Loading...
HomeMy WebLinkAboutMinutes Parks And Recreation Advisory Committee - 08/13/2003 i✓ V PARK AND RECREATION ADVISORY COMMITTEE Regular Meeting • August 13, 2003, 5:00 p.m. City Hall—Basement Training Room 1201 Leopard St., Corpus Christi, TX Members Present Members Absent Staff Present Gloria Aguilar Dorrinda Garza Anne Baker David Ondrias George Noe Sandra Billish Rome Gregorio Linda Hodge Mark McDaniel Clifford Bost Billy Olivarez Peter Davidson Margie Rose Davie Cissna Gregory Perkes K Chute Maria Ramos CALL TO ORDER: Chair, Sandra Billish called the meeting to order at 5:10 p.m. II. ROLL CALL OF MEMBERS: The recording secretary called roll and announced that a quorum was present. A moment of silence was observed for the death of McDaniel Whitworth, Director, Park & Recreation Department. III. ADOPTION OF MINUTES: Special Called Meeting of May 8, 2003. Rome Gregorio moved to accept the minutes as submitted. Maria Ramos seconded. The motion passed. Regular Meeting of May 21, 2003. The misspelling of Gregory Perkes' name was noted. Gregory Perkes moved to accept the minutes as corrected. Dorrinda Garza seconded. The motion passed. )V. HEAR FROM THE PUBLIC: Announcement that the Public would be heard after the presentation. V. BUSINESS: A. Presentation of Landry's Memorandum of Understanding (MOU) A PowerPoint presentation was given by George Noe, City Manager and Mark McMcDaniel, Finance Director to summarize the MOU. Questions and points of clarification were received from the Committee members and answered by Mr. Noe, Mr. McMcDaniel and Mr. J. P. Plummber an independent lawyer hired by the City to assist on this project. Sandy Billish asked if the focus group was ever organized according to the January 9, 2002 agreement presentation. Mr. Noe responded that the Stakeholders group had representatives from all interested parties and was facilitated by Scott Elliff. The checklist contains most of the questions asked. Rome Gregorio asked what would be included in the $20 million dollar improvements. Mr. Noe noted that Exhibits C & E give this information. Gregory Perkes noted the addressed compensation to the City from the restaurant business. He Q questioned revenue from the amusement rides, parking, and other related fees. Mr. Noe stated the LE j compensation would be a million dollars in rental and 2.2% of project revenue. This includes all revenue, not just from the restaurants. The Seawall and the Breakwater will not be impacted. `— Billy Olivarez asked about the future of the local shrimpers. Mr. Noe said they would continue to have an operation at their current location. U Sandy Billish asked if the Landry's agreement would dictate what Mr. Loeb could build. Mr. Noe clarified that this specification applied only in the area of restaurants. Ms. Billish stated that she did CO not believe Landry's should be able to dictate to a local developer what could be done. Mr. Noe stated this was part of the negotiated agreement insisted upon by Landry's in order to go forward with their plan. Clifford Bost asked if the restaurant site part of the agreement could be re-negotiated in the final document. Mr. Noe noted this was a matter of concern for Landry's and that he can not guarantee that they will agree to an open ended agreement on this topic. Mr. Bost asked for clarification 60 regarding Landry's Right of First Refusal if Mr. Loeb should decide not to develop in that area. Only if Mr. Loeb abandons that project was Mr. Noe's response. Mr. Bost then asked about the accessibility of the area for persons with disabilities. Mr. Noe assured the committee that the project would comply with all applicable rules and regulations. Mr. Bost asked about the process for the existing lease holders. Mr. Noe stated that Landry's will honor all existing leases. As leases expire, negotiation with Landry's will be required. Landry's will manage all existing leases. Mr. Bost asked if Landry's would maintain and/or modify the boat ramps. Mr. Noe was not certain if the boat ramp had been specifically addressed but Landry's has agreed to continue all current operations. Rome Gregorio asked about the project pro forma regarding the debt service award. Mark McMcDaniel lead discussion and noted this report was only an example snap shot. Concern regarding the future employment of the current Marina staff was then expressed by Mr. Gregorio. Mr. Noe clarified that the Marina is currently a self supporting operation. Mr. Noe stated that there is expectation of high quality maintenance because of the new infrastructure to be installed. In consideration of the Marina deterioration problem, Gregory Perkes asked if the City would be requiring Landry's to provide any bonds to guarantee they would produce the project. Also, what consideration has been made regarding any future project? Mr. Noe said the issue of security and insurance has not been discussed yet. Those items will be included in the final document. J. P. Plummer interjected that the public improvements would be bonded. The construction of the restaurants would not traditionally be a bonded project. The Landry's corporation will give a corporate guarantee against this contract guaranteeing the completion of the contract and will pledge the entire Landry's corporation backing for that. Mr. Perkes asks what considerations or council approval are being planned for future amusements or rides. Mr. Noe answered that at this point the agreement is generic. Landry's can replace rides within the scope of their lease area. They are not authorized to build any other developments on this project without City approval. Mr. Perkes then asked about the sharing of revenue with the Park & Recreation Department. Mr. Noe stated the revenue sharing is outside this process. Any net revenue becomes the City's general revenue. The City Council would then need to be consulted. Sandy Billish questioned in the memorandum that Landry's is asking Corpus Christi to be named as additional insured on liability issues. How will it be interpreted, regarding the amusement rides, if someone is injured? Mr. Noe clarified that the City is asking to be named as additional insured to cover the City's liability. Billy Olivarez asked how the noise level issues are being addressed. Mr. Noe stated that at this time there is no additional language to address this issue but that all ordinances and codes must be observed. Mr. Olivarez asked about parking and over flow parking for this project. Mr. Noe noted that Landry's is required to provide the same number of spaces as required by the code for their zoning, about 900+ spaces. Off site parking is begin considered. Details will be given in the final plan. Maria Ramos inquired how the Landry's amusement rides would conflict with the Buccaneer Days Carnival. Additionally, she expressed concern for traffic control. Mr. Noe stated that the Council has an interest to create a festival site for Buc Days and Bayfest as these events are outgrowing their current site. Issues regarding traffic will be managed by the City. Dorrinda Garza expressed concern about moving the Buc Days and Bayfest events since they have been at that site since their inception. Mr. Noe related that the Council has been looking for a long time for a better, more permanent site where electricity, water, traffic control and other required services can be more easily provided. Growth has necessitated this development regardless of the Landry's development. Greg Perkes asked about the boat owner's rental. Mr. Noe related that if you are an existing tenant, you may not have your rent increased more than by the TPI. Mr. J.P. Blummer interjected that this rule includes renewals. Davie Cissna asked if there is or was a resolution charging the staff to develop a proposal that did not include a carnival atmosphere. Clarification of a carnival atmosphere was requested and discussed. Mr. Noe noted that the description included in the MOU is what will work for this agreement and will enable this project to move forward. It is the charge of the Park & Recreation Advisory Committee and the Council to decide if this is acceptable. Mr. Noe noted that this topic was addressed by the Stakeholders but carnival atmosphere was not defined. The agreement does ild V define what amusements can happen, The final document will give specific information that can be judged at that point in time. Davie Cissna asked for clarification that it is the purpose of this meeting for the Park & Recreation Advisory Committee to receive information about the contents of the Landry's MOU and public opinion regarding it so the Committee could make their written recommendation of what the MOU should look like to the Council. Mr. Noe acknowledged that to be correct. Dorrinda Garza asked if we currently had any other business that we allow to tell other business what can or cannot be negotiated. Mr. Noe said he did not know of any of those types of provisions. Mr. Loeb has been asking for information about what could happen around the site that he would like to develop. It is not unusual to have prospective businesses talking with each other. Davie Cissna asked what type of bonds would be issued on the twenty million dollar bond issue. Mr. Cissna noted that the agreement states the bonds will be funded by the rent to be paid. Does that mean it will be a revenue bond? Mr. Noe stated it would probably be a Certificate of Obligation which is a combination of revenue with a pleasure package. Financial structuring has not been finalized in the MOU. That will come with the final document. Mr. Cissna then stated that it was his understanding that the City would not ask for bonding on the construction that Landry's would do on the restaurants and amusements. Mr. Noe said that was correct. Mr. Cissna clarified that Landry's would not be putting up twenty million dollars in a fund like the City will be doing to insure that we will perform. Mr. Noe responded that Landry's has pledged the assets or the guarantee of the corporation to back their commitments for the construction and for the lease. They will be required to bond when we construct the twenty million dollar public improvements. Mr. Cissna asked who is the person or the entity that we are dealing with. Mr. Noe stated, LMLP and then asked Mr. Plummer to explain. Mr. Plummer said the entity is a single purpose entity that will own this asset and all of the obligations of that single purpose entity will be guaranteed by Landry's parent publicly held corporation. Maria Ramos asked if this project will economically and in other ways benefit our community. Mr. Noe stated, absolutely. Landry's is successful and will draw people from large areas. Ms. Ramos has read public comment against the proposal and expressed her concern. Mr. Noe stated the project was designed to generate its own resources to pay for the City's requirements. This is by the taxes paid and reasonable revenue. It is also hoped that this project will generate some rebuilding in the downtown area. Davie Cissna requested further explanation on the two capital funds. He understands that the City will create a capital fund of approximately two million. Those funds are to come from the excess funds over debt payment. Mr. Noe agreed. Mr. Cissna asked how the City would end up with money over the debt payment. Mr. McDaniel explained that initially the City would not. Money over the debt service from taxes would give a positive end result. Mr. McDaniel explained the Pro Forma figures are very conservative and don't show a profit for about ten years. However, if the project is very successful it will generate more revenue dollars. Mr. Noe noted that part of the back up is if the City doesn't have appropriate surplus revenue at the end of five years. Landry's will provide 5% to their fund as their pledge to maintain the project. Greg Perkes asked about future adjacent development. If the City decides to create additional facilities along the seawall how will that affect the Landry's development? Mr. Noe stated the intent of the map included in the MOU was to define the area of the Landry's project. Any additional development would not be included. Cliff Bost noted that Loeb's marine slips were to be restricted to owner only, for residents only. Why is that restriction being considered? Mr. Noe stated that the City is financially involved with both projects. We don't want to compete against our existing slips. Sandy Billish noted that in the January 9th presentation of the three finalist groups that responded to the Marina RFP, Landry's marina operations was the weakest. Mr. Noe noted that Landry's was rated weak against those companies that only operate Marinas. It was only one point in the evaluation process. Ms. Billish asked if the Landry's proposal isn't approved, do we other companies ready to proceed. Mr. Noe said we would then need to step back and ask ourselves what we would want to do with the Marina. The key is we want to do something that truly represents opportunities to improve the Marina and also to generate additional attractions and activities. it Greg Perkes asked if the anti-competition clause is a deal killer. Mr. Noe said he did not know. In negotiations so far Landry has insisted on them. Mr. Perkes suggested caution regarding a } possible monopoly on the development of our waterfront. Rome Gregorio requested better language and clarification of the anti-competition clause. Davie Cissna asked what the management fee would be if Landry's decided to take it instead of the net revenue. Mr. Noe said it would be based on a percentage of the gross Marina revenue. Billy Olivarez expressed concern about the Marina tenants parking. Mr. Noe said it was agreed for them to have a secured, separate parking area at their site location provided as part of their rental. Chair, Sandy Billish called a short recess. HEAR FROM THE PUBLIC: Cornelia Gates, 3534 Floyd, owner, Alamo Tile Works, expressed her concern for the destruction of the natural beauty of the marina and that the site would not be accessible to regular citizens who currently use the area for fishing, boat watching, etc. Pat Suter, 1001 Chamberlain, expressed concern regarding a previous FEMA regulation that affects the City's insurance and that the public park land would not remain open to the public. James Skrobarcek, 1729 Second St., expressed his concern about the use of park land and that there is no planned green space. Terri Ticken, 202 Grant, expressed her concern regarding the carnival atmosphere, the Loeb proposal, and Landry's lack of previous support for sailing events. Colin Sykes, 309 Aberdeen, expressed his concern about the payment of the required bonds, the carnival atmosphere, the scope of the project, and the revenue conflicts that could arise from having more than one restaurant in that location. Alan Dinn, 206 Leming, as a member of the Watershore Advisory Committee he no longer supports the Landry's proposal because the lease payment does not equal the bond payment and there is not enough parking allocated. Mr. Dinn offered an alternate suggestion to let Landry's develop North Beach, let Mr. Loeb develop the S. Wharf and send a new, more specific RFP based on actual utilization of the Marina. (Maria Ramos left at 6:45 p.m.) Harvey Grossman, 249 Purl, expressed his belief that the estimated increase in tourism isn't realistic, and that the City will not be pleased with the way Landry's would operate the Marina. Marcie Taylor, 5 Hewitt, presented a report by an independent CPA showing different financial figures than the Landry's presentation. Margaret Thornton, 6717 Pharaoh, noted her concerns with fair market value, the City's expense for the project, the carnival atmosphere, law suits and adjudications against Landry's. Eileen Parr, 3409 Floyd, a 69" generation Corpus Christian expressed her concern about developing buildings along Ocean Dr. Jeanne Adams, 215 Louisiana, has been in Corpus Christi for 75 years and expressed her concern about the previous FEMA ruling affecting our flood insurance. George Flood, 201 Chenoweth, stated he agreed with all the previous points and is not in favor of the Landry's proposal. Mary Jo Brauscomb, 4500 Ocean Dr., suggested other downtown development by Landry's and expressed her concern with the carnival atmosphere. Fern McKenzie, 5900 Hinman, has been a resident since 1941 and does not want the T-Heads developed. She suggests Landry's develop North Beach instead. Frank Hankins, 721 Crestview Dr., expressed his concern that stability of the large rides in storm weather was not addressed in the MOU. He also requested answers to the questions before Council makes their decision. Trian Sevbu, 1050 Plaza Del Rey, expressed his concern that the City would loose a long time image of the waterfront. He feels this is a bad financial deal for the City and suggests we look for other sources of Marina money. Jim Whitworth, 36 Lakeshore, Dr., was born here in 1941, He expressed his concern about the noise level of the Landry's project and that the marina would lose its tranquility and beauty. V Sylvia Whitworth, 36 Lakeshore, Dr., came to Corpus Christi in 1948. Ms. Whitworth expressed her concern about available parking for boat owners and suggested the Landry's project be moved to North Beach. Connie Vallie, 302 Waverly Dr., has been in Corpus Christi for 30 years. She stated the proposed decor of the project was not tasteful and expressed concern in changing the well know scenery of our Marina. Sheldon Schroeder, 1010 Peerman PI., is a local architect who feels the RFP was too vague, therefore the MOU is too vague and we should back up to do this right or not do it at all. Jerry Vaughn, 913 Miramar, has been a marina tenant for about 18 years who states the tenants have paid their rent but the City has deferred repairs. Therefore, the marina is in bad shape. Mr. Vaughn does not believe the noise and general atmosphere of the Landry's project will encourage visiting boaters to our marina. Joe O'Brien, 4130 Pompano PI., does not believe this contract should be over 20 years and expressed his concern about turning the public bayfront access into a private property atmosphere. Mr. O'Brien expressed his concern about the past financial management by the City Council and therefore does not want the Council to have final approval of this proposal. Mary Beth Nelson, 2721 Erie Dr., noted the MOU designates cutting a channel through the breakwater and dredging a passage into the ship channel. She expresses concern about cutting the breakwater and inquires about the maintenance cost that has not been address. Ms. Nelson exampled lawsuits and out of court settlements against the Landry's corporation. Maxine Smith, 9831 Daisy Dr., does not want large structures developed on the L or T Heads to obstruct the natural view. She also expressed her concern about restrictions on the Loeb development and parking limitations. Charles Allen, 5026 Moultrie, was raised here and expressed concern with the parking and water taxi service as noted in the MOU. Additionally, he does not agree with a carnival functioning in a working marina. Paul Earls,4433 Dolphin, stated he does not agree with the City turning over the marina to a private business. The City should ban together for the common good of the citizens. Dorothy Corcoran, 734 Chase Dr., feels a long term lease is undesirable, the restaurants on SPID would suffer, and the L and T Heads were designed as park land, not as a carnival area. Michael McCutchion, 203 Jackson, was born and raised in Corpus Christi and has been a Marina tenant and Yacht Club member. He feels the marina would be drastically altered and believes the MOU should be modified. Billy Holmes, 14117 Jackfish, has been in the family boat business, Gulf Coast Marine, for 49 years, had his request to be on the Stakeholders Committee denied but attended all meetings. He states that boat trailer use has not been addressed. He expressed concern for citizens and visitors who use the marina to launch their boats and would like to see this activity protected if the Landry's MOU moves ahead. Van Husaman, 223 Oleander, showed pictures of the Landry's operation at Kema, expressed his disagreement with the carnival atmosphere and stated he feels this project to be a second rate operation that mostly benefits Landry's. He asked that the Park & Recreation Advisory Committee be a gatekeeper for the City and reject this proposal. John Torrey, 7253 Youpan Dr., feels this proposal does not reflect what Corpus Christi is all about. He feels the Columbus Ships should be developed as an asset to the community. Ramond Hasker, 1813 Wallace, has been in Corpus Christi since 1960 and feels this project is a white elephant. Members of the committee reviewed and discussed the consensus of the public concerns. Mr. Noe participated in this discussion. Final discussion and recommendation to the Council will be completed at the September meeting. B. Old Business—none C. New Business — Review of prospective member applications and recommendation to the City Secretary. • it V Sandy Billish read the notice from the City Secretary's office that gave the member's term expirations. All members eligible requested re-appointment. l The Committee reviewed all applications and recommended Michelle Thomas and Karen Woodard as new members to the City Secretary's office. Staff will prepare the appropriate notification for the City Secretary. VI. COMMITTEE/STAFF REPORTS: A. Director's Report- none B. Green Committee Liaison's Report Davie Cissna requested information about nation wide golf rounds played and general golfing statistics. Mr. Cissna reported that the Green Committee disagrees with the fee increase especially for the Junior Division. He requests this be reviewed at the October meeting with a budget impact report. Mr. Cissna stated the tournament software is not being used and asked who is responsible for maintaining tournament data. It was clarified that the software and computers were installed for the tournament personnel to use. Staff was not to provide this service. Mr. Cissna reported that the surcharge improvement project signs were up and the work is progressing. Mr. Cissna said that there was voting balance concern expressed regarding the Youth Golf Liaison position. Discussion was held and the item was tabled until the September meeting. Billy Olivarez stated everyone he's spoken to is not happy with the fee increases. However, they are very pleased that the new golf cart fleet is expected by mid-September. It was announced that Red Taylor will be retiring on September 30th and the Golf Management position will be moved to the General Fund account. C. Friends of the Parks Sandra Billish noted the committee met and is continuing their work. D. Arbor Festival - none E. Program Development Committee - none F. Park Development Committee Davie Cissna reported the committee met and requests updates on the Operations Analysis, Department Policy and Procedures, comparative study with other similar cities, the Park & Recreation Master Plan and the HP Garcia Master Plan. It was noted that the Budget Committee is working on a Park & Recreation funding separate from the General Fund project. VII. COMMITTEE CONCERNS: Concerns were previously given. VIII. REQUEST FOR INFORMATION,AGENDA ITEMS: - none IX. ADJOURNMENT: As there was no further business, Rome Gregorio made a motion to adjourn the meeting at 9:10 p.m. Davie Cissna seconded. The motion passed. David Ondrias, Acting Director Park and Recreation