Salisbury, North Carolina October 1,2024 REGULAR MEETING PRESENT: Mayor Karen K. Alexander, Presiding; Mayor Pro Tem Tamara Sheffield, Council Members Harry McLaughlin and David Post; City Manager Jim Greene, Jr. City Clerk Connie B. Snyder; and City Attorney J. Graham Corriher. ABSENT: None. Salisbury City Council met in Council Chambers in City Hall located at 217 South Main Street. The meeting was called to order by Mayor Alexander at 6:00 p.m. A moment of silence was taken. PLEDGE OF ALLEGIANCE Mayor Alexander led participants in the Pledge of Allegiance to the United States flag. ADOPTION OF THE AGNEDA Thereupon, Councilmember Post made a motion to adopt the Agenda as presented. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and Post voted AYE. (4-0) UPDATE- HURRICANE HELENE RESPONSE City Manager Jim Greene expressed his appreciation for the local response to Hurricane Helene, and he noted communities are devastated from the impacts of the storm. He asked Assistant City Manager Kelly Baker, Police Chief Patrick Smith, and Fire Chief Bob Parnell to update Council as staff continues to coordinate the City's response to the hurricane victims. Salisbury City Council October 1,2024 Page 1 Ms. Baker pointed out the City has been working under the leadership and coordination of the City'sPublic Safety Departments, North Carolina Emergency Management and Rowan County Emergency Management to respond to requests for help to the areas impacted in western North Carolina. She provided an overview of a briefing that took place with the North Carolina League ofMunicipalities (NCLM) regarding the effects ofHurricane Helene in western North Carolina. Ms. Baker stated the City has set up collection points at City Hall, Fire Station 5, and the Customer Service Center to receive donations for the those affected by the hurricane, and she thanked the community for its support. She reviewed a list of items that are needed, and she displayed pictures of what has been collected to be taken as firefighters head to western North Carolina. Chief Parnell explained the State Fire Marshall's office requested aid from Salisbury, SO firefighters were deployed to McDowell County, reassigned to Henderson County, and are currently working in the Bat Cave area. He added firefighters have responded to structure collapses, water rescues, land searches, and are working tol locate those who are stranded, missing, or in need. He noted the recovery phase will soon begin as the communities will need assistance for utility restoration, debris management, and rebuilding structures. Chiefs Smith pointed out ai mutual aid request was received from the Ashville Police Chief requesting security assistance. He noted four to six employees who have administrative roles will go to Asheville SO every day operations in the City will not be affected. Mr. Greene noted the City has great leadership in the Police and Fire Departments, and he noted Salisbury-Rowan Utilities (SRU), Public Works, Transportation, and other departments are discussing how the City can assist those is western North Carolina. Councilmember McLaughlin thanked staff for its hard work and quick responses to keep the community safe during Hurricane Helene. Councilmember Posted noted the Salisbury YMCA is providing shelter for several hundred people rescued from the destruction. He askedifitis better to give money than supplies. Mr. Baker noted money can be donated through the North Carolina Disaster Relief Fund and will be distributed to non-profits in specific areas to provide aid to the victims. Mayor. Alexander thanked staffi fori its report, and she recognized citizens who helped move downed trees as a result of] Hurricane Helene. INTRODICTION-LAND AND DEVELOPMENT SERVICES STAFF Land and Development Services Director Phillip Lookadoo introduced Assistant Director/ City Engineer Tyler Kemo and Planner John Kinsey to Council. He stated Mr. Kemo will serve as the departments first Assistant Director and his responsibilities will include serving as the City Engineer, assisting with management and planning for the future of the Department and the City. He added Mr. Kinsey will work with staffi in ai range oftasks that include development review and legislative amendments. Salisbury City Council October 1, 2024 Page 2 Council welcomed Mr. Kemo and Mr. Kinsey to the City. PROCLAMATIONS Mayor toj proclaim the following observances: BREAST CANCER AWARENESS MONTH CYBERSECURITY AWARENESS MONTH DOMESTIC VIOLENCE. AWARENESS MONTH NATIONAL BULLYING PREVENTION MONTH NATIONAL CRIME PREVENTION MONTH ROWAN COUNTY UNITED WAY MONTH SUBSTANCE ABUSE PREVENTION MONTH FIRE PREVENTION WEEK CUSTOMER SERVICE WEEK October 2024 October 2024 October 2024 October 2024 October 2024 October 2024 October 2024 October 6-12,2024 October 7-11,2024 CONSENT AGENDA (a) Minutes Approve the Minutes of the regular meeting of September 3, 2024 and the special meetings of September 10, 2024 and September 17,2024. (b) Contract - Rumsey Construction and Restoration Authorize the City Manager to approve a contract ini the amount of $212,100 for Rumsey Construction and Restoration for the restoration of windows at City Hall. This item is included in the FY2024-2025 budget. (c) Right-of-Way Use Permit Main Street through November 5,2 2024. Approve a Right-of-Way use permit for masonry work being completed at 217 South Thereupon, Mayor Pro Tem Sheffield made a motion to adopt the Consent Agenda as presented. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and Post voted AYE. (4-0) PUBLIC COMMENT Mayor Alexander opened the floor to receive public comment. Salisbury City Council October 1, 2024 Page 3 Mr. Bryan Wymbs addressed Council regarding public safety near Salisbury High School, and he requested increased police presence int the area during school hours. Het then asked Council tos support the redevelopment of the Empire Hotel. There being no one else to address Council, Mayor. Alexander closed the public comment session. LAND DEVELOPMENT DISTRICT MAP AMENDMENT - 2800 WOODLEAR: ROAD Mayor Alexander announced the proposed Ordinance to amend the Land Development District Map located at 2800 Wood Leaf Road has been withdrawn by the petitioner and will not bel heard by Council. LOCAL HISTORIC LANDMARKS Planning and Neighborhoods Director Hannah Jacobson and Planner Emily Vanek asked Council to consider adopting an Ordinance establishing a six-month moratorium regarding Local Historic Landmarks. Ms. Jacobson explained the purpose of the proposed six-month moratorium includes: Identifying ways to make the program representative oft the City's historic resources Progress toward implementing recommendations from the Historic Preservation Evaluating the methods ofidentifying historic: resources Commission (HPC) Landmarks Subcommittee Updating Local Historic Landmark Design Standards Adopting a Demolition by Neglect Ordinance Annually inspecting landmarked properties Education Ms. Jacobson noted the City has a substantial historic inventory with 11 National Register Historic Districts, 20 properties individually listed on the National Register, five Local Historic Districts, and 13 Local Historic Landmarks. She explained the difference between National Register designations and local designations, and she pointed out local designations are legislative decisions and at the discretion of Council. She stated a property that receives landmark status can apply for an annual 50% property tax deferral as long as the property's historic features included in the designation are maintained. She explained that the process for landmark designation can take more than a year to complete, and she outlined the application process. Ms. Jacobson stated that the proposed Ordinance identifies two types of Local Landmark Designations: a property category and a cultural category. She noted a designation under the property category must maintain all seven aspects of historic integrity and a property seeking cultural designation must maintain four aspects ofhistoric integrity and must also meet atl least one cultural significance criterion. She added there has been an increase in designations over the last Salisbury City Council October 1,2024 Page 4 two years, primarily focused in the West Square and she displayed photos of the 13 designated Local Historic Landmarks. Mayor Alexander convened a public hearing after due notice regarding a six-month Ms. Dee Dee Wright asked if the proposed moratorium will work with the Historic City Attorney Graham Corriher indicated the proposal before Council would pause the process ofdesignating properties as landmarks. He explained the HPC has ai role in the process of designating landmarks and the HSF is a private group independent oft the City thati is not involved moratorium regarding Local Historic Landmarks. Salisbury Foundation (HSF). ini the process. Ms. Karen Lilly-Bowyer, Ms. Pat Schaffer, Mr. John Schaffer and Mr. John Martin spoke Mr. Steve Cobb expressed his support for the six-month moratorium for Local Historic There being no one else to address Council, Mayor. Alexander closed the public hearing. Mayor Pro Tem Sheffield asked ift the Local Historic Landmark Ordinance can be revised without implementing a six-month moratorium. Ms. Jacobson noted staff resources are limited, but staff can assess the Ordinance without a six-month moratorium. Councilmember McLaughlin asked who can apply for landmark designation. Ms. Vanek commented the Local Historic in opposition for the six-month moratorium for Local Historic Landmarks. Landmarks. Landmark application is open to all citizens. Councilmember Post noted a six-month moratorium would provide an opportunity to review the program and assess citizens' motives for seeking the designation. Councilmember McLaughlin expressed his gratitude for efforts to preserve historic properties. He added implementing a six-month moratorium would give staffthe opportunity to review the designation process and ensure accessibility for all citizens. Mayor Pro Tem Sheffield stated she does not support the proposal, and she pointed out staff can review and revise the Ordinance without implementing a hold on applications. Mayor Alexander noted that establishing a six-month moratorium would allow staff the opportunity to: review program recommendations from the HPC, including an annual inspection of the properties that received Local Historic Landmark designation. Thereupon, Councilmember Post made a motion to adopt an Ordinance establishing as six- month moratorium for the consideration of Local Historic Landmarks in the City of Salisbury. Mayor Alexander, and Councilmembers McLaughlin and Post voted AYE and Mayor Pro Tem Sheffield voted NAY. (3-1) Salisbury City Council October 1,2 2024 Page 5 ORDINANCE ESTABLISHING A SIX-MONTH MORATORIUM FOR THE CONSIDERATION OF LOCAL HISTORIC LANDMARKS IN THE CITY OF SALISBURY. (The above Ordinance is recorded ini fulli in Ordinance Book No. 32 at Page No. 123, and is known as Ordinance 2024-67.) EMPIRE PROJECT City ManagerJ Jim Greene stated the Empire Project is aj priority for Council andi is included in the City's Strategic Plan. He recognized City Attorney Graham Corriher and Downtown Development Director Sada Troutman for their work on the project. Ms. Troutman thanked Council for its passion for the Empire Project. She explained the project consist ofthree phases, and she noted Phase Iist the only phase before Council att this time. She stated Phase 1 consists of15,000 square feet ofthe approximately 100,000 square foot building and is known as the Efird's Section. She noted the developers are ready to break ground on Phase 1v which will include two two-story row homes, seven apartments or full floor homes, and one retail space facing Main Street. Ms. Troutman indicated Phases 2 and 3 will bel brought before Council at a later date. She explained Phase 2 is known as the Hotel Section andi it will include three retail spaces, 371 boutique hotel rooms, nine apartments, and a grand ballroom. She added Phase 3 is known as the Montgomery Ward section and will include ai restaurant on the ground floor, 20 apartments, and a spa or meeting space in the basement. Ms. Troutman reviewed the preliminary site plan for Phase 1, and she pointed out the row homes will face Bank Street. She displayed an artist's rendering of the project, and she noted the project will include sidewalk and rear parking lot improvements, a courtyard, and the extension of public space on Bank Street. She added Downtown Salisbury, Inc. (DSI) owns the property and it approved thej purchasing documents ati its board meeting last week. Mr. Corriher stated multiple agreements are required for the Empire Project. He noted the purchase agreement is between DSI, the seller, and the buyer/developer, and he explained the City is aj participant in the project which makes it a three-party agreement. He added the purchase agreement isi for the Efird's building and it includes a purchase price of$125,000. He commented the purchase agreement requires a closing date on or before October 31, 2024 and the closing is tentatively scheduled for October 10, 2024. He added the Efird's Building is fully financed and one ofthe requirements is that construction begin immediately. Mr. Corriher: noted the option to purchase contract creates an opportunity for the developer to purchase the Empire Hotel section, the largest part of the project. He added the option to purchase contract does not include the Montgomery Ward section. He commented the developer isp paying $100,000 for the right to purchase the Empire Hotel section to be paid at the closing of Phase 1. He explained the developer will have two years to bring a development plan to the City and DSI for their approval. He commented the purchase price oft the hotel section is $310,000 and Salisbury City Council October 1, 2024 Page 6 the developer must meet all ofthe requirements int the option contract toj purchase the Empire Hotel section ofthe project. He noted the option toj purchase contract is a two-year option and it includes milestones the developer must meet. He added the goal is to work simultaneously on the construction of] Phase 1 and the development plan for Phase 2 which will provide the City and DSI assurance regarding the project. Mr. Corriher explained the option to purchase contract has two parts, and in order to begin construction on the row homes the developer is required to: Within 60 days of closing begin demolition and submit schematic plan Within 90 days of closing submit a complete master plan to the City Within 120 days of closing submit a complete zoning application to the City Within 24 months of closing complete construction of the row homes and receive a Mr. Corriher pointed out the timelines were developed in consultation with the developers who assured the City and DSI that they can meet the timelines. He reviewed the option toj purchase certificate of occupancy for all units contract for the Empire Hotel section of the project: Within 18 months of closing the developer must submit an incentive request to the City Within 24 months ofo closing the developer must submit a certificate of appropriateness, zoning verification letter, pro forma and financing plan to the City and DSI Within 24 months of closing the developer must submit a general site plan including buildings, amenities and infrastructure that is consistent with previous conceptual plans Within 24 months of closing the developer must receive a Part 1 tax credit approval letter and must have submitted Part 2 tol National Park Service for consideration Mr. Corriher stated once the City receives the incentives request it can negotiate with the developers on an incentive package. Hei indicated the developer willl have an additional six months to fill the financing gap if City incentives are not enough to complete the project. He stated the construction: and development options must bei met fort the developers toj purchase the Empire Hotel section and begin construction on Phase 2. Mr. Corriher noted the infrastructure reimbursement agreement will allow the City to participate in the redevelopment of the Empire Row Homes by providing the developer a 50% reimbursement of the infrastructure costs up to a maximum of $200,000. He explained public infrastructure includes arelocated and reconstructed sidewalk along West Bank Street, stormwater infrastructure, water/sewer infrastructure, and street trees. He clarified the developer will build a new sidewalk, and he noted the traffic pattern will not be affected. He stated the infrastructure reimbursement agreement will include a deed from the City and an easement agreement that would grant the developer the right to build the patio homes where the existing sidewalk is located in exchange for relocating the sidewalk and constructing or reconstructing other publicinfastructure. He added the easement agreement will allow the developer to work in the streets, and he added staff has worked with the developer to create the least possible impact. Salisbury City Council October 1,2024 Page 7 Mr. Corriher then reviewed the development agreement which operates as an umbrella agreement to: make sure all parties are agreeable regarding the overall development, including the purchase and construction of Phase 1 and a plan for Phase 2. He pointed out: Montgomery Ward section will not be actively marketed during the term oft the option The City will coordinate with the developer on design and construction of the Main Ift the Developers do not comply with the timeline, then DSI and City obligations as Mr. Corriher clarified the four main agreements are the purchase agreement, the option to purchase, the infrastructure reimbursement agreement, and the development agreement. He explained the proposed Ordinance can be used for other projects and it authorizes the reimbursement agreement, the CIP designates the infrastructure that the developers will build, and the Resolution allows the City Manager to execute the documents and agreements regarding the Street Project, if possible outlined ini the development agreement can be terminated Empire Project. Thereupon, Mayor Pro Tem Sheffield made a motion to adopt an Ordinance to adopt policies and procedures governing infrastructure reimbursement agreements for the City of Salisbury. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and ORDINANCE TO ADOPT POLICIES AND PROCEDURES GOVERNING INFRASTRUCTURE REIMBURSEMENT AGREEMENTS FOR THE CITY OF SALISBURY. (The above Ordinance is recorded in full in Ordinance Book No. 32 at Page No. 124, and is known Post voted AYE. (4-0) as Ordinance 2024-68) Thereupon, Mayor Pro Tem Sheffield made a motion to amend the Downtown Salisbury Capital Improvement Plan to include the Empire Row Homes infrastructure. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and Post voted AYE. (4-0) Thereupon, Mayor Pro Tem Sheffield made a motion to adopt a Resolution authorizing the City Manager to execute transaction documents related to the Empire Project. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and Post voted AYE. RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE TRANSACTION (The above Resolution is recorded in full in Resolution Book No. 17 at Page No. 30, and is known (4-0) DOCUMENTS RELATED TO THE EMPIRE PROJECT. as Resolution 2024-22.) Council thanked the developers and welcomed them to Salisbury, and it recognized the DSI Board, Mr. Corriher and Ms. Troutman for their work on the Empire Project. Salisbury City Council October 1,2024 Page 8 VALVE ASSESSMENT: SERVICES- SALISBURY ROWANUTILITIES Salisbury-Rowan Utilities (SRU) Interim Director Jason Wilson addressed Council regarding the requested water valve assessment services. He shared a map of the water valve locations, and he noted the valves are underground and need to be tested. Mr. Wilson pointed out a Request for Proposal (RFP) was sent out and two proposals were received and scored. He explained the scope of the request if for the contractor to locate, identify, assess and inspect each oft the 7,915 valves, exercise each valve, perform minor repairs, record GPS data along with how much torque it took to turn that valve, create a deliverable database, create work orders, and analyze results. He noted in the future the valves can be maintained or repaired according to the work orders. He noted this assessment has derived from recommendation in the Water Distribution System Master Plan completed a few years ago, and funds are identified in the Capital Improvement Plan (CIP). Mr. Wilson explained the contractor will exercise valves by opening and closing them toj prevent the valve from sticking when turning on and off. He added the valves will also be exercised to ensure operational readiness and identify issues which will increase longevity. City Manager Jim Greene noted the work is anticipated to take a year, but possibly longer due to the western North Carolina being impacted by Hurricane Helene and resources going there. Councilmember) McLaughlin asked ifthere will bei interruptions to citizens or businesses during this project. Mr. Wilson noted communications will be sent to the public in the areas the contractor will be working, and he added interruptions will be momentary and possibly just pressure fluctuations. Thereupon, Councilmember Post made a motion to authorize the City Manager to enter into a contract with Hydromax USA in an amount not to exceed $690,000 for valve assessment services for Salisbury-Rowan Utilities. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin and Post voted AYE. (4-0) COUNCIL COMMNETS Councilmember Post asked citizens to support the hurricane victims in the mountains. He added we are fortunate in Salisbury for the minimal impact we: received from the hurricane. MAYOR PROTEMICOMMENTS Mayor Pro Tem Sheffield referenced the storm damage in the City, and she thanked everyone who worked to provide a quick response. She asked citizens to continue to support Western North Carolina, and she thanked the Police and Fire Departments for sending assistance. Salisbury City Council October 1,2024 Page 9 Mayor Pro Tem Sheffield pointed out October is Breast Cancer Awareness Month, and she reminded both men and women to get their yearly exam. MAYOR'S ANNOUNCEMENTS AND COMMENTS (a) BlockWork Mayor Alexander announced the 14th annual BlockWork neighborhood improvement project will take place Saturday, October 26th in the 1100 and 1200 blocks of West Horah Street. The Community Appearance Commission and Housing Advocacy Commission are seeking volunteers to help with exterior home repairs. T-shirts, gloves, meals and drinks will be provided. Sign up to volunteer by visiting: ww.salisburync.gov/Blockwork by Friday, October 18th. for items to be sent to western North Carolina, and she encouraged citizens to donate. Mayor Alexander reminded citizens the Police and Fire Departments are holding a drive Mayor Alexander stated Council is now accepting applications to fill its vacant position. She noted in order to apply, please contact Assistant City Manager Kelly Baker at Kbake@salsiburynegow to request the application link, and she added all applications must be received by Friday, October 4, 2024 at 5:00 p.m. ADJOURNMENT Motion to adjourn the meeting wasi made by Mayor Pro Tem Sheffield. Mayor Alexander, Mayor Pro Tem Sheffield, and Councilmembers McLaughlin, Post and Smith voted AYE. (5-0) The meeting was adjourned at 8:01 p.m. LEA Karen K. Alexander, Mayor Couue 6 Sruyt Connie B. Snyder, City Clerk Salisbury City Council October 1, 2024 Page 10