HomeMy WebLinkAboutMinutes Watershore And Beach Advisory Committee - 04/17/2002 - Special Minutes
Special Called Meeting
Water/Shore Advisory Committee
Thursday,April 17,2002
Members Present: Tom Anderson, Frank Beck, Alan Dinn (Chairman), Dr. Oscar Garcia,
Dan Leyendecker, Steven Moody(Vice Chairman), Dr. JoAnna Mott, Terri Nicolau and
Roy Pell
Staff Present: George Noe, Deputy City Manager, David Ondrias, Assistant Director for
Operations, Peter M. Davidson, Marina _Superintendent, Rene Garza, Marina Field
Supervisor and Benita Brunner,Management Aide
Call to Order: Chairman Dinn thanked the Bay Yacht Club for use of the facility. He
called the special called meeting of the Water/Shore Advisory Committee to order at 5:32
p.m. in the Bay Yacht Club, Lawrence. Street T-Head and the Pledge of Allegiance was
recited.
Presentations and/or Public Comment: Yielding to Mr. Pell's suggestion, Chairman Dinn
announced that public comments would follow the presentations.
Landry's Restaurants, Inc. — Jeff Cantwell, Vice President of Development presented an
enhanced/modified version of the Texas Boardwalk Project that proposes a restaurant/
entertainment-based facility. Consolidated marina operations and management would be
located on the Coopers Alley L-Head (CAL). Landry's will investigate how best to
improve/rebuild facilities, add areas for viewing boating activities (permanent or temporary
structures) and a water taxi (or other method for moving people from the CAL and Peoples
Street T-Head [PST] to the Lawrence Street T-Head [LST]). Four restaurants would be on
the LST (existing Joe's Crabshack, relocating Landry's and building the Rainforest Cafe
and Aquarium Restaurant) which would also have public improvements (amusements/
rides, fountains, sitting areas, landscaping, band/public performance/festival areas,
permanent marina tenant/public facilities [restrooms, showers, laundry], possibly a small
meeting space, a water taxi landing and designated parking for marina tenants. The PST
would house public parking,designated parking for marina tenants/businesses, staging areas
for viewing marina activities, small kiosks for art/craft vendors, a water taxi landing,marina
tenant/public facilities and improvements to the fisherman's wharf Landry's would
investigate how best to limit traffic on LST (signage, security, handicap/mass transit drop
off,valet service, etc.)in order to separate the public from tenant access. Landry's proposes
amenities to include one large meeting room (smaller ones on eachlandmass), weather
station/technical support, an education center for boaters, upgraded services i.e. fuel, oil
recycling, etc., enhancing stores i.e. the bait stand, snack bar, etc., satellite/cable, phone
connections throughout the property and at slips, dump sites, pump out facilities, upgraded
electrical service to accommodate larger boats, hurricane fastenings, enhancing overall
security through the use of lighting, card/gate access at finger piers, card access at
designated parking areas/boater facilities,meeting rooms, etc., some pier replacement/repair
(i.e. replacing/reconfiguring R-Pier location with floating docks), a monitored security
Water/Shore Advisory Committee Meeting -1- SCAN N ED April 17,2002
camera system,increased parking, driveway improvements and on-site management.
International Marina Group — Jeff Trion, In-House Counsel for Marina
International/International Marina Group. stated they continue to propose marina
management and maximizing primarily marina uses through marina improvements to
restrooms, additional/larger slips, a fisherman's wharf, boardwalks, kiosks, dry stack
storage, funding'for a Columbus Ship exhibit, a marina headquarters (weather station,.
internet access, etc.), promotion of sailing/racing events, development of tenant use
buildings, boat dealerships, family recreation/entertainment areas, possibly reconfiguring
the landmasses and partnering with interested parties to provide restaurants, etc.
Corradino Group -Jeff Lago and Rolando Yanez, Director of Architecture presented their
proposal to enhance the mixed use of the landmasses through improved marina facilities
including larger slips, a wastewater system to service larger vessels, covered slips, dry
storage, marina offices relocation, parking and boater facilities. The PST would include a
boardwalk on the resort/entertainment island. The LST would be used for residential,
marina, public parks and restaurant operations. The CAL would include enhanced marina
functions i.e. a boat repair facility, maritime center, enclosed boat slips, boat sales, etc.
Corradino proposesuseof approximately $18 Million of Tax Increment Funding (TIF) for -
buildings, a parking garage and the boardwalk; they will finance the remainder of the
project.
Jerry Vaughn expressed hope that the Committee wouldtake a-stand one way or another.
Andy Ficken commented that many tenants are dissatisfied since Landry's took over the
Kemah marina (raised rates, restaurant noise and support services disturbing boaters); that
the local area's population will not support the proposed facility; that a"circus" atmosphere
would draw the wrong type of people; and parking concerns. Larry Frank expressed
concern that the atmosphere would become"carnival"; suggested the issue be delayed until
the City decides what it wants and can negotiate from that standpoint; that delay will not
stop a good project. Pete Essington commented that he and a large number of citizens do
not want a circus/carnival on the bayfront; that the Landry's proposal was better suited for
North Beach and either of the others would better suit the Marina. Clarence Clark
commented against the Landry's proposal adding that when Captain Bob Conner was
provided three parking spaces in Kemah, his business disappeared. John Holmgreen
commented the involved real estate is the mostvaluable in the City; that there is a need for
wider, public debate that can not be accomplished within established project timelines. Joe
Knolle commented there is a great deal at stake and the issue requires careful consideration.
Brad Stokes commented that local slip rates have continued to increase; that boaters have
, subsidized non-boating related activities i.e. Miradore maintenance, the new bait stand
facility, etc. yet nothing-gets done for the boaters; that boaters need a break; and asked
whether any proposer was aware of Renewal Community Funding. Nathan Clark
commented that he would not endorse any proposers until he could be assured of issues
related to businesses such as:those his family has run in the Marina for 50 years. Frances
Gandy urged the Committee to request that the City Council not act hastily regarding the
issue. Steve Harrison commented a marina could not be built just anywhere; that the City
did not need"buc days by the sea"; thatif the project would be tacky at the end of Hewitt
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Drive, it would be tacky in the Marina. Tony Hauglum supported marina development;
commented regarding the need for a coherent style (that a carnival doesn't fit in and
restaurants can be located elsewhere); the.City needs to offer boaters what is offered at the
smaller Ingleside marina; and felt each group has indicated their willingness to work with in
order to alleviate concerns expressed by the boating community. The following are
responses to Sylvia Whitworth's inquiry about anticipated rate increases. Landry's
responded their proposal provides for fmancing the development and does not call for slip.
increases except to support normal cost of living because generated revenues will go back
into marina improvements. Corradino responded their proposal has no plans for slip rate
increased beyond what is the normal cost of living. Marina Internationalresponded the
Marina is below the norm; that with improvements, they would anticipate a rate increase
Over a 3-5 year period to bring it up to market and because it would have to pay for
improvements; if the City allows them to receive revenues, that will not happen as quickly
or at all, which is'a negotiating point. Paul Earls supported live aboards and keeping the
Marina as a marina; did not support giving the Marina away; suggested the Committee go
on record against the proposals until the City determines what it wants. Romeo Garcia
expressed concerns about whether or not the_shrimpers would be able to remain in.the
Marina. Brett Kellerman of Landry's reported they had the same negative comments occur
when Landry's proposed taking over in Kemah;that the occupancy dropped from 89 to 72%
three months after Landry's took over the facility;.that upon the only rate increase (8%; still
below market), tenants were offered the opportunity to sign a one year lease extension
without the increase; that the current occupancy is 100%.and there is a waiting list; and
Landry's continues to make improvements to Kemah. 'Jane Stubbs commented that she has
spent over $300,000 on the bait stand; the City has sent her letters indicating her rent is
delinquent when it not; the City letter indicating their interest in buying her out; that the
bait.stand was not indicated on any proposers' plan; that she has a long-term lease and
would like to recoup her expenditures; and that she would like to continue operating the bait
stand. Judy Butler supported the proposals indicating the dire need . for marina
improvements; that the proposers are willing to work with everyone regarding their
concerns; and that the City will not be able to fund required marina improvements.
Discussion followed regarding: (1) if no action is taken regarding the proposals, slip rates
will increase 3--5% annually with no plans for improvements; (2) Marinas International
would seek to sublease sites for commercial developments i.e. restaurants, etc.; managing
capital improvements within the Marina; (3) probable lack of support for a bond project to
provide marina improvements; (4)sidewalk/bulkheading not completed a few years ago and
repairs to areas in front of the steps to be part.of the seawall restoration project; (5) Grants
for a dredging project and LST restroom facility; (6) continuing Marina administration in
temporary facility; (7) there having been no negotiations with any respondent regarding -
taking over debt service; (8) if City Council rejects all proposals, Staff will consider how
best to manage but will probably not make the Marina a separate department; (9)
clarification of proposed use of TIF; (10) matching funds being required to secure Grants;
(11)clarification that the Renewal Community Funding is a tax credit; (12) clarification that
a new TIF would have to be developed because the current one expires in 2004; (13)
$150,000 additional.annual income that might be realized if all slips were filled but that
would not allow for debt service payment; (14)bonds expiring in approximately 2007/2008;
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(15) ventilation systems preventing grease release into windy conditions; (16) concerns
regarding a carnival/circus atmosphere on bayfront; (17) charter provisions requiring a vote
when leases are for more than five years [necessary to allow business to recoup investment];
(18) concern that Marina continues to deteriorate with little/no opportunity to address/fund
needed repairs/improvements; (19) the need for tasteful economic marina development;
(20) the need for revenue generating operations to pay for marina improvements that are
also a win for the developer, the City, the citizens and the boaters: (21) the importance of
taking the first step (selecting with whom to negotiate) in order to move toward a state of
the art marina; and (22) the importance of including someone on the negotiating team that
will strongly represent boating interests. At Mr. Beck's request a show of hands indicated a
majority against Marina privatization.
Discussion Items and Possible Action Thereto: Marina Privatization R.F.P.—The motion
was made by Mr. Pell, seconded by Mr. Leyendecker, that the Committee endorse the
selection of Landry's as the development team with whom to negotiate for.marina
development. Dr. Mott agreed that the Committee needed to go ahead but had reservations
about endorsing a particular proposer. Mr. Pell felt it was important that the Committee
take a stand in making their recommendation to the City Council. Mr. Noe responded to
Mr. Leyendecker that, if negotiations fell through with the selected proposer, the City could
then negotiate with either remaining proposer. Ms. Nicolau that her suggestion was to not
select a specific group but rather the concept of what the Committee wants to see the City
work toward. Mr. Leyendecker commented the Committee should not make their chance
for input ambiguous. Mr. Beck called for the question. The motion passed (5:1) with Ms.
Nicolau voting against. Dr.Mott and Mr.Beck abstained from the vote.
Adjournment: As there was no further business,the meeting was adjourned at 7: 38 p.m.
p,
Peter M.Davidson
Marina Superintendent
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