Special Session

Council Minutes

Tuesday, March 13, 2007

The Mayor and City Council of Cumberland, Maryland, met in Public Session on Tuesday, March 13, 2007, in the Council Chambers of City Hall.  President Fiedler called the meeting to order at 6:05 P.M.   

Invocation – Councilman Harold Hendershot

Pledge of Allegiance to the flag of the United States

Call of Roll:

Present:  Mayor Fiedler, Councilmen Elliott, Hedrick, Hendershot, and Rephann.

Department Heads and/or Officials Present:  Jeffrey E. Repp, City Administrator; Jeffrey Rhodes, Director of Administrative Services; Michael Cohen, City Solicitor; and Sharon S. Clark, City Clerk

Presentations -      Mr. Paul Fitch, Landmark Development Group – Klot’s Mill Lofts

            Mr. Fitch addressed the council stating his son found this property through the internet and put together what is a favorable project in the State of Maryland due to the housing needs in Cumberland.  He stated the group works in seven (7) states, with Maryland being their eighth (8) state, and 75% of their development projects are historical rehabilitations.  He added that the Housing Authority would be 10% equity owner in the project with the group’s hopes to continue working with them on other joint projects.

            Mr. Fitch presented a proposed housing project for the location at 917 Gay Street that formerly housed the Tri-State Discount Center and the Western Maryland Food Bank saying the group’s plans are to renovate the building to include thirty-four (34) loft apartments and also build twenty-four new units.  He expressed that they are very concerned with appearance and landscaping and have two consulting interior design people who work with them.  Mr. Fitch said their plan includes providing adequate parking and they have taken into consideration their close proximity to Klavuhn Moving & Storage Company and the tenants’ ability to get in and out.  Mr. Fitch advised they would not be filing their application until the September round.

            Councilman Rephann asked if Landmark knows what city participation would be requested.  Mr. Fitch advised he would request city participation later in the summer in a minimum amount required by the State. Mr. Rephann asked if the State requires only City participation or both City and County.  Mr. Fitch responded that it needs to be a government entity.   Mr. Rephann asked if there were plans for home-ownership.  Mr. Fitch responded this is a federally regulated project; therefore, there would not be. He added the Housing Authority would have a chance to purchase the property in fifteen (15) years and, since they’re a non-profit entity, it could then be converted to home-ownership with tenants having an opportunity to buy their units.

            The floor was open for comment. 

            Mr. Ron Hampton, 47 East Elder Street, addressed the Council.  He stated he is a member of the Zoning Board but is not representing them in making his comments. Mr. Hampton stated he voted in favor of this at their meeting, but after a visit to the site and talking with Mr. Klavuhn he realized that was a mistake and he feels there would be problems with the trucks as well as safety issues.  He asked the Mayor and Council to visit the site prior to making their decision.

            Mr. Gary Simpson, Warehouse Manager for Klavuhn, addressed the Council stating the employees are not opposed to the project, but are in hopes they will be given consideration and assurances that at the completion of this project they will be able to continue to operate at the location.  Mayor Fiedler assured Mr. Simpson they very much want to and will work with Klavuhn and do not want to lose them or the development.  Mr. Simpson emphasized they want to be good neighbors.  Mr. Simpson stated they sent a letter requesting a meeting to address protecting their interest.

            Mr. Herbert Broll, Pennsylvania Avenue, Cumberland, asked Mr. Fitch what City participation he would be requesting.  Mr. Fitch expressed that each State has their own requirements for government participation and it would depend on what Maryland requires.  Mr. Broll expressed concern that this development would increase the property value of the surrounding properties causing those homeowners to pay higher taxes.    

Resolution -

A Resolution endorsing the project of Housing Development & Neighborhood Preservation to develop approximately 54 units at 100 Reynolds Street in Cumberland, known as Eastside School was introduced in Title Only.  Councilman Elliott made a motion to adopt the resolution.  Councilman Hedrick seconded the motion.

Mr. Repp explained the adoption of this resolution would endorse this project.  He further stated that similar resolutions had previously been adopted for the Cascades and PHIRL projects and included a 60% tax credit providing that everyone in the area would be paying the same level of taxes.  He further explained this resolution provides the 60% tax participation in addition to a capital contribution in the amount of $200,000 for improvements to Reynolds Street and water and sewer.  He advised, with the property being blighted for many years, the Mayor and City Council have expressed the project is worthy of the additional capital support.

Mr. Steve Chaney, Chaney Architects, gave a brief presentation of the project stating the school would have 24-26 units and three (3) new structures.  There will also be playgrounds and a community room to be used by the entire neighborhood and there will be a landscape buffer to decrease noise from I68 as well as storm management. 

Mr. Borvice, developer, stated there would be 52 units in all and expressed they are progressing slowly with the design meeting ADA requirements with two disabled units in the new construction and four disabled units in the school giving them the 10% ADA accessibility requirement.  He added they will try to do outreach to the neighborhood for use of the Community Center and have discussed with the local bus company adding a bus stop for transportation.  They will also have van service for the disabled, tutorial programs with Allegany College, and all units will be wired for computers.  Mr. Borvice stated they studied the project for the best use and this is the best use for the project aesthetically and economically.  He said rents would be at a moderate level with a two bedroom unit being approximately $631.00 monthly and a three bedroom unit being approximately $723.00 plus utilities, with the income level for four persons at 60% medium income being $36,000 annually. 

The floor was open for comments.

Mr. Herbert Broll, Pennsylvania Avenue, Cumberland, asked who presently owns the building.  Mr. Borvice said they purchased the building through the Potomac Economic Development and Housing Corporation.  He said that would be the general partner for the tax credits.  Mr. Broll stated he thought the school had environmental problems.  Mr. Borvice advised they have done a Phase 1 Environment Report and it is a clean site. 

Mr. C. E. Mines, Coldwell Bankers, stated he and his wife had looked at this project when they moved to the area with thoughts of purchasing it.  He stated he would lend all the support to this project he can as both a citizen and realtor.

The Resolution was unanimously adopted. 

Adjournment –

            With no further business to be discussed, the meeting adjourned at 6:41 P.M.

                                                                        Approved April 3, 2007