TOWN OF EASTON, MARYLAND
Bell Proposal/WMA Acquisition
April 5, 2004
Councilmember Maureen Scott-Taylor Councilmember Moonyene Jackson-Amis
The Town Attorney, Mr. Kehoe arrived at 6:08 p.m.
CONVENING
At 6:00 p.m., Mayor Willey stated that he would like to discuss two items.
1) Bell proposal for Port and West Street.
2) EMA request for bond issue through the Town.
Mayor Willey stated that EMA had been approached regarding a contribution to the town to offset the funds that the town would loose eventually in property taxes. He stated that they were not very receptive and they offered $3,500 per year for 20 years which he felt was totally unacceptable to the Town of Easton. Mayor Willey stated that Mr. Hill had contacted him regarding the bonds. Mayor Willey stated that they have agreed to $10,000 per year for 20 years which was accepted by EMA if this is acceptable to the Council.
Mayor Willey stated that the Public Hearing for this matter will be held during tonight’s regular Council meeting.
The Town Attorney, Mr. Kehoe, discussed the negotiations with EMA. He stated that the $10,000 was in part due to the intercession by Dr. David Hill.
Mr. Kehoe stated that he has the bond resolution for introduction during this evening’s regular Council meeting. He stated that there are requirements in Maryland Law that legislation fairly and accurately reflect the subject matter of the legislation. He stated that the bond resolution when passed by the council and enacted by the Mayor puts the following things in effect: it authorizes but does not require the Town to issue the bonds. He stated that the Town can withdraw and refuse to issue the bonds for any reason that is reasonable and appropriate. Mr. Kehoe stated that EMA also has the authority to call off the transaction. Mr. Kehoe stated that it also provides for payment of the administrative fee that Mayor Willey suggested and it is not documented in the bond itself but the people from EMA’s bond counsel felt that it was inappropriate to put it in the resolution but there will be a letter or agreement forthcoming. He stated that it calls for a payment of $10,000 on a semi-annual basis because that is the time-frame of the payments under the bond.
Mr. Kehoe stated that the Town is borrowing the money and passing it through to the ultimate borrower. He stated that the Town is not obligated to pay the money back and the interest paid on the bond proceeds are not subject to federal taxation so the interest rate is lower and this is done to an extremely elaborate set of federal regulations and guidelines that have been put into effect primarily for non-profit organizations to have access to long term capital loans. He discussed previous bonds.
Mayor Willey stated that this puts the Town of Easton almost at our borrowing limit for the calendar year. The Town Attorney stated that the Town has the ability to borrow $10,000,000 and we are borrowing $7,000,000. Mayor Willey stated that we may have to borrow for capital items in the budget.
Mr. Kehoe described this type of bond and stated that the taxpayers are not responsible for the repayment of this bond and the Town acts simply as a conduit.
Mr. Kehoe stated that federal law requires a public hearing which is used by the borrower to explain to the Town and the public the benefits and what EMA wants to do with the William Hill facility. He stated that this is designed so that the resolution can be acted on at the next meeting of the schedule with closing at the end of the month.
BELL PROPOSAL FOR PORT STREET
Ms. Jackson-Amis stated that she is very much opposed to the project. She stated that proposal is not what has been envisioned for the area. She discussed the rentals and stated that these projections are not reasonable and not keeping with the desire to address affordability for housing. Ms. Jackson-Amis stated that she is concerned about the impact of the Elm Street negotiations and had hopes that there would be further negotiations between the Town and the hospital regarding making the properties available for the Elm Street developers.
Mr. Ford stated that he hopes that there is some sort of way to sit down with Mr. Bell and come to some kind of compromise that accomplishes what Ms. Jackson-Amis has in mind and what he proposes to do.
Mr. Jensen stated that he is concerned with a real lack of community input especially from this ward. He discussed conversations with Mr. Ross at the Memorial Hospital. Mr. Jensen stated that he does not want to put that much rental property in that area.
The Town Attorney discussed rental figures in the Town of Easton and stated that they are quite high which he feels are driven by large rental complexes. Mr. Kehoe stated that he thinks that the county should step up and provide more rentals.
Ms. Jackson-Amis discussed extensive community discussions held at the library. She stated that at the end, it was the consensus that what was wanted was affordable home ownership which is why they want to Ms. Karen McJunkin of Elm Street.
Mr. Wendowski asked that this not be dismissed as he feels it has some positive attributes. He stated that he cannot see a four-story apartment on that corner. Mr. Wendowski stated that it will not fit in that area with the zoning. He suggested forwarding this to the Planning & Zoning Commission and tying it in with Elm Street.
Mr. Ford suggested advising Mr. Bell although some of the Council sees some merit in the proposal, there is a small area plan development for that neighborhood and until that is in place, a project of the magnitude he is proposing would be premature.
Mrs. Scott-Taylor stated that we should not mislead Mr. Bell into thinking we would ever approve a project of that magnitude. She stated that we need to convey that we are not opposed to the concept of working with him but not in the scope he is proposing at this time. She stated that we should suggest that he and Ms. McJunkin have a conversation along with Ms. Jackson-Amis and designated representatives speak to Mr. Ross then bring everything together. Mrs. Scott-Taylor stated that it is unrealistic to think that Mr. Bell will make the May deadline.
Ms. Jackson-Amis stated that she does not see the reason to forward the concept to Planning and Zoning if the Council does not think the proposal is appropriate.
The Town Attorney stated that when the Council sends things to Planning and Zoning in this context, they arrive at the Planning and Zoning Commission with the impression which may be unfounded that this is something that the Council believes is in the best interest of the town. He suggested writing Mr. Bell and expressing that a number of members of the Council have significant reservations about this project as proposed and that at this time it does not appear that there is sufficient support on the Council to proceed with it favorably. Mr. Kehoe stated that you may want to add that the Council likes the approach.
Mrs. Scott-Taylor stated that she did not want to close the door completely.
Mayor Willey stated that we need to understand is the final agreement with Elm Street and where these houses are going to go.
Mr. Jensen stated that he has spoken with Ms. McJunkin and she also wants to finalize plans for the area.
ADJOURNMENT
There being no further business upon unanimous consensus of the Council, the President of the Council adjourned the regularly scheduled meeting at 6:39 p.m.
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Town Clerk