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HomeMy WebLinkAbout03/01/1993 Work Session . . . City of Springfield Work Session Council Meeting MINUTES OF THE WORK SESSION OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY, MARC~ 1, 1993 The City of Springfield Council met in Work Session in the Springfield City Hall, Meeting Room 2, Springfield, Oregon, on Monday, March 1, 1993 at 6:35 p.m. with Mayor Morrisette presiding. ATTENDANCE Present were Mayor Morrisette, Councilors Schanz, Walters, Berg, Burge and Adams. Councilor Maine was absent. Also Present were City Manager Michael Kelly, Assistant City Manager Gino Grimaldi, City Recorder Eileen Stein, and members of staff. 1. Allocation of HOME Funds for Use by a Community Housing Development Organization (CHDO) Housing Program Specialist Jim Long presented the staff report. He gave background information on Housing and Urban Development (HUD) HOME program regulations, requiring 15% of HOME funding be set-aside for allocation to Community Development Housing Organizations (CHDO). Mr. Long explained per the City of Springfield's 1992 grant, the amount that must be allocated is $54,270. Mr. Long told the Council, St. Vincent de Paul was the only CHDO to apply for set-aside funds from the 1992 grant and introduced Terry McDonald, Director of St. Vincent de Paul. Mr. Long explained that the Loan Review Committee decided to allot St. Vincent de Paul $54,000 in grant funds and a $38,000 no interest loan to construct a 10 unit low income housing development. Mr. McDonald stated the target income level is 50% of the medium and the Council discussed acceptable rent levels. The Council asked questions of Mr. McDonald about the proposed development regarding the monthly rent, the selection and screening of prospective tenants, the number of units, the square footage of each unit, and the commitment level of St. Vincent de Paul. Councilor Berg said he appreciates the design of the development, as well as the use of the property, and he has spoken with the neighboring property owners. Mayor Morrisette discussed Property Manager Jim Douglas' comment regarding case management as a program expense versus an operating expense. Mr. Long explained the basis for Mr. Douglas' comment and Mr. McDonald explained case management is an integral part of maintaining the integrity and value of the housing development. He further illustrated it is the case managers who work daily with the residents and their social needs. Councilor Burge asked questions about the vacancy percentage of 10 percent, the low replacement reserve figure of $1,200 per year and the annual property management figure of $3,000, which he felt was high. Mr. Long replied the vacancy rate is actually 5 percent, but he was being conservative in preparing the figures. . City of Springfield Work Session Council Meeting Page two Mr. McDonald added there will be an on-site property manager who will monitor the facilities and the maintenance of the property. By consensus, the Council agreed to approve the HOME funds allocation at their next regular session meeting. 2. Economic Development Summit Report Development Services Director Susan Daluddung presented the staff report and conveyed the wishes of Councilor Maine to move forward with this item to the level of the Council. She stated the purpose of the summit report is to create more jobs and boost the local economy. Councilor Burge gave an update of Councilor Maine's condition. The Council wished him a speedy recovery. Ms. Daluddung provided background information on the summit and specific involvement with various community groups and elected officials. She reported the Springfield Chamber of Commerce is supportive of the results and have agreed to be involved extensively. She referred to the annotations in the staff report. The *'s are items the Chamber will take the lead on, and the #'s are items the city will take the lead on. . Ms. Daluddung asked for the Council's reaction to the report and to list their priorities. The Council suggested priorities be developed by the summit participants. Ms. Daluddung replied that priorities can be developed by the Summit Committee with the input from the Council, and an Economic Development Plan can then be created. Councilor Berg suggested items #3,5,6,7,8,9 and 10 in the staff report should be priorities. He also stressed the need to implement tax increment financing and incorporate this theme into the recommendations. Councilor Burge agreed and stated this may be the time to educate the community on the need for tax increment financing. The Council discussed past efforts by the city in this area. Mayor Morrisette requested a status report on the projects in the staff report that are underway and which still need to be completed. Council agreed and suggested that report be sent back to the Summit Committee along with their recommendations. Councilor Walters suggested a business license fee as an economic development enhancement. He felt it would not be unreasonable to require such a fee, as the city already requires a home occupation permit. Councilors Burge and Berg questioned whether the establishment of such a fee would create a perception that the city is not really pro-business. Council discussed various options for business licenses. . One suggestion was a one time fee during the development review process. Another idea would be to phase in fees or have a graduated fee scale. The Council then discussed the merits of a business license fee, as well as issues of timing. ,. . City of Springfield York Session Council Meeting Page three The Council agreed to send the business license fee suggestion back to the summit participants for their comment. Mr. Tamulonis stated staff is frequently asked by prospective business owners how to apply for a business license and are surprised to learn one is not necessary. Mr. Kelly told the Council a business license fee would enable staff to assist business owners in developing/leasing their facilities, and the upcoming budget review of fees and charges may necessitate the establishment of a business license fee. Mayor Morrisette concluded that in many ways, now may be an easier time to justify this rather than later. Councilor Burge concurred a new fee may be a good idea, as long as the issue of timing is addressed, and who/what the funds would be used for. ADJOURNMENT The work session was adjourned at 7:30 p.m. Minutes Recorder - Shari Higgins . 8---&~ d Mayor ~ ATTEST: 1~ City Recor r #3765 .