SPECIAL COUNCIL MEETING
A Special Council Meeting was held on October 19, 1993 at 7:30 p.m. with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Hutchison, Mr. Salters and Mr. Hare.
Council staff members present were Mr. O'Connor, Mr. DePrima, Mrs. Boaman and Mr. Rodriguez.
Council President Christiansen stated that the purpose of the Special Council Meeting was to conduct a public hearing on the proposal for the sale of the City of Dover lot adjacent to City Hall. The public hearing was duly advertised for this time and place and written testimony has been accepted prior to the public hearing. Mr. Leary moved that the record reflect that written testimony has been received from Crawford J. Carroll, the Greater Dover Committee, Ben Bowings, James Burcham and Mrs. Durward Matthews. The motion was seconded by Mr. Hutchison and unanimously carried.
Council President Christiansen requested that the DDDC outline their proposal.
Mr. Wayne Holden, Vice-Chairman of the DDDC, explained the specifics of the proposed Option Agreement with the Krapf Corporation on the sale of the lot adjacent to City Hall. Mr. Holden reminded Council that the Gallery Study, prepared in 1989 for the City of Dover, targeted the downtown Dover area designated for development as that area between the railroad tracks and the St. Jones River and from Water Street to the Wesley College block on Division Street. The City parking lot, as a suggested area for development, originated in the Gallery Study where Urban Partners cited this parcel as a choice piece of property for development. He stated that the downtown merchants receive only a 3.5% share of the economic trade taking place in the City of Dover. In order to increase this percentage and to cause businesses to locate downtown as opposed to locating on the peripheral areas of Dover, the Gallery Study encouraged the City to make incentives available and/or to help developers to secure select property for development. They recommended that these properties have the same amenities that peripheral properties around the fringes of Dover would be able to offer. The DDDC was charged by Council to carry out the charges expressed in the Dover Central Plan Area Study. In doing so, the DDDC members have worked for the past 18 months attempting to develop many sites within the targeted area. They have been unable to secure interest in sites other than the parking lot adjacent to City Hall. The DDDC explored the possibility of lease versus purchase and found that the economics of a lease, as it would pertain to the City parking lot, are not viable. A developer planning improvements ranging from $7.5 million to $12 million wants to own the property. The DDDC will continue to look for potential developers for other sites in the targeted area. However, they strongly recommend that the City take advantage of the opportunity to develop the City parking lot while there is potential interest. The proposal is particularly appealing since it will bring 300 to 400 new jobs to the downtown area.
Mr. Holden stated that the DDDC took into account all concerns and suggestions stemming from the previous public hearing and attempted to address them to Council's satisfaction. The proposal has the unanimous support of the DDDC.
Council President Christiansen declared the public hearing open.
Ms. Nan Hagen, Project Manager for Main Street Dover, relayed the support of the proposal from Main Street Dover. She emphasized the need to bring more people to the downtown area. Ms. Hagen stated that to date, Council has done everything right; they commissioned a revision of the Comprehensive Plan which spelled out the need for a more detailed plan for the downtown core area which was accomplished; they created the DDDC which established the necessary incentives and acquired property to benefit downtown Dover. The Council has supported Main Street and everything is moving in the right direction. Ms. Hagen reminded Council that the addition of approximately 300 new jobs to the downtown area could have a tremendous positive impact to downtown and urged Council to support the proposal.
Mr. Tom Smith, owner of Delaware Made in downtown, stated that the proposed project could have a very positive impact on his business. He, therefore, has followed the project through public hearings and has attended DDDC meetings where the project has been discussed in detail. He considers the project to be an opportunity not to be missed. The economic benefits from 300 new employees in the downtown area is too great for the City to deny. Mr. Smith urged Council's support of the proposal and warned that a long delay could jeopardize this project. Referring to a suggestion by some that the matter be placed on a ballot for a public referendum, Mr. Smith stated that this is a deliberate attempt to defeat the project. To ask the public to determine if a property should be sold or leased would set a very dangerous precedent. Mr. Smith reminded Council that they are elected to make decisions of this nature.
Crawford J. Carroll of 115 Park Drive referred to his concerns with the proposal, as outlined in a letter submitted to City Council (on file with the City Clerk's Office). Mr. Carroll voiced objections to development of this lot, stating that they should concentrate their efforts on properties located between State Street and the railroad tracks. The City lot is located in the governmental complex and should remain as governmental property. Mr. Carroll stated that the City will need this property in the future for further expansion of City Hall. Responding to questions by Mr. Carroll, Mr. DePrima stated that the attachments to the option agreement have not been updated since adjustments have been made. Mr. DePrima stated that the Planning Department will have the revised attachments very soon and they will be available to the public.
Mr. Joe McDaniel spoke on behalf of the Greater Dover Committee. The Committee expressed their support for the concept of a major office building for downtown Dover, feeling that it would be a benefit to the revitalization of our main street and the core of the City of Dover. The Committee does not favor holding a referendum on this matter.
Mr. Bill Witham, Chairman of the Dover Parking Authority, relayed that the Authority sees no impediment to the project but they are concerned about the loss of revenue to the Authority from the loss of rented parking spaces from this lot. The Parking Authority has pledged the future revenues from this to service its Parking Revenue Bonds, Series 1988. Mr. Witham asked that if the City agrees to sell the lot, that they adopt a proposed Resolution that would assure that the City would provide adequate assurances that alternative revenues will be made available to secure the Bonds. Although there may be potential pitfalls, the Authority feels that overall, the proposed project will help to revitalize downtown Dover.
Mr. Francis Weyandt of 54 Sackarackin Avenue advised Council that he was an original member of the DDDC. Over the years, the City has commissioned many studies for various projects. One such study was prepared for the downtown core area and is known as the Gallery Study, which stresses that Dover should confine its boundaries to fill in vacant spaces and encourage business in the core area of downtown. Mr. Weyandt reminded Council that when consideration was being given to expanding the City Hall building, they were quoted a price of $3.4 million. This cost was too significant so Council chose to purchase the WSFS building at a cost of $1.3 million. If the lot is sold, Mr. Weyandt suggested that the money be placed in escrow and designated specifically to meet the debt incurred by the Parking Authority. Referring to possible environmental problems in the lot, Mr. Weyandt projected that major concerns will not be found, since the public monitored what was buried in the lot.
Mr. Tony Galla of 925 Woodcrest Drive stated that he found it refreshing to have open space in the downtown area. He stated his doubts about the promise of approximately 300 new jobs and suggested that the City maintain ownership of this prime parcel. Mr. Galla suggested that a public referendum be held to determine the wishes of the citizens.
Mr. Javan Davis of 635 Nimitz Road stated his opposition to the proposed sale of the City lot. He stated that the City will need this property in the future and should maintain ownership of the parcel. Mr. Davis also suggested that a public referendum be held on this issue.
Mr. Ben Bowings of 198 Haman Drive stated that we are a government of representatives. City Council represents the citizens of Dover and he felt that it is the Council's responsibility to vote on this issue.
Mrs. Rexene Ornauer of 217 Mifflin Road voiced her opposition to the proposal of holding a referendum to determine if the City land should be sold. Those that vote in such referendums are a very small minority of those eligible to vote and those that vote normally do not have access to the information needed to make an educated decision. City Council has full access to the proposal, the negotiations that have taken place, and the compromises and changes that have taken place in order to consider the option agreement. She stated that Council members are the people most knowledgeable of the facts surrounding the proposal and are elected to make such decisions for the citizens of Dover.
Ms. Jean Shane of 59 S. Governors Avenue stated her total support for the proposal. Ms. Shane not only lives in the downtown area, but she also co-owns a business in the area. She stated that downtown businesses desperately need more people downtown. Referring to comments of many that the City should hold onto this very valuable property, Ms. Shane reminded Council that property only becomes valuable if it is sold. Ms. Shane also referred to the possibility of environmental problems, stating that if there are environmental concerns, the problem is there regardless of ownership of the property.
Ms. Muriel Schwartz of State Street stated that her father opened a theater on Loockerman Street in 1917. She and her family have been very active in the Dover community. The City is experiencing rapid growth and she stated that we must move forward in a timely manner. She urged Council's support for the proposal to sell the property.
Council President Christiansen declared the public hearing closed.
Mr. Salters moved that Council acknowledge the comments made by the public and that the results of the public hearing be referred to the Legislative and Finance Committee for consideration of the option agreement during their October 26th meeting and then to Council for a final decision. The motion was seconded by Mr. Leary.
Mr. Tudor questioned the need for referring this matter to the Legislative and Finance Committee. He reminded Council that this issue has been reviewed by the committee and by City Council on numerous occasions. It was his feeling that referral to the committee is only a method to delay a decision and he feared such a delay would ultimately effect the developer's ability to purchase and develop the property.
Council President Christiansen explained that the committee could deliberate the proposal for further clarification of all possibilities.
Since this meeting is an official Council Meeting and Council is legally permitted to take action on the issue, Mr. Salters withdrew his motion as did Mr. Leary his second.
Mr. Salters moved for approval of the following:
(1)That based upon the public comments, written testimony and the deliberations of the Legislative and Finance Committee, the Council approve and execute the Option Agreement with Krapfcandoit for property located adjacent to City Hall; and
(2)That Council adopt a Resolution relating to the debt service to the Parking Authority; and
(3)That the Option Agreement be changed from prohibiting the resale of the property to the State of Delaware to prohibiting the resale of the property to any tax exempt entity (excluding the City of Dover).
The motion was seconded by Mr. Leary and by a roll call vote of five (5) yes, four (4) no (Mr. Tudor, Mr. Pitts, Mr. Hare and Mr. Christiansen) the motion was approved and the following Resolution adopted:
WHEREAS, the City Council of the City of Dover believes that it is beneficial to the City to utilize the parking lot land east of City Hall for developmental purposes; and
WHEREAS, the City has entered into an Option Agreement with Krapfcandoit Company for the purchase, sale and development of said parking lot land; and
WHEREAS, the City has an agreement with the Dover Parking Authority whereby the Dover Parking Authority manages the said parking lot land and derives the revenues which have been pledged by the Parking Authority to service its Parking Revenue Bonds, Series 1988 (the "Bonds").
NOW, THEREFORE, BE IT RESOLVED that at the time said parking lot land is taken out of service as a parking facility operated by the Authority, the City shall provide adequate assurances to the Authority that alternative revenues will be made available to the Authority at least equal to the parking revenues that would have been received from the operation of the parking lot which said assurances shall include the deposit of the proceeds from the sale of the parking lot into escrow to be held in trust and pledged to secure the Bonds, said funds to be invested as shall be satisfactory to the Authority and/or appropriate guarantees of investment return to be made by the City, and the interest earnings on said escrow fund to be paid to the Authority to be applied to pay debt service on the Bonds, all as shall be approved by the City Solicitor and the City's Bond Counsel.
ADOPTED: October 19, 1993
Mr. Hutchison moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 8:40 P.M.
DEBRAH J. BOAMAN
CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their Special Meeting of October 19, 1993, are hereby approved.
AARON O. KNOPF
MAYOR
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