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HomeMy WebLinkAbout05-28-1997 Special Council Mtg CITY OF AUBURN SPECIAL AUBURN CITY COUNCIL MEETING May 28, 1997 5:30 MINUTES I. Introductions The special City Council meeting convened at 5:30 PM in the Council Work Area located in the Mayor's Office of Auburn City Hall. Those in attendance included Mayor Charles A. Booth, and Councilmembers Fred Poe, Rich Wagner, Sue Singer, and Gene Cerino. Mayor Booth announced that Councilmembers Trish Borden and Stacey Brothers had a conflict in scheduling, and Councilmember Jeanne Barber was excused due to illness. Councilmember Stacey Brothers was absent. Members of the Auburn Downtown Association in attendance Executive Director for the Auburn Downtown Association Kris Susee, President of the Auburn Downtown Association Don Gardner, representative from the Department of Community Trade and Economic Development Dick Larman, ADA Secretary Debbie Douglas, ADA Promotions Chair John Rottie, Business Improvement Area (BIA) Committee of Ratepayers Member Bob West, ADA Vice President Alan Keimig, Chair of BIA Committee of Ratepayers Sharon Dougherty-Smith, ADA Board Member Lynn Norman, BIA and Committee of Ratepayers Pat Cavanaugh. City staff in attendance included Associate Planner Bea Sanders, Assistant Finance Director Shelly Coleman, Finance Director Diane Supler, and City Clerk Robin Wohlhueter. II. Auburn Downtown Association Mayor Booth announced that the purpose of the meeting tonight is to discuss the Auburn Downtown Association (ADA) five year plan, to provide background information on the ADA accomplishments and milestones. Don Gardner explained during the last two weeks focus groups have met to better understand what service organizations, business people throughout the community, downtown employees, and other citizen groups would like to see happen in the downtown area in the next five years. Mr. Gardner indicated they also wanted to meet with representatives from the City Of Auburn for a briefing Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 2 and overview of the history and operational structure of the Auburn Downtown Association. Also, the purpose of the meeting is to discuss the myths of the ADA, to received the state's perspective on the ADA, and to answer any questions City representatives may have. John Rottie presented a brief overview of the Auburn Downtown Association. The Auburn Downtown Association was originally established with assistance from the public and private sector. Downtown core areas play an important role in their community by providing an identity. In the state of Washington there are some downtown associations that are thriving and some that are struggling. Areas such as Newcastle, Lakewood, and Federal Way are struggling to form downtown core areas. Lynn Norman recalled her experience in establishing a business in downtown Auburn sixteen years ago. At that time she was told that Auburn would be a ghost town within ten years. This was apparently due to the number of vacant commercial vacancies within the block of her business. VVhen Ms. Norman was approached about forming a citizens task force, under the auspices of the City, for the purpose coming up with solutions for improvements to the downtown core area she was enthusiastic assuming a solution could be provided to the problem. A citizen task force was formed that consisted of concerned citizens and downtown business owners. Ms. Norman commended the task force for the work that went into gathering petition signatures to form the Business Improvement Area (BIA). Participation by both the City and private sector representatives provided for collective development of a vision and plan for improvements to the downtown area. Ms. Norman further described the differences in services of the Auburn Downtown Association and the Auburn Chamber of Commerce. Using an overhead projector, Kris Susee, Executive Director of the ADA, summarized the history and development of Auburn's Business Improvement Area. The BIA represents a geographically defined area within downtown Auburn. Businesses are assessed based on square feet, There are eleven members of the BIA Committee of Ratepayers that represent the geographical area. The ordinance that formed the BIA provided for management by contract with a support entity. The Auburn Chamber of Commerce initially provided the experience to guide and support the BIA. After a few years the Auburn Downtown Association, a non-profit 501-C3 organization, was formed in Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 3 conjunction with the BIA. The Auburn Downtown Association serves as the lead entity for the BIA, working closely with the Committee of Ratepayers. They are also responsible for administration of the budget and contract between the ADA and the City of Auburn. The Auburn Downtown Association operates under the National Main Street approach, a four point approach. Ms. Susee described efforts associated with the approach to organization, promotion, design, and economic restructuring. She compared downtown areas to malls where a managing entity is used to assist in providing services and promotions, and referred to news articles related to surrounding cities that are hoping to establish a downtown core that improves their image and provides better services to their residents. Auburn is ahead of its time when it comes to its downtown program and activities. Ms. Susee discussed the responsibilities, activities, and awards received by the ADA Design Committee, She also reviewed the activities of committees for Economic Restructuring, Private Investment, Business Recruitment, and Promotions. Don Gardner provided an overview of the myths that are associated with the Auburn Downtown Association. They include: 1 .) Is there a duplication of efforts with Auburn Chamber of Commerce and the Auburn Downtown Association? Membership for the Chamber extends beyond the Auburn community where the ADA area is clearly defined by the BIA and Articles of Incorporation. 2.) More than half of the businesses do not support the BIA. Non-payment of assessments represents '18% of the total assessments due; 82% of the assessments have been paid or arrangements have been made to pay. Mr. Gardner's opinion is that the payment rate of assessments would have been higher if the lawsuit had not been filed. The lawsuit is based on a gray legal technicality. 3.) Expenditures of the Supermall funds have strayed from the original agreement. Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 4 Amendments to the Agreement that were made addresssed the use of the funding for the BIA. For example, the original proposal included a design study which suggested design changes to buildings at no cost to the property owners. The committee decided a better use of the funds would be to establish a matching grant program that created monetary rewards for improvements to business improvement area buildings. Mr. Gardner introduced Dick Larman from the State Department of Trade and Economic Development. As a representative from the State who first discussed the possibility of establishing a BIA, Mr. Larman praised Auburn in its efforts to establish a business improvement area for improvements to the downtown core area. Mr. Larman remembered in 1964 a title wave washed away the town he grew up in Alaska. It took away its core, community, and identity which were not recovered when the town was rebuilt. Mr. Larman discussed the four point approach used in establishing improvements to downtown. It extends political, economic, social, and physical value to the community. The Auburn Downtown Association recognizes the value of continuing to have the freedom of voice in a partnership with the City. Mr. Larman contended that the downtown core area is not like a mall at all; its a central resource of what a community is all about. With the next ten years, Mr. Larman summarized the public's expectation of a downtown core area. People will become more dependent on what is offered in downtown and commercial areas in the future. Doing a block by block review with an investment in time and resources will benefit the future of downtown areas. Mr. Larman commended Auburn for its sustaining its business improvement area over a length of time in support the ADA Board and the Committee or Ratepayers, Chamber, and staff. III. Discussion Councilmember Wagner questioned how the boundaries were initally established. Mr. Rottie responded that boundaries were established along main arterials, and lengthly discussions were held to fairly outline boundaries of the Business Improvement Area that would benefit a specific geographical area for both businesses and residents. Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 5 Discussion centered around the geographical area where a majority of business are contesting the assessment in a pending lawsuit. Alan Keimig noted a spokesperson for that group resides in the area and has generated support for the lawsuit. Mr. Keimig pointed out this area has a greater potential for benefit from the Auburn Downtown Association five year plan than do other sections of the Business Improvement Area. Mr. Gardner noted that the BIA was formed by a super majority; over 60% of the square footage within the BIA boundaries had to sign the petition. Several members of the Auburn Downtown Association described their experiences when they moved into the downtown area and became a participant in Auburn's business improvement area. Auburn's downtown offered a sense of community. Bob West commented that the business improvement area is viable, however, the financial condition of the organization is a concern. He researched the ordinances, agreements, and worked with the Finance Department in gathering the financial information. Mr. West reported 82% of the property owners are supportive of the Business Improvement Area and the Auburn Downtown Association. Mr. West disagrees with the City's position in not taking aggressive action to collect account receivables from delinquent businesses who have been billed. Mr. West indicated that some of the property owners named in the pending lawsuit were not aware they were named in the lawsuit. Efforts have been made to remove these names, but this effort has been unsuccessful. Mr. West reported the manner in which the funds were spent, from a budgeting standpoint could of been allocated back against the Supermall funds. He disagrees with the Supermall's position. The ADA and BIA have used the funds in an appropriate and efficient manner. Mr. West urged Council support of the Auburn Downtown Association in collection and billing for assessments due to the Auburn Downtown Association. Mayor Booth explained recent assessment collections have been based on the City's legal advice. Arguments were heard approximately one week ago with regard to the pending lawsuit, and a decision is expected shortly. Previous collection actions may have stimulated the pending lawsuit. The lawsuit has Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 6 been pending for approximately three years. Assessments not collected during this period of time is estimated at $32,000. Diane Supler estimated approximately $30,000 outstanding, with $14,000 as current rate of non- payment. Mr. Larman supported the funding structure of the business improvement area. Administrative efforts are spent working for the organization to obtain results rather than fund raising as they have to do in other communities. Discussion centered around the formation and administration of the business improvement area. Several points were made with regard to the success of the BIA. Diane Supler provided a summary of the legal proceedings presented last week on the City's behalf with regard to the pending lawsuit against the City. She indicated City Attorney Michael Reynolds was optimistic in getting a favorable ruling within the next four months for the City. Councilmember Poe asked why staff would not provide financial information regarding legal matters to the Council. Mayor Booth explained the pending lawsuit presents itself as a quasi-judicial process which legally prevents staff from forwarding information to the Council because it may prejudice the background of a legal matter that may come before the Council at a future date. Alan Keimig explained that he did not pay his assessment for three years until the City filed a notice of intent to file a lien against his property. Mr. Keimig then paid his assessment and got involved with the Auburn Downtown Association. As a licensed architect, graduate engineer, and urban planner, he focused on the entire the betterment of the downtown community. He pointed out that because business owners no longer live in the community, the Auburn Downtown Association provides a focus where the community is protecting itself. Business owners do benefit from being located in the downtown area. Mayor Booth reiterated that the City does not waive the right of collection on late assessments. However, due to the pending litigation the City is under the advise of the legal department to wait on collections at this time. Auburn City Council Special Meeting Minutes May 28, 1997 Page No. 7 Mr. West commented on financial records showing past due BIA assessments. Mr. West indicated that he does not feel the pending lawsuit should delay collection of accounts receivable for BIA assessments. Diane Supler explained there are two groups of accounts set up. One group represents those businesses who were in operation before the technical error was corrected. The second group represents those businesses who were in operation after the technical error was corrected or re-adoption of the ordinance. There are currently 60 accounts that are delinquent; 18 accounts are no longer in business. Mr. Keimig discussed two new businesses recently established within the Business Improvement Area. Business owners purchased property in downtown Auburn principally because of an active downtown association. Property owners are convinced that this consideration is an important issue in the protection of their property values and promotion of their businesses. Bea Sanders asked for guidance from Mr. Larman regarding how to continue to make the Auburn Downtown Association work. It is Mr. Larman's hope that Auburn continues to make this association work, He discussed the Parking, Business Improvement Areas state law inconsistencies and feels the public/private partnership concept shown in Auburn is working as a model for other cities. In closing, Lynn Norman praised Kris Susee and BIA Board Members for their efforts in making downtown what it is today. Ms. Sharon Dougherty-Smith asked that all Councilmembers be made aware of the presentation tonight. IV. Adjournment The meeting adjourned at 7:35 p.m. Approved this ~7~/~ day of July, 1997. Charles A. Booth, Mayor Robin Wohlhueter, City Clerk