Mayor & City Council

MINUTES Regular Meeting of the College Park City Council Tuesday, September 25, 2018 Council Chambers 7:30 p.m. – 11:10 p.m. PRESENT: Mayor Wojahn; Councilmembers Kabir, Kennedy, Brennan, Dennis, Day, Rigg, Kujawa (arrived 7:33 p.m.), and Mitchell. ABSENT: None. ALSO PRESENT: Scott Somers, City Manager; Bill Gardiner, Assistant City Manager; Janeen Miller, City Clerk; Suellen Ferguson, City Attorney; Bob Ryan, Director of Public Services; Jim Miller, Parking Enforcement Manager; Ryan Chelton, Economic Development Coordinator; Alex Tobin, Student Liaison; Serena Saunders, Deputy Student Liaison (arrived 9:30 p.m.) Mayor Wojahn opened the Regular Meeting at 7:30 p.m. ANNOUNCEMENTS: Councilmember Kennedy discussed National Voter Registration Day. Councilmember Dennis announced the Coffee Club at Jason’s Deli. Councilmember Rigg announced tomorrow night’s meeting on plans for the Calvert Road School, and the meeting on Thursday for the City Hall visioning session. CITY MANAGER’S REPORT: Mr. Somers discussed the meeting on Thursday with the City Hall architects; announced the October clean-up days at Public Works; said the mosquito control program ends next week; and discussed Night at the Movies and College Park Day. AMENDMENTS TO AND APPROVAL OF THE AGENDA: A motion was made to remove item 18-G-122 from the agenda (Kabir/Brennan 8-0) and to approve the agenda as amended (Mitchell/Dennis 8-0). COMMENTS FROM THE AUDIENCE: Dave Dorsch, resident: Extend the railing on US 1 all the way up the block as police have requested. Arrange a meeting between all relevant parties regarding plans to control flooding in the Calvert Hills area. Maggie Fritz, Nancy Huffman and Patrick Driscoll, residents, Scholars In Action program: This is a student-run initiative of the College Park Scholars program at the University of Maryland. They are trying to engage students and increase volunteer opportunities. Please help spread the word. www.cpscholarsinaction.com. College Park City Council Meeting Minutes September 25, 2018 Page 2 PUBLIC HEARING: A. Public Hearing on the proposal for Residential Permit Restricted Parking around The Boulevard at 9091 (formerly known as The Metropolitan development): Mr. Ryan reviewed the staff report. The proposal is for permit parking from 7:00 a.m. – 7:00 p.m. M-F, and 12 midnight – 6 a.m. weekends. Councilmember Kabir asked about the timing of the development. Mr. Ryan said the townhouses are under construction now, but he doesn’t know about the apartments. Councilmember Brennan reviewed the 2016 survey results. Councilmember Kennedy asked what parking problems are anticipated. Mr. Ryan said he could not predict the impact. The townhouses have two car parking garages. Public Comment: 1. John Stemwedel, resident: Thinks the restricted hours should be 7 p.m. – 7 a.m. weekdays and that the developer should pay the cost in perpetuity. Only residents in the neighborhood should get passes. 2. Judy Blumenthal, resident: Written comments attached. We were told the developer had enough parking. Concerned about the development’s density, impact on infrastructure, asked how the Council will protect residential housing in north College Park. The Council should do an impact study on development in the City. 3. Sandra Lora, resident: The developer should pay for this and not put a burden on the homeowner. She has caregivers who come to her house; this will be an inconvenience. Does not agree with proposed hours. The City should take care of residents, not big businesses. 4. Matthew Knight, resident: Concerned about the hours; there is no problem during the day. Restrictions should be at night when they come home from work. 5. Constantia Rioux, resident: Tell the developer to plant trees and go away. Agnostic as to the hours; this will be an inconvenience either way. How do you get exceptions for parties? Make it easy and workable in a busy life schedule. 6. Daniel Gholdston, resident: The developer contribution wasn’t enough. He has four cars. Has noted construction vehicles parking on Cherokee and Blackfoot near Catawba. Wait until the construction is done to see what the problem is – this is premature. 7. Oscar Gregory, resident: Only 52 out of 313 households responded to the 2016 survey; a non-answer is not an approval. This forces people to pay to park in front of their homes on streets they already pay for. Poorly thought out. 8. Andrew Guo, resident: Grad student who rents on Caddo. Concern about hosting a social gathering on weekends – where would people park. 9. Joel Lerner, resident: Doesn’t see an upside for the homeowner. Why does the City allow a developer to come in and build a structure with not enough parking? You build and build with reckless disregard for infrastructure. This will cause problems. 10. Lauren Adams, resident: No issue with daytime parking. Wants to be able to park in front of her house at night. Nearby rental houses make it hard to park and weekends are worse. 11. Alan Rahimi, non-resident property owner: Owns four properties on Blackfoot and Caddo. His properties have 3-4 cars per household. Parking is hard to find at night when they come home. Sounds like the City is trying to be proactive, but we don’t know yet what the problem is. Permit parking will be a burden. College Park City Council Meeting Minutes September 25, 2018 Page 3 12. Mary King, resident: Increase in rental housing and new development brings with it a parking problem. Allowing 5 permits plus 2 visitor passes benefits rental houses. 13. Alba Dalton, resident: Against permit parking. Why should we pay for permit parking so a developer can make money? 14. Mary Cook: Have we ever made an agreement with a developer to pay for permit parking? 15. Alex Bee, resident: there are a lot of rental properties in this zone and it is not unusual for them to have a lot of people over. 2 visitor passes per house would not be enough. 16. David Tortio, resident: When did we start selling our City to money-hungry people? You should not approve projects without the proper study of the impact it has on our community. [Motion to suspend the rules to allow a resident to have a second bite: Kabir/Kennedy, 7-0-1.] 17. Sandra Lora, resident: submitted signatures on a petition against permit parking. B. Public Hearing on 18-O-01, An Ordinance Of The Mayor And Council Of The City Of College Park, Amending Chapter 175 “Taxation”, Article IV, “Revitalization Tax Credit”, Sections §175-7, “Revitalization Tax Districts Established; §175-10 “Eligibility Criteria”; §175-11 “Tax Credit – Amount And Term”; §175-12 “Application Process”; And §175-13 “Waiver”, To Establish An Additional Revitalization Tax Credit, Set The Criteria For The Tax Credit, Prohibit A Waiver Of Eligibility Requirements For The Tax Credit, Correct An Error, And Make Conforming Changes. Mr. Somers reviewed the staff report. The City’s current tax credit starts at 75% in the first year, and declines down to 15% in the 5th year. This second-tier tax credit proposal is for up to 15 years and up to a 60% tax credit for eligible projects in certain circumstances. This is enabling legislation only. Public Comment: 1. Judy Blumenthal, resident: Written comments attached. Where is the good from the proposed development? The City should promote socially responsible development. 2. Sandra Lora, resident: They keep building and building and we don’t have enough room anymore. Do we need more housing – what are the occupancy rates? 3. Mary King, resident: The current tax credit is appropriate and adequate; she is opposed to the new proposal. The projected tax loss should be stated publicly. 4. Dave Dorsch, resident: Opposed. If this is needed to save the Bozzuto deal you haven’t found the best developer. 5. Bob Catlin, resident: Supports. The City needs more 12-month residents to support downtown businesses. This is near the metro and will provide a synergy with the project in Riverdale Park. 6. Stephanie Stullich, resident: Supports. These decisions are made by the County; the best the City can do is give input to shape the development to be better. If we do nothing we will get more student housing. This strategy brings more diverse development. 7. Stuart Adams, resident: Supports; will bring more diverse development, but we should have stricter criterial to achieve the credit. 8. Oscar Gregory, resident: Opposed. Bozzuto should be able to sustain themselves without tax help. College Park City Council Meeting Minutes September 25, 2018 Page 4 9. Carlo Colella, non-resident, UMD Vice President of Administration and Finance: The University supports. A project of this nature can not happen in the current market. We need year-round residents to make the downtown work. 10. Alan Rahimi, non-resident property owner in the City: We should provide tax credits to people for revitalizing existing homes, roads and sidewalks to incentivize them. 11. Jeanne Jennings: Would like to see the development happen; what have other developers received? Is this typical? CONSENT AGENDA: A motion was made by Councilmember Dennis and seconded by Councilmember Mitchell to adopt the Consent Agenda, which consisted of: 18-G-123 Approval of Minutes from the September 4, 2018 Worksession and the September 11, 2018 Regular Meeting The motion passed 8-0. ACTION ITEMS: 18-G-124 Council Action on the proposal for Residential Permit Restricted Parking around The Boulevard at 9091 (formerly known as The Metropolitan development) A motion was made by Councilmember Brennan and seconded by Councilmember Dennis to authorize the establishment of a new residential permit parking zone in the area around the Boulevard at 9091 development as follows: Parking will be restricted to permit holders only 7 days a week from 7:00 p.m. to 7:00 a.m. (There will be no 2-hour allowance.) Each property address will be entitled to purchase up to 5 tag-specific parking permits for vehicles registered at that address for $10/year/permit; and to purchase up to 2 visitor permits at $1/year/permit. Permits will be issued to residents at no cost for the first year. Any remaining funds after the first year can be used toward expenses in the second year. Councilmember Brennan said from the testimony it appears there are current parking problems due to rental houses, and although it wasn’t discussed tonight, he has also heard there are parking problems due to overflow street parking from Attick Towers around Blackfoot. There are also projected issues that will come from The Boulevard. He appreciates the comments to “wait and see” but he doesn’t want to take a piecemeal approach because it can impact people’s quality of life. The idea here is to be proactive and thoughtful about addressing both an existing quality of life issue and an issue that is anticipated. This is not permanent. The voices of our residents help shape the decisions we make and we can always take future action if needed. Mr. Ryan asked for clarification: 1) Does this include the dead-end stub of 48th Place south of Delaware: NO. 2) How to treat residents of the Ferris Manor Apartments: INCLUDE Ms. Miller noted that residents of 48th Place did receive the mailing of this Public Hearing but that residents of the Ferris Manor Apartments were not sent the mailing. College Park City Council Meeting Minutes September 25, 2018 Page 5 Councilmember Kennedy asked if it is typical of other zones to have a 12-hour restricted period without a two-hour grace period. Mr. Ryan said yes, it is typical. Councilmember Mitchell said it sounds like we are not ready to move forward on this tonight. Councilmember Kujawa asked when this would be implemented. Mr. Ryan said it takes time to allow for notification to be made, signs to be installed, permits obtained, and then a grace period prior to enforcement. Councilmember Rigg appreciates this proactive, holistic approach to a difficult issue. He has permit parking on his street and its not a bad thing. A motion was made by Councilmember Kabir and seconded by Councilmember Mitchell to amend the proposal to extend the free permit period for residents to two years. Mr. Somers expressed concern about the precedent because other neighborhoods don’t have this benefit. The broader discussion is whether the City should collect fees for any permit parking zone. Councilmember Kabir said this is a special case because we supported a development that the residents didn’t ask for. Audience comments on the amendment: Sandra Lora, resident: We shouldn’t have to pay for any of it – this is hard on people on a fixed income. The developer should allow enough parking or pay for the program. Carol Hom, resident: She does not have the funds to pay for permit parking for the rest of her life. If you only have 1 or 2 cars, can you stretch the allocated funds into later years? Councilmember Kennedy will not support the amendment without knowing the full implication. Councilmember Brennan appreciates the sentiment but other residents who also did not support nearby developments are paying for permit parking without any subsidy. Councilmember Dennis thinks we should take this discussion to a Worksession to consider the budget implications for the second year. Vote on the amendment: 1-7-0 (Kabir supported). Return to discussion of the main motion – An amendment to the main motion was made by Councilmember Kabir and seconded by Councilmember Kujawa to delay the effective date of the new permit parking program for this zone to 30 days after the first Use and Occupancy permit is issued. The motion to amend passed 8-0-0. College Park City Council Meeting Minutes September 25, 2018 Page 6 The main motion as amended passed 8-0-0. 18-O-01 Adoption of Ordinance 18-O-01, An Ordinance Of The Mayor And Council Of The City Of College Park, Amending Chapter 175 “Taxation”, Article IV, “Revitalization Tax Credit”, Sections §175-7, “Revitalization Tax Districts Established; §175-10 “Eligibility Criteria”; §175-11 “Tax Credit – Amount And Term”; §175-12 “Application Process”; And §175-13 “Waiver”, To Establish An Additional Revitalization Tax Credit, Set The Criteria For The Tax Credit, Prohibit A Waiver Of Eligibility Requirements For The Tax Credit, Correct An Error, And Make Conforming Changes A motion was made by Councilmember Day and seconded by Councilmember Rigg to adopt Ordinance 18-O-01 to amend the City’s Revitalization Tax Credit Program to allow qualifying development projects to receive a tax credit of up to 60% for up to a 15-year term for projects that satisfy all existing criteria and eligibility requirements and also have a County PILOT Agreement. Mayor Wojahn said due to the public hearing earlier tonight, there would be no audience comment at this time. Councilmember Kennedy asked about the timing of the ordinance - is there an end to when someone could apply for this? Ms. Ferguson said it will become part of the law and available unless it is repealed by Council. Mr. Somers said that the Council does not have to decide to grant a tax credit, however. Amendment #1: A motion was made by Councilmember Rigg and seconded by Councilmember Brennan to amend the ordinance as follows: to add a new eligibility criterion to Section 175-10, number 11, to read “The project provides a contribution of an amount described below to a city fund established for the purpose of promoting and funding the inclusion of art in public places. (a) For 2018, the amount contributed to the fund shall be $400,000. (b) Beginning in 2019, the amount contributed to the fund shall be the amount described in (a), updated by the ENR Building Construction Index 20 city average. The date used for calculating such an update shall be the date upon which the tax credit is approved by the Council.” Councilmember Rigg said the eligibility criteria is a menu of options that a developer has to meet to become eligible for a tax credit. This proposal would add another option that a developer could choose to qualify by contributing to a public art fund. In Denver, 1% of every capital improvement project goes to a public art fund. He recognizes that we would have to figure all this out since we don’t have such a fund yet, but since we are in this chapter of the code, it is an opportune time to add it. Ms. Ferguson asked about the ENR index and said we usually use the CPI. Councilmember Rigg said ENR is used more in construction economics. College Park City Council Meeting Minutes September 25, 2018 Page 7 Comments from the audience on the amendment: Sandra Lora, resident: We need something nearby for special-needs adults and children in the City. Councilmember Kennedy asked if there is a different index Ms. Ferguson would be more comfortable with? Ms. Ferguson said this is more of a niche index that she has not used before, so can’t evaluate it. Vote on Amendment #1: Yes: Kabir, Kennedy, Brennan, Day, Rigg No: Dennis, Kujawa Abstain: Mitchell Amendment #1 passes 5-2-1. [At 10:30pm a motion was made to extend the meeting for 30 minutes (Kabir/Rigg) 8-0-0.] Amendment #2: A motion was made by Councilmember Kabir and seconded by Councilmember Mitchell to amend the Ordinance as follows: to change the upper limit of the potential tax credit from 60% to 50%. Comments from the audience on the amendment: Jeff Kayce, non-resident, Bozzuto Development: The 60% tax credit that has been negotiated is the bare minimum necessitated by the “but for” test to move the project forward. Reducing the tax credit would also directly affect and possibly jeopardize the County assistance. Stuart Adams, resident: The ordinance now reads “up to 60%” so a 50% tax credit is doable under the current proposal. Vote on Amendment #2: Yes: Kabir, Mitchell No: Kennedy, Brennan, Dennis, Day, Rigg, Kujawa Amendment #2 fails 2-6-0. Vote on the main motion as amended by amendment #1: 8-0-0. 18-R-12 Discussion, and possible adoption, of a Resolution and Term Sheet granting a Revitalization Tax Credit for the Bozzuto project – Scott Somers, City Manager Mr. Somers reviewed the staff report. Approval of a tax credit is conditioned upon Bozzuto signing the three associated agreements and subject to the County tax credit. He reviewed the updated spread sheet. If we want to promote our downtown and attract full-time residents we need to incentivize this type of development. If the bottom line is just to bring tax revenue into the City, then move forward with a student housing project. If the goal is to bring a higher College Park City Council Meeting Minutes September 25, 2018 Page 8 quality market rate product with more amenities into the downtown market, this is a project that will do it. Jeff Kayce and Manny Egoegonwa from Bozzuto reviewed the project. This is an assemblage of multiple properties and extends Calvert Road west of US 1. This is a $150M investment that requires $50M cash, with a return on investment of 6%. It is a challenge in this market to secure equity investors. It includes 70K square feet of retail. Council asked about the change in signatories that was noted on the agreements. Mr. Kayce said they just incorporated that entity for this project, but it is exactly the same people. Mayor Wojahn asked about the status of the signatures on the three agreements. Ms. Ferguson updated Council on the status of the signature pages. Council wants to ensure that the three agreements are signed before approving the Resolution. Ken Ullman for TDC: They are working through their internal execution process and fully support the project. Michael Majestik representing Willard Retail and College Park Shopping Center: He has the College Park Shopping Center signature pages with him, but there has been an additional LLC created to distinguish between the Applebee’s parcel and the Kinko’s parcels which will require some additional drafting. That signature page will follow in the next day. It is the same cast of characters. Ms. Ferguson reviewed the language in the revised 18-R-12 which says the 3 agreements would be signed “on or before adoption of this resolution”, which is not going to happen, so we need amended language. The new language should read “contingent upon endorsement by all parties within 14 days of adoption of this resolution.” Councilmember Rigg asked for confirmation that they would not be requesting any more amendments to the agreement within the next 14 days. Mr. Kayce said no. [Motion to suspend rules and continue meeting Brennan/Dennis 8-0-0.] A motion was made by Councilmember Rigg and seconded by Councilmember Day to adopt Resolution 18-R-12 to provide The Bozzuto Group and other applicable entities a waiver and a Revitalization Tax Credit (RTC) of 60% for a 15-year term and approve the associated Term Sheet contingent upon endorsement by all relevant entities within a 14 day period. The motion passed 7-0-1 (Kabir abstained). MAYOR AND COUNCIL COMMENTS: A motion was made by Councilmember Mitchell and seconded by Councilmember Kabir to discuss the proposed repurposing of the UMD Golf Course, hopefully at the next Worksession, pending the availability of the presenters. The vote was 4-4 with the Mayor voting no. He suggests delaying until we can get a presentation by the University on the proposal. College Park City Council Meeting Minutes September 25, 2018 Page 9 Councilmember Dennis discussed the Lakeland Community Heritage Parade and the College Park Volunteer Fire Department grant award event. Mr. Tobin discussed National Voter Registration Day. Mr. Somers suggested moving the scheduled Worksession to next week because of the late hour. ADJOURN: A motion was made by Councilmember Rigg and seconded by Councilmember Kujawa to adjourn the Regular Meeting and enter into a Closed Session pursuant to § 3-305 of the General Provisions Article, Annotated Code of Maryland, to discuss the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation, or performance evaluation of appointees, employees, or officials over whom this public body has jurisdiction; any other personnel matter that affects one or more specific individuals. The City Council will discuss the City Manager’s Performance Evaluation. With a vote of 7-1-0 (Brennan opposed), Mayor Wojahn adjourned the Regular Meeting at 11:11 p.m. ___________________________________________ Janeen S. Miller, CMC Date City Clerk Approved On September 25, 2018, at 11:11 p.m., pursuant to § 3-305 of the General Provisions Article, Annotated Code of Maryland, a motion was made by Councilmember Rigg and seconded by Councilmember Kujawa to enter into a Closed Session to discuss the appointment, employment, assignment, promotion, discipline, demotion, compensation, removal, resignation, or performance evaluation of appointees, employees, or officials over whom this public body has jurisdiction; any other personnel matter that affects one or more specific individuals. Specifically, the City Council will discuss the City Manager’s Performance Evaluation. The motion passed 7 – 1– 0, and after a brief recess, the Council entered into Closed Session. Present: Mayor Wojahn (Open Meetings Trainee); Councilmembers Kabir, Kennedy, Brennan, Dennis, Day, Rigg, Kujawa and Mitchell. Absent: None. Also Present: Scott Somers, City Manager. Topic Discussed: The Mayor and City Council discussed the City Manager’s Performance Evaluation. Action Taken: None. College Park City Council Meeting Minutes September 25, 2018 Page 10 Adjourn: A motion was made by Councilmember Rigg and seconded by Councilmember Day to adjourn the closed session, and with a vote of 8 – 0 – 0, Mayor Wojahn adjourned the closed session at 12:30 a.m. On September 17, 2018, at 11:00 p.m., pursuant to § 3-305 of the General Provisions Article, Annotated Code of Maryland, a motion was made by Councilmember Brennan and seconded by Councilmember Day to enter into a Closed Session to consider the acquisition of real property for a public purpose and matters directly related thereto. Specifically, the Council will discuss the possible purchase of a property, the appraisals and possible purchase price. The motion passed 7-0-0, and after a brief recess, the Council entered into Closed Session. Present: Mayor Wojahn (Open Meetings Trainee); Councilmembers Kabir, Brennan, Dennis, Day, Rigg, Kujawa and Mitchell. Absent: Councilmember Kennedy Also Present: Scott Somers, City Manager; Janeen S. Miller, City Clerk; Terry Schum, Director of Planning; Bill Gardiner, Assistant City Manager. Topic Discussed: The Mayor and City Council discussed the possible purchase of a parcel in the City, the appraisals the City has received, and a possible purchase offer. Action Taken: None. Adjourn: A motion was made by Councilmember Rigg and seconded by Councilmember Day to adjourn the closed session, and with a vote of 7 – 0 – 0, Mayor Wojahn adjourned the closed session at 11:06 p.m.