9 present when the meeting began — McNamara, Sarantou, Steel, Waniewski, Webb, Collins, Copeland, Ludeman, Martinez – Hicks-Hudson and Craig arrived after the meeting started.
Appropriation for engineering oversight of TWI project by Mannik & Smith, $235,000 Sewer Replacement Fund – relieved of Utilities & Public Service Committee then – Passed by all present.
Appropriation for General Resurfacing and 2011 Sidewalk Program, $4,124,000 CIP Fund Amended, Passed by all present
Contract for disposal of surplus City computer and electronic equipment Passed by all present
Amend TMC Ch. 1706, Dogs, for Humane Society authority, Dog Warden responsibilities, & penalties To: Public Safety, Law & Criminal Justice
Agreement with Lucas County for Dog Warden services, one year + 2 options, $60,000 General Fund To: Public Safety, Law & Criminal Justice
Authorize TEI agreement with Burkett & Sons, 30% award Passed by all present
Hicks-Hudson said her earlier concerns were answered by now State Rep. Ashford. She said that she thought for the record it should be stated that it was said Ashford had made certain promises to this company and it was her understanding that was not true. He had been working with the company to try to facilitate opportunities of support.
New Items from City Council
Amend TMC Ch. 105 to redivide the City into wards based on 2010 census Passed by all present
Amend Ord. 45-05 to add Grumpy’s parcel to Community Entertainment Dist. near Mud Hens stadium Passed by all present
Amend TMC 144.01(b) to add member representing Municipal Court on Civic Center Mall Oversight Passed by all present
Repeal Ords. 351-10 and 352-10 to withdraw a HUD Section 108 Loan for the Tower on the Maumee Tabled
McNamara gave the background on what took place a year ago, he played two short clips from the hearing last year. (Those of you read here already read this here. McNamara continued that the first BEDI grant was denied, there is a second round of BEDI grants with a deadline of this week, the previous resolution would allow them to again seek a BEDI, the financial structure has changed significantly from what was presented in 2010.
Tax credits reduced several million, historic tax credits reduced, another 1 million dollar grant was denied — McNamara said these significant changes are a concern but technically the administration can still apply, he thinks Council has not had a chance to review this at depth. He and Martinez understand the importance of the project, they don’t want to kill the project, if the Eydes default on a Section 108 loan the impact to the city is dire. McNamara and Martinez suggested legislation that would allow the BEDI grant to continue and would give council the opportunity to review the finance changes as a compromise.
Bell said they feel they need to move forward with this project, he didn’t think there was a need for an additional piece of legislation if they were going to allow them to seek the BEDI. The administration would like to continue with the current legislation and they think they are still meeting the intent since they were still seeking the BEDI, they would prefer to keep things in place as they are now.
Hicks-Hudson said she is thoroughly confused, she said it was an important project, she shares the concern about the 108 and a potential default, she is not clear as to the immediacy as to doing this tonight or the effect. She is in favor of moving to develop downtown, she is not prepared to vote either way on either piece of legislation tonight. Martinez said he would try to clarify it, Hicks-Hudson said she gets offended when something is given to her last minute without her being able to read it, that he couldn’t clarify it for her. Martinez said they got this last minute, they did not intentionally authorize them to seek an additional BEDI, he said he asked if this was a dead deal in January and he was told it was, had they known about the second BEDI attempt they would have acted sooner. No one wants this to fail but they have to do what they can to protect the city, there will be a hearing June 20th, he and McNamara had asked for a proforma and the last appraisal. McNamara said they didn’t get the changed numbers until today.
Sarantou wanted to know why the BEDI grant was denied. Tom Crothers said he provided the only communication he had, in which he was told the BEDI had not been approved. It was suggested that Toledo move forward on the section 108 alone, Crothers agrees with what Monske said before, he was given the proforma numbers on Monday, he does not take issue with Martinez’s indication that the taxpayer money would be a higher percentage and the project being scaled down from $40 million to $29 million, Crothers said there were other parts that had to come together before the 108 would be an issue, they are again seeking to apply for the BEDI and an updated 108 and then an ordinance would have to come before Council before that could be accepted/funding released.
The new market tax credits rely on the BEDI according to a representative from the Eyde Company, it would be known in September if the BEDI is approved but the other ones would come later. Ludeman said he was under the understanding that the reason the BEDI was not approved was there was not enough money to go around. Crothers said he did not know if that was the case, Monske said Ludeman was correct. He agreed with Hicks-Hudson, the BEDI could move forward in the next two days and they can work on amendments when they have a hearing on the 20th. The comfort level of them all having to be approved is still there. The BEDI grant is the most important piece since it’s the revenue stream.
Steel said the additional encumbrance on the 108 is a concern for him and an additional set of apartments downtown in play, there are already empty units downtown, will the Berdan project impact this one as far as saturation. He said when he hears the administration tell them they will inform them he chuckles since there has not been any communication on this project. Bell said they try to communicate, when Crothers had the information he shared it, other members had the information so he doesn’t know why Steel didn’t get it. Bell said since they still have the option of using a BEDI there was no reason to let them know. Steel said a significant funding shift should have been communicated to this council in some way.
Waniewski since they didn’t put a sunset clause in, the administration is still following the previous legislation, he also gets suspect when it’s said that they want to project taxpayer dollars then mention there is no local contractor or a PLA. He asked about the project being downgraded, he said who would ever think they would be arguing about too many market rate apartments.
Crothers said they did not learn about the second round of BEDI until June 14. Waniewski confirmed additional council approval would be needed to finalize the project and would most likely require new legislation.
Craig said the proforma indicates they would go forward without the BEDI, Crothers said that is correct but the new market tax credits rely on the BEDI, an additional $4.2 million goes away too. Craig said his fear is that they would go through the 108 and then we are stuck with a building, he wants assurances that they don’t spend the 108 loan until they have secured all of the funding necessary to complete that project. Crothers said the administration also wants to see that in place before any legislation is brought forward to approve the funding be given. Craig said he’s not opposed to anyone applying for the BEDI.
Collins said they have the $10 million 108 loan sitting on a desk somewhere at HUD, and we operated under the assumption that there would be no reconsideration of the BEDI so the deal was dead at the time. Crothers then summarized some of what he said before. Collins sought confirmation on when the second round of BEDI opened, though the representative from Eyde said there were several times when they were told the BEDI would be possible that did not materialize. Collins confirmed Toledo is the applicant for BEDI not the Eyde Company. He said they appear to be at the same crossroads they were at a year ago, where if they don’t move quickly the deal will blow up, this has the potential to blossom for Downtown, Collins said he asked on June 27 as to a MUI as it relates to this deal, it stated, any substantive amendments to the agreement would require additional council approval, and that was written by Law Director Adam Loukx, that document provides an expectation that if the funding scheme dramatically shifts to where we are at now, that’s significant, part of the rationale a year ago was we would not be moved from first position. Loukx said we don’t have a development agreement, we can’t spend a penny, we can’t appropriate, council has to be informed of the final deal, so he stands by what was in the June 28, 2010 memorandum, council would then have an opportunity to vote but we are not taking about a development agreement or an expenditure of funds. Loukx said if a change happened to a development agreement council would have to be involved, but there is no amendment to a development agreement this is a memorandum of understanding. Collins said he agrees with Loukx but it’s important to the decision making process that the funding scheme that was presented a year ago has changed since then. Collins then said the venture capitalist quote about blood on the rug, that the city is basically acting as a venture capitalist, that perhaps the Eydes should put more funding into this project. McNamara agreed with Loukx but from a good governance position they should do something before heading down the path is this good or not.
Webb wanted clarification as to the legislative options before Council, Ludeman suggested doing nothing, the Martinez/McNamara legislation repeals. McNamara said it does not appear there is support for the repeal legislation, this is not them bringing something in new. Webb said she understands why the legislation was sought, McNamara said the goal was to allow them to apply this time but to put a limit on how many times it can be done. Webb said there is a level of discomfort on the information on this project that is not likely so McNamara’s offer to allow them to file for the BEDI this time is reasonable.
Martinez summed up what he had stated before, maybe 108 is not the best type of funding could be asked in the future. Hicks-Hudson then took issue with repealing and then creating new legislation, she said that they do need to be careful with 108 funding. She then moved to table the legislation, it was not on the agenda since it had been removed so it couldn’t be tabled. Webb said chastising of Council for the lack of a sunset clause is undue that the June 2010 memorandum created assurances for members of Council that were concerned a level of comfort. She felt this could have been resolved through better communication. Loukx said he’s not going to comment on council is right or wrong, but no development agreement had been brought forward. Webb said the memo indicated any changes would be brought to council’s attention. Webb said this is more related to communication between the administration and council. Collins said it seems as if this is simple, we will have a sunset clause, either we get the BEDI or we don’t get the grant, at that moment we can call for a committee hearing and define how we want to go forward and the Eydes can come in and decide if they want to contribute more. If the BEDI is successful this time then they look at it further.
Table 328-11 vote – Yes means nothing will be done – no means other legislative options – McNamara, Copeland, Martinez voted no, all other members present voted yes. Motion tabled.
New Items from the Administration
Expenditure to KT/LCB for recycling, litter and environmental education programs, $20,000 SW Trust Passed by all members present.
Appropriation for 540 sq.ft. acrylic roofing at Collins Park Water Treatment plant, $36,000 Water Replc Passed by all present with the exception of Waniewski, Craig, Martinez who voted no. Craig said he was sorry he just couldn’t bring himself to vote for a $66.00 a square foot roof.
Street Lighting – Walnut Ave. from Delaware Ave. to north dead end Passed by all present.
Expenditure to TMACOG for 2011 membership dues, $59,334 General Fund 1st Reading
Levying assessments for 2010 Assessed Services Program – Street Services, $16,716,438 1st Reading
Levying assessments for 2010 Assessed Services Program – City-wide Street Lighting, $3,358,262 1st Reading
Levying assessments for 2010 Assessed Services Program – Downtown Street Lighting, $236,923 1st Reading
Levying assessments for 2010 Assessed Services Program – Trees, $3,107,118 1st Reading
Levying assessments for 2010 Assessed Services Program – Surface Treatment, $685,318 1st Reading
Levying assessments for 2010 Assessed Services Program – Weeds 1st Reading
Levying assessments for Roadside Drainage Systems at 1856 Raynor and 4128 Graceway, $1,872 1st Reading
Claims Settlement – Columbia Gas for 12″ main at Central & Secor by Water Distribution,$25,000 Risk Passed by all present
Claims Settlement – Buckeye Cablevision for 150′ mainline cable by Forestry boom truck,$13,000 Risk Passed by all present
Appropriation of program income derived from NSP 1 program for further use within NSP 1 program Passed by all present
Amend Ord. 148-11 to add 2 parcels to application to Clean Ohio Fund for former Plabell Rubber Passed by all present
Resolution – Application to Ohio TRAC for funding to design/construct I-75/Phillips-Willy’s Interchange Adopted by all present
That ends the agenda …
Absences: Hicks-Hudson 1
Sarantou 1
Steel 1
Webb 1
