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Home My WebLink About05/19/1994 - Special Minutes City Council MINUTES CITY COUNCIL SPECIAL MEETING THURSDAY, MAY 19, 1994 5:30 P.M. COUNClLMEMBERS P~~_~inger, Council~6rouch, ~. ~,:/'~~ariott, F~ckson, Kennady, g~~~~~men~l~ son Jeffcoat STAFF PRESEN~' ~~& ~~la~.~ity Attorney Locke, ~!~::~.~. ,~!~".~C~Assistant C,ty ~,t'.~,.¢,;,! t~. "~-:,~: ~ -, ,.' ..... <,"..,' ,": · · 1~=.,,,..;~:.;~,~, ,?...,. -,~;.,.i~na~.;.!E~ive Director of ~,;......;-;.;.;,.t.~.~ ~,.,~.,..;;~.;.~,.,. '~.~,: .... ?.~.~ ........: .'.....', · :."~'.'A ~'~.:~:~:,'~..~ ~ca[~R~.;~s~s Schroeder 't:.'"~:::';.~,~- ;~'~;~::'-.'.~ ~,,'-. ~.:, ~.',' :'. *-'"~,-~' .'~'~ .~. ..:: .~.~'-~ .vF~..<Z;;r;{.~....?..~:: · , . ..~:.,.'..:.....,:- ' .. ,..=t,. . . ~?,.'~:~',!;~., '%~;~;¥:~no0'A~:~De~,,~ent Services D~rector · '~}~".:.~:.~ ~!~, ~~ ~~ of Management %g~}~'~...,,.,~i~'~iw~.~~y Secretary Hooks, · ".[:.",'i.'i~';.x~, . .:~.~:'~:.~.-.~'~" . .... ~'~:~'~'..:.-:::~Pu~hc InfuSion Officer Calhham, Administrative Assistant Kersten, Assistant City Attorney Shively VISITORS PRESENT: Refer to guest register Agenda Item No. 1 - STRATEGIC ISSUE NO. 2, ECONOMIC DEVELOPMENT AND ENDS STATEMENTS NO. 1, TRANSPORTATION/MOBILITY, AND NO. 7 EMPLOYMENT/PROSPERITY -- Consideration of a resolution authorizino the City Manager and Director of Finance to si.qn a letter of guaranty in an amount not to exceed $500,000 for the benefit of First American Bank as part of economic development incentive for North American Transit, Inc. City Manager Ragland introduced this item. He outlined the format of the following presentation. City Council Special Meeting Thursday, May 19, 1994 Page 2 Robert Worley, B/CS Economic Development Corporation Executive Director was the first speaker. He provided the history of this project, general economic development components, and his support for this proposal. Dale Marsico of the Brazos Transit System presented a video to inform the public of the Brazos Transit System's plans for the one hundred buses. He urged the Council to support this project. John McBeth came forward to explain the components of the bus manufacturing project, as well as the historical data on this particular project to date. Wayne Cook, President of North American Transit approached the podium. He introduced Lynn Wilkinson, General Counsel and Vice President of North American Transit. Mr. Cook expressed his strong interest to locate in College Station. He described the benefits of the new bus design. Illustrations of the bus were displayed. He emphasized the job opportunities for this community. A $1.5 million payroll. The jobs are much higher than minimum wage positions, such as engineering and design positions, as well as managerial positions. A representative from First American Bank addressed the Bank's positive perspective toward this project. Glenn Schroeder, Executive Director of Fiscal/Human Resources, spoke to the Council. He discussed the risk factors involved in this operation. However, in the analysis of this project, there are several elements which mitigate the risks. Assistant City Attorney Pete Shively explained the significant points within the economic development agreement. Due to the Planning and Zoning Commission meeting scheduled for 7:00 p.m. in the Council Chambers, the remainder of this meeting was moved to the Training Room within the City Hall Building. Mayor Ringer opened the floor for public comment at 7:15 p.m. Dick Birdwell, 1401 Post Oak Circle came forward. He commented that this proposition to guarantee loan for North American Transit is a venture capital proposition and he discouraged the use of taxpayer monies on this type of investment. Mr. Birdwell quoted the Texas Constitution, Article III. He emphasized the disadvantages of this venture. He continued to point out that this company does not have adequate capital. Mr. Birdwell urged the City Council to deny the proposed resolution. City Council Special Meeting Thursday, May 19, 1994 Page 3 Jim Gardner, 1214 N. Ridgefield, addressed the Council. He expressed concern about the precedent and if there are any state limitations. He questioned the legality of this venture. Janice Ray, 2700 Pierre Place, addressed the Council. She expressed support by beginning a trend to become involved in job creation activities in this community. Greg White, 2900 Pierre Place, addressed the Council. He noted the statistics of Iow income and poverty level employees in the community. This community does not have the employment base for individuals to survive economically. Mr. White encouraged council's approval of this project. John Anderson, 200 Fireside, addressed the Council. He acknowledged this particular risk as manageable and he supported the proposal. The Mayor asked for council discussion and/or motion. Councilman Kennady made a motion to deny funding in this matter. The motion failed for lack of second. Councilman Hickson made a motion to approve the resolution recommended by staff. The motion was seconded by Councilman Crouch. Each councilmember expressed their viewpoint toward the proposal. Councilmembers Kennady and Mariott spoke against the project. Assistant City Attorney Pete Shively and North American Transit legal counsel Lynn Wilkinson made remarks about the negotiation process of the economic development agreement. Councilman Crouch amended the motion to revise the resolution allowing the legal counsels to negotiate the issue of liquidated damages outlined in the development agreement thereby requesting staff to consider a higher value for damages. Councilman Fox seconded the motion which carried 6-1. FOR: Mayor Ringer, Councilmembers Mcllhaney, Crouch, Hickson, Fox, Mariott AGAINST: Councilmember Kennady Mayor Ringer emphasized the importance of economic development to this Council. City Council Special Meeting Thursday, May 19, 1994 Page 4 The Council voted on the original motion to approve the revised resolution as amended. The motion carried by a vote of 5-2. FOR: Mayor Ringer, Councilmembers Fox, Crouch, Mcllhaney, Hickson AGAINST: Councilmembers Kennady and Mariott Agenda Item No. 2 - Adjourn The meeting adjourned at 8:00 p.m. ATTEST: (~,y~ecretary Connie Hool~s APPROVED: