Council Minutes

January 4, 2005 Meeting Minutes

BETHLEHEM CITY COUNCIL MEETING
Bethlehem, Pennsylvania
Tuesday, January 4, 2005 – 7:30 PM – Town Hall

1. INVOCATION
2. PLEDGE TO THE FLAG
3. ROLL CALL

President J. Michael Schweder called the meeting to order. Pastor Joseph Grasser offered the invocation which was followed by the pledge to the flag. Present were Ismael Arcelay, Jean Belinski, Robert J. Donchez, Joseph F. Leeson, Jr., Gordon B. Mowrer, Magdalena F. Szabo, and J. Michael Schweder, 7.

4. APPROVAL OF MINUTES

The minutes of December 21, 2004 were approved.

5. COURTESY OF THE FLOOR (for public comment on ordinances and resolutions to be voted on by Council this evening)

RR Overlay – Township Line Road

Robert Cauffiel Lovingood, 3051 Center Street, expressing his concern about changes to the City’s RR – Residential Zoning District, stressed that “for the last forty years we’ve been fighting to maintain the nature and character of [the] RR District.” Referring to expansion of the RR District, Mr. Lovingood communicated there is a lack of land for single family homes. Mr. Lovingood asked City Council to vote against Bill No. 64 – 2004. He remarked it does not make sense to create RR South of the City and then take it away in the North. Mr. Lovingood pointed out that a lot of roads were not laid out by engineers but by cattle, and the deeds go to the middle of the roadway. Mr. Lovingood added that people would like to keep City facilities with country living, and keep Bethlehem an attractive place. Mr. Lovingood expressed that if Council votes in favor of the Bill then he is sure that in the future there will be other applications and it will have a negative effect. Mr. Lovingood advised he is concerned about the safety and the environment in the area of the proposed RR Overlay.

6. OLD BUSINESS

Rescheduling Public Hearing - Miscellaneous Zoning Text Amendments

Mr. Donchez and Mrs. Belinski moved to reschedule the date of the Public Hearing on the Miscellaneous Zoning Text Amendments that were read into the record at the December 21, 2004 City Council Meeting as Communication 7 A to Tuesday, February 1, 2005 instead of Tuesday, February 15, 2005, at 7:30 PM in Town Hall.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

7. COMMUNICATIONS

A. Street Vacation Request – Silk Mill Street (Portion)

The Clerk read a letter dated December 14, 2004 from Bryan L. Ritter, President, Jena Engineering Corporation, requesting on behalf of Silk Mill Realty, L.P. that a portion of Silk Mill Street northward from West Goepp Street to the existing private alley immediately behind the existing Silk Mill located at 238 West Goepp Street be vacated.

President Schweder referred the request to the Planning Commission.

B. Redevelopment Authority Executive Director – Sale of Land – Silk Mill Vicinity

The Clerk read a memorandum dated December 17, 2004 from John D. Rohal, Executive Director of the Redevelopment Authority, requesting City Council approval of the sale of several small pieces of vacant land in the vicinity of the West Goepp Street Silk Mill to Ashley Development Corporation. The land is the last remaining parcels owned by the Redevelopment Authority in the long closed out Northside Urban Renewal Area #1. Ashley Development Corporation has created an entity called Silk Mill Realty, LP to convert the vacant former silk mill into approximately 77 residential apartment units, and the company needs the land to meet parking requirements for the mill conversion. The Redevelopment Authority approved the land sales agreement on December 16, 2004 subject to the concurrence by City Council. The Agreement calls for the land to be transferred to Silk Mill Realty, LP for the appraised value of $79,500.

President Schweder referred the request to the Community Development Committee.

C. Rezoning Request – 53 East Lehigh Street – I Institutional to RM Residential

The Clerk read a letter dated December 30, 2004 from David Trager, of Woodmont Properties, in regard to their recent contract to purchase property at 53 East Lehigh Street, requesting to rezone the property from I’ Institutional to RM Residential. The company anticipates demolishing the existing Van Bittner/Steelworkers’ Union Hall and building a number of town homes on the site.

President Schweder referred the request to the Planning Commission and Lehigh Valley Planning Commission.

Scheduling Public Hearing

Mr. Donchez and Mr. Arcelay moved to schedule a Public Hearing on the rezoning request for Tuesday, February 15, 2005 at 7:30 PM in Town Hall.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

8 . REPORTS

A. President of Council

1. Councilmanic Appointment – Howard D. Fegan – Library Board

President Schweder reappointed Howard D. Fegan to the Library Board effective until January 2008. Mr. Donchez and Mr. Arcelay sponsored Resolution 14,541 to confirm the appointment.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

2. Councilmanic Appointment – Ardeth M. Smackey – Library Board

President Schweder reappointed Ardeth M. Smackey to the Library Board effective until January 2008. Mr. Donchez and Mr. Arcelay sponsored Resolution 14,542 to confirm the appointment.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

3. Councilmanic Appointment – Marie F. Sterlein – Library Board

President Schweder appointed Marie F. Sterlein to the Library Board effective until January 2008. Mr. Donchez and Mr. Arcelay sponsored Resolution 14,543 to confirm the appointment.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

B. Mayor

1. Administrative Order –Paul Reitmeir – Bethlehem Housing Authority

Mayor John B. Callahan appointed Paul Reitmeir to the Bethlehem Housing Authority effective until May 2006. Mr. Leeson and Mr. Mowrer sponsored Resolution 14,544 to confirm the appointment.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

9. ORDINANCES FOR FINAL PASSAGE

A. Bill No. 63 – 2004 – Amending Article 339 – Instituting Emergency and Municipal Services Tax

The Clerk read Bill No. 63 – 2004, Amending Article 339 – Instituting Emergency and Municipal Services Tax (EMST) - $52, on Final Reading. (Note: The EMST replaces the Occupational Privilege Tax (OPT) of $10.)

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, and Ms. Szabo, 6. Voting NAY: Mr. Schweder, 1. Bill No. 63 – 2004, hereafter to be known as Ordinance 4301, was declared adopted.

B. Bill No. 64 – 2004 – Zoning Ordinance Text Amendment – Establishing Article 1304.08 – RR Overlay – Township Line Road

The Clerk read Bill No. 64 – 2004, Zoning Ordinance Text Amendment – Establishing Article 1304.08 – RR Overlay – Township Line Road, on Final Reading.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. Bill No. 64 – 2004, hereafter to be known as Ordinance 4302, was declared adopted.

10. NEW ORDINANCES

None.

11. RESOLUTIONS

A. Certificate of Appropriateness – 535 Main Street

Mr. Arcelay and Mr. Leeson sponsored Resolution 14,545 which granted a Certificate of Appropriateness to repair and paint the exterior of the building and cap some window sills with aluminum at 535 Main Street.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

B. Certificate of Appropriateness – 518 Main Street

Mr. Leeson and Mr. Mowrer sponsored Resolution 14,546 which granted a Certificate of Appropriateness to install a two-sided sign and window and door graphics at 518 Main Street.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The Resolution passed.

C. Approving Easement Agreement – Dewire Estates Development – Municipal Golf Course

Mr. Donchez and Mr. Leeson sponsored Resolution 14,547 which authorized the execution of a Temporary Grading/Construction Easement and Permanent Storm Water Discharge Easement Agreement between James E. Dewire and Alice R. Dewire, Richard T. Kingston, Jr. and May Leslie Kingston, and the City of Bethlehem, to redirect the Dewire Estates storm water through the southwest corner of proposed Lot No. 3 of Dewire Estates, to be collected on the detention pond that would be constructed and maintained in the right side rough area of Hole Number 6 on the Bethlehem Municipal Golf Course, according to the terms and conditions of the agreement.

President Schweder asked for the background as to why the project is being done.

Charles Brown, Director of Parks and Public Property, recalled there was a project on the Municipal Golf Course several years ago whereby a detention pond was installed that empties into sixth fairway. There is presently a serious sinkhole at the site, and there have been sinkholes for the past three or four years. The plan is to take the water from the new development project into the existing catch basin and bring it back into the Golf Course at the low spot. The proposal was to drain the development area field into the Golf Course into a retention pond, pipe it, re-pipe the area where there is a sinkhole problem away from that, and isolate it. The offer to the City from the developer to do the project is $60,000.

President Schweder asked if it is correct that the property at the Golf Course is not in the City but in Hanover Township.

Attorney James Holzinger, representing the developers, said that is correct.

President Schweder inquired if there is any other solution with which the Township came forward for the water runoff.

Attorney Holzinger, responding no, explained that because of the topography in the area there are two alternatives. One is to bring the water out onto the Golf Course at the point where the developer’s land abuts the Course, or to allow it to flow downstream into the existing detention pond in the development to the South in which case that would aggravate the existing sinkhole problem on the Golf Course. Attorney Holzinger, advising what the developer tried to do initially was to retain the water on the developer’s land, noted that would have forced the water to come onto the Golf Course similar to the design downstream. As a result, the developer’s engineer came up with an alternate where the pond would be moved down onto the Golf Course North of the sinkhole problem, designed as a grass trap rather than a sand trap, it would not hold water, and it would be a sloping area with 3 to 1 slope or about 11% to 18% range. Then, instead of piping the water under the sixth fairway, a pipe would first be put in to the South into the sinkhole area, an inlet would be installed to collect water that flows off out of the other pond, and then pipe it under the sixth fairway across below the tee box on number five.

President Schweder queried whether there would be any fencing.

Mr. Brown responded that the fencing would go along the property line, and the retention pond would not have a fence around it since it is only three feet deep, a machine can go in and out of it, and one will be able to walk through it. However, fencing will be placed at the property line behind that property and the Golf Course.

Voting AYE: Mr. Arcelay, Mrs. Belinski, Mr. Donchez, Mr. Leeson, Mr. Mowrer, Ms. Szabo, and Mr. Schweder, 7. The motion passed.

12. NEW BUSINESS

Pension Board – City Council Liaison

Mr. Donchez advised that, as Chairman of the Finance Committee, he will be sending a memorandum to President Schweder requesting that a Member of Council be appointed as liaison to the Pension Boards, and noted he is unable to attend the Pension Board meetings due to his work schedule. Mr. Donchez expressed he thinks it is important to have a Council liaison because the Pension Bond has been issued. Since a Member of Council cannot be a voting member of the Pension Board according to the law, Mr. Donchez restated it is important to at least have a Council liaison to attend the Pension Board meetings, and report back to City Council on an as-needed basis.

Salaries – Elected Officials

Mr. Donchez, recalling that in the past the Business Administrator has traditionally sent to City Council a memorandum regarding the salaries for elected officials for the next four years, stated he will schedule a Finance Committee meeting probably the last week in January to set the salaries of Mayor, City Council, City Treasurer, and City Controller for the next four years. Mr. Donchez noted he wants to have the salaries ratified by City Council before the end of February. Mr. Donchez commented he would appreciate receiving any information for City Council by the last week in January.

Parking – City Hall and Church Street

Mr. Leeson pointed out there is a problem with inadequacy of parking at City Hall, and there is not enough parking for City Hall employees, parking is at a premium, there is little or no parking for the public, and it is very difficult for citizens when they want to come to City Hall to find a parking place. Mr. Leeson remarked that over the years the problem has only gotten worse. Observing that every Mayor going back to the 1980’s has informally acknowledged the existence of the problem, Mr. Leeson commented that collectively each indicated there was no easy solution to the problem with the exception of one possibility that was the Steelworkers’ Union Hall located to the East of City Hall. Mr. Leeson continued on to say if the building ever came on the market it was indicated that the City needed to look at the possibility of acquiring the building that would potentially address two issues, one being parking, and the second being an office space need in City Hall. Mr. Leeson communicated that on the one hand he was happy to read the good news about the potential for new development in the City on the Steelworkers’ Union Hall site, but on the other hand he was concerned to read that option was the only one really available from a long term planning perspective because the City cannot go to the West or North since it is residential and historic property. Mr. Leeson remarked the only option really was the Union Hall. Over the years, Mr. Leeson commented the various Administrations indicated they would defer action on the matter until such time that the Union Hall came on the market. Advising he received a letter indicating that apparently there is another party looking at purchasing the Steelworkers’ Union Hall property, Mr. Leeson said that would foreclose the City’s ability to solve the parking issue surrounding City Hall. Mr. Leeson, wondering what is the Administration’s position on the matter, asked whether the Administration supports the sale of Union Hall to the developer, and if so is there a backup plan to address parking.

Mayor Callahan, confirming it is a free market and the building is owned privately, observed that the owners will sell it to whoever they wish to sell it to and there is not a lot he can do as Mayor to prevent that. Mayor Callahan, communicating that he recognizes the problem of parking around center City and the Plaza, observed the parking situation has probably gotten worse since the City Hall garage was closed to visitors due to the events of September 11, 2001. Affirming there are City Hall employees who utilize the Union Hall parking lot as contract parking, Mayor Callahan said he would imagine a loss of parking there would exacerbate an already difficult situation. Mayor Callahan acknowledged that, as Mr. Leeson pointed out, there is both a concern for future space and for parking which he agreed is the bigger more short term need. Mayor Callahan, noting the property has not been rezoned or sold, and he has not yet seen the plan, said it is hard for him to be too supportive at this point not knowing exactly what the plans are. However, Mayor Callahan advised he did express an interest in developing some sort of a shared parking situation that would accommodate City Hall’s parking needs. Mayor Callahan observed that, preliminarily, the developer seemed willing to try to accommodate a solution that would meet their needs and the City’s needs for parking.

Mr. Leeson asked how many City employees currently park at Union Hall.

Charles Brown, Director of Parks and Public Property, replied about forty-five vehicles. He added that City employees pay $10 a month. Mr. Brown further informed Mr. Leeson there are approximately 120 parking spaces at Union Hall.

Mr. Leeson thought there should be an immediate assessment as to whether or not the City needs to move in the direction of talking to the Steelworkers about acquisition of the property. Mr. Leeson stated it is the City’s only option at this point for the reasons he has already expressed. Mr. Leeson observed that time is short.

Mr. Mowrer, recounting this has been a problem going back to the 1970’s, recalled there had been parking along the main throughway in front of the City Center on the South Side at that time since there was no other parking. Mr. Mowrer, saying he personally thinks the issue is something that City officials should be real serious about, thought that to have a lot of apartments at the site of Union Hall would take away from the City Center itself. Mr. Mowrer, strongly suggesting that the City look seriously at the opportunity, commented this is the kind of thing that could be paid for in a bond issue. He continued on to say if the City does not take advantage of it now an incredible opportunity might be lost.

Mr. Leeson stated, as difficult as it is sometimes to borrow money he would have to say when it comes to physical plant improvements and something like this where there is a definite need on which everybody agrees, this is the kind of thing that, although the City is certainly short on spare cash, would be suited for a bond issue borrowing. Affirming it would be a physical improvement, Mr. Leeson denoted it would certainly last and serve the interests of City Hall employees, the neighborhood, and the citizens in terms of access to City Hall. Mr. Leeson encouraged the Administration to look at the matter short term.

Ms. Szabo thought that most Members are probably concerned about the issue. Ms. Szabo recounted that through many years there have been discussions about using the Union Hall building for the City’s Police Department and Fire Department. She continued on to say that Mr. Brown has made some very convincing statements and explanations over the years about the building. Ms. Szabo, stressing that she thinks parking is not the only problem, asserted the real problem besides parking is lack of space and the City cannot afford to buy land and build a brand new City Hall. Consequently, Ms. Szabo pointed out it would be much cheaper to expand at Union Hall. Turning to bake sales, Ms. Szabo recalled that City Hall and the Library would not be there if it would not be for bake sales and affirmed that her Girl Scout Troop sold iced tea at a bus stop at Fourth and Hayes Streets. Ms. Szabo observed it is being said that the sale of the building is not yet positive.

Mayor Callahan, affirming that although he talked to the prospective developers about their potential interest in the property, said the notice to City Council about the request for rezoning came as a bit of a surprise to him.

Ms. Szabo wondered how the Steelworkers’ Union Hall property came to be zoned Institutional.

Tony Hanna, Director of Community and Economic Development, thought it was part of the continuation of the City Center complex. He added that a large swatch of property was rezoned for Institutional development when the City Center and Library were created.

President Schweder noted that Nisky Hill Cemetery is also zoned Institutional.

Mayor Callahan thought there has been some communication between Council and the developer and said he has not been privy to a lot of that conversation.

Ms. Szabo said she thinks City officials should look into the matter very seriously.

Mrs. Belinski expressed her agreement that the matter is extremely important, and said the City cannot lose that building. Observing that City Hall needs to expand and the Police are running out of space, Mrs. Belinski acknowledged it would be great to relocate the Police and Fire Departments to the Union Hall building. Adding that the City needs the parking, Mrs. Belinski expressed the hope that the Steelworkers’ Union realizes the building is vital to the City. Mrs. Belinski stressed she would not want to see high density apartments or townhouses there because she does not think that is appropriate. Mrs. Belinski stated she thinks the City should very seriously look at the matter and see what can be done to appeal to the Steelworkers’ Union to please find some way that the City could get the property.

Ms. Szabo commented that appeals should be made to Mr. Perrucci, the developer, because he has been great and is a very understanding person, and it is not known how far the land sale has advanced.

Mayor Callahan, noting that he will speak to Mr. Brown about the matter, clarified it is not just the acquisition costs but what also must be considered is the ongoing operating cost of the building and renovation costs. Mayor Callahan affirmed there is a significant amount of cost involved to consider in moving forward.

Mrs. Belinski wondered whether the City could acquire the building and rent it out to get the money needed to keep the building going until the City can afford to do the major renovations in the future to convert the building into the headquarters for the Police and Fire Departments. Mrs. Belinski stressed “we need to get the property.”

Mayor Callahan, acknowledging there is some potential there and it is something to look at, thought if there was a way to make money doing that then perhaps the Steelworkers would be doing that themselves.

Ms. Szabo remarked “I think what we’re all saying is sit down and talk.”

Mrs. Belinski, observing that Mr. Perrucci was very understanding about what he would do at the 120 acres of the former Bethlehem Steel Corporation property and he wants to do the best for the City, said this is also looking at what is the best for the City.

President Schweder, recalling he had a discussion with then Mayor Delgrosso a year ago, noted Mr. Brown had looked into acquisition of the property at that time. However, it was indicated that the City can only pay what is the assessed value of the property by law, and the requested price of the Steelworkers’ Local was more than that. Consequently, it precluded the City from purchasing the building. President Schweder inquired what is the assessed value.

Mr. Brown responded he thought the assessed value was $1.3 million.

President Schweder thought it would be helpful, if there were discussions last year, that Council review those matters.

Mr. Brown advised the City sent letters to Mr. Green of the Steelworkers’ Union indicating that if the building went up for sale the City would be interested in purchasing the building, but an offer was never made. Mr. Brown commented he might have a letter saying they agreed to come to the City first.

Mr. Mowrer, stating he wants to make sure the Administration understands what Council wants, said his understanding of what Council wants is some kind of a study about this facility, whether or not the City can buy it, and what the City might use it for. Mr. Mowrer added it is too expensive to take down the whole building and then rebuild it when funds are available later on. Mr. Mowrer requested that the Administration come up with some type of study and recommendation of what the City can do.

Mayor Callahan said, if that is the case, in recognition of this evening’s scheduling of the Public Hearing on February 15, he thinks it would be difficult to conduct a real study and consider the rezoning at the very same time. Mayor Callahan observed there might be some wish on the part of Council to reschedule the Public Hearing.

President Schweder suggested that the Public Hearing date be left as it stands now, and the issue will be revisited in two weeks and a determination made based on learning what has been done in the past. He continued on to say if it necessitates changing the Public Hearing date at that time then Council will do so.

13. COURTESY OF THE FLOOR
Steelworkers’ Union Building (Van Bittner Hall) – Acquisition by City of Bethlehem

William Scheirer, 1890 Eaton Avenue, saying that once again the City of Bethlehem is about to make a decision wherein short term savings may be made in a tradeoff with much greater long term costs, noted he is referring to Van Bittner Hall, that is the Steelworkers’ Union Building, the purchase of which may be foregone because the money is not there for purchase and renovation. He likened the matter to the City’s biannual bond issues for which the City pays $2.3 million at 6 percent interest for a $1.5 million bond. Stressing that the Police Department is cramped, Mr. Scheirer observed that eventually new quarters will be needed. Mr. Scheirer questioned if Van Bittner Hall is not reserved for that purpose where will the Police Department find a central location. He continued on to point out that Van Bittner Hall is a serviceable building that with modification could serve as a home for the Police Department for many years to come. Mr. Scheirer thought that borrowing for a new Police Department headquarters would rate four stars because the expenditure would be both timely and unusual. He observed it would not be essential to renovate the building now, and it could be acquired and rented out to maintain it until funds were available for renovation. Mr. Scheirer, expressing the realization that there may be a desire to accommodate Mr. Perrucci because he is developing Bethlehem Works, questioned whether the City should wait to see concrete results before accommodating him. Mr. Scheirer expressed it would be ironic if the City permitted townhouses at the Steelworkers’ Union building site that were historically accurate and that occupy the same land as the historically authentic houses that were demolished in the past. Mr. Scheirer expressed the hope that the City would have some powers of eminent domain and if so said he is sure they would be sufficient to accomplish the acquisition of Van Bittner Hall.

City Hall – Parking Policy

Dana Grubb, 2420 Henderson Place, said he wants to remind the Administration and Council that the City has a policy in place that was developed a few years ago for those who are assigned City vehicles. Mr. Grubb, noting it has been recognized for some time that parking has been a problem, continued on to say when the City Hall parking garage was closed to visitors there are a number of City employees who park in front of City Hall instead of in the City Hall garage and the public does not have the option of parking in the City Hall garage. Mr. Grubb stated a policy was developed for City employees who have City vehicles to park in the City Hall garage when they are in City Hall so that parking is available in front of and across from City Hall for the public. Mr. Grubb thought that former Mayor Delgrosso had made arrangements to provide parking for City vehicles further up on the North side of Church Street. Mr. Grubb said there are a few City employees who are violating the parking policy, and nothing is being done about it.

Shuttle Service - City Hall

Santiago Rivera, 1349 Lynn Avenue, noted he attended First Night in Bethlehem on New Year’s Eve and had a wonderful time. Mr. Rivera continued on to say he found it very convenient to travel that evening on the shuttle service that was offered. Mr. Rivera suggested that perhaps a shuttle service could be added that would tie in all the parking areas with City Hall. He exemplified that people who take the LANTA bus to Guetter Street do not have a way to get to City Hall, and a shuttle service would be convenient for them. Mr. Rivera observed that a shuttle service might be of interest to City employees as well. Mr. Rivera thought that a dollar or two could be charged for the service that would be affordable for most people.

Steelworkers’ Union Building (Van Bittner Hall) – Acquisition by City of Bethlehem

Dean Bruch, 625 Hawthorne Road, asked how the property was initially acquired to build Van Bittner Hall. Mr. Bruch thought some past history might be helpful to the City in the interest of acquiring the property.

Mr. Bruch later questioned whether the current owners of the building pay taxes. Mayor Callahan informed Mr. Bruch that if the City were to buy the building the City would lose the tax dollars it receives. Mr. Bruch asked if the City were to rent the building to offset expenses is that allowable.

Tony Hanna, Director of Community and Economic Development, informed Mr. Bruch that the determination on whether or not real estate taxes are paid is determined by the occupancy rather than ownership. Mr. Hanna continued on to explain if the City were to own the building, not occupy it, and rent it to doctors, for example, then real estate taxes would be paid. Mr. Hanna affirmed to Mr. Bruch that rental income could be used to help offset the taxes or the bond payments.

Mr. Leeson, observing Mr. Bruch brings up a good legal issue, noted that perhaps the property was in the chain of public title at one time, possibly through the Redevelopment Authority. Mr. Leeson stated that one or more government agencies condemned property in the area in order to remove the housing for construction of the City Hall complex. Consequently, Mr. Leeson thought there may be something in the chain of title for that property that may be relevant to the issue of public ownership and rights. Mr. Leeson asked that the Law Bureau check the title and advise Council what the title discloses.

Pension Bond

Mr. Bruch asked whether anyone looked into the people who took money who are being punished and whether the City could perhaps get some of that punishment money. Mr. Bruch continued on to note he would appreciate knowing who the bond fund people were who took care of the fund and lost the money.

14. ADJOURNMENT
The meeting was adjourned at 8:25 p.m.