HomeMy WebLinkAboutMinutes City Council - 07/13/1983 - Regular ReconvenedMINUTES
CITY OF CORPUS CHRISTI, TEXAS
RECONVENED REGULAR COUNCIL MEETING
JULY 13, 1983
7:30 P.M.
BAYFRONT PLAZA CONVENTION CENTER, ROOM 203B
PRESENT:
Mayor Luther Jones
Mayor Pro Tem Betty N. Turner
Council Members:
Jack K. Dumphy
Herbert Hawkins, Jr.
Dr. Charles W. Kennedy, Jr.
Cliff Zarsky
ABSENT:
Council Member Eeb Culley
City Manager Edward Martin
City Attorney J. Bruce Aycock
City Secretary Bill G. Read
Mayor Luther Jones reconvened the Regular Council Meeting at 7:31 p.m.
City Secretary Bill G. Read verified that a quorum of the Council and the
necessary Charter Officers were present to conduct a legally constituted
meeting.
Mayor Jones then requested that Assistant City Manager Tom Utter review
the plans for the proposed land mass.
Mr. Utter explained that the City had contemplated a land mass since 1939.
He continued by stating that the City solicited proposals for private
development of a land mass; two development groups submitted proposals; and
the City Council selected Bayfront Associates, who had proposed an 8 -acre land
mass north of the Peoples Street T -Head which would be similar to the existing
land masses except in its shape and size. He stated that it will extend 500'
along Shoreline Boulevard and 700' into the water. Mr. Utter displayed a
drawing of the proposed land mass and stated that it will include boat slips on
it as well as on the Peoples Street T -Head. He explained that at this time
wave action prohibits the City from doing anything on the north side of Peoples
Street T -Head but the land new mass would provide harborage to protect the
Peoples Street T -Head.
M1CROFJLMED
SEP 191984
Minutes •
Special Council Meeting
July 13, 1983
Page 2
Mr. Utter continued by stating that Bayfront Associates would be given a
long-term lease for the retail space with water -oriented types of businesses in a
three-story structure. Mr. Utter pointed out that the top of the seawall is 14
feet high and the finished first floor elevation would have to be 12 feet and it
would, therefore, appear to be only a two-story building since the first floor
would be for parking. He continued by stating that there are plans for the
aquarium to be located on the new land mass rather than on the T -Head and
the contractor will have an option to construct an additional 41 -acres adjacent
to the land mass within a few years and it, too, would be one-half for
commercial and one-half for public use. He stated that if the aquarium does
not go into this area, the City would establish public use for one-half of the
proposed land mass. He assured the audience that the parking would be free
and all of the facilities would be open to the public. He also pointed out that
the City of Corpus Christi would not be liable for any funds but the City would
agree to utilize various tax-exempt bonding methods if it seems feasible. He
noted that this will be located near the Hershey and Marriott Hotels.
Mayor Jones then called for comments from the audience and requested that
they limit their remarks to three minutes.
Mr. Garron Dean, President of the Corpus Christi Board of Realtors, read
a statement endorsing the project from the Board of Realtors. He stated that
they unanimously supported the proposed land mass because of the following
reasons: (1) it will create jobs; (2) generate income; (3) will help the
economy of the City of Corpus Christi; and he concluded by urging expediency
in approving the plans and the agreement.
Mr. Jack Graham mentioned that he formerly resided in Bishop where all of
the citizens were opposed to any new development and consequently that town
has never grown. He urged that the Council approve the land mass as soon as
possible.
Mr. Jack Gordy, 5803 Everhart, referred to Corpus Christi Beach and
alleged that a former City Council gave away part of the beach. He implied
that the City Council is now planning to give away this land for sixty years.
Mr. Gordy expressed opposition to the tax increment zone which only benefits
certain people and stated that he was of the opinion that this entire plan is just
to beautify the bayfront and the homeowners will have to pay the taxes to
support it. He then suggested that the Council is not really listening to the
people and urged that this matter be placed on a referendum for people to vote
on.
Dr. Dean Banks, 225 Waverly, expressed approval of a Fisherman's Wharf
near the Convention Center. He stated that he felt that the land mass would
be better if it is located near the Convention Center and that it should be less
commercial. Dr. Banks then questioned the plans for boat slips to be
constructed since those boat slips will probably not be available to the general
public even though hundreds of people have been on the waiting lists for
years. He suggested that the Council delay action on the land mass and allow
the next Council to act on it.
Minutes
Special Council Meeting
July 13, 1983
Page 3
Mrs. Alicia Gallegos -Gomez, 1017 Harrison, stated that she supports the
new land mass and feels that it has had adequate study but stated that she has
several questions: (1) why it is not economically feasible to build it further
north near the Convention Center which is quiet and would not have traffic
congestion; (2) she is concerned about the excessive height of the commercial
enterprise; (3) maintenance -- questioned whether the developers would be
responsible for the maintenance for sixty years; (4) objected to their having
an option to add an additional 41 acres in future years; and (5) the public
space apparently is going to the aquarium and she questioned that aspect
because she felt that the aquarium should be located on Corpus Christi Beach.
She then suggested that a study be made to determine if it is economically
feasible to build the land mass further north near the Convention Center.
Mr. George Perez, 4814 Goldeneye, expressed the opinion that this would
be a great asset to the City of Corpus Christi and the City would gain a lot of
attention and tourists would be attracted to the City. He urged immediate
approval of the land mass.
Mr. Donald Greene displayed an aerial photograph of the area to
demonstrate the view of the land mass in relation to the entire bayfront. He
stated that he is in favor of quality development in the right way but
expressed concern about three items connected with the landfill -- (1) the
swiftness to get this approved before the moratorium; (2) the terms of the
lease; (3) the location of the land mass. He stated that he is particularly
concerned about the sixty -year lease until the year 2,043 and questioned the
large amount of land proposed to be leased to Bayfront Associates, particularly
since this developer will have the right to all future development of the
bayfront. Mr. Greene pointed out that the land mass in any other location
would still create jobs and he suggested that the City not enter into an
acireement for our bayfront so quickly but that further study be made. He also
agreed that a Bayfront Commission should be appointed to study the entire
matter.
Mr. Kim Dinsmoor
mass on the bayfront.
for many years and
conventioneers have an
conventions in Corpus
approve the land mass
Hershey Hotels almost
of the Marriott Hotel expressed approval of the land
He stated that he has been in the convention business
pointed out that regardless of facilities, unless
attraction for entertainment, they will not come to the
Christi. He pointed out that after the City voted to
and the bayfront development plan, the Marriott and
immediately decided to spend millions of dollars to
construct facilities in Corpus Christi. He reminded the Council of all the tax
money that is generated by hotels through the hotel -motel tax and sales tax and
he felt that the proposed land mass would benefit the City in many ways and
provide a large source of income.
Mr. Ellis Warren, 6318 Senator Drive, urged expediency in approving the
land mass.
Minutes
Special Council Meeting
July 13, 1983
Page 4
Mr. Ronald McCee, 434 Linnett Street, stated that he is in favor of the
land mass because of the jobs and taxes that will be generated but he agreed
that this Council is moving too fast to approve this and suggested that it be
delayed until the new Council is elected because this Council is catering to
private enterprise.
Mr. Dick Swantner, 210 Bayshore, stated that he has a business located
on Shoreline and he is in favor of the preservation of the bayfront and
shoreline but he was of the opinion that the land mass is one thing that would
really help the City of Corpus Christi.
Mr. Dick Sowash, 6130 Wooldridge, stated that he is a new resident of
Corpus Christi and he came here from a "no -growth" area in West Texas. He
stated that he selected Corpus Christi as his home because of its vital nature
and the warmth of the people and he felt that Corpus Christi is really on the
right track with the new development. He urged that the City Council move
forward with speed because he felt that the tourist trade should be sought to
generate more income for the City.
Mrs. Mary Pat Slavik stated that she had previously presented a petition
to the City Council in March and she would like to make this a definite request
as a result of that petition for a referendum vote on the land mass. She stated
that the petition she had submitted represented 1 ,958 voters and she felt that
no new construction on the bay should be allowed without the vote of the
people.
Mayor Jones commented that the heading on the petition she submitted was
"Don't Wreck the Bayfront" and he questioned the legality of its being
instrumental in calling for a referendum. Mrs. Slavik stated that it was
prepared by attorneys in Corpus Christi and the people who signed it were
encouraged to read the petition carefully before doing so. She reiterated that
they are calling for a public referendum and although they did not ask for
action when the petition was presented in March, they are now calling for a
referendum.
Mr. Hank Snyder, 3332 Ocean Drive, expressed the opinion that the City
Council was the body to decide on the land mass. He objected to the request
by citizens that every decision should be presented to the voters because after
all, the City Council Members were elected by the people and they should be
the ones to make the decision.
Dr. Jack Best, 225 Bayshore, stated that although he thought the land
mass was a good idea, he felt that the height plan for the commercial enterprise
is going to obscure the view. He stated that he also felt that it is frightening
that Bayfront Associates will have control of any additional land masses and
urged that the Council be very careful about what they sign because the City
will have to live with it for sixty years.
Minutes
Special Council Meeting
July 13, 1983
Page 5
Mr. Woody Jones, 209 Cape Henry, stated that he has seen this City grow
and commended the Council for their efforts in developing the bayfront but
expressed grave concern that the entire bayfront will be given to Bayfront
Associates. He stated that he, too, is concerned about the height of the
proposed building because it will detract from the beauty of the shoreline. He
suggested that the land mass be enlarged and the height of the buildings
lowered because he agreed with Dr. Best that in signing the contract, they
should be very careful that they are actually doing something good for the City
of Corpus Christi rather than something that they will regret later.
Mayor Jones stated that he had not been advised that Bayfront Associates
will have rights to the entire bayfront.
Assistant City Manager Utter explained that in his memorandum of July
8th, he proposed that within the first five years of the land mass' existence,
the City would not authorize any future commercial development and Bayfront
Associates could approach this City for further development within the next five
years if the City decided to go out for further bids. He explained that the
tenth draft of the contract omits the phrase, "but within the following five
years" and there is no noncompetitive proposal assured.
Mayor Jones commented that the word, moratorium, had been referred to
and he stated that it was his understanding that the moratorium was eliminated
at the time the City Charter was amended a few years ago. He stated that
there are limitations and asked one of the attorneys to explain.
Assistant City Attorney John Bell explained that the City Charter was
amended to allow the Council to approve zoning or expenditures with five
affirmative votes during the 30 -day period prior to election.
Mr. Jimmy Lyles, Executive Vice President of the Chamber of Commerce
and representing the Board of Directors, stated that the Chamber has endorsed
the concept of the land mass and they feel that the proposed project will be an
asset to the bayfront and the City. He encouraged the Council to move
forward with the plan.
Mr. Ed Notzon, 3216 Reid Drive, expressed the opinion that the City is
giving away fine land for sixty years and he objected to the exclusive use of
the bayfront by this group.
Mr. Frank Hankins, 721 Crestview, noted that the environmental
organizations are of the opinion that Corpus Christi should encourage more
tourism. He questioned if the next City Council decides not to honor this
agreement what the penalty would be for the City of Corpus Christi.
Mr. Utter replied that there is no penalty because there is no provision
except for nonperformance by either party and if the City does not move
forward on this after the lease agreement is signed, the Bayfront Associates
would have some cause for damages against the City.
Minutes
Special Council Meeting
July 13, 1983
Page 6
Mayor Pro Tem Turner again urged the appointment of a Bayfront
Commission which could have helped this situation.
Mr. Jim Boggs, 4701 Donegal, suggested that all of the alternatives
suggested during the public hearing be considered but urged that the seawall
project which was started many years ago be completed by the installation of
this land mass. He stated that Mr. Larry Tucker joins him in urging that the
land mass be developed.
Mr. Emmett Rice, Jr., 3402 Lawnview, pointed out that no one can predict
what will happen sixty years from now and the City has no guarantee from this
group noting that if they default or if the land mass is destroyed, there is no
guarantee that it will be reconstructed.
Mr. S. R. Alexander, 133 Alta Plaza, objected to the reference to
desecration of the bayfront. He stated that some people had indicated that the
view will be lost if this structure is completed and pointed out that this land
mass will extend over 500' along the Shoreline and he was of the opinion that
we will be gaining a view because this is a good location. He pointed out that
if it is moved north, the bay bottom at that location is not as stable. He urged
that the project be approved as soon as possible.
Mrs. Pat Duaine expressed concern that evidently the Council is not aware
of the provision in the contract that this group will have first option on all of
the development on the bayfront. She also expressed the opinion that the
reinvestment plan proposes that all of the taxes be reinvested in the downtown
area and she objected to this. Mrs. Duaine also expressed opposition to the
height of the building that is proposed to be located on the land mass and
expressed the opinion that the aquarium should be located on Corpus Christi
Beach.
Mr. Tom Hunt, Sr, expressed opposition to the land mass. He suggested
that the Council allow the next Council to make the decision or have this listed
as an item on the ballot so that the people could decide.
Mr. Bill Ogletree, 610 Bradshaw, stated that he is associated with
Bayfront Associates and is an engineer on the project but he is speaking now
as a private citizen. He stated that there will be no financial problem for the
City of Corpus Christi if the land mass is constructed. He pointed out that the
developers would be unable to obtain a loan from bankers if the project were
not economically feasible and that the bankers would not lend the money if they
did not feel that the project would be successful. He urged that the City
Council make a decision as soon as possible.
Mr. Rob Hamon, 454 Chase, spoke in favor of the land mass as it is
planned.
Minutes '
Special Council Meeting
July 13, 1983
Page 7
Mrs. Catherine Van Kleech, 5034 Cascade Drive, spoke in favor of the
land mass pointing out that the City Council was elected by the people and they
have the responsibility to act for the citizens.
Mr. Gene Tackett pointed out that he was of the opinion that the lines
have been drawn between those for and opposed to the land mass. He stated
that there are a lot of ways to say no and one way is to delay a project until it
becomes obsolete. He, too, pointed out that Bayfront Associates could not
obtain financing if they did not have a good project that would be successful
and he assured the Council that he had every confidence in the people who are
associated with Bayfront Associates.
Mr. David Engel, 417 Cole, expressed the opinion that this is one of the
most progressive projects that this City has ever known. He mentioned the
delays that were encountered when the Convention Center was planned and now
the citizens have a facility that they can be proud of. He pointed out that the
land mass could provide a focal point for conventioneers and visitors to the
City. He urged that as representatives of the citizens, the Council should
approve this project.
Mr. Brent Herndon, 5329 St. Andrews, stated that he totally endorses the
land mass. He pointed out that this City is in a very progressive climate at
this time and he felt that the land mass will complement the Convention Center
and the new hotels.
Mr. Lloyd Miller, 4134 Pompano, expressed opposition to the location of the
proposed land mass stating that he would prefer that it be near the Convention
Center.
Mr. W. L. Sanderson, 2410 Rainy River, noted that the citizens had
elected the Council Members to make decisions and urged that the project be
approved.
Mrs. Sarah Graham, Associate of Group I Real Estate, referred to the fact
that people had indicated that there was not sufficient notice of the public
hearings but she felt that a lot of notice was given in the newspaper about the
hearings as well as in the Legal Notices. She pointed out that the number of
people in favor of this project far outnumber those who are opposed. She
stated that she serves as president of the Corpus Christi Convention and
Tourist Bureau and stated that they are in favor of this project. She pointed
out that the conventioneers and tourists spend a great deal of money and this
is distributed all over Nueces County.
Mr. Ted Stevens, 513 Dolphin, expressed support of the land mass at its
proposed location.
Mr. Jon Boquet, 726 Ponder, stated that he is in support of the land
mass.
Minutes
Special Council Meeting
July 13, 1983
Page 8
Also speaking in support of the land mass was Mr. Fred Dotts, 4018 Santa
Fe.
Mrs. Betty Brandesky, 4017 Cork, inquired about the aquarium and the
acreage set aside for it. She reminded the Council that they had previoursly
approved the site for the aquarium on the Peoples Street T -Head and yet the
developers are requesting that the City pay for a site for the privately fundted
aquarium.
Mayor Jones pointed out to Mrs. Brandesky that the costs will be paidi ifor
by taxes generated by the commercial enterprises through the reinvestment zone
and there will be no money taken from any general tax fund.
Mr. Billy Dickman, 1014 Karnak, stated that he sees no reason to detley
approval of the land mass because bankers would not be willing to invest iin
this project if they did not think that it was economically feasible. He pohmted
out that it will revitalize the downtown area of the City.
This concluded the remarks from the public.
Mayor Jones stated that there is on the agenda an item which is the first
reading of the ordinance to approve the lease with Bayfront Associates.. He
expressed appreciation to all of the citizens who had spoken on this issue and
noted that there is always controversy on any large development. He
expressed the opinion that the City needs to capitalize on the assets of the
bayfront and assured the members of the audience that there will be an
opportunity for the Council, in the future, to make changes or reverse the land
mass project. He stated that he will vote in favor of the first reading of the
ordinance.
Council Member Kennedy stated that he was of the opinion that this its a
good project; it has been underway for a long time; the two groups who
submitted prcposals on this project had faith in this City and both groups were
local citizens. He stated that he felt that this Council should move forward on
the project because it will enhance the bayfront and the entire City.
Council Member Zarsky asked for the Staff's opinion as to whether or not
the City has the best deal they possibly can according to the terms of the Lease
agreement.
Mr. Utter stated that the Staff is confident that the City has the best deal
that can be made since the developer has to take the risk of constructing the
land mass. He stated that the City will receive 1% of the gross sales from the
commercial enterprise and the developers will return the public area to the
City. He pointed out that sales tax also will be generated and the City will
probably make a great deal of money on the project. He assured the Cowmcil
that the Staff has made a thorough study of the finances included in the lease,
have discussed it with representatives of Laventhol-Horwath and they hiaawe
studied many facilities of this caliber. He expressed the opinion that a higTher
Minutes '
Special Council Meeting
July 13, 1983
Page 9
rate of return to the City would not allow an adequate breakpoint for the
developer to recoup his expenses.
Council Member Zarsky suggested that a shorter term with an option to
purchase be included in the agreement. He also stated that no bonds will be
issued except through one of the City's nonprofit organizations and there would
be no liability on the part of the City.
Council Member Zarsky continued by stating his preference would be to
see the City install a project such as this but it is not likely that a bond issue
would be approved for this purpose, therefore, he felt that this is the only
way that the City can acquire such a facility and he would vote in favor of it.
Council Member Hawkins expressed the opinion that the project should be
submitted to the public in a referendum. He stated that he has a problem
because there is no right for cancellation and the City might be in a position to
pay damages. He stated that for this reason, he could not vote in favor of
this. He also pointed out that none of the Council Members seem to understand
the long document and he could not vote on something he did not understand.
He pointed out that he was of the opinion that the City should have the
opportunity to renegotiate in the future. He reiterated that there are too many
details that the Council is not aware of that are included in the contract.
Council Member Dumphy reminded the other members that he has been in
finance business and real estate for many years. He pointed out that everyone
has been concerned about the taxpayers. He stated that he is not too happy
with the contract as it is today and he could almost guarantee that the Council
will make changes prior to the third reading. He admitted that he does not
understand all of the items included in the agreement but he is in favor of the
project because it will provide jobs for the community; it will provide
entertainment for people who visit this City; the citizens will benefit from the
land mass; and additional taxes will be brought into the City which will greatly
reduce the burden that the taxpayers have right now. He also reminded the
people in the audience that the land mass or the Bayfront Plan were recently
adopted and this might have been the catalyst that enticed the Marriott and
Hershey Hotels to locate in this City. He stated that he will vote for this
ordinance on three readings and hope that it will become a reality.
Mayor Pro Tem Turner expressed appreciation to all of the people who had
attended the public hearing and assured them that the Council will consider all
of their statements during the next three weeks. Mrs. Turner expressed her
enthusiasm for the beautiful land mass that will be constructed in a nostalgic
style with plenty of parking either there or nearby and stated that she was of
the opinion that many citizens will enjoy these amenities as well as the tourists
and she was of the opinion that it will greatly enhance the bayfront rather than
detract from it. She stated that she felt that if the land mass is constructed
properly and carefully controlled, there would be no problems with the project.
Minutes
Special Council Meeting
July 13, 1983
Page 10
Council Member Zarsky questioned the apparent inconsistency in allowing
the private enterprise company to construct boat slips on the publicly owned
Peoples Street T -Head.
Mr. Utter explained that there is a long list of people waiting for boat
slips and it will be a simple task for the developer to put in the boat slips on
the south side of the T -Head rather than having the City wait for a bond
issue. He assured the Council that the City will be in charge of the leasing of
the boat slips on the T -Heads, whether they are privately owned or publicly
owned.
Council Member Zarsky stated that he would be more in favor of the
private developer having all of the boat slips north of the T -Head with the City
having a provision for a 30 -year lease with the option to buy back at the end
of that time. He expressed the opinion that a 60 -year lease would tie up the
City for too long.
Council Member Hawkins also stated that he supported the idea of a land
mass but he also questioned the 60 -year commitment to be made by a City
Council two weeks before ar. election. He pointed out that the delay of a few
weeks or a few months would make no difference and again pointed out that this
Council should not vote on something that they do not understand.
Mrs. Gallegos -Gomez requested permission to speak again and Mayor Jones
granted her that privilege. She inquired if the general tax funds were the
same thing as the tax incremental financing, and Mr. Utter replied that they
were not. Mrs. Gallegos -Gomez then inquired how the $1.4 million will be
available if the aquarium is not located on the land mass.
Assistant City Manager Utter explained that this is a package deal; the
aquarium and the commercial enterprise would have a relationship; and if the
aquarium is not located there, that portion of the land would be for public use
anyway.
Another member of the audience indicated a desire to speak again and
Council Member Zarsky suggested that if the Mayor had allowed one person to
make another statement, he should extend the same courtesy to other members
of the audience who had spoken previously.
Mrs. Betty Brandesky inquired of Mr. Utter that since he had stated that
this was a package deal, what the consequences would be if the aquarium
organization is unable to raise funds within the two-year period.
Mr. Utter assured her that if the aquarium is not located on the land
mass, the City is reserving that land for other public use and hopefully it
would be heavily landscaped and similar to the T -Heads.
Minutes '
Special Council Meeting
July 13, 1983
Page 11
Dr. Jack Best objected to the Council's using the public land of the
Peoples Street T -Head for privately owned boat slips. He urged that the
Council read the agreement very carefully and weigh the results of the terms of
the agreement.
A motion was made by Council Member Kennedy that the hearing be closed,
seconded by Mayor Pro Tem Turner Turner and passed unanimously.
City Secretary Read briefly reviewed the wording on the first reading of
the ordinance granting the lease with Bayfront Associates; he polled the Council
for their votes; and the following ordinance was passed on first reading:
FIRST READING:
AUTHORIZING A 60 -YEAR LEASE AGREEMENT WITH BAYFRONT ASSOCIATES,
LTD., FOR THE DEVELOPMENT OF A NEW LAND MASS NORTH OF THE
PEOPLES STREET T -HEAD AND RELATED BOAT SLIPS.
The foregoing ordinance was read for the first time and passed to its second
reading by the following vote: Jones, Turner, Dumphy, Kennedy and Zarsky
voting, "Aye"; Hawkins, "Nay"; and Gulley, "absent".
There being no further business to come before the Council, on motion by
Council Member Kennedy, seconded by Council Member Hawkins and passed
unanimously, the Regular Council Meeting was adjourned at 10:28 p.m., July
13, 1983.
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