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HomeMy WebLinkAbout09/17/2008 CITY COUNCIL MEETING MINUTES 0lUCl Mvm OCT 1 5 2008 DIGITAL RECORDING Wednesday, September 17, 2008 The weekly meeting of the City Council of the City of Bremerton was called to order in the City Council Chambers, of the NORM DICKS GOVERNMENT CENTER, 345 6th Street, Bremerton, Washington, Wednesday, September 17, 2008, at 5:30 PM, with Council President Will Maupin presiding. Council Members present were Nick Wofford, Carol Arends, Dianne Robinson, Mike Shepherd, Roy Runyon, Adam Brockus, Cecil McConnell, and Brad Gehring. Also present were City Attorney Roger Lubovich; City Clerk Carol Etgen; and Legislative Assistant Lori Smith. The Pledge of Allegiance was led by Council Member Brad GehrinQ followed by the invocation provided by Pastor Art SpeiQht of "Taking it to the Streets" Ministries and Cornerstone Alliance Fellowship. President Maupin announced that a Briefing Session to discuss General Council Business was held prior to the meeting. MAYOR'S REPORT . Presented a grim report on the current financial and economic status of the times; and emphasized that the City will have to be smart and make some tough choices to be fiscally responsible and to present a balanced budget, and the City must continue to focus on increasing revenue; . GreQ Wheeler presented donations raised during the Evergreen Park Centennial Celebration on Saturday, September 13th to the City's Parks & Recreation Department for the Playground Express Program. PUBLIC RECOGNITION & ANNOUNCEMENTS Roy Runyon invited the public to the 2nd Annual Oktoberfest that will be held on Saturday, October 4th on the Louis Mentor Boardwalk, and to call Bremerton Main Stream Association at (360) 377- 3041 for more information; and also announced the opening of a new bike shop in Bremerton, Seigler Sports located at 410 6th Street. Brad GehrinQ announced that the 2008 West Sound Safety & Health Expo would continue for one more day on Thursday, and would be held at the Kitsap Conference Center and on the Boardwalk. Phil Williams, Public Works Director, asked members of the public to send comments of support for the proposed Boardwalk Expansion Project by the close of business on September 22 to the U.S. Army Corps of Engineers Casev.H.Ehorn@usace.armV.mil; and to reference project number NWS-2008-737-S0 in the subject line of the email. Pastor Art SpeiQht encouraged people to support "Operation Sleeping Bag", a ministry that assists the homeless by providing them sleeping bags during the fall and winter months. If anyone was interested in learning more, or to donate a sleeping bag, they may call (360) 689-3219. Steve Kreifels stated he was here on behalf of the Rose's, but was reacting to earlier comments made by the Mayor about the state of the City's finances. Melissa Grana expressed her concern about the tickets that she and others have been receiving for simply cruising on skateboards for transportation. President Maupin encouraged Ms. Grana to leave her phone number so that an officer could contact her to address her concerns [It was noticed after the meeting that Ms. Grana did not provide her contact information...] Alan Fricke reported on the Annual September 11 Memorial Ceremony held last Thursday at Evergreen Rotary Park, which he explained has been sponsored by Dave Raymond every year for the past 7 years. He also reported that a CD was provided to BKA T for broadcasting the photos documenting the event. City Council Reg. Mtg. Minutes Wednesday, September 17, 2008 Page 2 of 6 Kathleen Puis was upset about the removal of the organic gardens at the Pea Patch; and also felt the Parks Department has been negligent in taking care of Blueberry Park. CONSENT AGENDA A. Check Numbers 326961 through 327274; and EFT-8121 through EFT-8149 in the amount of $2,536,319.16; and Regular Payroll in the amount of $749,302.47 for the pay period ending August 31, 2008 (#AB08-196) B. Minutes of Meeting - September 3,2008 (#AB08-197) C. Minutes of Study Session - September 10,2008 (#AB08-198) D. Ordinance No. 5059, amending Ordinance No. 5053 to extend the effective date of the annexation of the South Kitsap Industrial Area (SKIA) North from October 1, 2008 to November 15, 2008 if Boundary Review Board jurisdiction is not invoked (#AB08-199) E. Resolution No. 3069, establishing October 15, 2008 as a hearing date to vacate a portion of Carr Boulevard (#AB08-200) 06:09:30 M/S/C/U (Runyon/Robinson) Move to approve the CONSENT AGENDA as presented. GENERAL BUSINESS - There were no General Business items this week... PUBLIC HEARINGS 7 A - ORDINANCE NO. 5058. RELATING TO THE ACQUISITION BY EMINENT DOMAIN OF A CERTAIN PORTION~OF PROPERTY IN THE CITY OF BREMERTON NECESSARY FOR DEVELOPMENT. CONSTRUCTION. AND MAINTENANCE OF THE FIRST STREET PLAZA PROJECT (#AB08-201): Gary Sexton, Redevelopment Projects Administrator, explained that the proposed ordinance relates to the acquisition by eminent domain of a certain portion of property in the City of Bremerton necessary for development, construction and maintenance of the First Street Plaza Project. It further directs staff to exhaust all reasonable negotiation efforts to purchase property necessary for the project; describes the public convenience, use and necessity of such property; provides for the condemnation, appropriation and use of the property; provides the mode of payment of cost of acquisition of the property; and directs the City Attorney to prosecute an action in Kitsap County Superior Court in the event direct purchase efforts are not successful. A recess was held from 6: 12 to 6: 18 PM to resolve technical difficulties with the computer equipment.. . Mr. Sexton provided a PowerPoint@ presentation to brief the Council on the history of the downtown revitalization that has taken place over the last several year leading up to this current proposed First Street Plaza Project; clarified that the City was not proposing to condemn the businesses, but instead to provide them with an opportunity that would only benefit and enhance their business; said the City wants the business to stay, and wants them to succeed, but if they still choose to forego this option, the City has offered assistance in their relocation; and asked the Council to pass this ordinance because the passage of this ordinance will begin the negotiations. President Maupin reiterated that the Council was here tonight to conduct a Public Hearing, and therefore requested no applause from those in attendance. He then opened the Public Hearing... President Maupin then allowed David & Mary Jo Rose, property owners of the South Pacific Sports Bar, 1 O-minutes to provide a PowerPoint@ presentation in support of their business. Mr. & Mrs. Rose asked Council to consider the impact of condemnation on their business as well as the community and hoped that Council would not support taking the option of eminent domain. City Council Reg. Mtg. Minutes Wednesday, September 17, 2008 Page 3 of 6 There were several speakers who provided comments, but did not print their names on the "Speaker's List'~ Because the pronunciations of their name were not audible during their testimony, their names are unknown and therefore their comments were not included as part of the record... MEMBERS OF THE PUBLIC WHO SPOKE AGAINST THE PROPOSED ORDINANCE ... Steve Gardner (discussed the history of Bremerton as a "blue collar" town); Steven Kreifels, Owner of Fraiche Cup (talked about his experience when the City needed his original business location, and said the City should support local "mom & pop" businesses and not conglomerates); Elizabeth Thompson, Owner of Drift on Inn (concerned that they did not receive proper notification of the latest plans); Carl Coyl (stressed that the idea of eminent domain should always be used cautiously and commented that the City needs revenue but has "champagne taste with a beer wallet''); Mike McWilliams (appreciated what has been accomplished in Bremerton, but was against this particular action)... Joe Dacca mistakenly spoke regarding another subject. He was upset that his family received tickets for parking in front of his home because he was unaware the City had changed the parking signs changing the limit from a 2-hour to a 1-hour limit. Mr. McConnell called for a Point of Order to bring the subject back to the proposed ordinance. Melissa Grana (said the City should support the older businesses and help them); GeorQe WarrinQton (provided comments against the use of eminent domain); Kendall Hix (targeted downtown businesses for fund raising against breast cancer and the Rose's wrote the most generous check while Anthony's and Starbucks would not even speak to her); Jim Bell (was vehemently opposed to this action because it would hurt the economy); James Brue (shipyard worker from New York encouraged Council to consider the blue collar community in their decision); John and John (son) Limantzakis (one ofthe land owners who has met with City officials, emphasized how much work and money people have put into building and storefront improvements, and hoped that Council would not pursue the eminent domain option); Rick Cortes (opposed the use of eminent domain); Vince Robinson (son of Council Member Dianne Robinson and former resident; challenged the developer to work with the businesses and not use eminent domain even though he thought the face of some of the businesses are unpleasant; and recommended that old town be preserved but given a new face); Alyssa Miller (thought that old businesses could be fixed up to bring and keep people downtown rather than be torn down); Anthony Kelley (OJ for the South Pacific, hoped that downtown businesses would be supported rather than destroyed, and that he would be able to keep his job); Mark Satherwaite (was stunned that Mr. Sexton would not give the Council a straight answer at a previous Study Session; asked the Council to vote no on this issue and to ask the developers to consider a new plan that includes business owners; commended the Roses who put their money and hard work on the line); Mark Batelmann (believed that the South Pacific provides a place for blue collar gatherings in Bremerton and asked Council to not pursue eminent domain); Paul Thompson (brother of Dianne Robinson; has seen a lot of changes in Bremerton, also a small business owner and supports the Roses, and hoped that Council would do the right thing for the city); Ken Dupay (a new condominium owner, wants the bar to stay and noted that some of the older buildings carry memories to many people.) With no more speakers, President Maupin closed the Public Hearing to public comment... 7:48:32 Main Motion was made as discussion by the Council continued... MEMBERS OF THE PUBLIC WHO SPOKE IN FAVOR OF THE PROPOSED ORDINANCE... There was no one from the public present at the meeting tonight who spoke in favor of the action. City Council Reg. Mtg. Minutes Wednesday, September 17, 2008 Page 4 of 6 Mr. McConnell asked if the offer made to the property owners for their property would be enough compensation for relocation. Mr. Sexton answered that prior discussion with the property owners centered on building improvements rather than relocation. He further explained that more focus was placed on safety and a necessity to join public spaces together. Mr. McConnell asked what were the consequences and costs for not acquiring the property. Mr. Sexton believed that if the City does not acquire property on First Street, a substantial portion of the investment into the project will be undone by not joining the spaces together. Mr. McConnell asked how much money is being allocated for the projects. Mr. Sexton answered that $5-million was provided by the State Legislature and $500,000 from real estate excise tax (REET) - Memorial Plaza ($3.5 million), The Commons, ($1 million), and First Street Plaza ($1 million). Mr. McConnell expressed concerns about providing outdoor seating with taxpayer money for private businesses. Mr. Runyon asked for clarification about eminent domain. Mr. Lubovich clarified the purpose has to be for a public purpose such as a walkway. Mr. Runyon referred to the Mayor's comments and the need for increased tax revenue which he agrees with; and asked Mr. Sexton to explain the public process used to create the First Street Plaza. Mr. Sexton stated that the public was involved during the downtown sub-area plan process and that now the City has entered into the legal process since negotiations were not successful. Mr. Runyon then asked if the City has done a cost-benefit analysis for acquiring the property, relocation of businesses, lost revenue, and impacts to customers and employees of those businesses. Mr. Sexton responded that the City would stand to lose $1 million by not taking action; and believed that working with business owners would result in a positive situation in terms of revenue. Mr. Runyon also asked if the proposed plan will conform to the downtown sub-area plan. Mr. Sexton stated yes. Mr. Runyon asked if any studies or reports have been done by the Washington State Department of Transportation regarding the structural integrity of the Rose's building. Mr. Sexton referenced a conversation regarding that issue but did not respond regarding any reports or studies. Mr. Runyon asked if the City needs a second plaza. Mr. Sexton answered that the City needs connectivity between the proposed park and waterfront and the Memorial Plaza will provide that. Mr. Runyon expressed concerns about potential operations and maintenance costs of the future park. Mr. Sexton stated that these costs have been discussed by staff and have been factored into the planning of the plaza. Ms. Robinson read from a statement to support blending old infrastructure with new buildings and keeping small businesses and allowing them to succeed; and believed that eminent domain should be the last resort. Mr. Shepherd commended the Planning Department on considering the pedestrian, transit, and aesthetic needs of the downtown; foresees future pedestrian walkways as provided in the Comp Plan; and commented on the downtown sub-area plan and the previous Calthorpe Plan. Mr. Wofford clarified that the City is not trying to run the Roses out of businesses but instead is trying to help them and other businesses to be viable, and to decide what is best for the entire city. Mr. GehrinQ commented that he was also a small business owner so he understands how tough it is to survive and how it can be a very emotional issue because a business is a persons livelihood. He believed the Council was "forced" into this position and would rather sit down with everyone involved and negotiate; and asked 'can businesses remain viable and still allow revitalization to move ahead'. City Council Reg. Mtg. Minutes Wednesday, September 17, 2008 Page 5 of 6 Mr. McConnell asked for clarification on what the Council action tonight would mean. Mr. Lubovich stated that passage of the ordinance would give his office the go ahead to file a lawsuit and that if there were a settlement the issue would then come back to Council for approval. President Maupin reopened the public hearing at the request of Mr. Brockus so that he could ask property owners some additional questions... Mr. Brockus agreed with the statements made by Ms. Robinson that eminent domain should only be used as a last resort and asked the Roses if a structural analysis of the building has been done. Ms. Rose answered no but they have a letter from WSDOT regarding their notification to the state about the basement; responded that taking 40-feet of the building would take away the kitchen and that the proposed compensation ($144,000) would not be enough to renovate the building which would be closed during the renovation so there would be lost revenue as well. Mr. Rose believed that the original plan was to move the tunnel project forward, to make sidewalk improvements, and to allow the South Pacific to remain at its current location without taking 40- feet. Mr. Limantzakis added that 2500 square feet of the building would be lost assuming this project moves forward; and answered yes, the building can be reduced and renovated; and that he was willing to continue negotiating. President Maupin again closed the public hearing... Mrs. Arends also encouraged negotiation and wanted to save as many businesses as we can, but emphasized that the City also needs a street that functions; and would like to see both the South Pacific stay either in its present location or another location and also see the First Street Plaza project completed. Mr. Lubovich said the matter could be tabled to see if negotiations could continue; however the Roses indicated that they were not willing to continue and preferred that the Council made a decision one way or the other tonight. Mr. Sexton pointed out that if the issue were tabled, the City would try to come up with a resolution that would benefit both the City and business owners. City Clerk Carol Etqen explained the difference between use of continuing and tabling an item. Mr. Wofford thanked the public for their input at tonight's hearing. Mr. Maupin explained that eminent domain is simply a way of purchasing property for public use at fair market value and projects that have gone through eminent domain include the ferry terminal, downtown parks, or the gateway project; and stated that with the City involved in this particular project (rather than state agencies), the City and property owners would both benefit through negotiation. 08:53:02 M/S/F (Arends/Wofford) Move to continue this issue until November 19, 2008. Voted in favor of the Motion: Brockus, Arends, Wofford Voted opposed to the Motion: McConnell, Runyon, Shepherd, Robinson, Gehring, Maupin Motion failed: 3-Yes; 6-No 08:53:43 M/S/F (Arends/Wofford) Move to pass Ordinance No. 5058 relating to the acquisition by eminent domain of a certain portion of property in the City of Bremerton necessary for development, construction, and maintenance of the First Street Plaza Project. Voted in favor of the Motion: Arends, Wofford, Maupin Voted opposed to the Motion: Brockus, Runyon, Shepherd, Robinson, Gehring, McConnell Motion failed; 3-Yes; 6-No City Council Reg. Mtg. Minutes Wednesday, September 17, 2008 Page 6 of 6 COUNCIL MEMBER REPORTS Roy Runyon reported on a Neighborhood Meeting at Kiwanis Park held last Tuesday; thanked fellow Council Member Mike Shepherd for bringing forward a very successful Evergreen Park Centennial Celebration held last Saturday; and commented on a clean technology discussion at a recent Kitsap Economic Development Association (KEDA) meeting. Brad Gehrinq mentioned his attendance along with several other Council Members at the Sustainable Waterfront Conference held last week and thought it was interesting. With no further business, President Maupin adjourned the Council Meeting at 8:57 PM. ~~ LORI SMITH Legislative Assistant Attest: ~~ffi~ WM:CE:ls:cg