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HomeMy WebLinkAboutMinutes City Council - 03/06/1986 - Joint Workshopu /t Minutes Special City Council Workshop Meeting Held Jointly with Marina Board and Park & Recreation Board City of Corpus Christi March 6, 1986 Convention Center — Room 203B 4:15 p.m. City Council Mayor Luther Jones David Berlanga Leo Guerrero Joe McComb Bill Pruet Mary Pat Slavik Linda Strong Marina Board Hank Snyder, Chairman Sam Allen Bob Almendarez John Stensland Quentin Cook Charles West Charlene Forest Scott Skinner Robert Gross Mayor Jones called the meeting to order at 4:19 p.m purpose of the meeting was to consider a presentation by an alternate plan for development in the Bayfront area. Park Board Charles Blum, Chairman Dr. Bill Colson JoAnne McNeill Rene Gaytan Joe Martinez Al Parrish Joe Rodriguez Vic Menard Randy De Lay Guadalupe Valdez . , and stated that the Bayfront Associates on A motion was made by Council Member Pruet that Mayor and Council Member Mendez' absence be excused; second Slavik; and passed unanimously. The members of the Park Board and Marina Board then and Mayor Jones introduced the staff. Pro Tem Best's absence ed by Council Member introduced themselves Mayor Jones read a letter from Colonel Gordon Clark, District Engineer, Corps of Engineers in regard to the permit application for an eight—acre waterfront recreation and tourism complex which stated that " I am finalizing action by withdrawing your application without prejudice to your rights to reinstate processing at a future date." Mayor Jones called on Mr. Joe Gardner, Bayfront Associates. Mr. Gardner began his presentation by stating that sight had been lost as to why any type of project was proposed for the bayfront; the Convention Center was opened in 1981, but there was nothing for the tourists to do once they were in Corpus Christi; and he feels that this project will extend the stay of tourists. He stated that in August of '82 a request for a proposal was drawn to build a landmass project; a number of public hearings were held; community organizations and clubs were addressed; and there was a great deal of controversy. MICROFILMED .inutes Special City Council Workshop March 6, 1986 Page 2 Mr. Gardner stated that since the Aquarium was not to be a part of the project, he was faced with an alternative; i.e., proceed with the project without all of the controversial type shops and reduce the size, but the controversy continued anyway. He stated that the new proposal will have no buildings in the bay, but he proposes to create a breakwater park and marina facility. Mr. Gardner thanked Assistant City Manager Tom Utter and the staff for working on this proposal; he stated that staff has spoken to opponents and proponents of the project; he feels they will be satisfied with the plan he is presenting today; and he is present to receive a response from the Council as to whether or not to proceed with the project. He emphasized that this is an economically crucial project for the City. He stated that the proposed project would remove all commercial structures from the water and build a breakwater park with a one-way circular drive; within that harbor, complete a marina facility with 400 to 425 boat slips; and the Highway Department is willing to work for the relocation of I.H. 37, which would allow Bayfront Associates to lease and use City land for the retail center. He stated that the revenues to the City would be lower because the project will be located on land. Mr. Gardner stated that the waterfront festival market would contain approximately 90,000 to 110,000 square feet, 30,000 square feet of major restaurant and food service, 60,000 square feet of retail lease space, and it will be located between Shoreline Drive, Belton, and Aubrey Streets, requiring the rerouting of IH 37. In response to a question from Mayor Jones, Mr. Gardner stated that the Corps has the majority of the information they need, but an application would be needed; it could take the form of a revised application or a new application; the engineer's drawings of the breakwater are complete; and he feels the permit should be filed as quickly as possible, even before an ordinance is considered. Mayor Jones asked for comments from the staff. Acting City Manager Briones stated that the Council had requested a presentation by Bayfront Associates before the Park and Marina Board; Bayfront Associates needs an indication that the Council is interested in this idea; they stated that a letter signed by the Mayor would suffice; and the Council needs to decide today whether or not they support the concept presented today. If the Council decides they do want to support this, the staff would present a letter for the Mayor's signature and advise the developer to continue to proceed with the project; the City would then amend the lease and resubmit or amend the application before the Corps of Engineers. Mr. Hal George, City Attorney, stated that the staff submitted a letter on March 4 regarding the Corps of Engineers letter; the Corps will take no further action on the pending permit; the letter indicates there is no prejudice to proceed; and a new or amended application may be submitted. finutes Special City Council Workshop March 6, 1986 Page 3 Assistant City Manager Tom Utter stated that he has spoken with proponents and opponents of this project; in terms of this project, the staff had proposed the rerouting of Shoreline; and the Highway Department has indicated they would be willing to work with the staff on this. He stated that the terms and conditions of the contract have been discussed, but a contract is not available at this time, although it will be similar to the original contract. He stated that even though the rate of return will be somewhat less, he feels the project is economically viable. Council Member McComb mentioned the possibility of creating a master plan for the area from the Old Courthouse to the breakwater park. Mr. Utter stated that this has not been considered. Council Member Pruet requested information regarding the rate of return. Mr. Utter stated that based on the Laventhol/Horwath study and an input/output model, the rate for the first 20 years would be approximately $25 million; other taxes were approximately $15 million; a full analysis has not been performed, but he feels confident that the sales would be reduced by 10% resulting in a 20% reduction in the rate of return. He stated that in terms of the project, the cost of construction of the commercial area, because of the rerouting, would be $4.5 million. Mr. Utter then explained the rate of return on the invested capital. Council Member Strong questioned the meaning of the term " without prejudice" as used in the Corps' letter and stated that it is her understanding that a new or amended application could be filed, and she inquired if the staff had considered the legal status of amending the current contract. Mr. George stated that the existing agreement can be amended. Mrs. Strong inquired as to what steps should be taken by the staff to satisfy the requirements of the permit, with an amended agreement. Mr. George stated that there would be public comment to the Corps of Engineers, but he does not know if it would require a public hearing by the Council. He stated that the time frame would be approximately 60 to 90 days. In response to a question from Council Member Berlanga, Mr. Utter stated that additional activity in this area makes the Old Courthouse a better project. Mr. Utter explained that the first block off Shoreline is owned by the City, and the second block is owned by the State. He also stated that the staff would not want to harm in any fashion Sunfish Island, and this project would not affect this island. Council Member Guerrero stated that originally the Council was told that the project could not be done on land; that it was not economically feasible; and he inquired as to what has changed to make this feasible now. inutes Special City Council Workshop March 6, 1986 Page 4 Mr. Utter stated that even though the retail area is on land, it is still connected to water activity, thus making it feasible but also reducing the gross sales. He elaborated that by having the slips and park across the street, it recaptures some of the lost activity. He emphasized that by not having water activity, the project would not be viable. In response to a question from Mr. Guerrero, Mr. Utter stated that the land facility and the water park would be connected by some type of crosswalk or possibly an overhead crossing. Mr. Utter also stated that the Council would not be liable if the project failed. Council Member Slavik stated that she would like a written opinion regarding why the 1984 proposal did not require a referendum vote on the project, adding that she considers this a new project. Mr. Jay Doegey, Assistant City Attorney, stated that it did not require a referendum because it was an amendment to the existing contract; the lease is current now; the term of the lease will not be changed; and an amendment does not require a referendum. In response to Mrs. Slavik's questions, Mr. Doegey stated that regardless of the change, it does not require a referendum because the same property is still being leased for the same purpose. Council Member Slavik again stated that she feels this is a major change and requires a referendum, and Mr. Doegey repeated that the demised premises is the same; it is part of the same area that was to be originally leased. Mr. Doegey emphasized that it does not require a referendum. Mrs. Slavik inquired if the staff had addressed this concern, and Mr. Doegey stated that Mrs. Slavik has raised the same point before and the staff responded at that time. Mr. George explained that the City would be leasing the bottom of the bay. Mayor Jones called on members of the Park Board to make comments. Mr. Charles Blum, Chairman, stated that the main concern of the public is to have no obstructions of the view on Shoreline, and with this plan, there are no obstructions. Mr. Randy De Lay stated that the City has a commitment to the hotel and tourist industry and he feels this concept deserves merit and exploration. Dr. Bill Colson stated that this project is needed in this area and he feels the retail area would be away from the tidal area in case of a storm; the marina facility is needed; and the tourist need something to do when they stay downtown. iinutes Special City Council Workshop March 6, 1986 Page 5 Mr. Guadalupe Valdez inquired as to the cost of the project, if it will create employment, and if the concept would be feasible in 20 years. Mr. Briones stated that at this time, those questions cannot be answered until an analysis is done. Mr. Rene Gaytan stated that the concept should be considered and that the City needs something to entertain the tourists. Mr. Joe Rodriguez inquired if there would be landscaping, and Mr. Terry Dopson, Director of Park and Recreation, stated that with the relocation of I.H. 37, landscaping could be done. Mayor Jones called on members of the Marina Board. Mr. Quentin Cook stated that the project is a terrific idea; it could possibly result in two projects; and he is in favor of it. Mr. Bob Almendarez stated that he is in favor of the concept of the break water park and inquired about the location of the boat slips. Mr. Utter explained where the boat slips would be located and the manner in which they would be constructed. Mr. Robert Gross stated that he was in favor of the landmass; these facilities would be better protected from storms; the project has merit; and it deserves the right to be pursued. Mr. Sam Allen expressed the opinion that since the City would be leasing the land, they should advertise for competitive bids. Mr. George stated that he is not aware of any legal requirement that the land must be bid, noting that all of the land would be leased. In response to Mr. Allen's question, Mr. Utter stated that the project would meet all code requirements for parking. Mr. Allen inquired if the existing rock groin would be removed, and Mr. Dopson stated that he could not answer that question, but stated that the side is still to be constructed as originally planned with riprap all the way around. Mr. Utter interjected that Captain Boomer's would not be moved. Mrs. Charlene Forest stated that she was in favor of the landmass; she is in favor of this project; boat slips are needed in the Marina; and the construction of the slips will not cost the City. Mr. Scott Skinner stated that he was opposed to the landmass, but feels this project is much more acceptable. .inutes Special City Council Workshop March 6, 1986 Page 6 Mr. Charles West stated that in his opinion the Council should approve the concept for the project. He stated this would be a great benefit to the City. Mr. John Stensland stated that the drawings of the project look good, but the details of the construction of the slips should be discussed by the Council when a final decision is made. Mr. Hank Snyder, Chairman, stated that he is in favor of the project and most of the board members are also in favor. In response to a question from Mayor Jones, Mr. Utter stated that the break water park would cost $4.5 million to construct and the boat slips would cost $1.75 million. Mayor Jones called for comments from the audience. Mrs. Pat Duaine, 4909 Branscomb, stated that she would like for this to be the point where everyone makes peace with one another; the Coalition was opposed to the landmass because they love the City; and the people just want a voice in this matter. Mr. Nick Reyna, General Manager, Sheraton -Marina, stated that he represents the Executive Board of the Corpus Christi Tourist Bureau and the Hotel -Motel Association. Mr. Reyna stated that the motel industry employs unskilled people, students, women, and minorities; an amenity is needed in this City; and he strongly urged the Council to support the concept of this project. Mr. Joe Gardner stated that he has seen divisiveness in the City and urged the Council to take this opportunity to heal the wounds and get back into a more harmonious stance. Mayor Jones read the following letter that would be given to Bayfront Associates: "Bayfront Associates, Ltd. % Nueces Development Company 5934 S. Staples, Suite 204 Corpus Christi, TX 78413 Attention: Joe Gardner Dear Sirs: "On March 6, 1986, Bayfront Associates presented to the City Council, in preliminary state, an amendment to the conceptual design of the project under Ordinance 17753, as amended. mutes Special City Council Workshop March 6, 1986 Page 7 "The City Council has reviewed this proposal and is generally supportive of it. The Council has informally directed staff to proceed with further development of this concept. The plans are not, of course, in final form and have not been submitted as such. The Council, therefore, has not formally considered the proposal. "The Council does informally agree to proceed with development of a formal amendment to the plans and specifications in accordance with the presentation of Bayfront to amend the design to a breakwater park with related boat slips with no commercial development. The commercial area is to be moved to the first two blocks of I.H. 37. "Final approval is contingent upon satisfactory amendment of the existing contract, a new contract on the commercial area and approval by all requisite governmental authorities in addition to the City of Corpus Christi." A motion was made by Council Member Strong to adopt the letter read by Mayor Jones and seconded by Council Member Pruet. Mr. Pruet requested that an addition be made to the letter to note that the meeting held by the City Council was in conjunction with the Marina and Park Board, and those two boards have been supportive. Mrs. Strong indicated her concurrence. Council Member Slavik stated she will abstain because she is concerned that a referendum will not be held on the portion to be constructed in the water. She stated that the Bayfront belongs to the citizens and that a referendum should be held on the portion to be built in the water. She stated that deed restrictions should be placed so as not to allow construction of commercial buildings on the portion to be in the water and she asked the staff to investigate this. Council Member McComb stated that extensive consideration should be given regarding the whole corridor leading to the Old Courthouse, and perhaps the staff could present a master plan for this area. The motion to accept the letter passed as follows: Jones, Berlanga, Guerrero, McComb, Pruet, and Strong voting "aye"; Best and Mendez absent; and Slavik abstaining. There being no further business to come before the Council, on motion by Council Member Berlanga, seconded by Council Member Pruet and passed unanimously, the Special Workshop Meeting was adjourned at 6:04 p.m., March 6, 1986. ltd _nut es Special City Council Workshop March 6, 1986 Page 8 I HEREBY CERTIFY that the foregoing is a true Minutes of the Special Council Workshop Meeting of the March 6, 1986, which were approved by the City Council WITNESSETH MY HAND AND SEAL, this the Stt day of and correct copy of the City of Corpus Christi of on March 18, 1986. Ar do Chapa City Secretary City of Corpus Christi, Texas , 1986.