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HomeMy WebLinkAboutMinutes - City Council - Special - 7/16/1984484 SPECIAL CITY COUNCIL MEETING July 16, 1984 11:15 A.M. The City Council of the City of Lubbock, Texas, met for a special meeting Monday, July 16, 1984, at 11:15 A.M. in the City Council Chambers, Second Floor, City Hall. Those present: Mayor Alan Henry, Mayor Pro Tem George Carpenter, Councilwoman Maggie Trejo, Councilman T. J. Patterson, Councilman Bob Nash, Councilman E. Jack Brown, Councilwoman Joan Baker, City Manager Larry Cunningham and Treva Phillips of the Office of the City Secretary. Absent: None. 84-43A-484-814 ( 1.) Invocation by Jim Bertram, Assistant City Manager 84-43-484-815 ( 2.) Pledge of Allegiance to the Flag. 84-43-484-816 consider the establishment (3a.) Hold public hearing to con proposed of blighted or economically depressed areas - in the City Of Lubbock, at Census Tracts 2.01, 2.02, 3, 6.02, 7, 8, 10, 11, 12.Ol, 12.02, 13, 24 and 25. Pursuant to the pro- visions of the Development Uorporat - !on Act Of 1979 and the regulations of the Texas Economic Development Commission. Mayor Henry stated the purpose of the meeting was to hold a public hearing to consider the proposed establishment of blighted or economically depressed areas in the City of Lubbock, and asked Jim Bertram, Assistant City Manager, to give an overview of the purpose of the hearing, and the areas being considered and to hear from any interested citizens. Mayor Henry then declared the hearing open. Mr. Bertram stated that there are currently in the City of Lubbock Industrial Revenue bonds that are eligible for any use that is approved by the City Council in an approved industrial zone within the City of Lubbock. The purpose of the hearing was to extend the eligibility of industrial revenue bonds to selected commercial areas within the City of Lubbock within the geographic areas designated by the Council as either blighted or economically depressed. The specific commercial land uses or general categories that this would be made eligible for are: major office complexes, commercial facilities, convention and related facilities, hotel and/or motel and related facilities, and commercial activities contributing to the revitalization and providing services to the neighborhood residents located within and adjacent to a blighted or economically depressed area that will result in improvement of the high relative rate of unemployment existing therein by adding additional employment and jobs there as set forth in this resolution. Mr. Bertram explained that the criteria that was used was not specifically spelled out in state legislation, that the City chose to use those criteria used by Urban Development Action Grant which is referred to as UDAG, for which the City has already been declared eligible. Mr. Bertram showed viewfoils that depict the seven criteria that were investigated, the map that showed the area selected, and the census tracts that have been selected. Criteria used were: (1) Areas where population declined from 1970 to 1980. (2) Percentage of individuals below poverty level. (3) Median family income below the 80% of the median income income in 1980. 485 1984 (4) Percent of unemployment where percent exceeded 3.7%. This was equal to 120% of the city average in 1980, which at that time was 3.1%. (5) Median value of homes below $31,280. This is equal to 80% of the city during 1980, when the median value was $39,100. (6) Median contract rent below $163 a month. This is equivalent to 80% of the city median in 1980, which was $204. (7) The housing vacancy rate criteria that was explored was where the housing vacancy rate exceeds 12.1% of the city vacancy rate exceeds 12.1% of the city vacancy rate in 1980 when it was 10.01. 12.1% represents 120% of the 1980 rate. Looking at various alternatives, in making a composite of the prior information, the census tracts that qualified in four or more of those categories are shown lying primar- ily north and east of Texas Tech, east of University Avenue from 4th Street down to 34th Street; then lying east of South Avenue Q Drive, and US 87, exclusive of Census Tract 1 in the northern part of Lubbock. After discussing these with the staff, and submitting them to the State Economic Development Commission, the recommendation to the State and to the City Council is to include those areas for eligibility for industrial revenue bonds for the commercial uses stated above, for areas meeting five or more of those categories and those would include Census Tracts 2.01, 2.02, 3, 6.02 (eastern half of the Overton Addition), Census Tracts 7, 8, 10, 11, 12.01, 12.01, 13, 24 and 25. He pointed out that this in effect is enabling legislation in that by declaring these areas as eligible, it will still take specific hearings before the City Council, on each individual request for industrial revenue bonds for commercial use. By passing this resolution, it will simply enable people to come forward with specific proposals, which Council would hear individually. At this point, Mayor Henry asked any interested citizen to come forward. The following persons spoke to this matter: Richard Lopez appeared, expressing his concern in regard to applying for UDAG assistance, if the City goes into commercial and industrial development in these areas, and what it might do to the housing industry, asking if this would close the door to UDAG funds. Nathan Holt came forward, representing the East Side Neighborhood Association. Mr. Holt expressed concern for anyone who might be displaced, property value and tax increases. He stated they would like some means whereby people in the depressed areas would have preference for the jobs that would be created by new industry, and that they needed job training. Clyde James appeared to speak, representing Overton South Neighborhood Association. He outlined his objections to Census Tract being included. His group felt the problem is not the need for nonresidential development, that the problem was nonresidential development; that they did not want pressure for more commercial encroachment into the area. His opinion was that the inclusion of their area would be detrimental and add to their problems, that the resolution being considered by the Council would create a powerful incentive for commercial development in South Overton, and would lead to speculation, further discouraging interest by homeowners; that this would mean more blight, not less. He urged the Council to exclude Census Tract 6.02, for these reasons. Luz VJILtaas came forward as spokesperson for Guadalupe Neighborhood Council, expressing concern for the people who would be displaced or relocated because of a commercial venture, one of which, in her understanding was the River - walk project. She stated the residents did not want to be abused by any large commercial corporation, and asked for clarification of the resolution, where the money is coming from, what could be done about employment, and the people who would be displaced from their homes. She presented an amendment to the resolution which stated their concerns. James Brink, a resident of Overton South, came forward indicating the members of the Overton South Neighborhood Association do not want to open doors which include commer- cialization and industrial development, and requested protection to maintain that neighborhood. Mr. Brink said he was in favor of economic development but was wary of the possibility of commercial and industrial development. 1 O 486 Mayor Henry again stated they needed to be very clear about the intent and results of this particular action. He asked Mr. Bertram to respond to any of the points of clarification. Mr. Bertram pointed out that no commercial area can go into any one of those census tracts if it does not conform to City of Lubbock zoning ordinances. The designation of that census tract does not give any license for additional commercial development that does not conform to our zoning map. Anyone who tries to do that will first come to the zoning process, and the people will be notified, a hearing held, and only then could a commercial use come in that had previously been zoned residential. He also stated that clarification was needed because the question had come up about taking care of people who would be displaced; that since the only role the government here would have to review the request for revenue bonds, any development would be a private development. The property owner could receive more than fair market value if the prospective buyer wanted to pay him for commercial use; it is not governmental action. Mr. Bertram also explained that had the staff chosen criteria to say any census tract must meet six of the seven criteria, it happens that the east side of Overton is the only one that would have dropped out; it is not governmental action. Mayor Henry brought to the attention of those present that the resolution being considered is not related to the Riverwalk project, that it is a separate application, which would include relocation costs; that the resolution before them today does not have anything to do with the Riverwalk project. Council members stated that approval of this proposed resolution would not concurrently approve any zoning or land use change --that would have to be done through zoning hearings --and that these type bonds are for private development and use and not public and therefore any land purchases would be between land owners and developers and no forced sales would take place. It is the intent of this program to allow develop- ment and not (at this point) to even comment on land use. 84-43A-486-817 (3b.) Consider Resolution establishing blighted or economically depressed areas of the City of Lubbock, as defined in the exhibit attached to the Resolution; requesting the Texas Economic Development Commission to approve commercial projects within such blighted or economically depressed areas; descrio the type of project for commercial uses desired and authorized by the City of Lubbock; representin that the City Council will review all project descriptions; containing the City's program for proposed improvement. Resolution 1769 MG:cl RESOLUTION 1769 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS MAKING FINDINGS AS TO A BLIGHTED OR ECONOMICALLY DEPRESSED AREAS OF THE CITY OF LUBBOCK; SUCH BLIGHTED OR ECONOMICALLY DEPRESSED AREAS DEFINED IN THE EXHIBIT ATTACHED HERETO; REQUESTING THE TEXAS ECONOMIC DEVELOPMENT COM- MISSION TO APPROVE COMMERCIAL PROJECTS WITHIN SUCH BLIGHTED OR ECONOMICALLY DEPRESSED AREAS; DESCRIBING THE TYPE OF PROJECT FOR COMMERCIAL USES DESIRED AND AUTHORIZED BY THE CITY OF LUBBOCK; REPRESENTING THAT THE CITY COUNCIL WILL REVIEW ALL PROJECT DESCRIPTIONS; CONTAINING THE CITY'S PROGRAM FOR PROPOSED PUBLIC IMPROVEMENT. WHEREAS, the City Council of the City of Lubbock gave due and proper notice of a public hearing pursuant to Art. 5190.6, as amended, V.T.C.S., also known as the Development Corporation Act of 1979 (the "Act") and the Regulations (the "Regulations"), of the Texas Economic Development Com- mission (the "Commission"), to be held on this date for the purpose of establishing a certain area of the City as a blighted or economically depressed area (the "Blighted or Economically Depressed Area") under and for the purposes of the Act and the Regulations; and WHEREAS, the City Council has found that notice was properly given and published as required by the Act and the Regulations, that the public hearing was held on this date in accordance with law, that the public was given the opportunity to be and was heard on the proposal submitted, and that the City Council has given due and proper regard to the testimony presented; and WHEREAS, the City Council has determined and hereby finds that the following conditions exist within the area designated in the Resolution as Blighted or Economically Depressed Areas within the City of Lubbock, to -wit: The area described in the Exhibit attached hereto is blighted or ..nnnnmirally rianrp(,gpd in that they contain the presence of a substantial 487 JUL 16 1984 WHEREAS, the City Council of the City of Lubbock considered the following factors in designating the Blighted or Economically Depressed Areas within the City: A. Population decline. B. Poverty - at least 17.3% of all individuals in the shaded census tracts are below poverty level. (see attachment) C. Median family income - 80% or less of the city-wide median family income. D. Unemployment - 120% or more of the city-wide average. E. Median value of homes - 80% or less of the city-wide median value. F. Median contract rent - 80% or less of the city-wide median contract rent. G. Vacant housing - vacancy rate of 120% or more than the city-wide average; and WHEREAS, the City Council of the City of Lubbock has determined that collectively, these above -mentioned factors contribute to the presence of a substantial number of substandard, slum, deteriorated or deteriorating structures in the Blighted or Economically Depressed Areas, and the City further finds and determines that such conditions substantially impair or arrest the sound growth of the City; constitute an economic or social liability and are a menace to the public health, safety or welfare in their present conditions and use; and WHEREAS, the City Council has further found that the designated Blighted or Economically Depressed Areas suffer a minimum of five out of the seven above -mentioned factors; and WHEREAS, the City Council has determined that the availability of financing of projects for commercial uses under the Act and the Regulations will assist the City in fulfilling its objectives of promoting commercial development, providing jobs for its unemployed Population, and bettering the general welfare of the citizens of the City of Lubbock, and contribute significantly to the alleviation of the blighted and economically depressed conditions found to exist in the said Blighted or Economically Depressed Area established hereby; and WHEREAS, the construction of Interstate 27 from North Loop 289 to South Loop 289 is located within the Blighted or Economically Depressed Area, and the project cost of over 200 million dollars of which approxi- mately 75% will be for construction and approximately 25% for right-of-way acquisitions; and WHEREAS, right-of-way acquisition has begun with construction be- ginning in 1986 with an anticipated completion date of 1995; and WHEREAS, the designated Blighted or Economically Depressed Areas closely correspond to the City of Lubbock Community Development Block Grant Target Area and the Urban Development Action Grant area; and WHEREAS, the Community Development Block Grant Target Area has numerous public projects designed to improve the housing stock and promote the development of public and community facilities. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: 1. THAT the determinations and findings recited and declared in the preambles to the Resolutions are hereby restated, repeated and incorporated herein as current, proper and lawful findings of the City Council of the City of Lubbock, Texas. 2. THAT the area of the City, conforming to the map attached hereto as an exhibit, which includes Census Tracts 2.01, 2.02, 3, 6.02, 7, 8, 10, 11, 12.01, 12.02, 13, 24 and 25, but excluding that portion of Census Tract 6.02 bounded by Broadway Avenue on the North, Avenue Q on the East, 19th Street on the South, and Avenue U on the West, is hereby designated as a Blighted or Economically Depressed Area under and for the purposes of the Act and Regulations promulgated by the Commission. 3. THAT the City Council request the Commission to approve com- mercial projects for financing under the Act and the Regulations within said Blighted or Economically Depressed Area, of the following types, to -wit: A. Major office complexes. B. Commercial facilities. C. Convention and related facilities; and D. Hotels and/or motels and related facilities. 0 E. Commercial activities contributing to revitalization and provid- ing S2rYiC2S to neighborhood residents located within and adjacent to Said Blighted Or Economically Depressed Area that will result in the improvement Of the high relative ratio Of UD£0pl0y0eDt existing therein by adding additional employment and 'ObS thereto. 4. THAT the City Council Of the City of Lubbock represents that it will review all proposed d85CrfptiOD5 for approval of specific projects for CU00SrCidl USS3 and in order to determine whether such projects are C0nSi5t8Ot with the City/S UhieCtiV85 for redevelopment and rehabilitation Of the Blighted Or Economically Depressed Area designated herein. 5. THAT the current Lubbock Industrial Development Corporation established under City Resolution #444, Will administer the Industrial Revenue Bonds program. Passed by the City Council this 16th day Of ]UO8, 1984. /s/ Alan Henry ALAN HENRY, MAYOR ATTEST: City Secretary /s/ Jim Bertram Jim Bertram, Assistant City Manager Michele Glisar, Assistant City Attorney Motion WOS made by C0UDCilwO0dD Baker, SeC0Dd8d by CDUDcil0dO Patterson, to pass Resolution Number 1759, with the exception that it leave out the south portion of CeUSU5 Tract 6.02, with the understanding that that is the portion bounded by Broadway, Avenue D and 19th Street, and AV8DU8 U. It will be passed with the consideration we will consider five categories out Of the seven. Motion passed 7 Yeas; O Nays. There being no further business, the meeting was adjourned at 12-15 P'M' ATTEST: LAURAN BLACK Deputy City Secretary READ AND APPROVED THIS 26th DAY OF JULY, 1984. ATTEST; LAURAN BLACK Deputy City Secretary THE STATE OF TEXAS COUNTY OF LUBBOCK Before me Bonnie McKee a Nota personally appeared Twi I a Aufi I 1 + ACeou pers Corporation, publishers of the Lubbock Aval being by me duly sworn did depose and say that sa. than fifty-two weeks prior to the first insertion of L-10955 No. 91521 ed copy of the N O t i e e is a t.. Avalanche -Journal on the following dates: J u I Y LUBBOCK AVALANCHE -JOURNAL Southwestern Newspapers Corporation Subscribed and sworn to before me this 6 t h day FORM 58-10 Mom` THE STATE OF TEXAS COUNTY OF LUBBOCK Apr Before me Bonnie McKee a Notary Public in and for Lubbock C k �� � �f t av personally appeared Twi I a Aufi i I s Account Manager of tlrax�°k#` )a Pu��ua�t iv t s� n pers Corporation, publishers of the Lubbock Avalanche -.Journal — Morning E�, b i 10 beingby me duly sworn did depose and say that said newspaper has been ublisht �' �'' Pp +i �? b, `e Leal Notice-22�� than fifty-two weeks rior to the first insertion of this a— of r` �P ye �� �m wo rd-S73.9 No 915191 at Lubbock County. Tex ���t+d� �nt- �41}� A� of 4111 r 1 tit i ed coy of the Notice is a true copy of the original and w ck Avalanche -.Journal on the followingdates: June 299 1984 anainid��taxA_ s�� L-10995 wn%neK�Y,wa�` Account Manager LUBBOCK AVALANCHE -JOURNAL n Southwestern Newspapers Corporation Subscribed and sworn to before me this 29 da FORM 58-10 19 84 "