M IN U T E S
The Village of Evendale
Special Council Meeting
February 23, 2006
The Village of Evendale held its Special Council Meeting. The meeting was called to order by Mayor Don Apking. Upon roll call, the following council members were present: Mr. Bill Puthoff, Jr., Mr. Stiney Vonderhaar, Mr. Jeff Albrinck, Mr. Chris Schaefer, and Mr. Doug Lohmeier. Mrs. Carolyn Smiley-Robertson was absent and excused. Also present were: Chief Fiscal and Accounting Officer, George Snyder; Village Engineer, James Jeffers; Assistant to the Mayor, Jack Cameron; Economic Director, Linda Fitzgerald; Village Solicitor, Tim Burke and Village Clerk, Michelle Ficke.
Mayor Apking asked for a motion to amend the agenda by moving #06-05 to be the first ordinance on the agenda. Mr. Puthoff made a motion to amend the agenda as requested, seconded by Mr. Albrinck and unanimously approved.
Michelle Ficke received correspondence from Linda Fitzgerald provided at the request of the Evendale Community Improvement Corporation regarding the Evendale Business Commons Park Tax Increment Financing Bonds. Mrs. Ficke read the correspondence which stated that “at their February 20, 2006 meeting, the Evendale Community Improvement Corporation unanimously recommended that the Evendale Council authorize the issuance of bonds for the Evendale Business Commons Tax Increment Financing project at their February 23, 2006 meeting.”
Mayor Apking presented Ordinance 06-05, PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $4,385,000 OF TAX INCREMENT REVENUE NOTES BY THE VILLAGE OF EVENDALE, OHIO, IN ANTICIPATION OF THE ISSUANCE OF REVENUE BONDS, FOR THE PURPOSE OF FINANCING CERTAIN PUBLIC IMPROVEMENTS, AND DECLARING AN EMERGENCY. Mr. Schaefer expressed his concerns. He said when the project began there was a requirement on that site was 50% be offices. Then they came back an only wanted 30% to be offices so council changed the zoning for that area. We also had a public meeting and there were charts showing the benefit to Evendale being $330,000 a year from the earnings tax. The Poggemeyer estimate was $120,000. The change in this number, Anchor suggested, was there would be larger office buildings constructed and Poggemeyer thought only smaller ones would go in there.
Mr. Schaefer expressed other concerns about what was promised and how things had changed in the process. He suggested a Development Agreement at the last council meeting and one has been developed. Mr. Schaefer wanted included in the development agreement that Anchor would build one small spec office building. His concern is that there is no bargain for exchange for giving Anchor $4M dollars to do the infrastructure. The office building was the driving force at the outset of this project and that is where the benefit to Evendale was coming from and we have no assurance of office buildings.
Mr. Lohmeier said that it was his understanding that in the PBD there is groundwork that a certain number of offices have to be built before all of the retail can be built out. Tim Burke said that he did not believe that the language does not clearly require that any office building be built prior to the construction of the second big box. There is aspirational language but he does not think it is a requirement. Susan VanAmerongen, Planning Commission member, said that she agreed. Dick Shaffer, Planning Commission member, stated that the intent to tie in office with retail is there however it can be read two ways.
Mr. Lohmeier asked other council members what their understanding was of that portion of the PBD agreement. Jeff Albrinck stated that he agreed with Dick Shaffer’s comment and in reading it, he took it as that was the intent. Mr. Lohmeier asked if Planning Commission was comfortable with the PBD agreement at this point and time. Susan VanAmerongen said that Mr. Schaefer came up with a brilliant compromise as far as this is our opportunity with the TIF financing to put some language in that says in order to get the TIF financing we need a spec building in place at a certain point in time or some sort of statement that the business portion of the development will go through.
Mayor Apking stated that he thought it was too late. Over the past year he and Jack asked Council on several occasions to come up with ideas for spending our money. The $4M dollars is not being given by Evendale, it is being given by the Princeton School District. Anderson Township is getting $122M dollars in TIF financing. If TIF is so bad why would the school board approve it and why does the state legislation encourage townships, villages and cities to apply for these.
Mr. Schaefer said that he suggested that we have public roads in the Evendale Commons project so that Evendale can deal with the owners once they are sold off. Just like any subdivision, the developer pays for the roads to be build. Anchor also promised to redo the entrance ways on Glendale-Milford and Reading Road at their expense and do the alterations to the islands on Reading Road.
Mayor Apking said he was against the TIF until he found out more about it and how many different areas are utilizing TIFs. Council has already voted on and passed the TIF ordinance and we are just rehashing things. Princeton School District has already approved the TIF.
Mr. Schaefer feels that it would be appropriate for the developers to step forward and say in exchange for the $4M dollars that they are getting through Evendale that they’ll put up a spec office building.
Dean Miller from Miller-Valentine spoke. He said he read the language in the PBD and it is not clear. He stated that The Evendale Commons, LTD which consists of a partnership between Anchor Developments and Miller Valentine, are obligated to office. The property is zoned for office on the twenty acres in the rear. The function of the market is to put the infrastructure in place, and when the retail is in place it will attract the office tenants. There is a marketing effort going on. What is of benefit to the Village of Evendale is the earnings taxes. Empty buildings do not create earnings tax. Filling the building does. No one wants to see the buildings filled more than Miller-Valentine and Anchor.
Mr. Lohmeier said Miller-Valentine and Anchor are very reputable companies. The money that we have freed up by the TIF financing allows them to bring in the people we want to see over there and they are not in such a hurry to unload a piece of property and building something there.
Matt Grever, Anchor responded. He said that when they were asked about TIF they said they were not requesting TIF as part of the zoning. If we collectively in cooperation and partnership with the Village determine later that it is a mutually beneficial thing then why not do it. The office component of the project benefits the Village proportionately much higher than retail because of the payroll aspect. The TIF gives Princeton Schools a third of what they would have gotten and it’s all found money because that property was not generating any real estate tax. Everyone is benefiting from the TIF. We brought Miller-Valentine in, and we are 50-50 partners with them now, because of their expertise in the office market. They are one of the best office developers in town. The office portion represents 25% of the site. We will do everything
within our power to get the property to an economic stance where it is making everyone money. We need patience and understanding. The marketing process is well underway and it is premature today to say where, when and exactly what is going to get built. It is zoned for office so it cannot be anything but office. If we have the right level of tenant interest and it is partially pre-leased, we will build a spec office building. We are morally and economically motivated to do that. We are fully committed to this project.
A motion to read Ordinance #06-05 by title only was made by Mr. Vonderhaar, seconded by Mr. Puthoff and unanimously approved on roll call. A motion to suspend the second and third readings was made by Mr. Albrinck and seconded by Mr. Vonderhaar. Mr. Vonderhaar, Mr. Lohmeier, Mr. Puthoff and Mr. Albrinck voted yes. Mr. Schaefer voted no. The motion to suspend the second and third readings of the ordinance failed. Mayor Apking declared this the First Reading of Ordinance #06-05.
Mayor Apking presented Ordinance #06-09, AN ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO A DEVELOPMENT AGREEMENT WITH EVENDALE COMMONS, LTD. REGARDING THE CONSTRUCTION OF PUBLIC IMPROVEMETS ON AND IN THE VICINITY OF THE EVENDALE COMMONS SITE AND DECLARING AN EMERGENCY. Mayor Apking mentioned that had just received the Development Agreement and did not have sufficient time to read it thoroughly. Mr. Lohmeier made a motion to table Ordinance #06-09 and the motion was seconded by Mr. Vonderhaar. Mayor Apking suggested that we read it tonight and act on it at the March 9th, 2006 Council Meeting. Mr. Lohmeier withdrew his motion to table the ordinance. Mayor Apking asked for a motion to read Ordinance #06-09 by title only. Mr. Puthoff made a motion to read the ordinance by title only and it was seconded by Mr. Vonderhaar. The motion was
unanimously approved on roll call. Mayor Apking declared this the First Reading of Ordinance #06-09.
James Jeffers stated that the packages are out for bid right now and we are receiving the bids next week these four portions that will be submitted to you at the March 9th Council Meeting.
Mayor Apking presented Ordinance #05-53, AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH MARKETING DEVELOPMENTS, INC. (“MDI”) FOR THE PREPARATION OF A MARKET ANALYSIS, STRATEGIC INVESTMENT/REINVESTMENT PLANNING AND MARKETING PLAN FOR THE VILLAGE OF EVENDALE, PROVIDING AN APPROPRIATION FOR SUCH CONTRACT AND DECLARING AN EMERGENCY.
Mr. Lohmeier pointed out some concerns. In Section 1 of the ordinance it refers to the proposal dated October 31, 2005. The latest proposal is dated February 1. There are some things in the proposal that Mr. Lohmeier is not comfortable with. Mr. Burke pointed out before the meeting that this is not the actual agreement. The ordinance states “to execute a contract with MDI consistent with the proposal.” Mr. Vonderhaar expressed a concern on open ended items in the proposal. Mr. Vonderhaar had a copy of the proposal dated February 21, 2006.
Mr. Cameron clarified that the February 1 is the last draft. The date in the footer of the document displays the date that the word document was printed off the computer. There is no change in Phase I, II, or III. They just modified the areas that they are going to look at and that is what increased the price. The way they have approached things has been the same since the start.
Mayor Apking said that the ordinance tonight simply authorizes the Mayor to enter into contract with MDI. The specifics of the contract will be negotiated. Mr. Schaefer explained that when you have an agreement that is fairly long there could be some minor changes that you discover at the time you are executing the agreement.
Mr. Lohmeier expressed a concern on the ongoing fee for consultation. The Poggemeyer agreement had a flat fee for consultation. Secondly, the branding issue is still in the agreement and we decided to look at a different company to look at branding.
Mayor Apking said that this study would look at some of the properties that we think could be developed in a fashion that marketing experts could tell us that they think the properties are marketable and then we would rewrite our zoning code. We need to get more restrictive wording in the agreement.
Mr. Puthoff said that we cannot get to the branding phase until we get a realistic analysis of what we have and the uses of what properties could be.
Mr. Albrinck said he view the agreement as a letter of intent giving us the parameters under which we will negotiate a better defined contract that will spell out your concerns and the open-endedness can be addressed as we feel appropriate. This ordinance gives the Mayor the authority to do it within this range but certainly do not accept it under these terms. This is nothing but their proposal and not a contract that has been negotiated.
Mr. Puthoff said that what he is hearing from Mr. Lohmeier is that MDI is not the appropriate company to do the branding portion. Mr. Schaefer suggested that we authorize the Mayor to enter into a contract for six months only and then after Phase II have a go or no go. It would come before Council to approve or disapprove moving forward after Phase II. Mr. Lohmeier said he would like to get Council approval after each Phase. This could be worked into the ordinance.
Mr. Schaefer made a motion to table Ordinance #05-53 until the March 9th Council Meeting. The motion was seconded by Mr. Lohmeier and unanimously approved on roll call. Mayor Apking declared Ordinance #05-53 tabled until the March 9th Council Meeting.
Mayor Apking asked Council to contact Jack Cameron with ideas and concerns. Mr. Burke said it would help him to know what phases we are approving in the initial ordinance. It was determined that they would need Council approval after each phase. An action by council would be needed after each phase and could be approved by a simple motion.
Mr. Vonderhaar said he did some homework and Springdale is using MDI and they are satisfied with the work they have done so far. Mr. Burke asked what amount should be appropriated in the ordinance at this point. Mr. Snyder said that all monies must be appropriated. Mr. Puthoff suggested that we put enough money in for the first two phases and then we could evaluate where we are and we can see what we decide at that point. We can pass another ordinance with an appropriation on it for an additional phase if that is what we decide to do.
Mr. Schaefer said you can put a cap on the amount of money not to exceed a certain amount. Then they cannot spend any more monies without the approval of Council.
Mr. Burke said we can amend the ordinance at the March 9 meeting. He asked for time to talk to George and Jack to determine a dollar amount for the ordinance.
Jim Cole spoke and said he believes on a per capita basis that we spent more money than anyone in the State of Ohio on consulting and studying for the Village of Evendale. He asked that Council take their time and get this study right because we have spent lots of money that took us no where. Consultants do lots of things but they cost a lot of money and rarely add value to the issue on the table.
Mr. Puthoff said that based on what we have seen already, MDI has something to offer to us. Mr. Schaefer said he is in agreement with Jim Cole. Planning Commission has properties that need to be rezoned some of which Evendale owns. We need an expert to validate what the proposed zoning changes should be and someone experienced in marketing is very valuable to organize and have logic behind the changes. Mr. Schaefer said he would like to support this.
Mr. Lohmeier said we must act on the consultant report or it is not worth anything. Mr. Albrinck said the focus is to take it from A to Z if we enter into this. MDI is a part of this whole plan.
Other Items included:
Mr. Puthoff reminded council that he is expecting a child in about a month so his availability is questionable depending on its arrival.
Mr. Vonderhaar shared that Council has correspondence on their desk from ICRC in regards to franchising to look over. General Electric is cutting 800 jobs in reference to the F35 jet engine project. Cincinnati is sending representatives to Washington DC to petition the project and Mr. Cameron is going. Mr. Vonderhaar asked to go as well. Council supported this idea.
Mr. Vonderhaar asked that the Mill Creek Conservancy District be put on the Agenda for next month.
There being no further business to come before council, a motion to adjourn was made by Mr. Vonderhaar seconded by Mr. Puthoff and unanimously approved. Council adjourned at 8:05 pm.
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Mayor
Attest:
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Village Clerk
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