MAYOR JOE*S PUBLIC FORUM
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Transcript MAYOR JOE*S PUBLIC FORUM
August 13, 2013
MAYOR JOE’S PUBLIC FORUM
SETTING THE TONE!
That was Gnarls Barkley with his hit song
“Crazy”
The lyrics include:
“I
remember when I lost my mind”
“Does that make me CRAZY”
Hopefully after tonight’s presentation you won’t
think that he wrote this song about me
PHILOSOPHY TO START THE DAY
“If you’re not moving forward, you’re losing
ground.” ~ attributed to many
While change is not always welcome or viewed
as positive initially, I hope to prove that if it is
done properly, it will benefit the community
Here’s a local example:
PHILOSOPHY TO START THE DAY
“That’s their interpretation of beautifying the
lakefront. I’ve told a lot of people I don’t
understand how you take a baseball field with
grass and make it a parking lot and that
beautifies the area.”
~ WHS Baseball Coach Kevin Lenz – NWI Times
That of course was before he had a chance to
see or play at Oil City Stadium – The quote
obviously still serves as inspiration for me.
PHILOSOPHY TO START THE DAY
“One way to keep momentum going is to have
constantly greater goals” ~ Michael Korda, author
I feel we have momentum, now we need to
continue to push the envelope
PHILOSOPHY TO START THE DAY
“It doesn’t matter how slowly you go – so long
as you do not stop.” ~ Confucius
I had hoped by sharing that quote with you
today, that you would forgive me for how long it
takes to actually institute change!
PHILOSOPHY TO START THE DAY
Insanity: doing the same thing over and over
again and expecting different results.
~ Albert Einstein
As you’ll hear today, I may not have all of the
answers or be 100% correct in every one of my
assumptions, but it’s time to take some risks
and change how we do certain things
PHILOSOPHY TO START THE DAY
Mayor Joe’s Definition of “Controversial”
(the word will appear several times in the presentation)
Something
can be viewed as controversial if it can
impact a person’s:
Employment
Salary
or Income (Cost $$)
Home or property
Quality of Life
Philosophical believes
Or any Change that does not have unanimous support
AGENDA
Full Slate of Interesting – Controversial Topics
I usually thoroughly enjoy these Forums
But… this will be a tough presentation for me
I
am in the process of making several difficult decisions that
impact a lot of people…and that’s not easy
For those of you who have not attended one of my past
Forums, here’s a quick overview:
I’ll
run through my presentation as quickly as possible to stay
on schedule – probably 45 minutes or so
I’d ask that you please hold your questions to the end
At the end of the presentation, I’ll stay as long as needed to
answer your questions
AGENDA
Funding Plan Overview
WCC – YMCA Project
Stadium District Plan
New Hotel Concept
Water & Sewer rates
Residential Matching Assistance (Grants)
Quiet Zone (Whistle Ban)
Miscellaneous Projects
FUNDING PLAN OVERVIEW
Important background info for today’s
presentation
Extremely unusual & complex financial situation
Our Assessed Valuation (Taxable Property) is
expected to grow significantly in coming years
The growth will be short lived and then drop back
down to slightly more than it is today
Goal – Capture the maximum opportunity for City
FUNDING PLAN OVERVIEW
New growth will be captured in our TIF District:
Allows us to borrow to fund capital improvement
projects
While there is not enough time to discuss the
specifics at a Public Forum, this is the strategy
that provides the biggest bang for our buck
Important Factors:
We
don’t yet know all the financial details
Money must be spent on Projects
All debt will be repaid with Industrial tax revenue
FUNDING PLAN OVERVIEW
With that said, we are hoping that many of the
projects in our plan can be funded in the short
term, versus waiting to pay as we go
Because the Funds are limited, my hardest task
is to identify the projects that provide the
biggest benefit to the community
FUNDING PLAN
I thought a brief review of the Funding Plan would
clarify:
That there will be Capital Funds available
Why we will take on new debt – (NWI Times)
That none of the debt repayment will be paid by the
residents
I was expecting to formally announce a few of
these new projects today, but our final Financial
Analysis was not completed in time.
So until the money is in the bank, it’s prudent for me to
take the cautious approach
WCC OPPORTUNITY
History
I
know many of us “Old-timers” grew up in this
building
It is an important part of our community and our
past history
I’ve fought hard to maintain the building and invest
in improvements over the years
But, it’s a huge financial drain on the City’s budget
WCC OPPORTUNITY
Background
$750,000
in (WCC only) annual operating expenses
$250,000 in (WCC only) annual revenue
$500,000 annual loss or subsidy
None of the expected Capital $$ can be used to
offset these operating costs
This loss was much worse in previous years, but
improvements made have reduced the burden
New
windows
Energy efficiency improvements
Staffing changes
Increased revenue
WCC OPPORTUNITY
Background
Why is the subsidy so large?
Inherited
building – but no budget to support it
Laws prevent or limit us from making a profit
Always more difficult for a public entity to increase costs or
reduce the workforce
Always had surplus funds to funnel to operation
Tax Caps have changed that dynamic
Maximus “Good Government” Study (2005/2006)
Recommended the sale of the building
WCC OPPORTUNITY
Decided to explore all options before divesting property
City Actions to Date
Internal Task Force reviews
Commissioned an IU-SPEA Study to review the operation and
make recommendations
Study indicated the best “Financial” solution was to privatize the
building as a Full-Service Heath Club
Makes sense – Gyms, Pool, Track, Fitness area, etc.
Issues with this solution included:
Displaced Youth/Seniors - Cost associated with the displacement
Difficult to return to current operation if project failed
Reviewed and studied other options including:
Streamlined City Operation
Privatization – non-Health Club operation
Sale of Building
WCC OPPORTUNITY
Ideal Solution would:
Continue
to provide community minded
programming similar to today’s operation
Continue to serve all age groups of the community
Allow the City to maintain ownership of the building
Reduce or eliminate the City’s $500K subsidy
Allow for a workable “Exit Strategy”
The only option that provided all of these
benefits was the YMCA
YMCA PROPOSAL
Lease the building for $1 per year
YMCA to pay all operating costs associated with
their operation including:
Staffing
Utilities
Maintenance
YMCA to have complete control of the operation
Set their own rates
YMCA PROPOSAL
Benefits include:
Immediate
savings of the $500K annual subsidy
Continued and Improved Community Minded
Programming and Facilities for all ages
New operation will be much improved over today
YMCA
Expertise
Renovations
New equipment
Additional Programming
Childcare
YMCA PROPOSAL
Benefits include:
Continued
availability of facility for:
Emergency
Shelter
Public Events
Building
remains under City Control and Ownership
We
will essentially act as the landlord and maintain the
primary structural components of the building
Only
people who choose to use the Facility will pay
YMCA PROPOSAL
Important Factors:
Displaced employees will have multiple options
Bid/Transfer
into open positions
Early retirement
Interview with the YMCA
Severance to all, including part-time employees
City will invest to renovate the lower level and complete
the lobby restoration as planned
This
would have occurred regardless of the option chosen
All donations to the lobby renovation will be used as intended
YMCA PROPOSAL
Important Factors:
At
least 4 of the 12 bowling lanes will be removed
Option to remove all 12 lanes is being reviewed
Cost
– Funding dependent
Bowling
League options for this season limited
YMCA PROPOSAL
Important Factors:
YMCA
is an extremely reputable organization
They have funding avenues simply not available to
the City
They already have a proven track record in NWI
YMCA
Timetable
Signed MOU in place
Finalize YMCA Lease ASAP
Employee bidding and transfers by year end
Close building on January 1, 2014 for construction
Estimated savings of closing the building for
construction ranges between $100,000 - $200,000
Construction January – June
Reopen under YMCA control in June-July
If we cannot agree to terms with the YMCA by the end of
construction, we will operate the renovated facility
YMCA
This is simply the best business decision
Not everyone will agree with it, but we can’t
continue operating in the deep red
STADIUM DISTRICT PLAN
Now for controversial project #2
I hope you had a chance to review the graphic
to get a feel for what I am proposing
STADIUM DISTRICT PLAN
This project will:
Provide
the needed infrastructure for new BP
investment
Provide the needed attractions to create a
destination place
Provide new “diverse” residential opportunities
Provide multiple new commercial opportunities
Serve as the ‘Gateway’ into the Lakefront Park
STADIUM DISTRICT PLAN
While there are still some moving parts in the
Plan, here are some of the highlights:
The
project area includes all properties east of the
Schrage Avenue east alley and north of 121st
All
of Old Standard Avenue
All of Old Center Street
All of 119th Street
All of Front Street
Over
75 properties will need to be acquired
(Additional comments on this topic later)
STADIUM DISTRICT PLAN
The Proposed Plan (market driven) includes:
A variety of New Residential units
New commercial/multi-use buildings
Senior Citizen market-rate apartments
Multiple new restaurants and eateries
Entertainment venues – Museums – Sports Facilities
An allotted area for new BP development
Road closures and new roadways
Oil City Stadium additions
100’s of new parking spaces
STADIUM DISTRICT PLAN
Moving Parts - Entertainment Venues
Museums
Whiting-Robertsdale Museum (Refinery Component)
Chicago Baseball Museum
National Mascot Hall of Fame
Picking up momentum
Moved from a Pipe Dream to a reasonable chance
Flying their Team to Whiting in September to present a proposal
Sports Venues
Strong commitment to lease the 2nd wing if we build our museum
Expansion of Oil City Stadium to accommodate Minor League Team
Currently reviewing a proposal to include an Ice Arena to accommodate
a Minor League Hockey Team
Children’s Activity Center option
STADIUM DISTRICT PLAN
Market Based Discussion
Heavy developer interest
Financing projects in Whiting is an issue
No development history
No market data to support condo sales prices
No history to support high rents for apartments
Glut of condos in Chicago market - forcing high pre-sell %
“Village” Project demise
1500 Block 119th Street Project will hopefully open the door
Almost all developers utilize the financial markets
Could determine final product mix
STADIUM DISTRICT PLAN
Acquisition of Property
I
am well aware that acquiring someone property is
not always a welcome event
We will be compassionate and take great strides in
making sure the transaction is fair
If a property owner has been an asset to the City,
we will bend over backwards to accommodate them
Finding
new homes/apartments
Senior Building construction
Trading, etc.
STADIUM DISTRICT PLAN
Acquisition of Property
BUT………
If
a property owner has neglected their property for
decades, I will use every tool in my bag to acquire
their property at the lowest possible cost
I won’t allow bad absentee landlords or property
owners to impede our growth
NEW HOTEL CONCEPT
Moving on to controversial project #3
You have heard me talk about this in the past,
but if we want to grow and increase our tax
base, a local hotel is a critical component
As I stated in the past, such a hotel needs to fit
our community, not a hotel developer’s plan
If it’s done right, a new hotel will not only
provide a needed resource, but significantly
benefit our tax base
NEW HOTEL CONCEPT
We have been in discussions for months about
possible locations, and the optimum location
always points back to the Park
The most acceptable location in the Park is
depicted on the layout on the table
This concept is a $20M investment
The back of house operations would utilize the
back side of the park
NEW HOTEL CONCEPT
In the coming months, we will be discussing the
project with multiple developers
At this point in time, I’m supporting this
location and will work to move the project
further ahead so we could fine tune the details
Public Process
WATER & SEWER RATES
Now for controversial topic #4
To continue improving our water and sewer
infrastructure, we will need to raise additional revenue
Example:
Rates have been flat for 13 years
A new water line is needed on 119th Street between Schrage
& New York
Estimated Price Tag - $1 million
Annual Gross Water Department revenue - $550,000
Because we have made considerable operational changes
to improve our efficiency
I will request a small $3 to $5 monthly increase soon
RESIDENTIAL MATCHING GRANTS
Somewhat controversial topic #5
We’ve been flooded with calls asking why the
matching residential grants are not available
The answer is:
We
are attempting to allocate funds to resurrect the
program for ONE more round of grants
Absolutely no guarantees, but the program will
not be available any sooner than spring of
2014
RESIDENTIAL MATCHING GRANTS
Important Points
Must help a broad based portion of the community
Must focus on areas in need of development
Need a large pot to be able to distribute fairly
Poor use of Tax dollars, need special 1-time funds
Special program – cannot fund indefinitely
Commercial Investment critical to community
Will
continue limited commercial grants ~$50,000 total
Impact shared across entire community
Stirs economic development to improve tax base
Detailed Strategy available
QUIET ZONE
No Controversy here
Everyone agrees that this is a project worth pursuing
Background
3 independent railroads
80+ trains a day
Low vehicular traffic counts
No requirement for railroads to improve technology like
other communities
We have taken the necessary steps up to the point of
committing the funds
$400,000
per crossing x 6 = $2.4 million
QUIET ZONE
There is valid increased public concern
City Council has identified the project as one of
their top priorities
It all comes down to funding
Barring an unforeseen catastrophe with our
Funding Plan– this project will be funded
Even after funding is allocated, the project will
not happen overnight
MISCELLANEOUS NEWS/ISSUES
Lakefront Update
End
of September – Current Phase complete
November – INDOT Phase begins
Connecting
trails over tracks
Entry way beautification
Existing pathways redone
Event
structure – Gazebo - Formal Garden
Design
Finished
underway with completion next year
Landscaping
Spring/summer
MISCELLANEOUS NEWS/ISSUES
Lakefront Update
Whihala
Next
Dog
Parking Improvements
summer
Beach
2014
start – Late Fall – Early 2015 completion
Whihala
Late
Lighting
2014 into 2015
Administration
2015?
Building – Boat Club
MISCELLANEOUS NEWS/ISSUES
Lakefront Update
Gun
Club Restaurant
Conceptual
Drawing – Vavrek Architects
Start construction January, 2014
Completion – Fall?
Beach Parking
Reviewing
sign policy – 1 sign at each entrance
New Parking Enforcement Crew beginning next year
MISCELLANEOUS NEWS/ISSUES
Atchison Avenue Parking (St. John)
Nearing
Completion
Joint Project – City of Whiting & Parish
Increased parking – allow for new development
Dog Park
Whiting
Dog Beach – Hammond Dog Park
Little League Improvements
T-Ball
Field – by next summer?
MISCELLANEOUS NEWS/ISSUES
Indianapolis Boulevard
May
bid letting
June – November construction
Includes:
Paving,
Lighting, Turn lanes, Sidewalks, Trees, Sewer
lining, Hydrant improvement
Partnership
INDOT
with:
and Hammond
MISCELLANEOUS NEWS/ISSUES
117th Street (Cleveland to tracks)
Bond
fund dependent
Will be ready for bid this fall
Includes:
Paving,
Sidewalks, Lighting, Sewer, Water, Oliver Street
intersection improvements, Brick restoration at Park
entry, Bike Path connections
Hoping
for January letting – 2014 construction
MISCELLANEOUS NEWS/ISSUES
Parking Projects
1500
Block 119th Street
Building
construction dependent
Spring 2014?
Schrage/White
Oak/Ohio (Whiting Baptist Church)
Acquisition
Dependent
Church agreement not finalized
Spring 2014?
St. Mary’s Church discussion – School & Parking
MISCELLANEOUS NEWS/ISSUES
ADA Compliance
Sidewalk ramps – crosswalks
Goal to be 100% compliant by 2015
Playground Analysis – Upgrades
2014-2015
Illiana Hotel
City
has taken action to take ownership of the
property via the tax sale process
Stay tuned
THE END
Q&A’s
One stipulation – If you ask a question, please
let me know if you live in Whiting or in
Robertsdale