HomeMy WebLinkAbout01/20/1998January 20, 1998
The Council of the City of Waterloo, Iowa, met in Regular Session at City Hall Council
Chambers, Waterloo, Iowa, at 7:00 p.m., on Tuesday, January 20, 1998. Mayor John R. Rooff
in the Chair. Roll Call: Getty, Murphy, Jordan, Anders, Krizek, Mollenhoff. Absent:
Collier
Invocation by: Reverend Wilson Ridout, Payne AME Memorial Church
Pledge of Allegiance: Councilperson Harold Getty
109645 - Mollenhoff/Jordan
that the Agenda, as proposed, for the Regular Session on Tuesday, January 20, 1998,
at 7:00 p.m., be accepted and approved. Ayes: Six. Absent: Collier. Motion
carried.
109646 - Jordan/Murphy
that the Minutes, as proposed, for the Regular Session on Monday, January 12, 1998,
at 7:00 p.m., be accepted and approved. Ayes: Six. Absent: Collier. Motion
carried.
Mayor Rooff read a Proclamation declaring January 25-31, 1998 as Catholic Schools
Week.
HEARINGS
109647 - Murphy/Mollenhoff
that proof of publication of notice of public hearing on the proposed Development
Agreement with Waterloo Industries to acquire property in Downtown Urban
Redevelopment Area for international headquarters, as published in the Waterloo
Courier on January 12, 1998, be received and placed on file. Ayes: Six. Absent:
Collier. Motion carried.
109648 - This being the time and place of public hearing, the Mayor called for written and
oral objections.
Mayor Rooff clarified what has transpired regarding Waterloo Industries. In April
1995 Waterloo Industries informed this administration that they were contemplating
closing the plant. The city offered Waterloo Industries incentives to keep the
plant here in Waterloo. A CEBA grant in the amount of $1 million was offered to
Waterloo Industries. In 1995 the city negotiated with Waterloo Industries to build
a new plant. We offered tax abatement of $450,000, a $1 million CERA grant and
$250,000 federal funds. In early 1996 we offered Waterloo Industries free land for
a new building, $3.4 million in tax abatement, $180,000 in sales tax refunds if they
would hire 50 more people, incentives provided by the state. The administration
worked with Russ Woodrick, regional representative for the International Association
of Machinists. In 1996 the city was informed the decision was made to close the
plant, and the city asked what was going to happen to the corporate headquarters and
discussions began on saving 130 jobs. When the Legislature passed the Enterprise
Zone, Waterloo Industries was informed if they moved to the downtown, they would
meet the requirements of the Enterprise Zone.
The following are the incentives being offered to Waterloo Industries: $150,000 for
environmental cleanup on the construction site, $35,000 for soil testing on the
site, $414,000 loan through the Community Economic Betterment Account. Half of the
CEBA loan does not have to be repaid, while half will be at zero interest
Mayor Rooff stated that deeding the East 5th Street ramp to Waterloo Industries is
only an option at this point. The city is operating the ramp at an annual loss.
We receive an annual income of approximately $26,000 from monthly parkers, and it
costs over $6,000 in administrative costs. The monthly parkers are guaranteed a
spot in the ramp for the next ten years. After ten years, we would get
approximately $75,000 per year. The ramp is a separate issue. On the financial
side the city would receive a 19.5 percent rate of return. Mayor Rooff stated that
this is not only a financial issue but also a moral issue.
Russ Redman stated that this is a moral issue. Should we offer incentives, should
we help 130 employees. Good people lost their jobs. This is an emotional as well
as an economic issue.
Russ Woodrick, Regional Business representative for the International Association
of Machinists, stated that Waterloo Industries has been offered $1 million in tax
rebatement. Mr. Woodrick stated that Martin Luther King Jr. told us that we should
ask Congress to act in a moral way. Anything can be justified economically.
Waterloo Industries asked their employees to take a 50 percent cut in pay and
benefits or the plant would be moved. The employees asked Waterloo Industries if
they took a 50 percent cut in wages would they guarantee the jobs for ten years and
Waterloo Industries answered no jobs would be guaranteed. Mr. Woodrick stated that
300 families are affected by the plant closing, and many are too young to retire or
too old to get jobs. Waterloo Industries came to the city asking for money to stay
in Waterloo. Mr. Woodrick stated that he feels that Waterloo Industries is not a
good corporate citizen. Mr. Woodrick stated that Waterloo Industries has lied to
the community. He feels Waterloo Industries has money and the ability to pay to
move downtown.
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January 20, 1998 Page 3
Hearings - continued
Jim Higgins, 3507 Augusta Circle, stated that he is in favor of passing this
agreement. He believes we would be punishing the 130 people by not passing the
agreement. Mr. Higgins encouraged the council to approve the agreement because he
feels as a businessman in Waterloo, we need diversity. Mr. Higgins stated that he
feels sorry for the 300 families, but the city needs to move forward. Mr. Higgins
believes we are not giving Waterloo Industries anything we would not offer any other
business. Mr. Higgins encouraged the council to vote yes on this issue.
Cheryl Swanson, 210 Rosebud, stated that she believes in Waterloo and shops locally.
Ms. Swanson is tired of reading about these give-aways. She questioned how this
project will bring more people downtown. Ms. Swanson supports downtown businesses,
but does not like her taxes going to this company. She questioned why we keep
giving away millions of dollars. Ms. Swanson questioned how this building will
attract more people. Taxes are already being paid on the building. Everyone is
very unhappy that the money is being given away and only generating 13 new jobs.
She feels enough is enough, let them invest their own money.
Ernie Boykin, P.O. Box 1438, stated that she feels for both sides. We want
development in Waterloo, but unfortunately in this case some have had to suffer.
Ms. Boykin can understand their passion because they have lost their jobs, and she
understand the city's desire to move this business to the downtown as an anchor Ms.
Boykin hopes that once this is all over, the same passion will continue to work
together for Waterloo.
Gary Papenheim, 8110 Buckridge Road, stated that a layoff is horrifying to families.
This project will displace a few businesses already located in the downtown. Mr.
Papenheim questioned if the city is going to keep shoving businesses out to make
room for corporate America. He questioned all the breaks for this company which has
already screwed the city. Mr. Pappenheim asked the council to please consider all
the issues.
Bob Dickson, owner of Sub City, stated that he believes in preservation. In 1987
he relocated to the downtown when no one else would, and he has the best location
in the downtown. Five years ago Robin Surplus had to move to their current location
because of another project. He believes the empty building is one of the best
buildings in the downtown. Mr. Dickson stated that he wants to do what is right but
he would like the city to meet his condition of relocating Sub City in the 100 block
of East 4th Street and to pay him what the property is worth. Mr. Dickson stated
that he will work with Waterloo Industries and the city. He would really like to
save these buildings.
Gene Redmon, 346 Clough Street, stated that he supports the facts from the opposing
side. Mr. Redmon supports economic development when it is done in the proper way.
Companies get tax breaks in other states and this community. Mr. Redmon wants to
keep 130 jobs here. It's wrong to pit worker against worker, cities against cities.
Mr. Redmon stated that if business owners and the council support this agreement,
he will be looking for a different mayor and council.
Jim Walker, 440 Kingbard, stated that the WRA has spent thousands of dollars to
renovate the downtown without a great deal of success. No one favors losing 300
jobs, but we need to realize thatwhat we are doing is better for Waterloo. Mr.
Walker feels that we must have a positive attitude. This is one of the most
important opportunities in the downtown in quite some time. It comes at the expense
of the 300 jobs, but we cannot do anything about that now. This is a very
competitive world today.
David Rapp, 1539 Oriole Avenue, worked 10 years at Waterloo Industries. He asked
what about our schools. He does not support giving tax abatement. Mr. Rapp
understands that the city wants to keep the downtown alive, but he does not think
it is right to give Waterloo Industries money.
David Roth, 405 East 5th Street, stated that this is one of the most important
things that has happened in the downtown. We know what the impact will be on the
downtown but it will also help the schools and the rest of the community. There
will be more people eating at the restaurants, executives staying at the hotels and
significantly impact the downtown. Everything possible was done to try to keep the
300 jobs here. Mr. Roth stated that communities of this size have to provide
substantial incentives to attract and retain businesses. Other communities would
have done far more.
Mary Lichty, 535 Wellington, asked the council if it were their money would they
take the chance they are taking.
Richard Conley, 702 Riehl, asked the council to vote against the agreement because
of how they treated their former workers.
Jim Christiansen, 389 Sheridan Road, stated that we must do what is best for the
most people. We can't let special interest rule the city. You must look at all the
facts and no decision will satisfy all. If you are going to provide more jobs, more
tax dollars, provide economic growth, we need to do what is best not only for the
downtown but the city.
Councilperson Krizek supports the agreement because it will spark interest and
revitalize the downtown and give our merchants downtown a broader base. The ramp
is not the issue.
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Documents - continued
109655 - Anders/Jordan
Page 5
that communication from Associate Engineer transmitting Supplemental Agreement No.
13 with Rust Environment & Infrastructure for professional services which will
provide the necessary hydrology and hydraulic information to Federal Emergency
Management Agency (FEMA) in conjunction with Martin Luther King Jr. Drive project,
be received, placed on file and "Resolution approving said agreement', be adopted
and Mayor authorized to execute the same. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-22.
109656 - Anders/Jordan
that communication from Associate Engineer transmitting three separate crossing
agreements with Chicago Central and Pacific Railroad Company to construct and
maintain a 36' gravity sanitary sewer for construction of the Northwest Interceptor
Sewer, be received, placed on file and "Resolution approving said agreement', be
adopted and Mayor authorized to execute the same. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-23.
RESOLUTIONS TO BE ADOPTED
109657 - Anders/Jordan
that "Resolution setting date of hearing as February 2, 1998 at 7:00 p.m. in the
City Hall Council Chambers on the Development Agreement with Richard and Linda
Johnson (also known as Wheeler's Auto Body Supply) to acquire property in the
Downtown urban Redevelopment Area to build 15,000 square -foot facility to provide
for Waterloo Industries model shop', be adopted and City Clerk instructed to publish
notice of same. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-24.
109658 - Anders/Jordan
that "Resolution approving Residential Parking Program for Persons with Disabilities
Policy', be adopted. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-25.
ORDINANCES TO BE ADOPTED
109659 - Murphy/Krizek
that 'an Ordinance amending the 1996 Traffic Code by adding Subsection (89a) Logan
Avenue access road to Section 543, Thru Streets; and repealing Subsection (7) Fifth
Street (W) of Section 549, Loading Zones; and enacting in lieu thereof a new
Subsection (7) Fifth Street (W) to Section 549, Loading Zones; and repealing
Subsection (278) Ninth Street (W) of Section 551, Parking Prohibited at all Time on
Certain Streets; and enacting in lieu thereof a new Subsection (278) Ninth Street
(W) of Section 551, Parking Prohibited at all Times on Certain Streets; and
repealing Subsection (86) Riehl Street of Section 553, No Parking Here to Corner;
and enacting in lieu there of a new Subsection (86) Riehl Street of Section 553, No
Parking Here to Corner; and adding Subsection (5) Ravenwood Road to Section 554, No
Parking Here to Drive (install stop signs on Logan Avenue access road at entrance
to Logan Plaza, install loading zone at 510 W. 5h Street, remove parking on east
side of W. 9th Street from Commercial to J.R. Drive, install No Parking Here to
Corner on Riehl at Ashland, and install No Parking Here to Corner at cul de sac on
Ravenwood Road)', be received, placed on file, considered and passed for the first
time. Ayes: Six. Absent: Collier. Motion carried.
109660 - Krizek/Jordan
that rules requiring ordinances to be considered and voted for passage at two prior
meetings be suspended. Ayes. Six. Absent: Collier. Motion carried.
109661 - Jordan/Krizek
that "an Ordinance amending the 1996 Traffic Code by adding Subsection (89a) Logan
Avenue access road to Section 543, Thru Streets; and repealing Subsection (7) Fifth
Street (W) of Section 549, Loading Zones; and enacting in lieu thereof a new
Subsection (7) Fifth Street (W) to Section 549, Loading Zones; and repealing
Subsection (278) Ninth Street (W) of Section 551, Parking Prohibited at all Time on
Certain Streets; and enacting in lieu thereof a new Subsection (278) Ninth Street
(W) of Section 551, Parking Prohibited at all Times on Certain Streets; and
repealing Subsection (86) Riehl Street of Section 553, No Parking Here to Corner;
and enacting in lieu there of a new Subsection (86) Riehl Street of Section 553, No
Parking Here to Corner; and adding Subsection (5) Ravenwood Road to Section 554, No
Parking Here to Drive (install stop signs on Logan Avenue access road at entrance
to Logan Plaza, install loading zone at 510 W. 5th Street, remove parking on east
side of W. 9th Street from Commercial to J.R. Drive, install No Parking Here to
Corner on Riehl at Ashland, and install No Parking Here to Corner at cul de sac on
Ravenwood Road)', be received, placed on file, considered and passed for the second
and third times and adopted. Ayes: Six. Absent: Collier.
Ordinance adopted and upon approval by Mayor assigned No. 4274.
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January 20, 1998 Page 7
New Business - continued
109673 - Murphy/Jordan
that "Resolution setting date of hearing on request for proposal, form of contract,
etc. and taking of bids as February 2, 1998 at 7:00 p.m. lin the City Hall Council
Chambers on the above described project", be adopted and City Clerk instructed to
publish notice of same. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-28.
109674 - Jordan/Anders
to instruct Superintendent of Sanitation and Recycling to prepare request for
proposal, form of contract, etc. in conjunction with Drop Off/Collection for Recycle
Program, be received, placed on file, and approved. Ayes: Six. Absent: Collier.
Motion carried.
109675 - Krizek/Anders
that request for proposal, form of contract, etc. in conjunction with Drop
Off/Collection for Recycle Program, be received and placed on file. Ayes: Six.
Absent: Collier. Motion carried.
109676 - Getty/Jordan
that 'Resolution preliminarily approving request for proposal, form of contract,
etc. in conjunction with above described project', be adopted. Ayes: Six. Absent:
Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-29.
109677 - Mollenhoff/Krizek
that "Resolution setting date of hearing on request for proposal, form of contract,
etc. and taking of bids as February 2, 1998 at 7:00 p.m. in the City Hall Council
Chambers on the above described project', be adopted and City Clerk instructed to
publish notice of same. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-30.
109678 - Krizek/Murphy
that communication from Fire Chief transmitting proposal from 3M Company in
conjunction with Traffic Signal Pre-Emption System, be received, placed on file, and
"Resolution approving said proposal", be adopted. Ayes: Six. Absent: Collier.
Resolution adopted and upon approval by Mayor assigned No. 1998-31.
TRAVEL REQUESTS
109679 - Anders/Krizek
that the following travel requests, with expenses not to exceed amount shown, be
received, placed on file and approved:
1. John Beckman, Police Sergeant, to attend Managing High Risk Incident School
(Tactical Police) in Columbus, Nebraska, on February 23-25, 1998 with costs not
to exceed $700.00 including use of city vehicle.
2. Doug Eldridge and Stan Buhrmaster, Maintenance Electricians, to attend Technical
Seminars for the design, construction, operation and maintenance of traffic
signals in Spencer, Iowa, on March 11-12, 1998 with costs not to exceed $175.00
per person including use of city vehicle.
Ayes: Six. Absent: Collier. Motion carried.
MISCELLANEOUS
109680 - Getty/Murphy
that the following applications for Recycling Yard License be received, placed on
file and approved and the following beer and liquor license permit applications be
received, placed on file and approved and endorsed applications forwarded to the
Iowa Beer and Liquor Control Department:
1. Beer License Application
Class C
Downtown Amoco, 428 Franklin Street, (New) (Expires 1/26/99) (Includes Sunday
Sales).
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COUNCIL WORK SESSION
January 20, 1998
5:45 p.m.
Large Conference Room
Members present: Anders, Murphy, Getty, Jordan, Anders, Krizek.
Members absent: Collier, Mollenhoff.
Moved by Getty, seconded by Jordan that the Agenda, as proposed, be
approved. Ayes: Five. Absent: Collier, Mollenhoff. Motion
carried.
The City Planner updated the council on the proposed Welcome to
Waterloo signs. The proposed sites for the signs are as follows:
U.S. 218 off of I-380, Highway 20E, Highway 20W, Highway 63N,
Highway 63S, Highway 218N, and Highway 215. It is estimated it
will cost $30,000 for an 8' x 48' sign and $10,000 to $15,000 for
an 8' x 20' sign. It is proposed that the signs have the Waterloo
logo and perhaps the name of the organization that donates funds
for the sign. Limestone is the material being proposed for the
signs. An application for Hotel/Motel tax funds has been
submitted, and funds are being solicited from businesses and
organizations. Moved by Getty, seconded by Murphy that staff be
instructed to pursue donations and/or grants to proceed with
construction. Ayes: Five. Absent: Collier, Mollenhoff. Motion
carried.
With no further business before the council, it was moved by Getty,
seconded by Jordan that the meeting be adjourned at 5:58 p.m.
Ayes: Five. Absent: Collier, Mollenhoff. Motion carried.
Nancy Eckert
City Clerk