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HomeMy WebLinkAboutMinutes - City Council - 06/26/1997CITY COUNCIL 26 JUNE 1997 The South Burlington City Council held a special meeting Thursday, June 26, 1997 at 7:00 p.m. in the large Conference Room, City Hall, 575 Dorset Street, for the purpose of considering two issues: tax stabilization agreement with EZP Golfco, L.P.; and appeal from the Burlington Free Press for public release of arbitration findings in disciplinary action against former City Police Officer David Lawyer. At the beginning of the meeting Mr. Hafter, City Manager, added a third item: consideration of the renewal of the liquor license for Quarry Hill Club. Members present:William Cimonetti, Chair,; James Condos, Joan Britt, David Austin and Terrence Sheahan. Also present:Charles Hafter, City Manager; Peg Strait, Assistant City Manager; Dean Zoecklein and Dean Economou, EZP Golfco, Inc.; Matt Sutkoski and M. Hirten, Burlington Free Press; Steve Stitzel, City Attorney; Alex Blair & Randall Kay, South Burlington residents. 1. Consideration of appeal from Mr. Mike Donoghue, Burlington Free Press, for public release of arbitration findings in Re: Disciplinary Action against Office David Lawyer. Mr. Hirten stated the Free Press' position that Officer Lawyer's termination happened in a public way, that Mr. Lawyer himself requested a public hearing, therefore they were "a little surprised" that the arbitration findings, which they consider public, were not made available to the newspaper. He also observed that the arbitration document would help the Free Press "close their coverage" of the termination, which they have reported to readers as it progressed. Mr. Cimonetti confirmed that Mr. Lawyer's disciplinary hearing, which would not normally have been public because it was a personnel action, was conducted in open session at the request of the employee and that all information relative to that hearing was released and continues to be available to the public. However, while the City respects the vigilance of the Free Press in requesting documents that are a matter of public record, the appeal to the Board of Arbitration was not a public meeting, as was stated at its onset, therefore the City's position is that the findings are confidential and not to be released. The City Attorney has advised the City that Vermont law does, in fact, make the written decision of a panel to a private hearing exempt from public inspection. All other Council members concurred. Mr. Hirten voiced the opinion that once Mr. Lawyer was given the opportunity to allow whomever he wished into the arbitration hearing, that hearing became "selectively" open to the public (open at the discretion of Mr. Lawyer). Mr. Cimonetti commented that this was a unique circumstance, as most employees request that disciplinary matters be made private from the beginning. In this case, where the first hearing was made public at the request of the disciplined employee, "it clouded the issue." Mr. Cimonetti wrapped up by saying he is relying on precedent in this case and that the piece of this process which was made public was done so at the request of the aggrieved employee, not the City's, therefore the arbitration findings would also be made public only at the request of Mr. Lawyer through his attorney. Mr. Austin moved to affirm the decision of City staff to withhold the arbitration findings, Mr. Sheahan seconded, motion passed unanimously (5-0). Mr. Condos closed the discussion by commenting to the Free Press representatives that "the real story" is that council's decision is to uphold the actions of staff in this matter. 2. Consideration of Tax Stabilization Agreement between the City of South Burlington and EZP Golfco, L.P. Chairman Cimonetti reviewed this item by observing that for approximately two years the City has been actively engaged in unique land use planning with this property of about 400 acres centrally located in South Burlington by working with the land owner to keep roughly 50% of the entire acreage as open space/recreational land with the balance dedicated to housing in a way which would make open space, rather than massed housing, most visible from public thoroughfares. The objective of the City has never been to subsidize a golf course, but to encourage nonresidential use and to preserve as much of this acreage as possible as open land. With the inclusion of a Jack Nicklaus golf course, Mr. Cimonetti observed that "this has become both an opportunity and an obligation for the City to do as much as it can to see that this use is viable and preserved. It is of value to the City to have the land left open, and to recognize that value as a reduction in potential property taxes is appropriate. It is not a desire to reduce taxes for the sake of development, it is a desire to stabilize taxes...for the continuation of open space." Further, the project is to offer recreational benefits to be enjoyed by citizens and guests in some cases--including winter uses (cross country skiing and sledding), providing a home course for the South Burlington High School golf team, 24- hour lead time for tee times for South Burlington residents (with proof of residency), guaranteed reduction of $10 in greens fees for the first 1000 rounds each season by South Burlington residents, and the contribution of one honorary membership to the City which is to be converted into a City recreation benefit. The stabilization agreement provides for full taxation of 100% of the stabilized property if any portion of it is sold. Also, sale or lease or change of use of any portion of the stabilized property will result in termination of the agreement. Change in tax laws (such as the current property tax reform effort) could also potentially terminate the agreement. Tax revenue on the property will remain at the current rate (approximately $9,000) for 5 years, then the property will be appraised @ 100% FMV and the increased value will be recognized at the rate of 20% per year for five years. Property subject to the agreement will be described in an appendix and includes the golf course and the first $300,000 of the clubhouse. Mr. Zoecklein described one other benefit to the City: the golf course is in the view corridor which the new bike path overlooks (distance of an estimated 2 to 3 miles) and this corridor is to be kept open for the enjoyment of recreation path users. Mr. Zoecklein clarified that it is their intent to accommodate the high school golf team during the week primarily, with special accommodation for special weekend tournaments. Also, EZP would like to retain some control over location of cross country ski paths, probably in cart paths where it is flat, paved, and will hold snow, and sledding will be directed to the planned residential areas until golf course greens are firmly established. It was the original intent of the agreement to include the 6000 sq. ft. clubhouse on the basis of a certain number of square feet. However, Mr. Austin observed that the clubhouse does not share the "unique" quality of the golf course itself except to the extent it includes a pro shop. He observed further that a restaurant/bar which admits anyone, or is designed to provide functions competing with similar enterprises paying non-stabilized taxes, is different-- "selling meals to the public is not unique...square footage is not relevant...I am less inclined to include that in the agreement." Mr. Cimonetti suggested that stabilizing a grand list value rather than square footage might be more appropriate. Mr. Zoecklein commented that "certain services are required to keep people golfing." Attorney Stitzel warned that the clubhouse would be difficult to reappraise in year five because there are no comparable sales. He suggested selecting a dollar value for stabilization, such as the first $300,000, as opposed to identifying specific portions of the structure or a designated number of square feet. This will eliminate the need for complicated re-appraisal methodologies for additions to the building. Regarding the current language requiring termination of the agreement in the event of sale of any portion, Mr. Austin observed that as long as the property is being run as a golf course the City may not care who owns it. Mrs. Britt disagreed, saying that new owners might not maintain the same standard as the current owners. Mr. Austin countered that we don't know whether the current partners will run the course at a standard the City considers appropriate or desirable--the key is maintenance of open space--"It can be a great golf course or not." Further, Mr. Austin suggested the City be realistic about its degree of involvement in operations--periodic financial statements and minutes of partnership meetings may be unnecessary. In response, Attorney Stitzel suggested the agreement language state that "if any property listed in exhibit A is not used for the 18-hole golf course, then it will be separately taxed." If the property is altered so it is no longer an 18-hole golf course, "all bets are off." Council voiced unanimous agreement that the land use is critical--ownership is not. The language of the agreement specifies that only residents, no guests, may take advantage of the 24-hour tee time reservation benefit. Mr. Austin suggested that all members of a foursome do not need to be residents--only the individual making the reservation, then each individual can be charged appropriately, allowing only South Burlington residents with proof of residency the $10 reduction. The privilege to make reservations in advance shall not apply to guests. Mrs. Britt requested clarification of "sponsoring" of the high school golf team. Mr. Zoecklein indicated that this had been discussed at length at EZP, where it was decided that the intent is not to purchase equipment or uniforms--the intent is to "coordinate with (the school) and give them reasonable use and access." Mr. Cimonetti requested they give the team "preferential use." Mr. Sheahan addressed the possibility that current owners might "farm out" winter recreation, emphasizing that as long as the property is run in a manner consistent with the stabilization agreement, the activities may be run by anyone. In summary, Mr. Cimonetti pointed out that the City is not trying to reward the owner of the golf course, rather trying to protect the land use. The City's intent is to stabilize the current amount of tax revenue, approximately $9,000. At this point in the negotiations, it is understood that all of this is the City share, none is the State's. In year 5 the stabilized property will be reappraised, and the owners are to have all statutory rights to the conventional appeal process. In year 6 the stabilized $9,000 is collected, along with 20% of the reappraised value. Year 7--$9,000 plus 40% of the previous year's reappraised value, etc. In year 10 grand list value is 100% and the property is fully taxable. This same methodology will apply to the piece of land leased from the Isham estate and used as part of the golf course by EZP. Mr. Stitzel recommended Council approve the agreement in concept for his re-draft and that Council meet publically Monday, June 30, at noon in Mr. Hafter's office with vacationing Mr. Condos participating by speaker phone to finalize the agreement. 3. Meet as Liquor Control Board to consider the license renewal application of Quarry Hill Club. Mr. Austin moved, Mr. Sheahan seconded, to adjourn as Council and convene as liquor control (passed 5-0). The liquor license renewal of Quarry Hill Club was considered. Mr. Hafter pointed out that this application was delayed due to delinquent taxes which are now current. The license was renewed by unanimous decision. Meeting adjourned 9:08 p.m. Council Clerk Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works.