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HomeMy WebLinkAbout1994-12-27 Special MINUTES OF SPECIAL MEETING OF BOARD OF ALDERMEN OF CITY OF RIVERSIDE, MISSOURI DECEMBER 27, 1994 A special meeting of the Board of Aldermen of the City of Riverside, Missouri was held in the City Hall in Riverside, Missouri at 7:30 p.m. on December 27, 1994. Those present were Aldermen Wedua, Teters, Aust, Marshall, Rule and Owen. Said meeting was called to order by Mayor Betty Burch. It was decided to dispense with the reading of the minutes of December 6, 1994, December 19, 1994 and December 20, 1994, for the present time. This special meeting is called for the purpose of reviewing and discussing information from Boomtown representatives. Also, to pass an ordinance to go out for money bids for the city. Mr. Bob List, Sr. Vice President with Boomtown located at P.O. Box 399 Verdie, Nv. 89439 presented information regarding their letter sent to the City of Riverside on December 22, 1994. Mr. List presented his request to the City for a resolution to be included in their gaming application to be forwarded to the Missouri Gaming Commission. Mr. List believed for them to be in the competition they must file by the end of December. Mr. List explained the development issues which he stated Boomtown would commit 57.0 Million to the construction of the Quindaro Levee Bend and 53,000,000.00 toward the construction to do the Interchange on I 635 and they would commit to bring in the streets and utilities to the area that will enable the rest of the property that will be enclosed within the levee to be developed. The agreement has been sent to Mr. Preston Williams, the city's attorney in this matter. The second subject mentioned was the City's concern on revenue sharing. In the agreement, if Argosy failed, Boomtown would provide a guarantee of their tax revenues which would come out of the money that would otherwise go for revenue sharing and taxes. It was suggested in the agreement a 20$ share ("Boomtown Revenues") for the City. A supplemental resolution was presented as such: In the Revenue Sharing Agreement, the City would receive a base amount of 51.0 Million or guarantee off the top out of the money that comes back to the local government of approximately 51.0 Million or 20~ whichever is higher. The resolution states Boomtown's intention to file the gaming application and seeks the formal endorsement of the City's Board of Aldermen to have it within the City of Riverside. Also, Boomtown seeks to negotiate with the board and the City the development and revenue sharing agreement. Y Pg. 2 min. 12/27/94 The development agreement would secure Boomtown's obligation funding up to approximately 514.0 million in public infrastructure projects including the Interchange, improvement of the Quindaro Bend Levee and the construction of the sewer, water and roads. Under the revenue sharing agreement it provides the city would receive at least a 51.0 million in gaming revenue annually from the local share out of the gaming revenues generated by the project and provides the City would be held harmless in the event we were to lose the entire benefit of the gaming revenues from other boats within the City. It provides the resolution represents the preliminary endorsement by the City of Boomtown, pending a formal endorsement which the City would be given later at such time of final negotiation and authorization from the City on the development agreement and the revenue sharing agreement based on the general terms set forth in the resolution. The resolution states Boomtown's application for a license is evidence by the preliminary endorsement and subject to the final negotiation and authorization of both the development agreement and the revenue sharing agreement. Then, the board authorizes the final negotiation of that development agreement and revenue sharing agreement based on the preliminary terms. Also, Boomtown agrees to underwrite the City's cost for the lawyers and experts involved in helping put this together. Mr. David Syre, Chairman and President of Trillium Corporation stated at this time, there is not any alternative to development plans except to the economic generator that Trillium provides in the Boomtown development. The development can take place in two general ways: One is with a 500 year levee with the assistance of the Federal Government. If this does not take place, Trillium would have to work on a substantially less improvement, the 100 year levee. Trillium would support the financial obligation over and above the Boomtown contribution in either case. Trillium is also prepared to report any shortfalls in the budget of other infrastructure, sewer, roads interchange that is not supported in the agreement between Boomtown and Trillium. Trillium is finalizing an agreement with John Brown and Dan Peak for some of the non-gaming economic development activity and emphasizing the interchange area retail trade and industrial development in other areas as previously outlined with the City. p Pg. 3 min. 12/27/94 Bob List spoke again highlighting offers and benefits to the City. Mayor Burch spoke regarding receiving resolution and phone calls she received on this subyect. She asked BOA if they had a chance to review resolution. She explains the first page is the assumption of the total amount of revenue expected. Mr. List explains, the original proposal assumed a million and one-half visitors and assumed S50 per customer," either which could be variable and on this basis the city would be receiving and other the provision the full county shared including Kansas City to receive 5735,000. If Kansas City had its own boat, Riverside would receive 5840,000. This would be increased with new proposal to make a minimum of 51.0 million and 53.0 million is estimated to being divided among all of the governments which the City would get a minimum of 51.0 million. Mayor Burch explained to the audience the revenue sharing would only go to Cities that had voted in riverboat gambling, i.e., the two cities are Kansas City and Parkville and one county, Platte County. If any other city in the Platte County area would be able to participate, the first thing they would have to do is put a referendum on the ballot and vote it in their City, like Houston Lake or Lake Waukomis. Mayor asked question to Mr. Syre, regarding the 100 year or 500 year levee, "Is that levee just for the 1,000 acres in the western portion of Trillium's property and it won't be built on Riverside's side? Mr. Syre answered, "yes." Mayor Burch opened discussion up to the board. Alderman Rule asked question to Mr. List. "On Trillium's land based facilities, it's going to be filled and the land based facility will be built? Mr. List answered "yes". Are you bringing in a boat and it will be like in a lagoon, then you're going to fill to the 100 year flood level and build the land-base and fill it in? Mr. List answered, "yes". Mr. List explains, under FEMA it's necessary to raise any permanent structure up to the 100 year flood plain elevation. Alderman Rule asked, you're not putting it on barges like next to anything they're going to build up as land- based buildings ? Mr. List "no." i Pg. 4 mins. 12/27/94 Alderman Rule asked about 50,000 sq. ft. land-based facility and buildings? Mr. List answered, "correct." Mr. List said he passed out a handout at the last meeting and stated that their exact plan would be very similar like their gaming facilities in Louisiana Reno and Biloxi. Alderman Rule asked, "You're going to have 20,000 sq. ft. entertainment center, parking lot and the rest for administrative offices? Mr. List answers, "Yes" and a cabaret. Alderman Rule asked, "It will be close to the site Argosy has now?" Mr. List answers," the boat will have 30,000 sq. ft of gaming plus some additional public space." The land-based facility will be a minimum of 50,000 sq. ft. so the total amount will be in excess of 80,000 sq. ft. Alderman Rule says the only problem he has with the deal is the revenue sharing. He states we're getting the minimum the state allows now. If we get 20% of the 2% adjusted growth, which we get from Argosy, (Mo. Gaming is 2% of the adjusted growth plus 51.00 per head). Alderman Rule says he read in the resolution the city will get 4% of the 2%, right? Mr. List states we tried to get away from the percent by a 51.0 million minimum floor. Riverside would get 20% plus a per capita share or a 51.0 million whichever is greater. We estimate it would be greater than million, by most of our estimates we put that in, too. Alderman Rule asked David Syre, "Do you plan on the interchange to be commercial, retail and how much of that is going to be commercial, retail and then you said industrial?" Mr. Syre answered, "They don't know that until they know what dike is going in and after that a more precise land plan, but I would say 50 to 100 acres." Alderman Rule said the I 635 Interchange, streets and utilities are customary things that developers put in to build a piece of property, so even though our assets to the community could be a tremendous boom, the property owners are the ones that's going to benefit. Alderman Marshall commented about the 20% or 30% whatever, comes in. Based on our latest figures as we have received revenue from Argosy of 5190,000 for the month, taking 20% of that 5190,000 this figures about 538,000 a month. He states taking 5190,000 x 12 months-52,280,000 if holding steady right now which the 51.0 million falls a bit short of that 52,280,000. What Alderman Marshall is saying he hasn't seen any plans or drawings, only writing. Mr. Syre said they made a presentation of this plan late last summer. Mr. Syre said what Trillium's commitment was to the extent that 57.0 million does not cover the protect cost under the two different scenarios that Trillium will commit to the difference and that will all have to be done through the levee board and they will administer the project. We will enter into whatever agreements are necessary in order to formalize that commitment. P pg . 5 min.s 12/27/94 Alderman Marshall explained the Levee district hasn't been to successful so far in any support we need from the Federal government. Mr. List explains they'll have a major benchmark commitment from a major developer within that levee district backed up secondly by Trillium's commitment as well. Alderman Marshall states for the benefit of the audience, trying to explain what it takes to get the levee in place which has been a 40 year project. Alderman Marshall says he's not trying to downgrade the offer, but wants to make sure everyone understands all that has transpired. With your project in place would obviously have a great effect on this. Alderman Marshall states he is not willing to share the revenue. We have the concerns of Riverside first, that's why we got 56.0 million up front with Argosy. We have a lot of needs right here in the community. Alderman Jim Wedua speaks on looking at this without having any revenue. He domments to the audience, Would we like to have a levee and a Interchange?" We've been on this levee for 40 or 50 years and here we're going to be sharing 51.0 million a year. I can't see the ones against this reasoning even if it comes up to 2~. I'm looking at Riverside and I'm a resldent here and I think it is great. I'm in favor it. To tell the truth I don't think they' 11 get a license, but they're willing to go down there and spend a 5100,000. to try and get one. One thousand acres or 1,200, whatever it is there, I think it's a fantastic deal for the City and recommend the council look at part of it. Mayor Burch stated a couple of board members requested some people from the audience be heard. Sharon Owen asked a question, "On the 20~ the city would get, is fire protection and police protection included?" Mr. List answered, "Yes." We figured the 51.0 million does not include the sales tax you would get from their project which would be very substantial also. Those numbers are approximately 5150,000 to 5200,000. Steve Norton, President, Argosy Gaming 700 Roszier Street, Alton, I1. He addressed the impact Argosy would be feeling from another boat in Riverside in comparison to other casinos in other states. He expressed his concern with even 3 operators in the Kansas City marketplace, that it might be to many. Y pg, 6 min's. 12/27/94 Joe Uram, 219 Piasa, Alton, I1., with Argosy, 219 Piasa, Alton, I1. said he's not certain Trillium's offer to the City is in our best interests with less statutory revenue for the City. He thinks the entire City does not benefit from the proposal. He spoke of all promises and contracts followed through with and still going on by Argosy. Marvin Layton, 4920 High Dr., Riverside, Mo. expressed his concern as to what could be gained by the 53.0 million. His viewpoint is Boomtown should have to come up with the same amount of money for Riverside as Argosy did. James Scott, 6922 Avalon, Kansas City, Mo. spoke on his concern as what the count is to receive if this proposal should be approved. Robert List explained off the top, Riverside gets 20% before any distribution of the revenues and the other 80% gets dlstributed according to population in the rest of the county; unincorporated and the other cities that have adopted the referendum, Parkville and Kansas City. The percentage of the 80% (40% goes to Kansas City). The incorporated area would receive approximately 51.0 million. Explaining part of their reason for revenue sharing is their commitment to Platte County. Bob Geiseke, 5400 Northwood Rd., Kansas City, Mo. spoke on the levee and the flooding. His opinion on Trillium, and Boomtown coming into Riverside is he's in favor and asked the board to consider the proposal. He said he had been to Washington twice to try to get funding for the levee and believes the development will create jobs. Liz Ryan, 2417 Erie, North Kansas City, Mo. (property owner in Riverside) spoke on the flooding in this area by and thinks it's an opportunity for Riverside to do something for the property owners in terms of repairing the levee. Lathe Backstrom, 3316 W. 68th St ., Shawnee Mission, Ks. (a Real Estate Broker involved in the sale of Trillium property near the area in discussion here) spoke on this being an opportunity for Riverside and thinks it's an excellent location for the development. Steve Wolcott, (Argosy's attorney) located at 2 So. Main, Liberty, Mo. spoke on some of the terms of the resolution and agreement. He asked what about the short term revenue reduction and how does Riverside become protected and not Y Pg . 7 mins. 12/27/94 lose, both short term and long term? He asked does the agreement provide for cash up front? He said there have been an indication that there had been a willingness to escrow the money that will be their legal obligation anyway, primarily, the levee dlstrict. He believes the offer to fund the levee, the additional road, and the infrastructure is obligatory to Riverside in the ordinance and benefits Boomtown and Trillium, too. He asked the board to consider the resolution as it cannot approve a contract. Dick Grogan, 5017 N.W. High, Riverside, Mo. expressed his thanks to Argosy as to doing what they said with all improvements to the City. He mentioned John Brown's part in the flood. He also wondered if Riverside could get into a lawsuit situation where the citizens could start a lawsuit if they didn't think the City Council would be making the right decision. Harry Edwards, 4408 Baltimore Ct., Kansas City, Mo. expressed his opinion on the proposal which he stated he's for as it's a good chance to get the levee built. Pete Fullerton, Platte County Economic Development Council, 7505 Tiffany Springs Pkwy, Kansas City, Mo. He mentioned John Brown and his development of the Industrial Building and mentioned the City's franchise tax on utilities and talked about the significant number of those dollars that are coming of out the million square feet of industrial space. He thinks there has not been any kind of good infrastructure set up industrial space because of the levee. He mentioned Platte County being a laggard when it comes to the metropolitan area in regards to tourism and those kind of expenditures in Platte County. The point he's trying to make is it's well within Platte County's prerogative to demand to the Gaming Commission to have at least two facilities to be able to compete with what will be the critical mass of facilities some place. He feels if this does not happen here it will be at 210 and I 435 with Boyd, Hyatt, the Randolph group etc. He feels the economic impact on this is very important to look at and believes this is a good deal. Phil Snowden, 4642 No. Holly Ct., Kansas City, Mo. expressed his opinion on the proposal. He thinks this 1500 acres is a great opportunity for development and a chance to build a levee. He believes the revenue is sharing is okay. Y Pg . 8 mans. 12/27/94 Bob List expresses they believe their application will go no place without it. They-feel honor bound to the commitment they made to the county. Louann Layton, 4920 N.W. High, Riverside, Mo. gave her opinion on revenue sharing and did not want the city to give their money away. Mayor Burch closed the comments. Mayor Burch asked for Aldermen's comments. John Marshall mentioned John Brown's part on his commitment and can't understand why Trillium and the rest of the landowners at the site being discussed didn't get behind Bob Geiseke and go to Washington and tell them here's what we want to do and build, but we need this money and why it has taken this long for everyone to do this. Mayor Burch gave her comment as to she fully encourages the development and to stay in touch with the City of Riverside. She spoke of Mr. Preston Williams (Attorney for Riverside) to help with this project. Mr. Williams comment on the sharing of the revenue is it is entirely a board of aldermen decision and if they do want to go forward they need to have all the development plans in place before we agree to any resolution. Mayor Burch said she was not prepared to offer the resolution to the Board of Aldermen in view of the comments made. Alderman Wedua made a motion endorsing Boomtown Missouri, Inc. ("Boomtown") Application for license to operate a Riverboat Gaming facility in the City of Riverside subject to the final negotiation and authorization of agreements between the City of Riverside and Platte County and certain eligible governmental entities to share gaming tax and boarding fee revenues collected from Boomtown (The "Revenue Sharing Agreement") as well as a development agreement between the City of Riverside and Boomtown regarding certain public improvements (The "Development Agreement")., seconded by Alderman Owen. The vote was Alderman Owen and Wedua, yes; Alderman Marshall, Teters and Aust, no and Alderman Rule abstained. A recess was called. Meeting reconvened. Those present were Aldermen Wedua, Teters, Aust, Marshall, Rule and Owen. Mayor Burch presided over the remainder of the meeting. i Pg . 9 mins. 12/27/94 Mayor Burch mentioned proposed increase from Missouri American Water Co. for Commercial, Industrial and multi- family and all of the cities that have been involved in the rate increase. Alderman Rule moved to place Bill No. 94-79 on its first reading, seconded by Alderman Marshall, said bill provides for employment of Jeremiah Finnegan to represent the City of Riverside to protect the water rate increase. The roll was called and vote was Alderman Owen, Aye, Alderman Rule, Aye; Alderman Marshall, Aye; Alderman Aust, Aye; Alderman Teters, Aye; and Alderman Wedua, Aye. Alderman Rule moved to place Bill No. 94-79 on second reading, seconded by Alderman Marshall. The vote was Alderman Owen, Aye; Alderman Rule, Aye; Alderman Marshall, Aye; Alderman Aust, Aye; Alderman Teters, Aye; and Alderman Wedua, Aye. Upon the bill having been made for public inspection prior to consideration of the Board of Alderman, Bill No. 94-79 was passed. Alderman Marshall moved to place Bill No. 94-80 on its first reading, seconded by Alderman Rule, bill provides for obtaining bids on 5800,000 authorizing the creation of an additional city depositor for the highest and best bids, The vote was Alderman Owen, Aye; Alderman Rule, Aye; Alderman Marshall, Aye; Alderman Aust, Aye; Alderman Teters, Aye; and Alderman Wedua, Aye. Alderman Marshall moved to place Bill No. 94-80 on the second reading, seconded by Alderman Rule. The vote was Alderman Owen, Aye; Alderman Rule, Aye; Alderman Marshall, Aye; Alderman Aust, Aye; Alderman Teters, Aye; and Alderman Wedua, Aye. Upon the bill having been made for public inspection prior to consideration of the Board of Aldermen Bill No. 94-80 was passed. There being no further business to come before the Board, upon motion duly made, seconded and passed, meeting ad urned at 10:00 p.m. ActinRf Secretar i