City Council: Work Session

110 SE Watula Avenue Ocala Ocala, FL 34471 City Council: Work Session www.ocalafl.org Minutes Tuesday, November 8, 2022 12:00 PM 1. Call to Order 2. Roll Call Present: Mayor Reuben Kent Guinn Council President James P. Hilty Sr Council Member Kristen M. Dreyer Pro Tem Barry Mansfield Council Member Jay A. Musleh Council Member Ire J. Bethea Sr Municipal Officers/Others Present: The meeting was also attended by City Manager Pete Lee, City Clerk Angel Jacobs, Growth Management Director Tye Chighizola, Marketing & Communication Manager Ashley Dobbs, Deputy Planning Director Aubrey Hale, Community Outreach Manager Rachel Fautsch, Deputy Director of Procurement/Contract Corrin Fitsemons, Airport Director Matthew Grow, Director of Procurement & Contracting Daphne Robinson, Chief of Staff Chris Watt, IT Representative, and other interested parties. 3. Public Notice Public Notice for the November 8, 2022 City Council Work Session Meeting was posted on October 7, 2022 4. Public Comments 5. Topics for Discussion a. City Council District Boundaries Growth Management Director Tye Chighizola discussed the redistricting process. The City focuses on evenly distributing the population growth between four districts. He provided a brief overview of the redistricting timeline and population data. City staff will introduce a new ordinance on November 15, 2022, and the public hearing is pending December 6, 2022. The population data shows an accumulated growth of 7,293 people from 2010 to 2020. He provided a brief history of the redistricting map process over the years. District 3 has shown tremendous growth over the years compared to District 4 (lacking development growth). Council has two redistricting options to choose from. Option 1 includes the following District changes: District 2- to include the Airport, Carlton Arms, and Census Page 1 of 7 City Council: Work Session Minutes November 8, 2022 Track 18; District 3- to include College Park, and south residential area; and District 4 - to include Deer Wood, and South Wood. Option 2 includes the following District changes: District 2- Carlton Arms, College Park, and North Census Track 18; District 4- South Census Track, and West of 25th Avenue. He requested feedback from Council regarding the two options. Council President Bethea questioned splitting Census Track 18. Mr. Chighizola responded Census Track 18 will be split in option 2, between District 2 and 4. The City anticipates the southwest section will lead in development growth. He explained how the districts population growth will even out over the years. Mr. Chighizola noted all council members are located from the central section, which creates a redistricting problem. Council Member Musleh suggested increasing District 4 to the south boundary. He questioned if he must resign his seat. He stated he is only required to reside in his District when elected. Mr. Chighizola responded he does not believe that is true. The issue was discussed with a previous Council Member nearing the end of his term. Council Member Musleh is not near the end of his term. Council Member Musleh stated he would like to see participation from the southwest quadrant. He suggested recruiting citizens to serve on the Code Enforcement Board, Planning & Zoning Board, and Board of Adjustments. Mr. Chighizola noted only one or two candidates have expressed interest from Fore Ranch. Council Member Musleh commented Cody Poole was the only candidate he can remember from Fore Ranch over the past 10 years. Mr. Chighizola commented either option will remedy the high development growth in District 3. He provided a brief overview of the racial data. The racial distribution in District 2 was 50/50; including the Carlton Arms area moves the distribution to 60/40. The African American population has decreased over 10 years. To note, the Hispanic population is considered the biggest growth factor in the City. The total number of registered voters in the City amounts to 39,000. Registered voters per District: District 4- 12,000, District 2- 6,000, and other districts 9,000. Council Member Musleh favors option 1. Council President Bethea favors option 1. Mayor Guinn concurs with Council President Bethea and Council Member Musleh. Mr. Chighizola commented the City expressed concern removing Census Track 18 from District 2, in 2002. Option 1 will move Census Track 18 back to District 2. Page 2 of 7 City Council: Work Session Minutes November 8, 2022 Council President Bethea asked where the Saddlewood area is located. Mr. Chighizola responded Saddlewood is located in District 3. The Carlton Arms Apartments will be relocated from District 3 to District 2. Mr. Chighizola commented Council will choose an option to adopt during the public hearing, and the City has postponed significant changes at this time. Council President Bethea reiterated he favors option 1. Council President Bethea opened public comment. Whitfield Jenkins, 2200 NW 24th Road, Ocala, FL, asked if the City held previous redistricting meetings this year. He noted the 2020 Redistricting Committee has not issued a census report to the public; and questioned what census data the City is utilizing for the redistricting process. He requested Council address racial politics in candidacy and voting. Mr. Chighizola spoke on the City’s community outreach efforts. The City is utilizing census data for the redistricting process. City Manager Pete Lee stated the City can perform additional outreach over the next two weeks. Council President Bethea requested the City host community meetings in West and East Ocala. Council Member Musleh noted District 3 has a high annexation rate compared to District 2. Mr. Chighizola commented a large commercial annexation request was approved north of SR40 this year; and District 3 is seeing a rise in residential growth south of 20th Street. Council Member Dreyer questioned if the additional outreach would push extending the final decision date to February or March. Mr. Chighizola responded the City has strict deadlines they must meet. He expressed concern the extended date will impact the elections next Fall. Council Member Dreyer questioned why the City wants to wait until February or March to perform redistricting. Mr. Chighizola explained the City must perform a Charter change every even year before the redistricting process. The City will perform an introduction and public hearing. City Clerk Angel Jacobs suggested introducing an ordinance on November 15, 2022. Mr. Chighizola commented the City can reschedule the ordinance introduction to November 20, 2022, and they will continue outreach efforts in the community. Page 3 of 7 City Council: Work Session Minutes November 8, 2022 Mayor Guinn asked if a Charter change is needed to realign the districts. Mr. Chighizola responded yes; the City must redesignate the districts per the Charter, and Council must adopt a new ordinance. Mayor Guinn stated he does not favor taxation without representation. He expressed concern the public will choose to only vote for candidates in their District. Mr. Chighizola commented redistricting shows the candidates competing in each District. b. Economic Development Deputy Director of Planning Aubrey Hale discussed economic development in Ocala. The City recommends the following changes for the Small Business Investment Program: reducing the minimum annual wage of 125% to 115%, with a 3-year contract term, and $25,000 grant maximum. Economic Investment Program changes: tier-based system, with the option to waive a financial review, and suspension of EDIR given current volatility in energy markets. The City has provided approximately $3.7 million in EIP incentives to 8 projects completed in the past 10-years. Furthermore, the City received approximately $3.3 million in ad valorem revenue and $28.3 million in electric revenue. Approximately $5.6 million has been transferred to the General Fund from electric revenue. He provided a brief overview of catalytic sites and the Midtown Master Plan. The City will move Downtown/Midtown secondary sites to primary sites. Council President Bethea requested more information regarding the Economic Development Incentive Rider (EDIR). Mr. Hale responded the program was introduced to the City in 2015. To qualify for a rate reduction, companies must generate over 500KVA in electric, and any user can apply within the Ocala electric utility service area or City limits. Council Member Dreyer asked if the City created a list defining tier 1 jobs. Mr. Hale responded the tier 1 jobs are defined as airport services, Class A office, and technology. Council Member Dreyer requested the Financial Review Committee continue performing financial reviews for applicants. City Manager Pete Lee assured the City will continue the financial review process. Council Member Dreyer stated she favors a 3-year term with annual reporting. Mr. Lee confirmed the City can perform annual reporting. Council Member Dreyer asked when the applicant will receive the $25,000. Mr. Hale responded applicants will receive funding on the front end; once all requirements are met the applicant must fulfill the payment portion. The City has terminated past agreements due to applicants not meeting the specified requirements. Page 4 of 7 City Council: Work Session Minutes November 8, 2022 Council Member Dreyer suggested Council continue to approve the agreements. Council Member Musleh noted the City Manager has the authority to approve agreements up to $10,000. Mayor Guinn questioned the return-on-investment totaling $37.2 million. Mr. Hale responded the electric revenue greatly contributed to the revenue total. c. Residential Surplus Lots Director of Procurement & Contracting Officer Daphne Robinson discussed the residential surplus lots. The Procurement Department will partner with CMO Growth Management and the Ocala Airport to ensure the solicitation process is utilized to find qualified and capable developers for economic development projects. The Residential Inventory Redevelopment Program focuses on single-family residential developments by utilizing a two-step solicitation process. She summarized the qualification process for the two-step solicitation process and provided a brief overview of the catalytic site solicitation/evaluation process. If the City is unable to reach an agreement with the highest ranked applicant, the agreement will terminate, and the City will move forward with the next highest ranked applicant. Furthermore, all Intent to Award agreements will be considered by City Council. Policies & procedures will be included in the City’s updated Procurement Policy, which will be submitted to Council, pending late December, or early January. Council Member Hilty questioned if the City will only award 5 for 10 vacant lots. Ms. Robinson responded no; the City is applying a vacant lot cap rate of 5 per proposer, to prevent hoarding. City Manager Pete Lee commented the cap rate only applies to lots in the program. Council Member Dreyer asked if the applicant must start construction within a specified time frame. Ms. Robinson responded yes; the applicant must meet the 30th month maximum development period. Mayor Guinn questioned the length of time for public advertisement to contract negotiation award. Ms. Robinson explained the City streamlined the process for the public to achieve an award within 60 days. Mr. Lee noted the estimated time frame is 60- to 120-days. Mr. Lee commented the City streamlined the award process and performed significant community outreach. Furthermore, sites will be added to the Vision 2035 Plan. Mayor Guinn requested the City move fast on the catalytic sites. Page 5 of 7 City Council: Work Session Minutes November 8, 2022 Council Member Dreyer thanked Ms. Robinson for her great leadership work with the City. d. Catalytic Sites Airport Director Matthew Grow discussed land sale criteria for Airport property. The land located west of SW 67th Avenue is either for lease or sale and is considered dedicated non-aviation use. The land located east of SW of 67th Avenue is for lease only. The Airport's Master Plan shows a 5-to-10-year future aviation growth rate. The City has the right to sell parcels above the appraised value. The Airport Advisory Committee stated they do not support selling Airport property at this time. Council Member Dreyer questioned if the 115-acres (under contract) if they had first right of refusal on the additional 80 acres. She questioned if it was part of the green section. Mr. Grow responded he will report back to Council. Mayor Guinn questioned if the 122-acres is part of future commercial development. Mr. Grow responded a portion of the 122-acres will be dedicated for an airline terminal project. President Bethea requested City staff continue to work with the Airport Advisory Committee. Mr. Grow responded all land deals are presented to the Committee. Council Member Mansfield asked if the 106-acres is for sale. Mr. Grow responded he does not recommend listing the property for sale, due to the continuity with the aviation portion of the Airport. Council Member Mansfield stated he concurs with the Committee’s comments regarding the sale of Airport property. Mr. Grow noted the Airport is facing challenges developing the corner due to height restrictions. Council Member Dreyer asked what happened to the RV Park project. Mr. Grow responded the project went radio silent. Council Member Mansfield asked if the 71-acres will be leased to one person. Mr. Grow responded Council can choose to divide the land as they please. The City received an LOI from Burrell, and the lease agreement is under negotiation. Council Member Mansfield asked if the City could divide the 44-acres. Mr. Grow responded yes. Council Member Mansfield asked what happened to the Hexaport. Mr. Grow responded Hexaport’s lease expires in November 2024. The City has been trying to get in contact with Hexaport to discuss reinvesting in the property. Page 6 of 7 City Council: Work Session Minutes November 8, 2022 Council Member Mansfield asked if the Sheriff’s Office chose not to pursue the 21-acres development project. Mr. Grow clarified the Sheriff’s Office chose not to pursue a development project on the southern part of the 44-acres. The Sheriff’s Office decided to reinvest in their existing hangar. Mr. Grow clarified the development availability south of the 21-acres parcel with Council Member Mansfield. The City received a proposed agreement from PRP Aviation for land located on the south end of the 44-acres. There being no further discussion, the meeting adjourned. 6. Adjournment Adjourned at 1:16 pm. Minutes _______________________________ ________________________________ James P. Hilty Sr Angel B. Jacobs Council President City Clerk Page 7 of 7