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HomeMy WebLinkAbout04/17/1985 - Special Minutes City Council MINUTES SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 4:00 P.M. COUNCIL MEMBERS PRESENT: COUNCIL MEMBERS ABSENT: STAFF PRESENT: STUDENT GOVT. LIAISON: VISITORS PRESENT: Mayor Halter, Councilmen Boughton, Bond, Brown, McIlhaney, Runnels, Tongco None City Manager Bardell, Assistant City Manager VanDever, City Attorney Locke, City Secretary Jones, Director of Plan- ning Mayo, Council Coordinator Jones Mike Hachtman See guest register. Agenda Item No. 1 - Discussion of the College Station Industrial Park. Mayor Halter stated the purpose of this meeting to update the new councilmembers on the activities that have transpired concerning the College Station Industrial Park. He listed in chronological order the events from 1977 to the present that have transpired concerning the College Station Industrial Park as follows: (1) 1977-1978, a group of local property owners calling themselves the Property Owners Association presented the College Station In- dependent School District with a referenda attempting to limit their tax base. The CSISD School Board approached the city about doing more to diversify the local property tax base; (2) Former Mayor Lorence Bravenec along with several members of the Council met on several occasions with representatives from the Chamber of Commerce and the Board of the Brazos Industrial Foundation to en- list their help, but the city received relatively little encour- agement from these groups; (3) The city then approached a group of local businessmen in the community about initiating an effort to broaden the commercial and industrial base of the city; (4) 1980, The College Station Industrial Foundation grew out of these meetings with local businessmen in the community; (5) December, 1981, the Westinghouse rezoning case came before the Council and created a relatively unpleasant era for the city, which lead to an more intensified effort to develop an industrial park; (6) April, 1981, a non-binding survey concerning the question of in- dustrial development in College Station was included on the bal- lot of the Municipal Election and indicated that the city was in need of an industrial park; (7) The city began an attempt to lo- cate an industrial site; (8) July 9, 1981 the city working 00&857 SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 PAGE 2 through Mr. Robert Spearman purchased the land that is presently denoted as the industrial park; (9) At that time a tentative ver- bal agreement was made between the city and Mr. Spearman concern- ing the possibility of land trades, i.e. land on the front por- tion of the tract fronting Highway 6 under Mr. Spearman's owner- ship, for city owned land located on the back portion of the tract; (10) The city hired Turney, Collie and Braden to develop a comprehensive master plan for the park and provide recommenda- tions on how the land should be developed; (11) The master plan recommended that the city's land on the back portion of the tract be developed as residential with inclusion of a Golf course and country club in the developmental plans; (12) At approximately the same time Mr. Spearman decided to sell his interest in devel- opment in the community and sold his portion of the land to J.A.C. Developers, Inc. slowing down tremendously the process of development of the industrial park; (13) At this time the city, while attempting to develop the golf course and recreational area on the city's land, determined that the only way this development would occur was for the city to lease the property to private in- terest. However, during this period the City Charter prohibited the city from either trading or selling land; (14) August, 1983, the City held a General Charter Election to bring the Charter in- to compliance with State Law and an amendment was approved which authorized the city to enter into land trades and leasing ar- rangements; (15) October, 1983, the city annexed a large portion of the industrial park tract into the city limits; (16) November - December, 1983, J.A.C. Developers, Inc. asked the city to con- sider the possibility of allowing the use of Municipal Utility Districts (M.U.D.s) to finance infrastructure development in the industrial park; (16) 1984, the City Council approved a Resolu- tion in which the city agreed to allow for in-city M.U.D.s; (17) 1984, several events transpired that to a large degree destroyed the idea for development of the golf course, the hotel and con- vention center, and the recreational area, such as the announce- ment of plans for construction of the Hilton and Sheraton Hotels and the announcement by Richard Smith of his plans to develop a golf course and country club in the area; (18) 1984, J.A.C. De- velopers, Inc. sold their land to W.D. Fitch, a local developer, causing additional delays because of Mr. Fitch's desire to evalu- ate his position. Mayor Halter listed the items that the city has undertaken in de- velopment of the area as follows: (1) extension of water lines to the site; (2) construction of an overhead water tower; (3) construction of a sewer line along Green's Prairie Road; (4) com- pletion of engineering studies; (5) opening of bids for the con- struction of Green's Prairie Road, (6) issuance of State Health Department permits for three different sewage treatment plants. 00 858 SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 PAGE 3 Director of Planning Mayo explained that the infrastructure pre- viously mentioned by Mayor Halter is part of the overall compre- hensive plan for the development of the newly growing area in the southern part of College Station. He referred to the map depict- ing the city's Comprehensive Plan - 2000. He stated that the Council decided that the city should encourage growth to the south. He explained the reasons why this direction for growth was chosen over growth to either the east or west. He noted that the city has grown as far south as it can on the existing sewage treatment plant. City Manager Bardell stated that development is already occurring to the south along Highway 6. He noted that the Shenandoah Sub- division is presently pumping their sewage through three pump stations (lifting it three times) which is not a very economical way to handle sanitary sewage. He explained that as development occurs in this area the city will have greater pressure to pro- vide the first phase of sewage treatment. He reiterated that the construction of the infrastructure in the area is not occurring just to serve the industrial park, but is necessary to provide service to the other developments occurring in the area. Councilman Bond stated that the city purchased the property for the industrial park at a very opportunistic time and acquired more acreage than was perceived needed for its operation, there- fore providing the city with the opportunity to use the property for industrial development. He questioned whether at the very outset of the project it was contemplated by all parties involved that the city would not ultimately end up with the property in the rear, but that for industrial development the project would be a joint development venture between the city and the other property owner or the land in the rear would be traded for land more suitable for industrial development. He further stated his assumption that the city did not expect that it would be able to trade acre for acre. He asked that his thoughts be reaffirmed that the city intended that its ownership of property in the rear was not well defined for industrial development and if industrial development was to occur it would require a trade of land that would be determined by the market place. He stated his concern that after the other property has gone through several iterations of ownership, what was contemplated by one set of parties at the outset - which might not have been specified in writing - would become a new set of rules when dealing with each new ownership. Mayor Halter noted that the city purchased its property in the rear for $1,250.00 per acre and Mr. Spearman purchased the front portion of the property for $1,750.00 per acre. He stated that the original verbal agreement which was later worked out on paper 00 .859 SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 PAGE 4 specified that any land trades would be traded at that ratio of values. He pointed out that the city was not authorized even to contemplate any land trades until August, 1983 after the General Charter Election. City Manager Bardell stated that the city is not in the position to spend extensive dollars to develop the infrastructure in the industrial park, i.e. the streets and actual service lines; therefore, consideration has been given to the possibility of al- lowing its partner to do the actual development and then make the land trade on the basis of the land value undeveloped as opposed to the developed land. Councilman Bond asked if the Council committed 400 acres to the development of a wilderness park. Mayor Halter replied affirma- tively. Councilman Bond noted that the amount of acreage the city has to utilize for a trade for industrial development has been reduced by the dedication of this 400 acres to the development of a wil- derness park. Mayor Halter listed a number of problems the city has encountered in trying to develop the industrial park as follows: (1) dealing with private developers; (2) needing to provide assurance~ to the Council that resulted in delays; (3) trading of land proved to be a more complicated process than expected; and, (4) diverting a tremendous amount of effort to the development of the golf course and convention center, which did not result in a viable option due to the private sector. He listed his suggestions concerning where the city should proceed from this point, as follows: (1) get out of the business of industrial development and sell the land; (2) get out of the Industrial Foundation business and turn it over to the Bryan/College Station Chamber of Commerce; or, (3) maintain the Industrial Foundation. He noted that the city has not appropriated any funds to the Industrial Foundation since 1983 and presently they have only a limited amount of funds in their treasury. He further stated that if the city decides to continue the effort with the Industrial Foundation, the city will have to support the Foundation with funding until it can develop its own source of funds. He listed several suggestions concern- ing the Industrial Foundation as follows: (1) change the bylaws to create an Industrial Foundation Board of seven to nine members to be appointed by the City Council with Council representation; (2) provide funding for the Industrial Foundation; (3) negotiate a land sale of a portion or all of the city land to the Industri- al Foundation and allow the Board to devise a plan for its devel- opment, with minimal interference by the Council in Board activi- SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 PAGE 5 ties. He stated that there is a question concerning the value that should be put on the land when selling it to the Industrial Foundation and listed several options: (1) market value; or, (2) investment price. He suggested that the city then allow the Foundation to use that money to aid in the development of the in- dustrial park, which would put them in a better position to pro- vide sites at a reasonable cost. He suggested that the Council review these options for further consideration on the Regular Meeting Agenda, April 25, 1985. Councilman TonGco requested a list of the members of the College Station Industrial Foundation. Mr. Dennis GoehrinG, President of the Industrial Foundation, stated that he would provide each mem- ber of the Council with a list of the members. Councilman Bond asked how many acres of city land are available for industrial development. City Attorney Locke stated that there are approximately 700 acres available. Mayor Halter pointed out that part of the area is in the flood plain. In response to other questions from Councilman Bond, Mr. GoehrinG discussed possible long-range development prospects for the park and compared it to other industrial developments. Councilman Bond pointed out the need for specificity in contracts on the park. Councilman Brown asked how much the distance from Highway 6 to the park would affect price and marketinG aspects. Mayor Halter stated that he considered the advantages of highway frontage to be overemphasized, and pointed out that the improve- ment of Green's Prairie Road would help. Councilman TonGco asked how much fundinG the College Station In- dustrial Foundation will require and from which the fund the mon- ies would be appropriated. Mayor Halter stated that the amount of fundinG requested last year by the College Station Industrial Foundation was $65,000.00 to be appropriated from the General Fund. Assistant City Manager VanDever pointed out that an appropriation for $65,000.00 for the Industrial Foundation is in the current budget, but it has not been released. Mayor Halter asked for comments from the public. 00 861 SPECIAL CITY COUNCIL MEETING WEDNESDAY, APRIL 17, 1985 PAGE 6 Mr. Jim Gardner questioned why the public was not provided with any information about the new sewer plant expansion. He ex- pressed his concern that this will encourage an economic sprawl condition. Mayor Halter pointed out that the current sewer plant will not serve much more area than it is currently serving. Agenda Item No. 2 - EMERGENCY ITEM: Closed session to discuss pending litigation [6252-17(2)(e)] · Councilman Runnels moved to declare Item No. 2 and Item No. 3 emergency items. Councilman Bond seconded the motion which was approved unanimous- ly, 7-0. The Council moved to closed session and later reopened to the public. Agenda Item No. 3 - EMERGENCY ITEM: Action on closed session. No action was taken on closed session. Agenda Item No. 4 - Adjourn. Dian Jones~lty Secretary Mayor Halter adjourned the meeting· Gary Hal~ Mayor 00 862