Special City Commission Meeting

City of Deltona 2345 Providence Blvd. Deltona, FL 32725 Minutes Special City Commission Meeting Thursday, December 19, 2019 9:00 AM Deltona Commission Chambers 1. CALL TO ORDER: Mayor Herzberg called the meeting to order at 9:00 a.m. and then called for a recess at 9:00 a.m. and reconvened at 9:04 a.m. 2. ROLL CALL – CITY CLERK: Present: 7 - Commissioner Avila-Vazquez Commissioner King Commissioner McFall Commissioner Nabicht Vice Mayor Ramos Mayor Herzberg City Attorney 3. PLEDGE TO THE FLAG: Mayor Herzberg led everyone in the pledge to the flag. 4. BUSINESS: A. Final ratification of Resolution No. 2019-68 for the economic development incentive package for Project Normandy located at 2600 N. Normandy Blvd. - Keith Norden, President, Team Volusia and Jerry Mayes, Economic Development Manager (386) 878-8619. Mayor Herzberg gave a brief explanation of the item. Motion by Commissioner Bradford, seconded by Vice Mayor Ramos, to approve Resolution No. 2019-68, the economic development incentives package for Project Normandy. In addition, approval authorizes the necessary budget transfers to facilitate Commission approval and further authorizes the City Manager to sign or execute any documents necessary to implement Commission approval of this item. Commissioner Nabicht stated the purpose of doing this is a two step process. It was supposed to be that the client was going to be revealed this morning or yesterday and that has not taken place yet. He does not understand what has changed between now and City of Deltona Page 1 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 Monday night. The Commission does not have the name of the client yet to make this award to. The client has been delayed for their own reasons and yet we still feel compelled to rush this through before we have an opportunity to share with the public who the client is. He is not comfortable with awarding the package to an unknown client. He believes in the package, he believes in the project as it has thus far been presented to him, but he is uncomfortable with there not being transparency on who the client is when the Commission is talking about giving this amount of money rebating it back to them. He thinks this should be tabled until such time as the client has finished its business with the property owner, that they have closed on everything and they can reveal to the general public who is coming to Deltona to receive this. Commissioner Avila-Vazquez asked why the public will not find out today who the client is and Ms. Heather Shubirg, Team Volusia Executive Vice President, replied unfortunately due to unforeseen delays the client is not yet ready to disclose who they are. The client has requested under F.S. 288.075 confidentiality and that gives them the right to obtain their confidentiality for this particular project. Commissioner Avila-Vazquez asked what the delay was and Ms. Shubirg replied a delay in the property management parcel, a delay in closing on the property. Commissioner Avila-Vazquez stated she thought the closing was already done and Ms. Shubirg replied it has not occurred. Vice Mayor Ramos stated he respectfully disagrees with his fellow Commissioners on this in the sense that the Commission is loosing track of the big picture. At this point it can have whatever name it wants to have, at least in his opinion. This should of have been done Monday night and moved forward. The more the Commission continues to go back and forth the worse the Commission looks. He believes the thought of tabling this should not be considered, the Commission should be moving forward and allowing the client whenever they are ready to announce who they are. Commissioner Avila-Vazquez stated she does not believe the Commissioners are questioning the client, but what the change is and why it took place when the Commission promised the residents that they were going to disclose who the client was. She does not see anything wrong with those Commissioners who are a little uncomfortable with what is going on to try and get clarification. She was under the impression that everything was a go, that everything was set, that today was going to be the final decision and all the questions would be answered, but that is not what the Commission is being told. The Commission still does not know who the client is and that is why there is an audience at this meeting. There is nothing wrong and she is assuming tabling this would not delay the project. She asked if tabling the item would delay the project and what kind of consequences would it bring? Commissioner Bradford stated she understands everyone's anticipation. This is an exciting time for Deltona and there is a lot of frustration, but understanding the whole process of closing and purchasing a large parcel is difficult to rush through when it come to closing documentation. If the client was waiting on the Commission Monday night to see what they were going to approve and then try quickly to rush documents through she can kind of understanding where they are saying they did not get them all done and signed in time. She City of Deltona Page 2 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 asked how long the client is looking at a delay? The biggest thing the Commission wants to reveal is the wonderful job opportunities for the City. It is killing her too not knowing who the client is and she would love for everyone to know, be celebrating and planning. When there is pending documents and signatures needed, this could technically happen. She does not think there is any reason the client is doing this just to drag it out. The client is in as much anticipation as the Commission is to make the announcement. She does not see any reason to have any further delays. The client has stated this is what it is going to do and this is what it is offering. Again, the Commission needs to look at the big picture and if the Commission continues to put this off it will be January next year. Commissioner Nabicht asked if anyone received a phone call yesterday from City Attorney Fowler regarding this project and Commissioner King replied yes. Commissioner Nabicht asked if Commissioner King cared to elaborate on that conversation. Commissioner King stated basically that the company was not prepared yet because of issues with closing on the property and the client was looking to get this done anyway. Commissioner Nabicht asked to Commissioner King's knowledge for as long as the City has been working on this project had he ever known City Attorney Fowler to be involved with this project or has it been City Attorney Segal-George. Commissioner King replied City Attorney Segal-George as far as he knows. Commissioner Nabicht asked where City Attorney Fowler was this morning, not here. Commissioner Nabicht asked Team Volusia's President & CEO Keith Norden who requested City Attorney Fowler to become involved in this and Mr. Norden replied he is not sure. Commissioner Nabicht asked again, if Mr. Norden knew how City Attorney Fowler became involved in this yesterday and Mr. Norden replied he did not know how City Attorney Fowler became involved yesterday. Commissioner Nabicht asked if any member of Mr. Norden's staff know how City Attorney Fowler became involved yesterday and Ms. Norden replied Ms. Shubirg is the key project manager for Team Volusia and Executive Vice President so he asked her. Ms. Shubirg stated that City Attorney Fowler has been involved in this project for a couple of months now at the request of Team Volusia. Commissioner Nabicht asked how much the City pays Team Volusia and for what role. Mr. Norden replied Team Volusia is the City's business recruitment arm and marketing arm. Commissioner Nabicht confirmed that Team Volusia represents Deltona and Mr. Norden replied yes, they represent Deltona and 12 other cities, Volusia County, 80 private sector companies and seven colleges and universities. Commissioner Nabicht stated again, he has a deep concern for the perspective here of an urgency on the City's part to deliver something that is a good faith offer that the City stands behind and will continue to stand behind until such time as the property closes. He sees no reason for the City to rush to finalize this when the client and the property owner have not completed their agreement. He disagrees with Vice Mayor Ramos, if a different client comes in they may offer a different set of circumstances and the City would be back to renegotiating this. The Commission heard from the public Monday night and they support the project, but they want to know who the client is when the City is rebating nearly $2.5 million over the next five years. He is not against the project, he is not against the incentives, but it is about process. This is a discussion about process and he feels personally that he has not received all the information in this process. He does not understand how City Attorney Fowler suddenly got involved in this and made phone calls to the Commission yesterday and said that this City of Deltona Page 3 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 needed to proceed even though the City did not know who the client was and then rudely hung up on him and said he was calling the other Commissioners when he tried to discuss it with him. Commissioner Nabicht stated there is a problem with the process and he asked if we wanted another swaption type of deal to come back and bite us (profanity). The Commission needs to get some answers and they need to think about what they are doing. There is no reason to push this through today. He does not want to be on the dais and have any regrets about it. The offer is solid and the client has no reason to walk. The Commission just wants to be able to tell the public who they are when they are ready. If the client is not ready until January 1st so be it. The offer is still good January 1st. Commissioner Bradford asked Ms. Shubirg if the client has an estimated time frame for the closing and when they plan on revealing themselves. Ms. Shubirg replied in terms of closing it could happen anywhere between now and right after the first of the year and the client will announce who they are right after. Commissioner King asked if the client has not finalized the contract with the property and they do not really own the property, how are they able to clear all the land when they do not own it. Ms. Shubirg replied she believes the client has a Letter of Intent on the property and so they are doing that at their cost subject to the approval of everything. Commissioner Bradford stated Commissioner Nabicht brought up some valid points and she was not aware of some of the conversation. She was under the understanding that the closing was going to be sooner and not be possibly a two more week process. This pains me, it pains be a lot. Commissioner Bradford withdrew her motion. Mayor Herzberg asked the City Attorney what the process was for Commissioner Bradford to withdraw her motion and does Vice Mayor Ramos need to withdraw his second. City Attorney Segal-George replied the Commissioner is entitled to withdraw her motion, the second does not stand and an alternate motion could be made. Commissioner Bradford stated if the client is ready for them to contact the City and the Commission will reconvene just as quickly as possible, but she was under the impression it could be tomorrow or Monday. Since she is now being told it could be January, a business is a business, but there is an incentive package. Ms. Shubirg stated for clarification, it could happen tomorrow or Monday, but given the holiday time frame that is what the delay could be for. Unfortunately getting a bunch of people together during the holidays for a closing may not occur, but it is not that is will not happen between now and Christmas either. Motion by Commissioner Nabicht, seconded by Commissioner King, that the Commission table this item until such time as the client and/or the property owner has gone to closing and has removed their right to their cone of silence. Mayor Herzberg asked Commissioner Nabicht to clarify "removing the cone of silence" in City of Deltona Page 4 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 his motion and Commissioner Nabicht replied their right of nondisclosure under the Florida Statutes. Mayor Herzberg stated as she sees it the motion is that the Commission will reconvene when the client is ready to close and ready to make the announcement, correct. Commissioner Nabicht stated correct, when the client is no longer exercising their right under F.S. 288.075. Mayor Herzberg asked the City Attorney if that was a proper motion and correct, just because this needs to be absolutely clarified. City Attorney Segal-George replied it is a proper motion, but Commissioner Nabicht may want to add that "upon notification from Team Volusia" because they are the ones who would know that everything has closed and the client stands ready to waive their confidentiality at this point, that they will notify the City and the City will then schedule a meeting as quickly as possible. Commissioner Nabicht stated just to clarify, his intent is that the Commission reconvene as soon as possible to finalize and award the incentive package once the Commission is able to reveal who the client is, that is the intent and whatever wording that is needed. He asked the Commission if everyone understood what his intent is. Mayor Herzberg replied she understood his intent, but she wants to make sure that the wording is correct, that this is to be tabled until such a time that the client is ready for their closing and ready to reveal their name and that it can be done in a public hearing. Commissioner Nabicht stated anytime the client wants to reveal their name the Commission can move forward with the package. If the client does not close and they want to reveal their name tomorrow so that the Commission can finalize this, he is good with that. He just wants to be able to tell the public who the client is and for the record, he takes no pleasure in doing this and he takes no pleasure in having to go through this process, but there is a problem with this process. This is the first one of these with this magnitude that the City has done and he believes the Commission needs to have further discussion in the future about the ordinance regarding this to keep this kind of problem from happening in the future, with the process. There is no problem with the client and there is not problem with the incentive package. He wants to make sure the news media has it very clear that the incentive package is a good package and this project is a good package for the City, but there is a problem with this process. City Attorney Segal-George stated she would rather Commissioner Nabicht use the term "continue", tabling under Roberts Rules of Order has a different process, it has to be taken off the table. So if Commissioner Nabicht just said that the Commission will continue until until those circumstances. Amended motion by Commissioner Nabicht, seconded by Commissioner King, that the motion reflect the word "continue" instead of "table." Vice Mayor Ramos asked Commissioner Nabicht, if he understands him correctly he is not City of Deltona Page 5 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 concerned about whether or not there is a closing, but the concern is about not being able to share the name of the client with the public. Commissioner Nabicht stated there is legal ramifications to closing and not closing and Ms. Shubirg explained why the client is able to clear the land without doing that. There could be background agreements between the client and the property owner which he is not concerned with as those are legal matters for them to deal with and permitting to deal with. His issue is the transparency to the public as the Commission heard on Monday night from some people that it is a good project, but it is a transparency issue. The residents want to know who it is and he feels the Commission has a responsibility to be able to before awarding this level of incentives to say who it is being given to. The Commission was told originally that this is why it was being done in a two step process. The City was putting the offer on the table so the client would know what it is, the client was going to verbally accept that offer, the Commission was going to come back, the client was going to close, then the client was going to do a press release as to who they are and the Commission would ratify the Resolution this morning. Nothing has changed, the client has a delay on their end and he totally respects that. He does not see what the rush is to hurry up and award it. He questioned what changed between then and Monday night when everyone was in agreement to do a two step process which was placed on the agenda. The offer is good, the offer is solid and he stands behind the offer 110%, but he wants to know who the City is giving it to and he thinks the public deserves to know that too. Mr. Norden stated he worked closely on the Trader Joe's Distribution project which is operated by World Class Distribution, but the entire process, the land was cleared and the site was shovel ready with utilities without a CO (Certificate of Occupancy) occuring. This was done before Trader Joe's or World Class Distribution bought the property, this happens through various agreements and the closing did not occur until the site was ready which happens often. Commissioner Nabicht asked if on Trader Joe's the incentive package that was offered by that government for them was that with the property owner or Trader Joe's and is that property leased. Mr. Norden replied part of it was with the property owner and part of it was with the company. Commissioner Nabicht stated this package is with the lessor and Mr. Norden replied he just wanted the Commission to feel comfortable that this is the process that occurs with land clearing and getting sites ready. They do not typically wait till the land is sold. Commissioner Nabicht stated he is familiar with that from his previous life, that is a business practice. If the City was offering the incentive package to the property owner the Commission would already know who that is and this would have been done Monday night, but because it is being offered to the client who is going to be leasing the property he thinks the Commission needs to proceed in this manner. He is not against the project, he is not against the incentives and it is a solid offer to the future tenant. Commissioner Bradford stated it pains her to have to withdraw the motion, but Commissioner Nabicht made very valid points. One of those points is on a personal side she understands the business side of it, buy technically it is none of the Commission's City of Deltona Page 6 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 business what is going on with their closing, how they are closing and who they are closing with. What is the Commission's business and what she has to look at is the incentive package that is being presented to the Commission and the Commission needing to base their decision on the incentive package on all of the details. The Commission was told this emergency meeting was being held for the client to reveal themselves and for the Commission to finalize this. The Commission is being told, for whatever reason and it really does not matter, it was not completed so therefore the Commission cannot complete their portion. Mayor Herzberg opened the public comments. Dana McCool, 1585 Oldsmar Terrace, Deltona, spoke about as a resident she stands behind the Commission and their decision, wanting the business in the City, being held hostage, the aspect of the closing not being the public's business, the City did what it said it would, not understanding why the client will not state their name because the residents are welcoming them into the City, the Commission and Team Volusia doing right by the residents, the City is not asking the client to do anything in return for finding out their name, the residents would like to know and have the right to know who the client is, the City being held hostage, residents being excited about the project, and the residents understand the business aspect. Mark Metzger, 2608 Valmora Court, Deltona, thanked the Commission and it is a Merry Christmas to see the Commission being good stewards of the residents' tax dollars which is all most of the residents have ever asked for. Mayor Herzberg closed the public comments. Mayor Herzberg asked for the motion to be reiterated with the word "continuation" and City Attorney Segal-George stated she would try, the motion is to continue this meeting that would allow the Commission to final the resolution and the attached documents that they conditionally approved Monday December 16, 2019 to a point in time when the City receives notice that all of the necessary closings have taken place and the client is ready to waive their confidentiality under F.S. 288.075 and reveal their name. Commissioner Herzberg asked if that was acceptable in to Commissioner Nabicht. Commissioner Nabicht stated the only correction to that is, if he said it he misspoke, he does not need to have them close on their property, the Commission just wants to have them reveal who they are before he is willing to vote on the package. If there is something that comes up and their closing is held up and they want to reveal or waive their confidentiality under F.S. 288.075, but other than that what the City Attorney stated is accurate. It is not contingent on the closing. Mayor Herzberg asked Commissioner King if he was good with the motion and Commissioner King replied he does not think it makes any difference whether they are revealing or closing because they are not going to reveal until they have closed so it could City of Deltona Page 7 Printed on 2/26/2020 Special City Commission Meeting Minutes December 19, 2019 be either way and he is good with it. Mayor Herzberg stated she would prefer reveal just because of what happened today and it is better when the client is ready to reveal their name then the Commission will approve the continuation of this incentive package, ratify it. The Commission will have another special meeting as soon as all the ducks are lined up and in a row and then the Commission will see everyone back here again. The amended motion carried by the following vote: For: 7 - Commissioner Avila-Vazquez, Commissioner Bradford, Commissioner King, Commissioner McFall, Commissioner Nabicht, Vice Mayor Ramos, and Mayor Herzberg Resolution No. 2019-68 was continued at 6:39 p.m. 5. ADJOURNMENT: There being no further business, the meeting adjourned at 9:39 p.m. ______________________________ Heidi K. Herzberg, MAYOR ATTEST: ________________________________ Joyce Raftery, CMC, MMC, CITY CLERK City of Deltona Page 8 Printed on 2/26/2020