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HomeMy WebLinkAboutCouncil.Minutes.02-14-1994.Special 409 Proceedings of the City Council, City of Cape Girardeau, Mo. Special S@SSIOt1 February 14 i 9 94 SLL.13703 SPECIAL SESSION - FEBRUARY 7, 1994 Council convened in special session on Monday, February 14, 1994, at 5:00 p.m. with Mayor Francis E. Rhodes presiding and Council Members Melvin Gateley, Melvin Kasten, David Limbaugh, Al Spradling III, and Mary Wulfers present. Doug Richards was absent. Pursuant to Section 7.08(a) of the City Charter, Council canvassed the returns and declared the results of the February 8, 1993, primary election for city council candidates in wards 2 and 6 upon Mr. Gateley's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none. The agenda was adopted as distributed to the council upon Mr. Gateley's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none. J. Ronald Fischer, City Manager, thanked the representatives of Boyd Gaming Corporation and Lady Luck Gaming Corporation for being present at the meeting to answer questions of the city council and city staff. He distributed to each company a list of questions and staxed that a written response to all questions must be received in the office of the City Manager by Friday, February 18, 1994, at 3:00 p.m. A copy of the list of questions is attached hereto and made a part of these minutes (Exhibit A). After the answers are reviewed by the City Council and city staff, a Memorandum of Agreement will be prepared for each company. It is the intent of the city that this Memorandum of Agreement be in place prior to the City Council making a decision on a specific riverboat gaming company. Question 1.E: Both Lady Luck and Boyd inquired as to whether this relates directly to what was in their respective proposals or whether this includes information to be submitted in addition to the proposals. After discussion, Mr. Gateley made a motion, seconded by Mayor Rhodes, to direct each company to stay within the parameters of the proposals. After further discussion among the council, Mr. Gateley withdrew his motion. Question 1.G: Lady Luck inquired as to whether this refened to regularly scheduled flights or charter flights. Mr. Doug Leslie, Assistant City Manager, responded it included either. Question 1.H: Boyd inquired what the phrase "what year" referred to. Mr. I.eslie responded it relates to infrastructure improvements necessary in future years. Question 1.I: Boyd inquired whether it was the policy of the city that the company would be required to comply with the traffic study when it is completed. Mr. Fischer responded that this relates more to an impact study on traffic flow. Lady Luck inquired if this question was asking whether the company is willing to fund improvements prior 410 Proceedings of the City Council, City of Cape Girardeau, Mo. Special S@SSIOn Februarv 14 19 94 SLL.13703 to the traffic study being completed. Mr. Fischer stated that each company should clarify — this in their written response. Question 1.N: Lady Luck asked the city to clarify the statement "interest of any kind." Mr. Mark Grimm, special counsel to the city, responded that this includes interests other than those that occur in the ordinary course of business. Boyd asked if this would include other entities that are developing a portion of the project that are not controlled by the entity submitting the proposal. Mr. Grimm stated it would include entities other than the one submitting the proposal. Mr. Grimm explained that it is the intent of the city to enter into a memorandum of agreement with each party prior to the selection process so all the key points in the development agreement will be agreed upon prior to selection of one company. A draft of the memorandum of agreement will be prepared from the respective proposals and responses to these questions. The drafts will be reviewed by the City Council and then forwarded to each company for their review. Preparation of the memorandum of agreement and development agreement will include negotiations with both companies. Question 1.D: Boyd questioned whether the bond/letter of credit will be due on the project as submitted in the proposals or if it should cover any additions made by either company. In addition, Boyd questioned when the bond is due to the city. Mr. Grimm explained that the bond should be on the entire project as submitted, including any additions, and that it will be due prior to the commencement of construction of the project. Discussion followed on the issue of bonding. Mr. Don Dickerson, counsel for Boyd, stated that it is up to the Missouri Gaming Commission to determine which company will get a license for this site, and until a license is granted, there is nothing to perform. Mayor Rhodes inquired as to whether these developments would fall in the enterprise zone and be eligible for state benefits. Mr. Fischer stated that city staff will look into this issue. Mr. Spradling asked Lady Luck the following two questions and requested they include ' answers to both in their written response: 1. The Missouri Dry Dock facility does not exist as it is depicted on the pictures supplied by Lady Luck. There are barges located from just north of the Dry Dock property south to the city wastewater treatment plan, including barges in front of their proposed development. How does Lady Luck intend to deal with and accommodate the Missouri Dry Dock facility without impacting their business? 2. There is a gas depot which has an unloading site on the river at the south end of their proposed development. Will that be removed, or how will that be dealt with? 411 Proceedings of the City Council, City of Cape Girardeau, Mo. Special S@SSIOtI February 14 1 g 94 SLL.13703 Mayor Rhodes asked both companies the following three questions and requested they include answers in their written response: 1. Have you contacted the Corps of Engineers as to whether they approve this project? 2. If the project site is rejected by the Corps of Engineers, please state an alternate location for the development. 3. Are you involved with Gold River Company:? Mayor Rhodes read a letter from a group of riverboat pilots who were concerned with placement of a boat at the Boyd site. A copy of the letter was distributed to both Boyd and Lady Luck. There being no further business, the Council adjourned upon Mr. Gateley's motion, Dr. Kasten's second, and the following vote: Ayes, Gateley, Kasten, Limbaugh, Rhodes, Spradling, Wulfers. Nays, none. � Francis E. Rhodes, Mayor � � � Gayle . Conrad, Deputy City Clerk 412 Proceedings of the City Council, City of Cape Girardeau, Mo. Session 19 SL�.13703 THIS PAGE INTENTIONALLY LEFT BLANK. u<�ia;•y� 1o:E+s a stv ..,,� a_�ur �Hrt 1-'UGL1�_ ��r:r.s r. u=, � � � Exhibit A �'A�`� "''`�� � 413 � KSI�IIOR�►NDUI�i TO: Boyd Gaming Corparatian and Lady Luck Corporation FROM: City of Cape Girax�deau DATE: February 14, 1994 sUBJ�CT: I�.ems to Discuss With Riverbaat Campani�s Monday, February 14, 1994 5:00 Study Sess�on with City Council __ 1. Items for Both Proposals: A. Does your p2an call for any temporary facilities or pre-project completipn startup? The boat can not start operations ur�tii ad�quate infrastiructure is in place tp support the devel�pmenti, includinq parking �and utilities. : B. Do you agree to pay the casts of independent p�an review and inspection services duxing development? C. Do you agree to pay the costs of all proposa� revi.ew expenses, if selectecl? o. Please further explain your proposed time frame and what as�urances (bonds, lett�rs of credit, escrow agreements) you would provide in meeting all of the devel.opment propasal. Who will secure this� Will you be willing to have th�s entire amount held until all of your pro�eCt is camplete? E. Please further explain your proposed funding to the Park Foundation and other arganizatians 1n C�pe Girardeau fo� �nl�tS.�l and annual contributions. F. po you have plans ta directly assist the Cape Girardeau School District through contributions to the s�Y�ool foundation? Yf so, to what degree and fox what time period? G. Whati is your proposed us� for the Cape Girardeau Municipal Airport facil.ity? Tour �ircraft with 30 passengers or mare wi�.l x'equire �ire and rescue services resulting in facility and staff�.ng costs. will you provide assi.�tance for this? x. City discretiflna�y f�nc�s in t�� way of percent�ge '' al�.acatian� af �d justed gross r�ceipts t�*ith stated minimums or st�;�ecf calculations were listed in the rc�u�st �ax praposal�. Yau chas� not to Complete this sect�on of �xhi�it A, please elaborate. Wiil this be adc�res,��;� �r� �.he cxe�,relapiment aq�eetn2nt? If so, what year? _ . �=Fr�i _>c�:� �.U.;�� ����- ;�r��z i;, stu�?xr ar�c� ��co�rEm�r.ac� i�,,��1��j�.���r{�te�� c�_ ;_.�;c= �������c �tu�y� Y Exhibit A 414 J. The Police Department recommends th�t a fire and rescue baa� be made avai�lable to serve the riverbo&t while underway. Will you prov�de this equ�pment? IC. The Police Dep�rtment xecommends screening riverboat patrons through a metal detector for firearm detection. Do you plan �his scxeeninq as part df your security pragram? L. Wi.3.l. you fund impact studies on water and sewer Pacilities and fund recommendations resulting from both studies? M. I�i�t aI1 political contributions made or contribu�tions �- made to any busines� entity or charitable organizat�on in Cape Gix'arc�eau county. N. Name any individual or business entity having; ox to the develop�r's knowledqe, is 2ike�y to have, an -interest of any kind in the developer ar the proposed ganiing - operation. . �. Does the developer des�x'e the Develapment Agre�ment to provide for an excl.usive arrangement (i..�. the City would _ agree not to �dopt a resolution in support of any other gaming operation. ) P. Please respond to the questians raised by the attached Mitt�st�rial A1liance Zetter of February 1�1 . 2 . Quest�ons Specific �o the Lady Luck Prdposal A. Absent a traffic stuQy, some obvious_ street �mprovements will need to be included ta service your propasal . ons of these will be the extension of �,orimier Street and construction of the intersection connecting it to the downtown area north. wili you cover the cost of this north extensian and improvementr tp Aquams� , Giboney and Wi�liam fram sprigg to Aquamsi? T- B. What is yaur plan for clearinq bl.�ghted ar�as tQ the w�st of your proposed development? - C. What wil� be yaur �nterim access plan be�ore and dur�ng construction of the new bx�c�ge route anc� bridge? D. Some Street improvements ma.y be required to handle this interim period. Are you willing to Finance these ; Xmpravements, even though they may npt rel.ate to youx permanent plan? E. The locatian of the competing propdsal would resulti in substantial tax revenues going to the downtown business dis�rict for im�arovem�nts. what would you otfer tnis area in lieu of the�e tax benefits? . . i•rl;�� a.s yauF plar► �o� de�iinc coi��r cressing the railroad ii�Y �I�I=i�,i�t� Ef:l� �C�r' ����S�L'lc3"'iS� � : .. w � i l)�+i. .-���d iG1� �.}':�L�'�tfl �.i".:� ilii.�!a.1�3�� �C-il-� :..1��.t:�^ 1J�. � . ��'ri^ �i'^�: F:; E `,�: ''`�.. . �:: F3`.._ S?"s_.� �i� �.'1 ''Sl ;�,i1C [%063t1t-0v:l"1 :' . .. _ . _ _ � F .. .. , , �,,�c�.. Exhibit A MQ�ORANUYri�+I 415 TO: Boyd Gaming corporation and Lady Luck Corporation FROM: City aP Cape Girardeau DA�E: February 14, 1994 SUBJECT: Items �o Discuss With Riverbaat Companies Manday, FG'bXuaxY 14, 1994 5:00 StudX Session with City Council 1. Xtems for Botri Propasals: � A. Does your plan call for any temporary facilities or pr�-project campletion startup? The bnat can not start operations until adequate infrastructure xs i�l pl�ce to support the development, including parking �r�d utilities. - � � - B. Do you agree to pay the casts of independent pl�n review and inspection services dU�'�ng development? C. Da you agre� to pay the cdsts of all proposal revi.ew expenses, if selected? D. Please further explain your p�oposed time frame and what assurances (bonds, lette�rs of credit, escrow agreements) you would provxde �n meeting all of the deve�opment pr4posal. Who will secure this? Wil]. you be willing to have this entire amount held unti�. all of your praject is complete? - E. Please furthe� explain your proposed fundinq to the Park Foundation and othex organizations in Cape Gi-�a�deau fax initia� and annual contributions. F. bo you have plans to directly assist the Cape Girardeau School pistrict thraugh contributians to the sc�iool taundation? Z� so, to what degree and �or wh�t: t�me period? � G. What is your proposed use for the Cape Girardeau Mu»f.Cipal AiY'port faCility? Tour aircraft with 30 passengers or mare will require �ix� and resaue services resulting in faci �ity and staffing costs. Wi12 you provide assistance for this? H. City �iiscretionary funds ir� the way a� percentaqe al�acations of adjuste� gross receipts with �tatec9 minimums ar stated calcul�tians �:er� listed in the req��est �ar pro��sals. Yc�u c�ose not to completE this sectidn af exhfbi� �J �,le�se eia�oratA. Wil.1 this be �ddres�ec� in the de��p]�opinerst �c�reem�r,�? If so, what �'�A2"? � . �al�? �QU �Ut2c� �!^iL �'L-e�-i��.G sss�<"7� nIi!` :C��'G�)IItT;iE.'l'IC�tt��.:f ?;r��,r�t'v��:=ui1�� �` �4;c� tt'��fi�� �tt�ia},� � � Exhibit A J. The Police Department zecommends tiha�l� fire and rescue boat be made avai2able to serve the riverboat while underway. Will you provide this equipment? K. �he Police Department recommends screening riverboat pat�ons through a metal detector �or �ir�arm detection. �o you pian this screan�ng as part a� your security �roqram? L. will you �und impact studies an water and sewex facilities ahd fund recommend�t�ons resulting from both studies? M. List all political contriDutions made or contributions made to any business entity or charitable organization in Cape G�rardeau County. N. Name any individual or business entitiy having; or to the developer's knowledge, is likely to have,i,an _ _ interest of any kind in the deve�aper ar the� proposed gaming operation. - O. poes the developer desire the pevelopment Agreement to� provide for �n exclusive arrangement (i .e. the City would aqree not to adopt a resdlution in support o� any othe� gaming operat�on. ) P. Please respand to the questions raised by the attached Ministerial Alliance lett�r of February i4. 2. Questions Specific to the Boyd Proposal A. The tra��ic study has not been completed for serving your Pacility, but some streets will obviausly have �o b� impraved. Some of these streets include W��li�m from Sprigg Street east to Water; Broadway from Perry Avenue to Clark Street; North Main from Broadwey to connect with Bend Road ta the n�rth, including realignment; and Independ�nce frnm water to Kinqshighway, including traf�ic signal replacem�nt and synchronizatzan. Aiso, the praposed Lorim�er s�reet connection from the new br�dge �outie to William will �e an important access to your developmen�. Will you pay for these fmprovements even thaugh they may be outside your immediate develapment? Will you also be w�llinq to finance the building of s�dewalks and ins�allation of street iigr�ts? � B. What is your plan for utilizat�on vf the shoe factory lot for parking, including p��ns tp hard surface that l�t? C. What is yaur planr�ed access �o the r�ver side of the flood a*a21? Specifica?ly, da you plan to use the �zb3����Y �a}e fo� an� &CCeSS purpos�s: � � Exhibit A 417 p. Do you plari additional fac�lities such as a hotel? If so, these plans will need to be taken into cons�deration in the infxastructure Xmprovements, particularly sewer and water lines. E. Why is the Walker Tract exCluded from the development? What is the proposed hotel site7 F. The development site proposed will elimi�ate a major fueling point for rive� pleasure boats. Will you provide f�ci��ties at Honkex's or other conveni�nt site to accommodate this? G. Do you plan to provide sprink3exs for your boat and - land side deve�opment? H. One of the drawings shows �ellevue connected to Main. Y� tihis proposed? _ � . Do you have an alternate dacking site planned--i�- your proposed site is not approved by the Corps of Engineers and/or Coast Guard? _ �. Address the interference of th� pedestrian walkway with Union Electric's power �ines. x. wi11 your p�rking and transportation be made avail�b�e free to the public and sha�ed with th� Downtown? . ' Exhibit A 418 � February 14, 1994 Ministerial Alliance 2601 Independence Cape Girardeau, MO 63701 T0: The Boyd Group Lady Luck of Cape Girardeau . � Greetings: � We have appreciated the willingness of the representatives of both the Boyd Group and Lady Luck to respond to the issues raised by the Cape Girardeau Ministerial Alliance. As we will indicate later in this letter , we hope that we can establish some form of ongoing dialogue with whichever one of you becomes the vendor for licensed gambling in Cape Girardeau. _ - • With the March 7 selection date approaching, we wou•ld`-�'ike to push you further on a few of the unresolved issues that most_ concern us. We feel that specific responses from you will ex�able our city council and our citizens evaluate you better now and avoid some of the misunderstandings that have arisen in other cities that already have floating casinos. The issues that we feel need to be clarified are: Local hiring: We congratulate the Boyd Group for proposing a figure of 70� minimum local hiring. We would ask that each of you affirm that figure (or more) for all levels of hiring: salaried personnel, wage earners, vendors with Cape Girardeau in their territory, distributorships, construction contracts, and service contracts. We also ask that you define "local" in whatever pledqe you make. We have in mind people who currently live in an area encompassing a 40 mile radius from Cape Girardeau' s city limits. We would like to encourage some form of reporting on this, especially after the first round of hiring and the boat is in the water as a matter of good faith in the public' s trust in yo�. Our concern in pushing this issue is twofold: : 1. We are apprehensive about an influx of job seekers and the potential for acerbating our tenuous housing situation. 2. The local campaign to legalize riverboat gambling emphasized that the issue was a jobs issue. Our concern is for those current residents who took their hopes for employment into the voting booth with them. f We do not want to see them left out. _ � Addiction Recovery: Our focus here is on the 4 5� of gamblers who develop addiction problems with the activity. Our local counseling agencies are going to need additional resources in meeting the human needs that result from problem gambling, ' Exhibit A . , 419 2 We do not know specifically what the costs will be. We contacted one of Cape Girardeau's counseling centers to educate ourselves on the costs involved. The cost to the agency in hiring a licensed professional counselor is approximately $50,000 per year for salary, benefits, office space, and other costs of employment. A counselor will spend 1196 hours in direct service to groups or individuals. This will work out to an average of 115 intakes per year, with each person undergoing addiction recovery requiring of 48 hours of combined counseling and group time, not including follow up treatment through groups like �` Gamblers Anonymous. We feel that it is important for you to address this issue specifically, responding either with a percentage of profits figure or with a written commitment to working through the City . of Cape Girardeau or the United Way with a plan to dispense_ special grants designated specifically �for addiction recuuery-- according to needs verified by independent counseling agencies. Sunday hours: In keeping with the spirit of our local -mall and of most other local retail establishments, we recommend that Sunday excursions not begin before noon. Our purpose in raising these issues is out of a sincere concern for the people in our community. We are willing to sit down with you and your representatives not only now but in the future to maintain an open dialogue regarding areas of mutual concern and interest. Could we arrange some form of contact on a regular basis (every six months?) with whichever one of you continues your involvement with our city? ' Sincerely, Ministerial Alliance representatives Rim Ferguson, President ' Pastor, Cornerstone Assembly Bill Burke, Secretary/Treasurer Pastor First Church of the Nazarene Roy Jones , Vice President Director of Missions, Baptist Association James G. Caughlan, Past President Pastor, Evangelical United Church of Christ Andrew Pratt, Board of Directors Director Baptist Student Center - Exhibit A 420 3 Dr. Neil Stein Pastor, Centenary United Methodist Church Captain Elmer Trapp Salvation Army Wes Wr ight Pastor, Mount Auburn Christian Church cc: the Aonorable Gene Rhodes, Mayor David Limbaugh Mary Wulfers Melvin Gateley - Melvin Rasten - _ . -- _ A1 Spradling III - Doug Richards � Mr . J. Ronald Fisher, City Manager - � �