HomeMy WebLinkAboutCCM-11-06-91CARMEL CITY COUNCIL
SPECIAL MEETING MINUTES
NOVEMBER 6, 1991
ONE CIVIC SQUARE/COUNCIL CHAMBERS
7:00 P.M.
A special meeting of the Carmel City Council was called to order by
Mayor Dorothy J. Hancock. Council members in attendance were Lee
Lonzo, Annabelle Ogle, David Adams, Alan Potasnik and Tom Irvin.
Minnie Doane was absent. City Attorney Steve Andrews and Clerk-
Treasurer Susan W. Jones were also in attendance.
Mayor Hancock explained the purpose of this meeting was to present
an alternative means of financing the purchase of the Civic Square
Centre other than through the Re-development Commission and then
turned the meeting over to Andrews for a summary.
Andrews stated that a year ago he and Roger Umbaugh had negotiated
what he thought was a pretty good deal on the purchase of Civic
Square Centre. Andrews summarized the steps that had been taken to
date. Andrews said the building was financed through a bond
anticipation note (BAN). The Council then decided to create a
study committee and determine what the best uses were for the
building and after months of study came back to the Council with a
report that was adopted by this Council. At that point in time,
the Council instructed the City Attorney (himself) to proceed with
the most expeditious manner of finalizing the acquisition of the
building and getting at least the teen center up and operating and
in that light Mayor Hancock and he were able to meet with bond
counsel and the fiscal consultants and discuss various options. He
said he then came back to the Council with the recommendation of
the Redevelopment Commission and started to proceed with that and
then was advised by bond counsel that quite honestly there was a
better and faster way of going if it was this Council's
determination and that would be a COIT Bond.
Andrews said he and bond counsel had been busy producing a COIT
Bond ordinance and that was the reason for the meeting tonight.
However, after consulting with Mayor Hancock and sitting back and
thinking about this because the City has been on a fast track these
last few days, it became sort of obvious that the Council could get
this COIT bond done before the end of the year and Umbaugh even
called it a "slam dunk" as far as getting it done if the Council is
so inclined but there are some other things he thought about that
he thought this Council should reflect on.
Andrews stated one thing is the impact of changing "vehicles" or
the impression that this gives people. Andrews said he didn't
think the ultimate goal was not to just buy the building and
thought the goal was really to have City, not-for-profit charitable
organizations in that building. The concept of this building was
really what was important. Andrews said by slam dunking this bond
down the City's throat that perhaps we're doing more harm than good
and perhaps alienating some people who are not alienated at this
point and sending a message that shouldn't be sent or is not
intended to be sent. In that regard and after discussing it with
the mayor and others recommended to the Council that we go back to
the Redevelopment Commission and allow the Commission to function
as was originally intended. Andrews said he felt that if the
Council proceeds with this COIT Bond, which is fiscally
responsible, and have back-up to support that claim, we have
insured that this project is probably going to be killed.
Andrews thanked everyone for coming but felt a motion to adjourn
was in order and apologized for the inconvenience.
Councilor Potasnik said other than Councilor Lonzo, no one has made
a stand on this building, as he had and made that stand in a
primary election and hasn't backed down on his feelings about the
building in a general election and prevailed in both. Potasnik
thought that everyone could see the benefits in the strategic
location of the building. Potasnik called it the gateway to our
beautiful civic square campus and thought everyone could see the
benefits of the center and in the words of a newly elected council
person would hope that it is time for everyone to pull together.
Potasnik said he heard from the people in his district yesterday
and in the spring and supported his stand on the issues. Potasnik
believed whether it is the current Council or the future Council
again, asked that it be withdrawn and sent to the Redevelopment
Commission. Potasnik said everyone needs time to reflect on this
issue. Potasnik said he wanted to go along with the recommendation
of the city attorney.
Councilor Lonzo said he felt he had poured a lot of himself into
this project and, despite that fact, felt this was the right way to
go. Lonzo said the ultimate goal he had all along was to put a
teen center, senior citizen center and a cultural center into that
building. Lonzo said last spring when there was a group of people
who came out and set together an agenda to get rid of all of us and
they campaigned and used this building as an issue and four of them
got through the primary. Lonzo stated he was ready to look for any
vehicle to slam dunk this building and hopefully get a program in
place by the first of the year so it would be very difficult to
take apart. Lonzo said that, since that time, at least one member
of that group, Tim Story, has shown a lot of courage and has come
forward and said it is time to come together on this issue. Lonzo
said he thought the use had been studied enough, but Story felt a
need for more, particularly in the area of financing, and he didn't
have a problem with that. Lonzo said he thought the Redevelopment
Commission was a good idea and continues to be a good idea. Lonzo
said it is going to take cooperation from a future Council for his
vision of that building to come to fruition. Lonzo said as much as
he would like to brag to his family that the whole thing was
accomplished while he was on City Council he was satisfied, at this
point, to say he is real proud this Council got it off the ground
and very hopeful that the future administration would put something
good in that building for the citizens of our fair community.
Councilor Irvin commented about the study committee and also about
hearing from many people concerning the use of the building and
expressed their desires both pro and con on the building that he
respected that debate. Irvin said a City Councilman who had served
on the Council for 12 years came to the Council and gave them some
real sound reasons why it would be wise for the City to purchase
that property. Irvin stated the City was going to grow and it
would be needed. Irvin said that the majority of people he has
talked to are in favor of this building. Irvin said he was still
in favor of purchasing the building. Irvin said he didn't want the
future Council to think he was trying to push anything down their
throats because he was not. Irvin said if he could get it off the
ground he hoped the future Council would carry it on through.
Irvin said if it turns out wrong he is willing to take his share of
the blame and if it is good for the City we'll all share it and
hoped that the new Council doesn't let it get away.
Councilor Ogle said she didn't think she had a lot to say about
this building very often in the public, but had been very
supportive of this purchase since the beginning. Ogle said anytime
a growing city has a chance to purchase a piece of property right
at the center of its governmental square that it certainly should
be taken advantage of and there is going to be a good need for that
down the road. Ogle said she was very disappointed because she was
exited about this proposition. She said she had kids and
grandchildren and she had been in this community a long time and
thought, finally, there was going to be a place to go but could
understand the attorney's recommendation. Ogle said it probably
would have been taken that this Council was trying to force feed
this to somebody. Ogle agreed that the Redevelopment route should
be followed but hoped the public knows at least several Council
members are 100% behind this project.
Councilor Adams said the Council talks about this as if we are
going to purchase this building and it was his understanding that
we already have, and all we are trying to do is find a vehicle to
finance the purchase. Adams said the question he had was is there
a difference in terms of economic impact to the City in terms of
going one route or the other. Adams said he would have to decide
if he wanted to be part of a group that was perceived to have
shoved something down the community's throat or would the future
group want to be perceived as a group that denied the community
something that it desperately needs.
Adams asked Andrews if there were any advantages one way or the
other with regard to the financing with what was brought before the
Council tonight. Andrews said, in fact, this is an appropriate
time to be doing a purchase through a bond because the interest
rates are low and they have gone down again today. The rates are
as low as they are probably ever going to be and that is a
consideration.
Lonzo said he was understanding Andrews to say that if the Council
were to float a bond either COIT or Redevelopment that they would
be comparable rates. Andrews said yes, however it would make a
difference if it was taxable or non-taxable.
Adams said he noticed today that the discount rate was 4.5% which
was the lowest rate in 18 years by the Federal Reserve system and
that obviously would affect a bond rate and make this bond easier
to sell. Adams said we are talking about a vehicle that would take
advantage of this timing. Adams asked Andrews if he had a feel for
how long it would take the Redevelopment Commission to complete its
task. Andrews said that depended on how hard it was pushed.
Andrews said that if they met weekly it could be done in 90 days or
something like that. Bond counsel had originally predicted that if
Redevelopment was kept on a fast track a Redevelopment bond could
be done in 60 days.
Potasnik then stated that the two forums that were held and allowed
public input for this project were strongly committed to getting
behind this community center and that is the reason, to a great
degree, that the Council has proceeded along the lines that they
have. Potasnik said that rates being what they are that interest
rates do change and that things can be hurried up or slowed down
and hampered in a reverse fashion. Potasnik said that from what he
has heard from the incoming Council that who have spoken with
regards to this that they would approach this with an open mind.
Potasnik said he would be in a position to take them at their word
that they would pick up the ball from this Council and would
proceed with this in an expeditious fashion. Potasnik said he
hoped that after the first of year when all the "I Do's" are said
on the Bible that he doesn't hear the building is up for sale.
Irvin said that as a Council they have a responsibility to do their
duty until December 31, 1991 and didn't want to pass on anything or
delay it just to pass along a problem to the next administration.
Irvin said if there is a responsibility to fulfill here then let's
do it. Irvin said he remembered when he took office four years ago
the building he is in right now, City Hall, was done and that he
absolutely had no say in anything that happened in this building.
Irvin said it was just passed along and he assumed that. Irvin
said it is the same with this Civic Square Centre and that the
plans are already done, and this Council shouldn't pass it on to
someone else.
Potasnik responded by saying he didn't look at it as a problem or a
burden. Potasnik said he looks at it in reverse and considers it
an asset and in his opinion there are certain questions that need
to be answered in order to acquire that asset. Potasnik said he
believed totally in what he said about being in power until
December 31st and there are issues that are going to come up
between now and then that this Council will have to deal with.
Potasnik maintained there are still questions that have to be
answered with regard to this building.
The mayor then adjourned the meeting.
Approved:
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ATTEST:
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