SPECIAL COUNCIL MEETING
A Special Council Meeting was held on February 17, 1993 at 7:30 p.m. with Council President Christiansen presiding. Members present were Councilmen Lambert, Tudor, Leary, Pitts, Salters, Levitt, Daisey and Hare.
Council staff members present were Mr. Worley, Mrs Green, and Mr. Rodriguez.
Mayor Carroll led in the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Salters moved to approve the agenda as submitted, seconded by Mr. Leary and unanimously carried.
PROPOSAL FROM DDDC - SALE OF CITY OWNED PROPERTY
During the Legislative and Finance Committee meeting of February 9, 1993, members reviewed a proposal of the Downtown Dover Development Corporation regarding the parking lot located between City Hall and the Dover Post Office. Representativesof the DDDC presented the details of the proposal of Stoltz Bros. Ltd. to develop thelot with commercial and professional offices and parking facilities.
After reviewing the matter at length, the committee recommended acceptance of the Letter of Intent with Stoltz Bros. Ltd. for the sale of the City of Dover parking lot located on Loockerman Street, east of City Hall. It was announced that this matter would be considered by City Council during the Special Meeting scheduled for February 17, 1993, for official action.
By request of Mr. Salters, the Assistant City Clerk read the Letter of Intent into the record (as on file in the Office of the City Clerk).
Mr. Gary Patterson, President of the DDDC, again presented the details and diagrams of the proposal of Stoltz Bros. Ltd. Mr. Patterson suggested that Council adopt a Resolution authorizing a representative of the City to sign the Letter of Intent. Once the Letter of Intent is signed by all parties, Mr. Stoltz attorney and the City Solicitor will draft an Option to Purchase Agreement. A detailed plot plan will be prepared to be considered with the Option to Purchase Agreement.
A Letter from Pete LaVenia, Chairman of the Dover Parking Authority, was submitted relaying concerns with the sale of the City Hall Parking Lot.
Responding to a letter received from Mr. Pete LaVenia, Chairman of the Dover Parking Authority, Mr. Mike Karia advised members that the Parking Authority has $1.2 million in outstanding bonds and that their revenues are pledged for these bonds, which includes the parking fees received from the City Hall parking lot. Although the parking lot is owned by the City, it is leased by the Parking
Authority and they have the authority to collect parking fees. According to the City’s Bond Counsel and Solicitor, the City has the authority to sell the parking lot; however. once the funds are received from the buyer, it should be put aside to generate interest earnings to be received by the Parking Authority. Mr. Karia explained that these funds will supplement the parking fees that are now being generated. This arrangement would continue until the year 2008, at which time the Authority will make their last debt service payment. Should the parking fees from other lots become sufficient for the debt service payment, another use for the interest and principal would be considered. Mr. Karia presented a resolution that would establish the arrangement with the Dover Parking Authority, which was read into the record (as on file in the Office of the City Clerk).
Mr. Salters moved to approve the Letter of Intent with Stoltz Bros. Ltd. for the sale of the City of Dover parking lot on Loockerman Street, east of City Hall, with the provision that all legal and financial matters are resolved to the satisfaction of Council. The motion was seconded by Mr. Leary.
In response to Mr. Daisey, City Solicitor Rodriguez assured members that the public would have an opportunity to address the issue prior to any definitive action by Council. By approving the Letter of Intent, it was City Solicitor Rodriguez' opinion that Council would be notifying Stoltz Bros. Ltd. that they are willing to consider an Option to Purchase Agreement.
Mr. Patter son offered the following responses to several questions of Council:
• The Downtown Dover Merchants have been apprised of the proposal and there have been no negative reactions.
• Noting that the proposal will provide 500 parking spaces, it is anticipated that a net gain of available public parking spaces will be realized.
• If that portion of land that is necessary cannot be obtained from Wilmington Trust Company, the Agreement will be amended or it will become null and void.
• To his knowledge, local realtors have known of the City's intent to sell and develop the property.
• The current zoning of I0 (Institutional Office) would be maintained.
Responding to Mr. Lambert, City Solicitor Rodriguez stated that since the Parking Authority has not constituted a change of position and since the City is guaranteeing an income to the Parking Authority to satisfy the bond resolution, previous decisions and resolutions made by other Council's may be altered.
Regarding the question raised by Mr. Hare, it was City Solicitor Rodriguez' opinion that signing the Letter of Intent does not legally bind the City or,Stoltz Bros. Ltd.; however, it indicates the serious intent of both parties and should not be cancelled for minute reasons.
Mr. Jack Stoltz, Stoltz Bros. Ltd., explained that he interprets the Letter of Intent to signify a binding agreement with the City of Dover that temporarily binds the situation in order to accomplish the next phase. It indicates that both parties are in agreement with the basic terms that are outlined in the Letter, to be incorporated in an Option Agreement, and that they are obligated to conclude, in good faith, a mutually satisfactory Option Agreement.
Having concern with Mr. Stoltz' interpretation of the Letter of Intent, Mr. Hare stated that he could not vote for its approval.
Responding to Mr. Tudor, Mr. Stoltz stated that he would agree to sign a waiver of any fees that he has incurred should the City choose not to approve an Option to Purchase Agreement. Mr. Stoltz advised members that it is his intent to provide a credible addition to the City and would like to proceed, in a timely manner, with the Option to Purchase Agreement.
Mr. Tudor suggested that an addendum be attached to the Letter of Intent, in the event Council nullifies their decision, that would release the City's obligation to Stoltz Bros. Ltd. of any fees that they have been incurred. Council President Christiansen advised members that the statements of Mr. Stoltz are being recorded and will be made a part of the written record. It was City Solicitor Rodriguez’ feeling that the statements that have been made by Mr. Stoltz' would be binding and there would be no need to amend the motion.
Should Council have any reservations regarding this matter, Mr. Stoltz requested that approval of the Letter of Intent be deferred until Council is certain that it is their desire to move forward with the Option to Purchase Agreement.
After discussing this matter at length, Mr. Salters withdrew his motion to prove the Letter of Intent. Mr. Leary declined to withdraw his second (it was noted that once a motion has been withdrawn, the second is automatically removed).
Mr. Leary reminded members that the Legislative and Finance Committee reviewed this matter and recommended approval. Noting that the public will have the opportunity to relay their concerns when the Option to Purchase Agreement is being considered, he encouraged members to move forward and approve the Letter of Intent at this time.
Mr. Salters moved that a Special Council Public Hearing be scheduled for March 3, 1993, at 7:00 p.m. to receive public comments on this matter. The motion was seconded by Mr. Levitt and unanimously carried.
It was suggested that the following guidelines be utilized for the public hearing: 1) written testimony should be given to the City Clerk's Office to be distributed to Council for review prior to the hearing; 2) a sign-up sheet will be available prior to the hearing for those citizens that wish to speak: 3) a citizen may contact the City Clerk's Office to be placed on the sign-up sheet; 4) at commencement of the hearing, the sign-in sheet will be delivered to the Council President and only those that appear on the list will be given the opportunity to speak.
Council took a five minute recess at 8:20 p.m. and reconvened at 8:25 p.m.
1993/94 BUDGET WORKSHOP
Mr. Daisey moved to defer the 1993/94 Budget Workshop to be considered during Council's Goals Workshop on February 19, 1993. The motion was seconded by Mr. Levitt and unanimously carried.
MAYOR’S EXPENSE ACCOUNT
In accordance with the decision rendered by Deputy Attorney General Hanley and Welch, members reconsidered the transfer of funds that would provide an additional $750 in the Mayor's expense account (a consensus of Council was given during an executive session on November 10, 1992, authorizing, the reimbursement of expenses for the Mayor to be increased to $3,000, effective January 1, 1993).
Mr. Levitt explained that it has been the City's procedure to reimburse the Mayor $1,500 per year for expenses incurred in representing the City throughout the year. The payment of $1,500 is paid in four quarterly payments of $375. Taking into consideration inflation, the size of the City, the increased number of programs the Mayor is expected to attend, and the increasing governmental role, the Mayor requested an increase in the reimbursement of expenses.
Mr. Salters moved to approve the transfer of an additional $750 to the Mayor’s expense account, stipulating that the Mayor provides accountability for the expenses, to be effective through June 30, 1993. The motion was seconded by Mr. Leary.
To clarify the motion, Mr. Salters stated that although receipts would not be required, the Mayor should provide a listing that describes those expenditures over the initial payment of $1,500. Responding to Mr. Hare, Council President Christiansen explained that consideration of future years’ budgeted amount for this account will be reviewed by Council during the budget hearings.
On a call for the question by Mr. Levitt, the motion was carried with Mr. Daisey and Mr. Pitts voting no.
Mr. Hare moved for adjournment, seconded by Mr. Salters and unanimously carried.
Meeting Adjourned at 8:42 P.M.
JANICE C. GREEN
ASSISTANT CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their Special Meeting of February 17, 1993, are hereby approved.
AARON O. KNOPF
MAYOR
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