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HomeMy WebLinkAboutMIN FEB 28 2012 M I N U T E S - CITY OF BEAUMONT W.L. Pate,Jr.,At-Large BECKY AMES, MAYOR Gothrol Wright,At-Large Dr.Alan B.Coleman,Ward I CITY COUNCIL MEETING Michael D.Getz,Ward 11 Audwin Samuel,Ward III February 28,2012 Jamie Smith, Mayor Pro Tom Tyrone E.Cooper,City Attorney Kyle Hayes,City Manager Tina Broussard,City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on February 28, 2012, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING * Invocation Pledge of Allegiance Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 6 and 7/Consent Agenda * Consent Agenda Mayor Ames called the council meeting to order at 1:30 p.m. Pastor Ambrose Nixon of the Valley Missionary Baptist Church gave the invocation. Mayor Ames led the Pledge of Allegiance. Roll call was made by Tina Broussard, City Clerk. Present at the meeting were Mayor Ames, Mayor Pro Tern Smith, Councilmembers Coleman, Getz, Wright, Pate (arrived at 1:35 p.m.) and Samuel. Also present were Kyle Hayes, City Manager; Tyrone Cooper, City Attorney; Tina Broussard, City Clerk. Proclamations, Presentations, Recognitions Presentation — The Economic Development group of the Leadership Plus Program, presented Mayor and Council with recommendations for the City, such as the Opening of Crockett Street, Re-open Hotel Beaumont, Initiate plans for a City wide interdenominational Thanksgiving celebration. Construct the following in the downtown area: drug store, grocery market, gas station, retail stores and build more restaurants and grocery markets in the Lamar University area. Public Comment: Persons may speak on scheduled agenda items 6 and 7/Consent Agenda. Richard Clark 510 Trinity Beaumont TX Spoke to Council in regards to Item #6 on the Agenda; he represented 24 households at the Cathedral Square Condominiums and lofts, stated the neighbors would like to see the railroad crossing at Trinity closed to facilitate a quiet zone down town it would make living for them much more comfortable Minutes—February 28,2012 Terry Taylor 1111 Trinidad St. Beaumont TX Stated he is the Church Administrator for Ebenezer Baptist Church, spoke in regards to Item#6 on the Agenda; asked that Council show them a little favor and approve this item, the church has been dealing with the train whistle for a long time, the train whistle is interfering with Sunday morning worship service and Wednesday Bible Study, also stated they are trying to get Trinity Street closed and a quiet zone for Neches Street, as well as abandoning the Gilbert Street crossing Uliana Trylowsky 635 Sue Lane Beaumont TX Spoke to Council in regards to Item A on the Consent Agenda; thanked Council for considering to convey the City surplus property to Habitat for Humanity to start building homes CONSENT AGENDA Approval of minutes — February 21, 2012 Confirmation of committee appointments—Resolution 12—041 and Resolution 12—042 Robert Prados would fill the unexpired term of Paul Montes, Sr. on the Police Department Community Advisory Committee. The term would commence February 26, 2012 and expire January 10, 2013. (Councilmember Gethrel Williams-Wright) Greg Wall-Architect would be reappointed to the Construction Board of Appeals (Building). The current term would expire January 24, 2014. (Mayor Becky Ames) Lee Acevedo-Electrician would be reappointed to the Construction Board of Appeals (Building). The current term would expire January 24, 2014. (Mayor Becky Ames) Gene VanMeter-Electrician would be reappointed to the Construction Board of Appeals(Building). The current term would expire January 24, 2014. (Mayor Becky Ames) Tom Neild-General Contractor would be reappointed to the Construction Board of Appeals (Building). The current term would expire January 24, 2014. (Mayor Becky Ames) A) Authorize the City Manager to execute three deeds conveying city surplus property to Habitat for Humanity of Jefferson County for the construction of affordable homes — Resolution 12 —043 Councilmember Coleman made a motion to approve the Consent Agenda. Councilmember Samuel seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE Minutes—February 28,2012 MOTION PASSED GENERAL BUSINESS 1. Consider a request for a zone change from RM-H (Residential Multiple Family Dwelling- Highest Density) District to GC-MD(General Commercial-Multiple Family Dwelling)District at 3578-3590 St. James. Administration recommended approval of the zone change. Pastor R. N. Robinson, representing Greater Grace Temple, has applied for a zone change. Pastor Robinson states that his congregation would like to rezone the property so that they can build a new church on the subject property. A church is permitted by right in the GC- MD District. The church's current location is located just north of the subject property and is zoned GC-MD. The church owns the rest of the block and all but these three lots are already zoned GC-MD. At a Joint Public Hearing held February 20,2012,the Planning Commission recommended approval 5:0 of a zone change from RM-H (Residential Multiple Family Dwelling-Highest Density) District to GC-MD(General Commercial-Multiple Family Dwelling)District at 3578- 3590 St. James. COUncilmember Samuel moved to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS,BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RM-H(RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY) DISTRICT TO GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT AT 3878-3590 ST. JAMES BOULEVARD, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Mayor Pro Tern Smith seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 12 —009 2. Consider a request for a zone change from RS(Residential Single Family Dwelling)District to LI (Light Industrial) District for two tracts of land at 5802 Washington Boulevard. Administration recommended approval of the zone change. Jack Wright, representing Wright's Scrap Metal, Inc., has applied for a zone change. Minutes—February 28,2012 The subject property is currently used as part of Wright's Scrap Metal. The scrap metal business extends to the south and west of the property. Mr. Wright states that he plans to install a wash rack on the subject property. When Mr. Wright applied for a building permit, it was discovered that the zoning and the existing land use did not conform. The proposed zone change would bring the property into compliance and would allow Mr. Wright to build his wash rack. At a Joint Public Hearing held February 20,2012,the Planning Commission recommended approval 5:0 of a zone change request from RS (Residential Single Family Dwelling) District to LI (Light Industrial) District at 5802 Washington Boulevard. Mayor Pro Tern Smith made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE AMENDING CHAPTER 28 OF THE CODE OF ORDINANCES OF BEAUMONT,TEXAS,AND IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS,AS INDICATED UPON THE ZONING MAP OF BEAUMONT, TEXAS, BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RS (RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT TO LI (LIGHT INDUSTRIAL) DISTRICT FOR TWO TRACTS OF LAND AT 5802 WASHINGTON BOULEVARD, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Pate seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 12 —010 3. Consider a request for a speck use permit to allow a washateria in a GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District at 1067 Colorado. Administration recommended approval of the specific use permit. Bhupesh Patel, the property owner, has applied for a specific use permit. In September, 2009, City Council approved a specific use permit to allow a washateria. However, it was never built. The Zoning Ordinance states that the specific use permit is null and void if not substantially underway within a two year time period. The current request is for a 3,600sq. ft. building with eleven parking spaces. The hours of operation will be from 7 a.m. to 12 a.m. The washateria will have twenty washing machines and twelve dryers. One full time person will be employed along with three to five part time persons. Mr. Patel states that the washateria will serve the university community. At a Joint Public Hearing held February 20,2012,the Planning Commission recommended approval 5:0 of a specific use permit to allow a washateria in a GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District at 1067 Colorado subject to the following Minutes—February 28,2012 conditions: 1. A five foot wide sidewalk will be required along Colorado Avenue. 2. A six foot wide landscape strip is required along the Colorado Avenue frontage. 3. Address the "outlaw" sanitary sewer service line to the satisfaction of the Water Utilities Department. COuncilm6mber Wright made a motion to ADOPT AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A WASHATERIA IN A GC-MD-2 (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-2) DISTRICT AT 1067 COLORADO AVENUE IN THE CITY OF BEAUMONT, JEFFERSON COUNTY,TEXAS. Mayor Pro Tern Smith seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 12—011 4. Consider a request for a specific use permit to allow business offices in an RCR-H (Residential Conservation and Revitalization-H) District at 2453 Broadway. Administration recommended approval of the specific use permit Raymond Begnaud, representing Deli Management, Inc., has applied for a specific use permit. Deli Management has purchased the property at 2453 Broadway and has plans to convert the residential structure to offices for Jason's Deli. The office facility will consist of the 1,779 sq. ft. structure and seven proposed parking spaces at the rear of the structure. An 8'tall wood screening fence will be constructed along the south 72'of the east property line and along the rear of the property. An 8'tall wood screening fence already exists along the south 96' of the west property line. In 2010, Deli Management, Inc. received a specific use permit to allow business offices at 2400 Broadway,2406-08 Broadway, 2410 Broadway,2444 Broadway and 2455 Broadway. These buildings are the headquarters of Jason's Deli. The specific use permit was approved subject to the following conditions: 1. All parking lots must comply with City Standards. 2. No parking shall be permitted in the front yard of any of the properties. 3. All metal portable buildings shall be completely screened from any street. At a Joint Public Hearing held February 20,2012,the Planning Commission recommended approval 5:0 of a specific use permit to allow business offices in an RCR-H District at 2453 Broadway subject to the following conditions: Minutes—February 28,2012 1. No additional permits or release of utilities shall be granted until the conditions of the prior specific use permit (2029-P) have been complied with and with a modification to the landscaping/screening requirements along the east, west and south property lines (8' tall wood screening fences along the south 72' of the east property line, along the south property line and along the south 96'of the west property line and no 10' wide landscape strip along the east, west and south property lines). Councilmember Pate made a motion to ADOPT AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW BUSINESS IN AN RCR-H (RESIDENTIAL CONSERVATION AND REVITALIZATION-H) DISTRICT AT 2453 BROADWAY STREET IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Getz seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 12 —012 Mayor Ames read the announcement regarding. Executive Session being held at the conclusion of the General Business portion of the meeting. 5. Consider adopting guidelines for acceptance of private streets and infrastructure for maintenance by the City of Beaumont. Administration recommended adoption of guidelines for acceptance of private streets and infrastructure for maintenance by the City of Beaumont. Most new subdivisions include streets built to City standards and then dedicated to the City for ongoing maintenance. However, some subdivisions are developed with private drives and are gated for added privacy. The ongoing maintenance and repair to their drives, water, storm drains and other infrastructure is the responsibility of the property owners' association. From time to time, cities are approached and asked to take over the maintenance of these neighborhoods' infrastructure. The concern for the City is the condition of infrastructure, as the costs for future maintenance and repairs will then be borne by the taxpayers. In order to provide a fair method to evaluate whether or not a private drive subdivision should be accepted by the City as public, we are proposing the attached guidelines. These guidelines provide for an application process whereby a neighborhood can petition to have their infrastructure made public. The process includes an application fee, an engineering survey and costs for a plan to make any necessary improvements to bring the infrastructure up to City code. Following this, the Planning Commission would consider the plan for infrastructure improvements and make a recommendation to City Council. If the plan is approved by the Council, any necessary improvements would be made by the property owners and then considered for acceptance by the Council. The subdivision would then be re-platted to reflect that the infrastructure was then public. Minutes—February 28,2012 At a Joint Public Hearing held February 20, 2012,the Planning Commission recommended approval 5:0 to adopt a policy creating guidelines for acceptance of private streets and infrastructure for maintenance by the City of Beaumont. Councilmember Getz made a motion to APPROVE A RESOLUTION THAT THE CITY COUNCIL HEREBY APPROVES GUIDLEINES FOR ACCEPTANCE OF PRIVATE STREETS AND INFRASTRUCTURE FOR MAINTENANCE BY THE CITY OF BEAUMONT. Councilmember Smith seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Resolution 12 — 044 6. Consider a request to close a portion of right-of-way on Trinity Street at the railroad tracks next to Beaumont Fire Station No. 1, Ebenezer Baptist Church and Eastham Forge, Inc. Administration recommended approval of the closure. The City of Beaumont Public Works Department has requested the closure. The purpose of the closure is all part of an effort to create a quiet zone so that trains do not have to blow their horns at intersections in the area. Where Neches and Pearl cross the tracks, actual quiet zones will be created by installing the appropriate signalization. Nearby are the Cathedral Square residential development, Ebenezer Church and St. Anthony Basilica. These properties will greatly benefit by the quiet zone. Entergy states that it has an electric distribution power line in the right-of-way. As long as the current utility easement stays in place, Entergy does not object to the closure. The closure of Trinity Street at the KCS Railroad tracks will be marked with traffic signs identical to the ones used at the closure of Main Street at the KCS Railroad tracks. At a Regular Meeting held February 20, 2012, the Planning Commission voted 5:0 to approve the closure of a portion of right-of-way on Trinity Street at the railroad tracks next to Beaumont Fire Station No. 1, Ebenezer Baptist Church and Eastham Forge, Inc. Councilmember Samuel made a motion to ADOPT AN ORDINANCE ENTITLED AN ORDINANCE CLOSING A PORTION OF TRINITY STREET AT THE KCS RAILROAD RIGHT OF WAY IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Mayor Pro Tern Smith seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEMBERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Minutes—February 28,2012 Ordinance 12 - 013 COUNCILMEMBER COLEMAN - GAVE CONDOLENCES AND PRAYERS TO THE MOORE FAMILY ON THEIR LOSS COUNCILMEMBER GETZ- ANNOUNCED THAT TEMPLE EMANUEL WILL BE HAVING THEIR DELI DAY NEXT WEEK, TICKETS ARE AVAILABLE FOR CORN BEEF OR TURKEY SANDWICHES COUNCILMEM13ER WRIGHT- COMMENTED ON BLACK HISTORY MONTH,THIS IS THE LAST COUNCIL MEETING FOR THE MONTH OF FEBRUARY,WANTED TO CALL THE NAMES OF VERY SIGNIFICANT BLACK PEOPLE THAT SHE HAS INTERACTED WITH THAT ARE NOW DECEASED, MURRY J. FRANK, TERRY CHARLTON, AL PRICE, JOHNNY WARE,MARIAN DOLL LEWIS,LEANTHA J.RED,CLEVELAND NISBY, REV. G.W. DANIELS, ROBERT A. COOK, ELMORE WOODARD, THEODORE JOHNS, CLINTON WRIGHT, ANNA MAE SAVANT, ED SPROUT, AND GENE PERKINS, THESE PEOPLE WERE VERY INSTRUMENTAL IN HER LIFE AND CAUSED HER TO BECOME A STRONG PERSON AND INTERACTED WITH THEM NOW DECEASED, THE LIVING PEOPLE IN BEAUMONT THAT HAVE PROGRESSED BLACK HISTORY,WILL NOT CALL THE NAME OF THE MINISTERS BECAUSE THERE ARE SO MANY THAT HAVE HELPED THE CITY PROGRESS AND HAVE BEEN REWARDED OPENLY ALL THE TIME AND SO MANY HAVE DONE SO MUCH, THE PEOPLE THAT ARE WORKING WITH BLACK HISTORY MONTH THAT ARE LIVING ARE PAUL BROWN, NORRIS BATISTE, JOE DESHOTEL, DAVID MOORE, GEORGINE GUILLORY, DR. CARROLL THOMAS, CAROLYN GUIDRY,BOBBIE PATTERSON,RAYMOND AMBRES,JOSEPH SIMPSON, ZENOBIA BUSH, BISHOP CURTIS GUILLORY, ELEANOR MITCHELL, LEROY HENRY, WOODROW REESE, GWEN AMBRES, PAUL JONES, EVERETT "BO" ALFRED, RANSOM "DUCE" JONES, AND ED MOORE, ALSO TALKED MORE ABOUT BLACK HISTORY MONTH COUNCILMEM13ER PATE- COMMENTED ON HIS FRIEND RAYMOND AMBRES SITTING IN THE BACK OF THE ROOM AND THE APPOMATTOX CLUB CELEBRATING 85 YEARS IN EXISTENCE,WHAT A GREAT JOB THEY HAVE DONE IN THE COMMUNITY,ALSO COMMENDED HIS AMERICAN LEGION FRIEND MILTON CHATHAM WHO WAS RECOGNIZED BY THE NATIONAL ASSOCIATION OF UNIVERSITY WOMEN, ALSO FOR THOSE OF YOU THAT DID NOT GET AN OPPORTUNITY TO VISIT THE NEW FAMILY VIOLENCE FACILITY PLEASE DO,ENCOURAGED EVERYONE TO GO BY AND VISIT, CONDOLENCES TO THE FAMILY OF MR. JOHN POWELL,WHO WAS THE CEO OF CONN'S Minutes—February 28,2012 MAYOR PRO TEM SMITH - ASKED WHEN WILL THE STUDY OF THE ROADS BE COMPLETED, THANKED OFFICER GILMORE, FOR THE RIDE ALONG HE DID WITH HIM ON FRIDAY, FROM 5:30P.M. TO 12:30 A.M., IT PAYS TO WALK IN THE SHOES OF A POLICE OFFICER, OFFICER GILMORE IS FROM THE AREA THAT HE PATROLS AND HE HAS GREAT COMMUNICATION WITH THE KIDS AS WELL AS THE ADULTS IN THE NEIGHBORHOOD COUNCILMEMBER SAMUEL- THANKED COUNCILMEMBER WRIGHT FOR HER ACKNOWLEDGMENT OF BLACK HISTORY MONTH, HE BELIEVES THAT BEAUMONT AS WELL AS THIS STATE AND THIS COUNTRY IS WHAT IT IS BECAUSE OF CONTRIBUTIONS OF MANY PEOPLE OF ALL NATIONALITIES, BUT THIS MONTH WE ARE PARTICULARLY OBSERVANT OF THOSE CONTRIBUTIONS OF BLACK AMERICANS,EXTREMELY PLEASED WITH WHAT HE IS SEEING IN THE CITY ESPECIALLY IN WARD III, LAST WEEK HE HAD A VERY PRODUCTIVE MEETING WITH CITIZENS IN HIS WARD, FOR THOSE THAT ARE WATCHING VIA TELEVISION THERE ARE NEIGHBORHOOD ASSOCIATIONS THROUGHOUT THIS CITY WHO ARE NOW WORKING WITH MANY OF THE SCHOOLS IN THE CITY, THERE'RE THREE NEIGHBORHOOD ASSOCIATIONS IN THE NORTH END OF BEAUMONT,THEY ARE HELBIG, NORTH END AND BRICKYARD NEIGHBORHOOD ASSOCIATIONS, THEY ARE WORKING WITH THE PRINCIPALS AT SMITH MIDDLE SCHOOL,MARTIN ELEMENTARY SCHOOL AND MAE .ZONES-CLARK ELEMENTARY SCHOOL, THOSE SCHOOLS ARE WORKING AS HUBS IN THE COMMUNITY AND WORKING WITH THE NEIGHBORHOOD ASSOCIATIONS TO BRING ABOUT A CHANGE IN THEIR IMMEDIATE AREA, WHEN YOU LOOK AT THE SOUTH END OF BEAUMONT, CHARLTON POLLARD NEIGHBORHOOD ASSOCIATION IS WORKING WITH CHARLTON POLLARD ELEMENTARY SCHOOL, AS WELL AS THE KING MIDDLE SCHOOL WORKING WITH THE AVENUES NEIGHBORHOOD ASSOCIATION AND THE COLLEGE STREET CORRIDOR NEIGHBORHOOD ASSOCIATION AND THE HEART OF THE CITY NEIGHBORHOOD ASSOCIATION,SO THERE ARE ASSOCIATIONS THROUGHOUT THE CITY FOR A CITIZEN TO WORK IN, ENCOURAGE EVERYONE TO BE PART OF AN ASSOCIATION TO WORK ON SOLUTIONS TO SOLVE PROBLEMS IN THEIR NEIGHBORHOOD, ALSO SHOWED A SIGN THAT A NEIGHBORHOOD ASSOCIATION CREATED ON THEIR OWN, THEY ARE BEING VERY PROACTIVE WHEN MEETING AND WORK IN THEIR AREA, VERY PLEASED WITH WHAT HE IS SEEING IN THE COMMUNITIES, COMMENTED ON THE OZEN GIRLS BASKETBALL TEAM AS WELL AS THE OZEN BOYS BASKETBALL TEAMS THAT HAVE GONE AS FAR AS THEY HAVE CITY ATTORNEY COOPER- NONE Minutes—February 28,2012 CITY MANAGER HAYES - NONE MAYOR AMES- COMMENTED ON THE GIRLS HAVEN GUMso COOK OFF THIS PAST SATURDAY, ALSO THE TASTE OF THE TRIANGLE, COMMENTED ON THE NEIGHBORHOOD ASSOCIATION MEETING THAT COUNCILMEMBER SAMUEL HELD, ANNOUNCED THE BEAUMONT TRASH OFF THAT WILL BE HELD ON APRIL 14, 2012,THERE ARE DIFFERENT START UP LOCATIONS,PLEASE GO TO THE CITY OF BEAUMONT WEB SITE TO SIGN UP Public Comments (Persons are limited to three minutes) W. R. Sam, Sr. 1761 Rena Beaumont TX Thanked Mayor and Council for the job that they are doing, thanked everyone who participated in the NAACP Banquet, also commented on the community coming together speaking on behalf of the Citizen Advisory Committee, feels a lot safer because of the committee, he knows what they are and aren't doing, announced that the Citizen Advisory Committee will meet on tonight at 5:30 p.m., at the Beaumont Civic Center Council recessed into Executive Session at 2:19 p.m. EXECUTIVE SESSION * Consider matters related to the deliberation of the purchase, exchange, lease or value of real property in accordance with Section 551.072 of the Government Code, to wit: 625 Orleans Street— Hotel Beaumont Council reconvened the City Council meeting at 3:04 p.m. 7. Consider authorizing the City Manager, on behalf of the City of Beaumont, to acquire the First Mortgage Lien Note from Capital One Bank related to property at 625 Orleans known as Hotel.Beaumont, or to acquire the property out right from the owner in the approximate amount of$827,419 plus necessary cost and expenses. In 1998 the City of Beaumont borrowed $11 million dollars from the Department of Housing and Urban Development, Section 108 loan program. The Hotel Beaumont Project included a$2 million dollar loan and a$1.175 million dollar grant, pursuant to the special repayment provisions in the loan agreement, Hotel Beaumont or the owner has not made loan payment to the City of Beaumont, therefore the City of Beaumont has been repaying the $3.175 million over the past 13 years, with annual allocations of community development block grant funds. Capital One Bank has the first mortgage lien on the property, if the City of Beaumont acquires the note from Capital One, it would protect the City's investment in the property and control the future use of the building. The City currently has more than $28 million dollars in the General Funds fund balance, which equates to 26% of the General Funds annual expenditures. If approved the City plans to utilize the fund balance to purchase the Capital One note or the property. Minutes—February 28,2012 Administration recommended approval. The City Council discussed the details related to this item in an Executive Session, properly called and held, on February 21, 2012. Councilmember Coleman made a motion to APPROVE A RESOLUTION THAT THE CITY OF BEAUMONT ACQUIRE FROM CAPITAL ONE(OR ANY SUCCESSOR TO CAPITAL ONE)THE FIRST LIEN NOTE THAT EXISTS AND IS SECURED BY THE PROPERTY FOR THE ENTIRE AMOUNT OWED TO THE BANK UNDER SUCH NOTE AND THEN ACQUIRING TITLE TO THE PROPERTY BY EITHER FORECLOSING ON THE LIEN THAT EXISTS ON THE PROPERTY THAT SECURES SUCH NOTE OR TAKING A DEED IN LIEU OF FORECLOSURE FROM THE OWNER;OR BUYING THE PROPERTY DIRECTLY FROM THE OWNER FOR THE AMOUNT OWED TO CAPITAL ONE, SO THAT THE FUNDS ARE ADVANCED TO THE OWNER AND CAPITAL ONE AT CLOSING IN EXCHANGE FOR A DEED TO THE PROPERTY,AND WHICH FUNDING MAY BE ARRAIGNED AS A LOAN BY THE CITY TO THE OWNER IN EXCHANGE FOR A DEED TO THE PROPERTY;OR BIDDING FOR AND ACQUIRING OWNERSHIP OF THE PROPERTY AT ANY FORECLOSURE SALE CONDUCTED BY CAPITAL ONE OR ANY SUCCESSOR IN INTEREST TO CAPITAL ONE,AND ALSO ANY FORECLOSURE SALE CONDUCTED BY THE CITY. Councilmember Pate seconded the motion. AYES: MAYOR AMES,MAYOR PRO TEM SMITH,COUNCILMEM13ERS COLEMAN,GETZ, WRIGHT, PATE AND SAMUEL NAYS: NONE MOTION PASSED Ordinance 12 -445 There being no further business to discuss Council adjourned at 3:07 p.m. Audio available upon request in the City Clerk's Office. Be ky s, Mayor Gl. Tina Broussard, City Clerk h Minutes—February 28,2012