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HomeMy WebLinkAboutMIN JAN 05 1982 REGULAR SESSION CITY COUNCIL - CITY OF BEAUMONT HELD JANUARY 5 , 1982 BE IT REMEMBERED that the City Council of the City of Beaumont , Texas , met in regular session this the 5th day of January, 1982 , with the following present : HONORABLE: Maurice Meyers Mayor Tom Combs, Jr. Councilman, Ward I Evelyn M. Lord Councilman, Ward II Calvin Williams Councilman, Ward III Wayne Turner Councilman, Ward IV Ray Riley City Manager Kenneth Wall City Attorney Myrtle Corgey City Clerk -000- The Invocation was given by the Reverend Doug Rathgeber, St . John' s Lutheran Church. The Pledge of Allegiance was led by Councilman Combs. -000- Mayor Meyers issued the following proclamation: "National Year of Disa- bled Persons in Beaumont" - 1982 . -000- In answer to phone calls requesting an opportunity to express thoughts relative to the item on today' s agenda proposing the name change from Fourth (4th) Street to M. L. King, Jr. Street , Mayor Meyers recognized the following citizens who wished to speak: Messrs. Mel Shelander, Attorney, 245 N. 4th Street ; Archie Ezell , re- presenting 4th Street Auto Parts ; Bill Schmidt , Schmidt Saw & Knife Works , 4th Street at Corley; Buddy Blake , member of the Board of Directors of the Old Town Neighborhood Association; Leroy Lumpkin, 875 N. 4th Street ; and J. C. Leggett , 1849 Washington Blvd. ; address Council in opposition to the proposed name change. Mr. Bruce Vincent , 5730 Viking, addressed Council to question the City' s financial involvement with the proposed construction of a downtown hotel. -000- Ordinance 82-1 granting a specific use permit for professional offices on a seven-acre tract in the 3500 Block of Delaware zoned RM-H (requested by Carl Kohler) was considered : ORDINANCE NO. 82-1 ENTITLED AN ORDINANCE FOR THE ISSUANCE OF A SPECIFIC USE PERMIT TO BUILD PROFESSIONAL OFFICES IN AN RM-H (RESIDENTIAL MULTIPLE DWELLING - HIGH DENSITY) DISTRICT ON PROPERTY DESCRIBED AS 7 . 0 ACRES LOCATED IN THE 3500 BLOCK OF DELAWARE AVENUE , BEAUMONT, TEXAS. The ordinance was approved on a motion made by Councilman Combs and seconded by Councilman Williams . Question: Ayes : All Nayes : None -000- -1- January 5 , 1982 Resolution 82-1 providing for the preliminary steps necessary for the annexation of 157 acres immediately west of Municipal Airport , including development of a service plan and the scheduling of public hearings to be held February 1 and February 17 , 1982 was approved on a motion made by Councilman Combs and seconded by Councilman Lord. Question: Ayes : All Nayes : None -000- Resolution 82-2 providing for the preliminary steps necessary for the annexation of 76 . 5 acres west of the west city limit line south of Washing- ton Boulevard , including development of a service plan and the scheduling of public hearings to be held February 1 and February 17 , 1982 , was ap- proved on a motion made by Councilman Williams and seconded by Councilman Turner. Question: Ayes : All Nayes : None -000- Resolution 82-3 authorizing final payment of $33 ,935 . 33 to Russ Miller Construction Company (actual cost of project - $304 ,727 . 05 ) for the con- tract for street and drainage improvements in the Charlton-Pollard Neigh- borhood , Census Tract 17 (C.D.B.G . , 4th year) was approved on a motion made by Councilman Combs and seconded by Councilman Turner. Question: Ayes : All Nayes : None -000- Resolution 82-4 authorizing an amendment to the lease agreement with Central City Hotel, Ltd . , developers for the downtown hotel , extending the option for repurchase of the parking site for four (4 ) months to May 1st , was approved on a motion made by Councilman Lord and seconded by Councilman Combs. Question: Ayes : All Nayes : None --000- Resolution 82-5 authorizing the purchase of two ( 2 ) 4-door sedans to be used by Sanitation and Water Utilities at a cost of $12 ,074 . 44 ; one (1) 4-door station wagon at a cost of $8 ,202 .48 to be used by the Fire De- partment ; and four (4 ) 3/4-ton trucks with service bodies for use by Water Utilities at a cost of $41 , 912 . 24 from Beaumont Motor Company at a total cost of $62 ,189 . 16 was approved on a motion made by Councilman Lord and seconded by Councilman Turner. Question: Ayes : All Nayes : None _000- Resolution 82-6 authorizing purchase of ten (10) high-back pressure foam makers for the Fire Department from Arthur Dooley & Son at a cost of $7 ,250 . 00 was approved on a motion made by Councilman Turner and seconded by Councilman Combs . Question: Ayes : All Nayes : None -000- Ordinance No. 82-2 changing the name of Fourth Street to "M. L. King , Jr. Street" effective, January 15 , 1984 , was considered : ORDINANCE NO. 82-2 ENTITLED AN ORDINANCE AMENDING CHAPTER 23 OF THE CODE OF ORDINANCES OF BEAUMONT , TEXAS , AND IN PARTICULAR THE NAME OF THAT CERTAIN STREET AS INDICATED UPON THE OFFICIAL STREET MAP OF BEAUMONT, TEXAS , BY CHANGING THE NAME OF FOURTH STREET TO "M. L. KING DRIVE" .. The ordinance was approved on a motion made by Councilman Combs and se- conded by Councilman Williams . Question : Ayes : All Nayes : None -2- January 5 , 1982 Resolution 82-7 appointing Raymond Chaison as chairman of the CDBG Citizens Advisory Committee and appointing Dolores Lawless as vice chairman was approved on a motion made by Councilman Williams and seconded by Councilman Lord . Question: Ayes : All Nayes : None --000- Councilman Combs questioned schedule for landscaping the Lake. Councilman Turner expressed his concern for the vandalism. of trees planted on Phelan Boulevard. Councilman Lord expressed hope that trees might be donated to the City as replacement for these damaged trees . .-000- The Reverend Rathgeber, St . John' s Lutheran Church, addressed Council to ask who to contact in the event that civic groups , etc. , might want to donate some trees . Mrs. Delia Harrington, 815 Willow Street , addressed Council to ask that two ( 2) hollies and a yew located at 695 Willow at Hazel be considered for donation to the City. Mr. Bruce Vincent , 5730 Viking , again questioned $750 ,000 grant (UDAG grant) loan to developers for the proposed downtown hotel . -000- There being no further business , the meeting was recessed before continu- ing with the City Council Workshop Session. -000- I , Myrtle Corgey, City Clerk of the City of Beaumont , Texas , certify that the above is a true copy of the Minutes of the regular City Council ses- sion held January 5 , 1982 . Myrtle Corgey City Clerk -3- January 5 , 1982 EXCERPT FROM REGULAR CITY COUNCIL SESSION HELD JANUARY 5 , 1982 CITY MANAGER RILEY: Item 5 is a resolution which authorizes an amendment to the current lease agreement with Central City Hotel concerning parking in the Central Busi- ness District. I think it is appropriate to explain that this resolution is merely the extension of the resolution . . . of the agreement which was approved in February of 1980 concerning the acquisition of the site from the CCDC - Ben Rogers is the trustee for the proposed construction of parking. There are actually three parcels involved in the property which is located south of Main Street at Fannin. Of the three parcels acquired , one was purchased from CCDC, some 36 ,600 square feet and then the Lombardo Estate , some 7 , 200 square feet - a total of 43 ,800 square feet in the area. The lease agreement related to the Hotel having the option for the property . . the owners . . the developers of the Hotel would be able to repurchase the site in the event that parking was not provided by the City. In effect , it was a protection for the proposed construction of the Hotel so that adequate parking would be provided . Subsequently the change . . . the plan has been changed in which the parking will be constructed by the developers of the Hotel pending the approval of the Section 108 C.D. loan and the award of the . . . the use of the UDAG grant . In the event that the hotel is constructed , this will have virtually little effect because there is not any advantage to the repurchase of the site ; but provided that the hotel is under construction by May the lst , which is just four months , then the option would be continued for the repurchase of the site. It ''s merely protection for the developers of the Hotel to be able to continue with providing parking in the event that the other part of the plan concerning the Section 108 was not funded . This is in accordance with the existing lease agreement and there is no change except to extend it for the period of four months to provide for the construction of the Hotel . It does give them the option for a period of one year. It might be appropriate here to discuss for just a minute the plans I think which we had at the workshop concerning the C.D. Section 108 and how this does relate to the parking requirements. The Section 108 - $1,050 ,000 in effect is a loan guarantee by the Department of Housing and Urban Develop- ment to the City and it can only be used for site acquisition and clearance. The $1 , 050 , 000 would be used for the acquisition of the site and the clear- ance for the purpose of construction of the Hotel. For the repayment of that loan, the developers would pay as part of the lease agreement, which would be a period of 99 years , some $100 , 000 per year plus a percentage of the gross receipts of the Hotel , which would commence at . 23o and increase during the period of the lease to to T believe by 1990 . We anticipate that that will have a substantial yield to the City . . . it ' s the effective rate of about 50 of the net income of the Hotel . In addition to that , the repayment then of the Urban Development Action Grant which is made to the City in the amount of $750 , 000 will be repaid to the City by the developer in the amount of $1 , 000 , 000 over approximately a ten-year term and that will be used for other improvements within the com- munity -- C . D. eligible type projects . That $1. 0 million is not returned to the Department of Housing and Urban Development but retained in the City which is again then used for other Community Development eligible projects . In the long run, the City, because of the economic development prospects , will have other benefits related to , first of all , the taxes that will be derived . It is not a tax-exempt project as far as the property taxes and the full taxes will be paid on the entire project . And , secondly, of course , the Hotel will yield to the City an additional estimated $125 , 000 a year in Hotel Occupancy Tax. So , the project is totally developed around an econo- mic development program. In effect , to take the funds which are available - some $1 ,800 , 000 from the Community Development Section of the Department of Housing and Urban De- velopment and use it to promote the redevelopment and the activation of the Central Business District . This resolution merely continues to keep . . the developer has the option then of acquiring the site in the event that they do build the hotel and the park- ing is not constructed. EXCERPT FRQM REGULAR CITY COUNCIL SESSION HELD JANUARY 55 1982 Page (In answer to a question by Mr. Bruce Vincent at the end of the regular session, City Manager responded . ) The $750 , 000 is a grant to the City. They City may use it for economic development by loaning it to the developer . The repayment of the $750 ,000 will be made in the form of 250 of the net profit of the hotel corporation and all total of it due at the end of 10 years . In other words , it will be paid off in advance but in the event that the net profit does not yield the full amount , the whole total million - all principal and interest would be due and payable at the end of 10 years. We estimate . . . the Department of Housing and Urban Development estimates it will take about eight years for it to pay out . END OF EXCERPT.