THE CITY OF KENT, OHIO COMMUNITY DEVELOPMENT COMMITTEE WED., SEPT. 2, 2015

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1 THE CITY OF KENT, OHIO COMMUNITY DEVELOPMENT COMMITTEE WED., SEPT. 2, 2015 This meeting of the Community Development Committee of Kent City Council was called to order at 7:00 p.m. on Wed., September 2, 2015 by John Kuhar, Chair. PRESENT: ALSO PRESENT: MR. AMRHEIN, MR. DeLEONE, MR. FERRARA, MR. KUHAR, MS. LONG, MS. SHAFFER, MR. SIDOTI, MS. WALLACH, AND MR. WILSON J. FIALA, MAYOR & PRESIDENT OF COUNCIL; D. RULLER, CITY MANAGER; J. SILVER, LAW DIRECTOR; L. JORDAN, CLERK OF COUNCIL; T. WILKE, DIR. OF ECON. DEV., B. SUSEL, DIR. OF COMM. DEV.; AND D. MORGANTI, GRANTS COORDINATOR Chair Kuhar said the first item on their agenda dealt with an update on the sale and development of the former courthouse. DAVE RULLER, CITY MANAGER, explained they had solicited bids in January, and received some in March. He said they brought both groups to Council. Mr. Ruller said that both developers had a small project dealing with the old courthouse only, but also discussed bigger options. He said Council appeared interested in the bigger project and asked for details. He said the concept was a grocery store with apartments above that would complement the restoration of the old courthouse. Mr. Ruller said that everyone seemed interested enough, and if the project was genuinely real, they could start having some conversation. Mr. Ruller said that in the last two months, since May, the Fairmount Group who brought in the grocery chain, Lucky=s, is still trying to close a financial gap. He explained that they had no positive update at this time. Mr. Ruller said they were leaning on New Market Tax Credits, but did not make the first initial cut. He said they are vying for other tax credits, but he was unsure they will get them. He said that Fairmount continues to look at other places. Mr. Ruller reminded them that Dr. Warren joined them that night about the need for a grocery store. He said it was great to see their partner with them at that time. Mr. Ruller explained that the gap is unfunded, fully, at this time, and there has been no progress. Mr. Ruller said that Guy Totino did not have a grocery tenant in mind, and threw some things out that night. He said Mr. Totino was thinking more about residential units, but with the amount of interest generated about a grocery store, he has been looking at it. Mr. Ruller said a big box store would not work, in terms of square footage and the issue of parking, which is why they were interested in Lucky=s. He said it was medium size, approximately 20,000 to 25,000 square feet. He acknowledged it would still be a little tight on parking. Mr. Ruller said that Fairmount=s funding gap appears to be driven by the need for extra land for a bigger store. He said everything has worked against that project financially, adding it is not an easy fit either logistically or financially. Mr. Ruller said Mr. Totino was thinking about 8,000 to 10,000 square feet, and that concept has grown a little more. He said the discussions have had a focus on local foods and organic foods, which would fit well in the downtown. Mr. Ruller said that while Mr. Totino had some progress, he has nothing inked. He said Mr. Totino has been communicating with them, and this concept could require him to spend more money for predevelopment work. He said Mr. Totino would spend that money if he was selected, but did not want to spend too much until Council made a decision. Mr. Ruller said they scheduled this meeting, but had hoped for more information like the New Market Tax Credits. He said things look good with Mr. Totino=s alternative, adding that a few of the smaller grocery chains require less parking. Mr. Ruller said it would be a better fit. He said everything in Mr. Totino=s Page 1 of 5

2 pro forma indicates they would not have a gap, and their gaps are financeable through other options like the Summit County Port Authority. He said in order to nail that piece down, more work has to be done by Mr. Totino, who would be happy to do that if selected. Mr. Ruller said this meeting was for the public=s benefit, and suggested an executive session at the end of the night if they were ready to pick a developer for the next step. Mr. Ruller noted that TOM WILKE, DIRECTOR OF ECONOMIC DEVELOPMENT and BRIDGET SUSEL, DIRECTOR OF COMMUNITY DEVELOPMENT, were present. Mr. Wilson asked if there is any reason they have to make a decision at this time, and suggested they could readvertise it. Mr. Wilson said they may find someone new. He asked why they have to sell it immediately, and Mr. Ruller said they are carrying and paying the debt on the building. Mr. Wilson said that is not a reason to make a decision at this meeting. Mr. Ruller said he had a conversation earlier in the day with someone who had an idea for the courthouse building. He said the question is how much they are willing to pursue for the grocery side. Mr. Ruller said they are under no obligation, and can go back out with another updated RFP. Mr. Wilson said when they did land banking, the big value was holding out to get what they wanted. He said he did not see a reason to change the strategy at this time. Mr. Ruller said Ms. Susel talked to him earlier. He said a few of the favorite spots on Franklin Avenue are concerned because that part of the block is looking blighted. He said the parking lot is bad, BW3 is gone and Mugs is out of business. He said they are getting pressure from the local businesses, adding there is an interest to do something. Mr. Wilson suggested they could submit their RFPs also. Ms. Shaffer asked about an RFP for a grocery store in the courthouse building, and asked if anyone had talked about the limitations. Ms. Susel said that several people have walked through, but it is not structurally conducive to things needed by a grocery store. She said the square footage is fairly limited also for a grocery store. Mr. Ferrara asked, in relation to the size of the two competing offers and the City=s requirements for parking, if the fact there will be a larger population living there would affect the parking. He asked what both developers would require in parking spaces at this time. Mr. Ruller said Fairmount needs more because Lucky=s is bigger and needs more parking. He said Lucky=s has a size formula that works. Mr. Ruller said that some of the other stores are reviewing it, and have a little more flexibility with less heavy parking. Mr. Wilke said that Fairmount has seventy-two parking spaces, while New Brook originally had none and have increased to sixty-one parking spaces. He said both are looking at additional properties to increase the parking. Mr. Ferrara asked if they would need to go to the Board of Zoning Appeals about parking, and Ms. Susel said there is no parking requirement in the downtown zoning district. She said developers have to provide a parking plan. She said they rely on the on-street parking, adding the Code does not require onsite parking. Mr. Ferrara asked if Fairmount has purchase agreements that would preclude New Brook from acquiring those properties, and Mr. Ruller said they keep asking to see them, but have not seen them in hand yet. He said it is unclear, adding that is one of the frustrations. Mr. Ruller said they have asked for a list of ten items from Fairmount, and have received none of them. Ms. Susel said they do have confirmation from two owners that have leases in place to not market their property, but there are no options. She said their financial advisor had asked for documentation, requested it again about one week earlier, but still has not received anything. Mr. DeLeone said they are talking about one hundred units, and asked where all the people would park with sixty-one spaces, and Ms. Susel said utilization at the parking garage overnight is 27.5%. She said Page 2 of 5

3 they have a commitment to fill the deck, adding they encourage overnight parking at the deck. Mr. DeLeone asked how many spots are in the deck, and Ms. Susel said there are 365. Mr. DeLeone said if the one hundred units had double occupancy that would be two hundred spots. Ms. Susel said they will be coming back about parking. She said they have looked at other communities, and when there is just a residential component, parking is not required. She said projects with commercial and residential components have a shared use. She said most base it on the square footage of the building, with onehalf parking space per bed. She said that typically those who live downtown walk to their destinations. Mr. DeLeone asked how many units Fairmount has projected, and Mr. Wilke said it was 260 beds. He said New Brook is down to 60 or 70 units, with 120 beds. Mayor Fiala said his concern is the parking, adding he felt the City has a flaw when they say parking is not required. He said that a lot of people are still looking for parking. Mayor Fiala asked how many spaces are in the parking lot behind the law firm, and Mr. Roberts said if they striped it, they would have about eighty long-term parking spaces. He said they would be ten feet wide, and it is not striped at this time. Mayor Fiala said if a development goes in, that lot would be gone. Mr. Wilke said the project with 72 parking spaces includes parking under the residential portion. He said New Brook is modifying their plan to include parking. Mayor Fiala said they talk about everyone going to the parking deck, adding people are not going to walk across town. He said it is a concern that there is not enough parking when it redeveloped. Mr. Wilke said they are reaching out to other property owners in adjacent blocks, and Mayor Fiala asked if that is happening. Mr. Wilke said they are reaching out. Mayor Fiala said that parking is a big concern, and Mr. Ruller said they have thought about that also. He suggested they may want to redevelop the courthouse, and not think about a grocery store. He said a lot of the businesses would love to see apartments, as they do not want competitor businesses, adding they want more bodies. Mr. Ruller said that recently they have met with some downtown businesses about pushing more business to them. He said that parking is a challenge. Mr. Ferrara asked the utilization rate of the parking deck, and Ms. Susel said it is 38% during the day, and 27.5% overnight. Mr. Ferrara said that means that spots still available at all times. He said it is perception versus reality. Mr. Kuhar commented as chair that he is not allowed to speak, but his colleagues asked a lot of his questions. There was no audience comment at this time, and no action was needed. Chair Kuhar said the last item on their agenda dealt with a grant application for a new arts and creativity festival in the fall of Mr. Ruller said they jointly worked on a public arts master plan, partnering with Kent State University, local businesses, local property owners, Main Street Kent and the Chamber. He said they have built great new buildings with a backbone in place, and asked how they can liven it with cultural opportunities. Mr. Ruller said that Kent has a reputation for lot of underground art, but not a lot they can see. He said the downtown was designed with that usage in mind. Mr. Ruller said their new banners are unconventional signs filling in the gaps between the bricks and mortar with the cultural items. Mr. Ruller said none of them are art experts. Mr. Ruller said they are not well organized, adding everyone did their own thing. He said they are trying to get everyone work together, adding the more that is done will mean more visible art is in place. Mr. Ruller said he has spoken with the Dean of the University for Arts and Sciences, and asked for their help. He said the Dean took it under his wing and got excited, as did President Warren. Mr. Ruller said that initial excitement led to a group meeting for the last six to nine Page 3 of 5

4 months. He said they are looking to further the links culturally between the campus and the downtown. He said the group has ideas in mind to showcase and engage people in the arts. He said that led to a great idea needing funding. Mr. Ruller said the staff has worked to identify funding sources, adding that Dan Morganti, Grants Coordinator, is present to ask for their authorization. Mr. Morganti said Mr. Ruller covered a lot of his presentation. He said they are asking for authorization to apply for funds through the AOur Town@ program. He said they have been meeting for the last nine months with a core group. Mr. Morganti said their targets are residents, students, and those people from out of town. He said they wish to apply for funds for the first AKent Creativity Festival@. Mr. DeLeone asked if there are matching funds required, and Mr. Morganti said it is a 1:1 ratio match. He said they also accept in kind matches. Mr. Morganti said the application is due September 21, and they are still sorting it out. He said they are asking authorization to submit their application, adding they can discuss it further if funded in April Ms. Wallach asked if they would be competing with Art in the Park, and Mr. Morganti said it would be a few weeks later. He said they initially thought about having them partner with the group, but decided they were different events. Mr. Morganti said the event would be a few weeks after Art in the Park, but it is not finalized. Ms. Shaffer said that was her question, and asked about the Oktoberfest. Mr. Morganti said that Main Street Kent is involved, so they are clear with that event. He said it would be in conjunction with Main Street=s International Festival. Ms. Shaffer said that would be a nice idea, as that festival needs a boost. Mr. Wilson asked if they were requesting $50,000, and Mr. Morganti said they were requesting an amount not to exceed $50,000. He said they think the request would be between $25,000 and $50,000. Mr. Wilson said if they get the full amount, they would need a match from the City, and Mr. Morganti said it can be a cash match and in kind match, like the time spent by people. He said they are probably looking for about $25,000. Ms. Susel said the City is not on the hook for the entire amount, as other parties are involved. Mr. SIdoti asked if it would be local artists showing their art, and Mr. Morganti said it would be participatory in nature. He said it would be more than a vendor-based festival. He said the hope is to bring in a nationally prominent artist, as well as local artists. Mr. Sidoti asked if the focus was on visual arts, and Mr. Morganti said it would include performing arts as well. Mr. Sidoti asked if it would be spread around the esplanade, and Mr. Morganti said that was correct. Mayor Fiala said that people want something every weekend. He asked who comprises this committee, and Mr. Morganti said they are partnering with the University=s College of Arts, adding they have a lot of participation. He said local artists are interested, as well as business owners and Main Street Kent. Mr. Morganti said they can spread it around. Mayor FIala said the usual handful of people are getting tired. Mr. Ferrara said they need a coordinated effort to tie in the events so they are all marketed by one group who oversees it. He said they are all great, adding together they would have a more powerful impact. Mr. Morganti said that a lot of the involved players are on the planning committee. He said they have met monthly, and have created subcommittees for marketing, branding, and budgeting. Ms. Long asked if it would be a show or would allow artists to sell their wares, and Mr. Morganti said he did not foresee it as a vendor-driven festival. He said the idea is to have it be participatory. Mr. Morganti said the artists will share their knowledge, allowing residents and students to learn how to make art. He said one example is a musical instrument petting zoo, where anyone can learn how to play an instrument. There were no comments from the audience at this time. Page 4 of 5

5 MOTION TO AUTHORIZE THE GRANT APPLICATION FOR THE NEW ARTS AND CREATIVITY FESTIVAL IN THE FALL OF Motion made by Mr. Ferrara, seconded by Ms. Shaffer, and carried by a voice vote of 8-0-1, with Chair Kuhar abstaining. Hearing no further business before this Committee, Chair Kuhar adjourned this meeting at 7:35 p.m. Linda M. Jordan, Clerk of Council ACTION RECOMMENDED: 1) UPDATE ON SALE/DEVELOPMENT OF FORMER COURT HOUSE; NO ACTION TAKEN 2) TO AUTHORIZE A GRANT APPLICATION FOR NEW ARTS AND CREATIVITY FESTIVAL IN THE FALL OF Page 5 of 5