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HomeMy WebLinkAboutPRDA MINUTES 1998-07-16 thir MINUTES OF THE 76th REGULAR MEETING OF THE PLYMOUTH ROAD DEVELOPMENT AUTHORITY OF THE CITY OF LIVONIA The 76th Regular Meeting of the Plymouth Road Development Authority of the City of Livonia, Michigan was called to order at 3:35 p.m., Thursday, July 16, 1998 in the 4th Floor Conference Room of City Hall. Members Present: Mayor Jack E. Kirksey Ms. Toni Mette Mr. Scott Grace Mr. Lowell Peterson Mr. Jerry Wordhouse Mr. Dennis Kujawa Mr. Mike Polsinelli Mr. Donald Gelinas Mr. Marvin Walkon Mr. Stan Anderson Mr. Adelard Raby Members Absent: Mr. Bill Pike (excused) 410 Others Present: Mr. John Nagy, Director Mrs. Doris Urbanski, Secretary Mr. John Iacoangeli, Beckett and Raeder, Inc. Ms. JoAnn Michaels, Beckett and Raeder, Inc. Mr. Ralph Williams, Livonia resident Mr. Mike Slater, Finance Director Mr. Jeffery A. Bryant, Economic Development Manager 1. Roll was called. 2. Adoption of June 4, 1998 Minutes: On a motion duly made, seconded and unanimously adopted, it was #98-22 RESOLVED,that the minutes of the 75th Regular Meeting held by the Plymouth Road Development Authority on June 4, 1998 are approved. Mr. Polsinelli, Chairman, declared the motion is carried and the foregoing resolution adopted. 3. Comments from Chairman: Chairman Polsinelli passed for review letters from residents and answers from the Mayor with regard to a Meijer's store, invoices from Beckett and Raeder and Fisher Communication Services, a letter from Council President Engebretson naming Brian Duggan to assist the Search Committee for a PRDA Director, 1 try and a letter to MDOT regarding a 10%retention from the contractor until progress completion of Phase II. 4. Request from Planning Commission for a recommendation in connection with the proposed zoning change for the Millennium Park Development proposal. Mr. Nagy explained that at the recent Planning Commission Public Hearing on a rezoning request for a portion of the Ladbroke race course from manufacturing to commercial, the Commission tabled this matter to July 28, 1998. One of the reasons was they felt it might be helpful for them to have a recommendation from the PRDA. The feeling is that the commercial business in the Millennium Park may spill over to the Plymouth Road shops. Mr. Anderson reported that at a recent Civic Association meeting regarding this item, the consensus was 1) the plan would contribute year-around revenue rather than the sporadic earnings of the DRC; 2) a Lowe's or Meijer's would not adversely affect the businesses on Plymouth Road, and in fact may effect a spin-off to the shops on Plymouth; 3)there would be a great increase in employment opportunities. Mayor Kirksey said he shared Mr. Anderson's enthusiasm on finding a different use for the DRC property, but the Millennium Park project would, in his opinion, have a negative impact on businesses at Wonderland Mall and Livonia Mall. The commercial zoning would be well beyond a Lowe's and Meijer's. Also, warehouses do not employ many people. Mr. Walkon said their calculations showed a conservative $1.4 million in taxes to the City of Livonia if this project is approved. Manufacturing zoning alone could not recoup the purchase price of this property. Mr. Grace noted that as many big box stores failed as small businesses, but we could not turn them down because they might go out of business. This location provides easy access to an expressway and it is not in a residential area. He expressed a problem with having to drive on the Schoolcraft service drive to access the property for east and west traffic, and the Costco parking lot could not be accessed from this project. He also expressed concern for the future of the restaurant on the corner that was recently redone. His opinion was that this would not adversely affect Wonderland Mall and is in favor of some commercial rezoning. Mr. Wordhouse agreed with Mr. Grace and had expressed those opinions at the Planning Commission Public Hearing. He believes that with proper marketing, this development could benefit the businesses on Plymouth Road and the malls. On a motion duly made by Mr. Wordhouse and seconded, it was #98-23 RESOLVED, that the Plymouth Road Development Authority does hereby recommend to the Planning Commission the approval of commercial zoning for 74 acres of the proposed Millennium Park development. 2 Mr. Peterson expressed concern that because there was 200,000 sq. ft. of store (W space available there, not knowing what would go in there could adversely affect Wonderland Mall in the future. Mr. Nagy stated that anything over 30,000 sq. ft. was not a permitted use, but a waiver use, and because this development will be rezoned to commercial. Site plan approval will be required by the Planning Commission and the City Council. Mr. Grace expressed an opinion that this could be a catalyst for more businesses locating on Plymouth Road and did not see this development having a negative impact on Plymouth Road. Mr. Walkon said the development has already made an agreement with Costco for ingress and egress to their site. Also, it would be cost-prohibitive to just build industrial, and he is going on record here that there will be no small businesses in this development. Mr. Peterson asked what would happen to this property if this development didn't go in, and Mr.Nagy replied that it is a choice piece of property and would not have a problem being developed. In his opinion, any other offer would parallel this. A mix of heavy industrial, some commercial and maybe office would work here as it is close to the railroad and expressway. Mr. Wordhouse expressed concern about the strong movement of developments to the north. Strip malls in these areas appear to be doing well. Mr. Grace agreed that Livonia should take advantage of this offer to expand in the south end. Mr. Polsinelli disagreed with the synergy projected with this development. There is competition now between Livonia Mall and Wonderland Mall and this would only hurt Wonderland Mall. One of the reasons for the demise of small businesses is the big box concept; convenience is the "name of the game". The shopping center at Six Mile and Haggerty took business from Meijer's at Eight Mile and Haggerty. Mr. Anderson said they were forgetting about the impact that another 4,000 year- around jobs might have on our economy;people with earning power to spend in Livonia. He didn't think the big box stores would compete with Plymouth Road. They would not replace furniture stores, men's clothing stores, or stores like a Michael's craft store. Mr. Gelinas asked Mr. Walkon about the amount of parking because 4000 employees would need a lot of parking. Mr. Walkon did not have that information. A roll call vote on the foregoing resolution resulted in the following: AYES: Grace, Peterson, Raby, Anderson, Wordhouse NAYS: Mette, Gelinas, Kujawa ABSENT: Pike ABSTAIN: Kirksey, Walkon, Polsinelli 3 tre Mr. Polsinelli, Chairman, declared the motion is carried and the foregoing resolution g g adopted. Mr. Nagy next introduced, and Mayor Kirksey welcomed,Jeff Bryant, the new Economic Development Manager. Mr. Bryant was formerly the Economic Development Manager for Toledo Edison. 4:40 PM - Marvin Walkon left the meeting at this time to attend a fund raiser for Councilman John Walsh. The Board was extended an invitation. 5. Budget Report: Mr. Slater explained the arbitrage requirements on the DDA bonds recently issued to be spent as follows: 10%within 6 months of bond issuance 45%within 12 months of bond issuance 95% within 24 months of bond issuance 100% within 36 months of bond issuance As of June 30, $943,000 of the bond money has been spent. $3.5 million(45%) must be spent by May 1999. Future financial statements will be issued in two parts: A Construction Fund Balance Sheet showing expenditures from the bond proceeds, and a Special Revenue Fund Balance Sheet for other expenditures. The May 31, 1998 Balance Sheet for the Special Revenue Fund shows assets of $2,493,729.20, and the Construction Fund has total assets of$6,851,191.75. The pending Peregrine plant closing will not affect us for the next year. Livonia passed on purchasing the property next to Archie's restaurant. Livonia Chrysler- Plymouth bought it. The June 30, 1998 Balance Sheet for the Construction Fund shows total assets of $6,427,095.45. The June Special Revenue Fund has total assets of$2,502,002.17. 6. Beckett & Raeder: John Iacoangeli introduced to the Board JoAnn Michaels who is the new Resident Project Manager for Phase I and Phase II. Ms. Michaels reported that the majority of the problems have been with the landscape contractor. A meeting was held and a schedule worked out. Jacobs Electric has finished Phase I and will remove the light poles within the next few weeks. Mr. Grace asked whom should be called if there are problems and Mr. Iacoangeli requested that Mr. Nagy be called first and he will then call BRI. The contractor is now in the penalty phase for being behind schedule. The sprinkler system has not been installed. Mr. Iacoangeli said a meeting is held every Monday morning between BRI and the contractor to discuss proceedings. Bill Pike, Construction Committee, attends the meeting on a regular basis. 4 Coe Easement update for Phase II: Of the 32 easements, 20 are signed, 10 have given affirmative replies and will be signed soon, and 2 are a problem (Allstate and Finne Tire). Allstate has no right-of-way and wants to be compensated in the amount of$5,000. Mr. Iacoangeli showed designs and colors for the light pole banners and the Board made a selection. The cost is $125 each. Discussion followed on how many banners to display, and it was agreed that these should be interspersed with other banners such as holiday or special event banners. Mr. Iacoangeli will return with further information. Bids will be out for a monument sign at the park on Inkster Road. BRI has begun the design work for Phase III. 7. Reports from Committees: Public Relations Committee: Mr. Anderson passed out copies of the summer edition of the PRDA newsletter featuring two Plymouth Road businesses (Wall Street Travel and Bill Brown Ford) and an article on the bond issue by Mr. Polsinelli. This issue was mailed only to the businesses in the PRDA district. Vacant Buildings Committee: Mr. Grace passed around a real estate notice listing Comerica's security building. Also, the Peregrine plant has served a notice of their closing. Construction Committee: No report. Inspection Committee: No report. P p Search Committee: Chairman Polsinelli commented that it has been 9 months since the formation of this committee to find a director, and he believes a more concerted effort should be taken. This will head topics for discussion at the next PRDA meeting. 8. Update on Plymouth Road Projects: Mr. Nagy reported that the deed for the gas station at Laurel and Plymouth has been cleared and Mr. Tanski's request is now in the Committee of the Whole. The request for the Legacy Restaurant is proceeding and they have recently appeared before the Zoning Board of Appeals because of the building encroachment. The Italia Jewelry store is still waiting for an appraisal of the property in the rear for parking. The property next to Archie's Restaurant was bought by Livonia Chrysler-Plymouth, who are now selling Jeep automobiles. If at such time the Ventura property is made available, they are willing to "flip"these lots in order to have Milburn Avenue realigned. 9. Polling of Members: Mrs. Mette strongly voiced her opinion against McMullen and Assoc. Their crews do not show up for work and their property has looked bad for a long time. Chairman Polsinelli will speak to Bill Pike and the Construction Committee in this regard, and Jerry Wordhouse said that this was proof that we need someone on site for control. 5 41100' Mr. Anderson reported that Dunkin Donuts is unhappy with its frontage because they have lost parking spaces. 10. Adjournment: On a motion duly made, seconded and unanimously adopted, the 76th Regular Meeting held by the Plymouth Road Development Authority on June 16, 1998 was adjourned at 6:50 PM. The next meeting of the Plymouth Road Development Authority will be held on August 6, 1998. 2(k-6-41---1-4Lfr Doris Urbanski, Secretary LW 6