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NOTE:

IN ACCORDANCE WITH PROVISIONS OF THE ARIZONA REVISED STATUTES AND THE FLAGSTAFF CITY CHARTER THE SUMMARIZED MINUTES OF CITY COUNCIL MEETINGS ARE NOT VERBATIM TRANSCRIPTS.  ONLY THE ACTIONS TAKEN AND DISCUSSION APPEARING WITH QUOTATION MARKS ARE VERBATIM.  AUDIO RECORDINGS OF CITY COUNCIL MEETINGS ARE ON FILE IN THE CITY CLERK’S OFFICE.

 

SUMMARIZED MINUTES

SPECIAL COUNCIL MEETING

 

June 29, 2007

2:00 p.m.

 

A Meeting of the Flagstaff City Council was held on June 29, 2007 convening at 2:11 P.M., in the Council Chambers at City Hall, 211 West Aspen Avenue, Flagstaff, Arizona.

 

CALL TO ORDER

 

The Meeting was called to order by Mayor Donaldson.

 

2.      ROLL CALL

 

On roll call, the following were present:

 

 

Mayor Donaldson

 

Vice-Mayor Overton

Councilmember Cooper

Councilmember Haughey

Councilmember Kelty

Councilmember Swanson - Excused

Councilmember White

 

 

Also present were:

 

 

Acting City Manager, Mark Landsiedel

City Attorney, Patricia Boomsma

 

3.

Consideration of Consent to Assignments of Previously Approved Development Incentive Agreement:  Aspen Place at the Sawmill.

 

 

RECOMMENDED ACTION:

(1)

Approve Consents to Assignment and Approval of Assignees, Aspen Place North, LLC and Aspen Place South, LLC as “Qualified Successors” as described in the Development Incentive Agreement approved for Aspen Place at the Sawmill; and

 

 

(2)

Decline to approve Consent to Collateral Assignment from Aspen Place North, LLC to National Bank of Arizona.

 

Recommended Action (1):

 

Jeffrey J. Miller, from the law firm of Gammage and Burnham, distributed a revised Consent to Assignment and Approval of Assignee that limits the sales tax rebate generated by Aspen Place North, LLC to Aspen Place North, LLC, and leaves the sales tax rebate for Aspen Place South, LLC with Butler and Lone Tree, LLC.  The proposed changed language is as follows:

 

 

“Pursuant to Section 4(ii) of the agreement, the City hereby approves assignee as the successor owner of that portion of the property described in Exhibit A and as assignee of the sales tax rebate applicable to that portion of the property described in Exhibit A and, consequently, the City considers assignee as a qualified successor as contemplated by and described in the agreement.”

 

 

It was clarified that the revised consent eliminates the need for a second consent in reference to Aspen Place South, LLC.

 

Councilmember Kelty moved to approve as revised, seconded by Councilmember Haughey.  The motion passed on unanimous vote.

 

Recommended Action (2):

 

The Consent to Collateral Assignment from Aspen Place North LLC to National Bank of Arizona is required by the developer’s lender.  It compels the developer to assign to the lender, as part of the collateral security for the loan, the rights to the sales tax rebates provided for in the Development Incentive Agreement.  Essentially, the City retains the ultimate approval over any successor and any assignee of the sales tax rebates should the lender ever succeed to the interest of the developer in the real estate.

 

This type of consent is normally not needed in development agreements that “run with the land”, but, in this case, it is necessary because of the specific restrictions regarding sales tax rebates outlined in the Development Incentive Agreement.  It does not make the City any more or less vulnerable.

 

Councilmember Kelty moved to approve the Consent to Collateral Assignment from Aspen Place North, LLC to National Bank of Arizona.  The motion was seconded by Councilmember White and passed on unanimous vote.

 

4.

Discussion of City Manager Recruitment Process and Next Steps:

 

 

RECOMMENDED ACTION:

Provide direction on next steps.

 

Theresa Alvarado, Human Resources Director, presented the City Council with four options to consider in order to meet the City Charter requirement to fill the City Manager vacancy by August 30, 2007:

 

 

(1)

Appoint the Interim City Manager or someone else as City Manager.

 

(2)

Continue recruitment process with Bennett Yarger search firm.

 

(3)

Continue recruitment process with new search firm.

 

(4)

Combination of options.

 

Council considered a revised internal interview process which would include the Council interviewing and conducting one-on-one interviews with the top candidates, leadership interviews with candidates, one employee open forum, and a less formal meet and greet public forum.

 

Most Councilmembers felt that appointing a City Manager while continuing the search for candidates would discourage some applicants from applying because they may think that a decision has already been made.  Waiting to see if the new search process is successful before considering the appointment of the Interim City Manager as Manager would be less likely to muddy the new search process.

 

After discussion of a number of options, the Council agreed to hire a new search firm, see how the phone interviews go in July; and determine if it will be necessary to appoint the Interim City Manager as Manager by August 28, 2007.

 

5.

Adjournment of Special Council Meeting.

 

There being no further business to come before the Council, the Special Meeting was adjourned at 3:15 P.M.

 

 

                                                                         

MAYOR

 

ATTEST:

                                                                           

CITY CLERK

 

 

 

CERTIFICATION

 

STATE OF ARIZONA,

 

Coconino County.

)

)

)

 

 

ss.

I, MARGIE BROWN, do hereby certify that I am the City Clerk of the City of Flagstaff, County of Coconino, State of Arizona, and that the above Minutes are a true and correct summary of the Special Meeting of the Council of the City of Flagstaff held on June 29, 2007.  I further certify that the Special Meeting was duly called and held and that a quorum was present.

 

DATED this 22nd day of August, 2007.

 

                                                                           

CITY CLERK