HomeMy WebLinkAbout03/01/1993 Work Session
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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.
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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.
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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.
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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.
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City of Springfield
York Session Council Meeting
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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
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