City Council

MINUTES OF THE CITY OF BRISTOL, TENNESSEE CALLED CITY COUNCIL MEETING December 1612014 CALL TO ORDER: The City of Bristol, Tennessee City Council called meeting was called to order by Mayor Lea Powers on Tuesday, December 16,2014, at 12:10 p.m. in the Ewell Easley Annex Building. ROLL CALL: Present: Mayor Lea Powers, Vice Mayor Chad Keen, Councilwoman Michelle Dolan, Councilwoman Margaret Feierabend, and Councilman Jack Young. Others Present: City Manager William Sorah; City Attorney Jack Hyder; City Recorder Tara Musick; and members of City Staff. RESOLUTIONS: Resolution No. 14-124 - A Resolution Approving the Southside Shopping Center Redevelopment District Tax Increment Financing Amendment and Recommending that the Same be Approved by the Board of Commissioners of Sullivan County City Manager Sorah reviewed this resolution to approve the Southside Shopping Center Redevelopment District Tax Increment Financing Amendment and recommendation to Sullivan County, Tennessee to do the same. Earlier this year a special use permit was granted to allow the construction of a multi-family apartment complex on the site of the former Southside Shopping Center. This 26 acres property was designated by the Bristol Housing Authority as a Redevelopment District in 2005. This designation affords the developer the opportunity to use Tax Increment Financing as an economic stimulus for the project. The property was purchased by the current owner in 2005 and the existing buildings subsequently razed to eliminate vacant and deteriorating structures. The site has remained undeveloped for the past decade which has continued the blighted appearance of the property. The developer for the site, East Tennessee Investment, LLC, has proposed improvements at the site totaling $7,569,908. The project includes the construction of one hundred and twenty-four apartments comprised of one, two, and three bedroom units. ln addition to the apartment units, the project will also include the installation of infrastructure such as vehicle garages, parking lot, utility construction, and other amenities. Financially related information was discussed. The tax increment amount can be up to but not to exceed $1,100,000 and shall not be longer than 15 years. The City will be able to retain the portion of the tax revenue attributable to debt service which is currently 34 cents of the tax rate.  Special City Council Meeting December 16,2014 Page 2 of 3 Of the tax increment related revenue, 5 percent will also be retained by the City for administration costs of Bristol Housing Authority and the City. City Manager Sorah recommended approval of the item as presented to Council. Councilman Young inquired if approval of this financing was required for the project to move forward. City Attorney Hyder responded that it was. Steve Johnson discussed the history and the potential redevelopment opportunities that he has explored for this property. He stated that a study had been performed for this property and the best use was found to be for residential purposes. Rental income will not be adequate to cover all construction costs. Tax increment financing is essential for the business proforma to work. Councilwoman Dolan said that the project wants to work and the City needs it to work. She stated that communication with the County should have been better. Mayor Powers stated that she thinks the County will also approve and that staff has performed due diligence for a need that has existed. The redevelopment will be taxed at a commercial rate and provide desperately needed housing and new jobs. Councilman Young expressed his appreciation to the Planning Commission for their work on this project. He also expressed his gratitude to Steve Johnson for the study and his efforts in regards to this property. Councilwoman Dolan moved to approve this resolution, and Vice Mayor Keen seconded. The motion passed by a unanimous roll call vote. CITY COUNCIL 2015 MEETING SCHEDULE: City Manager Sorah presented the 2015 City Council Meeting Schedule to Council for discussion purposes and approval. The start time of work sessions was discussed. Vice Mayor Keen stated that lunch would be a better time for all parties and allow meetings to occur during normal business hours of staff. Councilwoman Dolan made a motion to approve the schedule as presented with the exception that the work sessions be changed to begin at noon on the third Tuesday of every month. Councilman Young seconded the motion. The motion passed by a unanimous roll call vote. CITY COUNCIL COMMENTS: None There being no further business, the meeting was adjourned at 12:38 p.m.  Special City Council Meeting December 16,2014 Page 3 of3 Mayor E. Musick, City Recorder