Labor and Economic Development Committee

601 W. Jefferson Street Louisville Metro Government Louisville, KY 40202 Action Summary - Final Labor and Economic Development Committee Chair Person David Yates (D-25) Vice Chair Anthony Piagentini (R-19) Committee Member Keisha Dorsey (D-3) Committee Member Donna Purvis (D-5) Committee Member Paula McCraney (D-7) Committee Member Markus Winkler (D-17) Committee Member Robin Engel (R-22) Tuesday, March 10, 2020 3:00 PM Council Chambers Call to Order Chair Person Yates called the meeting to order at 3:08 p.m. Roll Call Chair Person Yates introduced the committee members and non-committee members present. A quorum was established. Chair Person Yates left at 3:51 p.m. Present: 7 - Chair Person David Yates (D-25), Vice Chair Anthony Piagentini (R-19), Committee Member Keisha Dorsey (D-3), Committee Member Donna L. Purvis (D-5), Committee Member Paula McCraney (D-7), Committee Member Markus Winkler (D-17), and Committee Member Robin Engel (R-22) Non-Committee Member(s) Council Member Barbara Sexton Smith (D-4); and Council Member Madonna Flood (D-24) Support Staff Hollie Hopkins, Jefferson County Attorney's Office Jeff Derouen, Jefferson County Attorney's Office Laura Ferguson, Jefferson County Attorney's Office Clerk(s) Sonya Harward, Clerk Louisville Metro Government Page 1 Labor and Economic Development Action Summary - Final March 10, 2020 Committee Special Discussion 1. ID 20-0393 R-043-20: A RESOLUTION OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT, REQUESTING THAT THE KENTUCKY ECONOMIC DEVELOPMENT FINANCE AUTHORITY ADOPT A RESOLUTION PROVIDING FOR THE ISSUANCE OF REVENUE BONDS IN AN AMOUNT NOT TO EXCEED $62,000,000, THE PROCEEDS OF WHICH WILL BE LOANED TO CHRISTIAN CARE COMMUNITIES, INC., A KENTUCKY NONPROFIT CORPORATION, AND/OR ONE OR MORE AFFILIATES, WITH FACILITIES LOCATED WITHIN THE BOUNDARIES OF JEFFERSON COUNTY, TO FINANCE AND REFINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF CERTAIN FACILITIES CONSISTING OF HEALTH CARE AND HEALTH RELATED FACILITIES. Attachments: R-043-20 V.1 031920 - Issue Revenue Bonds for Christian Care Communitites, Inc..pdf Chair Person Yates explained that this discussion was about a proposed Resolution and that it would be on the Metro Council agenda on March 19, 2019 as an emergency Resolution, but he wanted it to be vetted at the Committee meeting so that it is not heard for the first time at the Metro Council meeting. The following spoke to this item: - Ben Kitto, Ice Miller LLP - John Dadds, Christian Care Communities - Chair Person Yates - Vice Chair Piagentini - Laura Ferguson, Jefferson County Attorney's Office The following was discussed: - Christian Care Communities is the largest faith-based not-for-profit senior living provider in Kentucky and they have a couple of facilities in Louisville that employee a little over 200 people - the reason for the bond is the organization's ability to refinance at a better rate - the reason for the Resolution being an emergency is because it needs to be approved by the Metro Council before they appear before the Kentucky Economic Developmet Finance Authority on March 26, 2020 - there is no cost to local government and no liability at any point in the bond process - the difference between this bond and the Norton bond that was recently passed Louisville Metro Government Page 2 Labor and Economic Development Action Summary - Final March 10, 2020 Committee Pending Legislation 2. R-039-20 A RESOLUTION DETERMINING TWO PARCELS OF REAL PROPERTY LOCATED AT 7709 PRESTON HIGHWAY, LOUISVILLE, KENTUCKY, AND DESCRIBED IN EXHIBIT A ATTACHED HERETO ("PREMISES"), AND THAT ARE OWNED BY JEFFERSON COUNTY, KENTUCKY, CAPITAL PROJECTS CORPORATION, AN ENTITY WHOLLY OWNED BY LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT ("METRO GOVERNMENT"), AS SURPLUS AND NO LONGER NEEDED FOR A GOVERNMENTAL PURPOSE AND AUTHORIZING ITS TRANSFER. Sponsors:Primary Madonna Flood (D-24) Attachments: R-039-20 V.1 030520 - Surplus Property at 7709 Preston Hwy.pdf R-039-20 ATTACH - Exhibit A Surplus 7709 Preston Hwy.pdf R-039-20 ATTACH Certification 7709 Preston Hwy.pdf A motion was made by Committee Member Dorsey, seconded by Committee Member McCraney, that this Resolution be recommended for approval. The following spoke to this Resolution: - Stephanie Kertis, Louisville Forward - Chair Person Yates - Chip Hamm, Kaplan, Johnson, Abate and Bird LLP - Committee Member McCraney - Council Member Flood - Vice Chair Piagentini - Jeff O' Brien, Develop Louisville - Hollie Hopkins, Jefferson County Attorney's Office - Jeff Mosley, Mayor's Office The following was discussed: - this property is known as the old Okolona Library - the Nance Realty Company is the current buyer - the purchase price is $647,500, which is the average of two independent appraisals - the plan is to develop the property into a retail center with a few outlying buildings - part of the property has already been demolished and the old library may be demolished too, and a development plan has not yet been submitted - the property is currently zoned C-1 and R-4 - the meaning of 'first right of negotiation' versus 'first right of refusal,' and how this relates to this agreement The motion carried by a voice vote and the Resolution was sent to the Consent Calendar. Louisville Metro Government Page 3 Labor and Economic Development Action Summary - Final March 10, 2020 Committee 3. O-003-20 AN ORDINANCE AMENDING THE LOUISVILLE METRO CODE OF ORDINANCES (“LMCO”) SECTIONS 154.02, 154.03, [AND] 154.04(B), AND 154.05 RELATING TO PROPERTY ASSESSMENT AND REASSESSMENT MORATORIUM PROGRAMS (AS AMENDED). Sponsors:Primary David James (D-6), Primary Barbara Sexton Smith (D-4), Primary Keisha Dorsey (D-3), Primary Donna L. Purvis (D-5), Primary Jessica Green (D-1) and Primary Pat Mulvihill (D-10) Attachments: O-003-20 V.2 CAM 031020 - Property Assessment Moratorium.pdf O-003-20 PROPOSED CAM 031020 Amending LMCO 154 Regarding Property Assessment and Reassessment Moratorium Programs.pdf O-003-20 V.1 010920 Amending LMCO 154 Regarding Property Assessment and Reassessment Moratorium Programs.pdf O-003-20 V.1 010920 ATTACH Exhibit A.pdf Tax Moratorium - Revised Ordinance Summary - January 2020.pdf A motion was made by Committee Member Dorsey, seconded by Committee Member Purvis, that this Ordinance be recommended for approval. Laura Grabowski, Community Development/Develop Louisville, and Chair Person Yates spoke regarding the following: - the purpose of this Ordinance is to provide a tax moratorium that freezes property owners' assessments if they are going to put money into doing rehab work to their house that is over 25 years old. - property owners must meet one of four thresholds to be eligible for the moratorium, and only the second and third threshold are being amended in this Ordinance. - this may help neighborhoods that have vacant and abandoned properties, as well as encourage property owners to increase the value of their homes as the other property in the area around them increases in value. A motion was made by Vice Chair Piagentini, seconded by Committee Member Winkler, that this Ordinance be amended as shown in the attachment titled "O-003-20 PROPOSED CAM 031020 Amending LMCO 154 Regarding Property Assessment and Reassessment Moratorium Programs.pdf." The following spoke to the proposed amendment: - Vice Chair Piagentini - Laura Grawbowski - Council Member Sexton Smith - Jeff Derouen, Jefferson County Attorney's Office - Commitee Member McCraney - Commitee Member Dorsey - Commitee Member Purvis - Chair Person Yates The following was discussed: - concerns regarding the Ordinance only addressing gentrification as it Louisville Metro Government Page 4 Labor and Economic Development Action Summary - Final March 10, 2020 Committee pertains to race and socioeconomic status, but should also include elderly property owners who are on fixed income - the census tracts that are included, and how the census tracts are determined using Housing and Urban Development's definition - there are currently 43 property owners using this program and none are owner-occupants - after the five-year moratorium period ends, there is a three-year sit out period before the property owner can reapply for the moratorium again, and it is transferrable if the property owner sells the property - there are grants available that homeowners can use for the rehab - property owners can apply to participate in the moratorium through the Construction Review Office at 444 S. 5th Street - property owners must apply before doing the work; the PVA will assess the property and then the work can be done; and after the work is complete, the PVA will reassess the property. Chair Person Yates signed on as a sponsor. The motion to amend carried by a voice vote. The motion to recommend for approval carried by the following vote and the amended Ordinance was sent to Old Business: Yes: 7- Yates, Piagentini, Dorsey, Purvis, McCraney, Winkler, and Engel Chair Person Yates relinquished the chair to Vice Chair Piagentini at 3:51 p.m. and left the meeting before discussion commenced on the next item. 4. O-396-19 AN ORDINANCE CREATING A NEW SECTION OF CHAPTER 113 OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT CODE OF ORDINANCES TO ESTABLISH AN ENTERTAINMENT DESTINATION CENTER WITHIN THE WHISKEY ALLEY AREA. Sponsors:Primary David James (D-6) and Primary Barbara Sexton Smith (D-4) Attachments: O-396-19 V.1 112119 LMCO Chapter 113.pdf Updated Whiskey Alley Draft Agreement 3.10.20.pdf Whiskey Alley - LED Concept Presentation 02.25.20.pdf Whiskey Alley Draft Agreement 2.25.20.pdf EntertainmentDestinationCenter.WhiskeyAllex.Ordinance.11.15.19.do cx A motion was made by Committee Member Winkler, seconded by Committee Member McCraney, that this Ordinance be untabled. Phil Weyland, Weyland Ventures, reviewed background information regarding what had been done so far, and referenced the attached presentation. A motion was made by Committee Member Winkler, seconded by Committee Member Dorsey, to call the question. The motion failed by the following vote: Yes: 3- Dorsey, McCraney, and Winkler Louisville Metro Government Page 5 Labor and Economic Development Action Summary - Final March 10, 2020 Committee No: 3- Piagentini, Purvis, and Engel Absent: 1- Yates A motion was made by Committee Member Engel, seconded by Vice Chair Piagentini, to table. The motion failed by the following vote: Yes: 2- Piagentini, and Engel No: 4- Dorsey, Purvis, McCraney, and Winkler Absent: 1- Yates No action was taken on this item. Adjournment Without objection, Vice Chair Piagentini adjourned the meeting at 4:16 p.m. *NOTE: Items sent to the Consent Calendar or Old Business will be heard before the full Council at the Metro Council Meeting on March 19, 2020. Louisville Metro Government Page 6