Citation in context
August 13, 2019 — Meeting Minutes
Cited passage
The motion passed unanimously on a voice vote. AN ORDINANCE TO CONSIDER APPROVING A PURCHASE AND SALE AGREEMENT FOR 8049 FORSYTH BOULEVARD
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Interim City Manager Watson reported that this item was originally on July 23, 2019 agenda, and it was tabled to a different date. Staff is now re-presenting it. On April 24, 2015, staff issued a request for proposals related to the development of City-owned property located at 8049 Forsyth Boulevard, currently a surface parking lot. Staff received four responses by the August 3, 2015, deadline.
On December 20, 2017, the City entered into a purchase and development agreement with Flaherty & Collins. Flaherty & Collins proposed building a 22-story, 457,575 square foot mixed-use building containing 7,852 square feet of first floor retail, 228 rental residential units and 324 structured parking spaces. The purchase price was $1,100,000. The purchase and development agreement with Flaherty & Collins have expired and is no longer in effect.
Staff has since negotiated with another one of the original RFP respondents, 8027 Forsyth Acquisitions, LLC which is a related entity to US Capital, formerly known as Koman Development.
8027 Forsyth Acquisitions, LLC proposes to build a multi-story Class “A” office building that will have approximately 166,000 square feet of office space, have self-contained parking, and have ground floor retail space of approximately 13,000 square feet, which retail space shall include an arts and entertainment venue. The proposed purchase price is $2,625,000.
Scott Haley, 8027 Forsyth Acquisitions, LLC addressed the Board introducing Jim Koman, 8027 Forsyth Acquisitions, Chuck Kem, Chief Financial Officer at Commerce Bank, Kyle Chapman, Barry- Wehmiller Real Estate Group, and Dan O’Connor, head of construction.
Mr. Haley provided a brief background of the project.
Mr. Koman provided a PowerPoint presentation to the Board.
Mr. Kem addressed the Board providing a summary of Commerce Bank’s support for the project.
Mr. Chapman addressed the Board providing a summary of the expansion needs for Barry-Wehmiller and its support of the project and to the City of Clayton.
Alex Berger, 8025 Venetian, former Ward 3 alderman, addressed the Board in support of the project referencing the Downtown Master Plan, economic sustainability, and retention of corporate businesses.
Alderman Berkowitz expressed his questions and concerns regarding: (1) if the building is fully leased; (2) if the garden terrace is open to the public (at all times); (3) the 20 year limitation on the arts and entertainment portion of the project is not long enough; (4) feels that the selling price of $2.6 million has been substantially discounted compared to the lot being valued at $12 million; (5) he would like an appraisal done; and (6) do another RFP.
Alderman Boulton expressed her questions and concerns regarding: (1) the RFP (2016) as it relates to Flaherty & Collins, the previous developer, and the plan, at that time, to work on a joint parking arrangement; (2) they did not work together with Flaherty & Collins to come to a solution; (3) feels that the City placed on hold the former developer due to wanting the parking to be more efficient; (4) very little retail proposed for the project; and (4) feels that there was trust lost and there has been no transparency.
Alderman McAndrew expressed the interests of Commerce Bank’s involvement and how she would like to see a shared garage and if there is a future opportunity to convert into a different use with the possibility of less cars.
Commission’s certification of the August 6, 2019 Municipal Election results. Alderman Winings seconded.
City Clerk Frazier swore in Susan Bradley Buse, Ward 2 Alderman.
7:09 p.m. Alderman Buse took her place with the Board at the dias.
PUBLIC REQUESTS AND PETITIONS
None
Alderman Buse took her place with the Board at the dias. PUBLIC REQUESTS AND PETITIONS
None
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A PUBLIC HEARING (FOR DISCUSSION ONLY) – AN ORDINANCE TO CONSIDER AMENDING TITLE IV “LAND USE”, CHAPTER 405 (ZONING REGULATIONS) OF THE MUNICIPAL CODE OF THE CITY OF CLAYTON, MISSOURI, ARTICLE X “PLANNED UNIT DEVELOPMENT DISTRICT”
Mayor Harris noted that the Public Hearing remains opens.
Interim City Manager Watson reported that this item was continued from the July 23, 2019 Board of Aldermen meeting until all the Board members could be present for the Public Hearing.
This a public hearing to solicit input regarding a staff-initiated amendment to Chapter 405 (Zoning Regulations) Article X. Planned Unit Development District. Staff and the City Attorney’s office have identified areas of the regulations that are unclear, contradictory to other code required processes and in general, need updating.
Commencing on May 6, 2019, the City of Clayton Plan Commission has held six public hearings on these items and on July 15, 2019 recommended unanimous approval of the attached ordinance. The Board of Aldermen have, commencing on May 28, have held five public hearings on this item.
Alderman Boulton expressed concern regarding Section 405.1370 - Mixed Use requirements and that the absence of the percentages (i.e. 80%) could lead to non-mixed uses.
Susan Istenes, Planning Director, confirmed that the Plan Commission recommended removing the percentages; but stressed that there is no change in the requirement to have retail and other non- residential uses located on the ground floor.
Alderman Berkowitz commented that we could find mixed-use(s) in several different ways, (i.e. rooftop restaurant).
Alderman Lintz added that the rationale of the percentages depends on the size of the building(s); there are many retail establishments that only need a small space. Therefore, the intent is to get traffic on the street. His opinion is that forcing a larger percentage that must be distributed among the building seems to be taking the intent further than originally had.
Motion made by Alderman Boulton to amend Section 405.1370, D – “…allows for mixed use development. The no use exceeds 90% of the gross floor area of the primary structure...” Alderman Berkowitz seconded.
Alderman Winings expressed concern that placing a percentage on the requirements will “tie their hands’ he will be voting against the amendment.
Alderman Boulton withdrew the motion.
Mayor Harris closed the public hearing.
Motion made by Alderman Winings to table Bill No. 6734.1, an ordinance to consider amending Title IV “Land Use”, Chapter 405 (Zoning Regulations) of the Municipal Code of the City of Clayton, Missouri, Article X “Planned Unit Development District” until a future meeting. Alderman Lintz seconded.
The motion passed unanimously on a voice vote.
AN ORDINANCE TO CONSIDER APPROVING A PURCHASE AND SALE AGREEMENT FOR 8049 FORSYTH BOULEVARD
Alderman Boulton expressed her questions and concerns regarding: (1) the RFP (2016) as it relates to Flaherty & Collins, the previous developer, and the plan, at that time, to work on a joint parking arrangement; (2) they did not work together with Flaherty & Collins to come to a solution; (3) feels that the City placed on hold the former developer due to wanting the parking to be more efficient; (4) very little retail proposed for the project; and (4) feels that there was trust lost and there has been no transparency. Alderman McAndrew expressed the interests of Commerce Bank’s involvement and how she would like to see a shared garage and if there is a future opportunity to convert into a different use with the possibility of less cars.
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Alderman Lintz asked that the architect share ideas to address the concerns on the garage. Mr. Haley stated that there have been some conceptual changes to reduce the appearance of the garage, and emphasize architectural components at that corner.
Alderman Winings stated that this has been discussed for some time and they have heard additional information since the last meeting and feels this is a good project.
Alderman Boulton stated that there was an RFP, received several projects, chose a project, but unfortunately lost it. She feels that doing another RFP would be the most transparent and the best way to handle the City’s money. If she voted in favor of the project, she would not be doing what’s best for the public trust and that would be problematic.
Gary Carter, Economic Development, provided examples of market values for a couple of commercial properties.
Alderman Berkowitz expressed again his concerns for the market value of the proposed property and how the project relates to the Downtown Master Plan.
Alderman Lintz also commented in referencing the Master Plan noting that there is a process in place and unless we (the City and the Board) are pleased with the building there will not be a PUD.
Alderman Buse commented that all these issues are why we have processes. She appreciates them pushing their vision forward and adjusting to the circumstances of the City where it is today and hopes that it continues. She stressed the importance of community investment and community stewardship being part of the process and that this Board looks for that as it continues to develop. It is exciting to develop that corner, and this is an opportunity that has been through a lot of the stages already and hopes that the work can go forward.
Alderman McAndrew commented that there are several different things why this is a good project. Four years ago, the developer was going to pay $1.1 million and for an apartment development, now it is for significantly more. We have some incredible corporate partners that will inhabit this building, partners that are already headquartered in Clayton. Things are happening in the Cortex in the City of St. Louis, but we also must look out for Clayton. We want to keep Barry-Wehmiller in Clayton and am persuaded by what we’ve heard, and I hope Commerce Bank ends up expanding. It is important to keep people here in Clayton. Although, we are not running at a deficit, the City is not keeping up with the revenues. This project will bring in nearly $300,000 a year versus now at $22,000 a year and our expenses continue to go up. She is comfortable with the contract as Alderman Lintz said, “in a sense that there won’t be a PUD unless we are happy with the building”. She noted that she will be voting in favor of the project.
Alderman Berkowitz commented that this is a bad idea and a bad process, an RFP has not been done since 2015. This is the last piece of surface property in the downtown area that the City will have any control over. He stated that the property is going to be sold for $9.5 million less than its value. There’s no need to give an incentive for this corner. Five years ago, Chapman Plaza was not in Shaw Park and wasn’t the beautiful corner that it is now, and he would like for the City to go out for another RFP.
Alderman Boulton added that she is feeling a lot of pressure because of the players – Barry-Wehmiller and Commerce and feels that the City has not done its due diligence and objects to the process not being done transparently.
Alderman Winings commented that there was an RFP done four years ago, no one came close to a $12 million valuation, at that time the one developer backed out. He stressed his objection to the characterization that this has not been transparent.
Alderman Winings commented that there was an RFP done four years ago, no one came close to a $12 million valuation, at that time the one developer backed out. He stressed his objection to the characterization that this has not been transparent.
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Mayor Harris commented that she values the long-standing corporate participation in the Clayton and appreciates all the concerns brought tonight. Over the years the City has brought a lot of residential space added a lot of residential space to our downtown putting a dent in the Master Plan. We are also doing lots of efforts to increase vibrancy in to encourage young people to move into our downtown and stay. She believes this is a good strong development and will be endorsing its passage.
Alderman Winings introduced Bill No. 6744, an ordinance to approve a purchase and sale agreement with U.S. Capital for 8049 Forsyth Boulevard to be read for the first time by title only. Alderman Boulton seconded.
City Attorney O’Keefe reads Bill No. 6744, first reading, an Ordinance Approving and Authorizing Execution of a Purchase and Sale Agreement for 8049 Forsyth Boulevard by title only.
The motion passed on a roll call vote - Alderman Winings – Aye; Alderman Boulton – Nay; Alderman Lintz – Aye; Alderman Berkowitz – Nay; Alderman McAndrew – Aye; Alderman Buse – Aye; and Mayor Harris – Aye.
A RESOLUTION TO CONSIDER AUTHORIZING THE OFFERING FOR SALE OF SPECIAL OBLIGATION REFUNDING AND IMPROVEMENT BONDS
Interim City Manager Watson reported that the City will be issuing bonds for two items. The first purpose of the bonds is the cost of one-half of the renovations and expansion of The Center of Clayton. The other purpose is the refunding, similar to refinancing, of an outstanding bond issue where the City can experience savings over the lifetime of the bonds. The total estimated amount of bonds to be issued is $12,975,000.
Motion made by Alderman Winings to approve Resolution No. 19-10, authorizing the sale of the Special Obligation Refunding and Improvements Bonds and authorize the execution of a Redemption Notice in Connection. Alderman Boulton seconded.
The motion passed unanimously on a voice vote.
AN ORDINANCE TO CONSIDER APPROVING GILMORE & BELL AS BOND COUNSEL FOR THE 2019 SPECIAL OBLIGATION BOND ISSUE
Interim City Manager Watson reported that Gilmore & Bell has provided excellent bond counsel services to the City of Clayton related to the issuance of bonds for the past several years. A proposal for services was received from Mark Grimm, Gilmore & Bell, to serve as bond counsel in connection with the issuance of special obligation bonds to refund (refinance) an outstanding bond issue and to fund renovations and expansion of The Center of Clayton. The amount of bonds to be issued is approximately $12,975,000. The bonds will be competitively bid.
Todd Goffoy, Financial Advisor, Piper Jaffray, addressed the Board to answer questions.
Alderman Winings introduced Bill No. 6745, an ordinance to approve Gilmore & Bell as bond counsel for the 2019 Special Obligation Bond issue to be read for the first time by title only. Alderman Boulton seconded.
City Attorney O’Keefe reads Bill No. 6745, first reading, an Ordinance Designating Gilmore & Bell as Bond Counsel for the City of Clayton, Missouri, for the 2019 Special Obligation Bond Issues and Establishing Terms and Conditions for Such Services by title only.