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24 APR 4CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in a regular session on April 4, 2024 at the regular meeting place of the City Council. Council Member Bolden delivered the invocation and Mayor Elmore led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: City Council Members: Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains answered ROLL CALL. Mayor Elmore also answered ROLL CALL declaring a quorum. PRESENT EIGHT (8) ABSENT TWO (2). Council Members Mashburn and Moss were absent. Others present for the meeting were: City Attorney Stephanie Friedman, Police Chief Brett Hibbs, Fire Chief Alan Laughy, Finance Director Cheryl Erkel, Parks and Recreation Director Kevin House, Director of Engineering & Public Works Adam Whitlow, Director of 911 Tabby Hughes, Captain Ryan Wright, Assistant City Clerk Emilia Vazquez, IT Director Emily Osment, Communications Director Emily Sundermeier, Addie Gibson, Cheesa Williams, and Jim Moore. PRESENTATION OF MINUTES: Mayor Elmore presented the minutes of the regularly scheduled City Council meeting of March 21, 2024 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Council Member Twitty moved, seconded by Council Member Ray that the minutes of the regularly scheduled City Council meeting of March 7, 2024 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT: ENGINEERING DEPARTMENT Council Member Ray moved, seconded by Council Member Bolden to approve the regular monthly report for March 2024. MARCH PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 20 Building Inspections 36 Electrical 61 Plumbing 46 HVACR 33 ROLL CALL: Council Member: Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. WATER DEPARTMENT WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: COMMITTEE(S): CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. GENERAL: a. Christopher Homes request regarding property on General Samuels Road Christopher Homes of Arkansas Executive Director Elizabeth Lopez and Board of Directors Secretary Michele Allgood introduced themselves to Council. Ms. Lopez thanked Council for allowing a third presentation. She explained that Christopher Homes is a 501c3 nonprofit housing management agency who currently manages 24 properties in Arkansas with 588 residents. She related their ministry is for those at least 62 years old, noting they are an arm of the Catholic Dioses of Little Rock. She anticipates, and is actively working, the development of the Christopher Homes of Jacksonville property. She told how they have a 56-unit property in North Little Rock and a 20-unit property in Little Rock that stay full and have waiting lists. She detailed they are working on getting 14 of those North Little Rock units back, since they received tornado damage, so they anticipate going through some on the waitlist. She told how today they received a call regarding someone who needed housing and when they called properties specific to seniors in the metro area, they could not find one that had a vacancy. She shared their goal to provide safe, sanitary housing for seniors, which is much needed in the metro area, to be close to doctors and family. She mentioned offering garden style apartments with the least barriers for their residents, so they can age in place with easier access from the parking lot. Ms. Allgood stated they want to serve more people and develop this facility in Jacksonville. She explained the process for getting the initial award has to go through the Department of Housing and Urban Development (HUD) and is scored with points. She recalled the timing of the application was around Covid, so when they submitted the cost for the project, they did not know the full impact of it and have a significant gap today. She brought up that when they were here before, the question was asked if this would be developed if the City did not donate the property, and they truthfully answered that they thought it would. She detailed that they were going through the grant program the Arkansas Development Finance Authority administers, but unfortunately, in the middle of it, the program changed to a loan. She related the purpose of these facilities are not to generate revenue, so this project could not support a loan. She pointed out that the program they are applying for now would be a grant; it is supplemental funding for HUD and also has a scoring process where the amount of money awarded is based on points. She confirmed the higher the points, the more likely to get funded, so they ask that the land be donated to Christopher Homes in order to get 5 points, which may be the difference between this project happening. She added that if they are not willing to support that, they would get 2.5 points if donated at much less than fair market value. She told how their application deadline is May 1st and if Council is willing to consider, they would bring back an ordinance or resolution at the next Council meeting to include with the application. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. Council Member Twitty recalled this was first brought before Council in August 2019 and were told in 2020 the money would probably be available, with donating it never being discussed. She clarified the City asked for $10,000 per acre, and when Ms. Lopez requested $10 per acre, they voted no, but were told it would still be developed. She mentioned planning construction in March 2023, but now it is 2024. She confirmed other people who have bought their acres in the area were $10,000 per acre, so we would be setting a precedent to donate or lower the price they agreed upon. Ms. Allgood shared that they have been diligently pursuing this, but things have changed outside of their control. When Council Member Twitty brought up current senior housing in the City, she replied that they believe some of them may prefer the type of property that Christopher Homes provides. Ms. Lopez explained that you make application and then wait for a scoring process, but Covid slowed down Washington, D.C. when they were evaluating the applications, so it was 2021 when they were notified. She recalled at that time Arkansas Development Finance Authority (ADFA) was using the Housing Trust Fund as a grant, which were HUD funds, but they changed it on them, making it unfeasible since the property cannot support the debt service. She mentioned the Federal Home Loan Bank of Dallas has an Affordable Home Program and $80 million available this year, with 43 projects funded last year at an $850,000 cap per project. She told how the cap this year is $2 million, surmising they need $1.543 million to finish this project. She confirmed they have everything submitted to HUD for firm commitment and HUD is ready to issue the firm. She stated they have cleared the environmental hurdles and every box HUD requires for this, except for the gap funding, which HUD will not release until they have the full budget. She related the application period opened April 2nd and closes May 1st when they start evaluating applications. She added that in November, she is confident they will be notified of receipt of reward since they have checked off all of the boxes they need through their firm commitment of the survey, appraisals, full building plans, environmental, and budget is done. She brought up 19 applications last year they were unable to fund because they did not have the money, surmising those 19 will reapply, but they have $80 million this year with a $2 million cap, so she is confident they will receive the funds if they get the scoring. She said once HUD gets the letter, they have their firm commitment in hand, which means they have their funding set aside for them and in three months they go to closing. She is hopeful they get the award in November, go to firm commitment, initial close by January, and will be moving dirt by January-February 2025. When Council Member Rains inquired, she replied the appraisal was $27,000 and the City offered it at $21,000, but if it is offered less than 50% of fair market value, they get 2.5 points. Ms. Allgood reiterated if it is donated, they get the full 5 points. Ms. Lopez clarified that when they came before Council in 2019, it was just to rezone the land to allow them to make application to HUD, so the “clock did not start ticking” until they received their award in 2021. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. Council Member Sansing opposed the City making money on land for a non-profit organization, recalling he was willing to give it to them for $1, but got outvoted. He confirmed he is still willing to give it to them because they are a non-profit organization who is doing something that is strongly needed in the City. He stressed that $21,000 or $25,000 in our budget is not going to make a drop, so this does not hurt us and does not set a precedent, because it is a non-profit. Council Member Twitty recalled Council was told they would go through with the development no matter what. She recommends continuing to do what Council voted in 2022; to sell the land for $10,000 per acre, to which Ms. Lopez told them they would move forward with the project regardless of land cost. Council Member McCleary agreed that donating the land could set a precedent. Ms. Lopez affirmed they are not a developer, but are a sponsor that do not own the properties; they are single entity assets that they operate and manage as a sponsor and management agent. When Council Member Bolden inquired, she replied this is affordable housing for the very low income at 30% of the area median income. Council Member Bolden noted there are many non-profits that want to come to Jacksonville and would come before Council to ask the same thing. Council Member Twitty pointed out there is a residence similar to this in Stonewall that is not the only one in town. Ms. Lopez explained if there is a management agent doing a poor job, HUD can take the property and get new management, so they do not own them or create any income off of them. She confirmed they operate on 100% occupancy at the property, adding they will have a budget of $152,400 a year, based on the Little Rock property since it is the same design. She acknowledged this development would not bring a lot of revenue in, but it will provide a job and residents will be shopping locally. She brought up in the Jacksonville Consolidated Plan, there is a need for affordable senior housing. Ms. Allgood further clarified that the HUD model is to create a special purpose entity for each facility and Christopher Homes is the HUD-approved manager of all of them under the Christopher Homes umbrella. Ms. Lopez explained when she fills out the ownership for it, their Board has the ownership. She told how they have taken over four properties in the State; Little River in De Queen, Carrick House in DeValls Bluff, and The Cottages of Delta Acres in Clarendon. She explained the Board dissolves themselves of the property and Christopher Homes’ Board assumes their physical assets. She mentioned a regulatory agreement between the property and HUD. When Mayor Elmore inquired, she replied HUD can terminate their management if they are not properly managing, if inspection scores fall below 60, and certain management reviews. She affirmed they have, and have had, superior management reviews, with property inspection scores in the 90’s. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. Ms. Allgood related HUD will be in charge by telling Christopher Homes to operate it, and if HUD chooses, they will find someone else. Ms. Lopez detailed that they incorporated in 1969, have 24 properties, and have not lost one yet. Council Member Ray showed support for the development. Council Member Dietz shared that he would not be willing to give the property, but would make a reasonable offer to help them get funding. He stressed that $10,000 per acre for commercial property is cheap, and if it were on the open market, it would sell for quite a bit more. Council Member Twitty pointed out it is prime property right now, because of the businesses that are near and believes the price quoted was a fair deal. She was also opposed to selling it less than fair market value, noting they have not met any dates given to Council. Ms. Lopez noted, as sponsors, they have a contribution of $350,000 to get the property developed. She explained that HUD only gives a certain amount of time before they recapture funds and right now, they have $2,114,096 set aside for them. She brought up that if they cannot get their gap funding, to firm commitment, and initial close, then the money will be recaptured to where they will reapply if their Board approves. She stated a lot of what they do hinges on what Washington, D.C. is doing, so she cannot give a certain timeline. City Attorney Friedman referenced ACA § 14-54-302, saying “a municipality may donate land to another government entity or portion of government,” so if Council agrees to donate it, it would have to go to HUD, not to Christopher Homes. Council Member Rains moved, seconded by Council Member Sansing to entertain a donation agreement with the Department of Housing and Urban Development for 1900 General Samuels Road. ROLL CALL: Council Member Sansing, Ray, and Rains voted AYE. MOTION FAILED with Council Member Dietz, Bolden, McCleary, Twitty, and Kinman voting NAY. Council Member Sansing moved, seconded by Council Member Rains to sell the 2.1 acres of land located at 1900 General Samuels Road for a total of $13,000 to Christopher Homes of Jacksonville in the manor that HUD requires. ROLL CALL: Council Member Dietz, Sansing, Ray, and Rains voted AYE. Council Member Bolden, McCleary, Twitty, and Kinman voted NAY. When Mayor Elmore inquired, Ms. Lopez replied for this property, they have a potential applicant list of 150, because they cannot officially open a waiting list until it is in development. She confirmed these are people who call them from all over the state, and out of state. She explained for their Little Rock property, they have a 2 year waiting list and an 18 month waiting list in North Little Rock. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. Mayor Elmore pointed out if there is a 2 year waiting list for anyone, there is no guarantee it would benefit the citizens of Jacksonville. Ms. Lopez acknowledged it is very difficult to get in, noting the reason there are not enough senior housing is because 10,000 Baby Boomers are turning age 62 per day, so there is a desperate need for affordable, safe senior housing. She referenced a recent news article regarding the condition of apartments in Jacksonville, assuring that Christopher Homes does not make the news and are an Arkansas company with 16 managers who live at, and manage, their properties. She related they have a maintenance staff and a Service Coordinator that offers casework services to help the residents age in place. Ms. Allgood confirmed they cannot discriminate by saying a Jacksonville resident is going to be a first priority; they have to follow HUD’s rules. She stated some who may be moving into these facilities are because people who live here are bringing their parents home. Mayor Elmore mentioned the location is not a great spot for senior residents due to everything that is going on around it with a corporation acquiring all of the land surrounding it. He believes there are other locations in town that would be better. MOTION FAILED with no affirmative vote from Mayor Elmore. b. DISCUSSION Public Safety Answering Points (PSAP) Mayor Elmore recalled that State legislature in 2019 made changes to communication centers statewide requiring them to cut the number almost in half. He explained that every county would have two Public Safety Access Points (PSAP) instead of every jurisdiction having their own, with exception of Pulaski County with three since Little Rock gets to remain on its own. He detailed that Little Rock would have one, the City of Jacksonville and Pulaski County Sheriff’s Office will be combined into one, and Maumelle, North Little Rock, and Sherwood will be combined into one. He referenced the copy of the Memorandum of Agreement between the City of Jacksonville and Pulaski County, noting he has brought it before Council for informational purposes only. He related that they are in the midst of working out all of the details with it being a major undertaking. He pointed out that it will be housed here, they will be City of Jacksonville employees, and Pulaski County will be contracting with us for services since we will dispatch for County; so, the County government will pay accordingly. He mentioned there will be upfront costs to physically make it happen, but with the ongoing contractual services, it will be divided up based on population; the unincorporated area having a population of roughly 64,000 and Jacksonville at 30,000. He brought up that the County would like for us to be up and running by September 1st; it may be before or after then, but it has to be done by January 1, 2025. c. ORDINANCE 1752 (#05-2024) AN ORDINANCE AMENDING JMC § 5.07, CREATING REQUIREMENTS FOR MASSAGE BUSINESSES; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. Council Member Ray moved, seconded by Council Member Bolden to place Ordinance 1752 on FIRST READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1752. Captain Ryan Wright recalled the City had three massage parlors shut down recently and had their business licenses pulled. He explained the purpose of this ordinance is to give the City protection against illicit massage businesses. He detailed that it defines what a massage therapist is, prevents operation in the City without a certified therapist, and prevents them from advertising on illicit websites for inappropriate services. He mentioned it makes the application requirements more stringent, requiring background checks, photo identification for every employee, record requirement, and allows the City to inspect records or the business at any time. He pointed out that these types of businesses are typically used with prostitution and human trafficking, so this prevents victims and protects citizens. Council Member Bolden moved, seconded by Council Member Sansing to APPROVE Ordinance 1752 on FIRST READING and SUSPEND THE RULES and place Ordinance 1752 on SECOND READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Bolden moved, seconded by Council Member Ray to APPROVE Ordinance 1752 on SECOND READING and SUSPEND THE RULES and place Ordinance 1752 on THIRD AND FINAL READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Bolden moved, seconded by Council Member Sansing to APPROVE AND ADOPT Ordinance 1752 in its entirety. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Ray moved, seconded by Council Member Bolden that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. ORDINANCE 1752 (#05-2024) APPROVED AND ADOPTED THIS 4TH DAY OF APRIL, 2024. APPOINTMENTS: UNFINISHED BUSINESS: NEW BUSINESS: ANNOUNCEMENTS: Parks entry fee Council Member Dietz mentioned charging a gate fee for entry into sports games at City parks. Parks and Recreation Director Kevin House confirmed the Parks and Recreation Commission stopped charging a fee 18-20 years ago, but he can bring it up to them to see if they would want to start again. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING APRIL 4, 2024 6:00 P.M. – 7:07 P.M. City LED signs Mayor Elmore explained that the City has installed four new controllable LED signs; one at City Hall, one at Main Street near Firestone, one at Loop and Graham Road, and one at Dupree Park. He brought up they will be used for marketing, advertising, emergency services, and sanitation updates. He confirmed they did not come out of City budget, but were funded by the Advertising and Promotion Commission. ADJOURNMENT: Without objection, Mayor Elmore adjourned the meeting at approximately 7:07 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR JEFF ELMORE City Clerk-Treasurer