December 21, 1998

The Town Council of the Town of Easton met today at 7:00 P.M. The meeting was called to order by the President, Mr. Willey with the following members present: Mr. Ford, Mr. Mayer, Mrs. Clem and Mr. Heinmuller. Also attending the meeting were the Mayor C. Eugene Butler, the Town Engineer Mr. Grunden, Chief of Police George Harvey, Town Attorney Mr. Kehoe, Captain Hobbs of Easton Police Department, Assistant Town Engineer Mr. Tim Glass and the Town Planner Mr. Hamilton.

The meeting was opened with prayer and the Pledge of Allegiance by Mr. Ford. Upon motion by Mr. Mayer, seconded by Mrs. Clem, minutes of the December 1 and December 7 meetings were approved as written.

The Chief of Police introduced the six new officers to the Town Council who just graduated from the recruit class. These included Robert Bayliss, Chris Chancelor, Tim Liberto, Tim Lewis, Tom Lawrence and Robert Hobbs, III.

Mr. Robbie Faulkner and Mr. Jimmy Prettyman were present on behalf of the Easton Volunteer Fire Department, Inc., Mr. Faulkner stated that they are working on the chief and the officers to have them present for more Town Council meetings. He discussed the Fire Marshal warnings related to packages due to the increase tension with Iraq. He discussed Christmas safety and wished the Town of Easton a Merry Christmas and a happy holiday. He discussed 51 fire calls and 21 automatic alarms, which were false.

Mr. Faulkner thanked the Mayor and Council for allowing him the honor to be Chief of the Easton Volunteer Fire Department.

Mr. Jimmy Prettyman of the Easton Volunteer Fire Department, Inc. asked the Council to act on the nomination of Mr. C.R. Chance to be the Chief of the Easton Volunteer Fire Department, Inc.

Upon motion by Mrs. Clem, seconded by Mr. Ford and carried, the appointment of Mr. Chance to Chief of the Easton Volunteer Fire Department, Inc., was approved.

Mr. Prettyman wished everyone present a Merry Christmas.

The President of the Council brought Ordinance No. 382, "AN ORDINANCE OF THE TOWN OF EASTON CLARIFYING THE SNOW EMERGENCY REGULZATIONS BY AMENDING SECTION 17-37(B)(2) AND ADDING SECTION 17-37(B)(3) TO THE TOWN CODE" to the floor.

Ordinance No. 382 was moved for passage by Mr. Mayer seconded by Mrs. Clem and carried unanimously following a roll call vote.

The President of the Council brought Resolution No. 383, "AN ORDINANCE OF THE TOWN OF EASTON ADDING ARTICLE 8 TO CHAPTER 17 OF THE EASTON TOWN CODE TO RESTRICT THE HOURS DURING WHICH COMMERCIAL REFUSE HAULERS MAY MAKE PICK-UPS OR DELIVERIES OF REFUSE CONTAINERS WITHIN THE TOWN" to the floor for a first floor. He stated that a vote would occur at the next meeting.

The President of the Council brought Ordinance No. 384, "AN ORDINANCE OF THE TOWN OF EASTON AUTHORIZING THE UNBUDGETED EXPENDITURE OF FUNDS TO CONTRIBUTE AN EMPLOYER MATCH TO THE TOWN OF EASTON SECTION 457 PLAN" to the floor for a first reading.

A letter was received from Ms. Marie L. Bradley requesting permission for a parade on December 4, 1999. Upon motion by Mr. Mayer, seconded by Mr. Ford, the permission was granted.

Invoices in the amount of $1,108,592.07 were moved for passage by Mr. Mayer, seconded by Mr. Ford and carried.

A memo was received from Mr. Glass requesting permission to purchase a four-door sedan. The President of the Council questioned whether this was budgeted. Mr. Glass stated that it was. It was included in the budget transfer Resolution No. 5641. Mr. Glass discussed the bids. Mr. Mayer noted that the local bidder this time was not the lowest.

There being no further discussion, upon motion by Mr. Mayer, seconded by Mr. Ford, permission was granted to purchase the sedan.

The President of the Council stated that a meeting was needed with the auditors to discuss the fiscal year audit results and that needed to be scheduled. The meeting was set for Monday, January 11, 1999 at 6:00 P.M.

At 7:15 P.M., the President of the Council opened the Public Hearing on the request of Rita S. Petitt for a Planned redevelopment (PR) Overlay District project for properties located on Blake Street.

The Town Planner displayed an overhead and discussed the location. He discussed the PRD on the west side of Town, which was similar. He also discussed the current PRD request. He discussed how the property is currently situated and improved. He discussed the proposal to add structures. He stated that he believes that the applicant would like to use the PR to create a subdivision. He displayed the plan proposed. He discussed the current zoning minimum lot sizes. He stated that the purpose is to convert rental properties to owner-occupied properties. He stated that the Planning and Zoning Commission reviewed this matter a few times and has forwarded a recommendation of approval. He stated that the staff had been opposed to this PR and stated that there was no guarantee that any lot will become owner-occupied. He stated that the Town cannot prevent sale and subsequent rental as proposed. He discussed the non-conforming uses currently.

Mrs. Clem questioned whether this could be created with language to create these properties as owner-occupied. The Town Planner stated that the Town Attorney advised him that possibly a covenant could be used.

The Town Attorney stated that covenants could possibly be created but this would make financing somewhat more difficult due to the foreclosure and auction problems. He discussed this.

Mr. Heinmuller discussed the Habitat property near Brookletts Avenue. He questioned whether the size of those lots was similar to the size of these lots. The Town Planner stated that they were. He stated that Habitat has contractual documents showing owner-occupied in those cases.

The Town Planner discussed other memos with comments from the Town staff and asked that they be read into the record. The Town Planner discussed the letter from the Planning and Zoning Commission recommending approval three to one. The Town Planner discussed the Town Engineer’s comments from his memo and the Town Clerk’s comments from his memo. He discussed the fact that Planning and Zoning may re-look at this matter if it is approved. He discussed on-street and off-street spaces proposed. He discussed the maintenance and the cost of the gravel drive. He also discussed concerns raised by the Chief of the Fire Department, Mr. Faulkner, that the gravel alley should be paved if it was approved. The Town Planner stated that the Town Attorney’s comments were the same as previously discussed.

Mr. Perry Otwell representing Ms. Petitt on the project stated that he believes this project is ideal for the PR and he thinks that it meets the requirements. He discussed two houses being removed which did not meet Code. He discussed the street trees and landscaping which they proposed consisting of one tree and two shrubs per lot. He discussed the twelve parking spaces proposed which will be part of the laundromat and will be maintained by the laundromat. Mr. Otwell stated that Tull Alley was not a problem before and he did not see how it could be a problem now. Mr. Otwell discussed the maintenance as one or two option/solutions. He stated that the first could be to include the open space with covenants with the adjoining property which all would be required to maintain or the second would be to create a condominium association which he wished to avoid. He stated that this whole property will be used by all and they will want to maintain it.

Mr. Otwell stated that he felt it was unfair to restrict to owner occupied with deed restrictions. He discussed upgrade due to owner occupied properties. He stated that he believes this is a good project and in order to get the pricing, they can’t improve the properties out of reach of people who currently live there who would like to purchase the properties.

The President of the Council questioned whether there was a preference for current occupants. Mr. Otwell stated that he preferred Ms. Petitt to answer to that question. He stated that he is the engineer for the project.

Mr. Mayer discussed the 32-ft. wide street with parking restrictions. Mr. Otwell discussed the parking, which would be available. Mr. Mayer questioned where the new houses would appear. Mr. Otwell stated that he thought it would be in lot 7, 12 and 13. Mr. Mayer questioned the sidewalk repairs. Mr. Otwell stated that there is more existing but it is primarily in good shape. He discussed the cost of repairs driving up the home prices.

Mrs. Clem stated that she was pleased when she saw the plans since it shows an effort to upgrade an area. She would like to see the properties restricted to homeownership and discussed that.

Mr. Mayer discussed the rental housing inspection program and the benefits of that program. He stated that he would like homeownership.

Mr. Ford questioned how many lots there are now. Mr. Otwell stated that the property is currently divided into three lots. Mr. Ford agreed with comments on the memo regarding the PRD and the Ordinance simply creating a subdivision only to facilitate selling. He did not see any reason why the Town should bend the spirit of the Zoning Ordnance without a guarantee of homeownership.

Mr. Otwell stated that he did not think that Ms. Petitt was against the ownership aspect. He discussed costs associated with the project driving up the price.

Ms. Petitt was present and stated that there was no problem putting something in the deed to cause owner-occupied properties. She stated that she has talked to lenders and the restriction could extend up to seven years.

Mrs. Clem felt that the long-term gain for the Town was far greater with the owner occupied provisions.

Ms. Petitt emphasized that two parcels total 1.2 acres. She stated that these have been rentals since the early 50’s and that she had acquired them in 1980’s from her family. She stated that up to seven tenants are interested presently in buying their property.

Mrs. Clem questioned the cost proposed. Ms. Petitt stated that the target is $58,000 to $62,000. She discussed the two to three bedrooms and meetings with HUD representatives. She stated that her goal is home ownership.

Mr. Heinmuller questioned the ten spaces near the commercial property. Mr. Otwell stated that those spaces are for the laundromat.

Mr. Heinmuller discussed a meeting previously with Mr. Dills where subject was raised with pavement and holes with grass allowed to grow through and questioned whether they would be willing to put that in for the Fire Department. Mr. Otwell stated that he saw no reason to upgrade except for the width and the property cannot get wider than it is currently.

Mr. Mayer questioned the reason why the alley is not paved. The Town Engineer stated that he understands that does belong to the Town of Easton but that it has never been improved.

Mr. Heinmuller discussed purchasing land with Town funds in the east-end and selling at a loss. He asked the Council to think about the R7 (A) alternative and the economic feasibility.

The President of the Council stated that he liked targeting the people who are currently there to be the owners.

The Town Attorney suggested that it would be wise to continue the hearing until the applicant can come up with a specific plan with covenants, etc., and that other options might be available.

Mr. Mayer stated that the only negative that he saw was the open area and the upkeep concerns.

Mrs. Clem stated that the landscape specifications are vague and she would like something giving a better idea.

Ms. Petitt discussed recent plantings in the last two months.

The President of the Council stated that the Public Hearing would be continued. He asked for audience comments.

Mr. Bill Banks stated that he is on the Traffic and Parking Commission and they were not able to make the proposal on making Pleasant Alley one-way due to the scheduling.

Mr. Farberman stated that he liked what he heard tonight.

The President of the Council stated that the Public Hearing was completed for this evening and would be continued. This occurred at 7:53 P.M.

Mr. Mark Walsh was present on behalf of Talbot County Tourism Task Force to discuss their proposal. He stated that a draft plan had been provided to the Council for their packet. He stated that tourism is a powerhouse in the county and that those in the industry had asked the county to look at the development of a plan. He discussed the list of members on page two. He stated that they are seeking two things. One is input on the plan. He discussed meetings subsequently which would be held to discuss the plan and second, they are also asking for conceptual support to embrace the plan for when the plan is presented to the County Council. Mr. Walsh discussed the plan for the DMO, which would be called TC². He discussed the board, which is proposed and included in Exhibit 5. He discussed the plan focus. He discussed the plan highlights and maintenance of the quality of life issues. He stated that TC² was a not-for-profit board. He stated that currently two committees are envisioned. One is financing and second is marketing. He discussed the audits which are planned. He discussed the financing from the county; in addition, funding from the increased Accommodation Tax as described on pages 27 to 31. He stated that he hoped that Easton will be supportive of the model adopted by the county. He discussed objectives.

Mr. Walsh asked for input and support to go to the County Council.

The President of the Council thanked Mr. Walsh and asked for Council comments.

Mr. Ford stated that when it was time to prepare the Town of Easton budget, should the Town expect to be faced with more than one entity asking for funding for economic development marking along these lines.

Mr. Walsh stated that the County Council will select the DMO and that there can only be one DMO under the state rules. He believed that the Council will see EBMA, Main Street as well as this proposal included as tourism requested dollars. He stated that they will work hard to avoid overlap. He discussed pulling together resources and being sensitive to issues.

Mr. Ford questioned when Mr. Walsh anticipated the County would designate the DMO. Mr. Walsh stated that he hopes for January or February.

The President of the Council questioned how the regional application center at the community center ties in with this proposal. Mr. Walsh stated that if the building goes forward, they had looked at locating there. He stated that he did not want to have this matter fall under Mr. Hayes but they wanted to be attached with Mr. Hayes. He envisioned the center being opened seven days for tourism and stated that he had learned a lot in the process and hoped that this will be better than previous efforts.

The President of the Council discussed current Town of Easton projects for tourism and discussed coordination issues.

Mr. Walsh stated that they have a desire to work with the Welcome Center and EBMA. He stated that he believes that the timing is right. He stated that TC^{2 is} strictly tourism and he discussed representatives on the board from the Town Council.

The President of the Council stated that he thought that the Council would be interested in being a part of that board.

Mr. Walsh discussed a breakdown from the Town Clerk of the current revenue expenditures related to the Hotel/Motel Tax. He stated that it was enlightening for the Task Force to see how fast the money is gobbled up. He stated that the funding proposed is not going to come from the currently allocated money. He discussed the tracking of dollars proposed under the new proposal.

Mr. Mayer questioned how the Chamber of Commerce sees this proposal. Mr. Walsh stated that he believes that they will be in competition. He discussed their participation in the process until the DMO vote.

Mrs. Clem stated that globally, this is important for people not to loose their place at the table and that everyone needs to be open to listening to everyone else.

Mr. Heinmuller stated that he has read the notes, which he stated, were informative and he appreciated their inclusion. He stated that they had done an excellent job of putting together information and offered congratulations.

Mr. Walsh discussed the attendance by Mrs. Clem, the Mayor and Mr. Warfield.

The President of the Council asked to the Council’s consensus, not to bless until the final approval had been made by the County but if it appeared to be in the correct direction. The Mayor discussed budget concern if the support was granted. The President of the Council emphasized the need for a final product before any hard support by the Town Council. Mr. Walsh stated that he hopes that the plan has a funding mechanism. He discussed a desire for Oxford and St. Michaels to participate in the funding. He discussed sharing effort where the Hotel/Motel Tax is generated. He discussed how the process started. He offered this thanks.

Mr. Farberman commended the Council for meeting with the County Council and other municipalities and whatever happens to one entity affects all.

Mr. George Beer of Gilman Development Company was present with Mr. Brett Brosseit and Norman Wilson, Esq. Mr. Beer discussed his previous presentation before the Council and the need for a Town resolution of support in order for his company to be granted State of Maryland funding for a portion of the project. Mr. Beer discussed at great length the background of the project and what he was looking for.

Mrs. Clem stated that a few months ago, this matter was tabled and questioned Mr. Beer on occupancy rates in other areas within the Town.

Mr. Beers stated that Maryland requires outside consultants to perform this work rather than the interested party.

Mrs. Clem asked the current status of Cross Court, Londonderry and Talbot Villages occupancy. Mr. Beer reported that the consultant had provided them and that as of August 31, the Greens had a 3% vacancy on one bedroom, 0% vacancy on two bedrooms, Cannery Square had 3% vacancy on one bedroom and 0% vacancy on two bedroom. Mulberry Hill Apartments had no vacancy according to Mr. Beer, Quail Meadows had 0% vacancy and he offered copies to the Town Council. Mrs. Clem questioned whether the 99 units proposed, would be a complete build out. Mr. Beer stated that he believed that the demand is so strong here that this would occur over a year or two. He stated that he thought that 99 units is a reasonable size.

Mr. Heinmuller questioned the visual presented by Mr. Beer and the number of units for people that would depict. Mr. Beer stated that what he handed out tonight displays what twelve people would be living in.

The Town Attorney stated that the resolution is not in the Town of Easton form and it would require the Mayor’s approval before it would be effective. He stated that it also seeks to bind the Easton Utilities Commission and discussed that aspect. The Town Attorney stated that two issues are present. The first is the DHCD subsidy, which is required for a loan, and he felt strongly that any communication should come from the Town. The Town Attorney stated that the real issue is support by the local legislative body to the State. He discussed the reasons that the support is needed. He discussed issues raised by Mr. Beer previously in recent workshops. He discussed the deferral of payments being up to the Easton Utilities Commission. He discussed the prior language proposed as being preferable.

The President of the Council questioned whether the Town could support this and then withdraw later if they do not like what is occurring. The Town Attorney stated that this will not affect the DHCD deal once the money is lent. Mr. Beer discussed several steps left in the process. The Town Engineer stated that the Town Attorney had summarized his concerns nicely.

Mr. Beer suggested a resolution of support and a separate arrangement with the Easton Utilities Commission.

Mrs. Clem stated that she sees this as still where it was several months ago. She stated that she is not opposed to the project but she does not know if now is the time that rental housing is needed in Easton. Mr. Beer stated that his company is getting ready to make a seven million-dollar investment in the Town and they would not make that lightly. He recited the efforts previously discussed.

Mrs. Clem stated that she would like to see things built out before moving on with this project.

Mr. Ford stated that he thinks that the Town can be a strong proponent of owner/occupied without being a proponent of rental properties. He discussed letters of support received previously. He discussed the testimony of quality development by this company. He discussed wrestling the rate of growth and the quantity of quality of growth. He thinks that the developer has a record of accomplishment. Mr. Ford believes this is a good project and has received the support of Planning and Zoning.

Mr. Mayer stated that his concern was the longevity of ownership and questioned Mr. Beer on the promises made to the state. Mr. Beer stated that commitments have been made and guarantees to the state that his company will be here for a minimum of 41 years on this project. Mr. Mayer questioned the limitations before a sale is allowed. Mr. Beer stated that it was 41 or 42 years. Mr. Mayer questioned what stops a similar company from buying this project in seven years. The Town Attorney stated that he thinks that the answer is that Mr. Beer could sell this property with the consent of the state at some point. Mr. Beer discussed the state’s stranglehold which is put on the profits due to the profit share agreement under their financing programs. He discussed programs around the country.

Mr. Heinmuller stated that he like Mr. Ford and Mrs. Clem is wrestling with the growth concepts and the ancillary costs. He discussed an additional 400 people being put in a very small area and that adds to the need for police protection with additional burden on the taxpayers in Easton. Mr. Beer discussed traffic and utilization in the vicinity. He discussed the 26 ½ acre site. He discussed the impacts on the schools.

The President of the Council asked for a motion to approve or disapprove the request.

The Mayor stated that he believes that the Town would be better off with home ownership rather than rentals. He discussed the earlier effort tonight for homeownership and the preference.

Upon motion by Mr. Mayer, seconded by Mr. Ford, support was approved pending re-writing of the resolution into appropriate Town form with Mrs. Clem and Mr. Heinmuller voting no.

The President of the Council thanked the staff and the Commissions for various work over the year. He thanked the Council for their efforts and he thanked the citizens for attending and participating in the meetings. He wished everyone a good holiday and a happy New Year.

The Mayor wished everyone a Merry Christmas and a happy and prosperous New Year. He thanked everyone involved.

The Chief wished everyone the best of holidays and advised of the toy drive efforts.

The Town Engineer deferred to the Town Planner.

The Town Planner discussed the previous meeting tabling Cooke’s Hope. He stated that there is a minor adjustment and at the Planning and Zoning Commission, this matter had been approved. He stated that the Council could affirm that or hold a public hearing.

Mr. Bill Stagg was present and discussed the minor changes to the PUD area in order to correct the accuracy. He discussed the plan in detail. He stated that the Planning Commission has supported this.

The Mayor questioned how many townhouses would be placed. Mr. Stagg stated that he thought there would be 40 or 42 on this. He stated that any change would require going back to the Planning Commission and the Council for approval. The Mayor questioned the facing material. Mr. Stagg stated that they are leaning currently to brick.

Mr. Mayer discussed the tie-in to the existing development. He stated that he could allow this to go forward and work out the additional actions later. The Town Planner stated that this could be affirmed tonight or the Council could schedule a public hearing.

Mrs. Clem stated that the Town has made great efforts to allow people to speak and that a public hearing would give that opportunity.

Mr. Heinmuller discussed the substance of the change. The Town Planner stated that he thought that a major portion of the change is that there are townhouses instead of single family homes.

Mrs. Clem stated again that she felt that the public should have the opportunity to comment.

Mr. Mayer supported the roads as proposed.

Mrs. Clem made a motion to hold a public hearing on this matter, seconded by Mr. Ford and carried.

The President of the Council scheduled the Cooke’s Hope PUD Amendment Public Hearing for Monday, February 1 at 7:15 P.M.

The Town Engineer stated that he appreciated action on Ordinance No. 382 and suggested that an ad be placed in the paper with the routes which would be snow emergency routes. Mr. Grunden discussed the snow article and stated that everything in that article has already been done by the Town of Easton. He discussed the Easton OnLine being up and running and stated that they have 200 customers now. He stated that he hopes that the customer base grows quickly. Mr. Grunden wished everyone a safe and prosperous holiday.

Mrs. Clem referred to Mr. Mufson’s previous comments to the Council about a four-way stop and questioned the recommendations. The President of the Council stated that this matter was referred to the Police Board.

The Town Attorney wished everyone the best of the season and thanked the Council and the town staff for their help and assistance during the year.

The Town Attorney stated he had two items for Executive Session. One item concerned litigation and one concerned economic development.

The President of the Council asked for audience comments.

Ms. Carolyn Jaffe discussed the First Night program and invited everyone. She discussed the events proposed.

The President of the Council stated that he had been informed that the Mayor of Federalsburg had passed away and asked that flowers be sent from the Town of Easton. He stated that the audit release would be held until the meeting with the auditors.

Mr. Ford wished everyone best wishes for happy holiday and New Year.

Mr. Mayer discussed thanks to all for making Easton a great Town. He wished everyone a Merry Christmas and a happy and prosperous New Year.

Mrs. Clem wished everyone a merry Christmas and a happy New Year.

Mr. Heinmuller stated that everything had been said. He wished everyone a merry Christmas and a happy New Year. He discussed First Night Talbot’s activities scheduled.

The President of the Council asked for a motion to go into Executive Session which was made by Mrs. Clem. The Council went into Executive Session at 9:24 P.M. following a roll call vote. The President of the Council stated that the Executive Session would actually begin at 9:30 P.M.

The Executive Session was closed at 9:42 P.M.

There being no further business, the President of the Council declared the meeting adjourned at 9:42 P.M.

Town Clerk