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04/17/2001-4A-Minutes-RegularMINUTES: 4A Board April 17, 2001 PRESENT: Frank Ballard, Richard Muir, Vickie Jenkins, Carroll McNeill, Bill Fuller OTHERS PRESENT: City Manager Jack Smith, Woodrow Barton, Charles Carneal 1. Frank Ballard called meeting to order. 2. a) b) Approve Minutes: Disbursements CONSENT AGENDA None to approve this meeting. 3. Citizen's Input. Woodrow Barton, 807 N. 7th St., indicated about 12 months ago Roger Hebard wanted to develop 292 acres of property that was owned by Hank Cooper. The area where the new landfill was to be. He came before Council to try to develop a MUD District, which did not get approved. Now he has come back and has presented a 4 page construction plan for residential and commercial property .. About 4 months ago Mr. Kramer presented the Sable concept plan for the property east of the Railroad on F.M. 455. This plan contains areas for single family, multi family, and commercial. Now they have come to a point where they will sell off 7 acres. He just wanted to bring this to their attention. 4. Consider and Possible Action on Contract with AHM Apartments. Carroll McNeill indicated he wanted to do what was best for the city. This would bring in tax revenues. Discussion regarding water and sewer. City Manager indicated anything they approve will be contingent upon the City Attorney's approval and the City Council's approval. Charles Carneal indicated there intention was that the 4A Board would have 10% partnership; however the financial lenders will not look toward the board for repayment of the note. He felt there would not be any liability. The corporation would not have any responsibilities. Frank Ballard asked if it would be appropriate to have a contract stating that the corporation will have to carry some type of liability insurance. Charles Carneal Indicated they can keep sufficient insurance to cover any problems. Vickie Jenkins indicated all the taxes are paid, and the corporation is in good standing. She attempted to pull a better business report, and there was not any information on them. Continued discussion regarding the project. Richard Muir indicated he had checked a couple of the locations where these people have apartments. Some of the response was good, but in Arlington he had spoken to the building inspector regarding the apartments called Northridge and Northridge II in which the minimum standards were complied with, the inspector indicated more information could be obtained through filing an open records request. He indicated that was not as good of a response as he hoped to get. He called Sioux City, Nebraska and they have a project that they have not had any problems with. Richard Muir indicated the issue of the location needed to be addressed. He felt they could approve the concept, but they final approval needed to be given by the Planning and Zoning and City Council. There also were the other issues that need to be addressed. The first issue is to make sure there is no liability, the second issue is that they understand they are not recommending the site that they have indicated, and the third issue is that they obtain liability insurance. Discussion regarding the Attorney's comments and concerns regarding liability. Discussion regarding the market for apartments. Discussion continued regarding the project. Charles Carneal indicated in Denton and surrounding cities, there are not any properties as nice as this will be. He indicated to find this type units you would have to go to McKinney or Frisco. Discussion regarding tap fees. Discussion regarding the site. Vickie Jenkins indicated the decision they needed to make was if they want to do the partnership or not. Discussion regarding sales tax, and development. Frank Ballard indicated these developers are only asking for a partnership, but have indicated they will work with the attorney to make sure there is no liability, this will bring in tax revenues, and water and sewer revenues. He indicated they should look at the overall picture. This may be an opportunity to get some of the money back that was given to Wal-mart. Discussion continued regarding the criteria. Bill Fuller asked if the Council did not approve this, what would happen. Mr. Carneal indicated it would fall through. Mr. Fuller asked ifby being citizens of the community, are they trying to address items that should be dealt with by the Planning and Zoning and the City Council. He felt that perhaps they should pay more attention to the agreement. They should decide if they want to agree to the concept. Then look at the money issues and how that is handled. He also felt that he would like more information about the rent schedule. Mr. Carneal indicated he was asking for this to be moved forward. He indicated the Board would receive ten percent of what the corporation received. Discussion regarding interest rates. Discussion regarding the rent schedule. Vickie Jenkins asked about signing the documents contingent upon the attorney's approval of all future documents, and will the Council have to approve the board's action. City Manger indicated they will go before City Council on Friday afternoon. If the Council does not approve it is a dead issue. Richard Muir made the motion that in consideration of the discussion and the letter from the attorney that the board move forward with the limited partnership with AHM Development Incorporated which would result in the construction of 76 apartments l 'l f . I :· I l , l l 11• 'I' contingent on their being absolutely no liability on the mote and that the Planning and Zoning and the City Council have full reign with selecting the details of the site to be in line with what fits the City plan. Vickie Jenkins seconded. Motion carried 4 to 1. Carroll McNeill opposed. 5. Meeting Adjourned. Approved