The regular meeting of the City Council of the City of Shreveport, State of Louisiana, was called to order by Chairman Roy Allen Burrell at 3:20 p.m.,Tuesday, August 24, 1999, in the Council Chamber of City Hall, 1234 Texas Avenue.
Invocation was given by Councilman Spigener.
On roll call, the following members were present: Councilmen Huckaby, Stewart (arrived at 3:45), Carmody, Carmody, Serio, Spigener, Shyne and Burrell. 7. Absent: None.
Motion by Councilman Shyne, seconded by Councilman Serio for approval of the Minutes of the Administrative Conference of August 9, 1999 and the Minutes of the Regular Meeting of August 10, 1999. Motion approved by the following vote: Ayes: Huckaby, Carmody, Carmody, Serio, Spigener, Shyne and Burrell. 6. Nays: None. Absent: Councilman Stewart. 1.
Councilman Burrell: As I understood, Councilman Stewart is in town; maybe he'll be showing up here later.
Awards, Recognition of Distinguished Guests and Communications of the Mayor Which Are Required by Law. Mayor Hightower: I do have some communications, but I think you wanted to go through some, perhaps some Recognitions first, would that be more appropriate. Councilman Burrell: Well take Recognitions at this time. Do you have any? Councilman Serio: I believe that Ms. Spigener has some guests that we would like to recognize today for today's Council session. Councilman Spigener: I'd like to introduce Charles Bryant. He is one of our civic leaders that's very involved in civic affairs here in our city. He is hosting a group of international guests, they are business people, educators, and civic leaders and they are from Russia, I believe, and I'd like for him to explain what the program is that these gentlemen are participating in and maybe he'll want to introduce them. Mr. Bryant: These are five members from all over Russia, ranging from Siberia to St. Petersburg, Moscow to Orenburg near Katherstein. They are all members of the Russian government in some form or fashion. They are here on a program sponsored by the Library of Congress under the leadership of Dr. James Billington who developed this leadership program, exchange program, open house. And they are all over here for about a 10 day visit to learn our way of life, our form of government to get some exposure to hopefully to exchange their ideas with us and it is all part of the openness and better understanding of our two governments. I will be happy to introduce: Urie; Victor, our Interpretator Escort; Stan is a Professor from Moscow; and Alex is a businessman and also the leader of the Legislature of his area in Orenburg. We are delighted to have them over here and I know that they have been enjoyed meeting and learning from you. We appreciate you letting us come to sit in on the session.
Councilman Burrell: I don't know if I got this correct, did we did we get the name and address because we normally need that for the record. Mr. Bryant: I can provide that for at some other time. Councilman Burrell: Well, I'm saying for yourself not these gentlemen. We normally do that as part of our record, is that necessary on this? Mr. Thompson: No.
Mayor Hightower: I did have the pleasure of meeting with this delegation both at Mr. Bryant's house this past weekend and then also today in the Mayor's Office. And like you said, we certainly welcome them to town and hope they have an enjoyable stay and hopefully it is a learning experience and Charles we certainly appreciate your hospitality in hosting our guest.
Councilman Serio: I'm real pleased to have you town and I'm sorry that I was not available to make the presentation Friday evening. Hopefully, I see that we have members from the Chamber of Commerce here and if there is an opportunity to visit with the Chamber of Commerce that if there are opportunities with the City of Shreveport, I'm sure that we'd be glad to see what we could work. Mr. Bryant: We have had and continue to have a full schedule. Councilman Serio: And also remember that there are tax free shops in the City of Shreveport for international visitors as well. Mr. Bryant: Right. Councilman Serio: That is something as well to consider.
Councilman Carmody: I think it is very exciting to see all of these gentlemen to come to Shreveport to see how business is conducted in the state of Louisiana and the city of Shreveport, it is a pleasure to have ya'll here.
Councilman Burrell: Again, we would like to welcome you here. And since our economy now is more on an international basis rather than on a national basis, I'm sure we have a lot to learn from you all both on the social end as well as the economic end, so again we appreciate you coming and visit us again.
Mayor Hightower: I do have one other special guest that I would like to recognize that is with us, it is also a government official. It is from the City of Memphis and he is the City Council "Super" City Council District, I understand. It is an at-large I think what it is, but he likes that work "Super", so Ricky Petes is with us today from the City of Memphis and we welcome you.
Councilman Burrell: Well when you get over here in Shreveport, your "super" might be a little smaller than our "Super", but we appreciate you coming. I met this gentleman before and he is very impressive and I'm sure you are doing a great job up in Memphis.
Councilman Shyne: I just want to let Ricky know that I was up in Memphis the last weekend and I don't know what happened, but it seems like you all ordered some excellent weather because I think it was about 81 degrees and I got back to Shreveport, and it was something like 101 degree. So, Keith, I don't know what they are doing in Memphis, but whatever they are doing, we need to do a little bit of it here.
Mayor Hightower: Yesterday, I talked a little bit about the phone call that we received from Washington, from Secretary Cuomo and also our delegation, Representative Jim McCrery and Senator Mary Landrieu and unfortunately Senator Breau was not able to join us on the phone, but they've talked to us about the awarding of the $1 million dollar BEDI grant for environmental clean up, namely in the Riverfront-Cross Bayou area. So, I'd like to take this opportunity, we've got some of the real responsible people here. Back when we took office, we said that we were going to have a full time grant writer and we knew it would pay off and I want to congratulate Edna Delphin, she's back there. This is her second grant that she's been able to obtain for the City. One was a $500,000 revolving loan and this one is a million dollar BEDI grant. And so if Edna would stand up and she didn't do it by herself. She had some help from Candance Higginbotham, is Candance here. Candance is now, she used to be a city employee and now she has gone and gone to work for HUD, but we certainly relied heavily upon her for this application. Arlena Acree, the Economic Development Director and Coordinator for the City was heavily involved in that. And also, I don't think Bonnie Moore is here today, but she was heavily involved, who works for Mr. Ferdinand and I certainly want to take my hat off and we all should as well to that set of hardworking employees that were able to bring home the bacon, so to speak. Councilman Burrell: I would ask them to stand up so if anybody need their help, at least they'll know who we are talking about.
Mayor Hightower: You are going to be asked to vote today on your agenda on Resolution No. 172 and it is something I think we are all familiar with, we are talking about the Section 108 loan, as it relates to the Red River Entertainment District in downtown Shreveport which should ultimately provide upwards of 700 jobs for our community, certainly tie into the convention center that was just passed by the voters and help stabilize and hopefully encourage events to occur inside that facility once it is constructed. Not only that, we've talked forever, since riverboat started coming to town about what we were going to do to bring some of those visitors off the boats and into the community and there has never been a real link to be able to do that. And we hope that this entertainment district will fill that void, bring those visitors in, get them to stay for more than 1 day, and let them understand that Shreveport is about more than simply coming to town for one day or one night and visiting the boats and that's the only thing you do. You eat, you drink, you sleep, and you go home. The entertainment district has the real potential, I think, of turning that around and exposing visitors to our City not to mention the extra quality-of -life that it may to our own citizens. So, with that, Mr. Chairman, if it is alright with you, we would like to call Larry Ferdinand forward to discuss the 108 loan itself, which is what the Council will have to consider today, so, if that would be alright with you, I'd like to call on Larry.
Mr. Larry Ferdinand: Very briefly, Section 108 loan is an element of the HUD's Community Development Block Grant program. Using the Section 108 loan guarantee, it provides for a source of funding for community projects such as this one. Now, one of the major requirements is that any program using Section 108 meets certain federal guidelines. This program meets two. One of them is it provides 51% of employment for low-to-moderate income persons. In addition to that, its removal of some slum and blight and we all know in this area, in Shreve Square, we have quite a bit of slum and blight; so, this is why we endorse this particular project.
Councilman Shyne: Mr. Ferdinand, I want to ask a couple of questions. In meeting the 51% of persons that will participate, I guess from the job standpoint, will we have something in place to make sure that part of it will be monitored? Mr. Ferdinand: That is exactly right. We have, resident in the Community Development Department, Mr. Shyne, are Monitors and we do monitor all of the projects in which our dollars are involved.
Councilman Shyne: Will we be looking at maybe employing persons from some of the programs that we have now, moving people from welfare to workfare? Will we be looking at that aspect? Mr. Ferdinand: Exactly right. Also, resident in the Community Development Department is Workforce Development group that deals with various and sundry programs that deal with welfare-to-work persons other low-to -moderate income persons and we'll make sure we coordinate our efforts as much as possible and that is one that we will be working with.
Councilman Shyne: Will we get some idea of what jobs will be created in order to make sure that we have our workforce ready to fill those types of skills so we can start getting persons in training programs to be able to fill the number that we will need? Mr. Ferdinand: Yes, sir. This Administration has been very, very careful about tightening some things that hadn't happened in the past and we have some things, some corrective measures in place that deal with some of the problem we've seen in the past whereas coordinating of efforts have not been that well and I think we have things in place to prevent that from happening in the past.
Councilman Shyne: My concerns all along has not been so much against developing the entertainment district downtown, we need that. But I just want to makes sure that those persons that I represent that come from disadvantaged neighborhoods are able to benefit from this program. I wouldn't want us to loan out $5 million dollars and then persons who this money was designated to help didn't really get a fair shake at trying to get some jobs because I've had some calls from people who are saying: Joe now, I'm on welfare right now. Will I get a chance to get some of these jobs? And the only thing I can tell them is, yes but I don't want to lie to them and that is why I want to make sure. Mr. Ferdinand: You know, we are located in the City Hall Annex and we receive requests for services everyday, and it is on the second floor over there, is where they would come, and right now, the Community Services Department which eventually will change a little but, the second floor is where they would come to request services. That is where the Housing group is as well as the Workforce Development folks who deal with JTPA; so, the second floor is where they would come to request for certain be it housing or job training.
Councilman Shyne: I want to make sure that your office stay on top so that we make sure that we reach out in the community and find these persons who are getting off of welfare or whatever it might me and give them an opportunity to fill some of these positions. Mr. Ferdinand: We do our best using the media as well as non-profit organizations to let everyone know what kind of services we provide in terms of advertising, as much as we could as well as putting in the hands of these organizations, brochures about what we have to offer. We need to do better and we are stepping that up, but we do have that in place and we just need to expand it some.
Councilman Shyne: Because I feel like it is our moral responsibility to turn a lot of tax eaters into tax payers and if this program will do that, this is why I want to make sure that we get the maximum out of it. Mr. Ferdinand: We will definitely do that and keep you apprized too Councilman.
Mayor Hightower: Next, I would like to call on Marshall Jones, he is a partner in the Red River Entertainment District and he wants to talk a little bit about, and maybe answer some of Councilman Shyne's questions on, employees and hopefully what will happen from a training standpoint and the group's commitment.
Mr. Marshall Jones: Before I give my comments, Councilman Shyne, let me tell you what specifically we have in mind, two things. 1. A model for a workforce development program already exist on Beale Street in Memphis. Perhaps some of the representatives of, one of my partners, can talk about that and what's being done on Beale Street to facilitate the movement of persons from welfare to the workforce, it is a very viable, very workable project that we can easily facilitate and make a part of our project. 2. Additionally, and I think Ms. Higginbotham may be able to give you more information than I can, but my research indicates that Southern University has a viable program already that we can bring in under our umbrella to help bring young people or persons that are on welfare into our job market that aren't there now and that's part of what my comments are going to be about in a minute when I talk about the additional 700 jobs. They are not jobs we are taking from somewhere else and its moving over to our side of the riverfront, but that is a key part of what our plans are and Beale Street has addressed that problem. A Performa and Entertainment and Management Company has a job development program inside of their offices so that, instead of just interviewing people, they interview them and find out what their particular aptitudes or desires and in the potential workforce are and then put them with people that can facilitate that movement from being a young person never being employed before or being on welfare and that is particular in line with some of the national objectives of Section 108.
My name is Marshall Jones. For those of you that don't know me, I'm a local Shreveport citizen all my life. My business address is 2124 Fairfield in Shreveport. I'm a member of and partner in a entity called Red River Entertainment Company, LLC. With your permission, I'd like to introduce my fellow partners, present partners in the entity that I represent today, would that be okay? I'd like to first introduce Terri McGuire Lay. Ms. Lay is also a Shreveport resident, has been involved in various businesses in town, including Shreveport Refrigeration, SR Superstore, family business for many years. They sold eight or nine years ago and about five or six years ago, I talked Ms. Lay or she talked me into beginning to acquire a lot of buildings in downtown Shreveport. She is somebody that I've enjoyed a relationship with since, literally, we were teenagers and somebody that I enjoy moving the riverfront forward with. Also, is President Joe Rodriguez. Joe is a native of Puerto Rico. He presently resides in Germantown, Tennessee, a suburb of Memphis. Joe is President of Hospitality Ventures, Inc. That is a full service entity that provides management of hotels, restaurants, nightclubs, and other related entities. Joe has a 20 year business relationship with Mr. Jack Pratt of Hollywood Casino. It is through Joe, that quite frankly, part of our plans for riverfront are coming to fruition, part of equity that you'll hear about in my comments if you allow me to continue after my 3 minutes, include approximately $4 to $5 million dollars of improvements Hollywood Casino is providing to our group to facilitate the connection of the old Shreve Square area and quite frankly we are leaving that name behind to the Hollywood-Harrah's infrastructure. Mr. Rodriguez has been very, very helpful not only in facilitating the negotiations with Hollywood, but has contacts throughout the country, but not only hotel, restaurant and nightclub businesses, but also retail and has been able to put us in contact with persons and entities that are coming to Shreveport or interested in coming to Shreveport, and quite frankly, but for them would not even know where we are. Also, another one of our present partners is Mr. John Elkington. John is President and Chief Administrative Officer of Performa Real Estate and Management Company. John has quite a story to tell to be told by others today. John is the Developer of Beale Street which 15 years ago, looked worse than Shreve Square and Commerce Street. And the story that will be told by persons that know John and know about Performa is that Beale Street is now the largest tourist attraction in the state of Tennessee; it is bigger than Elvis. And they provide hundreds and hundreds of jobs for the minority community there. I think the percentage of minority ownership of the businesses is approximately 40%, 35- to 40%. If you go to Beale Street now, it is America's finest example of what urban renewal is all about. It is inclusive, it is accessible, its fun, its growing. I think their annual sales are increasing 15 to 20% a year, they are expanding. Pat O'Brien's is going to Memphis. Hard Rock. . . . Councilman Burrell: Let me apologize, I just found out that we were in violation of one of our city ordinances. This has already been a subject to a prior hearing and it was just brought to my attention that, that is the case. So, if you could just wrap it up since you've already started, we can get back on track. Mr. Jones: How may more minutes, do I have Mr. Burrell?
Councilman Huckaby: Mr. Chairman, I was going to ask you after you allowed this happen, to allow persons from the other side who might want to speak in opposition to this, to have the opportunity to speak, to level the playing field. This is in violation of Council Rules because it was subject to a public hearing. We've allowed them to present their side, and since we've done that, we ought to allow persons from the other side who oppose this to come up and speak at this time. Councilman Burrell: Councilman Huckaby it was just brought to my attention. As soon as it was brought to my attention, then I corrected the matter and I didn't want it to be a debate on this. You have people in the public, at this point, is what you are saying that want to talk in opposition to it? Councilman Huckaby: Yes, sir. If you are going to allow this to continue, I think you ought to allow persons from the other side to come forward and speak. Councilman Burrell: Oh, no, that is the reason why I'm trying to bring it back to the point that we would actually be in conformance with our law. It was just brought to my attention, that is the reason I stopped you abruptly and apologize for that. So, I really would need for you to, at this point, I guess cease and desist, if you don't mind. It was just an error on our part, Councilman Huckaby, on this. Now, lets get back on track here. I guess we are giving our Russian friends a good example of good old American politics.
Mayor Hightower: Off of this particular subject, but I was remiss a minute ago when we were talking about the $1 million grant that we were notified of yesterday. Tari Bradford is here that is representing Senator Mary Landrieu's office, so Tari if you'd stand up and certainly tell the Senator we appreciate her help in that, I'd appreciate it.
Councilman Burrell: I would like to get a piece of information at this time, but I guess I can really wait until we get down to the vote on that particular ordinance; so, I'll wait on that. Candance, just don't leave for me, please, I need some information from you. Right, and we can just wait until we get there.
Mayor Hightower: Then perhaps what we could do, there are I think several partners and people that have an interest in that particular issue when we come up today, that would be available for question and answer, should the Council need those and those would include, obviously, Candance, our Councilman from Memphis, and certainly any of the partners that are involved in the issue if anyone would have any questions.
Councilman Burrell: Let me get some direction on that, that would not be in violation to the rule of a prior hearing? Mr. Thompson: I can only state what the rule says. It says: No person shall be permitted to address the Council at any regular meeting or any administrative conference when the subject matter to be discussed has been or is scheduled to be considered at a public hearing called by the Council or by an office, department, commission, board or authority of the City. The Department of Community Development has held a public hearing on this so the Council would have to interpret its own rule in that regard. Councilman Burrell: Well let me ask you, if there are questions that the Council needs answers to, would that be considered discussion? Mr. Thompson: Well, it says: No person shall be permitted to address the Council, Ms. Glass might have comments. Councilman Burrell: Well, address the Council, to me means a forward act. Us asking questions to a person is, in my opinion, an inquiry. Mr. Thompson: The Council can certainly interpret its own rules. Ms. Glass: That is correct, the Council needs to make its own determination of the rule. If you chose, its possible that you could draw a line between allowing someone to speak on whatever extent of the subject they wish to and distinguish that from simply asking them a question for factual information and getting an answer. I will say that I think we've had situations in the past where that was attempted and the answer crossed that line. And I think again, you would have to make that interpretation yourselves and how to keep that in line. Now, the other thing to consider is it just a matter of your rules, however you do want to keep in mind you want equal protection so that you treat all persons similarly situation, the same.
Councilman Burrell: You heard the interpretation as I did, I guess Council Members when you get to that point, we'll make that determination at that time.
Public Hearings: None. Motion by Councilman Huckaby to suspend the Rules to add a resolution to the agenda, seconded by Councilman Shyne and unanimously approved. (Councilman Stewart arrived at this point.) Motion by Councilman Huckaby to add Resolution No. 176 of 1999 to the agenda, seconded by Councilman Stewart and unanimously approved.
Confirmations and/or Appointments: None.
The Council considered the Consent Agenda Legislation.
INTRODUCTION OF RESOLUTIONS AND ORDINANCES ON CONSENT:
Motion by Councilman Shyne, seconded by Councilman Spigener for Introduction of the Resolutions and Ordinance on the Consent Agenda not to be adopted prior to September 14, 1999. Motion approved by the following vote: Ayes: Councilmen Huckaby, Stewart, Carmody, Serio, Spigener, Shyne and Burrell. 7. Nays: None.
INTRODUCTION OF RESOLUTIONS:
INTRODUCTION OF ORDINANCE:
ADOPTION OF RESOLUTIONS AND ORDINANCES ON CONSENT:
Motion by Councilman Carmody, seconded by Councilman Shyne for Adoption of the Resolution and Ordinance on the Consent Agenda. Motion approved by the following vote: Ayes: Councilmen Huckaby, Stewart, Carmody, Serio, Spigener, Shyne and Burrell. 7. Nays: None.
RESOLUTION NO. 170 OF 1999
A RESOLUTION AUTHORIZING THE MAYOR TO ACCEPT THE DONATION OF $5775.00 FOR THE PURPOSE OF DEVELOPING THE SHREVEPORT FIRE DEPARTMENT IK-9 SEARCH AND RESCUE TEAM AND OTHERWISE TO PROVIDE WITH RESPECT THERETO
WHEREAS, Section 2.02c of the Code of Ordinances authorizes the City to accept gifts, donations, request, or grants for any purpose related to the power and duties of the City or related to providing for the welfare of the citizens of the City; and
WHEREAS, it has been determined that the establishment of a Shreveport Fire Department K-9 Urban Search and Rescue Team will significantly enhance the ability of the City to protect its inhabitants and public and private property; and
WHEREAS, All State Insurance has offered to irrevocably donate to the City the sum of $5775.00 for the development of said K-9 Team Search and Rescue Team for the improved protection of our citizens and community,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shreveport in due, regular, and legal session convened, that the Mayor is hereby authorized and empowered to accept on behalf of the City an irrevocable donation, on the basis of a donation, by All State Insurance the following described item;
A check in the amount of $5775.00
BE IT FURTHER RESOLVED that the Mayor is hereby authorized to execute any and all documents in connection with the acceptance of this donation.
BE IT FURTHER RESOLVED that the City Council wishes to express its appreciation, on behalf of the citizens of the City, to All State Insurance and its agents for providing the funds to support this Team.
BE IT FURTHER RESOLVED that if any provision or item of this Resolution or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications and to this the provisions of this Resolution are hereby declared severable.
BE IT FURTHER RESOLVED that all Resolutions or parts thereof in conflict herewith are hereby repealed.
ORDINANCE:
ORDINANCE NO. 121 OF 1999
AN ORDINANCE CLOSING AND ABANDONING A 15 FOOT-WIDE DEDICATED UTILITY EASEMENT IN THE NORTH 182.00 FEET OF LOT 1 OF THE DEAN TERRACE, UNIT NO. 8, SUBDIVISION, AND TO OTHERWISE PROVIDE WITH RESPECT THERETO.
BE IT ORDAINED by the City Council of the City of Shreveport, in due, legal, and regular session convened, that the 15 foot-wide dedicated utility easement located in the north 182.00 feet of Lot 1 of the Dean Terrace, Unit No. 8, Subdivision, as filed and recorded in Map Book 2050, Page 127, of the Conveyance Records in the NW/4 of Section 9 (T16N-R14W), Caddo Parish, Louisiana, and as shown and as indicated on the plat attached hereto and make a part hereof, is hereby closed and abandoned. (Note: The portion of utility easement herein closed and abandoned was previously dedicated on the Dean Terrace, Unit No. 6, Subdivision, per Book 1750, Page 185, of the said records).
BE IT FURTHER ORDAINED that a certified copy of this ordinance be filed and recorded in the official records of the District Court for Caddo Parish, Louisiana.
BE IT FURTHER ORDAINED that if any provision or item of this ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this ordinance which can be given effect without the invalid provisions, items or applications and to this end the provisions of this ordinance are hereby declared severable.
BE IT FURTHER ORDAINED that all ordinances or resolutions or parts thereof in conflict herewith are hereby repealed.
/s/Roy Allen Burrell, Chairman
/s/Arthur G. Thompson, Clerk of Council
RESOLUTIONS ON SECOND READING AND FINAL PASSAGE:
The Deputy Clerk read the resolution by title: Resolution No. 172 of 1999: A resolution authorizing the submission of an application for a loan under Section 108 of the Housing and Community Development Act of 1974 and to otherwise provide with respect thereto.
Read by title and as read motion by Councilman Shyne, seconded by Councilman Spigener for passage. The Deputy Clerk read the following amendments:
Amendment No. 1 by Councilman Huckaby and Councilman Shyne:
Amend the Resolution as follows:
Amend and reenact the first BE IT FURTHER RESOLVED paragraph to read as follows:
"BE IT FURTHER RESOLVED that the Mayor of the City of Shreveport is authorized to sign all documents necessary to complete the application for the Section 108 loan, and if the loan is approved by HUD, the Mayor or his designee shall be authorized to negotiate the terms and conditions of a loan with Red River, to include the ordinary and usual terms and conditions required in City contracts; the terms and conditions found in other paragraphs in this resolution, and only if the following actions, standards, procedures, terms and conditions are taken, adhered to and included in the contract when appropriate:
1. The creditworthiness of the project shall be determined by professional underwriting.
2. Any one of the major multi-state banks operating in Shreveport, shall be retained and reasonably compensated, for the purpose of determining creditworthiness of the project.
3. The overall underwriting criteria shall be the same standard as currently in force and effect at the bank performing the underwriting service, and in addition, shall comply with all ordinances, rules, regulations and statutes of the City of Shreveport, the State of Louisiana, and the United States of America.
4. No funds, advances, or grants will be directly released from the City of Shreveport, or guarantees initiated, until such time as firm and final leases are signed by all parties to occupy the premises, and said lease payments shall be sufficient to insure repayment of the loan.
5. All tenants must be certified to have AAA credit, and all tenants must sign firm leases, which guarantee the payment in full of all leases, even if the venture is unsuccessful.
6. All tenants must guarantee to keep the premises open and operating at the standard of similar operations in the City of Shreveport, for the term of the lease.
7. Regarding any leases under this project, the full amount due under all leases shall be earned at the inception of the lease, subject to being paid on a monthly basis, provided, that in the event of default of any lease, the entire balance shall become immediately due and payable.
Upon the successful negotiation to include the action, standards, procedures, terms and conditions contained herein, the Mayor shall be authorized to sign all documents required to complete the loan transaction between the City of Shreveport and Red River."
Motion by Councilman Huckaby, seconded by Councilman Shyne for adoption of Amendment No. 1. Motion denied by the following vote: Nays: Councilmen Stewart, Carmody, Serio and Spigener. 4. Ayes: Councilmen Huckaby, Shyne and Burrell. 3.
Amendment No. 2: by Councilman Huckaby and Councilman Shyne:
Amend the Resolution as follows:
Amend and reenact the third BE IT FURTHER RESOLVED paragraph to read as follows:
BE IT FURTHER RESOLVED that the loan authorized by this resolution shall be for the purpose of new construction and renovation within the Red River Entertainment district located within the downtown area of the City of Shreveport by Red River, and in addition to the actions, standards, procedures, terms and conditions that are required to be met before the Mayor is authorized to grant the loan, the recipients of the loan shall also agree to award or require the developer to award fifty percent (50%) of all architectural and engineering contracts, and fifty percent (50%) of all construction contracts to minorities, and to adhere to all other requirements of the City Fair Share Program.
Motion by Councilman Huckaby, seconded by Councilman Shyne for passage of Amendment No. 2.
Councilman Shyne: I would hope that my colleagues could find it in their hearts to support this amendment and I would hope that this amendment would not be asking too much. I would hope that you would understand that this amendment is also based on the good faith efforts of the honorable gentlemen who are seeking this loan, and I think what it will do, it will actually make a good faith effort toward trying to bring those who have traditionally been left out of the main economic stream, and I know that this is what the Administration and this Council has been working on for the last eight or nine months. And I just feel like it is the right thing to do and I hope that we can find it in our hearts to support this and I don't think that, this is asking too much.
Councilman Burrell: Mr. Mayor, do you have any comment on this because you do have your Fair Share Plan and I just want to take opportunity to give you that privilege? If you do, if not, it is up to you. Mayor Hightower: I'll be glad to do that. I did personally meet with Mr. Jones who is a partner in the partnership and he has assured me that even though this is a public-private venture, that the Fair Share Plan would be adhered to at a minium and that their goal would be to exceed the Fair Share program, so I'm comfortable that they will do that and certainly, we will want to, along the way, monitor that along with them to be sure that, that is indeed the case.
This amendment itself though, I think, talks about two programs, it talks about 50% and it talks about Fair Share. Now, I would hope that the chips will fall where they may and if Fair Share produces a 50% participation on this project that, that might happen, but at this point that is up to the Council as to whether we hold their feet to the fire for 50% of the project, but I am comfortable after talking with Mr. Jones, that they will do everything that they can to be sure that we exceed the Fair Share minimums.
Councilman Huckaby: Mr. Mayor, this assurance that you have with Mr. Jones, is it in writing? Mayor Hightower: I'm sorry. Councilman Huckaby: This assurance that you have with Mr. Jones about a non-participation, is it in writing? Mayor Hightower: I don't have it in writing, but I would be glad if you would like to have Mr. Jones come forward and assure us that he will deliver that to us in writing, I'll be glad to.
Councilman Huckaby: I don't want to hear anything. I want to know what's in writing. Mayor Hightower: We can make that a part of the loan package, if that is what you'd like.
Councilman Huckaby: Mr. Mayor, I think it should have been a part of the loan package. This is of importance to 50% of the population of this City and here we are about to vote on it and you tell us about an assurance you have with Mr. Jones. It is not right.
Councilman Burrell: Would we like any further explanation form Mr. Jones himself at this time? Councilman Shyne, just a second and let me ask you to indulge me a minute. Councilman Shyne: I think you asked a question, I want to respond to your question, personally, from me. Now, were you directing this to the Administration or were you directing this to Mr. Jones, or were you directing this to the Council? Councilman Burrell: Well, I think the conversation in the line of conversation here was to the Mayor, then Councilman Huckaby asked to be heard, and then from there, I asked if Mr. Jones, would you all like Mr. Jones to come up and make a statement based upon what we had talked about earlier----whether or not it would be considered a prior hearing and make that decision here. And I think as the Chair, I'm making that decision because it seem like there are still some question on this issue, and then I can address you.
Councilman Shyne: Mr. Chairman when you say you all, I'm a part of you all if you are talking about you all here on the Council. Now, if you want to exclude me from being a part of you all on the Council, I don't really think that you can do that as the Chairman. I'm a duly elected official, just like you are, and you have no more voting rights and no more authority than I do just because you sit as the facilitator. Councilman Burrell: Well, Councilman Shyne , this is not a point of contention here. If you want to speak at this time, I don't have a problem, but I was taking it as a point of personal privilege as a clarification based upon a conversation between the Mayor and Councilman Huckaby to get some clarification. Now, if you want to speak at this time, I don't have a problem with that. Councilman Shyne: I would appreciate it. If you don't have no problem with it, then all of the verbal verbiage that you have (inaudible) unnecessary. Councilman Burrell: I think you are being quite rude, Councilman Shyne, but that is another point.
Councilman Shyne: I spoke with Mr. Jones, and Mr. Jones and I had an excellent conversation. Mr. Jones, if I'm not mistaken, sometimes my time frame might be a little off, but I believe maybe a month ago or maybe five weeks ago, we had an excellent conversation and I was very pleased at that particular time because we discussed how you all had planned to bring minorities into the construction of the entertainment district. And you are an honorable gentleman, and it is not that I don't trust you or I don't trust the gentlemen who are with you, but I do serve a constituency who say: Well, Joe did you get it in writing? I say, well no, I really didn't get it in writing. This is what I was told and I know you understand what I'm saying and maybe it might be partly our fault that we did not let you know that we wanted to have some of this in writing to make sure. Because when I go back to my district and I begin to explain what this is all about and how it is going to help Mooretown or Ledbetter Heights or the Cooper Road, those who need jobs, I want to be able to have something I can read from and I can have it in writing. I really think that you would do your best and that's all I'm asking, but we would like to have it in writing where it will be a good faith effort made on your part. You met the 25% but there might be some opportunities where you might be able to do more than 25%, lets say for the demolition or lets say even for the electrical work or whatever it might be. The only thing that we are asking is that we would really like to have it in writing saying that you would make a concerted effort in order to make sure that you would bring in as much minority participation as you can, and I know you understand.
Because I got a phone call from a friend of yours and a friend of mine, because I can understand when he meant when he say: Joe, you ought to not be an obstructionist. Let the folks do what they want to do. And he kind of puzzled me because that is not what I'm really elected to do, if you understand what I'm saying. I'm elected to make sure that we get the maximum bang out of all of our tax paying dollars. I just so happen to be elected from a district where I can make sure that we can get maximum minority participation and Rick, I know as a Council member, you understand where I'm coming from. It is not that we are tying to block the project. I personally think that it is a good project and I think is something that should have been done on the riverfront, 2 or 3 years ago. But I do want to make sure that we get maximum minority participation because if I don't do it here, if I don't do it up front, when this train getting to rolling and I say, oh, stop, stop, stop. Lets get maximum participation, you look at me, Mr. Mayor or Mr. Jones, and you say: Well, Joe it is too late. You should have gotten on at the beginning. So, I want you all to understand that my concern and Councilman Huckaby's concern is not that we are against the project, and I think that maybe we might have some people who might feel like we are against the project. If it is so, I think it is a little something wrong with their understanding, but we just want to make sure, Mr. Elkington, that we get the maximum minority participation because we might not have this opportunity three months from now, six months from now. It is not that we don't believe you, but we know if you have it in writing, you will look at it and say, well I have to abide by what I put in writing, so I'm going to try my best to get 50% even if I can't do it on ever project. There might be some projects where I might be able to get the 50% or I might be able to get 70%. There might be some projects where you might say: Well, Joe, I tried my best but I couldn't get but 10% or I couldn't get but 5%, but over here on this project, I was able to what--get 70%; so this is what we are talking about. We are not trying to talk about any thing that is going to tie your hands down and Rick I know you've been a politician. You understand, you have to do what you can do up front. John, you are a businessman and if you don't get all of the i-s and t-s crossed when you go to the bank, you know six months later, it might be too late; so, this is what we are talking about.
We want to make sure that we can get maximum minority participation up front because this is something that this town has not done. And I'm going to be truthfully with you, I have been a part of this City Council for a long, long time and you know, coming in new with this Administration, but we have not taken advantage of these opportunities, and I don't blame anybody but myself. If I don't pull my wagon, I don't look for you to pull it for me. So, this is what we are talking about, to get maximum minority participation up front. It is nothing personal, it is strictly business. Now, we do have some people who do take it personal, those are people with small minds, those who take it personal and it doesn't matter who the shoe might fit, but this is strictly business and we not going to fall out. Mr. Jones, you and I are going to walk down and Mr. Elkington, we are going to walk down and look and see what's going on, and you are going to say: Well, Joe, such and such a thing be going on here and such and such a thing be going on there and we are going to still be friends, but we just got to make sure that we have maximum minority participation, that's only fair. That is my moral and Christian responsibility to make sure that those that have traditionally been left out will be brought in. If I don't do it, I don't expect for Tom Dark to do it, if I'm making any sense. And Tom I love you. I didn't mean any harm by it. Tom was looking at me there, he had a little puzzled look on his face. Let me say this: Ken I don't expect--look, I don't expect for Ken to do it. If I don't do it, if I don't sit here and fight for my district, I don't expect Ken to do it. Now, if he gets mad with me for doing that, then I think that he has a small mind because that is what I'm suppose to do. And Mr. Jones I know you understand that, Mr. Elkington I know you understand that, and Ricky I don't even have to call you, because I know you understand that. So, ladies and gentlemen, this is what this is all about, maximum minority participation. It is not to tie anybody's hand.
Councilman Burrell: Can I speak now, Councilman Shyne? Councilman Shyne: You now you are the Chairman, you can do whatever you want to do. Councilman Burrell: I know that. I was wondering whether you knew that or not. Councilman Shyne: I know you are the Chairman, but I don't think you can do whatever you want to do. Councilman Burrell: We will bring it back under order here.
Mayor Hightower: Certainly I take Councilman Shyne's remarks seriously and have all along and I think Fair Share is evidence of that. A while ago, Councilman Huckaby you did ask if it writing and unbeknownst to me it is in writing in the application and I'll be glad to share that with you, but it says the partnership has committed to a minimum of 25%, so that is documented. Councilman Huckaby: My question is: Is there a commitment to the standards and guidelines of the Fair Share Program? Mayor Hightower: I don't know that it actually mentions the Fair Share Program in here. Councilman Huckaby: That's is what my amendment, my amendment required two things: 50% of certain aspects of the projects , in addition to all provisions of the Fair Share Program. Does this contract require the Fair Share Program be a part of it? Mayor Hightower: It will. The original application did not, and I'm assuming a little bit here, that this application may have been presented before the Council actually passed Fair Share and is that correct? That's a correct statement. So, it will include that; however, the 25% language is in the original application.
Councilman Huckaby: In other words the application is going to be amended to require that it live up to all aspects of the Fair Share program? Mayor Hightower: I guess maybe what we need to do is get Candance to come up and talk about what the next step is and how the contract actually comes about, if you want to do that here, we can do that. Councilman Huckaby: Well, I would just like to speak to anyone who can tell me whether or not an amendment will be made to the application to require that it come up to the standards of the Fair Share program, whoever that may be. Mayor Hightower: Candance, will be able to do that through the contract process?
Councilman Burrell: Let me get a clarification again, hopefully we won't go back through the same gyrations we did before. Councilman Huckaby: Well, I'm directing some questions to whoever can answer my question. I'm not asking them to come up here and address the Council, I'm not getting out of line with the Council rule. I think as a Councilman I have a right to make inquiries and ask questions and I would like to make some to whoever they can present up here to answer my question.
Councilman Burrell: Councilman Huckaby I'm not questioning that. You have the right to do it. I am questioning the statement that was made earlier, if this matter is subject to a prior hearing, should we get an suspension of the rules. Mr. Thompson: Traditionally, customarily the Council will ask questions of City employees concerning zoning matters which are always the subject of a public hearing or anything else, you've always asked questions of public employees on matters that you wanted additional information.
Councilman Burrell: While he is here, we got that clear. For non-City employees, would it be appropriate to suspend the rule for that or just allow a straight line of questioning? If it is an interpretation, then I'm going to have to take a vote on it because I'm not going to get into a whole lot of hoopla over this. Ms. Glass: The problem with simply suspending that rule, as I said earlier, is a Council rule. You could suspend it, but the problem with that is that you run into equal protection problems: have you applied the rule differently to different people. A way around that, that you might interpret it, is that if you limit the discussion to truly answering questions posed by City Council members, it might not be that big of a problem.
Councilman Burrell: I assume that includes the Mayor in this case, or not? Ms. Glass: I'm sorry. Councilman Burrell: Since it is a Council meeting, I assume that extends to the Mayor also, you said for Council Members. Ms. Glass: Yes, under the Charter, he has the right to ask questions at Council meetings. And also, I believe you alluded to this a minute ago, if there is a disagreement, the Chairman can make a decision over interpretation of the rules. If someone disagrees with that, they can appeal his decision to a vote of the entire Council.
Councilman Burrell: Now, are you saying that, that's my right? Ms. Glass: I'm saying that you have the right to make an interpretation, but if a Council member disagrees with your interpretation, they can appeal it to a vote of the entire Council. I think you mentioned that a minute ago, that you would just take a vote.
Councilman Burrell: I hope everybody understand the rules, because I do, and I'm going to administer them accordingly.
Councilman Huckaby: Mr. Ferdinand, do you know whether or not the requirements of the Fair Share Program will be a written part of the contract between the City and this organization? Mr. Ferdinand: Let me make sure I understand your question. The Section 108 loan, you want to know, if the Fair Share program is going to be written in that. Now, the two persons, I don't want to pass the buck, the two persons that put the application together was Bonnie Moore and Edna Delphin. Now, Edna is here, Bonnie is out sick but Edna is here.
Ms. Delphin (850 Gladstone): That information can be inserted in the application, it is in computer. All we have to do is update the application to put the Fair Share Plan in there in the portion of the application that refers to the 25%, we could substitute in there the Fair Share plan.
Councilman Huckaby: Is that your intention to do that? Ms. Delphin: If I'm instructed to do that, I will do that. Councilman Huckaby: Well who do I need to call on to instruct you to do that? Ms. Delphin: I work for the Mayor. Councilman Huckaby: Mr. Mayor, feel like I'm running around in a circle, I'm back where the buck ought to stop. Would you instruct this lady to do what we are talking about, making the requirements of the Fair Share program a part of this contract? Mayor Hightower: Yes. Councilman Huckaby: Thank you. Do you understand that? Ms. Delphin: Yes, I understand.
Councilman Serio: I have one question and I guess that would go to the Legal Department, but doesn't the Fair Share Program affect all contracts that the City writes, anyway? Ms. Glass: I'd have to look at the specific language of the ordinance, I don't remember exactly whether it is worded that way or not. Councilman Serio: I think the understanding that most of us have is that it would affect all contracts and the whole idea was to affect all contracts that we write anyway to make sure that we do have a fair share within the City of Shreveport will all of the contracts. I'm of the opinion that everything that we do, that the Fair Share Program is suppose to be represented in those contracts, so hopefully if it is not I would like to have that brought back to the Council's attention if it is not. I would think that we took care of that back in July with the passage of that particular contract.
Councilman Burrell: Let me ask for a clarification on your question so that I can understand it. Are you saying that because the Fair Share Plan should be a part of each one of these contracts, will this amendment be necessary stating the 50% since the 25% is the bottom? Councilman Serio: No, because the Fair Share was suppose to be something that we utilize in all the contracts anyway. And I think that we passed in good faith an amendment to a resolution for the City Council and the City of Shreveport to work with and to live with to make sure that the minority community had their Fair Share in all the contracts that were given by the City of Shreveport. So, I'm assuming that we have made that motion already in that all city monies that are used and spent, will take that into consideration. And I'm looking at the Mayor right now and I'm hoping that, if you'll give us some guidance on that. Mayor Hightower: Councilman you are exactly right, any dollars that are dealt by the City that is the case on any contract, but just to be clear and I want to be sure that we are conforming to what Councilman Huckaby is asking for, this particular contract will be issued by HUD so we'll enter that language in the application so that we get what we want, but this would not necessarily automatically fall under Fair Share and that is why we had talked to Mr. Jones about his commitment to Fair Share even though it may not fall under the city ordinance.
Councilman Burrell: Let me get a further clarification. Because federal funds are passing through the city, they are not really city funds, they are still administered by the federal government (inaudible) address that? Mr. Ferdinand maybe you can interpret that for us. Mr. Ferdinand: I double checked and tripled checked with folks, this is a Section 108 loan application that we are making. Once HUD approves that, then the city sits with the applicant to work out the deals of a contract. Councilman Serio is correct, all contracts are going to be subject to Fair Share that you guys pass, that's the bottom line. Councilman Burrell: I think that is clear enough. Mayor Hightower: I stand corrected.
Councilman Serio: It has been such a long time, it is nice to see rain falling against the windows. And if you haven't noticed it, it is nice to see something pleasant falling in the City of Shreveport, much needed rain. Councilman Burrell: Observation noted.
Councilman Spigener: Mr. Chairman, disregard my red button over there. My comment was to try to you and Councilman Shyne back on the agenda, a few minutes ago but I feel like we are solidly back to where we need to be.
Councilman Burrell: I'm going to always get you back on. Mr. Antee, I see your button is on, maybe that was the last time.
Mr. Antee: I was going to respond to Councilman Shyne that, it is not a small mind, it is just business. Councilman Shyne: Seems like I've heard that somewhere before, haven't I.
(The Deputy Clerk re-read a portion of Amendment No. 2). Councilman Burrell: There was some discussion on us having the Fair Share Plan affecting all contracts. Mr. Huckaby, are we saying in this ordinance then that we still need further guarantee of 50% although we have a bottom of 25 and beyond?
Councilman Huckaby: I'm going to do what I didn't think I would do today and that is to articulate on what my amendment says. I was going beyond the requirements of the Fair Share program which requires 25% minority participation. In few of the fact that these funds are designated for low-to-moderate income people, I felt that we should go beyond the minimum 25% requirement to something higher and that is, I used 50% of all architect and engineering and construction contracts. Because I think that we must move beyond the level of jobs to the level of spreading the wealth. We are not talking about $500,000 dollars, we are not talking about a million dollars, we are talking about $5 million dollars of Community Development Block Grant funds, funds which are designated for low-to-moderate income people, and I think we need to move from the point, especially with this amount of money, move from the point of jobs to spreading the wealth. So that is why I moved the requirement from 25% minimum to 50% minimum. But it raises a question because I read in the paper this morning that Mr. Marshall Jones said that his architectural and engineering, I believe, work had been completed and I'd like to see his plans, that's a great deal of the work. It raises other questions. What percentage of this project is there minority ownership, I've read nothing about any minority ownership. There are many, many questions about this project and there are no answers to them, but I don't think I'll even go into asking the questions because it appears to be a done deal to me from the outset.
We received a copy of a press release on yesterday, Mr. Mayor, advising us that the project had been approved by the Department of HUD. How can HUD approve an application that we have not even voted on or submitted to HUD, can you answer that question for me? Mayor Hightower: I'll try and I may need some help on this one too. What HUD actually approved yesterday was the $1 million dollar grant. Part of the grant application, however did include the $5 million dollar Section 108 loan . That was what the press release was about, that was what the phone call was about from Secretary Cuomo yesterday along with Senator Landrieu, Representative McCrery and with the help of Senator John Breau.
Councilman Huckaby: I don't believe that is what the press release read. I don't believe it read that way. I interpreted it to mean that $6 million dollars, grant and loan, has been approved. Mayor Hightower: Well, I don't believe that, that is the case, I think Candance can answer that. The actual, I think financial parts of that package has to be sent in review and approved by HUD and that's yet to be done, I believe, but Candance if you can come and address that. Councilman Burrell: Yes, we are all confused anyway on this other issue. Ms. Candance: Technically, what has been finally approved is the BEDI grant, which is the acronym-Councilman Burrell: Since you no longer work with the City, is it required for her to state her name and address, for the record. Ms. Lee: Her association, her name and association. Ms. Candance Higginbotham, Department of Housing and Urban Development, 323 Albany Avenue.
Councilman Huckaby: Did you see the press release that came from the Department of HUD on yesterday? Ms. Higginbotham: Yes, sir I have one right in front of me. Councilman Huckaby: Does the press release indicate that the Department of HUD has approved $6 million dollars, $5 million of which is loan and $1 million which is a grant to the City of Shreveport, is that what it says? Ms. Higginbotham: It says: The Housing and Urban Development Secretary, Andrew Cuomo, today announced $6 million in assistance to Shreveport, Louisiana to redevelop its historic riverfront.
Councilman Huckaby: Then my question is, how can the Department of HUD approve an application of $5 million dollars, a $5 million dollar loan which has not ben voted upon and approved by this Council and submitted to HUD. How can HUD approve? Ms. Higginbotham: The 108 loan has not received final approval. The $1 million dollar BEDI, the Brownsfield Economic Development Initiative, has received final approval.
Councilman Huckaby: So the press release is misleading? Ms. Higginbotham: The press release is misleading, yes, sir. Councilman Huckaby: Alright, that is all I wanted to know; thank you. Ms. Higginbotham: I can give further explanation if you chose. Councilman Huckaby: That's all I want to know.
Councilman Burrell: Mr. Mayor did you have something you wanted to direct because you started to ask her and then Councilman Huckaby needed to get a clarification. On this grant application at this point, when is the latest that we can submit this, I understand that there can be extenuating circumstances. Ms. Higginbotham: We checked with headquarters in Washington yesterday on what is the latest date for application submission of the 108 and that is 60 days following the date of the receipt of the Notice of Funding which was yesterday. So the latest would be 60 days from yesterday. Keep in mind that it also requires an additional 60 to 90 days for HUD to review the Section 108 application, perform its analysis of the application and make a final determination on approving the 108 project, finally.
Councilman Burrell: The 60 days that you are talking about would not put us in jeopardy of losing the grant because for one thing is already approved, it is just a matter of us approving it here? Ms. Higginbotham: Not of losing the BEDI, no sir. Councilman Burrell: Okay, so we have 60 days on that.
Councilman Huckaby: To give further explanation. It is because of $5 million dollars, money designated for low-to-moderate income people being used for a project, that I thought we ought to go beyond the requirement of 25% which is Fair Share Program to some point like 50%. Because I think that using this kind of money, especially money designated for low-to-moderate income people, we ought to go beyond the point of jobs to the point of spreading the wealth. This is a capital venture. These people are out to make money. They couldn't go to the bank and get this kind of money under these kinds of conditions, that is why I introduce [Amendment] No. 1 that requires certain basic banking procedures and standards, requirements. They couldn't go to Hibernia or Banc One or any bank in this City and get this kind of money with the kind of equity and/or cash that they putting up with no strings attached. We wouldn't go into the General Fund budget and make this kind of loan. Why do we do it with money designated for low-to-moderate income people?
This loan does not directly affect low-to-moderate income people in any manner whatsoever. It amounts to one act of pure, unadulterated, economic exploitation, that's what it is. And there is a connection between economic exploitation and political injustice. Political injustice that includes police brutality and police harassment. And going to the funeral of a victim of police killing will not stop the killings, Mr. Mayor, it is taking a stand on the right side of issues like this where we are about to spend$5 million dollars that at this point is nothing but a gift or donation and my amendments were designed to move it from the level of a donation or gift to the level of what we are calling it and that is a loan. It is not a loan. This is democracy at its worse and hypocrisy at its best.
There are any number of people in this city would take this $5 million dollar donation; it is not loan. You wouldn't do it with the General Fund budget. It has not direct affect upon the low-to-moderate income people of this City. It has no minority ownership. According to Mr. Jones, the architectural and engineering is already done. We are not even sure whether the Fair Share Program is a part of it, we are talking about 700 jobs. We are not looking for jobs any more, Mr. Mayor, we are looking for a spreading of the wealth and this is [$500,000,000] dollars and it ought to have attached to it certain conditions, certain standards. And because we have defeated my [Amendment] No. 1, I am going to ask that the Council consider a Substitute [Amendment] No. 1. We just ought not let this happen. The $5 million dollars of money designated for low-to -moderate income people of this City, it just doesn't make any sense.
We ought to do better. We have a fiduciary responsibility to the people of this City. We are suppose to guard their monies, all of this is taxpayer's money and we ought to take care of it. All of this misleading, mis-statement of the facts. A press release comes down yesterday at 2:00 o'clock saying that HUD has already approved the loan and it has not even been submitted to the Council. What is this madness? It doesn't make any sense. The newspaper plays up the fact that I introduced an ordinance calling for 50% contracts for minorities, and they say very little about [Amendment] No. 1 which has about 25 different aspects to it. Sounds like the deal is already done. We ought to do better. We owe the people more, we owe the taxpayers more. We owe low-to-moderate income people more and we ought to give it to them. I ask for a vote on this amendment, please.
Councilman Spigener: If we may, and if you will give me permission to ask Ms. Higginbotham to come forward again, please. I do not think that we need to have the citizens of Shreveport confused about whether this is a gift or a loan. It is my understanding that this is a loan through HUD that is to be paid back. Ms. Higginbotham: That is correct. Councilman Spigener: It is not a gift, it is not a grant and I don't think that we need to have any comments made that would leave the citizens of our City to think otherwise. I just want to be sure. The million is a grant, the $5 million is a loan. Ms. Higginbotham: That is correct. Councilman Spigener: And it will have to be paid back as any other loan. Ms. Higginbotham: Yes it is. The Section 108 loan, is a low interest loan which is designed to promote public-private partnerships for economic revitalization. The reason that the BEDI and the 108 were announced together is that BEDI applications require that they accompany a 108 application. The reason being they are intended to help support 108 applications by dealing with the tendency which arise in redevelopment of old industrial and commercial districts that can impair redevelopment. When HUD looked at the BEDI application, they also looked at the proposed 108 project. The did not issue final approval of the 108 loan. What they did was they issued approval of the BEDI based on a preliminary review of the 108 proposed project. They will perform scrutiny of the 108 loan application before issuing final approval for the 108 loan.
Councilman Huckaby: Ms. Spigener, the reason why it looks and appears to be and is seen as a gift to many people is, because of the lack of conditions, standards and requirements attached to the "loan". Now that is why I introduced the Amendment No. 1 which makes it clear that it is a loan because it looks like a loan, it has the same requirements of a loan. By his own admission, Mr. Elkington said that this is a very risky deal. He knows it is a risky deal. He knows he couldn't go into a bank and get it, this kind of money, under these kind of conditions. If he went into a bank, he would meet some of these same conditions that I have attached in Amendment No. 1, he'd find those there. So by these conditions not being a part of the loan, which we've defeated, it is considered by many people. And I want you to know, I've gotten calls from both black and white people who say: I'd like to get one of those gifts you are giving out down there, like the $5 million dollar gift you are giving way, that's how they perceive it. Because it is pure, unadulterated, give-away, no strings attached. It's a risky business and anybody would love to get a deal like this.
And what I'm saying to you also is that there are projects in the community, both black and white, poor to moderate income people of much greater priority than this project. We have people living in houses in certain parts of this community, Ms. Spigener, that are unfit for human habitation. And what we are saying to you is that, when HUD the local office, Mr. Ferdinand's department, goes out and finds and initiates and develops such a program, as a massive housing program, to accommodate some of these people who are living in deplorable conditions, all of the money will be gone and that's not right. And that's why I offered Amendment No. 1. If you would read the 19 or 20 different parts of that amendment, they make certain conditions that make it obvious that, this is a loan, and not a gift or donation.
And I think you ought to take a second look at what we are doing here today. This is unprecedented. But you will find many people in the community, both black and white, who will be approaching this Council asking you to give me the kind of gift you just gave this organization with $5 million dollars. They ought to come because when you can walk in and get this kind of money, under these kinds of conditions, it is a obvious give away and it appears that this is a done deal. There has been no real--the application that was presented to us several weeks ago, was not the same one that we approved in a resolution. There has been no real presentation of all of the details of this project. We don't really know who the players are. I looked on the Internet and found different things about Mr. Elkington, about his involvement in Beale Street. There are no questions left when you got to a bank and make a loan for $5 million dollars. All of the questions are answered and we ought to mandate that they be answered here on this $5 million dollar loan.
Councilman Serio: I guess I've got a question for Mr. Ferdinand, if you would please. In the event of default, would you explain to the Council, who is financially responsible if there is a default. Mr. Ferdinand: The Section 108 loan by definition, you are really putting up our future entitlements of CDBG and if there is default, it would come out of our future entitlements of CDBG funds. However, and it hasn't been approved yet, there is a fund being established in Washington D. C., it hasn't passed anywhere, but there is a fund being established to help alleviate those type of situations where if there is a default, it wouldn't come out of entitlement but that is just a proposal, it has not passed Congress yet.
Councilman Serio: The entities that are involved individually, are not responsible whatsoever? Mr. Ferdinand: I don't now what's in the. . . Mr. Antee: If I may, I can respond to that. As part of this loan, the individuals and the developers and the partnership all have to put up collateral. That collateral, it will be evaluated and scrutinized in an underwriting process by HUD. HUD has to make the final decision that in their opinion, the collateral is sufficient to secure this type of loan. In addition to that, this is $5 million of a $25 million dollar project. Approximately $9 million of it is coming in equity in other forms, $5 million from the 108. The $1 million dollar is not part of this project. It will be used in that district to help alleviate some of the Brownsfield issues. The other $11 million dollars will have to be obtained from the individual investors and the partnership by going through the conventional lending mechanism with the Hibernia', with the Regents, the Banc Ones or any other bank that would want to loan them the $11 million, that is how they get to the $25 million dollar number.
In addition to that, as part of this, they have to have collateral under the 108 which will consist of property, leases, personal guarantees, and any other sufficient collateral to secure this loan to HUD satisfaction and that is the reason why it is not a grant and it is not a gift and we welcome anybody to come to try to use some of these 108 funds in this gap loan measure, and that is what this is, is a bridging of gap to make these events possible, sponsored by the federal government, the city government, and the private business to come and lets do that and lets do that in the housing area. Because if this 108 project is approved, there will still be approximately $9 million dollars available to similar things with housing. So, it is a complete loan and there will be and I think the developers are sitting here hoping. I can see their wheels turning saying that if this a grant, we don't have to pay it back, it's a better deal than we thought because they all sat here knowing that it is a loan, they are going to have to put up some of their own equity and they own capital and their own guarantees in order for this to be approved by HUD; so, hopefully that clears up some. To answer your direct question, Councilman Serio, yes, they will have individual liability through the collateral and through the guarantees that they'll have to put up.
Councilman Serio: I just want to clarify that, this is not a give away, that there is liability involved with this as well. Mr. Ferdinand, job creations. Right now we are looking at the, the figure we heard is, 700 jobs. Of those 700 jobs how many of them are anticipated to be low income? Mr. Ferdinand: HUD's national objective call for at least 51% be targeted for low-to-moderate income and this project has that.
Councilman Serio: In relation to the boats and with Harrah's and with the development of Harrah's over the last 6 years, the job creation we've seen from Harrah's individually, how many of those jobs are coming out of the minority community as well as how many of those jobs are low income? Mr. Ferdinand: I don't have the statistics right in front of me, but I think just about all of the boats are exceeding well over 50% of minority employment.
Councilman Serio: As far as for employment, do you have any figures on the employment dollars or the employment figures that Harrah's, in particular, has created in the community in the last 6 years? Mr. Ferdinand: Not at my fingertips, I have it at my desk but I don't have it with it. Councilman Serio: Let me see if we have anybody that might. I'm just thinking, with a 24-hour operation and the number of employees that they demand, that any development on the riverfront, this type of development will create a new business venture, a new business community that will probably operate 18 to 24 hours a day, we will probably have to look at our own ordinances, our B-4 laws and see which ones we want to strike down, which ones we are going to look at changing because I'm sure there will be retail communities that will develop that will want to stay open late at night or possible open at 2 o'clock in the afternoon until 6 o'clock in the morning and re-distribute the hours. I think we are facing a very intriguing business development that I've looked forward to seeing created on the riverfront for the last 6 years and I'd hate to see us slam the door on it or possibly shut the door on it for the sake of not looking at the potential of the tax dollars, of the employment that can be created, the long term positive effective. Because regardless of what anybody thought about when the first boat opened up in downtown Shreveport, the positive effects have been well been seen all over downtown Shreveport in employment but is also in the beautification of downtown Shreveport for the last 6 years.
I would move that we look at moving forward on this and it looks like we are talking about $25 million dollars total. We've got $1 million coming for Brownsfield redevelopment. We've got $5 million that's coming for, the $5 million that is in question, that still has to be paired with commercial development, commercial monies. It is not just coming from government to support this. We still have to have individuals that will put up money out of their own pockets to go forward, is that not correct? Mr. Ferdinand: That is correct.
Councilman Serio: So this is only a part of the package, the $5 million. Mr. Ferdinand: That is correct.
Councilman Serio: It is not like this is the only thing that is supporting, we are putting one hundred percent of the money out to support somebody's business. We are putting 25% out to support or to initiate this business development, is that not correct? Mr. Ferdinand: That is correct.
Councilman Shyne: I want to reiterate to Councilwoman Spigener and Councilman Serio. I want to see progress on the riverfront, that makes me feel good. But Councilmen, it would make me feel a whole lot better if i could walk down there and say well, so and so and so, has ownership, has part ownership in that; so and so and so has part ownership in that. I mean sure, it makes you feel good because you don't think about whether there is any black ownership. I mean, when I go to the Horseshoe, sure I enjoy going there. Its great. Don't you know I would feel a whole lot better if I could say, Councilwoman Spigener, that 40% of the Horseshoe is owned by minorities. Don't you know, I would feel a whole lot better. When I look around and 50% of this city is black. But, and I don't mean no harm when I say this, that probably never crossed your mind. And I'm not saying it in an ugly way because it doesn't. Because traditionally, in our society black folks have been hid unless you go in the kitchen, unless you see them bringing you some mint jubilees or bringing you a nice steak. You have think about when you walk in, the owner, when the owner walks out, here is a big black man that would scare you to death and it is not all your fault. But this is traditionally the kind of society that we live in. What we are saying today, is we don't want to stop the development that is going on down there. What we are saying is, God we have a great opportunity to say that, I'm my brother's keeper. Lets try to find some blacks who will go in as owners. Lets try to make sure that we do as much as we can for the minority community because, look, we are going to bring $5 million dollars that HUD says that ought to be used to enhance the plight of poor and disadvantaged people; that all we are saying.
We had a lady down here the other day, Ms. Nancy Brewster. This is a white lady. This lady was showing us pictures of houses in her neighborhood that are dilapidated and the neighborhood is almost unfit for folks to live in. We are an All American City. We ought to be trying to hustle to get money to straighten up some of these neighborhoods; that's all we are saying. We are not saying, hey look lets stop this progress. What we are saying is, lets include. Maximum. This is a great opportunity to include maximum minority participation. And of course like Councilman Huckaby is saying and Mr. Mayor, I apologize to you, because we kind of thought it was a done deal after reading the news release and I don't know who put that out. Ron, did you put that news release out. I don't--where is Larry. We don't know who put it out, but whoever put it out, it was very misleading because the news media picked it up. And I had people who called me saying Joe that's a done deal. I said, nay, it can't be a done deal but, yes it is though. I say, it has got to be illegal. And then, if I'm not mistaken, I believe Councilman Huckaby told me say, yeah, it's a done deal. It can't be a done deal because this is a great opportunity for the City of Shreveport to step forth and say, you see what we can do. We can make sure, Councilman Serio, when you go in one of those places there and you ask for an owner, here comes a black fellow out that is looking like Roy Burrell; that would make me feel great. Now sure, every time I go down there, I like what Harrah's has done. I love what Horseshoe is getting ready to do, but I would enjoy it a whole lot more if they had black ownership; that's the only thing that I'm saying. This is a great opportunity.
Sure we want the progress, we want the development on the riverfront, but if I don't look out, to bring minorities in, who is going to do it. And I don't mean any harm, but I really don't expect you to do it and I know you are good Christian gentlemen, so please find it in your heart to vote with us.
Councilman Spigener: I'm ready for the question.
Councilman Huckaby: I know we don't have the votes to stop this project and I'm not really interested in stopping it. Councilman Burrell: I understand that we are still at the amendment. Councilman Huckaby: I understand. Councilman Burrell: Dealing with your amendment. Councilman Huckaby: Yes, I'm still dealing with the amendment. I want to finish my comment.
I know we don't have the votes to stop this project and I'm not really interested in stopping it. I'd like to see these kinds of projects to forward in Shreveport. I want you to understand that my problem is with the source of the money being used to promote the project. It's the money, the source of the money.
This is $5 million dollars from Community Development Block Grant funds, money that is earmarked for low-to-moderate income people. The only problem I have with it is that there is no black ownership in it. I question the value of the collateral that the applicants are placing up. What is the value? If we went in any bank to get any kind of loan in this city or anywhere else, especially $5 million dollars, there would be one question and one answer that would be obvious on this loan: what is the value of the collateral the applicant is putting up? Does anybody know? We've talked about it. What is the value of the equity being placed by the applicant s to get $5 million dollars. Nobody talked about that in this loan. You'd know if they went to Banc One or Hibernia to get $5 million dollars, that would be a most obvious answer, the value of the equity or the collateral being placed up by the applicants. Nobody has talked about and that is why I called it a gift , Ms. Spigener, rather than a loan because nobody knows the value of the collateral being placed up by the applicants. I want to make it clear that, as far as HUD is concerned the collateral is the $5 million money that is coming from the CDBG funds; can anybody argue against that? As far as HUD is concerned, the collateral in this project is the $5 million dollars from CDBG funds and that ain't right.
You can run this ball right on over us. I'm going to do what I can to make it clear to the people what it is, what's being done with the taxpayer's money, and make it obvious that it ought not be done. It ought to be reversed at some point. I've written the Secretary of HUD. I wrote HUD a week ago, told them about the requirements that I was going to place in the amendments because it was obvious that they were not there, basic banking principles.
Somebody need to speak up for the poor-to-moderate income people. They are not represented here. Nobody is concerned about them. They are only mentioned when it comes to jobs. The jobs that we are talking about--that raises another question: What is there in the application (Mr. Ferdinand, I don't want you to answer the question, I'm gonna just throw it at you) that assures 51% of the jobs will go to minorities or is that just an assertion Just say whatever you need to say to get the loan, that's all it is. Is there some kind of analysis in the contract or in the application to show that blacks will received 51% of the jobs, no. Just an assertion, anything to get this $5 million dollars; this ain't right. You want to answer my question? No, sir unless you want to volunteer, I'm just throwing the question at you. I don't really want an answer from you, I know the answer. There is no analysis in the application to assure that minorities will get 51% of the jobs that will be created by this project. There is nothing in there.
I've had a requirement that all of the lease would be signed before we release any money. This group has no lease contract signed for anybody. Channel 3 mentioned that they had Pat O'Brien's coming. They called the man with Pat O'Brien, Pat O'Brien said, I ain't signed no contract with these people; just say you got a contract with Pat O'Brien. Say whatever you need to say, get the $5 million dollars, that is what this amounts to. Do whatever you got to do, ain't nobody checking, ain't nobody looking, nobody cares, just get the money and that needs to stop, Mr. Mayor.
These loan applications ought to be scrutinized by the City as much as they would be scrutinized by Hibernia and Banc One. Whey didn't they go to Banc One? Why didn't they go to Hibernia? Because they would not dare take such an application under these conditions and the City shouldn't. The poor should not bare the burden, the tax payers should not bare the burden of such a risky project.
Amendment No. 2 denied by the following vote: Nays: Councilmen Carmody, Serio and Spigener. 3. Ayes: Councilmen Huckaby, Shyne and Burrell. 3. Out of Chamber: Councilman Stewart. 1.
Amendment No. 3:
Amend the Resolution as follows:
Amend and reenact the NOW, THEREFORE, BE IT RESOLVED paragraph, to read as follows:
"NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shreveport in due, regular and legal session convened that the Department of Community Development is authorized to file an application substantially in accordance with the application filed with the Clerk of Council on August 23, 1999, which is attached hereto and made a part of hereof with the United States Department of Housing and Urban Development for a loan under Section 108 of the Housing and Community Development Act of 1974 in an amount not to exceed $5,000,000.00."
Motion by Councilman Huckaby, seconded by Councilman Shyne for adoption of Amendment No. 3. Amendment No. 3 denied by the following vote: Nays: Councilmen Stewart, Carmody, Serio and Spigener. 4. Ayes: Councilmen Huckaby, Shyne and Burrell. 3.
Substitute Amendment No. 1:
Amend the Resolution as follows:
Amend and reenact the first BE IT FURTHER RESOLVED paragraph to read as follows:
"BE IT FURTHER RESOLVED that the Mayor of the City of Shreveport is authorized to sign all documents necessary to complete the application for the Section 108 loan, and if the loan is approved by HUD, the Mayor or his designee shall be authorized to negotiate the terms and conditions of a loan with Red River, provided that the loan is warranted after financial and underwriting analysis consistent with good business practices have been conducted by persons competent to conduct said analyses, and provided the contract shall include all requirements and provisions recommended by persons conducting the analysis. Upon the successful negotiation of same, and a report to the Council to include the results of the financial and underwriting analyzes and the names of persons conducting same, the Mayor shall be authorized to sign all documents required to complete the loan transaction between the City of Shreveport and Red River.
Councilman Burrell: Is it different from Amendment No. 1? Councilman Huckaby: Yes. Mr. Thompson: It requires the City of Shreveport to complete a financial analysis and underwriting activities consistent with good business practices without dictating what those activities should be. It requires the City to incorporate any recommendations of the persons performing that analysis in the contract and it requires the Mayor to provide the Council with a report in this regard before the contract is signed. Councilman Huckaby: It is an abbreviated version of my first amendment, No. 1.
Motion by Councilman Huckaby, seconded by Councilman Shyne for adoption of Substitute Amendment No. 1.
Councilman Huckaby: We ought to do something to make this, whatever you want to call it, look like, appear to be a loan rather than a gift or donation and this is my last effort to do so with my first amendment having failed. This is an abbreviated version of that.
Councilman Stewart: Mr. Antee, this amendment proposal here, reflects over some of the questions that I posed and felt that I had answered and still feel that I do. What is the impact on the current discussion issues, timing-wise? Do this amendment in any way encumber us or prevent us from moving expeditiously in the current environment? Mr. Antee: As I read it, basically what it does is, it ask somebody else to come in and second guess HUD because these are the exact issues that HUD will look at and monitor and have to approve.
Councilman Stewart: Thank you. And it is correct during our discussions over the last 5 minutes when I asked you to refresh my mind and reaffirm my understanding of the obligations and the signatories, all of the documents, this is a fully secured loan and that the issues of recourse that the Mayor and I discussed in the past and you and I discussed are not at issue anymore, and that in your understanding, this conforms with all of the requirements and other issues associated with federal loans, is that correct? Mr. Antee: As I understand it and also during the application process, it was stated that, from HUD and through Ms. Higginbotham, that if the loan exceeded 9 years, that there would be additional collateral that would be required by HUD and that will be one of the issues that will have to be addressed once its sent down and the exact terms and conditions of the loan to be presented to HUD issues, that will be one of the issues so that it will be fully collateralized as it meets HUD's requirements and definitions.
Substitute Amendment No. 1 denied by the following vote: Nays: Councilmen Stewart, Carmody, Serio and Spigener. 4. Ayes: Councilmen Huckaby, Shyne and Burrell. 3.
Councilman Burrell: I want to at this time make a motion for a temporary postponement of this and I want to tell you why. I have worked, I guess over the last several weeks, trying to reach some sort of compromise on this project. I put myself in a position to be ridiculed by some and supported by others on this because it is more important to me to try to keep our communities together. And at this point and time, we still have certain unrest and rightfully so because there are different opinions on different things. I have worked to try to bring some understanding on both parts to this issue. I asked Ms. Higginbotham whether or not the deadline was upon us. And as I understand it because the Brownsfield have tentatively been approved, then all we have to do is look at getting the 108 loan approved and sent to HUD in order for them to scrutinize and also to approve.
I think with all of the discussion that's here, you see that there are still questions to be answered and I don't think that we are unfair Councilmen in many cases, I know some times we don't communicate as well as we think we do, but since we don't have a project now that has been clearly stated that's in jeopardy, and it is not that I'm requesting to postpone this on an indefinite basis, it is just that when there is this much dissension, this much unrest, and also these many questions being asked, I think that we should some times just sit back and say, okay can we give it a little more time so that we can all be comfortable because I think that the City deserve a Council that tries to move ahead together. We don't need a continued, this splitting of hairs and splitting of communities. And I guess I'm becoming more sensitive to that because I dealt with that so much with the last Administration, it was just a constant thing and we are just fortunate enough we still maintain relationships.
Some people call it politics, I've got some other choice words for it, some of which I will not even state at this time, but I think that to get a comfort level for this and we are not putting this in jeopardy, I think everybody is saying the same thing, that we want to move development downtown ahead and I'm just asking as the Chair not that it means anything, I found out, but at the same time that it would give me an opportunity to even get some questions that I have answered, some that you all have asked, answered, and try to move this project ahead so that those who are looking to develop this project would have more of the community coming together to support it. I would hate to think that once it is built, that we would have the same attitude. But if we go into it with the attitude of being split, when it is built, we will probably have the same attitude then and I think that is very, very unfortunate for the City of Shreveport. So I'm offering a motion for a temporary postponement, I don't know, whatever you want to call it for some answers to be further viewed and I would like to a second from somebody.
Motion by Councilman Burrell to postpone the resolution seconded by Councilman Shyne.
Councilman Stewart: I think that anyone who has witnessed the process of City Council of the City of Shreveport during the prior Administrations, as compared to this Administration could certainly as you have accurately portray, reflect over many differences. However, I think we stand here today in a situation, I do not believe postponement will benefit anybody. I think we need to go forward.
This Administration has done more for inclusivity and for openness than any I have ever witness and for that, I think we all need to be thankful. There will always be differences. There will never be certainty in any event that projects itself into the future.
I've talked with these people individually. I've asked the basic questions and then I've asked the bankers from New Orleans and Shreveport, I'm not talking about tellers, either. People who have experience in these issues about the nature of the documents in front of us, the environment that we face, and their suggestions. The issue of security was the most important one and I posed it to the Administration in resolution occurred.
Further, this group volunteered to do something that has not happened before and that is they came here and set aside 3 hours of their time during the lunch hour for an opportunity to answer the questions and all of us had that opportunity. Many of us, including myself did not make it, but I assumed the questions were answered in another format. I certainly appreciate the intention of what you have, but we have got a business deal here that is fully secured according to the affirmations both privately and publicly of the Administration, affirmed by Mr. Jones in more than ten or twelve conversations, separately that I've had with him. My suggestion is that we go forward with an understanding that they are required to make the commitments that they've put in writing in much the same fashion that the Mayor and Mr. Antee and this entire Administration has made commitments both publicly, in writing, and verbally in terms of inclusivity. That may be different than how others feel, but this is the time for us to make a business decision, hold people to it and go forward. And I'm certain based on my experiences with Mr. Hightower and Mr. Antee, and I think each of us that we go forward that we'll get the resolutions more and more than we have in the past.
Councilman Burrell: Let me comment to Mr. Stewart, not as a rebuttal. But my only efforts and intentions, Councilman Stewart was and still is, is to try to hold our community together. Many times we sacrifice that for our own personal views and our own personal friends. I have, no doubt about the Administration's intention to be open because if for nothing else, I've worked with them to do that even at the detriment of my own politics, and that is a fact and I don't mind stating it. But I did that because, in my opinion, it was for the greater good of the citizens of Shreveport. When you have two extreme views and nobody wants to come to the middle of the table, of the ring at least shake hands to even get a fair fight, then someone has to come and say, we must do this.
I think when we have issues that are very divisive I have seen it times where no, we wouldn't sacrifice our own politics to come forth and say, hey look I'm man enough or woman enough to intervene and say, look, lets step back and look at it. It is not going to jeopardize the project. No one is gong to loose money. Lets get a little bit more input into this, if nothing else, it is to help resolve some of the heighten concerns and distrust that is there. I think I would be remiss as a Chairman of this Council when I see such divisiveness within our Council body and not request that. I don't think it is going to hurt anybody at this point. You know many times we were thrown into a situation where at the last minute we were forced to vote and of all people who complained about it, you, Councilman Stewart, was one of the ones that complained about it at the last Administration and I supported you on that. The Mayor complained about it. I first brought it up, but it didn't seem to be a problem when I was bringing it up, but it came to light that we were being thrown against each other and it didn't help the City at all.
I'm asking again at this point, and your point is well taken. If I thought it was to the detriment of this project, that is one thing but it is not. We have established the fact that we have at least 60 days, it won't even put it in jeopardy, but nobody is asking or 60 days. I'm just asking for time that maybe we can get together. There were things that were said here that there questions that were unanswered, questions that came up today that have not been asked, very pertinent questions. If you give those persons an opportunities to go to the parties who is asking for the money to get those questions answered, whether it is in writing or verbally, I think they would feel better and we could come back here, hopefully shaking hands to say, hey okay we understand it. I may not still support the idea, but I would do it because you gave us an opportunity to ask the questions; so, that's my position on that.
Councilman Shyne: I yield to your wisdom. I will save my comments until after the vote.
Councilman Burrell: Again, I make that plea to you. If nothing else, for my benefit too. Because there are questions I still have and they can tell you if you want to talk to them, that I've been working on this too. I haven't been public with it, I have gotten in the papers with it because I think it is an important project and I want them to be comfortable and I want us to be comfortable and moreso I want the community to say that we are not starting to split our votes.
Motion for postponement denied by the following vote: Nays: Councilman Stewart, Carmody, Serio, and Spigener. 4. Ayes: Councilman Huckaby, Shyne and Burrell. 3.
Councilman Shyne: Mr. Chairman, I do agree with you and it seems like you and I don't agree very much, but we do. It was kind of like the deal that we went into with the professional football team. I think we kind of rushed into that deal and we lost a million and a half or maybe two, three, four million dollars. I think a lot of times we need to really, really get a chance to look at what we are doing to actually get down and have an opportunity to sit down and talk to the people who are involved and to make sure that we are on the right track because I'd hate to be guilty of misusing the taxpayers' money. Not that I'm saying that this is what we are going to do this time, but I was hoping that we could come up with a 4 to 3 vote just the other way.
Motion by Councilman Serio, seconded by Council Spigener for passage of the resolution. Resolution approved by the following vote: Ayes: Councilman Stewart, Carmody, Serio, Spigener, and Burrell. 5. Nays: Councilman Huckaby and Shyne. 2.
RESOLUTION NO. 172 OF 1999
A RESOLUTION AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR A LOAN UNDER SECTION 108 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 AND TO OTHERWISE PROVIDE WITH RESPECT THERETO.
WHEREAS, the City of Shreveport is committed to significantly contributing to the elimination of slum and blight; and,
WHEREAS, the City of Shreveport has undertaken an assertive effort to rehabilitate its downtown area and encourage the development of mixed uses for this area; and,
WHEREAS, the Red River Entertainment District is located on the riverfront in the downtown area of the city, and its new construction and renovations will create new jobs for the low-to-moderate income citizens of this city as well as significantly enhance the appearance of the downtown area of this city; and,
WHEREAS, Red River Entertainment District, LLC, ("Red River") proposes to develop 70,000 square feet of new construction and 30,000 square feet of renovated space; and,
WHEREAS, in furtherance of the City's objectives of eliminating slum and blight and providing job creation and retention, the City of Shreveport proposes to apply to the United States Department of Housing and Urban Development (HUD) for a Section 108 Loan in an amount not to exceed $5,000,000.00 in order to provide funding to Red River for this downtown development project; and,
WHEREAS, Section 108 of the Housing and Community Development Act of 1974, allows communities that receive an annual Community Development Block Grant to borrow up to five times the amount of the annual entitlement with repayment guaranteed by the entitlement for those Section 108 eligible projects and activities.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Shreveport in due, regular and legal session convened, that the Department of Community Development is authorized to file an application with the United States Department of Housing and Urban Development for a loan under Section 108 of the Housing and Community Development Act of 1974 in an amount not to exceed $5,000,000.00.
BE IT FURTHER RESOLVED that the Mayor of the City of Shreveport is authorized to sign all documents necessary to complete the application for the Section 108 loan, and, if the loan is approved by HUD, the Mayor or his designee shall be authorized to negotiate the terms and conditions of a loan with Red River. Upon the successful negotiation of same, the Mayor shall be authorized to sign all documents required to complete the loan transaction between the City of Shreveport and Red River.
BE IT FURTHER RESOLVED that the loan agreement between the City and Red River shall contain a provision which requires Red River to apply for a Stand By Letter of Credit in favor of the City of Shreveport in an amount sufficient to guarantee full re-payment of the loan to City.
BE IT FURTHER RESOLVED that the loan authorized by this resolution shall be for the purpose of new construction and renovation within the Red River Entertainment District located within the downtown area of the City of Shreveport by Red River.
BE IT FURTHER RESOLVED that the Section 108 loan authorized by this resolution shall be repaid to the Department of Housing and Urban Development by the City over a 15-year term or other terms more favorable to the City.
BE IT FURTHER RESOLVED that the loan agreement between the City and Red River shall be for a 15-year term or other terms more favorable to the City. The agreement also shall contain a provision that the interest rate and payments shall be adjusted upon permanent financing of this project by HUD. The loan authorized by this resolution shall be secured by a special tenant allocation and assignment of leases and rental income.
BE IT FURTHER RESOLVED that if any provision or item of this resolution or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this resolution which can be given effect without the invalid provisions, items or applications and to this end the provisions of this resolution are hereby declared severable.
BE IT FURTHER RESOLVED that all resolutions or parts thereof in conflict herewith are hereby repealed.
INTRODUCTION OF RESOLUTIONS: None.
INTRODUCTION OF ORDINANCES:
Read by title and as read motion by Councilman Shyne, seconded by Councilman Spigener for Introduction of Ordinances to lay over until the September 14, 1999, meeting. Motion approved by the following vote: Ayes: Councilman Huckaby, Carmody, Serio, Spigener, Shyne and Burrell. 6. Nays: None. Out of Chamber: Councilman Stewart. 1.
ORDINANCES ON SECOND READING AND FINAL PASSAGE:
Having passed first reading on July 27, 1999, was read by title and as read on motion ordered passed to third reading. Read the third time in full and as read motion by Councilman Serio, seconded by Councilman Spigener adopted by the following vote: Ayes: Councilmen Huckaby, Carmody, Serio, Spigener, Shyne and Burrell. 6. Nays: None. Out of Chamber: Councilman Stewart. 1.
Having passed first reading on August 10, 1999, was read by title and as read on motion ordered passed to third reading. Read the third time in full and as read motion by Councilman Huckaby, seconded by Councilman Burrell TO postpone the ordinance until the September 14, 1999 meeting. Motion approved by the following vote: Ayes: Councilmen Huckaby, Stewart, Carmody, Serio, Spigener, Shyne and Burrell. 7. Nays: None.
Having passed first reading on August 10, 1999, was read by title and as read on motion ordered passed to third reading. Read the third time in full and as read motion by Councilman Shyne, seconded by Councilman Carmody for adoption.
Councilman Huckaby: I missed it somewhere down the line, but would you have someone explain to me what's happening with the ordinance. Councilman Shyne: And I appreciate you getting those trucks off of Lakeshore. Thank you, excellent job. Mr. Ferdinand: Thank you Mr. Shyne. That is the second thank you that we've gotten this week. One was a card note, now yours is in person. Councilman Shyne: I was aiming to send you some fruit. Mr. Mayor did you get that? Mayor Hightower: I didn't eat any, but I got it. Councilman Shyne: You see, distrust. Mayor Hightower: Thank you. Councilman Burrell: I noticed yesterday in passing, and it does look a lot nicer. I knew it was a matter of time before they'd get those trucks off because we had already made that request. Mr. Ferdinand: It was a recent fire that destroyed the building and the trucks there. Councilman Burrell: We were on top of it.
Mr. Ferdinand: Mr. Huckaby, there are some initiatives that we wanted to take up. The Community Services Department, we felt was too large to address some of the initiatives. As you well know, some time ago, that department was combined between Workforce Development as well as Urban Development; so what we are trying to do along about now, is to get it in line with what we feel we need to undertake some initiative and that is to break it up in Workforce Development, which we have coming up, the WIA, the Workforce Investment Act, that is going to replace JTPA 1-1-2000. And then we've got some serious housing needs that we figure if we too. . . .
Ordinance adopted by the following vote: Ayes: Councilmen Huckaby, Stewart, Carmody, Serio, Spigener, Shyne and Burrell. 7. Nays: None.
The adopted Ordinances follows:
ORDINANCE NO. 117 OF 1999
AN ORDINANCE AMENDING CHAPTER 106 OF THE CODE OF ORDINANCES, THE CITY OF SHREVEPORT ZONING ORDINANCE, BY REZONING PROPERTY LOCATED ON THE SE CORNER OF E. BERT KOUNS AND WALLACE LAKE ROAD, SHREVEPORT, CADDO PARISH, LOUISIANA, FROM B-2, NEIGHBORHOOD BUSINESS DISTRICT TO B-3, COMMUNITY BUSINESS DISTRICT, AND TO OTHERWISE PROVIDE WITH RESPECT THERETO
SECTION I: BE IT ORDAINED by the City Council of the City of Shreveport, Caddo Parish, Louisiana, in due, legal and regular session convened, that the zoning classification of Lots 1 and 2, Forbing Commercial Subdivision, Unit #2, Shreveport, Caddo Parish, Louisiana, property located on the SE corner of E. Bert Kouns and Wallace Lake Road, be and the same is hereby changed from B-2, Neighborhood Business District to B-3, Community Business District.
SECTION II: THAT the rezoning of the property described herein is subject to compliance with the following stipulation:
1. Development to be in substantial compliance with a revised site plan showing building footprint, landscaping, hard surfaced parking and drives to be submitted to and approved by the Planning Director, with any significant changes or additions requiring further review and approval by the Planning Commission.
BE IT FURTHER ORDAINED that if any provision or item of this ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items, or applications of this ordinance which can be given effect without the invalid provisions, items, or applications and to this end the provisions of this ordinance are hereby declared severable.
BE IT FURTHER ORDAINED that all ordinances or parts thereof in conflict herewith are hereby repealed.
/s/Roy Allen Burrell, Chairman
/s/Arthur G. Thompson, Clerk of Council
ORDINANCE NO. 123 OF 1999
AN ORDINANCE TO AMEND SECTION 24-41 OF THE CODE OF ORDINANCES RELATIVE TO THE DEPARTMENT OF COMMUNITY DEVELOPMENT AND TO OTHERWISE PROVIDE WITH RESPECT THERETO.
WHEREAS, Ordinance Number 139 of 1995 created the Department of Community Development; and
WHEREAS, Ordinance Number 139 of 1995 has been codified as Chapter 24 of the Code of Ordinances for the City of Shreveport; and
WHEREAS, Section 24-41 provides that the Department of Community Development shall consist of the Bureau of Administration, the Bureau of Permits and Inspections, the Bureau of Community Services and the Bureau of Codes Enforcement; and
WHEREAS, the administration of the Bureau of Permits and Inspection has been transferred to the Department of Operational Services by the adoption of Ordinance Number 91 of 1999 ; and
WHEREAS, the Bureau of Community Services oversees the operations of the City's housing, workforce and small business resources programs; and
WHEREAS, a review of the operations of the Bureau of Community Services indicates that the needs of the public may be better served by the creation of separate bureaus to oversee the housing and business resources program and the workforce development program.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Shreveport in due, legal and regular session convened that Section 24-41 of the Code of Ordinances is hereby amended to now read as follows:
ARTICLE II. ADMINISTRATION
DIVISION 2. DEPARTMENT OF
COMMUNITY DEVELOPMENT
Sec. 24-41. Established.
Unless and until otherwise provided by ordinance and pursuant to section 4.20 of the Charter, there shall be a Department of Community Development which shall consist of the Bureau of Administration, the Bureau of Codes Enforcement, the Bureau of Housing and Business Development, the Bureau of Workforce Development and such other bureaus or offices as may be determined by ordinance, or as may be assigned to it by proper authority. This department shall be responsible for providing all services related to neighborhood revitalization and business development and for developing, administering and monitoring programs designed to facilitate the orderly growth and development of the community based on each community's individual needs. The department shall also be responsible for such other duties and responsibilities as may be assigned to it by ordinance or other authority.
BE IT FURTHER ORDAINED that if any provision or item of this ordinance or the application thereof is held invalid, such invalidity shall not affect other provisions, items, or applications of this ordinance which can be given effect without the invalid provisions, items, or applications, and to this end, the provisions of this ordinance are hereby declared severable.
BE IT FURTHER ORDAINED that all ordinances or parts thereof in conflict herewith are hereby repealed.
/s/Roy Allen Burrell, Chairman
/s/Arthur G. Thompson, Clerk of Council
UNFINISHED BUSINESS:
Councilman Huckaby posed question relative to this Resolution No. 142 of 1999. At the request of Councilman Huckaby, Chairman Burrell appoint members of the Council to tour the City jail namely, Councilman Huckaby, Chairman, Councilman Carmody and Councilman Serio. In the event Councilman Carmody is unavailable, Council Shyne agreed to tour the jail also.
NEW BUSINESS: None.
REPORTS FROM OFFICERS, BOARDS, AND COMMITTEES. None.
CLERK'S REPORT: None.
COMMUNICATIONS AND MISCELLANEOUS MATTERS.
The Council resolved itself into Committee of the Whole, on motion by Councilman Spigener, seconded by Councilman Shyne and approved by the following vote: Motion approved by the following vote: Ayes: Councilman Huckaby, Carmody, Serio, Spigener, Shyne and Burrell. 6. Nays: None. Out of Chamber: Councilman Stewart. 1.
Motion by Councilman Shyne, seconded by Councilman Spigener that the Committee Rises and Report and convene itself as the Council. Motion approved by the following vote: Ayes: Councilman Huckaby, Stewart, Carmody, Serio, Spigener, Shyne and Burrell. 7. Nays: None.
/s/Roy Allen Burrell, Chairman
/s/Arthur G. Thompson, Clerk of Council