Eminence Kentucky-Special Minutes

The City Council of the City of Eminence, Kentucky met in a special session on Thursday, December 21, 2006 at 11:30 a.m. at the Eminence City Hall Council Chambers with Mayor Doug Bates and the following members present: Kevin Harris, Laura Whitney, Drane Stephens, and Tom Ferguson. Absent were Members Howard Roberts and Leeroy Winburn. Other individuals present were Mayor Elect Jim Petitt, Council Members Elect Shawn Bright, Treva Browning and Danny Meadows, Attorney William Brammell, City Clerk Sandra Doane, Public Works Director William Smith, Sheila Hadden, Adam West, Major Rick Simmons and Katie Jacewicz with the Henry County Local.

The purpose of the meeting being called was to discuss the possible sale of surplus property (old railroad property on West Broadway); discuss the possible purchase of a lot from H & H Development Company (Harold Stivers); to discuss and possibly approve line item changes in the FY 7-1-06/6-30-07 budget; and to approve the agreement between MAC Investors, LLC and the City regarding dedication to public use of city property.

Subject: Sale of Property – Mayor Bates stated that we have been approached by a representative of Nathan Adams to purchase two tracts of the old railroad property from the City and that we need to come up with a price if we desire to sell this property. Mayor Elect Jim Petitt asked what we were trying to do and what exactly are we getting for our sale. Mayor Bates explained that there are two slivers of the old railroad property that adjoin the Vianne Bruther property which Mr. Adams is purchasing. Mr. Adams thought the Bruther property came out to the road but found out differently and wants to purchase these two tracts from the City for another access to the property. We previously sold parts of the old railroad bed for 25 cents a square foot for residential and 50 cents a square foot for commercial. Attorney Brammell stated that the motion if we decide to sell must state the selling price, make a determination that the property is surplus, state a purpose for selling and state why it is in the public interest to sell and determine if selling the property promotes economic development.

Adam West, surveyor for Mr. Adams, stated that Mr. Adams’ intentions for the property were not revealed to him but the property is zoned R-2 which is for residential use. It is his understanding that he wants better access to the property.

Member Whitney asked who has been maintaining the property. Mayor Bates stated that the City has been maintaining the railroad property, but the Bruther property has not been mowed for awhile.

Mayor Elect Petitt asked if a recent appraisal has been done on the property. Mayor Bates stated not to his knowledge and that we don’t need one. Attorney Brammell stated that the statute regarding this type of transfer could permit the transfer without any compensation if for economic development purposes.

Mr. West stated that the square footage might change slightly for Tract B. Member Stephens stated that per his calculations the estimated sale price for both tracts would be around $3,000.00.

Member Ferguson stated he would like to make the motion to sell the property but asked for assistance from Attorney Brammell with the motion. The content of the motion was discussed.

Motion made by Member Ferguson to declare Tracts A & B on the attached plat to be surplus property in that it is not currently used by the City and is a maintenance burden and no future use by the City is contemplated. The original reason for acquisition is unknown; and it is further moved that said property be transferred to Nathan Adams at the price of 25 cents per square foot in that it is determined that such transfer is for economic development purposes. The Mayor is authorized and directed to execute all documents required to affect said transfer. Motion seconded by Member Stephens. All members voted “Yea”.

Subject: Purchase of Property – Mayor Bates reviewed a proposal to purchase a lot from H & H Development Company (Harold Stivers) behind his property on South Main Street. Mayor Bates explained that it was originally thought that Tony Finch would be purchasing all of the property for his business as he didn’t know how much he would need at first. Mayor Bates stated he had asked Mr. Stivers about the balance of the property at that time and Mr. Stivers stated that his son wanted the property. Mr. Stivers just recently came back to the Mayor and stated his son did not want the property and Mr. Stivers asked if the City would be interested in purchasing it. Mr. Stivers priced it at $10,000.00 which Mayor Bates felt was a good deal as Mr. Finch paid $25,000.00 per acre. Mayor Bates stated he feels this lot would provide additional parking for the City and other businesses; the lot could be used by the Fire, Police or Public Works; the lot could be used for festivals, and provide potential future development. The lot is approximately 8/l0 to 1 acre, but will need surveying.

Danny Meadows asked if this lot didn’t have a lot of drainage and culverts located on it. Mayor Bates stated that it did, but it shouldn’t be an issue. Treva Browning asked if the property comes all the way to Bell Lane. Mayor Bates stated that it does and that it joins Kevin Harris’s property and that most of the businesses have only minimal land in the back. Danny Meadows stated that if very many culverts and much drainage issues exist on this lot that he feels the price is too expensive. Member Ferguson asked if the money is available to purchase the lot. Mayor Bates stated that it can be line item transferred.

Shawn Bright asked who the realtor on the property would be. Mayor Bates stated that no realtor is involved and that he would be handling the sale free of charge to the City. Mr. Bright stated he would really like the council to table this decision and let the new council address the issue and if Mayor Bates feels it is such a great deal he should buy it and sell it back to the City in 2007. Mr. Bright stated the new council need to have a chance to evaluate the idea and feels this is being pushed through for no good reason at all and requested Council table the purchase of this land. Mayor Bates stated he had given good reasons to purchase the lot.

Mr. Bright asked why a special meeting was called at 11:30 a.m. ten days prior to a new administration for the purpose of trying to push something through and that meetings have never been called during the day before. Mayor Bates stated that special meetings have always been called when needed and this was a good deal which needed to be addressed and would have been addressed Tuesday night if not for the issues we had at that meeting. Mr. Bright stated this just isn’t right. Member Whitney stated that the issues from Tuesday night are part of the reason they had to have a meeting during the day and that we have had meetings before during the day on other issues in the past.

Mayor Elect Petitt stated that he feels the property would still be available within the next few days and that he would like for his administration to look at this themselves.

Member Whitney made the motion to purchase the property from H & H Development Company as discussed for $10,000.00 for future development reasons, to provide additional City parking, and for multi-use of departments within the City. Motion failed for lack of a second.

Subject: Agreement Between MAC Investors, LLC and the City Regarding Dedication to Public Use – Attorney Brammell stated that we did not need to address anything on this matter after all as it would be redundant as the motion from Tuesday night covered the matter.

Subject: Line Item Budget Change Requests – Mayor Bates asked City Clerk Doane to review the line item budget change requests. City Clerk Doane stated that the first one requesting a line item change to purchase the property discussed above is no longer necessary, but requested one change in the water and sewer operations and maintenance budget that would correct an error which previously put money into engineering and supervision for I/I work rather than in the actual repair category. City Clerk requested permission to move $10,000.00 from Category 750 to Category 762. Motion made by Member Harris and seconded by Member Ferguson to approve the line item budget change as requested to move $10,000.00 from Category 750 to Category 762 in the Water and Sewer Operations and Maintenance Budget. All members present voted “Yea”.

With no further business to be discussed, motion made by Member Whitney and seconded by Member Stephens to adjourn. All members present voted “Yea”. Meeting adjourned at 12:10 p.m.

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