Minutes
COUNCIL BRIEFING
November 7, 2006
Members Present: Mayor Pro Tem John J. Rodgers (arrived at 5:28 p.m.)
Councilors R. Gary Allen (arrived 4:41 p.m.),Wayne Anthony, Glenn Davis, Berry
Henderson, Julius Hunter, Jr., Evelyn Turner Pugh, Nathan Suber and Evelyn
Woodson. Also present were Mayor Robert S. Poydasheff, City Manager Isaiah
Hugley, City Attorney Clifton Fay, Interim Finance Director Pam Hodge, Clerk of
Council Tiny B. Washington and Deputy Clerk of Council Sandra Davis.
Members Absent: Councilor Charles E. McDaniel, Jr. was absent.
Guests: Mr. Len Williams, Housing Authority Director, Mr. Doug Faust, with the
Boulevard Group in Atlanta, Mr. Franklin Douglass, Chairman of the Housing
Authority Board, and Wade Tomlinson, Board Member.
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This meeting was called to order at 4:22 a.m., in the Council Chambers, Plaza
Level of the Government Center.
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2007 Proposed Legislative Agenda:
City Manager Hugley reminded everyone of the annual luncheon with the three
elected bodies; Legislative Delegation, School Board Members and City Council.
He explained that the purpose is to allow the three elected bodies an
opportunity to present their proposed legislative agenda for the upcoming
legislative session. City Manager Hugley said that meeting is scheduled for
November 13, 2006, at 11:30 a.m., at the Columbus Convention and Trade Center
Foundry Room.
He then provided an overview of the City?s Legislative Agenda and briefly
explained each:
1. TAD ? Tax Allocation District ? A tax Allocation District (TAD) is
established for the purpose of publicly financing certain redevelopment
activities in underdeveloped areas. Redevelopment costs are financed through
the pledge of future incremental increase in property taxes generated by the
resulting new development.
2. Department of Transportation/Metra access to the Georgia Crime Information
Center (GCIC):
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NOTE: Mayor Poydasheff left the meeting at approximately 4:30 p.m. Councilor
Evelyn Woodson was the acting Chairperson.
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3. Inverse Condemnation ? Oppose legislation that expands the definition of
Inverse Condemnation to include any impact a state or local regulation would
have on the value of property and to require local governments (the taxpayer)
to pay for the impact of these regulations. (Carry over from 2005)
4. Base Realignment and Closure/BRAC: Request for funding to local governments
for infrastructure projects.
5. Hazardous/Solid Waste Funding: Mandate that funds collected for waste tire
removal be placed in the Hazardous Waste Fund and the Solid Waste Fund.
6. LARP Funding: Support of legislation to increase transportation funding
7. Zoning Appeals: Oppose new legislation on Zoning Appeals
8. 911 Surcharge ? Increase: Increase 911 fees from 1.50 to $2.50
9. Wireless Phones: Support change in technology for wireless phones to
capture cost of prepaid phones.
10. Public Defender?s Program: Support legislation to allocate full funding
for the Public Defender?s Program.
11. Family Connection: Support the continuation of funding for Family
Connection
12. UGA Cooperative Extension Services: Continue funding
13. Health Department ? Grant-in-Aid Funding: Oppose proposed changes in
Grant-in-Aid funding to local health departments
Councilor Davis asked questions regarding HB1026 whereas $1 million was
allocated statewide. City Manager Hugley responded that the grant application
has been filed to the State to compete for portions of that money. He pointed
out that we have received an allocation that was less than $100,000. He
determined that next week he would have the exact dollar amount.
Councilor Pugh asked about franchise fees, at which time, City Manager
Hugley stated that what he has received from GMA regarding franchise fees has
no real impact on the City of Columbus.
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Housing Authority- Baker Village Project:
Mr. Len Williams came forward and immediately introduced Mr. Doug Faust with
the Boulevard Group in Atlanta and Housing Authority Chairman Mr. Franklin
Douglass and Board Member Wade Tomlinson.
Mr. Doug Faust then approached the rostrum to provide a brief overview using a
power point presentation. He highlighted questions from the previous discussion
on this matter. He explained that the DCA determines who is qualified to do
tax credits and publish an annual report. He shared the importance of tax
credits to this project. He emphasized that no firms from Columbus are on that
list. He encouraged firms and explained the process on how to qualify;
however, the firms in Columbus did not do so.
He briefly explained the procurement process and those that were asked to
participate in their briefing on the project. He provided a review of the
process in an effort to increase local participation.
Mr. Faust maintained that the fee developer is required to train the Housing
Authority staff so that they could become a developer in two to five years and
would be able to apply for tax credits. He pointed out that the property
management on site would be the fee developer?s management entity, which would
transition to the Housing Authority in a few years as the staff becomes
experienced.
Responding to a previous request, Mr. Faust advised that the Federal regulation
does not allow the attachment of a local requirement. He then provided a
breakdown of local participation according to infrastructure, demo,
homeownership, onsite construction and overall. He said that of the $5.6
million that the City of Columbus invested in the Peabody Project, 75% went to
local firms and a listing of the firms has been provided. (A copy of this
document was not filed for the record.) He pointed out that there are 33 homes
inside the Hope VI Program for Peabody and nine of those homes have been sold.
He shared that 100% of those homes are being developed by Neighborworks. He
advised that Phase I has been completed, which is approximately 41% of the
work. As of today, Mr. Faust said on the construction side, 55% of the work or
$14.1 million has been done by local contractors, engineers and architects.
Mr. Faust then briefly explained what would happen if Baker Village were not
revitalized and what would happen with this property if it is sold and is
listed as follows:
The Housing Authority would attempt to recoup the relocation cost in the sells
price, which is estimated at $3.25 million.
The City would lose 590 current affordable units.
The 240 units that is being proposed would not be developed
The sell of the land requires HUD approval.
The Housing Authority would not be able to control the development that happens
on this property.
Columbus South would not benefit from the Baker Village Revitalization
During the sale period, the vacant buildings might become a hazard.
The demolition cost is approximately $2.5 to $3 million, which would be hard to
recoup with the relocation and demolition costs.
The reasons why the City should participate in the Baker Village Project:
This would allow the Housing Authority to develop affordable housing.
Support the Housing Authority in becoming long-term developers and investors.
(This would provide that 100% of all future earnings would then flow through
the Housing Authority, who would reinvest them locally.)
Councilor Pugh asked about the notification process to the developers, at which
time, Mr. Faust explained the contact process. Councilor Pugh then expressed
concerns that a group out of Atlanta would be the landlords of the property in
Ashley Station (formerly Peabody) with the monies not being retained in
Columbus. Mr. Williams addressed those concerns by explaining that it has to
do with the complexity of these arrangements. He added that the DCA and the
investors require experience in managing these properties, which was part of
the operating regulations that the Housing Authority had to adhere to. He
continued by pointing out that the Baker Village Project would be different
because we are not bringing in a master developer, but a developer partner that
would assist us in securing the financing, do the initial management of the
site and allow the Housing Authority to get the tax credit experience, as well
as construction guarantees. He said that the Housing Authority would own the
property and would long-term manage the property.
Councilor Turner Pugh suggested that this be put on the legislative agenda
regarding local participation on projects.
In response to Councilor Allen regarding some clarification on the subsidized
housing portion of Baker Village versus the public/private initiative, Mr.
Williams advised that there would be project based Section 8, Low income tax
credits and market rate units. Mr. Faust, responding to further questions of
Councilor Allen, stated that 36% would be Section 8. Mr. Faust referred to a
document provided by the Housing Authority when stating that the current
proposal is for 244 apartments; all of them would be assisted by low-income
housing tax credits, 33 would be public housing assisted, approximately 89
units would be assisted by project basing Section 8, and potentially market
rentals.
Councilor Allen expressed concerns with receiving a request from the Housing
Authority for costs associated with infrastructure. Mr. Williams pointed out
that we are only asking for Phases I and II, which are the apartments; we are
not asking for infrastructure money for the following phases. In response to
a question from Councilor Allen, Mr. Faust said that the construction start
date is scheduled for August 2007.
Councilor Davis asked about funding, at which time, Mr. Williams advised that
there would be federal funding but no HOPE VI money. He maintained that the
Housing Authority would incur approximately $4.5 million of debt. He explained
that we would be spending approximately $6.5 million in Housing Authority
money, which is federal money.
Mr. Williams spoke on the potential usage of the Baker High School property at
the request of Councilor Davis. Mr. Williams also addressed the lack of
funding from the different organizations that participated in the Ashley
Station Project.
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NOTE: Mayor Poydasheff returned to the meeting at approximately 5:13 p.m.
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Councilor Woodson suggested that with the construction of the 244 apartment
units that the development is designed to be homeownership friendly for the
area. She then expressed concerns with the construction of apartments, which
creates a transit community. She emphasized the importance of homeownership in
Columbus South.
Councilor Allen stated that the plan is for the Housing Authority to work with
a developer and sell that property; then, the property owner would sell off the
property. Regarding this project being in the Enterprise Zone, Mr. Williams
said that there would be some tax abatement; since, the property is in the
Enterprise Zone. City Manager Hugley agreed that there is tax abatement in the
Enterprise Zone for single-family development. Councilor Allen emphasized the
desire to have homes built so the City would be able to recoup some of the $3.6
million contribution from property taxes that would be generated. Mr. Williams
said that it is the Housing Authority? board that would make the final
determination regarding the construction of homes as part of this project, and
he would be willing to ask the board to make this a condition of the project.
He maintained that the plans are to build homes.
Councilor Allen requested additional information in writing on the Enterprise
Zone and more specifically who receives the tax abatement once the home is sold.
In response to a question by Councilor Turner Pugh, Mr. Franklin Douglass
approached the rostrum and pointed out that everything that has been presented
has been approved by the Housing Authority Board with Phase I & II, which
consist of the 244 units with Phases III and IV being dealt with as we move
through the first two phases.
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NOTE: Mayor Pro Tem Rodgers arrived at the meeting at approximately 5:28 p.m.
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In conclusion, City Manager Hugley said that we would come back to the Council
in approximately three weeks. He then made comments regarding the funding
sources that were available to support the Housing Authority with the $5.3
million and the Hope VI Project. He provided a listing of those funding
sources and are listed as follows:
Sewer Fund
Paving Fund
Bonds
SPLOST
He contended that those funding sources are no longer available to the City in
attempting to assist the Housing Authority with the Baker Village Project. He
said the only funding source would be the General Fund and the Enterprise Fund
monies. He said that we would bring this matter back at a work session for
further discussion.
Councilor Woodson reiterated the point that the Council wants to know about the
commitment from the Housing Authority Board to build homes before this matter
comes back.
Councilor Hunter relayed the concerns of some constituents who would desire to
see this project move forward.
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There being no further business to discuss and with the dialogue being
concluded, this meeting adjourned at 5:33 p.m.
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Sandra T. Davis,
Deputy Clerk of Council
Attachments
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