COUNCILMEMBER: WYTHE
STAFF: SPECIAL PROJECTS COORDINATOR HOLEN
Chair Howard called for a motion to approve the agenda.
FAULKNER/NEWBY – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Kevin Hogan, city resident, has leased property on the Spit
for over a decade and has tracked the process. In past administration, working
with the City Manager has proved futile. It is now more comfortable working
with the present City Manager who has integrity and no problem with the open
process. Leases need to be flexible rather than standardized and changes in the
lease policy are needed. It is not in the City’s interest to keep land tied up
to retain ownership. Incentives could be created to allow the lessee the hope
of a return on their investment. He hopes the Commission takes the time to go
through it and offer suggestions for improvement.
APPROVAL OF MINUTES
A.
Unapproved meeting minutes of
Chair Howard called for a motion to approve the minutes.
FAULKNER/SCHEER – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Chair Howard called for a motion to suspend the rules and take Item 6. prior to Item 5.
NEWBY/MURPHY – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
STAFF REPORT & COUNCIL REPORT/COMMITTEE REPORTS/BOROUGH REPORTS
Special Projects Coordinator Holen noted her two-week absence prior to the next meeting.
Councilmember Wythe reported the
City is moving forward with the Water Treatment Plant. Council discussed
financing through the Legislature; community funding has been eliminated from
the project in its entirety. Assistance with PERS/TERS may be the State’s
focus. The resolutions on limited halibut catches failed at Council level as
there was resistance of pitting the commercial and charter fishermen against
each other.
VISITORS
A.
Charlie Franz, CEO,
Charlie Franz gave a PowerPoint presentation on the South Peninsula Hospital asking the Commission to support: hospital expansion, encourage Representative Seaton and Senator Stevens to support the hospital’s CIP request, encourage Legislature to support medical education and training, encourage UA to continue support for health career education, promote Homer as a retirement community and tourist destination, encourage low-impact knowledge-based business development, and help provide incentives to attract specialists.
A.
City of
Chair Howard called for a motion to bring Item A. to the floor.
MURPHY/NEWBY – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
The Commission discussed the merits of reviewing leases and made the following points:
* Commission may not want to get bogged down with leases
* May not have the expertise
* Background of commissioners may not be a stable factor
* Volunteers do not have enough time
* Can review leases after negotiated
* Can get together with Lease Committee and re-write lease policies
* Highest and best use of Commission’s time is analysis of things and making recommendations
* Validity in the Commission looking at confidential aspects of leases
* Staff could have tunnel vision
* EDC promotes economic development
* Current Lease Policy is a failure with no successful leases in 20 years
* Inappropriate to remove lease negotiations from City’s professional workforce
The Commission discussed City leases and made the following comments:
* Lease rates should be highest to those contributing the most
* Development plans, proposed capital investment, experience of the applicant and number of employees may not be factors
* Spit should be viewed as a comprehensive piece of real estate
* Lease terms are too short
* Value and potential of real estate on the Spit
NEWBY/FAULKNER – MOVED TO
POSTPONE TO THE
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
B. Landscaping Policies
Chair Howard called for a motion to discuss.
NEWBY/SCHEER – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
The Commission is exploring a funding mechanism through private development for landscape beautification.
City Planner McKibben noted the
Community Design Manual (CDM) was adopted in April, 2004. The CDM includes
landscaping and parking requirements that apply to the
Discussion ensued as to costs of landscape to developers. Funds could be set aside to augment a beautification plan the City has adopted. Incentives for landscape beautification could include property tax exemptions.
City Planner McKibben questioned if it may be a disincentive to the developer to fund a landscape plan. Residential and commercial zoning permits are issued without the value of the project being needed. It may be difficult to find a formula that is fair.
FAULKNER/MURPHY – MOVED TO DROP LANDSCAPE.
There was no added discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
A. Election of Vice-Chair
Commissioner Scheer was nominated for Vice-Chair with the nomination withdrawn. Commissioner Riley was nominated for Vice-Chair.
FAULKNER/SCHEER – MOVED TO TABLE.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
INFORMATIONAL MATERIALS (for discussion only)
A. Bradner’s Alaska Economic Report
B. Resolution 06-144, Establishing the City Hall Cowles Council Chambers as the Central Location for All Regular Meetings of the Council and Advisory Bodies
The Commission clarified they had never met at the Duncan House.
COMMENTS OF THE AUDIENCE
Kevin Hogan, city resident, has
been talking about the Lease Policy for a decade. The basic industry on the
Spit is important with the money it brings in. Getting sidetracked with change
allows the C-notes to fly out the window. He has been in lease negotiations two
times with two different city managers. Both times he has walked into lease
negotiations and been told they have a half hour for it. Lost City revenue for
a project that didn’t take place in 2001 is $1.23M, consisting of city revenue
not realized, lease revenue, fish tax, revenue sharing and property tax. A
policy is needed to ‘Git R Dun’. Millions of dollars go through his business
each year. The City needs to realize there are other places people can go. A
performance commitment from the City is needed. At his last lease negotiations
he went out and bought a building and the building is still sitting in Kenai
with no place to put it. He has invested over $50,000 in leases; he almost had
a deal with the City of
Mr. Hogan answered questions from the Commission:
The problems in the Lease Policy are structural. Not allowing property management, what happens to improvements in leases? Don Jose’s building was made as a functioning asset for a renewal. If you establish performance standards and are contributing to the community you will get the rug pulled out from under you. There has always been an implied renewal for a functioning business. If a person is meeting performance standards they should be rewarded. The City should have performance standards, as they haven’t been performing. The proposal in 2001 was for a multi-use facility and office space. The City Manager at that time commented these are the lease terms, take them or leave them or we’ll start negotiating with your customers. The City would not agree to add any other use under the zoning ordinance in the lease agreement; the two items in the zoning ordinance that were not in the City’s agreed uses were marine railways and dry docks. It affected the financing. He has talked with different members of the Council. Administration went to the last Council meeting asking them to codify the Lease Policy.
Special Projects Coordinator
Holen and City Clerk Johnson had no comments.
COMMENTS OF THE TASK FORCE
MEMBERS
Commissioner Newby apologized for missing a couple meetings, stating she
would catch up.
Commissioner Murphy had no comments.
Commissioner Scheer noted the crossover with the EDC and the Planning
Commission. He encouraged the Commission to get involved in the Comp Plan work.
Restrictions can be addressed through comprehensive planning strategy.
Commissioner Faulkner thanked Special Projects Coordinator Holen and
Councilmember Wythe for sticking with the Commission. He is in favor of keeping
the halibut issue on their plates as it will continue to rear its ugly head. It
is the heart of economic development. He would like the definition of public
good and asked that it be put on the agenda. Government bodies at federal,
state and local levels could be researched to define the interest of public
good. There is a reminder of the urgency of EDC’s mission by Mr. Hogan’s
issues, yet we want to make it Council’s issue or refer it to someone else. We
are the body to help; who else but us?
ADJOURNMENT
There being no further business to come before the
Commission, Chair Howard adjourned the meeting at
______________________________
JO JOHNSON,
Approved: _____________________