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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. * * * * * * * * * * * * * DZ/rr