M&C Notes
07/29/2013
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CITY OF DULUTH, GA
07/29/2013CITY COUNCIL MINI STRATEGIC CONFERENCE NOTES 5:30 PM
RED CLAY
PRESENT: Mayor Harris, Council members Bomar, Dugan, Jones, Kelkenberg and Whitlock, Tim Shearer, Chief Belcher, Alisa Williams, Ken Sakmar, Teresa Lynn, James Riker, Veronica Chaffin, Chris McGahee, Melissa Muscato.
- RED CLAY EXPANSION
Council, DDA members, and staff held discussion on the proposed Red Clay expansion. James Riker, Planning and Development Director explained the proposed expansion project includes but not limited to expanding the basement, enlarging the street-level lobby including addition of restrooms and a rooftop tavern. Examples of “taverns” were shown to Council for input on design layout.
Melissa Muscato, City Engineer presented for discussion the proposed budget for the project. The estimated construction costs “worst case scenario” would be $2 Million.
Ken Sakmar, Finance Manager presented the “cash reserves” and noted to council the “unobligated reserves” that could possibly be considered for this project which would still leave the city with a four month cash reserve. He also explained that the city could borrow at possible low-interest rates or could be a combination of both, unobligated reserves and borrowing. Teresa Lynn, City Clerk explained that by using these funds, it may place the city in a very tight budget year. She noted that the annual $444,000 software payment would be coming off the books April 2014 as well as some “one time” expenditures from the 2014 budget. She explained due to the uncertainty of the 2015 budget these funds may or may not be available to be set aside for “debt payment” for this expansion.
Concerns were expressed about spending funds for designing expansion when the city has not yet determined how to finance its construction. Concerns were also voiced concerning the appearance of the “hole” and the length of time it has been undeveloped. Support for the project was voiced by both members of Council as well as from the DDA.
The following items needed to be considered before moving forward:
1) preparation of a landlord/tenant /lease and/or development agreement between interested parties (i.e. EOP, Pure Restaurant and Gwinnett School of Music), and
2) preparation of a financial analysis on how the funds from said agreements compare to the debt service schedule associated with the construction.
As it relates to the physical tavern expansion, the interior of the building and other design elements should be left up to the potential tenants and not the City.
II.SIDEWALK IMPROVEMENTS ALONG MAIN STREET
James Riker, Planning and Development Director presented a revised sketch drawing of the proposed sidewalk improvements on Main Street which includes parallel parking spaces, places for public art and an area for performing artist. The sidewalk improvements would be paid for with 2009 Parking SPLOST funds.
Staff was directed to move forward with placing the “design” on the August 12th agenda for Council consideration.
III.UPDATE FROM CHERI MORRIS
Cheri Morris, consultant came forward and presented an update on the master plan for revitalization of the downtown and stated that she would present a full report in September.
IV.ADJOURNMENT
Work session adjourned at approximately 9:20pm.
Approved this ______day of ______, 2013.
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Mayor Nancy Harris
ATTEST:
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City Clerk Teresa S. Lynn
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