Special Council - August 3rd 2015

MINUTES OF THE SPECIAL MEETING OF COUNCIL
Mayfield Village Civic Hall
Monday, August 3, 2015 – Immediately Following Caucus

The Council of Mayfield Village met in Special Session on Monday, August 3, 2015 at Mayfield Village Civic Hall. Council President Marrie called the meeting to order at 8:28 p.m.

ROLL CALL:

Present: Mr. Jerome, Mr. Marquardt, Mr. Marrie, Mrs. Mills, Dr. Parker and Mr. Saponaro

Also Present: Mayor Rinker, Mr. Wynne, Mr. Diemert, Mr. Cappello, Chief Carcioppolo, Mr. Marrelli, Mr. Metzung, Mr. Thomas, Mr. DiNardo, Mr. Esborn, Ms. Wolgamuth, and Mrs. Betsa

Absent:  Chief Edelman

The Pledge of Allegiance to the Flag was given.

OPEN PORTION:

3 minute limit imposed by Chair. Those who wish to speak must first state their name and address.

There were no comments.

  • Second Reading of Ordinance No. 2015-20, entitled, “An Emergency Ordinance authorizing and directing the Mayor and President of Council to enter into an economic development grant and incentive agreement between the Mayfield Community Improvement Corporation, Mayfield Village, Ohio, and Quality Electrodynamics.” Introduced by Mayor Rinker and Council as a Whole. (First Reading – July 20, 2015).

Mr. Jerome, seconded by Dr. Parker, made a motion to suspend the rules of Council requiring an Ordinance to be read on three separate occasions.

ROLL CALL:

AYES: All  
NAYS: None

Motion Carried. Rules Suspended.

Mrs. Mills, seconded by Mr. Saponaro, made a motion to enact Ordinance No. 2015-20.

Mr. Diemert stated, we need to amend the Ordinance by substituting Exhibit A sent out from the Law Department on Friday, July 31st. That is the more current version. The attachment of Exhibit A is substantively the same as the Ordinance has been since it was first introduced. From the input of others and negotiations with the other side, minor things and contractual issue and conflicts in language that were pointed out were corrected and put into a more proper form for future reference by all legal entities. If we could substitute the Exhibit A by motion to amend.

  • Motion to amend Ordinance No. 2015-20 to substitute Exhibit A.

Dr. Parker, seconded by Mr. Jerome, made a motion to amend Ordinance No. 2015-20 to substitute Exhibit A.

Mr. Diemert stated, if you want to have a roll call on the motion to amend, you can. It is not required. There were no objections. You can show by acclamation that the amendment was approved. There’s already a motion to adopt on the floor and a second.

Roll call taken for enactment of Ordinance No. 2015-20.

ROLL CALL:

AYES: Mr. Jerome, Mr. Marrie, Mrs. Mills Dr. Parker, and Mr. Saponaro
NAYS: Mr. Marquardt

Motion Carried. Ordinance Enacted as Amended.

  • Second Reading of Ordinance No. 2015-21, entitled, “An Emergency Ordinance authorizing and directing the Mayor and President of Council to enter into an economic development grant and incentive agreement between the Mayfield Community Improvement Corporation, Mayfield Village, Ohio, and The Freedonia Group, Inc.” Introduced by Mayor Rinker and Council as a Whole. (First Reading – July 20, 2015).

Mrs. Mills, seconded by Mr. Saponaro, made a motion to suspend the rules of Council requiring an Ordinance to be read on three separate occasions.

ROLL CALL:

AYES: All   
NAYS: None  

Motion Carried. Rules Suspended.

  • Motion to amend Ordinance No. 2015-21 to substitute Exhibit A.

Mr. Saponaro, seconded by Dr. Parker made a motion to amend Ordinance No. 2015-21 to substitute Exhibit A.

Mrs. Mills, seconded by Mr. Saponaro, made a motion to enact Ordinance No. 2015-21.

Council President Marrie asked, any discussion? There was none.

ROLL CALL:

AYES: All   
NAYS: None  

Motion Carried. Ordinance Enacted.

  • Motion to amend the agenda to include additional items: 2015 Road Program, Softball Pavilion and Restroom Project and Drainage and Infrastructure Project.

Dr. Parker, seconded by Mr. Jerome, made a motion to amend the agenda to include additional items: 2015 Road Program, Softball Pavilion and Restroom Project and Drainage and Infrastructure Project.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Agenda Amended.

Mr. Metzung asked, Councilman Marrie, since I only have a couple small items, I would like to also add them.

  • Motion to authorize acceptance of the bid from Frabrizzi in the amount of $2,190,565.50 for the 2015 Roadway and Water Project.

Dr. Parker, seconded by Mr. Saponaro, made a motion to authorize acceptance of the bid from Frabrizzi in the amount of $2,190,565.50 for the 2015 Roadway and Water Project.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Bid Accepted. Expenditure Authorized.

  • Motion to authorize acceptance of the bid from The Cornice Co., Inc. in the amount of $396,786.00 for the Softball Field Restroom Facility and Pavilion Area Project.

Mr. Saponaro, seconded by Mr. Jerome, made a motion to authorize acceptance of the bid from The Cornice Co., Inc. in the amount of $396,786.00 for the Softball Field Restroom Facility and Pavilion Area Project.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Bid Accepted. Expenditure Authorized.

  • Motion to authorize expenditure in the amount of $7,500 for Drainage and Infrastructure Project located at 6784 Wilson Mills Road.

Dr. Parker, seconded by Mr. Saponaro, made a motion to authorize expenditure in the amount of $7,500 for Drainage and Infrastructure Project located at 6784 Wilson Mills Road.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Expenditure Authorized.

  • Motion to amend agenda to include Kenwood Gardens Gateway Enhancement and Demolition and Removal of two out buildings at 470 SOM Center Road.

Dr. Parker, seconded by Mr. Jerome, made a motion to amend agenda to include Kenwood Gardens Gateway Enhancement and Demolition and Removal of two out buildings at 470 SOM Center Road.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Agenda Amended.

  • Motion to authorize expenditure in an amount not to exceed $9,925 to O’Brien Cut Stone Co., Inc. for Kenwood Gardens Gateway Enhancement Program.

Mrs. Mills, seconded by Dr. Parker, made a motion to authorize expenditure in an amount not to exceed $9,925 to O’Brien Cut Stone Co., Inc. for Kenwood Gardens Gateway Enhancement Program.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Expenditure Authorized.

  • Motion to authorize expenditure in the amount of $5,500 to North Union Construction for demolition and removal of two out buildings at 470 SOM Center Road.

Dr. Parker, seconded by Mr. Jerome, made a motion to authorize expenditure in the amount of $5,500 to North Union Construction for demolition and removal of two out buildings at 470 SOM Center Road.

Roll Call:        

AYES: All     
NAYS: None           

Motion Carried. Expenditure Authorized.

ANY OTHER MATTERS

Mayor Rinker stated, I think this is for everyone’s benefit. I appreciate the fact that Council voted its approval tonight for QED and Freedonia. This has been quite a while in the making, QED especially. I asked Ron and Ted to provide a little bit of background information going back over this because it’s probably been three years since we really have seriously been looking at what the prospects would be for QED to stay or move.

It was about a little more than two years ago that I got a call from Albert Ratner who has been advising Dr. Fujita from QED that QED in all likelihood was going to be advised to move out of town. In fact, they had been looking at a place on Eddy Road at the time. Mr. Ratner also informed me that Dr. Fujita really wanted to stay in Mayfield Village and was earnestly looking around here.

That’s kind of the background. We have tried to maintain pretty tight communication throughout that period. As you all know, the Euclid Industries site at 6660 which has been renumbered, had gone vacant and dark in about 2005. Euclid Industries was there until 1999 and then I think it was 2005 Arvin Meritor which was sort of a subsidiary stuck around for a while and then they closed shop and the place has been vacant. It’s about 200,000 square feet of space. For around 3 years Superior Beverage has used about 2/3rds of the space for distribution but the former owner was mothballing the site and not doing a whole lot to make any kind of improvements so roughly around the time that QED was looking was when Premier acquired the property and started to change things around.

QED came here at a time when we invested and were putting in our fiber on Beta and we had an agreement with Panzica’s landlord to put $50,000 toward infrastructure improvement to one of his properties on the east side of Beta and two companies came on board, one was Preemptive Solutions and the other was QED, both tech oriented businesses. QED at the time had three employees. QED moved once after that inside Panzica and then moved across the street to the old Velocity Sports facility at 700 Beta which again you recall was a site that had been repurposed by a development ground and ultimately Hilton Garden went in the back of that property. QED today has over 130 employees.

When we started looking at this a few months ago collectively with Council you recall that they really were very concerned about what kind of lease terms they would have, what kind of infrastructure improvement would have to be made to Premier, we had a lot of conversations with the folks at Premier to try to leverage the situation. I think primarily because we enjoy a very good line of communication with Dr. Fujita, we learned enough insight that this deal was going down to be able to work both sides of the deal if you will.

At the end of the day, we looked at the numbers. Ron projects that right now modestly at the current employee number that QED has and remember this is Biotech, these are all physicists, other scientists, engineers, I think the average salary is north of $70,000. It’s a very clean industry, if you can even call it an industry. We have seen QED go from 3 people to the number it has today. It’s about our sixth best revenue generator in Mayfield Village, recognized nationally and internationally with all kinds of awards to boot. Our attention was really focused on how to make this deal work in order to retain jobs and to improve infrastructure. A parallel discussion in P/Z for years has been how much of the improved properties in Beta have been tired. They are old. Most of those are vintage. Anywhere from 30-50 years old. When we looked at the SKF deal a few years ago at 600 Beta, that was a deal that required about $4 million to improve 90,000 square feet of space. That deal finally fell through. SKF ended up going over to Alpha Drive to a facility that Premier had acquired there. When we had looked at the Euclid Industries site a few years ago, I think we had ballparked anywhere from $4-5 million in improvements for what is essentially an old school office building up front and the rest is a large garage, distribution and trucking facility.

My understanding is that in this deal that QED is fronting about $1.4 million dollars both toward infrastructure and just to reduce its rent and of course as we know in commercial leases a lot of lines have an amortization for the T&I component, so this is one way QED wanted to lower its monthly payment for those factors. Premier has indicated that it in turn is putting in about another $1 million in improvements. The jobs are retained. We know that 700 has prospects after QED leaves because it’s improved space. So the double story is, it’s not only about the jobs and the income tax, it’s about the infrastructure, the physical plan of these properties and one of the ways that we can appropriately invest dollars in them to make them sustainable and very lucrative for all players involved. Ultimately it’s lucrative for us because in just 5 years alone, we project a net even with this incentive grant of over $1 million in revenue on top of that. We have saved jobs. We have improved properties and we have increased our bottom line in terms of revenues. Contrast that with the fact that it’s been since 2006 since the last time we went out for debt. That was for the police station. It was about a $4 million bond. Everything since then has been cash. If you look at the road programs, the street programs and sewers, we have in the last few years spent about $9 million. That’s including the sanitary sewer conversion on Eastgate and Meadowood, the roadwork there, the water and streets at Eastgate and Bonnieview, Aintree Park, Aintree North, Hanover Woods, Kenwood, I think residents can attest to the fact that these are all significant capital improvements and we have been able to do that because we have sustained the kinds of relationships we have with some of these businesses. Progressive is not the only business we pay attention to. So I think that summary is important for us to remember, especially as everyone goes into this election season and talks about lowering taxes and a chicken in every pot. The fact of the matter is this is a pretty comprehensive approach to make sure we are taking care of our residents and our businesses and they are not mutually exclusive. So I thank Council for these approvals.

Council President Marrie thanked Mayor Rinker. Any other comments or questions?

Chief Carcioppolo stated, Mr. Marquardt just reminded me. I didn’t realize I could do this. Can you guys approve going out to bid on the windows again?

Mr. Saponaro stated, we don’t need to. Just go out.

Mr. Jerome asked, what about for the dispatch item?

Mr. Saponaro stated, you don’t need approval. They are just getting numbers. You are already allowed to go out to bid for the windows. You don’t need our approval.

Council President Marrie asked, any other comments or questions? There were none.

ADJOURNMENT

 Mr. Mills, seconded by Mr. Marquardt, made a motion to adjourn.

The meeting adjourned at 8:40 p.m. The next Council meeting is scheduled for Monday, August 17, 2015 at 8:00 p.m.