May 23, 2007 Special Meeting
CITY OF ANDERSON
SPECIAL CITY COUNCIL MEETING
Present: Staff:
Mike Pearson, Mayor Nancy Hollis, City Clerk
Andy Archer Guests: Mayor Dave Talerico
Daryl Frisbie Pam Fetzer Josh Hockin
Lindsay Erber Megan Hockin Scott Thompson
Keith Fetzer Wayne Robinson Bob Murray
Samantha Rathbone Scott Allen Neil Witte Karen Southwood
Excused: Chris Hollis Tina McPherson
Jacob Noll Julie Pearson Sid Michaels Frank Hollis Michele Napoleone
Mary Berry Larry Nelson Jean Murray
Michael Sutton Jamie Sutton
Arielle Axford John Brancato
Quentin Deyette Daryl Meyer
ROLL CALL The Special Meeting of the Anderson City Council was called to order by Mayor Mike Pearson at
AGENDA APPROVAL M/S D. Frisbie/A. Archer moved to approve the agenda.
There was no further discussion. Motion passed unanimously.
Public Hearing
Disposal of City of
Suspension of Rules M/S D. Frisbie/A. Archer moved to suspend the rules and move item 8) Discussion on written proposal from Keith Fetzer for purchase of city entitlement land at the junction of
Keith Fetzer presented his written proposal and read out loud to the audience and council. Mr. Fetzer stated that there will be 11 store fronts, which will include a laundry and shower facility, day care, fabric center, gas station, convenience store, bakery,
1. How long been pursuing the property. He stated that he first approached the council in August 2006.
2. Roadblocks. Surveyor. The process has been extremely slow. When the city enters into contract make sure that deadlines and written contracts are completed.
3. Leasing Property. Short term – yes Long-term – No. He stated that he needs to own the property for collateral on the loan.
4. Begin project as soon as lease is completed. Would like to have gas, convenience,
5. How does the city handle other proposals? He stated that he does not have the answer, but probably see how the proposal meets the city’s economic plan.
6. Increased volume of traffic. He stated that there are already plans for future turn lanes. He does not see an increase for city traffic in our community.
7. Garbage. Does not feel there will be a problem. He feels that he does a good job of garbage control at his business in Healy.
8. Environmental Impact. He sated that he will need DEC, EPA, Fire Marshall and OSHA approval prior to installation and building. He will be installing fiberglass tanks.
9. He stated that he needs 20% of his building cost for equity. He stated that it will cost approximately 1.5 million for construction. He has met with his banker and contractors.
Public Hearing Jean Murray asked if this is a standard size for lots. Mr. Fetzer stated that his lot in Healy is 5 acres. He stated that for his equity he needs a ten acre parcel.
Neil Witte asked how many acres the city has by the landfill. Mayor Pearson stated that it is an L shaped parcel. Currently the city is interested in surveying
Julie Pearson asked why Mr. Fetzer applied for a council seat when he knew he was interested in this land proposal. She wanted to know to know if this could be a conflict of interest since he would have a financial gain impact. She also wanted to know how the city could give this land with no future restrictions and clear title. He stated that he does not want a restriction that would prevent future growth of his business. He stated that his proposal is his initial proposal and subject to future negotiations. She brought up the letter from AML concerning conflict of interest.
Josh Hockin stated that we should be careful when talking about conflict of interest because he feels that the city has done some underhanded things in the last two years.
Frank Hollis stated that he has several concerns on this proposal. He stated that the city needs to advertise for proposals to see if other entities are interested. He also stated that the proposal should have written commitments, such as a business plan, etc. He also feels that the land should be leased instead of sold. He feels that if the city sells all its land, future property tax will have to be implemented to support the city. He strongly stated that the city should be careful in accepting a proposal from a city council member without properly advertising the property to avoid future lawsuits. He also stated that he purchased a lot in the subdivision for $ 10,000.00 and feels that if the city sells this land for ten cents on the dollar; he is due a refund of $8,700.00 for his lot.
Tina McPherson asked what the city guidelines are concerning the conflict of interest and wanted to know why the city did not advertise prior to receiving proposals.
Michele Napoleone asked if we are going to have a meeting to answer the questions that are being proposed tonight. Mayor Pearson stated that there will be a meeting scheduled to answer the questions. She stated that it did not happen to on the free land.
Neil Witte suggested that we contact our lawyer for legal advice and guidance.
Karen Southwood asked how many meetings does the city plan on having concerning this subject or is there not a set number.
Wayne Robinson asked what if his financing does not go through and Mr. Fetzer owns the land, what are the city options then concerning future sales and type of business that will be developed on this land.
Julie Pearson asked if it would be prudent for Mr. Fetzer to step off the council during this process to relieve the perception of conflict of interest.
Scott Allen asked what the timeline is on this procedure is. He also stated that since Mr. Fetzer came before the council inquiring about this land prior to getting on the council he did not feel there was a conflict of interest. He stated that it is the city’s problem if the proper postings were not done
Samantha Rathbone stated that she is concerned that if we put this out for proposals that large companies like Aramark and Princess will come forward and she stated that she is not for that type of business industry.
Tina McPherson asked why Keith’s proposal was published in the newsletter.
Scott Allen stated that the city publish a request for proposal.
Sid Michaels stated that he feels that the land is worth more than $ 1,000.00 per acre. Mr. Fetzer stated that the city should be careful that whatever businesses are established out there.
Sid Michaels asked on why the proposal states that there would be no strings attached with an economic development proposal.
Michele Napoleone asked Mr. Fetzer if he is willing to negotiate the price and restrictions on the land purchase. Mr. Fetzer stated that he is willing to accept a counter offer.
John Brancato stated that Mr. Fetzer is one of fairest business owners that he knows.
Frank Hollis asked if the city has deed to the land to legally sell or lease.
Dave Talerico stated that the city has the authority to lease the land. He said that the city needs to look at the code to see if the city can accept proposals without going out for proposals.
Scott Allen reported that the city could sell the land before you can get title as long as it is disclosed.
Julie Pearson stated that this is a little convoluted on how this came about; maybe he could rewrite his proposal and do this above board. Julie stated that this all needs to be done in writing.
Scott Allen stated that the city could enter into a lease with the intention of sell so Mr. Fetzer could precede forward.
Quentin Deyette stated that Mr. Fetzer is a very good business man. With the current city land give away, it would be nice to see some of the land go to a local business man.
Scott Thompson stated that this deal has not been down under the table. If the residents are interested they should come to the meetings.
Scott Allen stated that the Denali Borough has two empty seats available.
Karen Southwood stated that she feels better especially if Mr. Fetzer is willing to change his proposal.
Sid Michaels reminded the council that while this proposal is being made that the city needs to be very careful that they dot all there i’s and cross there t’s since the city is essentially subsidizing this enterprise. He also stated that although legal advice is expensive, it may be the most valuable asset for the city.
Jean Murray asked if the council thought that a conflict of interest was an issue when the first proposal was brought forward. She also stated that the city has had seven gas/grocery stores in this community, is it fairly standard procedure that cash flow is a huge issue for the first five years and asked Mr. Fetzer does he really want to do this.
Quentin Deyette asked if a bank is willing to loan the monies, then the bank must have faith in Mr. Fetzer.
Michele Napoleone stated that the city just gave away 26 lots and she was a throne in the city’s side during this process. The city does not have a guarantee that homes will be built in the new subdivision. She feels that the city currently has a local person that is willing to invest in our community and provide economic development.
Mayor Pearson stated that the city will submit the documentation to the attorney and have a meeting next Wednesday to answer the questions that were raised tonight.
Daryl Meyer asked how long we are going to drag out this.
Chris Hollis stated that he wants to commend the city on their role for economic development, but cautions the city on moving too fast. He stated that the city is still waiting to see what the drawbacks and advantages were on the land giveaway. He stated that the perception of this proposal does not look good to the outside for the timeline of events. He feels that the city should advertise the land for full value and zone it commercially.
Keith Fetzer has an economic plan and several people have come forward and want the property to go to locals.
Michele Napoleone asked if the city has the funds available for legal advice now is the time to invest and save future costs.
Sid Michaels asked about a section in the ordinance concerning clear title and what it would take to satisfy in the contract to meet the terms of this ordinance. He highly advised both sides to seek legal advice on this issue.
Chris Hollis proposed that the city and Lions Club conduct a summer youth program for the youth in our community. He stated that the city has run a successful program in the past and it was very beneficial for the youth.
Shelley Merrill stated that the down side to slowing the process down is that the services are needed now.
Mayor Pearson thanked everyone for coming and participating in the discussion. Another meeting was set for next Wednesday, May 30th @
Resolution 07-12
Disposal of City
M/S D. Frisbie/L. Erber withdrew the motion.
No further discussion.
There was discussion on what needed to be in the resolution as far as a finding and the condition and terms of a lease. At this time the council was unable to proceed on this resolution until we consult legal counsel.
Approval of Preliminary
Plat for ADL 414227 and
415371 M/S A. Archer/L. Erber moved to approve the preliminary plat for ADL 414227 and 415371, with the extraction of the drawing of the
ADJOURMENT M/S L. Erber/D. Frisbie moved to adjourn the meeting @