 Thank you, Mayor. It's not what happens to you that determines how far you will go in life. It is how you handle what happens to you. Thank you. Would the clerk please call the roll? We have 14 present, and we are missing Alderman Carlson and Alderman Manichuk. Both are excused. Please stand and join me in the Pledge of Allegiance. The Pledge of Allegiance is to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Next, we'll go on to approval of the minutes. Alderman Hammond. Thank you, Mr. Mayor. I move to approve. Second. Thank you for that motion and support. Is there any discussion on the minutes? Seeing none, all those in favor of the minutes as printed, would you please signify by seeing aye? Aye. Opposed? Motion passes. There are no resignations tonight. No council appointments and no public forum. Next, we'll move on to the mayor's announcements. Tonight, I'd like to give you a report from the trip that I and 25 other residents recently made to Esslingen, Germany, Sheboygan sister city. It was a privilege for me to make this trip and represent the city of Sheboygan and reaffirm our commitment as a community Esslingen and the value of our partnership. In the group of residents making the trip, there were members from people to people, Concordia German singers, the mayor's international committee, and host parents, past exchange students from Esslingen and other areas to Sheboygan. We arrived in Esslingen and were greeted with a luncheon at their old city hall. They do have two city halls. The oldest one is used for meetings and ceremonial events and the other is located across the street and houses their administrative offices. After a traditional German lunch, ceremonial speeches and toast by their mayor, Dr. Jurgen Siegeler and myself, we were then given an escorted tour of the old Esslingen. This area is over 1,200 years old and they have a population of 91,573. They refer to our sister city relationship as twinning and they have a department in their city hall to manage the 10 twin city relationships that they have around the world. Sheboygan is Esslingen's only twin city in the United States. Friday was an official dinner with the mayor and city officials. It was also a time to exchange gifts. The Esslingen mayor presented me with this piece of artwork which shows off two of their prominent old features. That would be the castle, which is located on a high hill and overlooks the city of Esslingen and the twin towers of the church of Dionis and I in turn presented him with a carry coats water color called Sunrise Charter and this ended up being pretty fitting because when he visited last in 2007, he went out for a charter fishing trip with mayor Schramm at the time and caught the biggest fish on that day. So I told him that if he looks real closely in our picture we presented him, he can see himself in the back of that boat. In his remarks, mayor Sieger reiterated that one of the primary goals of our twin city relationship are the student exchanges. While there were 12 students involved in the middle school student exchange that comes up this summer, there were 13 Esslingen students that could not be matched and last year we did not send any high school students in the student exchange, only the two students from Esslingen came to Sheboygan for the first semester. I pledged that we would work with our partners and people to people in the local schools to try to rectify this imbalance in the student exchanges for future years. So if you or any of the viewing public know of some students that would be interested in either a middle school or a high school exchange to Germany, we'd like to talk to them so we can connect them and tell them what the procedure would be to follow through with that. Mayor Sieger is facing a reelection this fall, but if all goes well he plans to lead a delegation to Sheboygan in 2015. Our last stop in Esslingen was with the fire department. They visited Sheboygan in 2010 and had such a great time when they were hosted by the Sheboygan fire department that they really wanted to do something special for our delegation. They provided us with a canoe trip on the Necker River and we went out in eight person canoes and paddled around the countryside and through the old village. German dinner at the fire station was also provided and we now have seen the beautiful city of Esslingen by foot, by bus and by water. We presented the Sheboygan fire department helmet and officer cap to them from the Sheboygan firefighters. My thanks go to the mayor's international committee for funding the mayor's flight and accommodations for this trip. I believe that we left a very favorable impression with our visit and we'll look forward to future exchanges with Esslingen. Our partnership exemplifies citizen diplomacy and global cooperation at a local level that helps to promote respect, goodwill and understanding of cultures and the appreciation of diversity. Okay, we'll go on to hearings then, Alderman Hammond. Okay, we have a hearing to amend the city zoning map to change the use district classification of various properties on St. Clair Avenue, North 14th Street and Erie Avenue from class NR6 to neighborhood residential to class UC Urban Commercial. Is there anyone that wishes to be heard? Is there anyone that wishes to be heard? Would you like to come forward? Please step up to the podium and state your name and address. It was Terry Bailey at about 1425 St. Clair Avenue. I'm just wondering if there's any consideration given to the people that live on the alley yet as far as parking, since that alley is going to be a dead end alley. How are we going to be able to get in and out of our garages? There's only two people on that alley and I don't see that there's enough room in that turnaround to get out. We have to turn around and go west instead of east and I don't see that there's enough room on that alley to do that. The way they're going to construct that. Is there anybody here from the construction company? Right now it's just a time for you to speak. We're going to be dressing this later and we'll bring that up under the discussion. All right, thank you. Terry, could you spell your last name for me? Bailey. B-A-I-L-E-Y. Okay, thank you. Is there anyone else wishing to be heard on this issue? Alderman Hammond. Thank you, Mr. Mayor. I move to close. Second. Moved and seconded to close the hearing. All those in favor signify by saying aye. Aye. Opposed? Motion passes. Next we'll move on to the consent agenda that's items 3.2 through 3.17. Alderman Hammond. Thank you, Mr. Mayor. I move to accept and file all ROs, accept and adopt all ROCs and put all resolutions in ordinance upon their passage. Second. Thank you for that motion and support. The consent agenda is before us. Is there any discussion? Seeing none, will the clerk please call the roll? I can mark you if you want me to just mark. Aye. I'm up to, I didn't get the result that I thought I clicked on. Okay, hold on. Can you refresh him? I can change that if you want, that's aye. Aye. All right. Done. 14 ayes. Motion passes. Next is communications and petitions. Item 4.1 will be referred to finance. Moving on to reports of officers. Items 5.1 through 5.6 will be referred to various committees under resolutions. Item 6.1 through 6.5 will be referred to various committees. Item 6.6 is a resolution by Alderman Hammond authorizing the submittal of an office of Healthy Homes and Lead Hazard Control Grant and approving the memorandum of understanding between the city of Sheboygan, Sheboygan County and Sheboygan Housing Authority. Alderman Hammond. Thank you, Mr. Mayor. First I'd make a motion to suspend the rules. Second. Thank you for that motion. All those in favor of suspension, please signify by saying aye. Aye. Opposed? Under suspension, Alderman Hammond. Thank you, Mr. Mayor. I move to put the resolution upon its passage. Second. Thank you for that motion and support. The resolution is before us. Is there any discussion? Seeing none, will the clerk please call the roll? Signed, Joe. 14 ayes. Motion passes. Next is item number seven, reports of committees. Item 7.1 is an RC by law and licensing recommending that denying the taxicab driver's license number 0 3 1 1 based upon his failure to accurately reveal all relevant convictions on his application, his record of violations related to the license activity and his failure to cooperate with committee. Alderman Vanderwill. Thank you, Mr. Mayor. I move that the RC be accepted and adopted. Okay. Thank you for that motion and support. Under discussion. Is Daniel Donoth here this evening? He's not here. We did invite him to our committee on two separate occasions and he did not appear. Is there any other discussion? Seeing none, will the clerk please call the roll? 14 ayes. Motion passes. Item 7.2 is an RC by law and licensing recommending denying the beverage operator's license 0 3 3 9 based on her failure to accurately reveal all relevant convictions on her application or record of violations related to the license activity and her failure to cooperate with the committee. Alderman Vanderwill. Thank you, I move the RC be accepted and adopted. Thank you for that motion and support. Under discussion. Is Jennifer Freeland here this evening? She's not here. We did invite her twice and she did not appear either time. Thank you. Any further discussion? Seeing none, will the clerk please call the roll and passage? 14 ayes. Motion passes. Item 7.3 is an RC by law and licensing recommending granting various licenses. Alderman Vanderwill. I move that the RC be accepted and adopted. Okay. Thank you for that motion and support. Is there any discussion on the motion? Seeing none. All those in favor, please signify by saying aye. Aye. And opposed? Motion passes. Next we'll move on to ordinances. Items 8.1 and 8.2 will be referred to the public protection and safety committee. And then we'll move on to item number nine matters laid over. 9.1 is an RO number 28 of 1415 by the city planning commission recommending amending the city zoning map to change the use district classification of properties located at 1421 St. Clair Avenue, 1417 St. Clair, 1411 St. Clair, 1132 North 14th, 1126 North 14th, 1124 North 14th, 1120 North 14th and 1114 North 1220 Erie Avenue from NR6 to neighborhood residential to UC Urban Commercial. Alderman Billinger. Thank you, mayor. I move that we accept and file and pass the ordinance. Thank you for that motion and support. Is there any discussion on the motion? Well, I guess I'd like to see someone respond to the earlier gentleman's question. Chad, are you able to respond to that? Point of order, yes. Buttons aren't working. I think for the council standpoint, these are the properties that are associated with the redevelopment of the corner of 14th and Erie for the new CVS store. The entire development team is with us today. It might be worthwhile for the council's sake and for the gentleman that spoke for them to do a brief kind of overview of the project and what they're looking at. And maybe they as part of it can address the concern of the resident with the turning radius in the alley. So I would ask if you could open the floor to these gentlemen. So moved. Second. It's moved and seconded. Any discussion? All those in favor signify by saying aye. Aye. Opposed? Very good. You want to step up? Good evening. My name is Richard Donner. I'm the attorney for the applicant, TMC Crawley, Wisconsin 2 LLC. They are the developer of the proposed CVS pharmacy that would be on the southwest corner of 14th Street and Erie Avenue. This, what we're here for tonight is a rezoning of eight of the 10 parcels that are a part of this site. They're currently zoned a neighborhood residential and we would, we're asking the council to rezone to urban commercial. The CVS as you know is a national pharmacy chain and the proposal is to build a roughly 13,000 square foot neighborhood pharmacy that would operate similar to the Walgreens across the street for 24 hours and have a drive through. We did have a neighborhood meeting on May 8th at the public library and got to meet the neighbors and got to listen to people's comments and some of their suggestions. And we were, we think we've been able to incorporate some of those into our submittal that for the approval of the site plan, the architectural review application that was submitted last week and will be before the plan commission and architectural review next week. In terms of, you know, addressing some of those concerns with the neighbors, they were concerned. Obviously the, there are two residential properties that are directly west of the site that, you know, they have logical concerns such as screening and we discussed that there will be a cedar fence built and trees built on the, I don't know if we've got a picture that might be easier to explain. So this is a site plan, just a rough site plan of the site. You see here, this is the western boundary. They're the two residential properties, excuse me. So we will be able to fence along the line here and plant trees along the property line. These will actually be on the CVS property but on the west side of the fence. So the neighbors will be looking at the fence and not the, excuse me, we're looking at the trees, not the fence. If you can see here, this is a little area that would roughly, I think it's 10 by 18. So roughly the size of a parking space that they've added so that the neighbors could in an attempt to address the neighbors' concerns regarding the vacated alley, so that they could do a Y turn out and back into that additional space and then exit towards 15th Street. We have the civil engineer here as well as the representative from the developer. We're happy to answer questions. Again, operations in terms of site plan and architecture are gonna be handled next week in front of the plan commission, the architectural review board, but we're certainly happy to answer any questions. Anyone else have any questions of the gentleman? I'm gonna be a little moved to make the turn it on just for us to get out on the ground. The property line, the property line is used by purchasing, once we're done with it, put the half of my property. Right, right, yeah. You're gonna go follow the reason by CVS property and what does it make me a turn it on? Well, if you see, it's just sort of a notch that is kind of carved out of here. Right. Yeah, in terms of where there's a snow, do they plow it straight through, do you mean? Well, I guess I'm trying to understand your question. Right, okay. Sure. Right, well if you see, as we talked about, and this is, but again, be a little bit more of the operations that we can discuss at the plan commission as well. But if you see, as we talked about, one CVS is fine with allowing the snow to be piled up in that space and in the surrounding area. I think it's gonna be tight in the winter, but I think there's room, particularly with the driveways, backing each other to still accommodate. All right, I understand. If we have a winter like this one, where there's a lot of snow and it's cold and it sticks around for a while, there is a space to put it in that turnaround. There will also be additional area on either side. You can see where there's no trees right there. No, no, and we're happy to talk to the staff about that in terms of the plan of operation. Yeah. I just wanna make sure that it's good because you already build that and then all of a sudden it's fine, I can use it. Absolutely sir, I think that's a very legitimate concern and snow is, I mean, you can't be snowed in. I agree. Sure, no I think that, I think we have a plan to accommodate that and I think we can certainly listen to further suggestions you may have in terms of, where to put the snow? Are there any other questions by the Alderman? Just to address that comment, I think as part of the conditional use permit process that they're gonna be going through next week at the Planning Commission, we can address those concerns as a contingency or condition in the offer, in the middle of the project and get some type of agreement there worked out between both the CVS owner and the gentleman that's speaking in the back and we can take care of that as part of the conditional use process. Yeah, and we're representing tonight that will absolutely allow for that. Okay, the motion's on the floor, right? Motion's on the floor to accept and final and pass the ordinance. Okay, if there's no other discussion will the clerk please call the roll in the motion? 14 ayes. Motion passes. Next, we'll go on to item number 10. Notice to discharge the finance committee regarding resolution number four of 14-15, Alderman Hammond. Thank you, Mr. Mayor. First, I'd like to move to have this discharged from the finance committee. Second. Thank you for that motion and support. Is there any discussion on that motion? Seeing none, will the clerk please call the roll? Motion to discharge is 14. Thank you, under discharge. Thank you, Mr. Mayor. I move to put the resolution upon its passage. Second. Thank you for that motion and support. Is there any discussion? Under discussion, Alderman Hammond. Thank you, Mr. Mayor. I wanted just to comment on this real briefly. This was held in finance because there was some question regarding a few bankruptcies that had happened with parties related to SMET investments and SMET construction. We brought in a gentleman today, Mr. Palachek, from SMET. We met as a finance committee and discussed those concerns. Attorney McLean also had an opportunity to speak with their legal counsel and address those concerns. So again, can't speak for the rest of the finance committee, but myself, I'm comfortable with it. The agreement outlines that there needs to be representation of financial capability, whether that be a letter of intent or something to that matter. So again, that's the reason we discharge this from finance. If they wanna get to developing this with all the processes and procedures of permitting that needs to happen, we wanna let them go on their way. So thank you. Thank you for that discussion. Alderman Boren. Thank you. Who brought this issue of the foreclosure lawsuits and that type of thing? Who brought that to the attention of the finance committee? Alderman Hammond. Thank you. Mr. Mayor, that would have been one of the finance committee members. Who was it? Alderperson Cotth. I wanna thank Alderperson Cotth for doing our homework on this. It's a shame that this wasn't brought up before. Had she not made discovery on this, this wouldn't have even came to light and even we would have not even had probably a legal opinion from our city attorney. And it's too bad that this has to come from a committee member and not our development director, our CEO or somebody. But I'm glad that we do have a couple of relicters on the Common Council and Alderperson Lussard and Cotth. And I just wanna thank them for their research. I'm not gonna be supporting this tonight. First reason I'm not gonna be supporting it. I don't agree with selling this property for what is it, 10 bucks? When other properties around the city are being sold for asking and significant developments being made on that property, I find it hard to believe that this development is contingent on the developer getting a sweetheart deal on this. I think it sets a very bad precedence for future development. And I just find it hard to believe that this deal would hinge on not paying full asking for the property. Also, I have some concerns about what the development is gonna consist of in reading the 30 page agreement that I did. Part of it may be a business and the other part of apartments. With the way the situation is right now for their target for renting these apartments, young professionals, it's gonna take a substantial income, a substantial net income for them to be able to qualify to rent an apartment in Sheboygan for $1,200 a month. Also, for a $1,200 a month apartment, I find it, I don't see where anybody would wanna live in that location and pay $1,200 a month with a view of Martin Automotive across the street. It won't even, if they have their window open in the morning, they wouldn't even have to set their alarm clock. They could wait for Martin Automotive to change a tire to be able to wake up. So I'm not supporting it for those reasons. I'm all for development, but with some of the past legal history of this LLC and their members personally, I also personally looked that up today on CCAP. And I understand that that's part of the process, I guess, with some developers that they're taken to court quite often, but I'm just a little bit uncomfortable with some of the lawsuits that have come forth. And some of them, two of them have been filed against one of the members of the LLC recently. They haven't gone to court yet, but they've been recently filed. And I'm also concerned about the one up in Green Bay that's currently pending. For those reasons, I will not be supporting this tonight. Thank you. I was wondering if you could please give the Alderman a little report on those different matters. Sure. The primary matter was a foreclosure action brought by Johnson Bank against several entities that included SMET investments and included two principals in SMET investments, Chad and Scott, SMET, who had issued personal guarantees on the loan. That was a loan by Johnson Bank in the amount of, I think, 2.4 million, something like that, on an office building across the street from St. Mary's Hospital that the group GLR properties had purchased for investment that was leased and occupied by St. Mary's Hospital until fairly recently when the lease came up and they didn't renew the lease. As explained by Mr. Polichek from SMET Construction earlier this afternoon, they kept making the payments and tried to lease that property, get another tenant and were unsuccessful in doing that. The second parcel that was subject to the mortgage was a vacant piece, a development piece, as I understand, out of ways on a county highway that I don't know, Green Bay very well, county fee or something like that. And as it stands, the court ordered the foreclosure. Property was sold and it was purchased by Johnson Bank and there's currently an issue over the value that the Johnson Bank paid for those two properties. And so that issue is still pending because Johnson Bank did not waive deficiencies on the foreclosure action, there is currently based on the price that they proposed to buy it for in the sheriff's sale, there's like a $400,000 deficiency on the loan. That would be a personal liability of the guarantors as well as the other, there's several other LLCs that were parties to the deal. So that is being litigated by attorneys for Smith as well as the GLR properties whose same attorney is representing them all. They're arguing that the value should be higher so that the deficiency judgment would be lower, less potential personal obligation. The other lawsuit that Alderman Born was referring to was one filed not too long ago by Violia and it's a declaratory judgment action against I think it's one of the entities that Smith Construction has an interest in Riverwalk Development or something, Riverwalk Apartments and also against another entity that is involved in the particular project that again Mr. Polichek discussed at the Finance Committee meeting. Mr. Polichek's not familiar with that lawsuit as to what the suit is over but we're assuming it's a declaratory judgment over garbage collection fees issue. It's not a contest over ownership of property rights or anything like that. So those are the actions that I'm aware of. Thank you for that information. Chad, did you wanna address the council? I'd like to address a few points of Alderman Born's in regards to the rent of those apartments that were proposed. In the agreement it's proposed as a $2.5 million minimum investment. The reason that that's in there is because at this stage of the game we don't know what type of soil is underneath that parcel of the tripar that would allow for a larger development. We talked a lot about that during the negotiation stage as to ultimately we would like to see a four story development happen there with up to 48 apartments. However, if the soil underneath the ground doesn't allow that to happen they're gonna be forced to build a two story at 32 units. In talking about the price per unit it is safe to say that they are charging $1,300 if they build the four story and they have what they're calling penthouse apartments on the top floor which I believe is only eight apartments. The rest of them will be in line with what we feel the market can bear which is a two bedroom at 950 and a one bedroom at 850. We've looked, we know that we've talked to our employers and the number of people that are leaving this community young professionals because they cannot find housing in particular in the downtown with the new millennium and the Generation X is skyrocketing and there's a lot of interest in moving downtown. We don't have departments that they're looking for. If we wanna grow the community we all heard as part of the Harbor Center Business Improvement District plan that we need to address the housing situation. So it's an unfortunate matter that we're selling the land for $10 but we also looked at that as in order to make that perform a work and be able to move forward and do a development like this and really kind of set the threshold on the apartment rent in our downtown which has been pretty low because we only have subsidized units we would be forced to put some incentive in the project and our incentive in the project was the price of the land. Thank you. Thank you very much. Alderman Hammond. Thank you Mr. Mayor. One other note on that too. You know we talk a lot about or other person born mentioned that we're not getting financing or we're giving them financing. We do this all the time. This time we're giving them the land for $10 other times we call it TIF incentive. So this is not something that it's just a different way of helping them make this work. They're not coming to us asking us for TIF on an ongoing basis. The city's contribution to the project is this and then we move on. So we've done this in the past by using TIF to help development get off the ground. Thank you very much. Alderman Dina here. Thank you and I just want to make a response to one of Alderman Boren's points. I really dispute the characterization of this as a sweetheart deal. It makes it sound like something is not right. Like there's some sort of graft or corruption involved. And nothing could be farther from the truth as Alderman Hammond explained. In the course of business, this is these are the kinds of arrangements that we make in order to make a project actually saleable and doable. And I know Alderman Boren is extremely interested in development and in increasing the tax base in our community. So the characterization of this as a sweetheart deal puzzles me. Now I've been back in town since 1981 and I can't tell you the number of times that I've gone up and down 8th Street and looked at that ghastly piece of property sitting there. Unlandscaped, sloping hill, it's an eyesore. I am so thrilled that somebody is willing to take the tremendous risk of we don't even know if that soil is contaminated or not. So these folks are willing to bring in two separate plans and have one plan, hopefully the larger plan work, but if not, they're willing to build on contaminated property and move this project forward. And I don't know about all of you, but I was pretty excited about the business improvement district master plan. And then to actually have some activity going that will make that plan work to me is really important. So I understand people can have different opinions about it, but to call this a sweetheart deal really impunes, I think the honesty of this body and of our employees as we're trying to make our downtown actually look good and work. Thank you, Alderman Coss. Thank you, Mayor Vandersen. I will be voting on this resolution. I do feel that prior to signing the offer to purchase, we're gonna have a letter from the bank saying they're good for the money and it's a lot of money. And also as far as setting precedent, we've already set precedent in the past. So this isn't setting new precedent, it's already been done. So thank you. Thank you for those comments. Alderman Bellinger. Thank you, Mayor. I happen to sit on the finance committee and this afternoon we had the privilege of listening to Mr. Palachek address any concerns and questions that the committee had and he did so forthcomingly, answered everything. In addition to that, he also did a presentation for the committee on all their investments or their properties, their portfolio that they have, mainly in the Green Bay, Fox Valley area and it was quite impressive to say the least. And to have somebody from that area come here, want to invest in our community, I'm excited for it and I look forward to it and I'm gonna support it. Thank you. Thank you very much. Is there any other discussion on the motion? Yes, Steve. Just to work off of Alderman Cotts' comments about the language in the agreement, although you're acting on a motion to approve signing the agreement, it does say prior to execution of the agreement by the city, the developer shall submit to the city evidence satisfactory to the city that the developer has the financial capacity to purchase the property and construct the project in the manner and by the term time set forth in this agreement. Doesn't call for binding finance and commitment but some letter from a financial institution that would indicate that they've got the wherewithal to do the project. I think it helps me and I would hope it would give the council some assurance that despite the issue with the foreclosure on these other properties that they're gonna be able financially to swing this project if it goes forward. Thank you very much. Any other discussion? Seeing none, will the clerk please call the roll? Portiai. All right. That's okay. You're losing time. It's just slow. There it goes. 12 ayes, two nos. Motion passes. Next we'll go on to other matters, city attorney. 11.1 is an arrow by the city clerk submitting various license applications individuals for the period ending June 30, 2015 and June 30, 2016. That'll be referred to law and licensing. 11.2 is an arrow by the city clerk submitting various license applications businesses for the period ending June 30, 2015 and June 30, 2016. That also go to law and licensing. Next we have a closed session scheduled, Alderman Hammond. Thank you, Mr. Mayor. I moved the convening closed session on the exemption provided in 1985 1E, Wisconsin statutes for the purpose of deliberating the selling of public property where competitive and bargaining reasons require a closed session. Second. Moved and seconded to go into closed session. Will the clerk please call the roll? 14 ayes. Motion passes. We'll take a short five minute adjournment and reconvene. Thank you.