened the eyes of all involved.  “It should be noted this developer has been patient through the whole process.”

He said the developer willingly lost some units and redesigned so that the proposal is completely in line with the current matrix.  “As Councilman Manley said, it’s a blighted property in the middle of Springfield.”

He said it could be developed now into general manufacturing and that this would help redesign the focus of the area.  He addressed Councilman Wylie’s concern regarding the stormwater issues and that they want to solve those problems.  He said the design has a basin to catch the stormwater that comes across their site.

He showed an artist rendering of the site.

8:17pm…Gene Walker addresses Council.  He said he sent letters to the Council about the development.  He said that he wants to agree with the developer.  He said a rezoning was approved on April 8th unanimously that was scored lower than this development.

He showed an initial Multi-Family Location and Design Assessment Matrix that was done by Bob Hosmer that gave them a score of 3.  He showed the current matrix that has been scored a 10.

Mr. Walker wanted to know if the city had the proper plans according to the Matrix.  Mr. Rongstad said that it was submitted.  Mayor Carlson said that Mr. Walker should address the Council and not Mr. Rongstad.

Mr. Walker claims that points were given to the developer for things that do not exist.  He claims that the staff intended to mislead the Council and they did.   He said that the current Southwest development plan says no apartments can be built in that area.

He asked if the Mayor had read his letters and he said yes.  The Mayor said it wasn’t a Q&A time and that Mr. Walker should make his points to Council.  Mr. Walker thanked Council and sat down.

8:22pm…Robert Bradford spoke.  He has a business near the property and that they are incredibly against it because of the restrictions on outside storage.  If this passes, it will cut the general manufacturing area right in half and eliminate the businesses’ ability to expand.  He said it would significantly increase traffic.

He showed Council photos of the area after the recent flooding and the issues with people trying to drive through it and drive through his property to avoid the flooding.

He says in winter when the road is icy people cut through their property to Lone Pine.  He said apartments would increase the traffic.

He said that they definitely have to add more outside storage because of current contracts.

Councilman Wylie asked staff if they would be restricting his outside storage beyond what he’s doing now.  “There would be a buffer required currently in place but he would not be restricted from any storage as of today.”  The staff said “he cannot increase the intensity” but that it’s vague as to the meaning.  Councilman Wylie said that this rezoning is taking away this man’s right to do storage on his property.  Mr. Rongstad said that he would be grandfathered in.

Councilman Wylie said that he’s seen that he’s had items packed in the property and moved out as they were sold and how they measure intensity.  Mr. Rongstad in the past they’ve used airial photography or complaints from neighbors.  He said there has to be a dispute before they come out and investigate the area.

Staff said that if business cycles and flows that he would be grandfathered in and that he could use that 100 feet of buffer space.

Councilwoman Rushefsky asked if the 100 feet will move back into his property if the rezoning is passed.  “Will it physically move him back from where he is now storing?”  The staff said it would only effect the land if it’s sold or transferred to another property owner.

8:31pm…A man was introduced and said it was the wrong number and that he didn’t want to speak on the issue.  Mayor Carlson said they wouldn’t make him and everyone had a good laugh.

8:32pm…Sam Coryell, Jr., developer of the property.  He said that the loss of six units costs him money long term.  On stormwater issues, he said that everyone knows when redevelopment happens usually stormwater issues go away.  He said that he will take care of his property but cannot say anything about surrounding land.  He said that they would have a playground area for children at the faciility even though it’s not as elaborate as Sequiota Park.

He said that he would hope in the future Planning and Zoning and Council would clearly define the Matrix so it’s set in stone and make it easier on those investing money in a property.

Mayor Carlson said he that he feels anyone on the Council would be “tickled to death” to have it set in stone.  He said that the problem is that this is an evolving process.  “As you have a lot of these things as first impressions you just have to work through it.  You just were unfortunate enough to be caught in that process.”

Councilman Whayne commended Mr. Coryell for sticking with the process.

Councilman Burlison asked if he had any concerns for his residents about bleeding over from neighboring industrial processes.   Mr. Coryell said it was a concern and that he and his wife said that they wouldn’t have a problem living down there and that was a determining factor.  He doesn’t feel it would bother his customers.

Councilman Burlison said he has a real concern about the neighboring business.  “His current situation is grandfathered in.  Is this going to limit his ability to expand his business?”  Staff responded that he would not be able to expand toward the residential area.   The developer said that the fact there were single family homes in the area helped convince them to do this project.

Mayor Carlson asked staff to send a letter to Mr. Walker regarding the point system and the Matrix.  Public hearing is closed.  Vote in two weeks.

8:40pmCOUNCIL BILL 2008-206. (Manley)A special ordinance authorizing the City Manager, or his designee, to enter into and accept a grant from the Environmental Protection Agency (EPA) for environmental cleanup in the West Meadows of Jordan Valley Park, and amending the budget provided for the Planning and Development Department of the City of Springfield, Missouri, for fiscal year 2008-2009 in the amount of $200,000. (Staff recommends approval.)

Mary Lilly Smith addressed the Council.  This is a grant to clean up the land that was donated to the city from Burlington Northern.  There is a 20% match required by the city.

Councilwoman Collette asked what would be done with the grant.  Ms. Smith said it would be clean up of the site and working with the brownspace plan.

8:42pmCOUNCIL BILL 2008-207. (Carlson) A special ordinance approving an amendment to the Redevelopment Plan for the University Plaza Redevelopment Area and authorizing the release of a cooperative parking plan.

Ms. Smith again spoke.  In 1981 the redevelopment plan was put in place for the University Plaza hotel complex and that this would remove the parking restrictions for the redevelopment area.  “It cleans up the old redevelopment agreement.”

8:43pmCOUNCIL BILL 2008-208. (Carlson)A special ordinance authorizing the City of Springfield, Missouri, to issue its Industrial Development Revenue Bonds (910 Springfield, L.L.C. Project) Series 2008, in a principal amount not to exceed $21,500,000 to pay the costs of a project for 910 Springfield, L.L.C., consisting of construction of an approximately 109,600 gross square foot building for use as office industry located at 910 St. Louis Street in the City of Springfield, Missouri; authorizing and approving certain documents; and authorizing certain other actions in connection with the issuance of the bonds.

Mary Lilly Smith asks a resolution to be considered at the same time:  COUNCIL BILL 2008-209. (Carlson)A resolution approving a plan for an Industrial Development Project for 910 Springfield, L.L.C., and determining the official intent of the City of Springfield, Missouri, to issue its Industrial Development Revenue Bonds in a principal amount not to exceed $21,500,000 to finance the costs of such project.

Ms. Smith said both bills are implimenting the development agreement approved in the last meeting for the development of the BKD building.

Tax abatement:  100% for the first 10 years, 50% for the next 15 years.  If the building achieves the silver LEED rating for a green building the rate will be 75%.  The city will own the building and lease it back to BKD and as a result it will be exempt from property taxes as it’s owned by the city.

Payments in lieu of taxes will be made to taxing juristictions and the land will be taxed as well.

Currently, as is, the taxes will be $37,000 over the time of the development.  If developed, the taxing juristictions will receive over $2 million if the building is LEED Silver, $4 million if not.

Councilwoman Collette asked how the city can issue $20 million in bonds and not have it effect the city’s ability to issue bonds.

8:48pm…David Queen addressed Council about the “Chapter 100 Bonds” and that the only thing that can secure the bonds is the property and the building.  It’s a “special, limited obligation bond.”  He said they are not factored into the city’s debt calculations and that bond rating agencies do not consider them when rating the city.

He says that with these bonds, there is no third party lender.  The city would have a trustee as the city’s agent, in this case UMB Bank, to make sure the city’s interests are protected.  The city is obligated to give the land back to the developer only if there is no default.

Councilwoman Collette asked “could the city still end up with the property in the end if the bonds are not paid?  We actually own the property, correct?”  The answer was the bond holder owns the property.  In this case, because it’s a tax abatement vehicle, Opus does their financing separately.  “So the city never winds up with the property, it has to go to the bond holder if there is a failure to pay.  But there is never a failure to pay.”

“Really?” Councilwoman Collette.

“Yes, the bond holder is the lessee.”

Councilwoman Collette said it’s so unique that it’s very confusing.   Opus will own the property and lease it back to the city.  If Opus goes out of business, the city could end up owning the building or the parking lot.

Councilman Burlison asked “why do we have to go this route?  Is it in order to provide the tax abatement?  It seems to be these could be provided without having to take that step.  Is this more of a new incentive that we’re trying out?”

Answer was it’s an old incentive.  The only reason is to confer a property tax exemption.  He said Missouri law is very jealous about taking property off the tax rolls.  Chapter 100 and Enterprise Zones are the only way to do it.  He said that over the years they’ve tried to streamline the process but that it’s been voted down the last four years by the legislature.

He said that it’s hard but it should be hard to take property off the tax rolls.  “Yes, we could simplify it if we could change the law.”

Councilman Deaver asked how many states have similar law.  He said four of the six his firm works in has similar laws.  “The bottom line is by issuing these bonds that instead of $37,000 being given to taxing entities that $2 million will be given.”

Councilwoman Rushefsky asked why this is being done tonight and the answer was because it was part of a previous agreement with Opus and John Q. Hammons.  He said this was agreed to in earlier agreements.  Councilman Rushefsky asked if this is a critical component of the original sale.  The answer was this part of the legal agreement with John Q. Hammons for purchasing the parking garage.

Mayor Carlson said you can’t contract away your right to vote ’cause that’s bribery and you go to jail for that.  He said that what this means is if the city doesn’t vote for this then the builder is under no obligation to do their part in this development just like the Heer’s development.

City Attorney Wichmer said that this was the key part in keeping BKD downtown.

Councilman Wylie asked for a summary.  He asked what else besides keeping BKD downtown was part of this.  The answer was the #1 priority was keeping BKD downtown and keep the high paying jobs downtown.  He said that this was also to facilitate a new construction company moving into Springfield for the first time and get the convention style hotel.

Councilman Wylie said that this is what the voters wanted years ago and this is part of the puzzle.  “It’s a very important part.”

9:05pm…Fred Ellison of the Missouri Liberty Coalition.  He said there are good reasons to keep BKD in Springfield and he understands the desire to do so.  He said he wants to put a slightly different perspective on what’s being proposed.

He said when he read the analysis he asked if the building were built how much property taxes would be paid if they did not give away the taxes.  He said his calculations were that it would generate $14 million in property taxes over the 25 years.

“When faced with the idea of getting only $2.2 million over 25 years, the total cost to the taxpayers is $12 million.  It looks like you’re asking the taxpayers of Springfield to fund this building for a profitable company.”  (Editorial note:  Yeah, it does.)

He said that even giving abatement for things like being more environmentally friendly that the business would do this on their own to cut utility bills.  He said that the revenue could go to schools.

Councilman Burlison asked Mr. Ellison “as far as comparing figures and what money we would have made through property taxes without abatements, I’m not real sure that’s a realistic way of looking at this.  If there are no abatements, there is no building.  We get the property tax from a parking lot at that point.  I’m not trying to be facicious because I have the utmost respect for you but have you given that any thought?”

Mr. Ellison said he understands Councilman Burlison’s point but that he doesn’t think “we have to auction taxable value to get development in every case.”  He doesn’t see where “we should give it away.”

Councilman Manley said that Council looked at the long term effect on the city and that these high paying jobs are good for the city.  “What if we didn’t do it?  We couldn’t get the firm.”  He said that all of these workers who work there will live here, spend their money here.  “This is the greatest bonanza we could do for this particular project because they could get it elsewhere but they got it  here to keep the high paying jobs here.  We could not get it if we did not do this.  I think it’s a win-win for all citizens and taxpayers of Springfield.”

9:12pm…David Harrison, General Manager of Opus Development.  He spoke about a development in Kansas City where they did a Chapter 100 deal to get things done.  He said in Kansas City they passed on the deal because someone objected to the city not having the deed on the deal.  He said it took three years to walk them through the process and how it works but once it was done they’ve done nine deals in Kansas City.

“I would love to stand up and say it would be great if you can just check a box and get tax abatement…these are the cards we’re dealt with and we have to go through the process.”

He said he cannot imagine any situation where there would be a default.  The only way it could happen is if Opus wanted to redeem the bonds but the tax abatement would go away and he sees no reason why that would happen.

He showed some artist renderings of the building that is a “four sided building…there is no back to this building.”  He joked that a gentleman with a receeding hairline “had a full head of hair when he started this process.”

Councilman Manley said he was very excited.

Mayor Carlson said that he agrees with Mr. Ellison’s concerns.  He said that he has the distiction of being the only person to vote against one of these and that was John Q. Hammon’s tower in 1984.  “It seems like he ought to be able to build it himself.”  He said “the heck with it, I’m not going to build it.”  A few Councilmembers changed their vote and Mr. Hammons went through with it.

“This is a “but for” situation.  The Council has to ask if they would do this deal without it.”  He said all we know is that if we don’t do it that other cities would love to do it and Kansas City would likely give more than what we’re giving.

“I’m not challenging Mr. Ellison’s figures because I’ve seen them before and they’re generally accurate,” Mayor Carlson said.  “But do we let that money go elsewhere and have a problem downtown?”   The Mayor said that you could build a good case for BKD buying a cornfield along Interstate 44 where they could have 60,000 people a day see the BKD sign versus being downtown.

“It would be hard for me to think that BKD would say ‘we love Springfield so much that we’re going to put $12 million downtown’ when they could go to Kansas City where the airports are better.”

“Should we gamble with the future of our area or should we take a sure thing?”

The Mayor said the Council has been “pretty judicious” about these tax abatements.  He said they don’t give them out for places on South Campbell or somewhere outside of the center city area.  He said that if businesses are willing to help revitalize center city then they’re willing to consider it.

“It’s my view that you wouldn’t see what’s occurred in downtown development if we haven’t been aggressive in these kinds of developments.”

Councilman Wylie “the voters said we were to do something in that area and we’re doing it.  Also, as you look at that property it’s asphalt and striping on it.  Now we have a beautiful development.  I’d rather see the building there than just the asphalt.”

The vote on COUNCIL BILL 2008-209. passes 8-0.

9:24pmCOUNCIL BILL 2008-212. (Carlson)A special ordinance amending the rules and regulations of the Small Business Development Loan Program and the Comprehensive Housing Assistance Program to provide for a Pilot Business Incentive Program and to make minor updates to the overall regulation. (Staff recommends approval.)

A speaker said that this plan has focused on real estate development but recently the Urban Districts Alliance in conjunction with business owners have identified a need for small business development.  He said this bill impliments the rule changes to meet the need.

Councilman Burlison asked what the reasoning was for the geographical focus of these regulations. The  answer was these have traditionally focused on smaller areas like downtown or Commercial Street.  It was also brought forth by the Urban Districts Alliance as a pilot program and it’s the districts that UDA serves.

Councilman Burlison asked if they were restricted by an Enterprise Zone and the answer was no.  The Councilman said that “when you limit it geographically that some folks will feel there is some special favors in play.  I understand the concept of a pilot program but if we move forward I would like to see this expand because I don’t see a bad place for small business.”

9:29pm…Rusty Worley of the Urban Districts Alliance thanked the Council for their investment in the Center City.  Councilman Manley said that it’s an effort where we “help the poor segment of our population in any area.”  It’s for the people in our community who need it.  He thinks it’s an attempt to help those who are less fortunate.

Mr. Worley said that 50% of businesses fail in the first year.  He said that the #1 reason is not enough investment capital.

Councilman Burlison asked him to explain the nature of his organization and why they’re uniquely qualified to bring this to Council.  Mr. Worley said that they’re downtown and “get a front row seat” to what happens downtown.  There’s been a 3:1 ratio of businesses opening versus ones that close.

He said that in the developed area around the city edges it’s harder for a small business to germinate but it’s easier to grow downtown.

The Mayor asked if there was a matrix used and the cap per business.  Mr. Worley said no matrix is used and there is a limit of $25,000.  The Mayor wanted to get an explanation as to if the money will be used up quickly and if people will be “left in line.”

Mr. Worley said that’s why it’s a pilot program to help and determine the need.  The loan committee’s policy has always been first come, first served.

“If this is successful, we could talk about moving more money into this area.  I think this is a smaller area and much more staff intensive.  We want to evaluate if this is a more effective use of our staff.”

The Mayor said he used to represent banks for many years.  “So I look at equipment and I wonder if they’re loaning someone $10,000 over 15 years for a piece of equipment that would be gone in three years.”  The answer was that all loans would be considered that way and that there is a personal guarantee in every loan.

The Mayor said it’s great that we’re helping small business but the city needs to make sure they get their money back.

Vote in two weeks.

9:37pmCOUNCIL BILL 2008-214. (Manley)A resolution authorizing the City Traffic Engineer to close Cambridge Street, from Nettleton Avenue to Fort Avenue, on August 1, 2008, from 4:00 pm to 10:00 pm, for “Freedom Fest”, subject to certain conditions.

Councilman Burlison, who had it removed from the consent agenda, wanted to find out more about the event and get more public awareness.  He asked if there was anyone with the organization to address it.  No one was in attendance.  Ms. Honea said the reason the street is being closed is because the event is taking place at a vacant lot across Cambridge from a facility with handicapped residents and that’s the reason for the street closure.

Councilman Wylie said that this is for the Southwest Center for Independent Living.

Bill passes 8-0.

9:40pm…Due to a request from staff, the City Attorney said the Council can remove if there is no object a bill from the consent agenda.  COUNCIL BILL 2008-213. (Rushefsky)A special ordinance authorizing the City Manager, or his designee, on behalf of the City of Springfield, to accept a $30,000.00 donation from Prime, Inc. to accelerate the improvement of Mayfair Avenue from Route 744 (Kearney) north to its point of ending and adjusting the budget for the Department of Public Works for the Fiscal Year 2008.

Staff said Prime is putting up $30,000 to help with $90,000 to expand Mayfair from 20 feet to 26 feet.

9:42pm…Fred Ellison spoke to Council.  He said that this precedent bothers him.  He said wanted to know if other projects that get supplanted by having this project moved up can view this more as a bribe to get their project moved ahead of other projects.

“What’s the next amount of money that is necessary to get another company’s project moved to the top of the stack?”

Councilman Burlison spoke about how the perception in the public that someone can cut a check and get the city moving is unsettling.  “What can we do to be more transparent about this process?  How do you avoid the interpretation that cost sharing with entities don’t delve in this area?”

Staff said this was a project that was going to be done this summer anyway.  The $30,000 is going to cover almost all of the cost of the widening of the road.  Councilman Burlison said this is something to keep in mind going forward.

Councilman Deaver said that we need to go to the dictionary and look up the definition of bribe.  “It’s when someone puts money in their pocket and not when someone partners to finish a project.”  He said he was greatly offended at the accusation that it’s in line with bribery.

At this point, Linda Herd stands up to disrupt the meeting and yell that she takes offense with Mr. Deaver.  (Editorial comment: A very disrespectful, classless move on her part.)

Councilman Manley said this was a good thing for the city.

9:47pmCOUNCIL BILL 2008-210. (Rushefsky)A special ordinance authorizing the City Manager, or his designee, on behalf of the City of Springfield, to enter into a Cost Participation First Supplemental Agreement with the Missouri Highway and Transportation Commission (MHTC) for the purpose of coordinating participation by the City, City Utilities of Springfield, and Springfield Underground in the cost to construct public improvements on Route 744 (Kearney Street) from the US Route 65 interchange eastward to the Le Compte Avenue intersection, in the County of Greene, in accordance with the Commission’s Project No. 8S0919, and declaring an emergency.

Because it’s an emergency bill, it can be voted on tongiht.  Bill passes 8-0.

9:49pmCOUNCIL BILL 2008-205. (Manley)A special ordinance to accept the bid of Rensch Construction, Inc. for the removal of the canopy at the northeast corner of Park Central Square in the City of Springfield, Missouri, and authorizing the City Manager, or his designee, of the City of Springfield, Missouri, to enter into a contract for said improvement.

This is to remove the last quadrant of the canopy on the square.  Staff said the State Historic Preservation Office has signed off on the removal of the canopy.  The Mayor said the canopy effects downtown getting historic credits and the removal will allow those to happen.

Councilman Deaver said the bid amount was half of the next closest bid and that it’s a “favorable treatment” from Rensch Construction.

Rusty Worley came to speak about the bill.  He said that he’s on the technical committee for square revitalization and was there to answer questions.

Bill passes 8-0.

9:51pmCOUNCIL BILL 2008-174. (Rushefsky)A general ordinance amending the Springfield Land Development Code, Section 1-1600, Zoning Maps, by rezoning approximately 3.9 acres of land generally located at 920 North Glenstone Avenue, more particularly described in this ordinance, from an HC, Highway Commercial District, to a GM, General Manufacturing District. (Both Planning and Zoning Commission and staff recommend approval.) (By: Dale Dryer and William Montgomery; 920 N. Glenstone Avenue; Z-16-2008.)

Bill passes 8-0.

9:52pmCOUNCIL BILL 2008-192. (Manley) A general ordinance amending the Springfield Land Development Code, Section 1-1600, Zoning Maps, by rezoning approximately 0.26 acres of land generally located at 420 South Grant Avenue, more particularly described in this ordinance, from a GR, General Retail District, to a CC, Center City District, (Planning and Zoning Commission and staff recommend approval). (By: Missouri-Kansas Bricklayers and Allied Craftworkers Local Union #15; 420 South Grant Avenue; Z-15-2008.)

Bill passes 8-0.

COUNCIL BILL 2008-193. (Manley, Rushefsky, Whayne, & Wylie)A special ordinance amending Special Ordinance No. 24774 concerning the level of incentives to be offered under the Enhanced Enterprise Zone Ordinance Program qualifying businesses that become certified at the Silver level or higher under the Leadership in Energy and Environmental Design (LEED™) program. (Springfield Enhanced Enterprise Zone Board of Directors and staff recommend approval).

Councilman Deaver said that when they took public testimony it showed the “hoops” that have to be jumped through to get LEED certification.  He said that he thinks the most important thing is that we give “our folks one more tool” to getting projects done.   He said this is not etched in stone and that he hopes other certification standards will come forward with more of an emphasis on the life cycle of a building.

Councilwoman Rushefsky that since Mr. Chiles isn’t present that she needs to jump in and say the market is moving too slowly into this area.  While she agrees with Fred Ellison regarding tax abatements that it’s been left to cities to step into the breach and raise environmental consciousness.  “We seem to be the ones left holding the environmental bag.  I wish we could do this another way.”

She said that builders…and she doesn’t fault them…take the lowest cost approach when left to their own devices.

Councilman Wylie said that he had calls from constitutents wondering why established businesses don’t get the benefit and he said if any business expands they can get the credits if they meet LEED criteria with their expansion.

“We’re in a world market now.  We’re not just competing with someone across the county line.”

Bill passes 8-0.

9:57pmCOUNCIL BILL 2008-194. (Carlson)A special ordinance authorizing the City Manager, or his designee, on behalf of the City of Springfield, to enter into an agreement to permit City Utilities to use reclaimed water from the Southwest Treatment Plant to cool towers at the Southwest 2 Power Plant.

Mayor Carlson said that this makes him proud of the relationship between the City Council and City Utilities.  He said it’s an innovative way to recycle water and draw water from the aquafer for cooling the towers.   He said this reminds him of the methane recapturing on landfills being used to power about 2,000 homes.

Bill passes 8-0.

9:58pm COUNCIL BILL 2008-195. (Carlson)A special ordinance amending the budget for the City of Springfield, Missouri, in the General Fund for the fiscal year 2007-2008 in the amount of $172,000 to decrease revenue and expense appropriations in the General Fund in the same amount and transferring unexpended appropriations from one department to another in accordance with Section 5.17 of the City Charter.

Bill passes 8-0.

9:59pm…As per RSMo. 109.230 (4), City records that are on file in the City Clerk’s office and have met the retention schedule will be destroyed in compliance with the guidelines established by the Secretary of State’s office.

Mayor Deaver said that he made a procedural error earlier in the meeting when adjourned.  Everyone had a laugh and then Councilman Burlison moved to adjourn until tomorrow at Noon.  Motion passes.

10:01pm…Meeting adjourns.

2 Responses

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  1. Thank you for blogging from the council meeting again, Jason. Yours is the most complete report to be found anywhere. The so-called professional journalists should be jealous and ashamed of their own weak efforts.

    I’m going to add only one comment. It’s about the Mayor saying he’s proud of the relationship between the Council and CU. That’s ridiculous! CU isn’t an independent company, even though it pretends to be. CU is a part of the city government, which the Council oversees. I wish the Mayor and the Council would remember that.

    Thanks again, Jason.

    Walter

    Wednesday 16 July 2008 at 5:56

  2. Walter, this is a one-off kind of thing. My church group was meeting Tuesday instead of Monday this week so I had the night free. It won’t happen often but when I can be there I will. :)

    Jason

    Wednesday 16 July 2008 at 9:52


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