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HomeMy WebLinkAbout12-30-1986 Special Council Minutes 129 ' A special meeting of the Canton City Council was held on ' December 30th, 1986 in Council Chambers. ' PLEDGE OF ALLEGIANCE OPENED THE MEETING FOLLOWED BY THE INVOCATION GIVEN BY CITY CLERK NANCY WHITES. Mayor Edwards asked for roll call at 6:30 p.m. Present: Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler, ' May, Chapman. Absent: None. ' PURPOSE OF THE SPECIAL MEETING WAS READ AND STATED AS FOLLOWS: ~ 1. Consider and take final action on: ' a. An Ordinance approving City of Canton Tax Increment area No.3 Redevelopment Plan and Redevelopment , Project; b. An Ordinance Designating City of Canton Tax O Increment Area No. 3; c. An Ordinance adopting Tax Increment Financing. ~ ~ 2. Consider and take action on the written and verbal = status report(s) from IPRI. , m Jim Burke President of IPRI gave the following report. Plant Q modifications are nearly completed with about 5 days work , left to get the plant into production. Our chemical supplier, , Valley Chemical Co. Pekin has graciously agreed to supply and carry us which helps alleviate the financial outlays reguired to get into production. We signed up another investor yesterday and have meetings scheduled for tomorrow and next week with several local potential investors. We prefer tp issue stock to bring in , many small local investors and retain control of the company right here in Canton, where jobs can be created and added ' as the company grows, rather than have a large company take a controlling interest and pack it up and leave town. We are also discussing the idea of a partial or total refinancing of our fixed debt plus additional working capital. This of course would mean at least some retirement of our principal debt with the city. I would anticipate that between income from production, and additional stock sales, IPR will make a substantial payment to the city within the next 60 days towards our indebtnesses. Our accountant is preparing a financial report which will be finished and sent to the city within the next several days. If it goes thru we would be paying off the HHS funds. In order to get the title to the building free and clear. As you know, Jim Schoenhard and I met with General Electric ' Co. at their request, on December 17th in Pittsfield Mass. The G.E. officials did not ask us to sign non disclosure agreements, but they did ask us to hold the information they divulged to us in confidence. They are not interested in ' acquiring IPR. They are interested in what the Canton Plan ' can do for G.E. once they have completed their project research and made a final decision. It is aii-ricipated there will be several more meetings between oficials of the two companies. 130 CONTINUED December 30, 1986 Motion by Alderman Workman, second by Alderman Chapman, we extend future credit to IPRI with payment due in 60 days. Alderman Sarff was wanting a clarification to the portion, as to payment not being made for 60 days. Alderman Workman felt that they would have the answers in 60 days and can't tell us anything two weeks from now. Voice vote, motion carried. Mayor Edwards stated that the council was in special session to consider action on ordinances which would allow a TIF District in the area of the Tempo store. The first order of business would be the suspension of rules, then consider a motion for passage and then enter into discussion. The public hearing is closed, were not asking for public input, but we may be asking questions of those in the audience. Motion by Alderman Sarff, second by Alderman May the suspension of the rules for the purpose of placing the 3 ordinances on their passage. Roll call. AYES - Aldermen Chapman, May, , Bohler, Workman, Sarff, Steck, Zilly, Kovachevich. NAYS - None. Motion carried. Alderman Kovachevich clarified his vote, he stated he never votes for suspension of the rules but felt this was an important issue and voted aye. ORDINANCE - APPROVING CITY OF CANTON TAX INCREMENT AREA NO. 3 REDEVELOMENT PLAN AND REDEVELOPMENT PROJECT. First reading, read by title. Motion by Alderman Sarff, second by Alderman Bohler, the ordinance be placed on its passage. Discussion. Mayor Edwards reported that the ordinance that is on the table is probably one of the more pressured ordinances that this council will face or probably ever face in this community. The recommendation from the chair is going to be for passage. Close to 6 years now I've been mayor of this town and we've worked night and day weekends, almost full time trying to recruit new industry into this community as well as new business. If this one is wrong, than CIC is wrong, IPRI is wrong, the Industrial Corporation is wrong, the state prison is wrong, right down the line, because this community has spent countless hours trying to recruit new business to this community. You will look at the surrounding towns of Havana, Macomb, Galesburg, Creve Couer, Pekin, Washington, Peoria, their all doing what the state legislatures gave them the tools to do up until midnight tomorrow night for passing TIF Districts. This is not an accident that this is available. This was done purposely to create new interest in the state of Illinois. Our own Representatives and Senators worked on this. The governor signed this at the Illinois Municipal League convention so that he would have all the communities throught Illinois present. This is a piece of legislation to spark the economy in Illinois. We usually do nothing, but if we do nothing were going to be the hole in the doughnut. And the surrounding communities that have the initiative to form these districts is going to be selling their products similarly cheaper than here in Fulton County. Probably more research has been done on this ordinance this evening than most other ordinances that have been presented. 131 CONTINUED December 30, 1986 Yesterday a telephone survey was done by Rhonda Vogel my secretary. Not knowing the people she was calling and not ~ identifying the people. The results are pretty much what y I expected, the citizens in the community want an opportunity ' to buy their groceries as cheap as they do in Pekin, Peoria, Macomb and Galesburg. The survey is available. Every ward ' carried on this sample calling, I realize ten people from ' each ward shouldn't represent the whole ward. My recommendation is we pass these ordinances. I'll now open the meeting up ; for discussion. Alderman Sarff stated that the last two weeks with the exception of Christmas Day I probably spent 2 hours a day average in ; calling with personal discussion on this topic. Just after the public hearing almost 1000 of my calls were in opposition ~ to the TIF District. And I wondered if I was getting a good ~ cross section of the population in my ward and since the ~ property is in my ward, and the only ward that does not have = a grocery store. ~ I took my copies of petitions of interested parties from over Q the last 5 years with what ever they were presenting me with. I felt since they were active at one point, possibly they would be interested in this one. I took the names and numbers of people in my ward, I was a little more specific in my ~ question. As almost in every case when I found out what their feelings was I took the opposite side, I felt I could argue ' either side with equal confidence. And what I found out from everyone I talked to would like to see a store built and this type of operation. But this is the only indication that my personal preference has to be set aside to represent that of what I feel is a representative sample of the people in my ward. And with their opinion and the input supplied by the Day & Palin Corporation concerning the need and projected income from this type of operation in that property, I think it can be done without a TIF District. I think there's ample ' customer response out there and this is only Canton. I think it can make ago without the TIF District. I think the people in my ward would support a store rather it had the TIF advantage or not. Alderman Steck said he took it upon himself to make several phone calls the day after I received the survey from the city. I felt the question that was asked was a good question, just needed a little more information and I added more information. I had 6 against and 2 in favor of it, and the others said they could go either way. The biggest draw back for those all against was the 3~ TIF District. I also took it upon myself to make a trip to Pekin and surveyed the County Market store and took prices of 9 items. I also went to the Kroger store in Pekin and took the same 9 items. There was only a 4~ difference in the price between the 2 stores. They were considerably cheaper than the stores in Canton. I agree with the survey that we receive from the TUI price comparsion. The grocery stores in the City of Canton should wake up with their prices, there's no doubt about that. I talked to several people who do their shopping outside the City of Canton and their biggest reason is the prices. So I personally can not support it at the 3~ level, and that's the reason. 13? CONTINUED December 30, 1986 Alderman Zilly said that 99~ of her phone calls that she had prior to today were people who were opposed to this and today I had several phone calls and all were for it. However, they ~ did not realize anything about the TIF District or the 3%. They were strictly for having a grocery store in an empty building without understanding the rest of the details. I do have a problem with 3~ financing. I would love to see a non conventional food store come to town, and I would love to see that building filled, but I can't go along with this concept, because I think its going to hurt more people than its going to do good. And I'm also havinq trouble designating this whole area as a blighted area, because there is a gas station there that's modern and a modern restaurant, and I think its a very loose interpretation of what a blighted area should be. + Alderman Rovachevich stated that he also took a survey in his ward. I asked most of them if they buy their groceries out of town? And they said yes, they did. What I wonder ' about is how the TIF Districts of Creve Couer are going to affect us if we don't approve it. I know its a very difficult decision. How is it going to effect any new business if we do go against this. We've got to go with the projections we've received. ' Alderman Workman said he had 5 calls this morning. And upon questioning, found out they were all from the same place, Maple Manor. They expressed their desire to have this type of market. And they expressed the thought that they would be able to get those groceries cheaper. Than I considered the point there, we all know that its for relative low-income ; people. Then later on in the day it reversed itself, I got 5 calls of people who were definitely opposed to it. They exchanged their thoughts that the interest concept was entirely wrong and that the city had know business involving itself in to helping the finance. They ask the question, well, if the city is qoing to have to raise taxes to pay its bills, what are we doing given the money back to this particular person. That was my cue for the day. Mayor Edwards said there is a big difference, but will go ' on. Alderman Bohler said everything's been pretty much said. I've had alot of calls for and against. One of the things I'd like to say...for myself I'm not for this for many reasons that would take along time to explain them all. Hopefully the citizens of Canton would think were not voting against this type of store as it is a good idea. Alderman May said that over the holidays out to the store I had lots of them in. I ask about everyone of them about this and they didn't know what it meant. I had to tell them what it meant. Alot of them said they wanted it and more than ~ of them said they didn't want it. I got calls at home at night when I was in bed, and wanted to know what I thought about it. I asked them what was their idea? And they told me they didn't want it. So, I'm going to have to vote no. 133 CONTINUED December 30, 1986 Alderman Chapman said as you probably know we took a survey ; by a voting thing in the stores. It came out about like WBYS survey, half for and half against. It really makes the decision , hard, but as far as my own personal feelings, I would like to see a store out there as I'd like to see something done with the buildings. But then on the other hand when I was in business for myself I couldn't get no 3~ money. And I'm afraid I'll have to go against it. My phone calls have been against it all the way. Mayor Edwards said I think the real thing lacking here is ' leadership. Each one of you have said you are going based I~, upon people being against it. And I think what you really need to do is say I was elected to lead this community. And when we come back with some of Palin's proqrams, don't forget , that when people say you've kept everybody out of Canton for many years that each one of you had an opportunity to sit 0 here and vote. Because your going to hear that over and over ~ again. I've heard it for twenty years, its going to be on ~ your conscience. = Alderman Sarff said he agreed with everything the mayor said, m that's why he took the time to get what he felt was a better Q sample then he would get if people were calling him. Because personally I'm in favor of it. But I was elected to represent the majority of people in my ward. Mayor Edwards said that means I should be against it to, because I was elected to represent the majority of people in the community. Alderman Sarff said it took alot of convincing for me to vote against the way I prefer. Normally know one calls me on a given topic, its upto me to decide what would be the best for the people in my ward. In this case, I felt it was the way to go. I've got enough people that I feel I can rely on for their judgement as a cross section that I don't think I can change my vote as I personally feel. Mayor Edwards said I definitely feel that each one of you must vote the way you feel. You have to! But I'm going to publicly embarrass Alderman May, because when I appointed him he said know matter what comes to this town I will be for it. Alderman May said I did? Mayor Edwards said you certainly did! Alderman May said I sure did. But this is something I can't see. Mayor Edwards said I know, its the first thing you've had to vote on that took courage. Alderman Steck wanted to know if it was to late to amend any of the ordinances? Jim Malmgren City Attorney said no, the ordinances can be amended at any time prior to voting. With the respect to the Redevelopment Plan and Project, particularly since Alderman Zilly questioned about the area that is purposed encompass, that can also be change upto the time you take final action. Alderman Steck said since its been his people that's been against it at the 3$ level. Motion by Alderman Steck to amend the ordinance from 3~ to 9~. CONTINUED DECEMBER 30, 1986 Jim Malmgren City Attorney said the motion should be to amend the Redevelopment Plan and Redevelopment Project. Mayor Edwards said we should ask Mr. Palin what this does to the project? Mr. Palin's comments were, there certainly has been a misconception on the 3~ money. We can look at ' that in many different ways. We have looked at that because of the way the statute reads. One of the things you can do in a TIF District is to buy interest down. It is not a loan, it is not a 3~ loan, its a commercial loan. The money that we have requested gives us a break even point and its necessary to have. When we look at that as land development cost, when we look at as interest buy down, it still requires the same amount of mone f or the ro ' ect to f 1 . Y P J Y . Mayor Edwards asked if it wouldn fly if its (ordinance) amended? Mr. Palin said, "no sir." Mayor Edwards said if this is not going to work I think maybe were creating a monster by putting in a TIF area. Because then we have to follow thru with it or dissolve it. We already have $2,000 in this ordinance. If its going to be killed then I think it should be killed good and clean. Motion withdrawn. Alderman May stated that when he was appointed he told the mayor he was not a yes man. I won't lie to you. Have I ever lied to you? Mayor Edwards said he didn't know, but this is not the place to discuss it. Alderman Kovachevich said he would have to vote the way he felt by the majority of his constituents he represents. Roll call. AYES - Alderman Kovachevich. NAYS - Aldermen Zilly, Steck, Sarff, Workman, Bohler, May, Chapman. 1 AYE 7 NAYS 0 ABSENT. Motion defeated. ORDINANCE - DESIGNATING CITY OF CANTON TAX INCREMENT AREA N0.3. First reading, read by title. Motion by Alderman Sarff, second by Alderman Zilly the ordinance be placed on its passage. Roll call. AYES - Alderman Kovachevich. NAYS - Aldermen Chapman, May, Bohler, Workman, Sarff, Steck, Zilly. 1 AYE 7 NAYS 0 ABSENT. Motion defeated. ORDINANCE - ADOPTING TAX INCREMENT FINANCING. First reading, read by title. Motion by Alderman Sarff, second by Alderman Chapman, the ordinance be placed on its passage. AYES - Alderman Kovachevich. NAYS - Aldermen Zilly, Steck, Sarff, Workman, Bohler, May, Chapman. 1 AYE 7 NAYS 0 ABSENT. Motion defeated. ADJOURNMENT - Motion by Alderman Sarff, second by Alderman May to adjourn. Voice vote, motion carried. Council adjourned at 7:08 p.m. V C Y CLERK APPROVED:. MAYOR