Board Of Aldermen - Minutes - 10/13/2020 - P28
Board of Aldermen 10-13-2020 Page 28
underneath the apartment building, 50 spaces at a cost of $2.5 million dollars. So the deal that the
developer originally proposed where he would pay us a net of $800,000.00 is now turned into a deal where
we are going to pay $2.5 million to build this garage plus $100,000.00 in infrastructure improvements in
exchange for getting $900,000.00. So the net that | see is selling this building to this developer is going to
cost us, instead of getting money, we are going it’s going to cost us $1.75 million dollars.
Now the argument that is made is that the tax revenue generated by this new apartment building is going to
pay for all of this. The revenue that is estimated and by the Fiscal Note says that the revenue that we are
going to get is going to be between $1.4 to $1.5 million over five years. So that’s $280,000.00 to
$300,000.00 a year in tax revenue from this new building. The $8 million dollar bond that we are being
asked to authorize, the Fiscal Note says is going to cost us $426,569.00 a year. So the revenue from the
new building is not going to pay for this bond, it’s going to be short. Plus, the Performing Arts Center, don’t
forget, the original $15.5 million dollar bond, the Fiscal Note says that’s gong to cost us $1,075,000.00 a
year so the original $15.5 million plus this $8 million dollar bond we are being asked to authorize tonight,
you know the total combined is going to be $1.5 million dollars a year in cost, it’s going to cost us $1.5
million dollars a year to service this debt.
So this doesn’t sound like a good deal to me. This doesn’t sound that we ought to be going ahead with
this. So for those reasons | am going to be voting against this.
President Wilshire
Anyone else? Alderman Clemons?
Alderman Clemons
Thank you, Madam President. | appreciate the opportunity to speak tonight. So obviously things change,
projects change, timelines change, it’s the world we live in. | was supposed to go to Las Vegas for the first
time this April and it didn’t happen because of COVID-19. So you know, stuff comes up and then you’ve
got to deal with it. So we have the project for the Performing Arts Center which was approved by the voters
back in 2017. So that was 3 years ago and the project came across a couple of different changes that had
to be made that were unforeseen at the time because nothing is perfect. And you have to approach things
that sometimes things are going to change.
The key here is that the spirit of the project is still well intact. We have raised the $4 million dollars for the
Performing Arts Center and we have also fulfilled the cost gap that the $5 million dollars here and paying
for that without affecting taxpayers negatively. So yes | believe that this project is very, that this School
Street Project is very tied to the Performing Arts Center. The School Street Project itself has gone through
iterations, back from when it was originally proposed to be developed. | was on a steering committee back
in, | want to say it was 2016 and that was with the former Alderman from Ward 9, his name escapes me.
And Alderman McCarthy and we were talking in that meeting in what was an RFP that was going out for
what would be the uses of that particular lot. And the things that were discussed at that time were the
potential of a hotel being there. And of course retail was also discussed as well as building an apartment
unit.
My preference obviously back then and up until recently was to build a hotel. | also didn’t like the project
because it took away the parking. And | thought that was a need that wasn’t addressed properly the way
that it was originally designed. So you know, as all plans come out, the public hears it, the public gets word
of it, especially the abutter and they shared my concerns as well. All of them. And in that process the City
came up with a compromise and the compromise was, well we will pay for the parking that we are going to
keep and you can utilize that and yes it will reduce some of the spaces but you'll get to keep the majority of
them and will still get to build the project. Nothing in life is perfect. But! can tell you this, having been a
part of this project since its conception in 2016, really 2015 before that, this is a project that has gone
through iterations like any other project. And the good news on this one is that we have a developer that’s
willing to work with us, that’s willing to listen to the needs of the abutters and the businesses that are there.
