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February 28, 2011
CITY COUNCIL MEETING
February 28, 2011
7:00 p.m.
The following councilmember’s were present with Mayor John McTaggart presiding:
Chuck Adams Mark Bishop Craig Crider
Doug Danner John Eickhoff
The following staff members were present:
Michael Webb, City Administrator
Phyllis Freeman, City Clerk
Mark Mathies, Police/Fire Chief
Jerry Cullumber, Captain, Police Department
Kevin Schuler, Deputy Chief, Fire Department
APPROVE MINUTES OF FEBRUARY 28, 2011
Councilmember Crider moved to approve the minutes. Councilmember Eickhoff seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
STATEMENT OF BILLS - $149,324.76
Councilmember Danner moved to approve the statement of bills. Councilmember Bishop seconded.
After discussion Mayor McTaggart requested a roll call vote. The motion passed unanimously.
REQUESTS OR COMMENTS FROM THE PUBLIC
No requests or comments were presented.
CONDUCT PUBLIC HEARING TO CONSIDER PROPOSED ISSUANCE
OF INDUSTRIAL REVENUE BONDS TO PREMIER BEVERAGE, INC. PROJECT
Councilmember Adams moved to close regular session and go into a public hearing. Councilmember Bishop seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
Administrator Webb introduced Brent Miles, Director of the Wyandotte Economic Development Council.
Mr. Miles stated this is another exciting project that is being brought before the Governing Body this evening. The project is under the applicant of Premier Beverage, Inc. The project takes place at 1100 Blake the former Appleton Paper building. This is a very large facility with approximately 246,000 square feet of warehouse space, one of the largest in Wyandotte County. A tour was completed earlier in the day for members of the Governing Body. Blake Street is deteriorating at a rapid pace. That is a problem for the occupant at 1100 Blake because of the type of goods and services they provide they will also be bringing in clients from all over the world. Blake Street also services other businesses in the area as well as the city park. Premier Beverage will provide 77 new jobs to Edwardsville and the facility becomes a major distribution center for Glazer’s also known as Premier Beverage. This will serve the entire state of Kansas for alcohol and other beverages as well as accommodating future growth.
Mr. Miles further stated the benefits to the city on this project is the purchase and improvements of a large vacant facility; brings employment into the industrial park; truck traffic that will stop at the truck stop on Woodend Road. The industrial revenue bond is structured with a fixed PILOT (Payment In Lieu Of Taxes) payment for a ten year period. There is a fixed PILOT payment of $174,547 a year. The agreement also calls for the improvements to Blake Street. Premier Beverage is buying this facility for $3,500,000; they have agreed to $4,000,000 PILOT payment; which is an increase of $500,000 over the purchase price with a direct benefit to the city by getting more taxes over the ten year period and combining the Industrial Revenue Bond issuance fee that will cover the expense of improving Blake Street. The fees related to the project; business license; permit fees; an origination fee based on the size of the project is estimated to be between $50,000 to $80,000 going directly to the city. Annual taxes of $174,547 brings to the city $44,746; multiplying that by ten brings $447, 460.
Mr. Miles introduced Jack Westenborg; President of the Dallas based Glazer’s Distribution.
Mr. Westenborg introduced Pat McNamara out of the corporate headquarters; Tim Dorsey, President of operation of Premier Beverage in the state of Kansas who will be in charge of running the Edwardsville facility. Matt Schilling is the operations manager for the state of Kansas. They have found that success on any project is based on their commitment, integrity, the character of their company, ethics and standards that they follow. They represent themselves, no consultants, that’s basically how they do business.
Mr. Westenborg stated he had been doing this a long time in many states. One thing that they were impressed with and lead them here was due to the extent of city involvement. This project is a big undertaking for them, under any circumstances. A building in this particular condition is something that makes them pause and think. A brief report on the history of Glazier’s was presented. Their main goal is to have a distribution center that can service the entire state of Kansas. The only competitor in Kansas is located in Lawrence. This building is a real challenge for them. Once renovations are completed they are planning a ribbon cutting ceremony hopefully in September.
Mr. Miles presented a slide show of the current facility in Missouri. Premier Beverage has estimated renovation and repair to the building at 1100 Blake at $3,000,000. The current tax on the building now is 25% of $350,000, not all of that goes to Edwardsville. The building has previously been appraised at over $7,000,000 but they are buying the building at $3,500,000. The building has been over appraised for a number of years.
Questions such as number of employees, 77 jobs will be relocating here from Lenexa, building size comparison to a new facility being built in Edwardsville, types of repairs to the building, the concrete floor is in need of repair, it is not in Glazier’s standards, product is transported in company owned trucks, variable truck sizes with a fleet size of 20 that will be registered here in Wyandotte County, where product may originate, foreign market, currently operating in 11 states, how product is contained, may be in glass bottles, the need for repair to Blake Street. Representatives from the wine and spirit industry will be coming in daily from all over the world requiring a great appearance no matter which market is being represented. Their concerns on how the product will be housed before being distributed. Cost to repair Blake Street being estimated at under $100,000, building in a 10% contingency to mill and install a 2” overlay also utilizing a 3” of asphalt assuming there will be some repair places, with an engineering estimate of $98,000. Repairs to Blake Street will not be coming out of the tax payer’s pocket. The funds to repair Blake Street will be out of the economic development fund not the general fund. When the city receives the 1% Origination Fee on IRB’S, that funding goes into the economic development fund.
Councilmember Adams asked if it was the practice of Premier Beverage to be an active community member by supporting community activities.
Mr. McNamara stated they have a lot of involvement in charitable activities as well as community activities.
Mr. Miles stated that the first time they met here at city hall they asked how they can help stimulate an industrial business group and get acquainted with neighboring businesses; having landscaping and signage, and help to facilitate the business relationship with everybody.
Mayor McTaggart opened the floor for comments or questions from the public. He declared none presented.
Councilmember Adams welcomed Premier Beverage to Edwardsville; he is aware of the quality of the company and looking forward to a great and long future.
Mayor McTaggart stated he had taken the opportunity to tour the Missouri facility and found everything to be in immaculate condition for a warehouse. He also took the opportunity to tour the Edwardsville site before the renovations begin because he knows it will be very impressive once all the work to the building has been completed.
Mayor McTaggart also welcomed Premier Beverage to Edwardsville.
Councilmember Bishop moved to close the public hearing and return to regular session. Councilmember Adams seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
CONSIDER RESOLUTION 2011-01
REGARDING THE ISSUANCE OF INDUSTRIAL REVENUE BONDS
FOR PREMIER BEVERAGE, INC. PROJECT
Administrator Webb stated the necessary steps have been taken in order to hold the public hearing by publishing the notice; also notified Unified School District #204 and Unified Government of Wyandotte County, Kansas City, Kansas.
Scott Anderson, Kutak Rock, LLP, the city bond counsel stated the resolution of intent is the same form the city has used on prior issuances of industrial revenue bonds. The next step is to adopt an ordinance that will be considered at the first council meeting scheduled for March. The resolution allows for ten year property tax abatement and fixes the PILOT payments at $174,547 a year for the ten years. There will be a 1% origination fee which is part of the Edwardsville IRB policy. The bond amount of $8,000,000 was agreed upon by both Premier Beverage and the City.
Councilmember Adams moved to adopt Resolution 2011-01. Councilmember Bishop seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
CONSIDER APPROVAL OF ANNUAL TAX EXEMPTION APPLICATIONS
CARLISLE TIRE & WHEEL
DCT 2401 MIDPOINT (OFFICE MAX)
DCT 2450-2450 MIDPOINT (LAGASSE & MWI VETERINARY)
FASTENAL
HERFF JONES
J COLEMAN ENTERPRISES
MEDART
OK EDWARDSVILLE WAREHOUSE LIMITED (OKONITE)
VANBOOVEN TREE CARE
Administrator Webb stated each year after the city has issued Industrial Revenue Bonds each applicant must file a completed application during the ten year abatement period. Once they are approved at the City Council level they are filed by the City Clerk at the County Appraiser’s office by the deadline date of March 1st. A correction on the list of IRB applicants, Earp Distribution and Schier Products will be filed by Kutak Rock, LLP for the first year then the city will file on the balance of nine years.
After further discussion Councilmember Eickhoff moved to approve the referenced renewals. Councilmember Danner seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
PRESENTATION BY CHIEF MATHIES
REGARDING ANNUAL PUBLIC SAFETY REPORT
Chief Mathies provided a power point presentation and a written report. See Attachment A. The Police Department is responsible for law enforcement, animal control, certain codes enforcement and emergency management. Loyalty, Integrity, Fairness, and Excellence are the organization’s guiding principles. The Edwardsville Fire Department provides fire protection, rescue responses, and emergency medical services to the City. The Department motto is “Save lives, Protect Property.” There are a total of 32 employees in the service departments.
CONSIDER ORDINANCE NO. 899
REGARDING OUTDOOR BURNING
Councilmember Crider moved to adopt Ordinance #899. Councilmember Eickhoff seconded.
After further discussion Mayor McTaggart requested a roll call vote. The motion passed unanimously.
ADVISORY REPORTS
ADMINISTRATOR’S REPORT
Administrator Webb reported:
The National League of Cities discount prescription plan that is available to area residents. There is no cost to the city and takes 8 weeks to get the program up and running. They will provide all the marketing material and news releases for the local paper. The city’s obligation is to help promote the program.
A resident has started working with Edwardsville Elementary School and the Methodist Church offering a program that will operate 2 to 3 months during the summer and to utilize the community center for an hour and a half to assist children during the summer when school is not in session that did utilize the free and reduced lunch program. They will be allowed to come to the community center and receive a free lunch, the library will be working to bring books to the children and provide other activities while the children are there. The program will be structured with volunteers with the city’s participation of allowing the use of the community center.
The city is working with “No More Homeless Pets KC” for a spayed and neuter day. People will be able to bring their dog or cat to the community center on April 19th where volunteers will be waiting to take the animals to their facility, spayed and neuter them and bring them back the next day April 20th. Any animal that is not registered and needs current vaccinations will be provided at a reduced rate. A furrow cat program will be started with the mobile home park as well.
Police Captain Cullumber stated a notice will be included in the next quarterly utility bill regarding the program provided by No More Homeless Pets KC.
CHIEF OF POLICE & FIRE
No report at this time.
CITY ATTORNEY
No report at this time
COUNCIL & MAYOR COMMENTS
No additional comments.
ADJOURNMENT
Councilmember Bishop moved to adjourn at 8:45 p.m. Councilmember Eickhoff seconded.
Mayor McTaggart declared the motion carried.
Phyllis Freeman
City Clerk
February 28, 2011
7:00 p.m.
The following councilmember’s were present with Mayor John McTaggart presiding:
Chuck Adams Mark Bishop Craig Crider
Doug Danner John Eickhoff
The following staff members were present:
Michael Webb, City Administrator
Phyllis Freeman, City Clerk
Mark Mathies, Police/Fire Chief
Jerry Cullumber, Captain, Police Department
Kevin Schuler, Deputy Chief, Fire Department
APPROVE MINUTES OF FEBRUARY 28, 2011
Councilmember Crider moved to approve the minutes. Councilmember Eickhoff seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
STATEMENT OF BILLS - $149,324.76
Councilmember Danner moved to approve the statement of bills. Councilmember Bishop seconded.
After discussion Mayor McTaggart requested a roll call vote. The motion passed unanimously.
REQUESTS OR COMMENTS FROM THE PUBLIC
No requests or comments were presented.
CONDUCT PUBLIC HEARING TO CONSIDER PROPOSED ISSUANCE
OF INDUSTRIAL REVENUE BONDS TO PREMIER BEVERAGE, INC. PROJECT
Councilmember Adams moved to close regular session and go into a public hearing. Councilmember Bishop seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
Administrator Webb introduced Brent Miles, Director of the Wyandotte Economic Development Council.
Mr. Miles stated this is another exciting project that is being brought before the Governing Body this evening. The project is under the applicant of Premier Beverage, Inc. The project takes place at 1100 Blake the former Appleton Paper building. This is a very large facility with approximately 246,000 square feet of warehouse space, one of the largest in Wyandotte County. A tour was completed earlier in the day for members of the Governing Body. Blake Street is deteriorating at a rapid pace. That is a problem for the occupant at 1100 Blake because of the type of goods and services they provide they will also be bringing in clients from all over the world. Blake Street also services other businesses in the area as well as the city park. Premier Beverage will provide 77 new jobs to Edwardsville and the facility becomes a major distribution center for Glazer’s also known as Premier Beverage. This will serve the entire state of Kansas for alcohol and other beverages as well as accommodating future growth.
Mr. Miles further stated the benefits to the city on this project is the purchase and improvements of a large vacant facility; brings employment into the industrial park; truck traffic that will stop at the truck stop on Woodend Road. The industrial revenue bond is structured with a fixed PILOT (Payment In Lieu Of Taxes) payment for a ten year period. There is a fixed PILOT payment of $174,547 a year. The agreement also calls for the improvements to Blake Street. Premier Beverage is buying this facility for $3,500,000; they have agreed to $4,000,000 PILOT payment; which is an increase of $500,000 over the purchase price with a direct benefit to the city by getting more taxes over the ten year period and combining the Industrial Revenue Bond issuance fee that will cover the expense of improving Blake Street. The fees related to the project; business license; permit fees; an origination fee based on the size of the project is estimated to be between $50,000 to $80,000 going directly to the city. Annual taxes of $174,547 brings to the city $44,746; multiplying that by ten brings $447, 460.
Mr. Miles introduced Jack Westenborg; President of the Dallas based Glazer’s Distribution.
Mr. Westenborg introduced Pat McNamara out of the corporate headquarters; Tim Dorsey, President of operation of Premier Beverage in the state of Kansas who will be in charge of running the Edwardsville facility. Matt Schilling is the operations manager for the state of Kansas. They have found that success on any project is based on their commitment, integrity, the character of their company, ethics and standards that they follow. They represent themselves, no consultants, that’s basically how they do business.
Mr. Westenborg stated he had been doing this a long time in many states. One thing that they were impressed with and lead them here was due to the extent of city involvement. This project is a big undertaking for them, under any circumstances. A building in this particular condition is something that makes them pause and think. A brief report on the history of Glazier’s was presented. Their main goal is to have a distribution center that can service the entire state of Kansas. The only competitor in Kansas is located in Lawrence. This building is a real challenge for them. Once renovations are completed they are planning a ribbon cutting ceremony hopefully in September.
Mr. Miles presented a slide show of the current facility in Missouri. Premier Beverage has estimated renovation and repair to the building at 1100 Blake at $3,000,000. The current tax on the building now is 25% of $350,000, not all of that goes to Edwardsville. The building has previously been appraised at over $7,000,000 but they are buying the building at $3,500,000. The building has been over appraised for a number of years.
Questions such as number of employees, 77 jobs will be relocating here from Lenexa, building size comparison to a new facility being built in Edwardsville, types of repairs to the building, the concrete floor is in need of repair, it is not in Glazier’s standards, product is transported in company owned trucks, variable truck sizes with a fleet size of 20 that will be registered here in Wyandotte County, where product may originate, foreign market, currently operating in 11 states, how product is contained, may be in glass bottles, the need for repair to Blake Street. Representatives from the wine and spirit industry will be coming in daily from all over the world requiring a great appearance no matter which market is being represented. Their concerns on how the product will be housed before being distributed. Cost to repair Blake Street being estimated at under $100,000, building in a 10% contingency to mill and install a 2” overlay also utilizing a 3” of asphalt assuming there will be some repair places, with an engineering estimate of $98,000. Repairs to Blake Street will not be coming out of the tax payer’s pocket. The funds to repair Blake Street will be out of the economic development fund not the general fund. When the city receives the 1% Origination Fee on IRB’S, that funding goes into the economic development fund.
Councilmember Adams asked if it was the practice of Premier Beverage to be an active community member by supporting community activities.
Mr. McNamara stated they have a lot of involvement in charitable activities as well as community activities.
Mr. Miles stated that the first time they met here at city hall they asked how they can help stimulate an industrial business group and get acquainted with neighboring businesses; having landscaping and signage, and help to facilitate the business relationship with everybody.
Mayor McTaggart opened the floor for comments or questions from the public. He declared none presented.
Councilmember Adams welcomed Premier Beverage to Edwardsville; he is aware of the quality of the company and looking forward to a great and long future.
Mayor McTaggart stated he had taken the opportunity to tour the Missouri facility and found everything to be in immaculate condition for a warehouse. He also took the opportunity to tour the Edwardsville site before the renovations begin because he knows it will be very impressive once all the work to the building has been completed.
Mayor McTaggart also welcomed Premier Beverage to Edwardsville.
Councilmember Bishop moved to close the public hearing and return to regular session. Councilmember Adams seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
CONSIDER RESOLUTION 2011-01
REGARDING THE ISSUANCE OF INDUSTRIAL REVENUE BONDS
FOR PREMIER BEVERAGE, INC. PROJECT
Administrator Webb stated the necessary steps have been taken in order to hold the public hearing by publishing the notice; also notified Unified School District #204 and Unified Government of Wyandotte County, Kansas City, Kansas.
Scott Anderson, Kutak Rock, LLP, the city bond counsel stated the resolution of intent is the same form the city has used on prior issuances of industrial revenue bonds. The next step is to adopt an ordinance that will be considered at the first council meeting scheduled for March. The resolution allows for ten year property tax abatement and fixes the PILOT payments at $174,547 a year for the ten years. There will be a 1% origination fee which is part of the Edwardsville IRB policy. The bond amount of $8,000,000 was agreed upon by both Premier Beverage and the City.
Councilmember Adams moved to adopt Resolution 2011-01. Councilmember Bishop seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
CONSIDER APPROVAL OF ANNUAL TAX EXEMPTION APPLICATIONS
CARLISLE TIRE & WHEEL
DCT 2401 MIDPOINT (OFFICE MAX)
DCT 2450-2450 MIDPOINT (LAGASSE & MWI VETERINARY)
FASTENAL
HERFF JONES
J COLEMAN ENTERPRISES
MEDART
OK EDWARDSVILLE WAREHOUSE LIMITED (OKONITE)
VANBOOVEN TREE CARE
Administrator Webb stated each year after the city has issued Industrial Revenue Bonds each applicant must file a completed application during the ten year abatement period. Once they are approved at the City Council level they are filed by the City Clerk at the County Appraiser’s office by the deadline date of March 1st. A correction on the list of IRB applicants, Earp Distribution and Schier Products will be filed by Kutak Rock, LLP for the first year then the city will file on the balance of nine years.
After further discussion Councilmember Eickhoff moved to approve the referenced renewals. Councilmember Danner seconded.
Mayor McTaggart requested a roll call vote. The motion passed unanimously.
PRESENTATION BY CHIEF MATHIES
REGARDING ANNUAL PUBLIC SAFETY REPORT
Chief Mathies provided a power point presentation and a written report. See Attachment A. The Police Department is responsible for law enforcement, animal control, certain codes enforcement and emergency management. Loyalty, Integrity, Fairness, and Excellence are the organization’s guiding principles. The Edwardsville Fire Department provides fire protection, rescue responses, and emergency medical services to the City. The Department motto is “Save lives, Protect Property.” There are a total of 32 employees in the service departments.
CONSIDER ORDINANCE NO. 899
REGARDING OUTDOOR BURNING
Councilmember Crider moved to adopt Ordinance #899. Councilmember Eickhoff seconded.
After further discussion Mayor McTaggart requested a roll call vote. The motion passed unanimously.
ADVISORY REPORTS
ADMINISTRATOR’S REPORT
Administrator Webb reported:
The National League of Cities discount prescription plan that is available to area residents. There is no cost to the city and takes 8 weeks to get the program up and running. They will provide all the marketing material and news releases for the local paper. The city’s obligation is to help promote the program.
A resident has started working with Edwardsville Elementary School and the Methodist Church offering a program that will operate 2 to 3 months during the summer and to utilize the community center for an hour and a half to assist children during the summer when school is not in session that did utilize the free and reduced lunch program. They will be allowed to come to the community center and receive a free lunch, the library will be working to bring books to the children and provide other activities while the children are there. The program will be structured with volunteers with the city’s participation of allowing the use of the community center.
The city is working with “No More Homeless Pets KC” for a spayed and neuter day. People will be able to bring their dog or cat to the community center on April 19th where volunteers will be waiting to take the animals to their facility, spayed and neuter them and bring them back the next day April 20th. Any animal that is not registered and needs current vaccinations will be provided at a reduced rate. A furrow cat program will be started with the mobile home park as well.
Police Captain Cullumber stated a notice will be included in the next quarterly utility bill regarding the program provided by No More Homeless Pets KC.
CHIEF OF POLICE & FIRE
No report at this time.
CITY ATTORNEY
No report at this time
COUNCIL & MAYOR COMMENTS
No additional comments.
ADJOURNMENT
Councilmember Bishop moved to adjourn at 8:45 p.m. Councilmember Eickhoff seconded.
Mayor McTaggart declared the motion carried.
Phyllis Freeman
City Clerk
City Council Meeting