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HomeMy WebLinkAbout2007-09-27 City Council Special MinutesCITY COUNCIL SPECIAL MEETING SEPTEMBER 27, 2007 The special meeting of the City Council of the City of Apache Junction, Arizona, was held on September 27, 2007, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Insalaco called the meeting to order at 6:00 p.m. ROLL CALL Councilmembers Present:Mayor Insalaco Vice Mayor Eck Councilmember Barker Councilmember Dietz Councilmember Serdy Councilmember Severs Councilmember Wilson Staff Present: Others Present: CALL TO THE PUBLIC City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Development Svcs. Director Brad Steinke Business Advocate Janine Hanna-Solley Economic Dev. Dir. Steve Filipowicz City Prosecutor Mary Ann Coyne Captain Tom Kelly Planning Manager Fred Baker Senior Planner Rudy Esquivias Mayor Insalaco announced that Call to the Public would be for matters that relate to the development and redevelopment of the downtown area. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 1 OF 16 Mr. Todd Olear, 2898 S. Arizona Road, Apache Junction, addressed the council.He was concerned about maintaining the open space the city already has and improving those areas, landscaping in the medians of Apache Trail, Superstition Boulevard and Idaho, making Apache Trail a mixed used corridor, and Central Arizona College building out. Mr. Howard Benyas, 410 S. Lawson Drive, Apache Junction, addressed the council.He thanked the city crews for keeping the medians clean and neat.He was concerned with artwork and dangerous signage being traffic hazards, and preferred the medians be left alone as the Trail is a historic landmark. Ms. Kerni Browning, 5027 E. Hildalgo Street, Apache Junction, addressed the council.She stated they needed a certificate of occupancy for the former Bashas' store that they are turning into a multi -purpose canine companion facility. Mr. Mike Shubic, 6560 E. Casa de Risio, Gold Canyon, addressed the council.He would like to see the city, Central Arizona College and a developer join forces to jump start the downtown development by building a cultural facility to provide studio space for artists, gallery space, office space for white collar professionals, artist -style lofts, a working restaurant/culinary school, art classes and workshops, and an outdoor amphitheater for the performing arts, festivals and community events. Mrs. Joyce Benyas, 410 S. Lawson, Apache Junction, addressed the council.She stated she does not want any signs put in the medians, nor any excess vegetation or any artwork.The median is a water retention area that should remain sparse. Ms. Ariel Ohler, 718 S. Thunderbird, Apache Junction.She represented the Main Street Program.She stated if action is taken now they will be able to draw people into the downtown area from the south.She encouraged strict zoning standards to attract quality businesses to the downtown area, along with incentives, and open space to hold events. Mr. Tony Vehon, P.O. Box 1747, Apache Junction, addressed the council.He was there to represent the Chamber of Commerce as its chairman -elect.He stated for businesses to risk their SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 2 OF 16 resources they hope to return a profit.The Chamber of Commerce wants to be part of this process for economic development in the city. Mr. John Kantowski, 835 W. Windsong, Apache Junction, addressed the council.He thinks they should also look at getting involved in the realty business and starting the development so that the developers will come in.The city needs some entertainment businesses to draw people instead of their having to go to Mesa.He added he would not mind paying more in taxes if it is for the betterment of the community. Councilmember Severs thanked Todd Olear and stated he would like to talk to him as he thinks he has a lot of good ideas.He commented it amazes him how people can go so negative and find something wrong with everything good that we try to do. Councilmember Serdy has come up with an idea that could improve the image and the look of our downtown with the focal point and the medians.He has found a way to do it with volunteers and community involvement, making it at very little cost to the city.Every week he hears people complaining in the paper about it.The amount of negativity he sees from the people in this community amazes him.As long as this keeps happening, they will stay status quo.To him that means staying broke and not improving as a community.They will not see any progress.The comment was made to not mess with our heritage.He asked what heritage, and what they are and who they are.He asked if someone could come to this community, drive through it and see who they are.There is nothing showing what they are.They make fun of the city on the radio daily.It has to end. Everyone must get involved, be positive, and if someone has an idea they should see how they can make it work.He would like to see the negativity stop and the support start. Vice Mayor Eck commented he feels that anything that will happen in the downtown area will come from the combined efforts of the community, the Chamber of Commerce, Main Street, and town halls. Some day these meetings they have gone to will come to fruition. He has gone to the meetings and said the same thing to people, that he does not want to go to meetings and have nothing come from them.The council is actively looking for a developer, and the developers are now actively looking.He thinks that is a SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 3 OF 16 very good indication that something will happen.They have to be prepared to tell them what they are looking for when they get here.That is the key.The city has already got strict design guidelines, incentives and community events.The whole area is under a tax incremental financing plan that is not being utilized.The college is not being utilized enough. Ultimately, it will have to be commercial, residential and have entertainment in order to be the destination point they are looking for.The freeway will happen, but he would like to see something happening now for the downtown before the south area develops.There will be competition.He does not think they will have to worry about the freeway area blossoming any time soon.It will probably be several years.He thanked them all for coming. Councilmember Serdy commented he would like to meet with Mr. and Mr. Benyas and talk to them about their concerns.He has never advocated putting commercial signs out there.The committee on this will be meeting in a few weeks and they need to hear the concerns so that they do not do something stupid out there. Councilmember Severs commented he agreed with Mike Shubic stating they needed to find a destination.They have heard people talk about changing the name of the city.A junction is a stop on the way to somewhere else.He does not want the city to be a stop on the way to somewhere else.He asked if they need to change the name of the city to make that happen.He does not think so.They to change who they are and become the somewhere, the destination.At that time, everyone will be perfectly happy with the name of the city because we will be the somewhere and we will be Apache Junction. Mayor Insalaco asked what the process is for the city to buy land. City Attorney Joel Stern commented they can discuss that when they get into the discussion with staff.The current item is for responses to criticism only on comments from Call to the Public. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 4 OF 16 Councilmember Serdy commented he hates to see Bashas' sitting empty and he would like to see something worthwhile there.He would like to know more about the possible plan. OVERVIEW OF AND DISCUSSION ON ADOPTED PLANS, GUIDELINES, STRATEGIES AND INCENTIVES FOR THE DOWNTOWN AREA )Economic Development Director Steve Filipowicz briefed the council on the item.The briefing included past accomplishments, tools that are available, and projects that have been accomplished or are in the works, including the three redevelopment areas, ingress and egress to the downtown, and current and future governmental offices.He advised Development Services Director Brad Steinke would be briefing them on some areas, he would then take over to explain the incentives in the area, and Assistant City Manager Bryant Powell would finish with Tax Incremental Funding programs. Development Services Director Brad Steinke described the past accomplishments such as the talk with the Urban Land Institute, streamlining the planning and zoning process, creating a brand identity, design discipline, surveying local market needs, creating incentive for college expansion, promoting recreational and artistic activities, providing incentives to developers, creating design guidelines for commercial development for the downtown area, the creation of the Crossroads Redevelopment area and the City Center Zoning District. Economic Development Director Steve Filipowicz commented the design guidelines and dictionary are available on the city website; follow the links from economic development.He commented the incentives for the downtown should support the vision.He briefed the council on the incentives, which include investing dollars, waiving fees, applying for additional grants, and looking for public/private partnerships.The Crossroads Redevelopment Area is the crown jewel of the three redevelopment areas as it is near the city center; it is the one designated as a tax incremental funding district, a mechanism for the city to work together with the SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 5 OF 16 developers to finance public infrastructure.The county, school district and college district are our governmental partners that participate in the fund.The fire district is not allowed by state law to participate.The funds can be used to buy land for public purposes.It removes the land from the tax rolls but it is hopefully recovered by additional value from what is constructed on the land. Assistant City Manager Bryant Powell gave an update to the council on the capital facilities plan and the improvements on Phelps.He stated the Tax Incremental Fund is an annual amount that the city receives; it is an amount the city looks at in terms of issuing debt.They receive about $250,000 annually.One of the downtown improvements from the capital facilities plan is the Phelps Drive improvements.Another part is the focal point.Apache Trail projects that are recent successes are Starbucks, the Fox office complex, and Superstition Harley-Davidson.The road development fee waiver has been used for these developments as an incentive. Economic Development Director Steve Filipowicz briefed the council on pending projects.They are not done deals, but discussions with the developers and the investments they have made in developing their site plans are very encouraging.Cobb's development site is being redeveloped; it is more than just the restaurant.The Spectrum Group is looking at a 30,000 to 40,000 sq.ft. strip center.It will be located between the area of Delaware and the new Starbucks.The road development waiver is weighing in heavily on this development.Additional topics to consider are the impact of the governmental center downtown, public space, and what the city is willing to do in partnerships.He hoped the presentation would serve as a starting point for the visioning. DISCUSSION ON ALTERNATE AND/OR ADDITIONAL PLANS, GUIDELINES, STRATEGIES AND INCENTIVES FOR THE DOWNTOWN AREA )Mayor Insalaco asked what the status is of Central Arizona College. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 6 OF 16 Economic Development Director Steve Filipowicz stated he had a discUssion with Dean Bob Salmon.He has been a key member of the Economic Development Action Planning Team.That team will provide a series of recommendations for an overall community economic development strategy.Central Arizona College is undergoing an organizational restructuring; they will no longer have specialized campus deans that serve as presidents of their individual sites.They are going back to academic deans covering a series of disciplines.They will then travel between the various campuses and have the responsibility for those proponents.Mr. Salmon cannot apply for one of those due to his family situation.He will be retiring at the end of the month. There has been a recent appointment of an Apache Junction resident to the Board of Governors of the college.The city needs to strengthen that relationship and designate a liaison for their meetings.There is a commitment to leaving this site a full -service campus. Mayor Insalaco commented they had heard that it would just be a learning center and everything else would go south. Assistant City Manager Bryant Powell asked if they said anything about having an election. Economic Development Director Steve Filipowicz stated Mr. Salmon was very tactful about not mentioning a potential bond issue which could occur in 2008. Assistant City Manager Bryant Powell asked if there was any commitment. Economic Development Director Steve Filipowicz stated not that he was at liberty to share. Assistant City Manger Bryant Powell asked if Central Arizona College owns land. Economic Development Director Steve Filipowicz stated the college does own 50 to 60 acres by their current facility.It could be another anchor on the Trail SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 7 OF 16 as well as having a key entry off of Idaho.That would start the redevelopment south on Idaho. Vice Mayor Eck commented he believes it goes to the south side of Broadway. Mayor Insalaco asked what the process would be if the city wanted to buy more land. City Attorney Joel Stern stated they would have to find a money source and the council would have to vote on it and approve it in open session.They would not have to have an election. Vice Mayor Eck commented he believed they probably would, though. City Attorney Joel Stern stated that is an option, but they do not have to.If they sell property above a certain amount, which he believes is $450,000, they would have to have an election. Mayor Insalaco asked if the city could buy property for an enterprise; they could not run a business.It would have to be for public space. City Attorney Joel Stern stated the city could buy a piece of property and sell it to a private entity.The city cannot condemn land for a private entity and then have the private entity buy it back for one dollar.That is illegal.The city could also go into business in certain areas.It would be in the proprietary function rather than the governmental function. Councilmember Severs asked if the city could buy a property, erect a building and lease it to someone who wanted to run it. City Attorney Joel Stern stated they can.There is a specific statute that allows that. It involves doing something with the property value itself and the tax mechanism for the property. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 8 OF 16 Councilmember Wilson asked if the property bought by the city would be taken out of the tax rolls. City Attorney Joel Stern stated it could be done either way.If it is leased, there is an option for the property owner not to pay any tax on it.That could go on for 8 years approximately and longer under certain circumstances.They do have options to purchase it, take it off the tax rolls and lease it back to the lessee. Councilmember Severs commented they are thinking in the right direction.The city needs to start something because the landowners and developers are not.The city needs to come up with an entertainment district that has to be unique.It must build our heritage and create a draw.It must be a reason for people to come here.He designs and builds night clubs.He knows how to draw people. That is basically what they need to do in town, to design an area that will draw people to us.If the land is developed down south first, their only hope is to do something that is so unique that it draws people here.They need to buy a section of land but they cannot afford it.They need to come up with a plan that is going to encourage the landowners to give the city a good deal on a small portion of land for the city to develop. It would make it easier for them to sell the land next to it and the rest of the property.If they design something that will draw people to it, the land next to it will sell.Developers will be knocking on their doors to develop the land and they will build according to what the city has started.It will be a domino effect.They need to figure out who they are, where they are at financially, where they are population -wise , and who do they want to be.They need to determine if they want to be somewhere better than they are right now or are they happy with where they are right now.He does not know if the town wants to stay this way forever.There needs to be a break even point where they start getting picky and choosy about what they get in the town.They have created the design guidelines but they have never implemented them.They keep hearing that they cannot do things because they might be challenged.They have a few buildings here that look wonderful, but they keep building these other ones.They showed them the new Cobb's Plaza and the other SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 9 OF 16 ones.What he sees is welcome to every city U.S.A., because it looks just like the projects everywhere else you go.They have not created a vision of who they are in Apache Junction and what they want to be.They must have to build a certain way if they want to build it in our community.They need to start thinking that way.They need to determine how they want it to look or they will never get there. Vice Mayor Eck asked if they gave direction to go forward with design standards and if it is in process. City Attorney Joel Stern stated he believed they did. City Clerk Kathleen Connelly commented she signed a public notice this week to that very effect. Planning Manager Fred Baker stated they will be seeing a proposed ordinance that will incorporate those in a legal manner to be used by everyone. Vice Mayor Eck commented he does not think the city needs to start thinking about purchasing land.At one time he thought they would, but it is finally happening.They talked to a major developer last week and another this week.The floodgate will be opening at any time and they need to be prepared for it.He thinks they have done the things to prepare for that.They need the economic development director and the business advocate continue to let people know who we are, what we are and what we have.The city has one of the only tax incremental funds in the state.He thinks they are moving along in the process.He believes he, like others, anticipated too much too fast.He thought when the downtown property sold that it was being sold to a builder. Mayor Insalaco commented they all thought that. Vice Mayor Eck commented that is the way it was presented.They would have these glamorous SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 10 OF 16 buildings and condos; it does need to be multi -use.He thinks they have taken adequate steps and are right in line.The guidelines are a part of it and they can tell a developer this is what they would like.The original Cobb's that he saw was probably nicer than what he saw this evening, with Cobb's in the center and other buildings around it. Assistant City Manager Bryant Powell stated he has heard a couple of things tonight.One is the design guidelines being moved to design standards, which they are working on.Another is that some of the policies they have been implemented are working. Councilmember Severs commented he is saying that the floodgates are about to open and that is great.Financially it could be wonderful for us. Vice Mayor Eck commented the city has $900,000 in the bank. Assistant City Manager Bryant Powell stated there is about $800,000 in the tax incremental fund.They get about $250,000 annually. Vice Mayor Eck commented the contingency in the budget is about that amount. Assistant City Manager Bryant Powell stated that is correct. Vice Mayor Eck commented they are talking about trying to buy a piece of 100 plus acres.He does not think they would go for it. Councilmember Severs commented there are ways around it.They would go for it.He asked if the floodgates would build what this city needs to create the downtown that people will come to. Vice Mayor Eck commented he thinks that is what they have prepared themselves for. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 11 OF 16 Councilmember Wilson commented businesses look at rooftops and traffic counts.He asked if the city had done a traffic count on Idaho Road in the Crossroads Redevelopment Area and on Old West Highway. Economic Development Director Steve Filipowicz commented public works has a very effective traffic count program.They take it twice a year at varying locations.They do one when the winter visitors are here and an off season one when the counts are a little lower.He does not know of the specific location.That is a common question and they are moving to integrate a traffic count onto the website. The new look on the website will include that component so that businesses and developers can get to it.They want to be user friendly. Councilmember Wilson asked how much it costs to do a traffic count. Economic Development Director Steve Filipowicz stated they do them internally. Assistant City Manager Bryant Powell stated they do the traffic counts every 6 months as part of their standard operating procedures.He recently saw the numbers and traffic counts are a huge part of it. Economic Development Director Steve Filipowicz stated they cannot put counters down on state roadways.Those are only done once a year by the state.He will try to follow up on that and pin down the area of the counts. Assistant City Manager Bryant Powell stated it would be interesting to see the difference between what they used to be over time.That is the indicator. Councilmember Wilson stated before one puts in a business, they want to know what traffic is in that area.Hopefully you will attract more, but you want a basis to start out with.They might want to do one in that specific area. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 12 OF 16 Assistant City Manager Bryant Powell stated they will do that. Vice Mayor Eck commented they also need to take into account those people going to the lake. He would like to see them stop and eat in the city before they go home.A lot of them just drive through to the freeway or they cut down Brown Road. Mayor Insalaco stated there are a few projects going on right now along Idaho that may help alleviate that problem.There are restaurants going in and the QuikTrip.Those are things that will bring people in.They have been talking about where we are and where we have been.He believes they are further ahead now than we have ever been because of the staff George Hoffman has hired, particularly Brad Steinke, Steve Filipowicz and Janine Hanna-Solley as business advocate.He does not think they have ever had the quality of people that they have now helping them out.Rudy Esquivias has been great, but they needed some direction in the key places to help them get where they want to be.He believes that is where we are now.The staff has been the biggest help now. Councilmember Serdy commented he does not have any solutions to what Councilmember Severs is talking about reference buying some land.Every time you buy land, it always seems expensive.Ten years later you are saying you should have bought the land then.The ideal place to have a building that Mr. Shubic is talking about would be a chunk of land behind what used to the Grand Hotel.It would be a mini- version of what Tempe just built for their Center for the Arts. He would not know where else to put it except over on the county land across the street.Otherwise the window would be gone and they would not have that land anymore.However, he does not have a solution of where to get the money. Mayor Insalaco commented he does not think the city has ever had the expertise that we have now to help us. Vice Mayor Eck commented that could be a direction. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 13 OF 16 Assistant City Manager Bryant Powell reminded them that they have given staff direction to bring back as a direction to staff the downtown for October 16, 2007. Councilmember Severs agreed with Mayor Insalaco in the staff being better than what he has ever seen in this community.He just feels that they need to take a step now.They have the staff and they are doing the research.If that means us acquiring land somehow, then that is what they need to do.He is a firm believer of if they build it, the people will come.They did a survey to see if the area would support businesses and came back saying it will not, they should build 4,000 apartments in the downtown area.He asked if they took into account everyone that lives east of the city in Gold Canyon, Florence Junction, Globe, Superior and Miami.He asked where those people go when they want to do anything, and where our citizens go for anything.Everyone goes to Mesa.He asked where they go for fine dining and dancing, a night club, entertainment or fine shopping.They come past us and go to Mesa.They did not take into account all those people when they did our study.He thinks that if they created something they would be the place to be.They could include all those populations in our studies, as they would be driving past our businesses and using our streets.They would have that traffic count because they would have more people here. Councilmember Dietz commented he thought that was why they are here tonight. Mayor Insalaco agreed that is why they are here.They have their start, the staff is in line, and they need to give them a chance to work. Councilmember Wilson stated when he was running for city council he was surprised by potential voters at a feed store.He would walk up and ask them if they were residents of the city and the majority of them were not.They were from Superior, Miami, and Globe.It was a Saturday and they had come in to town to do their shopping in Mesa.They stopped at the local feed store to buy feed before heading back home.Instead of them just stopping and buying SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 14 OF 16 feed, if they had a mall and theater here, it would basically be one stop here. Vice Mayor Eck commented he would like everyone to remember to stay proactive on community events.He believes there is still a little fear that if someone wants to do an event here downtown that it will be difficult to deal with the city on the event.He would like to have a better relationship with those that have the events, such as the Oktoberfest coming up.They need to be proactive and encourage them. Mayor Insalaco thanked the staff for coming in on an extra night and then thanked everyone for coming.He added they should not think that their comments have not been heard, as they have been. DISCUSSION ON SCHEDULING FUTURE MEETINGS AND DISCUSSIONS ON ISSUES RELATIVE TO THE DEVELOPMENT AND REDEVELOPMENT OF THE DOWNTOWN AREA None. ADJOURNMENT )Mayor Insalaco adjourned the meeting at 7:35 p.m. ACCEPTED THIS 16TH DAY OF OCTOBER, 2007, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 16TH DAY OF OCTOBER, 2007. SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 15 OF 16 ATTEST: KATHLEEN CONNELLY City Clerk CITY COUNCIL MINUTES CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the special meeting of the City Council of the City of Apache Junction, Arizona, held on the 27th day of September, 2007.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 4th day of October, 2007. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL SEPTEMBER 27, 2007 PAGE 16 OF 16