City Council

July 28, 2020 The regular meeting of the Council of the City of Martinsville, Virginia was held on July 28, 2020 in Council Chambers, Municipal Building, at 7:30 PM with Mayor Kathy Lawson presiding. Other Council Members present included Jim Woods, Danny Turner, Jennifer Bowles and Chad Martin. Staff present included City Manager Leon Towarnicki, Assistant City Manager/City Attorney Eric Monday, Finance Director Linda Conover, Assistant Finance Director Mandy McGhee, Community Development Mark McCaskill, Building Inspector Kris Bridges, and Deputy Police Chief Rob Fincher. Mayor Lawson called the meeting to order and advised Council would go into Closed Session beginning at 7:00PM. In accordance with the Code of Virginia, Title 2.2, Chapter 37 Freedom of Information Act, Section 2.2-3711 (A) Code of Virginia (1950, and as amended) and upon a motion by Council Member Bowles and seconded by Council Member Turner with the following 4-0 recorded vote: Council Member Bowles, aye; Vice Mayor Martin, aye; Council Member Turner, aye; Mayor Lawson, aye. Council Member Woods was not in attendance for the roll call vote but joined closed session at 7:10pm. Council convened in Closed Session to discuss the following matters: (A) Discussion of the award of a public contract involving the expenditure of public funds, including interviews of bidders or offerors, and discussion of the terms or scope of such contract, where discussion in an open session would adversely affect the bargaining position or negotiating strategy of the public body, as authorized by Subsection 29. City Attorney Monday elaborated, stating that closed session was specifically to discuss current contractual arrangements, and current and potential prospective business openings, expansions or relocations, with the Martinsville-Henry County Chamber of Commerce. At the conclusion of Closed Session, each returning member of Council certified that (1) only public business matters exempt from open meeting requirements were discussed in said Closed Session; and (2) only those business matters identified in the motion convening the Closed Session were heard, discussed, or considered during the A motion was made by Council Member Woods seconded by Council Member Bowles, with the following 5-0 recorded vote in favor to return to Open Session: Vice Mayor Martin, aye; Mayor Lawson, aye; Council Member Bowles, aye; Council Member Turner, aye; and Council Member Woods, aye. Mayor Lawson stated that no action was taken out of Closed Session. Mayor Lawson called the meeting to order. Following the Pledge to the American Flag and invocation by Council Member Woods, Lawson welcomed everyone to the meeting. Lawson explained that the meeting would follow COVID guidelines and recognizing social distancing recommendations. Hear a presentation regarding a possible redevelopment project related to the BB&T bank property located at the corner of East Church and Ellsworth Streets, and consider approval/authorization related actions necessary to move such a project forward – City Manager Towarnicki shared details of the proposed redevelopment project for the BB&T bank July 28, 2020 property at the corner of Church and Ellsworth. Chris Harrison and Shawn Moore of C.A. Harrison Companies, LLC shared their redevelopment ideas for the property. Towarnicki summarized the steps needed to go forward with this project including a resolution and execution of necessary documents. Harrison explained that he had studied the City demographics and feels that the BB&T building fits their plan for redevelopment for commercial space on the ground floor and residential apartments on upper floors. He anticipates this to be a twelve-month project once agreements are made and finances are in place. Moore has ties to the City, having participated in Martinsville High School sports so he is happy to help manage a project within the City. City Attorney Monday explained that the building is classified in the enterprise zone and would qualify for historic tax credits. Council Member Turner asked how the City would use office space on the ground floor. Moore explained that they would purchase the building from the City and the organization would give back that space to the City for a 10-20 year term without rent in return for the IRF Grant which the City must apply for. Vice Mayor Martin shared that a previous Harvest Foundation study revealed that housing was a need for the community so this project is in line with that. Mayor Lawson and Council Member Bowles expressed their excitement for this project and working with Harrison and Moore. Monday verified that the municipal offices would be no cost to taxpayers but the final agreement is still in the works. A phase I environmental study was done on the asbestos in the building but the cost is not as high as originally expected. The City received several RFPs for the BB&T building. Harrison explained that once the building qualifies under the historic tax credits then they would receive both federal and state credits to go towards the cost of the project. Council Member Bowles made a motion to adopt the resolution authorizing the City Manager to execute documents related to the filing of an application with the Department of Housing and Community Development for an Industrial Revitalization Fund grant. Vice Mayor Martin seconded the motion with all Council Members voting in favor. Council Member Bowles made a motion to recess as City Council and convene as the Redevelopment and Housing Authority. The motion was seconded by Vice Mayor Martin with all Council Members voting in favor. Authority Member Woods made a motion to accept the transfer of title of the BB&T building to the MRHA according to the terms of the option previously entered into between the City or it’s designee, and BB&T and to execute all documents necessary to affect the transfer. Authority Member Bowles seconded the motion with all Members voting in favor. Authority Member Bowles made a motion to authorize the Executive Director to negotiate the redevelopment of the property with C.A. Harrison Companies, LLC, retaining title to such areas of the main floor as are necessary for City offices, and to execute all documents necessary to affect the redevelopment. Authority Vice- Chairman Martin seconded the motion with all Authority Members voting in favor. Authority Member Woods made a motion to recess as the Redevelopment and Housing Authority and July 28, 2020 reconvene as City Council. Authority Member Bowles seconded the motion with all Members voting in favor. Approve minutes from the July 14, 2020 Council Meeting – Council Member Bowles made a motion to approve the minutes as presented. Council Member Woods seconded the motion with all Council Members voting in favor. Conduct a public hearing on the City’s intent to finance up to $2,500,000 principal amount of water and sewer revenue bonds related to the financing of the Reservoir spillway repair project and consider approval of the financing ordinance on second reading – City Manager Towarnicki summarized the need for the public hearing required for the second reading of the finance ordinance. Mayor Lawson opened the floor to the public hearing. No one approached the podium so the public hearing was closed. Council Member Bowles made a motion to approve the financing ordinance on second reading. Vice Mayor Martin seconded the motion with the following 5-0 roll call vote: Vice Mayor Martin, aye; Council Member Bowles, aye; Council Member Turner, aye; Council Member Woods, aye; and Mayor Lawson, aye. July 28, 2020 July 28, 2020 July 28, 2020 Conduct a joint public hearing with the Planning Commission on a request from Wayne Draper for a Special Use Permit at 208 Fayette Street to allow conversion of an upstairs auditorium space into three 2-bedroom apartment units – Joseph Martin, Planning Commission Chairman called the Planning Commission to order. Mark McCaskill of the Community Development department explained that the Planning Commission had already discussed the request. The project is within the goals of Uptown. McCaskill recommends the Planning Commission discuss and vote to forward their recommendation to Council. Mayor Lawson opened the public hearing. Mr. Draper was available to answer Council questions but none were asked. No one approached the podium so the public hearing was closed. The Planning Commission approved the SUP request 3-0. Council Member Bowles made a motion to approve the special use permit at 208 Fayette Street to allow conversion of an upstairs auditorium space into three 2-bedroom apartment units; Vice Mayor Martin seconded the motion with all council voting in favor. Draper explained that neighboring residents and businesses have not expressed any negative opinions about the apartments or the revitalization of the building. City Attorney Monday explained that he does not feel that the location would qualify for any historic tax credits but he encouraged Draper to contact Community Development for other options. July 28, 2020 Consider approval of a Memorandum of Understanding with the Martinsville-Henry County Chamber of Commerce’s Partnership for Economic Growth (CPEG) for management services of the Incubator – City Manager Towarnicki explained that the initial contract was executed 5 July 28, 2020 years ago so the contract is due for renewal. CPEG has done an amazing job and proved to be beneficial for the City and the community. Towarnicki recommends approval of the contract. Council Member Bowles made a motion to approve the Memorandum of Understanding the Martinsville-Henry County Chamber of Commerce’s Partnership for Economic Growth for management services of the Incubator. Vice Mayor Martin seconded the motion with all Council Members voting in favor. Consider approval of a Memorandum of Understanding with the Martinsville-Henry County Chamber of Commerce’s Partnership for Economic Growth (CPEG) for serves related to efforts involving small business development in the City of Martinsville – City Manager Towarnicki reminded Council that the agreement between the City and CPEG crafted 5-6 years ago has been very beneficial to the City. Staff recommendation is approval of the MOU as presented. Council Member Bowles made a motion to approve the Memorandum of Understanding with the Martinsville-Henry County Chamber of Commerce’s Partnership for Economic Growth for services related to efforts involving small business development in the City of Martinsville for FY21. Vice Mayor Martin seconded that motion with all Council Members voting in favor. July 28, 2020 Consider adoption of a resolution authorizing the filing of an application for funding consideration of certain transportation projects through the Virginia Smart Scale Funding July 28, 2020 process – Mark McCaskill of the Community Development Department explained that since 2015 the Commonwealth of Virginia through the Office of Intermodal Planning and Investment and VDOT has changed the way they choose transportation projects statewide. It has become more of a competition between Cities, Counties and other entities; they must apply then the state will score the applications before project approval. The resolution is the fourth round of Smart Scale and would allow the City to submit the 3 required applications before the August 17, 2020 deadline. Lisa Hughes (VDOT) and her team of engineers are looking at ways to make these projects more attractive. Projects include two Fayette Street corridor improvements which were submitted last year but not approved. The third project is for pedestrian improvements at Market Street and Moss Street intersection where there was a previous pedestrian fatality. Mayor Lawson shared that at last month’s West Piedmont Planning District Commission meeting, all three projects were viewed favorably. Council Member Bowles made a motion to adopt the resolution authorizing the filing of an application for funding consideration of certain transportation projects through the Virginia Smart Scale Funding process. Vice Mayor Martin seconded the motion with all Council Members voting in favor. Business from the Floor – There was no business from the floor. Mayor Lawson welcomed Boy Scout Joseph Fincher with Troop 168 in Ridgeway. Fincher explained that he is working on his citizenship in the community merit badge; attending a City or County Council Meeting is a requirement for that July 28, 2020 Comments by City Council – Council Member Turner spoke to Dean Johnston and local producer of movies, he would like to see some video’s about moving to Martinsville and doing business online and internet options using funds from the COVID CARES grant money. VJ Day is August 15, 2020. This will be the 75th Anniversary and they expect to plan something special for those veterans in Martinsville. Congressman Griffith is back to work after recovering from COVID. Turner mentioned Ebony Millner on Dillard Street, he made a motion asking the City to cover the liens on the property. City Attorney Monday does not recommend that the City refund her money. There were two lots the City acquired through the Land Bank Authority. Millner came to the housing office looking for residency and had $50k to invest into the property. Kris Bridges recommended that she could look at the property and she was told that if she acquired the property, she would have a time limit to rehab the property. She was willing to purchase the property, which was approved by City Council, and she paid $7500 to cover the demolition cost on the adjoining property. Monday did prepare the deed for the property and there was no title search or survey which was detailed in the deed. The deed had requirements for repairs to be made within 12 months. Inspectors met with Millner offering direction on what needed to be completed on the rehab. Outside of the 3-day rescission period, Millner soon contacted the City Manager stating that she wanted out of the contract and wanted her money refunded. Child Support Enforcement contacted Monday’s office to ask where the money came from. Millner contacted the City again asking to be removed from the contract due to legal costs and a custody case and was unhappy that the purchase was listed in the Martinsville Bulletin. There was a lien on the property which may have prevented her from obtaining financing for the repairs. A judgement was satisfied and the lien removed. There are eight other unpaid judgements related to Ebony Millner which were attached to the property after she took possession of the property. If the City approves her request to end the contract that would be a $7500 cost to the tax payers. There is an owner/occupant agreement in the contract, along with zoning restrictions which would prevent Millner from selling the property to an organization for a women’s group home. There has been cleanup at the site but no rehab. Millner is not occupying the home. She has 6 months to complete the rehab per her contract. For the City to reverse this transaction with Millner would set an unfortunate precedence on future contracts and would send the message that if you enter into a contract with the City, you could easily back out of it. Council Member Turner made the motion to allow Millner to rescind on her contract and return the $7500 back to her. Turner said the City should do something with the property since it is not fit for rehab. Turner’s motion died for lack of second motion. Vice Mayor Martin has a new-found respect for the Mayor and her husband for the work they do installing and taking down the flags uptown. The exchange club gets out early to put flags up for special occasions. Martin encouraged residents to please complete the census. Martin offered condolences to Roy Prillaman’s family. Prillaman served July 28, 2020 as a deputy with the Martinsville Sheriff’s department. Martin stated that it is frustrating that a member of Council would use their position to go after someone else. Martin offered his apologies to City Attorney Monday and to Building Inspector Kris Bridges for the action taking against them, stating that it is disheartening for a representative of City Council to utilize their position in this way. Council Member Bowles also encouraged everyone to complete the census. There is a movie casting call on August 6 from 3:00-6:00pm at 20 East Church Street, residents can visit Natalie Hodges Facebook page for more info. Bowles shared that Carlisle School would be offering distance learning for students. Bowles offered her condolences to the family of her neighbor Willis Via, who passed away 2 weeks ago. Via was a Martinsville educator and principal and she thanked council for the proclamation in his honor. Bowles has received support and kind words related to events the past few weeks. She is grateful to have the community and her colleague’s support. Council Member Woods echoed Martin’s statements. Yesterday was Korean War Veterans Armistice Day, explaining that is why the flags were flown in Uptown Martinsville. On Thursday July 30, the Theater Works community players present a George Bernard Shaw presentation by live stream on YouTube. Mayor Lawson explained that people pay attention to the flags when they fly Uptown and that they bring joy to the community. The Mustangs will be playing tonight AND again Friday and Monday. Comments by the City Manager – City Manager Towarnicki shared details about ongoing projects like the Chief Tassel building and the BB&T building, the project on Aaron Street sharing that Landmark did receive notice that the tax credits were approved so they will be moving forward on demolition of that site. There are other projects that will come before Council in the near future. Towarnicki has never seen so much activity starting in the City at any given time. The Martinsville Mustangs last game is August 6. Greg Suire has expressed the desire to renew their contract for another year. The CARES funding committee meets twice a week. They have received 100 applications and awarded 84 businesses totaling $320,416.24. The deadline for applications is July 31, 2020. The State Secretary of Finance sent notice of another $1.1million that will be distributed to Martinsville in the near future. He is pleased to announce the public works director position will be filled by Jeff Gauldin beginning Monday August 3. The City as allocated $15,000 to Grace Network to assist residents who need help paying utility bills. He anticipates the need for that fund will increase up in the upcoming weeks. Residents are encouraged to contact Grace Network before the end of August if they need help with their utility bills. All delinquent customers are being contacted and must respond to Utility Billing to set up a repayment plan. Residents who do not contact the Utility Billing Department will be added to the cut-off list effective September 1. July 28, 2020 There being no further business, Council Member Bowles made a motion to adjourn the meeting; the motion was seconded by Vice Mayor Martin with all Council Members voting in favor. The meeting adjourned at 8:45pm ______________________________________ ______________________________________ Karen Roberts Kathy Lawson Clerk of Council Mayor