Session 07-04, a Regular Meeting of the Economic Development Advisory Commission was called to order at 6:13PM on April 10, 2007 by Chair Howard at the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.
PRESENT: COMMISSIONERS HOWARD, NEWBY, RILEY, MURPHY, SCHEER, FAULKNER
COUNCILMEMBER: WYTHE
STAFF: SPECIAL PROJECTS COORDINATOR HOLEN
DEPUTY CITY CLERK KRAUSE
CALL TO ORDER/ROLL CALL
At the request of the
Chair, Deputy City Clerk Krause introduced herself to the commission.
APPROVAL OF THE AGENDA
Chair Howard called for a motion to approve the agenda.
FAULKNER/MURPHY – SO MOVED.
There was no discussion.
VOTE: YES. NON OBJECTION. UNANIMOUS CONSENT.
Motion carried.
PUBLIC COMMENTS REGARDING ITEMS ON THE AGENDA
Mr. Kevin Hogan, City resident, commented on Item B under Section 7, Pending Business, regarding Homer Spit Lease Policy. Mr. Hogan submitted written comments to the Commissioners on the Lease Policy. He encouraged the Commission not to accept the amendments as the administration has brought forth. As an example, he brought the issue regarding renewal of the Pier One Theater lease. He believes that this policy was not renewed in accordance with current Lease Policy guidelines, unless it was a six-month lease. That Pier One should have followed the RFP process just as any other applicant, current or new. Mr. Hogan believes that the current established Lease Policy is not clear. It needs to be a streamlined, simple, easy to follow policy and brings about results. He believes that a couple of the problems, and they are philosophical, has been that the City will only offer properties through the RFP process. Since the City has adopted that policy there has been a steady parade of people in the City Manager’s office inquiring about developing property or entering into leases and it has gone nowhere. The RFP process should be used only when there is multiple interest on a single property. He stated that if there is only a single entity interested in the property the RFP process should not be applied. Mr. Hogan commented on the City inheriting the “fruits of your labor”, investment and your assets at the end of your lease term. Leaseholders should have security in the knowledge that over time you do not lose your investment to competitors as long as a leaseholder has fulfilled the obligations of the lease. That is how everyone else does it, Alaska Railroad, State of Alaska, other cities; Kenai, Soldotna, and Seward. As an example, Seward has a five-year proof up period to perform. He expressed that in 20 years time when your improvements are amortized it will become property of the City has been a huge deterrent. His second comment regarding Resolution 07-25 was that it was not voted on but referred to the EDC and is not approved. It shows on the web page, in the indexes, and this information is incorrect.
Questions from the Commission:
Mr. Hogan replied that in sections nine or eleven it that dealt with continuing negotiations of a current leaseholder. The City has an option at their discretion, but there is no guarantee. He feels that thirty years is not long enough to realize a return on a leaseholder’s one-three million dollar investment.
APPROVAL OF MINUTES
A. Unapproved meeting minutes of March 13, 2007
Chair Howard called for a motion to approve the minutes.
MURPHY/NEWBY– SO MOVED.
There was no discussion.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
VISITORS (none scheduled)
FAULKNER/MURPHY – Moved to suspend the rules and give option to
the visitor to speak now for three minute time limit or wait to the end of the
meeting and have unlimited time.
There was no discussion.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Alan Baldwin, Stakeholder Relations Representative for Dynasty Mines introduced himself to the commission. He presented his business card and informed the Commissioners he was available anytime.
STAFF REPORT & COUNCIL
REPORT/COMMITTEE REPORTS/BOROUGH REPORTS
STAFF REPORT -
Memorandum EDC 07-06 from staff person Holen
Kenai Peninsula Economic Development District (EDD) will be having an economic development forum at the Kenai Convention and Tourist Bureau on April 27, 2007. Exact times will be announced soon. The guest speaker for the event will be Burt Chojnowski of Brainbelt Consulting, Fairfield, Iowa. It promises to be an exciting event. The Homer EDC members are encouraged to attend the event.
The Homer Comprehensive Plan is off to a great start, there will be a Public Workshop on April 25, 2007. Staff member Holen urged the Commissioners to attend this local event as everyone is invited.
COUNCIL REPORT -
City Council is proceeding with the building of a new City Hall. There will be a committee formed, City Hall - Town Plaza Review Committee. The tasks of this committee will be site selection, financing recommendations, and function and space needs. Anyone interested in applying for this committee can submit an application to the Clerk’s office. Decisions will be made at the May 14, 2007 City Council meeting.
Committee ReportS -
None.
Borough Reports -
None.
PENDING BUSINESS
A. The “Common Good” and “Highest and Best Use” Memorandum EDC 07-05 from Staff person Holen with Wikipedia entries
Chair Howard called for a motion to bring Common Good and Highest and Best Use to the floor for discussion.
FAULKNER/MURPHY
– Moved to divide the subject into two
topics, Common Good; and Highest and Best Use, for separate considerations.
There was no discussion.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Chair Howard called for interest to bring Common Good to the floor.
AFFIRMATIVE VOTES WERE AUDIBLE FROM COMMISSIONERS NEWBY AND MURPHY ONLY.
Chair Howard carried the Motion.*[*]
No discussion.
Chair Howard called for a motion to bring “Highest and Best Use” to the floor for discussion.
SCHEER/FAULKNER – Moved to bring “Highest and Best Use” to the floor.
There was no discussion.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
FAULKNER/NEWBY- MoveD to adopt for purposes of the EDC commission’s use the definition of “Highest and Best Use” as defined below:
“Highest and Best Use is a critical step in the development of a market value opinion. In highest and best use analysis, the appraiser considers the use of the land as though it is vacant and the use of the property as it is improved. To qualify as the highest and best use, a use must satisfy four criteria: It must be legally permissible, physically possible, financially feasible, and maximally productive to describe economic development”, as printed in the Memorandum 07-05 paragraph 11, line 2 - 6.
Commission discussed the purpose of adopting this definition. How adopting this as a meaning to the phrase “Highest and Best Use” can be helpful in future discussions or decisions by the EDC. There was debate regarding what language the definition should contain or not, whether it was necessary to define the term. If clearly defined would assist in clearer conversation.
Commissioner Newby called for the question.
VOTE: NO. RILEY, NEWBY, SCHEER, MURPHY.
VOTE: YES. FAULKNER.
Motion failed.
Chair Howard called for a motion to bring Common Good to the floor.
FAULKNER/NEWBY. – SO MOVED.
VOTE: YES. SCHEER. HOWARD, FAULKNER.
VOTE: NO. NEWBY, RILEY, MURPHY.
Motion failed.
B. City of Homer Property Management/Lease Policies Jon Faulkner memo, Resolution 07-25, and revised Lease Policies provided as backup
MURPHY/NEWBY
– Moved to bring Resolution 07-25 and
Revised Lease Policies to the floor for discussion.
Discussion developed regarding acceptance of the amendments to the Lease Policy as presented and whether EDC attention should be directed only to the amendments or the overall policy. It was discussed that there were three issues to be dealt with; one was a time issue about getting the EDC recommendations back to the Council. Second was the appointment of one EDC member to the Lease Committee; and third was the overall reassessment of the policy.
MURPHY/FAULKNER –Moved to accept the Lease Policy as presented with the modifications as written and to advise City Council that the Lease Policy will be taken under further advisement with the intent to refining recommendations of its modifications at a later date.
Further discussion ensued on wording of the motion and accepting the changes. Councilmember Wythe informed the commission that the Lease Policy had not been adopted by Council, but sent to the EDC for review before adoption. The signing had been in error.
FAULKNER/MURPHY - Motion to amend Main motion to delete Item K Developers/Investors: as written under Chapter 13, Subleases, Section 13.2 Procedures
This section was discussed as being objectionable to the public, historically the City has always allowed subleasing, and subleasing maximizes the economic return to the City. The City does not need to micromanage these properties. Zoning regulations are in place. Discussion developed that the whole item did not need to be deleted, but required more clarification. Interpretation of the paragraph is varied. Suggestions were given to make the paragraph straightforward.
NEWBY/SCHEER – Friendly amendment. Retain item K but re-write it to read- Developers/Investors –The City will consider proposals from developers who wish to construct buildings and/or other improvements for the purpose of sub-leasing, if all tenants of the building or land are engaged in activities that are permitted by applicable zoning codes in effect at the time.
Immediate acceptance of secondary (friendly) amendment to the maker of the primary amendment was turned down. More clarification was needed on the rewording of the amended amendment. Additional changes to the language were discussed.
Commissioner Murphy called for the question on the Secondary (Friendly)Amendment.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Commissioner Murphy called for the question on the Primary amendment.
VOTE: YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
FAULKNER/NEWBY – Moved to strike Paragraph E regarding lot use restrictions, under Chapter 3, Properties Available for Lease, Section 3.2 Procedures
Discussion regarding the overall need for this provision, whether the addition of this paragraph would ensure economic growth, it is believed to do the opposite, previous experience has shown that the City should be open to “outside the box” uses for a property, and the public testimony received regarding the restrictive use of lots. The City does not need to create sub-zones. Permanent restrictions should be in the form of deed restrictions. Additional public discussion should be entertained if the use of the lots in question is revised. A considerable effort over the years was made to create the space, City history has been commercial fishing, and there should be some restrictions in place to assist that industry. This policy is not law; it can be revised in the future if needs change. There is concern that this addition will be taken literally and prohibit the receipt of proposals from other industries.
SCHEER/NEWBY
– Moved to a Secondary amendment to
change the language to read, “The City Council may restrict specific City properties
to certain uses or classes of use. The City Council has, in the past,
restricted the use of lots immediately adjacent to the Fish Dock, to activities
directly related to commercial fishing. Similarly, it has restricted uses on
lots adjacent to the Deep Water Dock, to marine industrial uses, with an
emphasis on shipping and cargo handling. The purpose for these restrictions is
to encourage growth in targeted economic sectors, to ensure that the City
receives the maximum benefits from the large investment the public has made in
these docks, and to provide land for businesses that require close proximity to
the docks in order to operate efficiently and profitably. The City at its
discretion, may consider proposals in which a portion of the leased property is
proposed for a use other than the uses allowed in the restricted area, provided
such uses are compatible with the area, are consistent with the zoning code,
and approved in advance by the City.”
Discussion on these changes was to remove the more restricted language allowing more flexibility to the Lease Committee in their decisions. Decisions made today reflect on future uses of land so great care and foresight must be used. Long-range goals/plans made should be followed. Immediate gratification now or economic stability for the future.
Commissioner Newby called for the Question on the Secondary amendment.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT
Motion carried.
Commissioner Murphy called for the Question on the Primary amendment.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT
Motion carried.
SCHEER/FAULKNER- MoveD to strike or revise language of paragraph E, Chapter 11, Length of Leases/Options, under Section 2. Procedures.
Maker of original motion considers this unfriendly motion. Asks for Point of Order. Councilperson Wythe reminds commission the original motion was focused on the additions and deletions already proposed to the Policy and Procedures Manual. That the commissions retained to right and will present additional changes later in that motion. Chair asks presenter of amendment if he will withdraw his motion. Discussion followed regarding the purpose, and language of this paragraph. Recommended postponing this discussion on this motion when more attention can be focused in depth on the subject.
Commissioner Murphy calls for the question on primary amendment.
VOTE: YES. NEWBY
VOTE: NO. SCHEER. FAULKNER. MURPHY. RILEY. HOWARD
Motion failed.
FAULKNER/MURPHY
- Move to revise language under Chapter
2, Lease Committee, Section 2.2 Procedures, Item A to read, “The City Manager
shall establish a lease Committee that will consist at a minimum, of the
Manager, the Finance Director, the City Planner, the Port and Harbor Director
and one commissioner from the EDC and one commissioner from any of the other
commissions.
Discussion proceeded on revising the Lease Committee and who should be on it. Recommendations that at least two other members that are not from City Administration would help balance the committee. It was suggested one member from the EDC and then one additional commissioner from any of the other three commissions.
Commissioner Murphy called for the Question on primary amendment to the main motion.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
Commissioner Murphy called for the Question on the main motion.
VOTE. (VOICE) NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried
C. Comprehensive Economic Development Strategy Recreation & Tourism (in relation to halibut charters), lead EDC member on Health Care, Planning (See notes from Commissioner Scheer)
FAULKNER/MURPHY- Moved to separate items for purpose of discussion.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT
Motion carried.
FAULKNER/SCHEER – MoveD to bring Recreation and Tourism to floor as related to Halibut Charters.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried
FAULKNER/NEWBY- MoveD to include as a policy statement under the Recreational and Tourism section of the re-write of the CEDS, the following language, “the City of Homer opposes limitations on the growth of the guided recreational charter fleet and opposes implementation of an IFQ program with respect to the guided recreational charter industry.”
Discussion regarding proposed changes to the recreational halibut fishing industry, and guided halibut fisheries. Potentially restrictions that are more stringent could be put into effect next year. How it affects Homer. Debate was entered into whether involvement was needed. More research was recommended regarding economic impact of restrictions. That will allow the commission to be more informed on any future policy changes and what effects they would bring to the local economy. Previous discussions were to not to make specific recommendations to the Council.
NEWBY/MURPHY- MoveD for a secondary amendment regarding the language. City of Homer supports a strong recreational charter fleet with sound resource management and further opposes any privatization of any public resource.
Comment was made regarding the content of the original amendment and motion that it addressed those issues.
Commissioner Newby withdrew her secondary amendment.
Councilmember Wythe called for a point of order to bring discussion back on track.
RILEY/NEWBY
– Moved to table discussion until next
meeting.
Staff person Holen is to look into funding for research on economic impact of fishing, commercial, guided and sport.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried
MURPHY/RILEY- Moved to postpone the remaining two topics, Health Care and Planning until next meeting.
Discussion, reminder about the Hospital Expansion vote between this meeting and next, that this is tied into the Health Care topic. Commissioners Scheer would like comments or additions to his Planning handout from the other Commissioners for the next meeting.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
NEW BUSINESS
A. Election of Vice-Chair
Chair Howard opened nominations from the floor for Vice Chair.
Commissioner Murphy nominated Commissioner Riley.
Hearing no further nominations, Chair Howard closed the nominations.
VOTE: (VOICE). YES. NON-OBJECTION. UNANIMOUS CONSENT.
Motion carried.
B. The role of the EDC Resolution 06-20 and Homer City Code, Chapter 1.78 provided as backup
FAULKNER/NEWBY
– Moved to bring Item 8.B The Role of
the EDC to the floor.
Discussion regarding what limits, and responsibilities the EDC had. There was no determination if changes were needed at this time. That the only limits were those imposed by law. The commission is only limited by job duties as described, but those are pretty far reaching. Not limited to only the things handed down by the Council. The commission can generate own thoughts and provide these to the Council.
INFORMATIONAL MATERIALS (for discussion only)
A. Robert’s Rules of Order – Procedure in
Small Boards
Memo from Deputy City Clerk Jacobsen and pages 470-471 from RRO
B. Homer Comprehensive Plan Update Public Workshop flyer and form
C. Bradner’s Alaska Economic Report
D. Letter and Certificate from Mayor Hornaday recognizing Gloria Corey
COMMENTS OF THE AUDIENCE
None.
COMMENTS OF THE CITY STAFF
Staff person Holen commented on proper
parliamentary procedures regarding calling the question that it requires a
second.
COMMENTS OF THE CHAIR
Chair Howard thanked the commission for the
hard work, he felt it was a very informative and progressed in some areas that
were quite onerous. He commented that as a rule, the Commissioners in the past
had presented motions, topics they wished to address in advance.
COMMENTS OF THE TASK FORCE
MEMBERS
Commissioner Newby
commented that she emailed Carol Schwartz regarding the status of college
funding for acquisition of City Hall for expansion. Ms. Schwartz encouraged
members to keep sending letters and emails to the Senate finance committee.
Commissioner Newby also reported that she
testified telephonically on behalf of the Alaska Travel Industry Association.
They were in Juneau lobbying for a higher degree of tourism funding. There was
discussion from industry participants that 50 to 80% of real estate
transactions have resulted from tourists.
Commissioner Riley asked questions regarding
the procedure for submitting agenda items for the next meeting.
Commissioner Murphy commented on the pending
sales tax issue for Parks and Recreation funding.
Commissioner Faulkner commented that it was a
good meeting, respected the debate but was sorry not to see certain subjects
not make it to the floor for discussion.
Councilmember Wythe recommended the
Commissioners when they want to bring things up, motions, etc., they present
them in advance, it helps to keep items in context and will alleviate potential
misunderstandings. Recommendation was made to have a brief review of Roberts
Rules at the next meeting, to see what protocol is for motions, amendments,
discussion, etc. The essence of this meeting lent a “work session” feel to the
meeting.
Commissioner Scheer appreciated the more
orderly manner in which motions and voting was done at this meeting.
There being no further business to come before the Commission, Chair Howard adjourned the meeting at 8:42 p.m. Next regular meeting is scheduled for May 8, 2007, at 6:00 p.m. in the Homer City Hall Cowles Council Chambers located at 491 E. Pioneer Avenue, Homer, Alaska.
RENEE KRAUSE, DEPUTY CITY CLERK I
APPROVED: