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HomeMy WebLinkAboutMinutes - Minutes - City Council - Meeting Date: 5/14/2001 (3) * PLEASE NOTE: Since the Glendale City Council does not take formal action at the Workshops, Workshop minutes are not approved by the City Council. MINUTES CITY OF GLENDALE CITY COUNCIL WORKSHOP May 14, 2001 2:00 p.m. PRESENT: Mayor Scruggs, Vice Mayor Eggleston, and Councilmembers Clark, Frate, Goulet, Lieberman, and Martinez. ALSO PRESENT: Martin Vanacour, City Manager; Ed Beasley, Assistant City Manager; Rick Flaaen, City Attorney; and Rose Day, Deputy City Clerk. 1. REVIEW AND PRESENTATION OF SPRING 2001 NEIGHBORHOOD GRANT REQUESTS CITY STAFF PRESENTING THIS ITEM: Mr. Erik Strunk, Community Partnerships Director OTHER PRESENTER: Ms. Sue Ferrell, Chair of the Glendale Citizens' Advisory Commission on Neighborhoods As part of the City Council's commitment to revitalizing older neighborhoods, the Mayor and Council established the Glendale Citizens' Advisory Commission on Neighborhoods (the Commission) to make recommendations on neighborhood enhancement and revitalization projects. The purpose of today's workshop was to review the recommendations of the Commission for the Spring 2001 funding cycle. For Fiscal Year 2000 - 01 , approximately $700,000 in general fund money has been set aside for such projects. Of this amount, approximately $350,00 has been made available to neighborhoods for the Spring 2001 funding cycle. The Commission on Neighborhoods recently concluded a month-long review process of seven neighborhood grant requests and was recommending all of them to the Mayor and Council for approval. Each of the following grants include a contingency amount: 1. Lo La Mai Mobile Home Park — $64,100.30 to fund the construction of a new, six foot, painted and stuccoed perimeter wall around the neighborhood and install new landscaping on the City right-of-way along 43rd and Missouri Avenues. The neighborhood pledged $4,305.60 in sweat equity and $7,516 in cash to this project. 1 2. Orchard Glen Neighborhood - $35,000 to fund a conceptual and architectural study of streetscape and landscaping designs for the area of 59th Drive - 61St Avenue; Glendale to Ocotillo Avenues. They intend to use the design to seek funding in the future. Under the new sweat equity guidelines, the neighborhood pledged $5,529.60 in sweat equity to this project. 3. Casa de Zia HOA - $13,160 to rebuild an existing block perimeter fence on the western portion of the neighborhood to prevent vandalism, trespassing, and other security issues that have caused concern in the neighborhood. The neighborhood pledged $1,336.80 in sweat equity to this project. 4. Orangewood West and 79th Lane - $112,772.45 to construct an eight-foot fence, install new landscaping, curb, gutter, and street improvements along City right-of-way located at 79(h Lane and Myrtle Avenue. The neighborhood pledged $2,618.72 in sweat equity to this project. 5. Fountain Shadows HOA - $10,100.80 to help it repave and repair the south side of Diana Avenue and portions of its internal street system. The neighborhood pledged $16,339.31 in cash and $300 in sweat equity for this project. 6. Olive Green Villas HOA - $46,793.40 for new landscaping, wall improvements, and entry signage along the neighborhood's 59th Avenue perimeter area. The grant request also includes increasing the height of an existing two-foot wall by an additional two feet, new paint for the existing wall, and removal and replacement of the existing cyclone fencing near the adjacent strip center. The neighborhood pledged $5,634.60 in sweat equity and donated materials for this project. 7. Ocotillo-Rose Neighborhood Association - $30,000 to fund the incorporation of decorative sidewalks near the Ocotillo-Rose Park as part of a larger $200,000 CDBG-funded curb, gutter, and sidewalk project that will begin in July of this year. The neighborhood pledged $2,073 in sweat equity for this project. Over the past six years, 144 grant applications have been received from 65 different Glendale neighborhoods. Of these, the Commission has favorably recommended 105 to the Mayor and Council. The Spring 2001 grant recommendations represent the culmination of the thirteenth neighborhood grants process overseen by the Glendale Citizens' Advisory Commission on Neighborhoods. The Mayor and Council have approved all previous grant recommendations of the Commission. 2 The Spring 2001 project funding cycle began with "early bird" grant orientation sessions in November and December of 2000 and three additional sessions in January and February of 2001. All registered neighborhoods were notified by mail and invited to attend the orientation sessions. Numerous articles have appeared in the local newspapers and monthly Partnership Office mailings regarding the orientation sessions and the availability of neighborhood revitalization funds. Information regarding the funding process was also publicized on the City of Glendale Internet home page. If approved by the Mayor and Council, the total for the Spring 2001 neighborhood grants cycle (including all necessary contingencies) will amount to $311,926.95. Funds are available in Account Number 01-8968-8330 (Neighborhood Projects). The recommendation was to review and discuss the Spring 2001 grant recommendations of the Commission on Neighborhoods. Councilmember Goulet asked for a brief explanation as to how safety factors affected a project's rating. Ms. Ferrell explained that each Commissioner is required to follow 10 criteria, rating each of the criteria according to their own discretion. She pointed out that the scoring only determines the voting rank of the projects and has no merit as to whether a project is funded. Councilmember Goulet asked if the Commission had discussed whether certain infrastructure criteria should be considered necessary. Ms. Ferrell said one of the criteria they look at takes into consideration whether it is an amenity found in newer neighborhoods. She stressed that the grant has to be considered as a whole and in terms of all 10 criteria. She stated that they continuously look at the grant process itself to see if the criteria needs to be changed or the program itself needs to be updated or changed in some way. Councilmember Martinez commended Fountain Shadows Homeowners Association on their sizeable pledge. He asked for more information regarding the sidewalk project for the Ocotillo-Rose Neighborhood Association. Ms. Ferrell said they want to add decorative elements on eight of the corners in the neighborhood. Councilmember Martinez asked if money was left over because of a lack of requests. Ms. Ferrell stated that there are times when requests exceed the money available and other times where the money exceeds the number of requests. Councilmember Frate expressed his opinion that all of the projects were very deserving. He asked what the height was of the fence listed in the Casa de Zia Homeowners Association's request. Ms. Ferrell said the request is to replace the existing six-foot fence, adding some type of additional deterrent to the top. She noted that an eight-foot fence would require re-digging the footer and doing other, more costly, structural improvements. Councilmember Clark asked if the Orchard Glen Neighborhood was within a Community Development Block Grant (CDBG) eligible area, allowing them to leverage the design money they were requesting. Ms. Ferrell said they hoped to leverage the design work against future CDBG money or through the Downtown Redevelopment. She explained that they want to develop an overall concept for their neighborhood so that they have a plan in place when redevelopment of the downtown area begins. Vice Mayor Eggleston voiced the Council's support. 3 Councilmember Lieberman thanked Ms. Ferrell for the work she had done on the Commission. Mayor Scruggs also commended Ms. Ferrell on her dedication to the Commission. 2. PROPOSED MODIFICATIONS TO PAINT, PAVE, PLANT & SIGN PROGRAM AND DOWNTOWN FASCADE IMPROVEMENT PROGRAM CITY STAFF PRESENTING THIS ITEM: Mr. Jim Colson, Economic Development Director; and Mr. lain Vasey, Redevelopment Manager During the Council Goal Setting Workshop held in December of 2000, the Council had requested that the Economic Development Department present an update of the Paint, Pave, Plant and Sign Program (PPP&S). The Economic Development Department administers two commercial property re- investment assistance programs: (1) the Paint, Pave, Plant and Sign Program (PPP&S), and (2) the Downtown Façade Program. There are different eligibility requirements and levels of assistance for each program: 33% for PPP&S and 20% to 30% for the façade program. Since 1987, the façade program has provided $166,572 in grants and $184,000 in loans. The total leveraged private investment has been $782,411. Since 1994, the PPP&S program has provided $479,567 in assistance, which leveraged $2,049,749 in investment. Together, the programs have provided $830,139 in assistance, creating a total of $2,832,160 in new investment. The Economic Development Department proposes to merge these two programs into one program. Levels of assistance would be increased and standardized, and the program would be more flexible in terms of eligible projects. All areas of the City would be eligible to receive the same level of assistance. Any property in a redevelopment district or other commercial property older than 15 years of age would be eligible to receive up to a 50% rebate of approved exterior improvement costs. The proposed combination of the PPP&S and Downtown Façade programs would be known in the future as the Revitalize Glendale Program. The City Council currently reviews each application for amounts greater than $50,000, in accordance with the City's Materials Management regulations. Under the proposed guidelines, the City Council would continue to review all applications in line with adopted purchasing regulations. The proposed modifications to the improvement programs would allow for a wider scope of property improvements. This would allow larger improvement projects to be included in the program and presented to Council for review. 4 At the December 19, 2000 Workshop, the City Council authorized an increase in funding of the PPP&S program from $150,000 per year to $200,000 per year. The City Council authorized the creation of a City Center Master Plan that is currently being developed and will be presented to Council later in the year. It is projected that the Revitalize Glendale Program will be used extensively to assist private redevelopers in the implementation of portions of the City Center Master Plan when it is completed. If the proposed modifications are authorized, staff will implement a promotional campaign to notify commercial property owners who may be potential applicants for the program. The PPP&S Program currently contains a balance of $380,373 and the Façade Program has a balance of $62,385. Combined, the balance of these accounts is $442,758. The recommendation was to review this tern and provide staff with direction. Councilmember Martinez asked if the new program includes an element for loans. Mr. Vasey stated that there was not much interest in the loan program. He noted that only three loans were made, with the last one made in 1990. Councilmember Martinez asked if a loan would be possible should someone show an interest. Mr. Vasey said they could help them with the loan program. Councilmember Clark noted that the amount loaned out slightly exceeds the grant total. She asked if the City maintains an inventory of all properties that are at least 15 years old. Mr. Vasey said they maintain a database of shopping centers and retail centers, but the age of specific properties would be verified through the records at the Maricopa County Assessor's Office. Councilmember Clark asked what the future impact could be. Mr. Colson explained that the Economic Development Department has been building an inventory of all intersections and properties in the City of Glendale and identifying them as under-performing, at performance level, or superb-performing properties. He said they will target specific properties which they believe will have the greatest impact. He said a property is measured on two scales: (1) blight and (2) whether it generates a fair amount of revenue. Councilmember Clark asked if they had identified the redevelopment districts. Mr. Vasey said the City currently has one redevelopment district, the Downtown Redevelopment District. He noted that they were currently working on the City Center Master Plan, which would slightly expand that district from its current boundaries. He stated that the City is not restricted from creating other redevelopment districts in the future. Councilmember Clark asked what criteria would be used to determine where and how money should be dedicated. Mr. Colson explained that they would do an economic impact analysis and make a determination as to whether the City should invest in a project and, if so, to what level. 5 Mayor Scruggs asked if employment generation would be taken into consideration. She explained that office buildings do not generate revenue for the City. She said she was concerned that there is no designated application period or a cap as to how much one entity can receive. She explained that one large project could use up funds that could otherwise fund several smaller projects. She expressed concern that the name "Revitalize Glendale Program" implies that all of Glendale is in need of revitalization. She suggested that they look at another name, one that stresses partnership with the community. Councilmember Clark agreed with Mayor Scruggs with regard to the need for a cap. She questioned whether grant cycles, similar to those used in the Neighborhood Partnership Program, could be considered. Vice Mayor Eggleston asked how they would treat a situation where one large project requested a majority of the funds. Mr. Vasey explained that they would evaluate the economic impact and benefit of the project to the community. Mr. Colson suggested that they bring the item back to the Council after having an opportunity to further discuss a funding cap and application period. He said they would also have a new name for the program to propose to the Council at that time. It was the consensus of the Council to bring this item back for discussion. 3. GLENDALE GATEWAY/MANISTEE TOWN CENTER (COYOTES) DEVELOPMENT UPDATE CITY STAFF PRESENTING THIS ITEM: Mr. Jim Colson, Economic Development Director; Ms. Paula Ilardo, Marketing Director; and Mr. Art Lynch, Finance Director Staff presented an update on the Coyotes - Glendale Gateway/Manistee Town Center development projects. Specific items discussed included an update on the development agreements, which are currently being negotiated, a review of pertinent planning and zoning issues, a briefing regarding the financial structure, and an overview of the marketing plan. In April of 2001, the Council unanimously approved a memorandum of agreement with the Coyotes and the Ellman Companies to develop the Glendale Gateway Arena/Mixed-Use Project and redevelop Manistee Town Center. It was publicly stated that, without the action taken by the Council, the Coyotes would have relocated to a community located in another state. Council directed staff to negotiate development agreements for two development projects that met the mutual objectives of the Coyotes/Ellman Companies and the City of Glendale. Staff has been working with the Coyotes/Ellman Companies to structure the agreement in such a manner as to ensure a positive, long-term working relationship between all parties. 6 As a result of the action taken by the Council, the City of Glendale will be the home of the National Hockey League (NHL) Coyotes and a mixed-use development consisting of at least 1.6 million square feet of diverse retail, entertainment, dining, office, and residential development. In addition, the Ellman Companies have agreed to redevelop the Manistee Town Center site, which will result in a major improvement to the City Center area and provide a new amenity to the City. Staff is working with the Mayor and Council, as well as various other community groups, to discuss the project and answer questions. The City of Glendale has dedicated a portion of its web site to these projects and has also established a special phone hotline number for those without Internet access. The City has entered into a memorandum of agreement with the Ellman Companies to develop Glendale Gateway and redevelop Manistee Town Center. The City's financial commitment is to provide funding of up to $180 million, over a thirty-year period, in exchange for a specific amount of development (at least 1.6 million square feet of diverse retail, entertainment, dining, office and residential development) according to the terms and conditions, which will be outlined in the development agreement. The planned development will result in increased sales tax to support general services, pay the debt service on the $180 million, and provide additional police and fire service throughout the City. This project will also accelerate development in the Glendale Gateway Area, resulting in increased amenities, job opportunities, and tax base; and will significantly increase property values and assessed valuation. This item was presented for information, discussion, and staff direction. Councilmember Clark thanked the Mayor, Councilmembers, and staff who attended the meeting on Saturday, May 12th. She said people were generally reassured by the information they had received. She stated that, while circumstances did not allow the Council to comment while pursuing the situation, citizens will be given as many opportunities as possible to be involved in the process. Vice Mayor Eggleston asked what, specifically, the firm of Ernst & Young, LLP would look at. Mr. Lynch explained that they will look at various aspects of the project, including the types of development, the size of developments, and absorption rates. Mr. Beasley said they had asked Ernst & Young to look at the complete project in terms of financial feasibility and were comfortable with the preliminary analysis they had received. Councilmember Clark stated that she and Councilmember Martinez had an opportunity to visit the Pepsi Center in Denver, Colorado. She said they had learned a lot in terms of what constitutes good planning. She offered to share their notes with the Council and staff. Councilmember Lieberman asked to meet with staff to discuss the timeframe for the Manistee project. He said he had several suggestions. 7 ADJOURNMENT The meeting was adjourned at 3:20 p.m. 8