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HomeMy WebLinkAbout03-15-1983 Council Meeting Minutes 363 A regular meeting of the Canton City Council was held on March 15th, 1983 in Council Chambers. PLEDGE OF ALLEGICNE OPENED THE MEETING FOLLOWED BY THE INVOCATION GIVEN BY NANCY WHITES CITY CLERK. Mayor Edwards asked for roll call at 6:30 P.M. Present: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. Absent: Alderman Kovachevich. PUBLIC HEARING - 6:30 P.M. RESOLUTION AUTHORIZING A MEMORANDUM OF INTENT BETWEEN THE CITY OF CANTON AND THE KROGER CO. FOR THE ISSUANCE OF $800,000.00 REVENUE BONDS. The proposal of the Kroger Company, that the city council approve a project to be located at 1741 E. Chestnut, consisting generally of the remodel- ing of an existing Kroger supermarket, and the estimated cost of such project in an amount not to exceed $800,000.00, and to authorize the financing of such cost by the issuance by the city, of industrial development revenue bonds, which bonds will not constitue a debt or pledge of the faith and credit of the city. Sally Hamilton Attorney for the Kroger Co of Cincinnati Ohio, she reported that there are 58 current employees, and they hope to increase employment by adding a cheese shop and a floral area. There hope is to increase the general revenue. Interest on the bonds is tax exempt to the person who lends the money, in this case its Morgan Gurantee Trust Co of New York. Under the federal law that makes d- interest on these bonds tax exempt, there has to be a public hearing before the Ur City of Canton can issue these bonds. Q Jim Malmgren City Attorney stated that a notice by publication in the Canton Daily Ledger was had on March 1st, 1983. The Canton Daily Ledger is a secular Q newspaper and daily publication, and published within the corporate limits of Fulton County, Canton, Illinois. The public hearing was then opened to the citizens. Those wanting to speak and their comments are as follows: Beryl Conrad asked if they will be paying taxes on the building? Attorney Hamilton answered by saying "yes," there will be no exemption from local property taxation. Jack Yancick Western Illinois Labor Coalition, were in full accord with the agreement the Kroger Co is trying to reach with the city of Canton because if anything will update our business community were for it. Our one request is, when you let contracts and everything is finalize, if you would do it at the prevailing rate. Attorney Hamilton stated, that, that is Kroger's practice. Jim Malmgren City Attorney noted that the city adopts annually a resolution approving the prevailing rates, we do have such a resolution in force. John Carroll commented that grocery stores are not an endangered species. The main issue is not Kroger, but tax exempt bonds. We should be very careful in what we use them for, and when, or whether we use them at all . Because we are extending the lender from paying his income tax on this loan. The radio had announced a number of banks that were paying only 2.7% income tax on the interest they were taking in on loans, because these particular banks were loaded with tax exempt bonds. Are we going to set a precedent and give tax exempt bonds to everything that comes along. Mayor Edwards hopes this establishes a good prece- dent, I hope we further develop Canton and several industries as well as Kroger's. Attorney Hamilton said that Mr. Carroll 's statement was very eloquent of a widely state view. She commented that grocery storescertainly are not an endang- ered species, but on one sense it's worth pointing out that the margin of profit is extremely slim. If you can make one penny profit on a dollor of revenue your doing well . She stated that your not alone in thinking that banks need to pay more tax, but business has to take advantage of what it can in order to survive. She did not agree with his conclusion, but stated it was nice to here. Normand Eldridge stated that most people he talked to are in favor of the bonds, as long as the city is not responsible, and glad that they are wanting to remodel . Attorney Hamilton stated that she will assure that the City of Canton will not be responsible for these bonds. Jim Nelson Executive Director of the Chamber of Commerce said he is excited to have Kroger do this, you have the full support of the chamber. Council members commented: Dave Dorgan Community Development Director stated that part of the rationale for industrial revenue bonds is that it may exempt some federal taxes, but its in hopes of it increasing local taxes, property taxes and sales tax. Bill Larsen stated that we've seen a large unifying force within our community, and closing ranks,and people in the business community, to organize labor from community organizations pitching in trying to make progress in our community. And this is a very tangible step toward creating that progress and creating jobs 364 CONTINUED MARCH 15th, 1983 and bettering our community, and I- offer my full support for the resolution. Motion by Alderman Savill , second by Alderman Sarff to adjourn the public hearing. Voice vote, motion carried. Council reconvened in open session at 6:47 P.M. RESOLUTION - AUTHORIZING THE MEMORANDUM OF INTENT. First reading, read by title. Motion by Alderman Sarff, second by Alderman Savill , the resolution be adopted. Discussion. Jim Malmgren City Attorney reported that he had con- ferred with the city's bond counsel in Chicago, they had three things to say to a minor in nature regarding amendments to the resolution and the agreements. One amendment to the agreement was major and would point out that it has been added to the memorandum of intent, language to the effect that the city's cost including the attorney fees paid by the bond purchaser. The memorandum of intent should be the same. Roll call . AYES: Aldermen Horr, Larsen, Carl , Grant, Sarff, Savill , Hammond. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. Resolution being #978. MINUTES OF MARCH 1ST MEETING. Alderman Larsen stated that a correction under Bids-City Audit, Hocker & Hocker should read . . . fiscal year 82-83 $7,590.00 and fiscal year 83-84 $7,895.00. Motion by Alderman Carl , second by Alderman Horr, the minutes of March lst as corrected be accepted and placed on file. Voice vote, motion carried. BILLS FOR FEBRUARY. Motion by Alderman Hammond, second by Alderman Sarff the bills be paid. Discussion. Alderman Hammond noted a correction on the water dept. gasoline, should read street dept gasoline. Fire dept gasoline should read diesel fuel . Roll call . AYES: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. NAYS: None. Motion carried. COMMITTEE REPORTS: PLANNING AND ZONING. The city clerk read the following letters from the commission: The commission recommends on a five to four vote, that the up- town Redevelopment Plan subject to changes be approved. Also, the commission recommends that the Industrial Park be annexed prior to purchase then have it zoned. Motion by Alderman Horr, second by Alderman Savill that the reports be placed on file. Voice vote, motion carried. Finance. Council Action Motion by Alderman Carl , second by Alderman Hammond, that the bid of Peat, Marwick and Mitchell , in the amount of $12,000.00 for the years 1982-1983 and 1983-1984 for the city audit be accepted. Discussion. Alderman Sarff asked why the 3rd lowest bidder was accepted over the low bidder? Alderman Carl said that the city would put in more participation in the low bids. Roll call . AYES: Alder- men Horr, Larsen, Carl , Grant, Sarff, Savill , Hammond. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. Motion by Alderman Carl , second by Alderman Grant, that the city sign a 5 year contract with Watertower Paint and Repair. Discussion. Roll call . AYES: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. Negotiations, Grievance & Personnel . Council Action None. Community Development. Council Action Motion by Alderman Larsen, second by Alderman Sarff, that Dave Dorgan's salary be $27,500.00; $20,000.00 to be paid from the Community Development Fund and $7,500.00 be paid from the general fund, and the $135.00 car allowance to be continued until the end of the current hud grant. Discussion. The salary be retroactive from March 7th, 1983. Roll call . AYES: Aldermen Horr, Larsen, 365 CONTINUED MARCH 15TH , 1983 Carl , Grant, Sarff, Savill , HOrr. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. Dave Dorgan commented that he had attended a meeting on CDAP program and what their conditions will be on applications. They have set a deadline of May 2nd for receiving applications. Dave is wanting direction from the council on geering the application towards the uptown plan. There are 3 types of appliations 1 . Housing. 2. Public Works. 3. Economic Development. The area the downtown plan would come under is by and large the application of public works type activities, creation of sidewalks, streets. Under economic development you could make an application to assist a business going into our industrial park area. His reason for having preference for the downtown plan that it also has economic indicators. Also, the county is very much seeking to help assist people with applications to go into the industrial park area. Part of the problem with making an application within the same area of the economic area, the state does not view those applications as being so different. Jim Malmgren stated that what ever direction that the council gives Dave is not final , it does R not constitute and official endorsement of the purposed changes to the plan made by Cliff. The entire proceeding is always under the jurisdiction and control of the city council . Dave Dorgan stated that the city is eligible for $750,000.00 under this grant program. The actual way we have it set up, it would cost in �'' the neighborhood of $550,000.00. Cliff Sagaser asked Dave is we could combine Q this application with any of the utilities in the industrial park, such as the Q lift station? Dave agreed that it could be done. Alderman Carl feels that if all of the $750,000.00 is not used for the downtown, he wants the council to consider the Fairview Heights area as the number one priority for water and sewer. Alderman Sarff wants to go on record agreeing with Alderman Carl to consider the Fairview Heights area. Alderman Carl felt the critical area for Fairview Heights is the water line. Dave Dorgan stated that you can use part of the application evaluation is based on leaverage dollars, in terms of the downtown area you have the leaverage in terms of the tax increment district. In the Fairview Heights area you would need 15% of the project cost, as you don't have leaverage in this area. Motion by Alderman Carl , second by Alderman Sarff, a grant application be drawn up for the tax increment area to be the first project area and Fairview Heights the secondary area. Discussion. Voice vote, motion carried. Legal & Ordinance. Council Action None. PUBLIC HEARING - PROPOSED USES OF FEDERAL REVENUE SHARING FUNDS - 7:00 P.M. No comments were made by the citizens or council members. Motion by Alderman Hammond, second by Alderman Sarff to adjourn the public hearing. Voice vote, motion carried. Council reconvened at 7:03 P.M. COMMUNICATIONS FROM CLIFF SAGASER - CITY ENGINEER. Cliff stated that any part of the Uptown Redevelopment Plan is subject to change. Alderman Carl reported that the complaint he has heard most often about the plan is the people feel we have to accept it in its entirety. The way its been presented, its been approach- ed that way. At last night's Planning & Zoning meeting for example, they liked most of the plan, but not all , and if they had sometime to look at it and review it in the committee structure, the majority would have voted for it. The mayor said that the Planning & Zoning committee is suppose to meet monthly according to the ordinance. They did not meet last month, but the plan has been in the building and widely publicized, and if they were real sincere, they would have looked at it. Cliff Sagaser stated that he didn't mean to take acception to what Alderman Carl said, but does want to correct the thought. Cliff said, "I don 't feel the error is in the way it was presented, because I have never presented it to anybody that that's it, cut or dry. " What happened at the Planning & Zoning meeting was, a motion was made and seconded, there was some discussion, generally they wanted the motion changed, but the man that made it, wouldn't allow it to be changed. So the Planning & Zoning Commission themselves, are guilty of what happened. Motion by Alderman Larsen, second by Alderman Savill , the city attorney be directed to see that publication take place for the necessary public hearing. Voice vote, motion carried. 366 CONTINUED MARCH 15TH, 1983 COMMUNICATIONS FROM MAYOR EDWARDS. The Fishermen's Club of the First Congregational United Church of Christ, supported the Uptown Redevelopment Plan. Motion by Alderman Sarff, second by Alderman Horr, the letter be placed on file. Voice vote, motion carried. Last night at the Planning & Zoning meeting, Gerald Martin brought his plat which Planning & Zoning refused to hear. Mayor Edwards thought it should be brought to the council level . The chairman of Planning & Zoning suggested that it's within a mile and a half and didn't need action from Planning & Zoning. Mayor Edwards said he didn't feel that way. Cliff Sagaser explained what it was, this is a parcel of ground some 700 acres and one mile south of Eagles Lodge. A county ordinance says that any time you divide any parcel of ground, regardless of size, into two pieces, that it be called a subdivision, and you get council approval . Cliff disagrees with this. Gerald Martin wants the city going on record saying they have no objections. The county had no objections. Bob Keime commented that the only reason it had to be subdivied on the county level , not for the purpose of building, but in the future they may wish to build a dwelling on the property. Jim Malmgren City Attorney stated that probably the city fathers would have no objection, but there is statutory authority in Chapter 24, if you have adopted a comprehensive plan for land use, as this city has, then you as a municipality acquire the authority to regulate subdivisions within a mile and a half of the corporate limits. Even though those subdivisions are contagious or are within corporate bounds. Gerald Martin said that St. David is also considering it tonight. Motion by Alderman Horr, second by Alderman Larsen, that the clerk and mayor be authorized to sign the plat. Voice vote, motion carried. John Windsor Chief Executive Officer of Windsor Newspapers met with the mayor, Dave Dorgan, Jim Malmgren. A meeting is schelduled tomorrow with I .H.C. , Unions, State Officials and DCCA on the retention of I .H.C. staying in Canton. Mayor Edwards recommended that $500.00 be given to the industrial committee, a non- for-profit corporation. Motion by Alderman Sarff, second by Alderman Grant, that $500.00 be given to the Industrial Development Corporation of Fulton County. Discussion. Alderman Sarff asked, in the event that I .H.C. is receptive to these monetary increments, would this $500.00 find its way into that fund? The mayor said yes it would. Dave Dorgan stated that the real attractive part of it is the non-for-profit part of it, and it could attract other jobs to Fulton County. Motion by Alderman Larsen, second by Alderman Horr, amendment to the motion, that the city council members are encouraged to donate their one month 's aldermanic salary in addition to the $500.00. Motion of Alderman Larsen, second of Alderman Horr are withdrawn. Motion of Alderman Sarff, and second of Alderman Grant are withdrawn. Motion by Alderman Sarff, second by Alderman Grant, the city donate $1 ,000.00 to the Industrial Development Corporation of Fulton County to help retain I .H.C. and that the aldermen of the City of Canton be encouraged to donate one month's salary from the city to this fund, and the second alternative would be to the fund "Saving Jobs for Fulton County." Roll call . AYES: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. NAYS: None. Motion carried. 7ayes 0 nays 1 absent. Cliff Sagaser said that he had encouraged the dept. heads to put in $50.00. OLD BUSINESS: ORDINANCE - REGULATING PARKING OF MOTOR VEHICLES UPON LINN FARMS, INC. PARKING AREAS BEING GENERALLY LOCATED AT ADDRESS OF.845 THROUGH 885 N. MAIN STREET. SEcond reading, read by title. Jim Malmgren City Attorney stated that the first page was changed by the heading, and the common address, and all business's in that area. Motion by Aldeman Grant, second by Alderman Sarff, the ordinance be placed upon its passage as amended. Roll call . AYES: Aldermen Horr, Larsen, Carl , Grant, Sarff, Savill , Hammond. NAYS: None. Motion acrried. 7 ayes 0 nays 1 absent. Ordinance being #967. ORDINANCE - AMENDING SECTION 30, CHAPTER 3, TITLE 9, APPERTAINING TO TRUCK ROUTES. Second reading, read by title. Motion by Alderman Sarff, second by Alderman Savill , the ordinance be placed on its passage. discussion. Alderman Larsen reported that the Legal & Ordinance Committee had favorable action to the ordi- nance. Roll call . AYES: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. 367 CONTINUED MARCH 15TH, 1983 ORDINANCE - AMENDING ORDINANCE #964 PROVIDING FOR THE MANNER OF SALE OF CERTAIN REAL PROPERTY. Second reading, read by title. Motion by Alderman Larsen, second by Alderman Hammond, the ordinance be placed on its passage. Roll call . AYES: Aldermen Horr, Larsen, Carl , Grant, Sarff, Savill , Hammond. NAYS: None. Motion carried. 7 ayes 0 nays 1 absent. Ordinance being 1969. NEW BUSINESS: RESOLUTION - APPROVING AN "OFFER TO PURCHASE REAL PROPERTY." First reading, read by title. Alderman Sarff stated that the monies for this property is coming from Hud Block Grant Funds. Dave Dorgan said that the home is presently occupied. Maximum for relocation is $4,000.00, but figures this would be less then $3,000.00. Motion by Alderman Carl , second by Alderman Sarff, the resolu- tion be approved. Roll call . AYES: Aldermen Hammond, Savill , Sarff, Grant, Carl , Larsen, Horr. NAYS: None. Motion carried. Resolution being #979. RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND LINN FARMS, INC. , APPERTAINING' TO PARKING AND CONTROL OF MOTOR VEHICLES. , Motion by Alderman d Sarff, second by Alderman Savill , the resolution be approved. Discussion. Jim (� Malmgren City Attorney said, the cost of the manufacturing and placement of the Q signs is at the expense of the property owner. There is no cost by the city, Q other than the cost of having it's personnel supervise its placement. Roll call . AYES: Aldermen Horr, Larsen, Carl , Grant, Sarff, Savill , Hammond. NAYS: None. MOtion carried. 7 ayes 0 nays 1 absent. Resolution being #980. ORDINANCE - AMENDING TITLE 10, CHAPTER 17, SECTION 6 OF THE CANTON MUNICIPAL CODE APPERTAINING TO ANNEXATION AND REZONING PROCEDURES. First reading, read by title. This was discussed by the committee. ORDINANCE - SUPPLEMENTING AN ORDINANCE MAKING THE ANNUAL APPROPRIATIONS FOR THE FISCAL YEAR BEGINNING MAY 1 , 1982 AND ENDING APRIL 30, 1983. First reading, read by title. ORDINANCE - AMENDING ORDINANCE #935. First reading, read by title. First reading, read by title. This ordinance annexed and rezoned property on Cherry Street, and there was a problem on the legal description. Motion by Alderman Horr, second by Alderman Grant, this be referred to the Legal & Ordinance Committee. Voice vote, motion carried. ADJOURNMENT: Motion by Alderman Savill , second by Alderman Sarff, to adjourn. Voice vote, motion carried. Council adjourned at 8:14 P.M. CITY)CLERK APPROVED MOOR R