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HomeMy WebLinkAbout04/21/99 TAPES #1610, 1611 & 1612 CITY COUNCIL MEETING MINUTES APRIL 21, 1999 The regular meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, 239 4th Street, Bremerton, Washington, Wednesday, April 21, 1999, at 5:30 P.M., with Council President Mike Shepherd presiding. Council members present were Jim Reed, Carlos Montgomery, David Farr, Lon Overson, John Law, Cecil McConnell, and Wayne Olsen. Council member Carol Arends was absent. Also present were City Attorney Glenna Malanca, Deputy Clerk Paula Johnston, and Legislative Assistant Lori Smith. The meeting opened with the Pledge of Allegiance led by Council President Shepherd and invocation given by Reverend Talmage Wilson of Charleston Baptist Church. President Shepherd made the following announcements: (1) City Council held a Study Session pdor to the meeting to discuss general Council business; and (2) City Council will hold a Deliberation Session next Wednesday, April 28, 1999, 5:05 to 5:25 to discuss Special Use Permit for two Group Residential Facilities - Class I; Applicant: Inland Empire Residential Resources; Location: 1006 & 1008 9th Street, Bremerton. CONSENT AGENDA A. Minutes of Meeting - April 7, 1999 #AB99-069 B. Easement Grant to Cascade Natural Gas for Bremerton #AB99-070 Transportation Center Gas Line #0020 M/S/C/U (McConnell/Montgomery) Motion to approve the Consent Agenda as presented. CI AIMS/CHECK REGISTERS Vouchers audited and certified by the auditing officer as required by RCW 42.24.060, and those expense reimbursement claims certified as required by RCW 42.24.090 have been recorded on a listing that had been made available to the Council. #0050 M/S/C/U (Montgomery/Reed) On April 21, 1999, the Council does approve for payment those vouchers included and further described as follows: 229949 to 230146 in the amount of $588,348.77; and Regular Payroll in the amount of $800,774.29 for the period ending 4/15/99. COUNCIL MEMBER REPORTS Mr. Law reported on the monthly District 3 meeting held last night, and thanked special guest Kitsap County Sheriff Steve Boyer for his very informative and interesting presentation. Mr. Overson was happy to be back, after spending several enjoyable weeks in Europe. Mr, Farr offered his apologies for not being able to attend the District 6-7-8 meeting scheduled tomorrow night due to a conflict in his schedule. TAPES #1610, #1611 & 16 City Council Reg. Mtg. Minutes April 21, 1999 Page 2 of 8 Mr, Montgomery announced Districts 6, 7, & 8 would hold a combined meeting Thursday, April 22, 1999 at the Bremerton School Administration Building located 134 N. Marion, 7:00 to 9:00 P.M. Brernerton Police Officer Dave Hughes from the Canine Unit, along with "Quasar' will be in attendance, as well as Mayor Lynn Horton. President Shepherd attended the welcoming ceremony for the new pastor at Ebenezer A.M.E. church, where the Mayor also presented a Proclamation to the departing Reverend Cleveland Williams. He also artended the Kitsap Habitat for Humanity orientation meeting on Sunday, which was well attended. Lastly, he welcomed Kathleen Cahall back from maternity leave. MAYOR'S REPORT Mayor Horton read a Proclamation for May 15, 1999 as "Kids Day America International in Bremerton", and encouraged parents to talk with their kids, and even their school administrators, about safety. LEGISLATIVE REPORT A memo from Tom Knuckey, Senior Engineer, was read in response to two questions raised by Paul Drnjevic in a letter dated March 24, 1999 regarding fluoride equipment: (1) How much work was done on this system after September 14, 19987 The rough site grading was complete along with installation of the detention pond, and nearly all site piping. Installation of mechanical equipment inside the building was underway, and submittals for most of the equipment had been approved and ordered. A list of remaining work to be done was attached. (2) How much money was spent purchasing and continuing installation of equipment and or piping after September 14, 19987 Invoices paid after September 14, 1998 total $141,606.28, with approximately 90% of the submittals approved by that date. PUBLIC RECOGNITION Mary Sump thanked the City for the two new parks in the West Bremerton area. Mr. Farr thanked her for all the work she contributed on both parks. Donna Gardner questioned the reason parking notices were recently received on vehicles in her neighborhood for "violating" a City ordinance that states vehicles parked over 72 consecutive hours were subject to receive a citation if not moved, even with permits. Tony White, Director of Metropolis Art Gallery, announced several art events this week. The "AII City Art Walk", and a Silent Auction to raise money for the Kosovo refugees will take place on May 1. Further activities taking place in Bremerton at the Admiral Theater include "Don Quixote" which is being performed by the Peninsula Dance Theater on May 24-25. For more information, call 373-3709. Vickie Billington wanted information on a recent shooting reported in her neighborhood, and questioned if she needed to worry about the safety of her neighborhood. Mayor Horton reported the incident was a suicide, and not indicative of a safety issue in the neighborhood. TAPES #1610, #1611 & 16 City Council Reg. Mtg. Minutes April 21, 1999 Page 3 of 8 Frances Myers, owner of Charleston Theater, announced the first ever Spring Fair to be held May 7, 8 & 9, 1999, where a pamphlet would be available for parents to record fingerprints and other vital information on their children. Se also announced summer passes for the theater were selling for $15.00 for 10 summer matinee movies, and are available through May 31. Contact Frances Myers or local schools to purchase tickets. Paul Drnjevic congratulated Mike Shepherd for his letter to the editor. He then provided a detailed reported on his attempt to have several questions answered, but felt the letter he received from the City did not address them adequately. Robed Schneidler, President of the Admiral Theater Foundation, announced upcoming concerts by the Bremerton Symphony, and a symphony rehearsal open to the public; Schedules are available through the Admiral Theater. Pat Wright, owner of Just Your Cup O' Tea, thanked the Sun for the article on Bremerton. 9A - CONTINUED PUBLIC HEARING AND RESOLUTION NO. 2701, FOR CONSIDERATION OF A ONE-YEAR EXTENSION OF PRELIMINARY PLAN APPROVAL FOR PUD 96-0002, SINCLAIR LANDING COMMERCIAL AND RESIDENTIAL PORTION OF DEVELOPMENT: APPLICANT: THE COMMERCIAL GROUP. #AB99-071 Council must decide if the applicant's request for a one time one-year extension for submission of the Final Plan for PUD 96-0002, Commercial/Residential Portion of Development. The applicant must show that progress is being made and that it is very likely that the Final Plan will be submitted within the extended time period. Phil Berry, Director of Community Development, stated the code section of the BMC, Chapter 21.02.052(a) sets forth the procedures and criteria for extensions. He stated it clearly states that substantial progress must be demonstrated prior to approval of the extension; and that there is good likelihood the final Planned Unit Development would be filed during the period of the extension. He further clarified the life of a preliminary PUD is two years from the date of City Council approval, which was March 27, 1997. On March 27, 1999, a one-month continuation of the public hearing was granted to allow the applicant the opportunity to bring forward documentation to support their efforts made to date on the Preliminary PUD, and also to demonstrate that the Final PUD can be completed during the time of the extension. A number of items were also requested by the City Council, which has still not been responded to by the applicant. Staff recommends denial of the extension. President Shepherd stated this was a continuation of a quasi-judicial hearing, and asked the Appearance of Fairness Doctrine: 1. "DOES ANY COUNCIL MEMBER BELIEVE THEIR PARTICIPATION WOULD CONFLICT WITH THE APPEARANCE OF FAIRNESS DOCTRINE, AND THAT THEY SHOULD BE EXCUSED?" A~ Council members remained seated. TAPES #1610, #1611 & 16 ,,. City Council Reg. Mtg. Minutes April 21, 1999 Page 4 of 8 2. "DOES ANY MEMBER OF THE PUBLIC BELIEVE ANY COUNCIL MEMBER SHOULD EXCUSE THEMSELVES DUE TO A CONFLICT WITH THE APPEARANCE OF FAIRNESS DOCTRINE." There was no comment by the public. President Shepherd then read the following public announcement: "AS REQUIRED BY RCW 42.36.090, I AM PLACING ON THE RECORD OF THIS PUBLIC HEARING, THE SUBSTANCE OF WRITTEN AND ORAL COMMUNICATIONS CONCERNING THE DECISION OF ACTION BEFORE US TONIGHT. BECAUSE OF THE CITY COUNCIL'S RESPONSIBILITIES RELATING TO THE MASTER DEVELOPMENT AGREEMENT EXECUTED BY THE COMMERCIAL GROUP AND THE CITY OF BREMERTON AND OTHERS. EFFECTIVE MARCH 18, 1998, I, AND ALL THE OTHER COUNCIL MEMBERS SEATED BEFORE YOU, HAVE READ THE MATERIALS PROVIDED BY THE CITY STAFF AND THE COMMERCIAL GROUP. SOME OF THESE MATERIALS THAT RELATED TO PROGRESS UNDER THE MASTER DEVELOPMENT AGREEMENT ALSO ARE RELEVANT TO THE MATTER BEFORE US TONIGHT. THERE HAVE BEEN VARIOUS CITY COUNCIL OPEN MEETINGS DURING WHICH ISSUES RELEVANT TO TONIGHT'S PROCEEDING HAVE BEEN DISCLOSED AND DISCUSSED. QUOTES FROM ALL PARTIES HAVE BEEN CONTAINED IN NEWSPAPER ARTICLES OVER THE PAST YEAR. STUDY SESSIONS AND MEETINGS WITH THE MAYOR AND SMALL NUMBERS OF COUNCIL MEMBERS HAVE OCCURRED IN FURTHERANCE OF RESPONDING TO THE MASTER DEVELOPMENT AGREEMENT ADMINISTRATION. ALTERNATIVE DEVELOPMENT POSSIBILITIES HAVE BEEN DISCUSSED DUE TO ISSUES RELATED TO THE MASTER DEVELOPMENT AGREEMENT. ALL COMMUNICATIONS REFERENCED AND DETAILED IN THIS ANNOUNCEMENT HAVE LIMITED RELEVANCE TO THE DECISION BEFORE THE COUNCIL TONIGHT. DUE TO THE THEN UNKNOWN NATURE OF THE VERIFICATION AND DOCUMENTATION THAT WOULD BE PROVIDED BY THE COMMERCIAL GROUP IN SUPPORT OF ITS APPLICATION FOR AN EXTENSION. THAT INFORMATION IS AND WILL BE CONTAINED IN THE RECORD BEFORE US TONIGHT. ANYONE MAY REBUT DURING THE COURSE OF THE PUBLIC HEARING THE SUBSTANCE OF ANY AND ALL COMMUNICATIONS DISCLOSED BY THIS ANNOUNCEMENT AND SPECIFIC DISCLOSURES OF EACH COUNCIL MEMBER. THEREFORE I ASK AGAIN DOES ANY COUNCIL MEMBER HAVE A FURTHER DISCLOSURE IN ADDITION TO THE COMMUNICATIONS I HAVE JUST ANNOUNCED. Mr. McConnell disclosed that he was asked by a Sun reporter, why he voted "NO" to a 30-day extension. He responded that no property had been purchased, or leases signed, and he had run out of patience. Now, 30 days later, he stated the situation may have changed, and his vote at that time will have no bearing on his vote tonight. Mr. Law disclosed that he was asked questions by his constituents at several past District meetings, and did inform them that no property has been purchased, no options issued, or leases signed. He further stated he has not yet made up his mind. TAPES #1610, #1611 & 16 ~z City Council Reg. Mtg. Minutes April 21, 1999 Page 5 of 8 Mr. Montgomery acknowledged he has held many conversations with many people on this subject. He also disclosed that a member of the Commercial Group, who asked for a Study Session, approached him. He referred him to the Council President. He was also invited to lunch, which he declined. Mr. Farr disclosed he was and still is a member of the Sinclair Landing Association, as a non- voting member. As President of the City Council for the last two years, he artended several additional meetings dudng the formulation of the Master Development Agreement (MDA). Mr. Overson, Mr, Olsen, and President Shepherd held many discussions with constituents, but most information discussed was related to articles printed in the Sun. No direct meetings were ever held with any members of the Commercial Group. After the above disclosures, the Public Hearing proceeded... Rich Rucker, President of Rucker Associates, spoke in support of the Master Development Agreement, and the extension of the PUD. He told Council about the discussions held with investors, lenders, and tenants, who were all impressed, and could see the potential. He felt The Commercial Group has raised the image of Bremerton; and nothing they have done has "hurt" Bremerton. He spoke of the difficulties in obtaining investors, and the "critical mass" issue, where two triple-A restaurants want to be in Bremerton, but they do not want to be here alone. They want a bigger development, with is directly related to having the leverage of a City parking garage. He described this as a situation where he and the other developers "put their shoulders to the wheel", but were not yet able to get other people to meet the challenge. Randy McGreal, The Commercial Group (TCG), first described how he was personally offended by the public and private comments emanating from City Hall. He talked about the details of the PUD extension request, and described each of the eight steps TCG has completed during the process, including the submittal of a project description, and a Development Cost Summary with construction estimates. He stated that TCG spoke with numerous tenants, and provided that list to the City Council. He read a list of firms interested in Sinclair Landing such as Reebok, Pyramid Breweries, and many others, however, he reiterated that no one wants to come into Bremerton alone. They want to come "as a group". He stated that it takes a long time just to contact the tenants and the brokers who represent them sinca they are not only making deals in all 50 states, but many are now making deals internationally. He stated TCG is now at the stage to go back to these retailers, ask them to sign a lease, and make it contingent upon a movie theater, for example, being there. He further stated it was an incorrect assumption to think a developer, in an environment like Bremerton, can convince tenants to sign leases before the other tenants are identified and governmental relationships are solidified, such as the parking garage. TCG has also been seeking partners to assist in financing the project, and provided a list of companies interested. He then addressed each of the six items that City Council required The Commercial Group to provide to the City: 1) Future tenant commitments as recommended by the City's Financial Analyst; 2) Responses to reasonable inquiries and verification requests by the City's Financial Analyst; 3) Arrangements for sufficient Public Attractions; 4) Detailed construction estimates; 5) Updates on their efforts to purchase necessary properties within the project area; and 6) TAPES #1610, #1611 & 16'e~ City Council Reg. Mtg. Minutes April 21, 1999 Page 6 of 8 Acceptable parking for the Marina. He read detailed responses to each of the items from a letter written to the Mayor. He referred to the Recommendation made by the Department of Community Development regarding progress not being made, and argued that all information requested by the City has been provided, in addition to meeting with City Council, for on-going updates. He further stated that he feels all information requested by them has been provided to the City, which clearly shows progress has been made. He concluded by stating if the extension was granted TCG could submit the Final Plan within the extended time period. He urged the Council not to throw away this opportunity "foolishly". Richard Hayes, Kitsap Transit Director, withdrew Kitsap Transit's request for the transfer of the Commuter Retail BUilding rights to the Kitsap Transit element of the PUD, as explained in a letter dated April 21, 1999, which is included in the packet. TAPE #1611 MEMBERS OF PUBLIC WHO SPOKE IN FAVOR OF A ONE-YEAR EXTENSION: Rob Schneidler, President of Sinclair Landing Association; Ward Giily; Field Ryan; Greg Bush; Elizabeth Buell; John Becker; Beverly Kincaid; and Charlie Brown. Gary Gartin who works downtown, and owns a building on Pacific Avenue, questioned whether this PUD before Council tonight was the same PUD originally approved. It seemed to him that the PUD has grown. He understood the difficulty in putting together a project, and the amount of time that it takes. However, as a property owner, he had other concerns. He concluded that he would be better off without this issue "hanging out there". Then decisions could be made about the future, without something of this scale tying up downtown businesses. With no other comments, the Hearing was closed to the public and open to Council... Mr. Law asked Mr. McGreal to address the issue of which property owners have been "contacted", since that doesn't necessarily mean they will sell. He is also uncomfortable with statements that the City will finance the parking garage. He referred to the MDA, which stated the City would provide 60% of the incremental taxes. Mr. McGreal stated tenants listed under Phase I have been contacted. Mr. Overson asked the Mayor to address who the City uses as their "Financial Analyst". Mayor Horton stated the City has used the Bond Counsel at SeaFirst Bank. A "Financial Analyst" has not been secured because the City has never received a proposal of significant value to merit the need to secure one. She then went on to describe conversations she has held with various financiers and developers of other projects of this magnitude, and virtually all said the same thing, that this project should be farther along than it is. They also added that they did not understand why the properties have not been purchased, or at least options-to- purchase solidified. Although TCG has Letters of Interest from tenants, it is not the same as having "signed" tenants. The current economic climate is very conducive for a project of this nature. She has spoke with other developers who have the expertise, financial backing, and interest in doing this project. She wanted to clarify that neither the Mayor nor Council ever approved financing the parking garage, only a willingness to work with The Commercial Group. She feels the time has come to terminate the PUD, move on, and get this project moving to get downtown redeveloped. TAPES #1610, #1611 & 16 ~Z City Council Reg. Mtg. Minutes April 21, 1999 Page 7 of 8 Mr. Overson referred to a letter dated April 15, 1999 where Mr. McGreal wrete "when you honestly look at Bremerton, the conclusion you reach is that the location is sorely lacking to support a commercial center", along with four comments to support his statement. Mr. Overson stated he would find it very difficult to support the extension of the PUD when the developers don't trust the project themselves. Mr. Montgomery requested that the letter frem The Commercial Group, dated Apdl 15, 1999 be added to the record. He then referred to page 3, and discussed his concerns regarding the parking garage. Mr. McConnell stated that based on the lack of progress made the past two years, and his observations of what has taken place downtown, he did not have any faith that even an additional eight months would be enough time for TCG to submit a final plan. Mr. Farr asked for comment on the MDA, and when the "clock" began running for the PUD application. Ms. Malanca stated the "clock" began in March 1997, whether or not the MDA was in place. Mr. Farr stated he has been a supporter of the Sinclair Landing project, however, he has also been frustrated at the lack of pregress and lack of substantial preparty acquisition. He concluded by stating he wished he had known the difficulty TCG was running into with preparty acquisition earlier than now. Mr. Rucker responded that property acquisition was the key, and discussed a brief history of progress he feels TCG has made to date. Ms. Malanca, stated the problem tonight, is that "time is up". If the process to declare default had occurred much earlier, there could have been an assignment to the City of the PUD, and thereafter, an extension on assignment could have been requested. She further clarified the issue for the Council tonight is either the applicant can show the progress and the entitlement to an extension, or they can't. TAPE #1612 Mr. Olsen asked the responsibilities of the Sinclair Landing Association, and also wanted to know the square footage of committed leases. Mr. McGreal stated Letters of Interest is the first step, followed by Letters of Intent, and then Leases. In the Apdl 15, 1999 letter, he states that approximately 250,000 square feet have responded with Letters of Interest. President Shepherd 1 ) asked Richard Hayes of Kitsap Transit to restate the issue of the City property and parking lot for the commuter retail building; 2) asked the Mayor to readdress the request for a "Financial Analyst" to evaluate the financial details; and 3) asked Phil Berry to clarify that the denial of the extension of the PUD will not effect projects in the future. He then observed that The Commercial Group and Sinclair Landing Association have some very fine citizens, and the City is grateful for the effort and hundreds of hours expanded to date. He stated this is a tremendously important project for the City, and this project will continue in some form or another. Mr. Hayes provided history on the early stages of the Bremerton Transportation Center project. He then proposed that Kitsap Transit could manage the parking and the Kiss 'n Ride areas in conjunction with a Commuter Retail Building Development Agreement. Mayor Horton began by stating that this project has had many iterations, and every time the plans changed, the number of parking stalls changed. She reiterated that she never felt that she had a substantial enough presentation or idea of the needs of the parking to TAPES #1610, #1611 & 16 ~Z City Council Reg. Mtg. Minutes April 21, 1999 Page 8 of 8 take to a "Financial Analyst". She did, however, speak with SeaFirst Bank, and to the City's Bond Counsel regarding this project. Mr. Berry stated that Mr. Shepherd's observations were correct, that if the PUD was allowed to expire it does not mean the end of redevelopment or development of downtown. He summarized that having a Development Agreement gives the City far more latitude, allowing for better negotiating and setting forth terms with the developer. Ms. Malanca confirmed that any decision on the PUD would not affect the current Master Development Agreement, which is a stand-alone agreement. #0700 M/S/F (Farr/Reed) Motion to extend the PUD for one year. Vote on motion: In Favor: Reed, Farr Opposed: Overson, Montgomery, Olsen, McConnell, Law, Shepherd Motion failed. #0760 M/S/C (Overson/Law) Motion to deny the request for the extension of PUD 96-0002. Vote on motion: In Favor: Law, Overson, Montgomery, Olsen, McConnell, Shepherd Opposed: Farr, Reed Motion carried. With no further business meeting adjourned at 8:50 P.M. City of Bremerton P J/MS/Is C: Normal Distribution File