12/27/2001-CC-Minutes-SpecialMINUTES: CITY COUNCIL -SPECIAL CALLED
DECEMBER 27, 2001
PRESENT: Mayor Tommy Kincaid, Councilman Glenn Ervin, Councilman Craig
Waggoner, Councilman Jimmy Evans
ABSENT: Councilman Andy Garza, Councilman Joe Higgs
OTHERS
PRESENT: City Manager Jack Smith, City Secretary/Assistant City Manager Rose Chavez,
Roger Hebard, Berry McBride, Victor Hancock, Dick Rusche
1. Mavor Called Meeting to Order
2. Consider and Possible Action on Presentation by Richard Shaw.
Richard Shaw, 6304 Richard Lane, Dallas, TX, indicated he was the president of
Colonial Equities. They develop properties in Dallas. They have been affordable
housing developers for over 30 years. He showed pictures of some of the properties
they had built in the past. He came to Sanger because there was not much multi -family
housing, and it is needed. He continued to express the need for affordable housing in
Sanger.
Mr. Shaw discussed the low income tax program that is funded by the state and
indicated it was basically a tax credit. In order for them to receive the tax credits, they
must file an application no later than January 4, 2002. There was a very short window
to get this completed, that is the reason for the special called meeting. In the past they
have been successful in receiving the credits form the state. One of the things the state
likes to see is that the cities are in support of the project. They like to see if the City is
willing to contribute directly or indirectly 5% of the cost. They are here requesting a
tax abatement to pay that 5%. The total cost of 176 units will be right at 13.3 million
dollars. He indicated this may vary a little bit, but its close. The property site is on
F.M. 455, North of the New High School site.
Discussion continued regarding the project.
Mr. Shaw explained how the tax credits are sold to get the revenues for the project.
Mr. Shaw indicated normally they get tax bills for about 80% of their property. They
are estimating at an annual 3% inflation rate that they will pay the city over the next
10 years about $1,138,000.00 in taxes. They are estimating over $3,000,000.00 for the
school taxes.
Mayor asked how long it would take to complete the project.
Councilman Higgs asked the Code Enforcement Officer if he was satisfied with the
ordinance.
Ken Wilson indicated there was one change.
Samantha indicated to put "not" in between "is" and "limited" to allow wood to be
used as well.
Councilman Ervin moved to approve Ordinance #12-32-019 Councilman Evans
seconded. Motion carried unanimously.
12. Consider and Possible Action on Taps for Easement on Don Sable's Property.
City Manager indicated he had received a letter from Benjamin Reed, the attorney for
Mr. Sable, in regards to the issue involving the sewer easement and what it would take
to settle the matter. Mr. Sable has requested that the City waive 100 residential sewer
tap fees in order in exchange for a sewer easement through the property.
Councilman Evans moved to not give any tap fees.
Motion died for lack of a second.
Lengthy Discussion regarding the taps in exchange for an easement across the Sable
Property.
Councilman Evans moved to not give Mr. Sable anything, and if the school wants to go
through that property let them pay the tap fees at 12,000,00 each. Councilman Ervin
seconded.
Mayor indicated the City has been treating the School as a developer, and in the past
the City has given developers taps in exchange for easements.
Councilman Higgs indicated if the School can get Mr. Sable to go with the proposal of
$ 78100.00 from the school and seven (7) taps from the City he felt the City should agree
to it.
Discussion continued.
Motion carried 3 to 1, Councilman Higgs voted no. Motion carried unanimously.
13. Any Other Such Matters.
a) City Manager indicated the Christmas lunch will be Friday at noon, and the Council
and spouses are invited.
14. Meeting
reed.':
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Mayor T my Kincaid
Mr. Shaw indicated about 10 months.
Councilman Evans asked about the tax abatement.
Mr. Shaw indicated it would be a maximum of $690,000.00. They are also going back
to the school district and asking for part of their taxes. They are not asking for a
commitment of $690,00.00. They are asking for a commitment that the City will move
forward with them, and bring it up at the Council meeting at the next available time.
Discussion regarding funding of the project.
Mr. Shaw asked the Council to give Mr. Smith permission to write a letter on their
behalf stating that the City is willing to move forward to create this provision for the
tax abatement.
He gave a sample letter and notice of intention to the Council for them to use if they
want to proceed.
He indicated they will ask the County and the school to put in toward the $690,000.00,
but they need the City to set up the district first.
Mr. Shaw continued to explain the project guidelines and benefits to the community.
Mayor indicated it boils down to a 5% tax rebate and frankly it was hard for them to
accept when taxes were just raised.
Lengthy Discussion continued regarding the tax credits and how the program works.
Councilman Evans indicated the utility rates and taxes have been raised and he just
can't justify the abatement.
Mr. Shaw indicated a percentage of the taxes is more than the City will get if they do
not build the apartments.
Councilman Evans indicated he was against it.
Discussion regarding the water and sewer taps.
Mr. Shaw indicated he would not asked the City to cut the permit fees or the tap fees,
they will pay full price for them.
Mayor indicated he would have liked to have more time to review the proposal.
Discussion continued regarding the procedures for the program.
City Secretary indicated approving the letter does not commit the City to anything. If
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they decide later they do not want to do it they can back out.
Councilman Ervin indicated he felt it should be reviewed by the City Attorney before
they approve it.
City Secretary indicated the attorney will not review it overnight, it will take some time.
City Manager indicated he felt housing was needed in Sanger.
Councilman Evans asked the City Manager how he felt the tax payers would feel about
the abatement.
City Manager indicated he felt this was a better deal for the City than the abatement
given to Wal-mart and he has not heard any complaints regarding that abatement.
Councilman Waggoner indicated he felt if they really wanted to come to Sanger they
should pay their way.
Mr. Shaw indicated he would but that the rent rates would increase and the property
would no longer be affordable.
Lengthy Discussion continued.
Councilman Evans moved to not accept the proposal, Councilman Waggoner seconded.
Motion carried 2 to 1. Councilman Ervin voted no.
Any Other Such Matters.
None.
4. Adjourn.
A'
Mayor .t mmy Kincaid