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HomeMy WebLinkAbout02/10/1988February 10, 1988 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 4:00 p.m. on February 10, 1988. Mayor Bernard L. McKinley in the Chair. Roll Call: Dell, Fox, Angel, Buck, Wright, Budak, Brown. 91582 - Moved by Buck, seconded by Wright that the Agenda, as amended, for the Special Session on February 10, 1988, at 7:00 p.m., be accepted and approved. Motion carried. HEARING 91583 - Moved by Wright, seconded by Angel that proof of publication of notice of public hearing on request of Willard Frost and Wayne and Aniceta Claassen to rezone from "A-1" Agricultural District to "M -2,P" Planned Industrial District approximately 166 acres generally located along the south side of Newell Street and the west side of North Elk Run Road as published in the Waterloo Courier on February 4, 1988, be received and placed on file. Motion carried. 91584 - HOLD HEARING --This being the time and place of public hearing, the Mayor called for written and oral objections. Mayor McKinley announced that a letter had been received from Chad M. Liddle, Mason City, Iowa. Father George Karnik, Pastor of St. John's Catholic Church, 1701 Mulberry Street, read a prepared statement opposing the proposed rezoning of the property in question. A copy of the complete transcript is on file in the office of the Clerk/Auditor. Stanley E. Jones, 1125 South Hill Drive, Pastor of the South Hackett Road Baptist Church, spoke of the IBP plant in Denison, Iowa and that it was a superb, community minded company. He reported that there is a waiting list of people seeking employment with the company. Bill Ramsey, of Bill Ramsey Realtors, spoke in favor of the rezoning. He reported that he had worked for Armour & Company for 18 years and was familiar with the packing industry. He stated that IBP would be a good neighbor and urged the Council to vote in favor of the request as the community needs the jobs. Sister Barbara Gross, Pastoral Associate at St. John's/St. Nicholas Parishes, Waterloo and Evansdale, spoke in opposition to the request. A copy of her oral statements is available for public review in the Clerk/Auditor's Office. Gale Bonsall, 54 River Ridge Road, Cedar Falls, speaking on behalf of the Waterloo/Cedar Falls Board of Realtors, urged the Council's approval of said request. After talking to many realtors, he spoke of the favorable impact this industry would have on the housing market in the metropolitan area. As values rise and optimism increases, the ripple effect will be felt throughout the community. He also reported that a friend of his has two sons employed at the Sioux City IBP Plant and that officials there would transfer his sons back to Waterloo if a plant is constructed here. Jody Fitzpatrick, 103 Prospect Avenue, asked that the Council table action on this request to allow several questions to be answered, including: What has IBP asked for in terms of operating subsidy and what is IBP willing to offer to the City. The Mayor responded that IBP has asked for: 1) The property to be rezoned; 2) That the City sign the sewer agreement that will be later acted upon by the City Council; and 3) An industrial tax abatement. All industrial property located in the City of Waterloo is eligible for said exemption for a five year period. The Mayor explained that IBP may also be asking Hawkeye Institute of Technology for 623 monies for job training purposes. Ms. Fitzpatrick also asked what IBP would be doing in the area of arts and education and their involvement in the community. The Mayor reported that in February 10, 1988 Hearing - continued Page 2 Sioux City, IBP is the largest contributor to United Way and that they encourage payroll deduction. In Storm Lake, IBP promotes one community project per year and has contributed $5,000 to the Economic Development Organization in Storm Lake. Ms. Fitzpatrick asked on behalf of the Highland Neighborhood Association if a weight embargo would be put on Independence Avenue. The Mayor indicated that this would be addressed at a later time. John Bedard, 924 Mulberry Street, spoke in opposition to the request. He expressed a concern that older, former Rath employees have a slim chance of being hired. The Mayor explained that IBP requires a medical of all employees and that many of the line jobs at Storm Lake are occupied by younger people. Councilperson Angel responded by stating that she saw some older people working at the IBP Plant in Storm Lake. Chuck Granger, 3531 Rose Hill Terrace, spoke in favor of the request. He commended Cedar Valley, Mayors Crews and McKinley, the Waterloo and Cedar Falls Chambers of Commerce and the Waterloo and Cedar Falls City Councils for their work on this project. He stated that a positive vote on this issue would be in the best interest of the metropolitan area. Larry Winninger, 3429 Georgetown Drive, indicated that he was not involved in the real estate transaction for this property but commented that the site is perfect for IBP. The site is large enough to accommodate their needs as well as having available utilities. Lee Bader, Rural Route 2, Jesup, expressed concerns of area farmers that IBP may eventually put FDL and Farmstead Industries out of business. Leon Mosley, 99 John Street, stated that many of his neighbors need jobs and that Black Hawk and Bremer County can well supply the labor necessary for the Plant. As a member of the Waterloo Water Works Board of Trustees, he also commented that the $20,000 of additional monthly revenue that will be generated from IBP's water usage will keep water rates down. Bill Lemke, 149 Madison Avenue, spoke in support of the request. A copy of his comments is available in the Clerk/Auditor's Office for public review. Reverend George Howard, Antioch Baptist Church, spoke in support of the request and stated that the employment possibilities with IBP would take many people off the welfare rolls. Jim Higgins, 205 Prospect Avenue, spoke in support of the request. He stated that a favorable vote on this issue would send a message to the country that we do care about our citizens. With the ready and available work force in the Waterloo area, we will not need to draw upon migrants or others to fill the jobs. He also stated that the tax incentives offered to IBP are the same that many small businessman such as himself have taken advantage of. Police Chief Roger Shook addressed the issue of increased criminal activity as a result of IBP locating in communities. The first question asked was 1) What is the direct impact on police service of IBP and 2) Have crime rates increased as a result of IBP being in their communities. Chief Shook reported that Storm Lake has not experienced any problems in terms of criminal activity or calls for service. Council Bluffs and Denison both indicated nothing negative as a result of IBP. Columbus Junction reported that traffic is a problem in their community and that housing is not available, causing heavy traffic for commuters. Kathy Oberle, 710 Forest Avenue, asked if the City rezoned the property, would IBP come to Waterloo. Mayor McKinley responded that IBP is merely a prospect and that they have not committed to coming to Waterloo. She also stated that if IBP does come to our community, they will treat workers in an appropriate manner. Rio Cleigh, 657 Sheridan Road, stated that the proposed beginning wage of $6 per hour is a competitive wage. He asked why people are concerned with $16,000 a year jobs. He stated that IBP would be a good neighbor and a good prospect. February 10, 1988 Page 3 Hearing - continued Earl Rogers, 2705 McClain Drive, Cedar Falls, stated that IBP practices age discrimination and that retired Rath workers will not be put to work. Mayor McKinley stated that generally jobs of this nature call for younger people, but older workers will be used where they can. Mr. Rogers indicated that often time older workers are more reliable than younger workers. Councilperson Buck stated that the high turnover rate that IBP has experienced was due to the inadequate screening process and that hiring happened too fast. He stated that IBP now does a better job of screening prior to commencement of employment. Mitze Rekward, 3309 Inverness, spoke in support of the request. Conrad Lundberg, 2756 Fairlane, asked the Council to vote affirmatively on the rezoning request and give citizens of our community a choice in job opportunities. He also stated that small businesses would be able to enjoy a profit for a while due to the spin off effect of IBP. He stated that in speaking with a fellow Pastor in Denison, the community is glad to have IBP has an employer in the community. Irma Gossman, 204 Linden Avenue, read a newspaper article dated July 10, 1987 concerning fines levied against IBP for violation of the load weight law. Bill Gilliam, representing Warren Transport, stated that the Waterloo site was the second choice of IBP. He opposed the rezoning because other land is available in the City limits without rezoning more to industrial and that the land should be preserved for agricultural purposes. He stated that the proposed zoning is not consistent to the surrounding uses. He also stated that the job opportunities will not go to all Waterloo residents. He spoke of the high turnover rate and the thin profit margin that IBP operates on. He also stated that the plant will attract an element of people who may be undesirable to the community. Trailer courts will spring up in the community and revenues to the City will not finance the support services that additional people will need. He also spoke to the high injury rate and the failure of IBP to report all injuries to OSHA. He stated that the City's premise of IBP creating jobs in fact destroys any opportunity to attract other jobs and industry to the community. The Mayor announced a three minute recess. Mayor McKinley presented information on the vacancy rate of trailer parks in the City of Waterloo. Harry Slife, Chair of the Cedar Valley Partnership, spoke strongly in support of the request. He reiterated his resentment that we were attracting a "packing plant." He stated that this is a respectable business that provides an important product and jobs for our community. Many of our citizens cannot use high tech jobs; community leaders have a responsibility to provide job opportunities for all of our citizens. He reiterated the pay scale of workers and the increases that other IBP employees have experienced. Vonnie Jackson, 1838 Howard Avenue, and Mayor McKinley exchanged comments concerning an earlier statement of Mayor McKinley concerning the City's efforts in bringing white collar jobs versus blue collar jobs to the community. She stated that Waterloo is digging at the bottom of the barrel and that we deserve an industry like IBP. Kathy Oberle, 710 Forest, clarified an earlier comment of Mayor McKinley by stating that the Mayor had commented that it would be more likely for the City to attract white collar jobs because there are fewer and fewer blue collar jobs available anywhere in the country. She also questioned whether one of the incentives offered to IBP was a mass burn unit. Mayor McKinley reported that this was not an incentive offered. A male resident at 212 Boston Avenue stated that he was an ex -employee of IBP and had worked for them for one and a half years. He stated that they were a fair employer, but that the work was hard work. February 10, 1988 Page 4 Hearing - continued Mary Lichty, 535 West Wellington, reiterated the concern expressed of the fine levied against IBP by OSHA in the amount of $2.6 million. She also questioned why advertisements in Texas were urging Texans to come to Iowa and that "we will give you jobs." She also stated that the $6 per hour minimum wage alluded to earlier would in fact put many families in the low income bracket and that we would have two problems instead of one if IBP were to come to town. It was clarified that workers work a 48 hour week and are paid for 52 hours per week. Bob Molinario, representing Warren Transport, stated that the Council has an obligation to existing businesses in the community. Warren Transport currently provides a living for 750 families in the community and has proposed an $11 million expansion over the next three years at their North Elk Run site. They will not consider this location if IBP locates next to them. He also stated that the City in essence is saying "We won't respect your property rights" and will locate any type of industry next to current industry in town. He stated that the City of Waterloo is more than a meat packing plant town and stated that such an industry would create slums. He asked that the Council let IBP's record speak for itself and that the community will attract immigrants. The City can also expect labor problems. He also questioned whether or not this was a proper location for this type of business in terms of odors generated and traffic. He asked that the Council hear the message of the people and that they oppose the location of IBP in our community. He asked the Council to table action and not to allow IBP to come to Waterloo and dictate its desires. Councilperson Angel asked for clarification of a comment made by Mr. Molinario concerning those people who work with their hands because they don't have anything else to work with. Comments were exchanged. Bob Stevenson, City Planner, stated that the Planning, Programming and Zoning Commission had recommended approval since the Land Use Policy Plan shows this area of the community as an industrial growth area. Utilities are also available to the site. He also indicated that the projected traffic volumes if IBP and the Tannery were to locate in this area would adequately be served by the Sixth Street Extension. Wayne Natham, 548 Cloverdale Avenue, asked City staff to locate the property in question. Sister Nancy Hemasath, 321 East Eighth Street, stated that she was concerned about the types of jobs that would be brought to the community. She indicated that she feared that greater problems would be created than currently exist in the community and that we could expect a high turnover rate of workers at the Plant. John Raves, 3212 Tropic Lane, stated that the work at such a plant would be hard and stressful and questioned whether or not we would want this type of industry in our community. Councilperson Brown responded by indicating that the plant would be required to carry Workmen's Compensation, which workers would be entitled to if an injury were to occur. Ken Hutsin, 568 Sunset Road, asked that the Council postpone action on the rezoning and asked that the Council visit all IBP Plant locations. Donna Vollenweider, 2733 Fairlane Avenue, asked why IBP is not willing to appear before the Council and hear what the citizens of our community have to say. Mayor McKinley responded that the rezoning request has been placed before the Council by the owners of the property, which is not IBP. IBP is merely a prospect at this stage and has not made a commitment to locate on this site. Don Throuse, resident near the site, stated that IBP does not hire contractors from the community and that they will have their own building contractors. He also stated that the City of Waterloo has two standards in that they required the Burger King to submit a site plan and that the City is not requiring a site plan for IBP. Hugh Field, City Attorney, clarified that the Burger King February 10, 1988 Page 5 Hearing - continued rezoning was a "C-2" Commercial zoning request, which does not require a site plan. The portion that is being requested for "C -Z" zoning is now being referred back to the Planning Commission for review of the site plan. Any type of industry locating in the proposed "M -2,P" Planned Industrial District will be required to submit a site plan for review by the Planning, Programming and Zoning Commission and City Council. Joan Takin asked that the Council not threaten Warren Transport by locating IBP next to them and the 750 families that it supports. Bill Claassen, representing the applicants for the rezoning, stated that the "M -2,P" Planned Industrial District designation requires the approval of a site plan by the City Council. He also stated that this request complies with the Land Use Plan for the City and is within an industrial corridor in the community. Mayor McKinley summarized the issue by stating that the matter before the Council is to rezone said property. Any issue has its good and bad points and never is a controversial issue a simple one to solve. He also reported that he had talked to many employees on the production line to understand their true feelings. The Mayor also reported that approximately 300 Supervisors will be hired as part of the workforce. Councilperson Wright reported that a total of 34 people had spoken before the Council tonight, with 17 speaking in favor, 14 against and 3 having questions. Moved by Angel, seconded by Wright that the above comments and recommendation of approval of the Planning, Programming and Zoning Commission be received and placed on file. Motion carried. 91585 - Moved by Brown, seconded by Wright that "an Ordinance amending Ordinance No. 2479, as amended, City Zoning Ordinance, by adding Subsection No. 232 to Section 2A-7, Rezoning Certain Property", be received, placed on file, passed and considered for the first time. Prior to a vote on this motion, the following comments were heard: Councilperson Brown stated that no employer is a perfect employer including the City of Waterloo. Councilperson Wright stated that the decision has been a difficult one and that there had been lots of issues to review. All of the issues raised by the public tonight have been previously addressed by the Council and answered to her satisfaction. Councilperson Dell stated that he was disturbed by one comment that has been brought up several times during the course of the hearing that states that people that such an industry attracts are less than human. Ayes: Seven. Motion carried. 91586 - Moved by Brown, seconded by Wright that rules requiring ordinances to be considered and voted for passage at two prior meetings, be suspended and that the following ordinance be recorded as having been considered and passed for the second and third times and now placed on its final adoption. Ayes: Seven. Motion carried. February 10, 1988 Page 6 Hearing - continued 91587 - Moved by Buck, seconded by Wright that "an Ordinance amending Ordinance No. 2479, as amended, City Zoning Ordinance by adding Subsection No. 232 to Section 2A-7, Rezoning Certain Property", be adopted. Ayes: Seven. Ordinance adopted and upon approval by Mayor assigned No. 3525. DOCUMENTS 91588 - Moved by Buck, seconded by Wright that communication from City Attorney transmitting Treatment Agreement with IBP, Inc., be received, placed on file and "Resolution approving said document", be adopted and Mayor and Deputy Clerk/Auditor authorized to execute same. Ayes: Seven. Resolution adopted and upon approval by Mayor assigned No. 1988-54 91589 - Moved by Wright, seconded by Fox that the Council Special Session adjourn. Motion carried. Larry P. Burger Clerk/Auditor