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
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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
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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.
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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.
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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
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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.
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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