Description |
Palatka City Commission Regular Meeting |
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Date |
3/8/2007 |
Location |
Palatka City Commission |
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Speaker/Item |
Note |
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Test |
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PRESENT |
Mayor Karl N. Flagg, Commissioners Mary Lawson Brown, Allegra Kitchens, George Sanders, James Norwood, Jr. |
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ALSO PRESENT |
City Manager Allen R. Bush; City Attorney Donald E. Holmes; City Clerk Betsy Jordan Driggers; Assistant City Clerk Karen Venables; Finance Director Ruby M. Williams; Police Chief Gary Getchell; Fire Chief Mike Lambert; Planning Director Geoff Pappas; Parks Supervisor Jeff Norton, and Planner’s Assistant Debbie Banks |
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CALL TO ORDER |
Mayor Flagg called the meeting to order at 6:10 p.m. |
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Invocation |
Reverend Sidney McCollum, Interim Pastor; First Presbyterian Church of Palatka |
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Pledge of Allegiance |
Led by Daniel Ziem |
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APPROVAL OF MINUTES |
February 22, 2007 Workshop and February 22, 2007 Regular Meeting - Commissioner Brown moved to approve the minutes as read. Commissioner Kitchens seconded the motion, which passed unopposed. |
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PUBLIC RECOGNITION |
PROCLAMATION - Women's History Month - March, 2007 - Mayor Flagg read a proclamation recognizing March 2007 as Women's History Month, and asked all the men present to stand and recognize all the women present. Commissioner Brown requested the proclamation be presented each year to a local women's organization. At Commissioner Brown’s request, it was presented to the Palatka Pilot Club. |
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PROCLAMATION - Brain Awareness Week - Mayor Flagg read a proclamation designating the week of March 12 - 18, 2007 as Brain Awareness Week in the City of Palatka, and presented it to Palatka Pilot Club members present. |
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TRIBUTE - The Honorable Frank M. Hancock, Former Mayor of Palatka; 1911 - 2007. Mayor Flagg asked for a moment of silence before reading a proclamation recognizing March 8, 2007 as a Day of Mourning to honor the passing of The Honorable Frank M. Hancock, Sr., former Mayor of Palatka. Mayor Flagg noted original proclamations would be presented to each of Mr. Hancock’s three children. |
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PUBLIC COMMENTS |
J. Normand Jutras, 412 Mulholland Park, said at the last Commission meeting the Commission “batted” back and forth for two hours on the word “direction.” He is concerned because the Weed and Seed program was looking for direction and was asking for direction. He stated he feels the community does not have a winning team spirit. The City needs to have one vision and everyone needs to work as a team and be positive. The City is going to have to bring in more taxes, revenue and be more positive. Palatka needs direction. |
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Mark Miles, 414 River Street, stated he read a rather sophomoric job description which appeared recently for the City Manager's job. He asked the Commission to reread, review and revise the job description as it is written before the national advertisement for this position begins. Mr. Miles also thanked the Commission for insisting on action by the developer of the riverfront project, as the community is ready for this project to proceed. Mr. Bush stated it was common knowledge that he was retiring at the end of this year, but the City has not sent out any advertisements for his position as of yet, and asked Mr. Miles to what he was referring. Mr. Miles stated he believed there had been one recently written which was intended for use in the national advertisement. He received a copy of it by e-mail. An individual picked it up from City Hall yesterday and distributed it. Mr. Bush stated he was not familiar with it and had not disseminated anything on the upcoming opening for City Manager. Mayor Flagg concurred. |
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Lynda Crabill, 609 S. 14th Street, stated it is time to order Blue Crab T-shirts. T-shirts with logos on the sleeves can be ordered now, and shirts without logo sleeves will be in the stores by May 1. |
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Christy Sanford, 312 Dodge St., said she very much appreciated the Arts Council for bringing the Artrain to Palatka, and hopes it will return. |
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CONSENT AGENDA |
a. Authorize execution of extension of SJRWMD Contract #SH204AA, Memorandum of Understanding, to extend agreement to February 24, 2011 and make other adjustments as noted. b. Authorize execution of
engineering contract with Ayers Associates in the amount of $58,245 for reuse
pump station and reuse transmission/distribution system Reuse Pump
Station and Reuse Transmission/Distribution Design to Forester Field, Azalea
Bowl and Memorial Stadium, per recommendation from Public Works Director. c. Authorize execution of
engineering contract with Ayers Associates in the amount of $26,662 for
design of drainage improvements at St. Johns Ave./Ziegler Drive, per
recommendation of Public Works Director d. Authorize expenditure of Law Enforcement Trust Fund Monies in the amount of $1,125.00 for legal fees on forfeiture cases e. Authorize submission of a grant application to Florida Dept. of Environmental Protection, Greenways and Trails, for Phase I of the Old Waterworks Update and Improvement Project, per request of General Services Director f. Award bid for Records Management System to Shell Office Systems in amount of $64,152.88 to include equipment and turnkey service agreement, per results of Request for Proposals g. Award “piggybacked” bid for Booker Park Playground Equipment to GameTime Corp. in the amount of $90,323.07 for playground systems and $17,346.05 for amenities, per state contract pricing, per FRDAP grant renovation project. h. Accept recommendation of Passero Associates, Airport Engineers, and consider Ajax Construction and MEA Constructors as qualified to submit a design/build proposal for the Airport Terminal Project, per results of Request for Qualifications submitted February 23, 2007, and reviewed by Airport Advisory Board. i. Acknowledge Introduction of Correspondence for the record – Notice of Public Hearings for the Marjorie Harris Carr Cross Florida Greenway, at the request of Florida Greenways & Trails. |
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Daniel Ziem, 401 Olive Street, questioned item b, c, f & g, saying he did not recall anything on these items coming before the Commission prior to tonight, especially in light of the amount of money being expended. He spoke with Commissioner Kitchens on it, and she suggested he bring it up to the Commission. Mayor Flagg stated the items were coming up tonight on the Consent Agenda. The appropriate back up appears in the agenda package, which includes the department heads’ recommendations. If he is questioning the scope of these projects, someone can sit down with Mr. Ziem and discuss those items. Mr. Bush noted these items had come before the Commission previously, and some are funded by grants. The Commission has signed off on all these projects. Mr. Ziem stated he does not recall those discussions and may have missed a meeting. |
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Motion |
Commissioner Sanders moved to approve all items on the Consent Agenda as presented. Commissioner Brown seconded the motion, which passed unanimously. |
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RIVERFRONT PROJECT UPDATE |
Steven Zelkowitz, Esquire, partner with Gray/Robinson, PA, stated his firm was hired by the City of Palatka in July of 2006 to assist with the riverfront redevelopment project. He was engaged to represent the City because he has significant experience negotiating public/private projects of this magnitude. He ran through an analogy of the tasks he has accomplished with the developer, and stated the City submitted a revised version of the term sheet to the developer on December 11, 2006. At that time it was suggested that the City begin face-to-face negotiations with the Developer. After he submitted the revised terms, he spoke with the Developer’s attorney and was told he would be hearing back from the developer the first week of January, 2007. Since that time he has heard nothing, and has been in a ‘holding pattern’ ever since, along with the Developer’s attorney. Mr. Zelkowitz said the City is going forth in good faith to negotiate the terms of this transaction. The developers have responded to some extent, but this has taken more time than he would normally expect. Mr. Holmes asked if the Developer’s attorneys had indicated why they have not responded. Mr. Zelkowitz stated there was no real reason given for the lack of communication, but he got the feeling from their attorneys that there was a similar lack of communication on their end with their client. Mr. Holmes asked if they failed to return phone calls, failed to acknowledge the last submission or just indicated to Mr. Zelkowitz that they don't have anything to tell him right now? Mr. Zelkowitz stated that during the process it was very difficult to get a phone call returned. The last contact he had with their attorney was shortly before the end of 2006, when he sent them the revised term sheet. He said they said they’d spoken with their client and would be back in touch with him the first week of 2007. Mr. Zelkowitz stated he had tried to contact them since that time, and they basically told him they have not heard anything from their client yet. |
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Mr. Fred Ashdji and Mr. Manoj Bhoola from Elite Hospitality were present. Mr. Ashdji apologized for his absence at the February 22 meeting, but had some emergency business to attend to out of the country. Mr. Ashdji stated that Elite Hospitality had left the project in his hands to take on. He is in the process of getting the numbers down to something that will make sense to both him and the City. He presented a package on what they could pay for the 100 Block and HUD building. In their initial bid, there was the possibility of building a marina on the south side of the bridge, but as a result of the public meetings, they had to remove that marina from their proposal due to public sentiment against a marina on the south side of the bridge. In addition, they were given the task to build housing for the HUD clients, which was not in the original proposal, in order to move the tenants to a new location. His job then became trying to come up with figures to accomplish this. He’s been trying to work with architects on an actual design, a timetable and process that Elite can be comfortable with, and that the City would be comfortable with. After they were awarded the project the economy turned sour. Some of their partners that do condos have decided to put their own projects on hold, so he has decided to take this project on without his partners. Representatives of Elite Hospitality have spoken to several banks and worked on the numbers to try to achieve the original goal they proposed for the City. When they started digging into the HUD building replacement, which was thrown at them at the last minute, they found out it was going to be more costly than the initial proposal they proposed to Elite. They hired engineers and revised the drawings several times, and paid the fees for those designs to get where they are today. Bottom line, it will cost them between $3 to $3.5 million dollars to relocate the HUD group. He could not proceed in good conscience with Elite without knowing what the cost was going to be. They have to take into consideration the increased expense of the type of building they want to build, creating a design that would fit with the history and beauty of Palatka, which would not overshadow the area behind the project. They also did another study regarding the marina project, and believe taking the southern marina off the table is not good for any developer. They did move the marina across the street, but nevertheless, the project on its own cannot be justified without the southern marina. They have met with their attorneys and discussed what incentives the City could offer them, as far as tax credits for impact fees, etc. At this point, with the added $3 million for the HUD housing, the project as originally proposed will not happen. Other hotels are coming to Palatka, and due to the timing, they now realize that they can’t build the hotel and conference center the way the City wants in the two-year time frame. They’ve just made more than $1.5 million in renovations and upgrades to the Riverfront Quality Inn. Bottom line, if the City doesn’t offer some compensation, this will take some five years, which poses a problem for him. Elite is behind the project 100%, but they will not be able to start the hotel four weeks from now and then take five years to be able to finish it. Mr. Ashdji stated he was not ready to sit down and negotiate tonight, but wanted to explain the process. They feel this project is going to be good for Palatka and that the hotels and condos are going to create a large tax base and tax revenue. The City has to understand that, as a developer, they need the additional time and help from the City in the form of reduced cost of the land and tax breaks. Mr. Bhoola and he have discussed this project, but as the numbers stand now, it does not make sense for them to do the hotel project as the City wants it. There are many other issues that need to be discussed. |
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Mr. Bush asked why these problems were not brought to the City's attention before today. Mr. Ashdji stated he has been working with his architects and has been doing a lot of work behind the scenes to determine if they can salvage the historic buildings. They have gotten bids on the replacement housing, and did not want to negotiate with the City until they knew what they could do. Mr. Bush asked if they were in a position now to sit down and negotiate with the City. Mr. Ashdji stated they are, and noted the HUD group and the City project are two different projects. |
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Mr. Holmes stated he was still not clear on the problem the high rise was posing for Mr. Ashdji. Mr. Holmes reiterated Mr. Ashdji’s point as he understood it, saying he stated they want the City to take over the HUD building and give it to them, and are talking about a matter of timing or changing the concept of the basic agreement that the City thought they had. Mr. Holmes asked if it was just a matter of when the highrise is put in their possession, or are they talking about whether or not they are able to actually build the substitute housing and convey that to the housing authority in exchange for the highrise? Mr. Ashdji stated he was talking about both. Mr. Holmes reiterated that Mr. Ashdji is stating he would like the City to purchase the building from HUD and convey it to Elite, and let Elite handle building the replacement housing and the transfer of residents from the highrise; Elite would then negotiate how much they would pay the City for the highrise. Mr. Ashdji stated that was correct. Mr. Ashdji stated they have already agreed to pay $3 million for both parcels, but the numbers coming in today are higher. Bottom line, Mr. Ashdji confirmed that they want the City to bear the increased cost of building replacement housing for relocating the highrise tenants. |
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Commissioner Kitchens asked if Mr. Ashdji was an officer in the Elite Corporation and if so, what position does he hold? Mr. Ashdji stated he is in Development, and he finds and purchases properties for Elite and negotiates this type of project, and does cost estimates on these projects. Commissioner Kitchens recalled from previous meetings that Mr. Ashdji stated he agreed to build the housing himself because the City wanted it done in a certain timeline. She stated the City did not put the squeeze on Elite, but Mr. Ashdji volunteered for the project so he could make it faster and more financially feasible for himself. Mr. Ashdji stated that was correct, but when he sent it to Elite, they came in at a much higher cost than he’d calculated. Commissioner Kitchens commented that one of Mr. Ashdji’s selling points for his company was they would take nothing from the City and had all this money to put in to the project, and he’s now saying the market has changed because the real estate market has dropped off. Mr. Ashdji stated that was correct. |
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Commissioner Brown stated everyone knows that, even with repairing an old house, it is going to cost more than expected because when you get in to it, you find things that are not suppose to be there, or something else that needs to be fixed. They should know this because they have done enough projects. Mr. Ashdji stated they have done projects like this where they have demolished buildings but did not have to relocate the people. |
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Mr. Holmes asked if Mr. Ashdji is stating that, if the City is not in a position to adopt the changes that he suggested, are they now advising the City that they are not in a position to go forth with the project? Mr. Ashdji stated they could go forth with the project if the City was willing to give some compensation to adjust for the additional cost. Mr. Holmes stated no matter what form it comes in, either way it involves the City coming up with money that wasn't in the original concept that was discussed, and asked Mr. Ashdji if he’s telling the Commission they are not willing to go forward with the project? Mr. Ashdji stated that was correct. Mr. Bush said if this is the case, and the original agreement is changing, he’d like to sit down at the table with Elite to discuss the new terms they are proposing. It shouldn’t take long to determine whether or not the City can come to an agreement on the new proposal, and if not, they will just part company. |
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Mayor Flagg said tonight’s meeting was not to discuss terms; this was designed to provide an update because there has been a lack of, or next to, no communication. In the previous meeting it was misinterpreted. The Commission was saying the terms of a proposed contract should be ready, so this Commission as well as the public would have a proper update so as to know exactly where we stand. These are the issues that Mr. Ashdji's attorney should be communicating to the City attorney, so the City knows where it stands with the terms. The City would like to know so it can move forward with this project. Mr. Ashdji stated they have the numbers now, so they can sit down and justify what they are asking for. Initially, they didn’t want to ask the City for anything, but now are asking for some concessions. Mayor Flagg stated that would come out in the draft of terms. Today’s problem is that time is passing, and Mr. Ashdji’s attorney has not responded or communicated with the City’s attorney to make sure these things would happen. As the Commission is updated so are the citizens of Palatka. Mr. Ashdji stated he felt this could be discussed between attorneys within the next few days. Mayor Flagg stated the meeting for Commission action is two weeks from tonight, March 22nd. Mr. Ashdji stated he will have his attorney summarize their projected project costs. Mayor Flagg asked if Mr. Ashdji's attorney will attend the next meeting. Mr. Ashdji stated he would ask him to. |
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Mr. Holmes noted that he doesn’t feel the problem lies with Mr. Ashdji’s attorneys, but rather with the fact that neither he nor his group had provided their attorneys with information to relay to the City’s attorney. Mr. Ashdji's attorney is not in a position to make decisions and can only relay what his client tells him, and they try to negotiate from that perspective. The question is whether or not Mr. Ashdji's group is now in a position to give his attorney information that amounts to a position, because it sounds to him as though they haven't had one in the last several months. Mr. Holmes asked if they are at a point where they can give their attorney some instructions to provide the City. Mr. Ashdji stated they have all the information they need now. Mr. Holmes suggested the City look at the original RFDQ. |
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Mr. Bush said they need to know what their bottom line is and what they believe they have to have; if the City does not feel it is close enough to the original plans, then why continue this? Mr. Ashdji stated they are not moving away from the original cost of what they proposed. The City changed the project when it took the southern marina off the table, and now they have to do HUD housing. Mr. Holmes stated the City should look at the RFDQ and see what was put on the table initially, and then see where things stand now. Mr. Ashdji stated they accepted the changes and still want to do the project. |
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Mr. Holmes concurred with the Mayor's suggestion to give Elite’s and the City’s attorneys two weeks to get together so the Commission can understand their position. In the mean time, he, Mr. Bush and Mr. Nelson with the PHA can go back and look at the original RFDQ and see what terms were put out to bid. As to the developer interviews, they were based upon qualifications and not on a particular position or plan. |
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Sam Deputy, 917 Carr St., said he’d spoken to several commissioners who informed him an appraisal of the 100 Block had not been done. He asked who is negotiating price, and if an appraisal was done, who did it? He said the Downtown merchants are expecting the TIF funds to be repaid for the purchase of the 100 Block from the sale of the 100 block, because that money was raised from a special tax to renovate the downtown area. Any proceeds from the sale of that property should be returned to that fund. Also, any tax break that the City gives to a developer should be given to all the citizens of the City who have hung on and worked and are paying taxes. |
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Mr. Bush said this project does not just involve the sale of the 100 Block; there is a bigger picture. This is a redevelopment project. Elite can present their case for concessions to make this financially feasible and the City can look at it. The City set a base on the price going in to this. Per Mr. Deputy’s concern on reimbursing the TIF funds, he has stated at least a dozen times to different people that the first thing that will happen is the TIF will be reimbursed. He hopes that will clear everyone’s mind on that matter. Mr. Deputy acknowledged Mr. Bush has stated that, but now is concerned when he hears that further concessions are being asked for. Mr. Bush stated there is a minimum the City will hold to. Regarding the appraisal, Mr. Bush said the City will have it appraised for bargaining purposes so Elite will know what it is getting. |
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Len Freeman, 422 River Street, asked if this project was economically feasible to do at this time. The city’s only agreement was to enter into negotiations with Elite based on the concept. It is necessary for the City to have tools for negotiating, and it needs to know what the property is worth. He suggested getting at least two appraisals on each of the two properties, and soon, because it takes 45 to 60 days to get an appraisal. He also feels the appraisals should be viewed by a third MAI appraiser in order to know if the numbers are close to valid. The City should encourage HUD to have a current appraisal done as well. He does not think two weeks is enough time to come up with anything involving a price and terms. The City needs a strong negotiating point. |
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John Seeley, 500 River Street, stated people are asking him why he is improving his property on 2nd Street when it is going to become a parking lot. He would like to know what plans that Elite has for their own property, where they were going to build condos. Mayor Flagg stated Mr. Seeley would have to talk with the property owners, that the City was not in the position to address what their plans are. |
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Mr. Holmes stated he does not contemplate that a deal between the City and Elite can be negotiated in two weeks. His point was that within two weeks they would come back and advise the Commission of what they thought they would have to have to do in order to go forward with the project. If they are too far off from the original RFDQ, then the process is out of the question and the City would have to go out for another bid. Mr. Holmes noted the Clerk had just provided him with a copy of the RFDQ, and it gave the developer the option of either building alternate housing or paying for the highrise at the minimum appraised value of 2 million dollars. If the developer comes back and their position is that whatever they do regarding the highrise it isn't going to amount to 2 million dollars, it would appear that they have changed the negotiations to a point that is not responsive, and the final review would not be consistent with the RFDQ that was put out. The City had another bidder and that bidder might feel that, by the City departing so far from the terms they said the minimum bid had to meet, they might feel the bid process was flawed. In two weeks the City should know where they are. |
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Christy Sanford, 312 Dodge Street, asked how many people were still living in the high rise, and if the people being relocated were going to be relocated in the City or County? She asked if HUD kicked in money for the development of the building. |
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John Nelson, Executive Director of Palatka Housing Authority, stated they have already started to relocate families from the highrise. There are relocation funds that were appropriated by HUD. As to whether or not HUD kicks in money for development, the answer is no. The majority of the families have been relocated within the county. The residents are fee to move wherever they want; the PHA pays for the relocation. Mr. Nelson stated that the housing authority does have an appraisal on the building, which is older than the 90 days and needs to be updated. He does not feel they are strong-arming folks. The RFDQ states it is an either/or situation, and they were operating on the “or.” The agreement is that they would not sell the building without having a place for the families to move to. |
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Len Freeman asked if HUD or PHA would be able to get the appraisals updated, and how long would that take, and whether the PHA would be involved directly in the negotiations with the City’s negotiating team, and if an updated appraisal will be available to City negotiators for reference during negotiations. Mayor Flagg stated the Palatka Housing Authority has been represented since day one. Mr. Freeman asked how many people the HUD housing was designed for and how many are there now? Mr. Nelson stated yes, they can get the appraisal redone. HUD has approved the sale of the building at a minimum price; the appraisal came in slightly higher. In order to convince HUD to change that number, it will be a long, long, long process. The building holds 100 families, and there are between 50 and 60 remaining. They have negotiated 44 replacement units. |
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Debra Miles, 414 River Street, said she would like to see the City move forward quickly and sensibly. Months have been lost because people have not done what they have said they would do in a timely fashion. She is looking to improve her store and or move to another location and she cannot make a sensible decision because she does not know what is going in. She wants to know in 2 weeks. |
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Commissioner Brown stated the City should let the attorneys get together and get back to the Commission in 2 weeks. That is what they were hired to do. Commissioner Kitchens stated, given what the Florida Legislature looks like they are getting ready to do, there won’t be any tax base to expand. Commissioner Norwood stated the City attorney has made it very plain; they need to follow the original plan. Commissioner Sanders concurred on all points. |
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RECESS |
A recess was called by consensus of the Commission at 7:44 p.m. |
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RECONVENE |
Mayor Flagg called the meeting back to order at 7:55 p.m. and continued with the Orders of the Day. |
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ADOPTION OF 2007 COMMISSION CALENDAR |
Discussion & consideration - tabled from 2/22/07 - The City Clerk stated changes have been marked with an asterisk. The Impact Fees introduction meeting has been moved from 3/8 and shows it was tentatively scheduled for either April 12th or May 24th, but today she received word it will be held on May 24th, and will make that revision. She noted the Commission might want to look at moving the Needs Assessment Workshop also scheduled for that date. The Comprehensive Plan Workshop on May 31 stays as is, and all Comp Plan workshop times have been changed to 5:30 p.m. The Comprehensive Plan Workshop#1 was moved from March 5 to March 20. An additional workshop has been scheduled for April 10 at 5:30 p.m. at the Price Martin Center. The July workshop was moved to August 2. Also, instead of the Comp Plan going to the City Commission on August 9 as originally scheduled, it is now scheduled for September 13 at 5:30 p.m. at Price Martin. The draft Comprehensive Plan update transmittal to DCA is scheduled for September 13, as long as it is completed. That is the target date. |
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Mr. Pappas noted the April 10 workshop was moved to April 17 to allow for Spring Break. Commission Consensus was received to amend the proposed calendar to note the April 10 workshop will be held on April 17. |
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Commissioner Kitchens moved to adopt 2007 Commission Calendar. Commissioner Brown seconded the motion, which passed unopposed. |
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ADMINISTRATIVE REPORTS |
Planning Director Geoff Pappas stated the Comprehensive Plan Workshop is being advertised and is set for March 20 at the Price Martin Center at 5:30 p.m. |
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The City Clerk advised the Commission would each be asked to submit a name for recognition in honor of Women's History Month at the March 22nd meeting. |
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COMMISSIONER COMMENTS |
Commissioner Kitchens noted that Mrs. Miles had asked that the Commission move quickly and sensibly, but sometimes that is not possible. The Commission has to take time and look at all the issues to be certain things are done right. |
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Commissioner Sanders stated he would be attending the Firemen's Pension meeting in Tallahassee next week. |
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Mayor thanked staff and volunteers for the participation in the Mayor's reception. |
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ADJOURN |
AT 8:03 p.m. upon a motion by Commissioner Brown, seconded by Commissioner Kitchens |
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