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HomeMy WebLinkAbout2007-02-26 City Council Special MinutesCITY COUNCIL SPECIAL MEETING FEBRUARY 26, 2007 The special meeting of the City Council of the City of Apache Junction, Arizona, was held on February 26, 2007, at the Apache Junction City Council Chambers pursuant to the notice required by law. CALL TO ORDER Mayor Coleman called the meeting to order at 4:00 p.m. ROLL CALL Councilmembers Present:Mayor Coleman Vice Mayor Eck Councilmember Dietz Councilmember Insalaco Councilmember Severs Councilmember Sippel (by telephone) Councilmember Waldron Staff Present:City Manager George Hoffman Assistant City Manager Bryant Powell City Clerk Kathleen Connelly City Attorney Joel Stern Others Present:Asst. to the City Manager Ruth Giese PROPOSED RESOLUTION NO. 07-09, APPROVING A MASTER DEVELOPMENT AGREEMENT FOR SUPERSTITION SQUARE DOWNTOWN PROJECT WITH AJ TOWN CENTRE LLC )Mayor Coleman asked why they were still meeting.It is his understanding they have two options.There is no agreement on the table.His thought is that they approve this and if the developer finds a buyer that would like to enter into the agreement it would already have been passed by the council.He understands that the developer SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 1 OF 12 has withdrawn and the developers from Connecticut are not interested either. City Manager George Hoffman stated staff brought the developer's best offer to the council over two weeks ago on a Monday and council stated its interests and concerns.They came back with a draft on Thursday with those interests and concerns.At that meeting council established this date under state law that requires if there is contemplation of a municipal incentive agreement that the public must be given 14 days of opportunity to assess the agreement. That has been done.Tonight they can act or not act on the draft agreement. Vice Mayor Eck commented as far as the LLC is concerned there is no contract now. City Manager George Hoffman stated the Sunday before the Monday meeting they sent a note stating they were no longer interested.He advised them of the council's interests and concerns after the Monday meeting and on Wednesday he read in the Tribune that Mr. Rakow was willing to consider an agreement.After the Thursday meeting, they sent a second note that they were not interested.The paper also reported that they were not interested and that they found the council's interests and concerns inappropriate. Councilmember Dietz commented the Wednesday article stated they would be interested in looking at the changes.However, Thursday is when they made the changes so they had not even seen any changes by the time the city had gotten the 5 o'clock email stating that they were withdrawing their request for the third or fourth time. City Manager George Hoffman stated they had broadly communicated with the public so they may have viewed them.The council's motion was that any consideration and thoughts be articulated 5 days prior to the meeting and nothing was expressed formally or informally except for the comments in the Tribune. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 2 OF 12 City Attorney Joel Stern stated they made an offer under general contract law, the council did not accept and proposed a counter offer, and they do not want to take it.They do not have to sign it.If it is approved, there needs to be an amount of days that need to be put on it for them to sign it and return it. Vice Mayor Eck commented they still need to look at this as a counter offer, even though they said they were not interested. City Attorney Joel Stern stated that is correct. Councilmember Severs commented he has a letter in front of him from the AJ Town Centre LLC development group and he does not know if the community knows of it or understands what it says.He read the email from after the meeting last week withdrawing their proposed agreement, which was the second withdrawal.The third one was from their attorney asking the city to refrain from consideration of the agreement.Their attorneys are asking the city not to talk about this anymore, and he will not be a part of a meeting about a contract that does not exist.(He then left the meeting.) Councilmember Insalaco commented he also has a problem with their meeting even though they agreed to meet at this time.It is bad enough there are citizens who think they hold secret meetings, but they are holding a meeting at a time where most of them cannot attend. He is not happy meeting at this time on something as bogus as this.He cannot vote on it one way or the other. Mayor Coleman commented he was here when they set the time and date.He is curious as to why he is saying that. Councilmember Insalaco stated he has had calls from people wanting to know why they are having another secret meeting. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 3 OF 12 There was general discussion on this being an alleged secret meeting voiced by members of the community since they could not attend due to the time of day. Vice Mayor Eck commented a lot of folks have the perception they are still working on the agreement and they might have their downtown.Even though the council is still trying to come up with some type of agreement, the average citizen reads it as if the city almost has the agreement wrapped up. Mayor Coleman commented at the last meeting held they scheduled this meeting and it was subsequently advertised because the LLC had submitted a proposal to the city.It was not the city's doing.They had come to the city and submitted a proposal.The council could not say they were not going to meet because of the 14 day notice requirement. He will not take the blame for scheduling a meeting. Vice Mayor Eck stated the mayor was not at fault.It is the timing. Mayor Coleman stated he is aware 4 o'clock may be inconvenient for a lot of people, but the Mesa City Council meets at 8 o'clock in the morning.They are lengthy meetings.He was curious as to why this is upsetting. They, have representatives of the Republic and Tribune in attendance; to call this a secret meeting is a little misleading. Vice Mayor Eck commented he believes the frustration is from the type of meeting they are having. Councilmember Dietz asked the city attorney if this was a procedure that they had to go through. City Attorney Joel Stern stated in order for them to pass the agreement, they had to have this meeting. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 4 OF 12 Councilmember Dietz stated because of the 14 day public notice. City Attorney Joel Stern stated that is correct.That has been complied with. Councilmember Dietz commented it is for the secret meeting now. City Attorney Joel Stern stated it is not a secret meeting.It is in public.They have had executive sessions that were properly posted.Executive session meetings are not subject to disclosure, so in that sense those would be secret, but they are not secret legally. Councilmember Dietz commented since they have presented the proposal to the council, the actions of the council have all been according to law. City Attorney Joel Stern stated that is correct.The document has been given to the press, business owners, and downtown property owners.He believes part of the reason they are here is because of the pressure from the downtown property owners. Vice Mayor Eck commented they are mad because the city is not succeeding.If the council were succeeding they would be at the meeting to shake hands and there would be an agreement.It is a no win situation.He asked if they must take some kind of action in 14 days if the council says yes. Councilmember Dietz commented it is whatever amount of days the council sets for a response. City Attorney Joel Stern stated it is whatever the council says.If the council says within 30 days otherwise it is void, the counteroffer would be revoked. Vice Mayor Eck asked what would happen if they brought a different buyer in tomorrow. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 5 OF 12 City Attorney Joel Stern stated it would depend on if they sold the property already.He added they would have to republish this for a new public hearing to occur. City Manager George Hoffman commented it would be an ideal situation if they came in with a buyer.Development agreements are done all around the state and one knows who they are dealing with, what the project is, and when it will be built.The public can balance risk and reward. Councilmember Severs and many others are frustrated because this agreement does not provide for that.The best case scenario is for someone to come in and say they are the vertical developer. He believes they will still be interested in negotiating for the tax incentive funding to seek reimbursement for public infrastructure and perhaps for the normal infrastructure that a developer would normally be required to put in. Vice Mayor Eck asked the city manager if he would be comfortable attending the meetings with the new business group of 35-40 members.He thinks they need a contact person for that group. City Manager George Hoffman stated he is happy to comply with any direction the council gives.Dialogue about an issue best occurs when both parties are open-minded and have a mutual interest in coming to a solution.If one party knows what their position is, then dialogue about that is perhaps less fruitful. Vice Mayor Eck commented he was concerned because he feels they need to stay in touch with the business community.This group stepped up and stated they wanted to get this done.He would like someone to attend their meetings, be it the city manager or his designee. City Manager George Hoffman commented a group of real estate investors, local realtors, and downtown property owners represent an important segment of the community, but they do not represent all of the business community.They also need to do outreach with the Community SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 6 OF 12 Development Corporation, Main Street, and the Chamber of Commerce.They also must remember that the business community is only a subset of the entire community.There are some 35,000 residents of the community; the business community is just a portion of that.There are neighborhood associations that also have concerns. Vice Mayor Eck commented he believes the city clerk represents the city at the chamber of commerce meetings. City Manager George Hoffman stated she serves as a liaison between the city and the Main Street Program and the Community Development Corporation.He serves as the liaison for the Chamber of Commerce and the neighborhood association meetings.There is a lot of outreach; the 35,000 population is as deserving of communication as a few who may have strong financial interests in the outcome of this investment of public tax dollars. Councilmember Dietz asked if they were there to approve or not approve this development agreement with the minor changes they have put in it.If it is approved, they are to give it to the LLC with a certain amount of days to either sign and return it or not.It would then be done with. City Manager George Hoffman stated there are 3 ways of looking at this.They can vote for approval, disapproval or they can take no action.They can have the public meeting, take public comment, and then close the meeting and go on about their business. Vice Mayor Eck commented he is sick of no action. City Manager George Hoffman corrected his previous statement.This is not a public hearing. City Attorney Joel Stern reminded them it would take 5 votes to approve the resolution. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 7 OF 12 Mayor Coleman commented it is a no win situation.He feels if they pass this the city would be accused of going beyond what the property owners have asked for.The property owners asked them not to move ahead any further and the city would have.If the city does nothing, the business community will feel like the city is the one who did not take action.The agreement is far outside the models that he has looked at before and those the city has done before with both Earnhardt's and Wal-Mart.There the square footage could be calculated, estimates on the sales tax that would be received would be included and they had a repayment timeline.This is almost an agreement to have future development agreements once the developers come in. Vice Mayor Eck commented he has been looking at this as one time only and does not want to set a precedent for the future.He does not want to do any more development agreements on just property with no vertical developer involved. City Manager George Hoffman stated it is challenging.Someone could ask if the city would be subsidizing apartment complexes or a big box in the downtown and they cannot answer that question because they do not know. It is challenging to be responsive to the citizenry when they cannot answer basic questions like that. Mayor Coleman commented he has had people tell him it is a leap of faith.He feels they took that leap of faith when they rezoned the property and created the downtown development district, rezoning it to a very dense use.Now they are trying to work out an agreement to get as close as they can to the project that they sold to the community.Is has been difficult. Vice Mayor Eck asked if a motion for no action means it will be continued and could be brought back at any time. City Attorney Joel Stern stated that is correct.They could also set another date. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 8 OF 12 Vice Mayor Eck commented that would do nothing.He added in 10 years he has never seen a development any where near as complicated as this one. Councilmember Waldron asked if they would have to set a date certain if this was continued. City Attorney Joel Stern stated they do not have to but they might want to if they want to talk about it again. City Manager George Hoffman asked what the difference is between tabling it and continuing it. City Attorney Joel Stern stated continuing it has it going to a different date, tabling it says it can be brought up again. City Manager George Hoffman commented the latter does not set a date. stated it does not. stated it would be a new item. stated that is correct. City Attorney Joel Stern City Clerk Kathleen Connelly City Attorney Joel Stern Vice Mayor Eck commented they could vote yes on it and it still would not halt it as they can get a new developer to come in after 30 days and take it over. City Attorney Joel Stern stated if they get a new developer there will probably be different terms so the whole process would start again. Councilmember Dietz commented if they said yes on this they would have to say it has to be SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 9 OF 12 signed and returned in an "x" amount of days or it would be revoked. City Attorney Joel Stern stated that would be a good idea. Councilmember Dietz added if it is not returned it is revoked and there is obviously nothing there. City Attorney Joel Stern stated that is correct. Vice Mayor Eck commented the LLC did not want them to vote on this item whatsoever. Councilmember Dietz commented they did not want the council to discuss it or take any action in public. City Attorney Joel Stern commented on the written words it seems that way. Vice Mayor Eck commented they are to hide it from the citizens for as long as they can is the perception. City Attorney Joel Stern stated he cannot comment on that. Vice Mayor Eck commented he would because that is the way it feels.He is going to vote yes for it and then he will criticize them for not building it.He has been criticized by enough people who feel the council is not acting on the downtown; they have no idea what has been going on with the downtown.They have all been confidential meetings so they could not give the details out.He believes they can now give out the details and maybe people will understand why they struggled with it so much. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 10 OF 12 City Attorney Joel Stern stated the details have been out there for over 14 days.They are not confidential any more. Mr. John Kantowski asked from the audience why there was no Call to the Public on this agenda. Mayor Coleman stated it is a council meeting and not a public hearing. There was general discussion with Mr. Kantowski about it not being on the agenda for public comment. Mayor Coleman commented he would like to see them table it.It would still be out there if they should request to open it back up.If not, it does not until they get another proposal.He then closed the discussion with no further comments and called for a motion. Councilmember Waldron MOVED THAT RESOLUTION NO. 07-09, THE MASTER DEVELOPMENT AGREEMENT FOR SUPERSTITION SQUARE DOWNTOWN PROJECT, AJ TOWN CENTRE LLC, BE TABLED. Vice Mayor Eck SECONDED THE MOTION. VOTE:5-1 (Councilmember Sippel voted in opposition, Councilmember Severs had left the building.) The motion carried. ADJOURNMENT )Mayor Coleman adjourned the meeting at 4:25 p.m. ACCEPTED THIS 20TH DAY OF MARCH, 2007, BY THE MAYOR AND CITY COUNCIL OF THE CITY OF APACHE JUNCTION, ARIZONA. SIGNED AND ATTESTED TO THIS 20TH DAY OF MARCH, 2007. SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 11 OF 12 ATTEST: KATHLEEN CONNELLY City Clerk J71)0 6 * &,z,D O U G L *COLEMAN Mayor 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 26th day of February, 2007.I further certify that the meeting was duly called and held and that a quorum was present. Dated this 6th day of March, 2007. KATHLEEN CONNELLY City Clerk SPECIAL MEETING OF THE CITY COUNCIL FEBRUARY 26, 2007 PAGE 12 OF 12