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HomeMy WebLinkAboutMinutes City Council - 06/26/2007I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Regular Meeting of the Corpus Christi City Council of June 26, 2007, which were approved by the City Council on July 10, 2007. WITNESSETH MY HAND AND SEAL, on this the 10th day of July, 2007. Armando Chapa City Secretary SEAL MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council M ting Jure 26, 2007 - 10:00 a.m. PRESENT Mayor Henry Garrett Mayor Pro Tem Nelda Martinez Council M mb rs: Melody Cooper* Larry Elizondo, Sr. Mike Hummell Bill Kelly Priscilla Leal Michael McCutchon John illlar** *Arrived at 12:06 p.m. **Arrived at 11:23 a.m. City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Dr. Sam Gutierrez of Cornerstone Church and the Pledge of Allegiance to the United States flag was led by Council Member McCutchon. Mayor Garrett called for approval of the minutes of the Retreat meeting ofJun , 2007 and Regular Council meeting of June 19, 2007. A motion was made and passed to approve the minutes as presented. * * * * * * * * *** Mayor Garrett referred to Item 2 and the following board appointment was made: Civil Service Board/Commission Eileen Butler (Reappointed) * * * * * * * * * * Mayor Garrett called for consideration of the consent agenda (items 3 - 10). Mr. Errol Summerlin requested that Item 4 be pulled for individual consideration. Council member Leal requested that Item 6 be pulled for individual consideration, City Secretary Chapa polled the Cuncil for their votes as follows: 3. I I Ti N N . 2007-160 Motion approving a contract with Wells Fargo Merchant Services, LLC, of Melville, NewYoric for establishment of a merchant services account in accordance with Request for Proposal No. B1-0088-07 for an estimated annual expenditure of $107561.65 of which $8,963.47 is budgeted in F 2 -2007. The account will establish credit/debit card service for approximately eleven City revenue collection locations throughout the City. Funding is budgeted in the various using departmental operations budgets. Minutes — Regular ular Coun it Meeting June 26, 2007 — Page 2 The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. 5.a. RESOLUTION NO. 027316 Resolution authorizing the City Manager or his designee to execute an Interlocal Agreement between the City of Corpus Christi and Nueces County to establish terms for the sharing of the 2007 Edward Byrne Justice Assistance Grant (JAG) Program Award. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. 5.b. RESOLUTION NO. 027317 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $236,403 to the United States Department of Justice, Bureau of Justice Assistance, for funding eligible under the FY 2007 Edward Byrne Memorial Justice Assistance Grant, 50 percent of the funds to be distributed to Nueces County under the established Interlocal Agreement. Grant funds will be used for the enhancement of law enforcement efforts by the Police Department and Nueces County. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. 7. RESOLUTION NO. 027319 Resolution authorizing the City Manager or his designee to execute a letter of commitment to provide funding through the Corpus Christi Business and Job Development Corporation in the amount of $135,000 related to the WorkSource of the Coastal Bend grant application for the YouthBuild program to provide affordable housing. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. 8. MOTION NO. 2007-162 Motion authorizing the City Manager or his designee to execute a construction contractwith Advantage Electrical, of Corpus Christi, Texas in the amount of $51 ,900 for the Animal CareNector for Control Alternate Power Project. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye", Cooper and Marez were absent. 9. MOTION NO. 2007-163 Motion authorizing the City Manager or his designee to execute a construction contract with The Anchor Group, Inc. of New Braunfels, Texas in the amount of $68,242 for the Sports Minutes — Regular Council Meeting June 26, 2007 — Page 3 Field Fencing Improvements for the Total Base Bid and Additive Alternate No. 1. (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummel!, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. 10. MOTION N 1 .2007-1 4 Motion authorizing the City Manager or his designee to execute a Real Estate Sales Contract with Robert C. Sanchez and wife, Irma V. Sanchez in the amount of $88,000 plus $1,500 in closing costs and an additional amount not to exceed $22,500 for relocation assistance to cover moving costs and incidental expenses in connection with a replacement dwelling, all for the purchase of fee simple property rights to Parcel 1, described as Lot 15, Block 14, Gardendale 3, with the street address of 4910 Williams Dr., necessary for traffic congestion management (Williams Drive Alternate Access). (BOND ISSUE 2004) The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. Mayor Garrett opened discussion on Item 4 regarding security access gates for the Wastewater Treatment Plants. Errol Summerlin, Texas Grande Legal Aid and representative of the Hillcrest Neighborhood Association, said that if staff had followed the direction of Mayor Mary Rhodes in 1997 to close the Broadway Wastewater Treatment Plant, the purchase of security gates would be unnecessary for that facility. Council Members asked questions regarding the number of gates at the Broadway Treatment Plant and if the purchase of security gates was mandatory. Director of Wastewater Foster Crowell said that the Broadway Plant has two gates and that the security requirement is mandated by the federal government. City Secretary Chapa polled the Council for their votes as follows: 4. MOTION NO. 2007-161 Motion approving the award of security access gates for the Wastewater Treatment Plants with Total Protections Systems, Inc., of Corpus Christi, Texas for a total amount of $765,351.55. Funds are available in the 2007 Wastewater Capital Improvement Program Fund. The foregoing motion was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Are"; Cooper and Marez were absent. Mayor Garrett opened discussion on item 6 regarding a grant application for the FY2007- 2008 Community Youth Development (CYD) Program. Council Member Leal asked questions regarding transportation for the youth of the 78415 area and if the money was guaranteed to go to 78415 residents. Director of Park and Recreation Sally Gavlik stated that the applicants of the grant funding must provide services in the community or provide transportation and that the grant follows strict guidelines and an audit process. Ms. Leal asked staff to provide a presentation or report on how many children are provided service through the 78415 program and program funding. City Secretary Chapa polled the Council for their votes as follows: Minutes — Regular Council Meeting June 26, 2007 — Page 6. RESOLUTION NO. 027318 Resolution authorizing the City Manager or his designee to submit a grant application to serve as the Fiscal Agent for the Texas Department of Family and Protective Services {DEPS} FY 2007-2048 78415 Community Youth Development (CYD) Program, with $500,000 DFPS funding. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Rummell, Kelly, Leal, M Cut h n, and Martinez, voting "Aye"; Cooper and Marez were absent. Mayor Garrett referred to Item 11, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0507-07, Noe Nilo Ortiz: A change of zoning from a "F -1 B11 " One -family Dwelling District with the Island Overlay to a "B -2A/10" Barrier Island Business District with the Island Overlay on property described as Padre Island Section E, Block 2, Lots 19, 20, and 21, located on the corner of Leeward Drive and Aruba Drive. City Secretary Chapa stated that the Planning Commission and staff recommended approval of the "B-2Al1" Barrier island Business District with Island Overlay. Noe Nilo Ortiz, representative of the property owner, thanked the Council for their support of the recommendation. Mr. Kelly made a motion to close the public hearing, seconded by Mr. Elizondo, and passed. Mr. Chapa polled the Council for their votes as follows: 11. ORDINANCEN . 027320 Amending the Zoning Ordinance, upon application by Noe Nilo Ortiz, by changing the zoning map in reference to 0.77 acres out of Padre Island Section E, Block 2, Lots 19, 20, and 21, from "R-113/10" One -family Dwelling District/Island Overlay to "B -2N10" Barrier Island Business District/Island Overlay; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty; providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. Mayor Garrett referred to Item 12, and a motion was made, seconded and passed to open the public hearing on the following zoning case: Case No. 0507-08, yalee Shih: A change of zoning from an "AB" Professional Office District to a "13-1" Neighborhood Business District on property described as Bratton Place, Block 1, Lots 1 through 4 and the northeast fifteen feet of Lot 5, located on the east side of Weber Road, approximately 350 feet south of Brett Street. City Secretary Chapa stated that the Planning Commission and staff recommended approval of a "B -l" Neighborhood Business District. Minutes — Regular Council Meeting June 26, 2007 — Page No one appeared in opposition to the zoning change. Mr. Elizondo made a motion to close the public hearing, seconded by Mr. Kelly, and passed. Mr. Chapa polled the Council forth irvot s as follows: 12. ORDINANCE NO. 027321 Amending the Zoning Ordinance, upon application by Yalee Shih, by changing the zoning map in reference to 0.7 acres (30,705 -square feet) out of Bratton Place, Block 1, Lots 1 through 4 and the northeast fifteen (15) feet of Lot 5 from "A" Professional Office District to "B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty; providing for publication. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Elizondo, Hummel', Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. Council Member Hummel' referred to Item 11 and asked if it was a common practice to rezone a property because the owner is having trouble selling the property. City Planner Shannon Murphy stated that this practice was common as long as the change in zoning was consistent with the future land use map. City Secretary Chapa announced that Item 13 was withdrawn by the applicant. 13. VII I T H D RAW N Amending the Zoning Ordinance, upon application by Share' Zacharias, by changing the map in reference to 0.13 acres (6250 -square feet) out of Del Monte, Block 2, Lot 17, pfoviding a repealer clause; providing a penalty; providing for publication. City Secretary Chapa referred to Item 12, regarding the public hearing on the following zoning case: Case No. 0507-01, tre_m Homes of Texas, L L.C. A change of zoning from a "R -1B" One -family Dwelling District to a "B-1" Neighborhood Business District on property dscribed as 1.93 acres out of a 35.75 acre tract recorded by deed in Volume 1450, Page 535, Nueces County, Texas Deed Records, located on the south side of Up River Road approximately 350 feet from the intersection on Mcg in ie Road. City Secretary Chapa announced that this zoning case had been tabled from June 12, 2007 and the applicant has requested to extend the table until July 24, 2007. Council Member Kelly said that Tuloso-Midway Independent School District will be discussing this item on July 16th and recommended the tabling to allow arrangements by the school district and the property owner. Mr. Kelly made a motion to table until July 24th seconded by Ms. Leal, and passed. 14. TABLED TO JULY 24, 2007 Case No. 0507-01 Extreme_ Homes of _Texas, L_L.S.: A change of zoning from a "R-1 B" On f.ny Dwelling District to a "B-1" Neighborhood Business District on property described e a. + r~ � e ' 2— a Minutes --- Regular Council Meeting June 26, 2007 — Page County, Texas Deed Records, located on the south side of Up River Road approximately 350 feet from the intersection of McKinzie Road. (Tabled on 6/12/07) (REQUEST BY APPLICANT TO TABLE UNTIL 7124107) Mayor Garrett opened discussion on Item 22 regarding a grant application for the enhancement of voice interoperability on the 800 MHz radio System. Assistant Chief Ken Bung referred to a powerpoint presentation including a summary of the grant; a map of the current 800 MHz system; the agencies currently on the radio system; the proposal to include Aransas County, the City of Rockport and the City of Port Aransas Police, Fire, and EMS and the purchase of equipment to enhance the 800 MHz system; a proposed map of the full implementation linking the Coastal Counties* and the request by the City of Corpus Christi. In response to Mayor Garrett, Assistant Chief Bung provided a list of the repeater sites. There were no comments from the audience. City Secretary Ch pa polled the Council for their votes as follows: 22. RESOLUTION NO. 027323 Resolution authorizing the City Manager or his designee to submit a grant application in the amount of $2,017,550 to the United States Department of Justice, Office of Community Oriented Policing Services for funding eligible under the COPS 2007 Technology Program Grant. Funds will be used for the enhancement of voice interoperability on the 800 MHz radio system, with a City match of $672,517, fora total grant application of $2,690,067; and authorizing the City Manager or his designee to apply for, accept, reject, alter or terminate the grant. The foregoing resolution was passed and approved with the following vote: Garrett, Elizondo, Hummell, Kelly, Leal, McCutchon, and Martinez, voting "Aye"; Cooper and Marez were absent. Mayor Garrett announced the executive sessions, which were listed on the agenda as follows: 23. Executive session under Texas Government Code Section 551.071 regarding Arnulfo Garcia v. City of Corpus Christi; Civil Action No. 06-198; in the United States District Court, with possible discussion and action related thereto in open session. The Council went into executive session. The Council returned from executive session. Mayor Garrett referred to Item 15, a presentation on the final report on the 80th Texas Legislative Session. Special Assistant to the City Manager Tom Utter provided a summary of the legislative program including: franchise fees; state hotel tax for beach maintenance; mandated fees; municipal court costs; protection of water rights; transportation; manufactured housing; annexation authority; condemnation authority; redemption periods; CHIPS funding; higher education; crime or emergency service districts; court of record; photographic traffic signal enforcement; dangerous dog bill; air quality; environmental issues; economic development; property tax exemption; delinquent sales tax; and the open meetings act. Minutes — Regular Council Meeting June 26, 2007 — Page 7 Council Members afed questions regarding CHIPS enrollment and the General Land Office using the Bureau of Economic Geology data for future beach maintenance. Tim Brown spoke regarding water issues and Senate Bill 3. Snapper Carr spoke regarding the water debates. Hugo Berlanga spoke regarding the red light system. Todd Hunter said it was an honor to represent the city on legislative issues and pledged to continue. The Mayor and Council Members thanked Tom Utter for his service to the City and assistance with the legislative session. City Manager Noe thanked the delegation including Snapper Carr, Tim Brown, Hugo Berlanga and Todd Hurter. Mr. Noe thanked Mr. Utter for his years of dedication, knowledge and expertise in the legislative program. Mayor Garrett called for petitions from the audience. Carolyn Moon, 4902 Calvin, spoke regarding the cleanliness of the bay and the use of street sweepers. Jack Gordy, 4118 Bray, spoke regarding an article stating that the City is at risk of losing road construction funding because of the use of illegal signs. City Manager Noe said there was no relation between the article and the issue of the signs. J.E. O'Brien, 4130 Pompano, provided a handout from the City's financial statement and spoke regarding the City's total debt and utility increases. John Torrey, 7253 Yaupon Drive, spoke regarding staff's conclusions on Grade 1 and 11 specifications for crushed concrete. Mayor Garrett announced that Item 16, an overview of the Proposed FY2007-2008 Budgets for the Enterprise Funds was postponed. Mayor Garrett referred to Item 17, a presentation by Trademark Property Company regarding the Proposed Re -development of Padre Staples Mali and the Staples Center. Debbie Lindsey -Opel and Jimmy Rodriguez introduced the Trademark representatives and provided a background of the company. Terry R. Monte i, President/CEO President/CEOof Trademark Property Company, referred to a powerpoint presentation including: an overview and purpose of the Trademark Company; examples of Trademark projects; the vision for the revitalization of Padre Staples Mali; community benefits; three scenarios for the community; and the results of a survey. Dr. Ray Perryman, The Perryman an Group, spoke regarding retail development; incentives for retail; cannibalizing the existing retail market; the results of the ERA study; the economic impact of building Crosstown Commons as proposed; the economic impact of upgrading and expanding Padre Staples Mall and the addition of 1.1 million square foot range Crosstown Commons development: and the effects of a Tax Increment Finance (TIF) projections. Stan Ei helbaum, President of Marketing Development, provided a summary of main findings for potential and risk including the following: the challenges of specialty shops; the increase in retail square feet per capita} research on the attempts of two specialty department stores failing or collapsing; economic distress; overexpansion per the market; second stores policies; site of Padre Staples comparable to other sites; problems with the ERA study; market leakage; and the potential and vulnerability of Padre Staples Mall. Mr. Ei h lbaum added that he advised Trademark to consider a non -specialty appropriately sized quality retail project if there is a developer needed for Crosstown Commons. Minutes — Regular Council Meeting June 26, Zoo — Page Council members asked questions regarding whether Crosstown Commons would achieve the status of a regional shopping center at the 1.1 million square foot range; sales leakage; the reason why Padre Staples Mali could not survive if the relocations are capped at 30%; why existing companies could not retain quality tenants; the use of TIF funds; tenants that anchor large shopping centers; the Tax incentive Policy; cannibalization of sales tax from neighboring municipalities and existing markets; percentage rate of return, personal income and retail sales per capita; TIF proposals that include on-site infrastructure; the recommended percentage of retail space relocation; best geographic retail location for Corpus Christi; the retail square feet per capita; anchor stores located at Padre Staples; specialty retailing; the population required for Corpus Christi to accommodate two major shopping centers and anchors of other Trademark projects. illlayor Garrett referred to item 18, a presentation by Economics Research Associates (ERA) regarding the Economic impact of Retail/Mixed Use Development Projects proposed by CBL Hawk ins Group. Dick Starr, Senior Vice President of ERA, provided a brief summary of the Economic Impact Assessment of the proposed Crosstown Commons mall based on thmarket data currently available including the impacts projected; the Crosstown Commons visitor activities and attractions; goals for increasing employment opportunities, tourism, enhanced quality of life, traffic issues, and other related economic priorities; and the economic impacts including the building program, operating program for sales tax and property tax, and other tax revenues. Council members asked questions regarding the factors that determine the projections of retail sales dollars; the factors of the project that will draw new retailers and customers; capturing of sales leakage; if Crosstown Commons has to have one or more anchors from Padre Staples Mall to be a successful enterprise; the attractions data; the determination of a department store; if Padre Staples Mali could survive as a viable shopping center if Crosstown Commons is built; traffic issues impact on South Padre Island Drive; the retail sales tax impact; the estimated Crosstown Commons annual property taxes; the net amount of job growth; population expansion of the metropolitan statistical area; net economic gain for the future; the dimensions of the completed project; the site build -out expectations; the impact of the analysis should the market dictate the development; multiplier effects of a retail center; the perimeters of a TIF zone; the revenue split; and the percent of sales from existing market. * * * * * * * * * * * * Mayor Garrett opened discussion on Item 19 regarding the City of Corpus Christi Tax incentive Policy. Irma Caballero, Director of Economic Development, referred to a powerpoint presentation on the redrafted policy including policy sections; applicability; guiding principals including the addition of Section H. regarding employment of an undocumented worker); other taxing entities; the initial review; requirements of new large retail projects, large projects and redevelopment; city review; financial requirements other policy considerations and fees. Ms. Caballero added that the Small Business Policy would be provided to council at a later date. Council members asked questions regarding the cap on the incentive payment at 15%; proposals not exceeding 25 years; the City's protection if bond payments are not made; policy consideration for contractors that pay higher than the local average; the establishment of a relocation percentage; monitoring the compliance requirements of the goals and utilization of local contractors and suppliers; the entity that will determine relocation percentage; the defining of off-site infrastructure; the creation of the local government corporation, obligation of bonds and bond capacity; a definition of relocation that excludes small business; the checks and balances of the TIF; incentive requirements; net economic impact; the developer's pro forma; performance requirements; audit and monitoring procedures; the Public Improvement District; the timeframe for relocation; and second stores. Minutes — Regular Council Meeting June 26, 2007 — Page 9 Mayor Garrett called for comments from the audience. Charlie Torres, Coastal Bend Union Council, said the union passed a resolution in support of the Crosstown Commons development and the use of local contractors and craftsmen. Tom Iegly, Bay Area Bicycles, spoke in opposition of a TIF incentive. Mike Moore spoke in support of Padre Staples Mall and slowing down the process. Margo Moore, 7401 Holly, spoke regarding the relocation of existing retail. Rick Leiter, Marketing Director of Padre Staples hall, provided definitions from the International Council of Shopping Center's website and asked to slow down the process. Hal George, 5350 S. Staples, asked the Council to slow the process down to receive sufficient public input. Hugo Berlanga, asked the Council to slow down the process. Beth Mills, Bourbon Street Candy Company, spoke in support of slowing down the process and delaying the vote for at least 30 days. Caitlin Bevly spoke regarding the TIF policy and asked the Council to slur down the process. Roy Moore spoke regarding the relocation of retail stores and the use of tax incentives. Amanda Sanchez, 5392 County Road 73A, spoke in support of Padre Staples Mall and provided the Council with comment cards from shoppers. Joe Ortiz, 3718 Mendenhall, spoke in support of the TIF policy, the Crosstown Commons project, and minority participation for the project. Butch Escobedo, 3 Great Lakes, expressed his concerns regarding new and existing business, on-site development and a TIF for small businesses. Dr. Nick Adame asked the Council to slow down the process and look at the impact to small businesses. Carol Scott, 338 Bermuda, spoke in support of Padre Staples Mali and expressed concern to the policy including the financial comparison, relocation, and the local government corporation. Susie Luna Saldana, 4710 Hake', spoke in support of City growth. Victoria Brown, Weingarten Realty Investors, spoke regarding cannibalization of existing retail. Abel Alonzo, 1701 Thames, spoke regarding economic development and improving the quality of life. Arnold Gonzales asked the Council to slow down the process and delay the issue. Devita Bates, 3121 Bourgogre, spoke regarding the confusion of the TIF policy. Pauletta Scheinder, 10614 Shiloh Lane, spoke regarding anchors preventing the renovation of the mall and asked the council to slow down the decision of the policy. Leon Loeb, 921 N. chaparral, spoke regarding the subsidizing of new retail development anmajor projects and the fairness to smaii business owners. David Engel, 230 Amistad, spoke in support of City growth, the development of Crosstown Commons and redevelopment of Padre staples Mall. Charles Kaffie, 2717 Ocean Drive, asked the Council not to delay the vote and miss the opportunity for City growth. Wes Bevly, 3368 FM2292, spoke in support of Padre staples Mali. Lynn Allison asked the Council to slow down the process and review the information provided by the experts. Debbie Lindsey -Opel, 15862 Cuttysark, spoke in support of City growth but asked the Council to slow down the process. John Kelley, 3621 Austin, said that retail is not economic development unless it is small business and stated that the plan for economic development is much bigger than the TIF proposal. Jimmy Rodriguez, 4002 Up River Road, spoke regarding crafting a vision for small businesses and supporting local retail. Sean Bevly, asked the Council to slow down and review the policy so that both the Crosstown Commons and Padre staples Mali revitalization can occur. David Loeb, spoke regarding subsidizing the TIF, the disadvantage to small businesses, future investments and slowing down the process. Danita West, 13941 Man °'War, spoke in opposition of the TIF and slowing down the process. Carolyn Moon spoke regarding the effects of the project and slowing down the process. George Clower, 415 Starr, spoke regarding relocation percentage, protection of existing retail and the polling information provided. Dr. Nancy Vera, President of LULAC #4444, spoke in support of a TIF. John Bell, 13750 Primavera, spoke in support of the project and the need for a policy. Eloy Minutes — Regular Council Meeting June 26, 2007 — Page 10 Salazar, 8206 Campodolcino, ino, spoke in support for the policy, growth and a policy for small business but asked the Council to slow down the process. Reagen Brown spoke regarding net economic growth, small business, and creating a fair TIF policy. Roland Garza encouraged the Council to work through the process and make it happen. A motion was made by Mr. Kelly to amend Section XII. Other Policy Considerations, to include priority consideration for construction companies that pay employees at or above the median wage in Corpus Christi. The motion was seconded by Ms. Cooper and passed unanimously. A motion was made by Council Member Kelly to amend Section VI1. Requirements for New Large Retail Projects, (0), to include that the developer agrees that no more than 15% of the total gross floor area of the retail space in the project may come from any one retail center. The motion was seconded by Ms. Cooper and passed unanimously. A motion was made by Dr. McCutchon to amend Section VIII. Requirements for Redevelopment Projects, (F), to include that the developer agrees that no more than 15% of the total gross floor area of the retail space in the project may come from any one retail center. The motion was seconded by Mr. Kelly and passed unanimously. A motion was made by Ms. Leal to amend Section XIV. Fee, by deleting the option that the City at its discretion may consider waiving a portion of the fee upon request, seconded by Mr. Marez. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Elizondo, Kelly, Leal, Marez, and Martinez, voting "Aye"; Hummel) and McCutchon voting "No". A motion was made by Mr. Hummel' to amend Section VII. Requirements for New Large Retail Projects, (0), and Section VIII. Requirements entsforRedevelopment Projects, (F), to reduce the relocation percentage from 30 % to 20%, seconded by Mr. Elizondo. After a brief discussion, Mr. Hummel! withd rew his motion. A motion was made by Dr. McCutchon to amend Section VII. Requirements for New Large Retail Projects, (0), and Section VIII. Requirements for Redevelopment Projects, (F), to reduce the relocation percentage to 10% with no penalty and reduce the value of the TIF by 10% with each 10% increase in relocation percentage. The motion failed for a lack of second. A motion was made by Mr. Hummell to amend Section VII. Requirements for New Large Retail Projects, (0), and Section VIII. Requirements edevelopment Projets, (F), to reduce the relocation percentage from 30 % to not to exceed 20%, seconded by Mr. Elizondo. A brief discussion ensued. City Secretary Chapa polled the Council for their votes as follows: The foregoing motion failed by the following vote: Elizondo, Hummel), and McCutchon, voting "Aye"; Garrett, Cooper, Leal, Kelly, Marez, and Martinez, voting "No" A motion was made by Dr. McCutchon to amend Section IV. Guiding Principles for Consideration of Applications for Tax Incentives, (1), by adding the word "incremental" before sales tax collections and before increases in property tax revenues. Motion was seconded by Mr. Hummel) and passed unanimously. A motion was made by Dr. McCutchon to change Section VII. Requirements for New Large Retail Projects, (H), and Section VIII. Requirements nts for Redevelopment Projects, (E), to reflect the wording in the draft preliminary infrastructure financing agreement as detailed in Section I., E. "in the Minutes — Regular Council Meetirg June 26, 2007 — Page 11 event that the new store in the Project is larger than the closed store, the percentage of Gross Floor Area (as such term is defined in industry standards) which represents the increase shall not be considered part of the Relocation but shall be treated as new store sales." The motion was seconded by Mr. Hummel) and passed unanimously. A motion was made by Dr. McCutchon t amend Section XI. Financial Requirements (F), by adding the word "incremental" remental" before sales tax collections and before increases in property tax revenues. Motion was seconded by Ms. Martinez and passed unanimously. City Secretary Chapa polled the Council for their votes as follows: 19. RESOLUTION NO. 027322 Resolution approving the City of Corpus Christi Tax Incentive Policy for large retail/mixed use development and redevelopment. The foregoing resolution was passed and approved as amended with the following vote: Garrett, Cooper, Elizondo, Hummell, Kelly, Leal, McCutchon, Mare , and Martinez, voting "Aye". Mayor Garrett opened discussion on Items 20 and 21 regarding the Preliminary Infrastructure Financing Agreement and Development Agreement with Crosstown Commons, LLC. Assistant City Manager Oscar Martinez provided a review of the contents of the agreement including an overview of the agreement; key terms of the agreement; key provisions; the financing structure; the TiF Bond Schedule; projected growth of property values; taxable sales projections; and sales taxable revenue projections. Council members asked questions regarding the total adjustable taxable sales; inflation adjustments; the new sales on non -relocated stores; the ERA study on the retail pull from existing market retail; and addressing inremental increases in the policy. John Bell, Attorney for Crosstown Commons, provided a list of proposed new terms including changing the revenue split t 7%-33%; setting a cap of new retail space with proportionate steps for lesser development; store closure periods; procedures for calculating square feet of relocation stores; maximum of relocations remaining at 30%; and TiF projections with relocations for year 2015. Council members asked questions regarding the release of properly space for store closures; the opening period; the proportionate step formula; the issuance and sale of bonds; the cap for relocations; the size ofthe regional centert develop synergy tdraw from a larger market; reduction of square footage; TIF projections; second store sales; net new sales revenue; projection of utilities revenue; historical information from State Comptrollers Office; if additional partners will be receiving revenue; the revenue split; the definition of a local contractor; the location of Coastal Crosstown Drive; the scale of TiF values by square footage as defined by the opening; relocation percentage; when the Public Improvement District would take affect; and the base ad valorem taxes excluded from the T1F. Council Member Kelly announced a Town Hall meeting on Wednesday, June 26th at 6:00 p.m. at West Guth Park to discuss the Coliseum and the potential redevelopment on the bayfront around the Coliseum. Minutes — Regular Council Meeting June 26, 2007 -- Page 12 Mayor Garrett called for comments from the audience. Hal George spoke regarding a protection for release of property and the sharing of tax increments. Hugo Berlanga spoke regarding a draft development agreement prepared by staff in February 2007. Debbie Lindsey -Opel spoke regarding adopting the policy as related to the TIF and limiting public comment. Carol Scott spoke regarding the retail space cap and the relocation allowance. Susie Luna Saldana said she was interested in what is best for the City. Terry Montesi spoke regarding the policy amendment for relocation from anyone center and the TIF policy applying to the Crosstown Commons project. Bill Morris spoke regarding relocations by municipalities. Shawn Bevly spoke regarding the relocation of stores. Craig Murphy spoke regarding the thresholds of the agreement and the proportionate steps. Roland Gaona spoke regarding the relocation percentage. A motion was made by Mr. Hummel' that retailers classified as a relocation be required by contract to cooperate with their prior landlord in fulfilling and/or terminating requirements of their lease before relocating to Crosstown Commons. Motion was seconded by Mr. Kelly and passed unanimously. A motion was made by Ms. Martinez to adopt the Proposed New Terms submitted by John Bell, Attorney for Crosstown Commons and include them in the Infrastructure Agreement, Section!, (B), City's Limited Obligation of Reimbursement; to change the relocation years from two years to three years in Section 1, (E), Definition of Relocations, immediately following opening of the project and does not open another location elsewhere in the City; define "Opening Date" as when the developer submits an application to the City showing the project is complete per Section 1, (B); change the revenue split to 67%-33%; and directing the city Attorney and Bond Counsel to clean-up and incorporate these changes into the document. A brief discussion ensued. The motion was seconded by Council Member Leal and passed; McCutchon voting "No". A motion was made by Mr. Kelly to amend Section 1, (G) Limitation on Relocations, to include that the developer agrees that no more than 15% of the total gross floor area of the retail space in the project may come from any one retail center. After a brief discussion, Mr. Kelly withdrew his motion. A motion was made by Dr. McCutchon to table the Crosstown Commons items, seconded by Mr. Elizondo. After a brief discussion, Dr. McCutchon withdrew his motion. A motion was made by Council Member Kelly to amend Section 1, (G) Limitations on Relocations, that in the event 1,400,000 square feet is built, there will be a 15% project cap of that square footage from any one other retail center. Motion was seconded by Ms. Cooper and passed unanimously. A motion was made by Ms. Martinez to clarify by adding the 90% occupancy to the previous amendment in Section 1, (E) Definition of Relocations. Motion was seconded by Ms. Cooper and passed unanimously. A motion was made by Mr. Hummel) directing staff to make the document compatible with the changes made by other council members as well as the proposed new terms submitted by John Bell on behalf of CBL. Motion was seconded by Ms. Martinez and passed unanimously. A motion was made by Dr. McCutchon to cap relocations to the facility at 30% up to 1,500,000 square feet of build out and at 20% beyond 1,500,000 square feet. Motion failed for a lack of second. Minute — Regular Cun it Meeting June 26, 2007 — Page 13 City Secretary Chapa polled the Council for their votes as follows: 20. 11 TI N NO. 2007-165 Motion authorizing the City Manager to execute a Preliminary Infrastructure Financing Agreement with Crosstown Commons, LLC (Developer) to set forth terms, conditions and obligations by which the Developer and the City intent to participate in the development of a lifestyle and power center to e know as "Crosstown Commons" to be developed on an approximate 227 acre tract north of Holly Road between Crosstown Expressway frontage road and Greenwood Drive. The foregoing motion was passed and approved as amended with the following vote: Garrett, Cooper, Kelly, Leal, Marez, and Martinez, voting "Aye"; Elizondo, Hummell, and McCutchon, voting "No". 21. MOTION NO. 2007-1 Motion authorizing the City Manager to execute a Development Agreement with Crosstown Commons, LLC, (Developer), to establish development requirements for Crosstowm Commons, a proposed mixed use development located north of Holly Road between Crosstown Expressway frontage road and Greenwood Drive. The foregoing motion was passed and approved with the following vote: Garrett, Cooper, Kelly, Leal, Marez, and Martinez, voting 'Aye"; Elizondo, Hummell, and McCutchon, v ting There being no further business to come before the Council, Mayor Garrett adjourned the Council meeting at 11:52 p.m. on June 26, 2007.