August 13 2013 Setting the tone That was Gnarls Barkley with his hit song Crazy The lyrics include I remember when I lost my mind Does that make me CRAZY Hopefully after tonights presentation you wont think that he wrote this song about me ID: 223840
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Slide1
MAYOR JOE’S PUBLIC FORUM
August 13, 2013Slide2
Setting the tone!
That was Gnarls Barkley with his hit song “Crazy”
The
lyrics include:
“I remember when I lost my mind”
“Does that make me
CRAZY
”
Hopefully after tonight’s presentation you won’t think that he wrote this song about meSlide3
Philosophy to start the day
“If
you’re not moving forward, you’re losing ground
.”
~ attributed to many
While change is not always welcome or viewed as positive initially, I hope to
prove that if
it is done properly, it will benefit the
community
Here’s a local example:Slide4
Philosophy to start the day
“That’s their interpretation of beautifying the lakefront. I’ve told a lot of people I don’t understand how you take a baseball field with grass and make it a parking lot and that beautifies the
area.”
~ WHS Baseball Coach Kevin Lenz – NWI Times
That of course was before he had a chance to see or play at Oil City
Stadium – The
quote obviously still serves as inspiration for me.Slide5
Philosophy to start the day
“One way to keep momentum going is to have constantly greater goals”
~ Michael
Korda
, author
I feel we have momentum, now we need to continue to push the envelopeSlide6
Philosophy to start the day
“It doesn’t matter how slowly you
go – so
long as you do not stop.”
~
Confucius
I had hoped by sharing that quote with you today, that you would forgive me for how long it takes to actually
institute change
!Slide7
Philosophy to start the day
Insanity: doing the same thing over and over again and expecting different results
.
~ Albert Einstein
As you’ll hear today, I may not have all of the answers or be 100% correct in
every one of my
assumptions, but it’s time to take some risks and change how we do certain
thingsSlide8
Philosophy to start the day
Mayor Joe’s Definition of
“Controversial
”
(the word will appear several times in the presentation)
Something can be viewed as controversial if it
can impact a
person’s
:
Employment
Salary or Income (Cost $$)
Home or property
Quality of Life
Philosophical believes
Or any Change that does not have unanimous supportSlide9
Agenda
Full Slate of Interesting –
Controversial
Topics
I usually thoroughly enjoy these Forums
But… this will be a tough presentation for me
I
am in the process of making
several
difficult decisions that impact
a
lot of people…and that’s not easy
For those of you who have not attended one of my past Forums, here’s a quick overview:
I’ll run through my presentation as
quickly as possible to
stay on
schedule – probably 45 minutes or so
I’d ask that you please hold your questions to the end
At the end of the presentation, I’ll stay
as long as needed to answer your
questionsSlide10
Agenda
Funding Plan Overview
WCC – YMCA Project
Stadium District Plan
New Hotel
Concept
Water & Sewer rates
Residential Matching Assistance (Grants)
Quiet
Zone (Whistle Ban
)
Miscellaneous ProjectsSlide11
Funding plan overview
Important background info for today’s presentation
Extremely unusual & complex financial situation
Our Assessed Valuation (Taxable Property) is expected to grow significantly in coming years
The growth will be short lived and then drop back down to slightly more than it is today
Goal – Capture the maximum opportunity for CitySlide12
Funding plan overview
New growth
will be
captured in
our TIF District:
Allows us to borrow to fund capital improvement projects
While
there is not enough time
to
discuss the
specifics
at a Public Forum, this
is
the
strategy that provides
the
biggest bang for our buck
Important Factors:
We don’t yet know all the financial details
Money must be spent on Projects
All debt will be repaid with Industrial tax revenueSlide13
Funding plan overview
With that said, we are hoping that
many
of the projects in our plan can be funded in the short term, versus waiting to pay as we go
Because the
Funds are
limited, m
y
hardest task is to identify the projects that provide the biggest benefit to the
communitySlide14
Funding plan
I thought
a brief review of the Funding Plan would clarify:
That there
will be Capital Funds available
Why
we will take on new
debt – (NWI Times)
That
none of the debt repayment will be paid by the residents
I was expecting to formally announce a few of these new projects today, but our final Financial Analysis was not completed in time.
So u
ntil
the money is in the bank, it’s prudent
for me to
take the cautious approachSlide15
WCC opportunity
HistoryI know many of us “Old-timers” grew up in this building
It is an important part of our community and our past history
I
’ve fought hard to maintain the building and invest in improvements over the years
But, it’s a huge financial drain on the City’s budgetSlide16
WCC opportunity
Background
$
750,000 in (WCC only) annual operating expenses
$250,000 in (WCC only) annual revenue
$500,000 annual loss or
subsidy
None of the expected Capital $$ can be used to offset these operating costs
This loss was much worse in previous years, but improvements made have reduced the burden
New windows
Energy efficiency improvements
Staffing changes
Increased revenueSlide17
WCC opportunity
Background
Why is the subsidy so large?
Inherited building – but no budget to support it
Laws prevent or limit us from making a profit
Always more difficult for a public entity to increase costs or reduce the workforce
Always had surplus funds to funnel to operation
Tax Caps have changed that dynamic
Maximus “Good Government”
Study (2005/2006)
Recommended the sale of the buildingSlide18
WCC Opportunity
D
ecided to explore all options before divesting property
City Actions to Date
Internal Task Force reviews
Commissioned an IU-SPEA Study to review the operation and make recommendations
Study indicated the best
“Financial”
solution was to privatize the building as a Full-Service Heath Club
Makes sense – Gyms, Pool, Track, Fitness area, etc.
Issues with this solution included:
Displaced Youth/Seniors - Cost associated with the displacement
Difficult to return to current operation if project failed
Reviewed and studied other options including:
Streamlined City Operation
Privatization – non-Health Club operation
Sale of BuildingSlide19
WCC OPPORTUNITY
Ideal Solution would:
Continue to provide community minded programming similar to today’s operation
Continue to serve all age groups of the community
Allow the City to maintain ownership of the building
Reduce or eliminate the City’s $500K subsidy
Allow for a workable “Exit Strategy”
The only option that provided all of these benefits was the YMCASlide20
YMCA proposal
Lease the building for $1 per year
YMCA to pay all operating costs associated with their operation including:
Staffing
Utilities
Maintenance
YMCA to have complete control of the operation
Set their own ratesSlide21
YMCA proposal
Benefits include:
Immediate savings of the $500K annual subsidy
Continued and
Improved
Community Minded Programming and Facilities for all
ages
New operation will be much improved over today
YMCA Expertise
Renovations
New equipment
Additional Programming
ChildcareSlide22
YMCA proposal
Benefits include:
Continued
availability of facility for:
Emergency Shelter
Public Events
Building remains under City Control and Ownership
We will essentially act as the landlord and maintain the primary structural components of the building
Only people who choose to use the Facility will paySlide23
YMCA proposal
Important Factors:
Displaced employees will have multiple options
Bid/Transfer into open positions
Early retirement
Interview with the YMCA
Severance to all, including part-time employees
City will invest to renovate the lower level and complete the lobby restoration as planned
This would have occurred regardless of the option chosen
All donations to the lobby renovation will be used as intendedSlide24
YMCA proposal
Important Factors:
At least 4 of the 12 bowling lanes will be removed
Option to remove all 12 lanes is being reviewed
Cost – Funding dependent
Bowling League
options for this season limitedSlide25
YMCA proposal
Important Factors:
YMCA is an extremely reputable organization
They have funding avenues simply not available to the City
They already have a proven track record in NWISlide26
YMCA
Timetable
Signed MOU in place
Finalize YMCA Lease ASAP
Employee bidding and transfers by year end
Close building on January 1, 2014 for construction
Estimated savings of closing the building for construction ranges between $
100,000
-
$200,000
Construction January – June
Reopen under YMCA control in June-July
If we cannot agree to terms with the YMCA by the end of construction, we will operate the renovated facilitySlide27
YMCA
This is
simply the
best business
decision
Not
everyone will agree with
it, but we can’t continue operating in the deep redSlide28
Stadium district plan
Now for controversial project #2
I hope you had a chance to review the graphic to get a feel for what I am proposingSlide29
Stadium district plan
This project will:
Provide the needed infrastructure for new BP investment
Provide the needed attractions to create a destination place
Provide new “diverse” residential opportunities
Provide
multiple new commercial opportunities
Serve
as the ‘Gateway’ into the Lakefront
ParkSlide30
Stadium district plan
While there are still some moving parts in the Plan, here are some of the highlights:
The project area includes all properties east of the Schrage Avenue east alley and north of 121
st
All of Old Standard Avenue
All of Old Center Street
All of 119
th
Street
All of Front Street
Over 75 properties will need to be acquired
(Additional comments on this topic later)Slide31
Stadium district plan
The Proposed Plan (market driven) includes:
A variety of New Residential units
New commercial/multi-use buildings
Senior Citizen market-rate apartments
Multiple new restaurants and eateries
Entertainment venues – Museums – Sports Facilities
An allotted area for new BP development
Road closures and new roadways
Oil City Stadium additions
100’s
of new parking spacesSlide32
Stadium district plan
Moving Parts - Entertainment Venues
Museums
Whiting-Robertsdale Museum (Refinery Component)
Chicago
Baseball Museum
Strong commitment to lease the 2
nd
wing if we build our museum
National
M
ascot Hall of Fame
Picking up momentum
Moved from a Pipe Dream to a reasonable chance
Flying their Team to Whiting in September to present a proposal
Sports Venues
Expansion of Oil City Stadium to accommodate Minor League Team
Currently reviewing a proposal to include an Ice Arena to accommodate a Minor League Hockey Team
Children’s Activity Center optionSlide33
Stadium district plan
Market Based Discussion
Heavy developer interest
Financing projects in Whiting is an issue
No development history
No market data to support condo sales prices
No history to support high rents for apartments
Glut of condos in Chicago market -
forcing high
pre-sell %
“Village
” Project demise
1500
Block 119
th
Street Project
will hopefully
open the door
Almost
all developers utilize the financial markets
Could determine final product mixSlide34
Stadium district plan
Acquisition of Property
I am well aware that acquiring someone property is not always a welcome event
We will be compassionate and take great strides in making sure the transaction is fair
If a property owner has been an asset to the City, we will bend over backwards to accommodate them
Finding new homes/apartments
Senior Building construction
Trading
, etc
.Slide35
Stadium district plan
Acquisition of Property
BUT………
If a property owner has neglected their property for decades, I will use every tool in my bag to acquire their property at the lowest possible cost
I won’t allow bad absentee landlords or property owners to impede our growthSlide36
New hotel concept
Moving on to controversial project #3
You have heard me talk about this in the past, but if we want to grow and increase our tax base, a local hotel is a critical component
As I stated in the past, such a hotel needs to fit our community, not a hotel developer’s plan
If it’s done right, a new hotel will not only provide a needed resource, but significantly benefit our tax baseSlide37
New hotel concept
We have been in discussions for months about possible locations, and the optimum location always points back to the Park
The most acceptable location in the Park is depicted on the layout on the table
This concept is a $20M investment
The back of house operations would utilize the back side of the parkSlide38
New hotel Concept
In the coming months, we will be discussing the project with multiple developers
At this point in time, I’m supporting this location and will work to move the project further ahead so we could fine tune the details
Public ProcessSlide39
Water & Sewer Rates
Now for controversial topic #4
To continue improving our water and sewer infrastructure, we will need to raise additional revenue
Example:
A new water line is needed on 119
th
Street between Schrage & New York
Estimated Price Tag - $1 million
Annual Gross Water Department revenue - $550,000
Rates have been flat for 13 years
Because we have made considerable operational changes to improve our efficiency
I will request a small $3 to $5 monthly increase soonSlide40
Residential matching grants
Somewhat controversial topic #5
We’ve been flooded with calls asking why the matching residential grants are not available
The answer is:
We are attempting to allocate
funds
to resurrect the program for
ONE
more round of grants
Absolutely no guarantees, but the program will not be available any sooner than spring of 2014Slide41
Residential matching grants
Important Points
Must help a broad based portion of the community
Must focus on areas in need of development
Need
a large pot to be able to distribute fairly
Poor
use of Tax dollars, need special 1-time funds
Special
program – cannot fund indefinitely
Commercial Investment critical to community
Will continue limited commercial grants ~$50,000 total
Impact shared across entire community
Stirs economic development to improve tax base
Detailed Strategy
availableSlide42
Quiet zone
No Controversy here
Everyone agrees that this is a project worth pursuing
Background
3 independent railroads
80+ trains a day
Low vehicular traffic counts
No requirement for railroads to improve technology like other communities
We have taken the necessary steps up to the point of committing the funds
$400,000 per crossing x 6 = $2.4 millionSlide43
Quiet zone
There is valid increased public concern
City Council has identified the project as one of their top priorities
It all comes down to funding
Barring an unforeseen catastrophe with our Funding Plan– this project
will
be funded
Even after funding is allocated, the project will not happen overnightSlide44
Miscellaneous News/issues
Lakefront Update
End of September – Current Phase complete
November – INDOT Phase begins
Connecting trails over tracks
Entry way beautification
Existing pathways redone
Event structure – Gazebo - Formal Garden
Design underway with completion next year
Finished Landscaping
Spring/summerSlide45
Miscellaneous News/issues
Lakefront Update
Whihala Parking Improvements
Next summer
Dog Beach
2014 start – Late Fall – Early 2015 completion
Whihala Lighting
Late 2014 into 2015
Administration Building – Boat Club
2015?Slide46
Miscellaneous News/issues
Lakefront Update
Gun Club Restaurant
Conceptual Drawing – Vavrek Architects
Start construction January, 2014
Completion – Fall?
Beach Parking
Reviewing sign policy – 1 sign at each entrance
New Parking Enforcement Crew beginning next yearSlide47
Miscellaneous News/issues
Atchison Avenue Parking (St. John)
Nearing Completion
Joint Project – City of Whiting & Parish
Increased parking – allow for new development
Dog Park
Whiting Dog Beach – Hammond Dog Park
Little League Improvements
T-Ball Field – by next summer
?Slide48
Miscellaneous News/issues
Indianapolis Boulevard
May bid letting
June – November construction
Includes:
Paving, Lighting, Turn lanes, Sidewalks, Trees, Sewer lining,
H
ydrant improvement
Partnership with:
INDOT and HammondSlide49
Miscellaneous News/issues
117th
Street (Cleveland to
tracks)
Bond fund dependent
Will be ready for bid this fall
Includes:
Paving, Sidewalks, Lighting, Sewer, Water, Oliver Street intersection improvements, Brick restoration at Park entry, Bike Path connections
Hoping for January letting – 2014 constructionSlide50
Miscellaneous News/issues
Parking Projects
1500 Block 119
th
Street
Building construction dependent
Spring 2014?
Schrage/White Oak/Ohio (Whiting
B
aptist Church)
Acquisition Dependent
Church agreement not finalized
Spring 2014?
St. Mary’s Church discussion
– School & ParkingSlide51
Miscellaneous News/issues
ADA Compliance
Sidewalk ramps – crosswalks
Goal to be 100% compliant by 2015
Playground Analysis – Upgrades
2014-2015
Illiana Hotel
City has taken action to take ownership of the property via the tax sale process
Stay tunedSlide52
The End
Q&A’sOne stipulation – If you ask a question, please let me know if you live in Whiting or in Robertsdale