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HomeMy WebLinkAbout02-03-1998 Meeting I I I REAL ESTATE MEETING COMMITTEE ROOM - February 3, 1998 PRESENT: Hons. Larry Sconyers, Mayor; Handy, Beard, Kuhlke, Todd, Shepard, Bridges, Powell, H. Brigham, J. Brigham, Commissioners; Randy Oliver, Administrator; Jim Wall, Attorney; Lena Bonner, Clerk of Commission. ABSENT: Hon. W. H. Mays, III, Commissioner. Mr. Wall: We've been asked to assist insofar as putting in a new sewer line for an expansion of an industry along 15 Lover's Lane and improving the water main size and pressure to the property. They're proposing an additional $5 million dollar investment in new equipment and machinery and doubling the size of the building. Mr". Oliver: And about 40 new employees. Mr. Wall: We wanted to see if you were receptive to our doing that. Mr. Oliver: They have asked for us to put in the water and sewer which Mr. Hicks estimates at $150,000. We've indicated that we're willing to go to $100,000 and that seems to be agreeable. This would come from the Utilities budget and if you're agreeable, we would present this at the next Committee meeting for Engineering Services. Payback is greater than three years and that's why we wanted the $50,000 based on their current water usage but we also believe that it will provide some benefits down in that general area. Mr. Kuhlke: The $100,000 is more than three years? Mr. Oliver: Yes, it's still a little more than three years but we still think with the $5 million and new jobs it's a good economic incentive. Mr. Todd: How much easement or right-of-way are we going to need? Mr. Oliver: I can't answer that. It's down off of Lover's Lane next to the CSX Railroad. Mr. Todd: It's my understanding this will come back to Committee? Mr. Oliver: Yes, sir. We will try to address the right-of- way issue but we're not totally on the right-of-way. Mr. Kuhlke: Is this a done deal? Mr. Oliver: Yes, and I need to make sure they make their public announcement before I get it to Committee and we'll do that. I just want to make sure everybody is comfortable with this before we commit to this. We also have a request from I Richmond Bonded Warehouse to put another warehouse down there where they're currently located on Prep Phillips Drive. They want another 200 by 450 feet. Before we get into the numbers of what we ought to charge them, you need to make a policy decision. Jim and I need to look at the leases because there are some inconsistencies. They have a rail spur there and the key on this whole thing is I have talked with Rick Toole of the Port Authority and he indicates they won't be there for at least 20 years, if ever. He doesn't see that as an issue. I think they want the rail side but if that other building they have down there ever goes away, it's my understanding from Mr. Patty we can eliminate the train spur that runs from the Museum down to there so there's some benefit in waiting it out. The question is what do we want to do with it right now. It's a policy decision as to what you think the highest and best use for that property may be both now and into the future and I wanted to know if you want me to proceed with trying to work up some numbers. Mr. Kuhlke: They've been down there for a number of years and I don't know if they even use rail anymore. Do you know? Mr. Oliver: I don't know. Mr. Patty told me they had one or two cars a week that came into there and I don't know if those numbers are current or not. Mr. Anderson is out of town but I I can contact him. The ideal thing would be to work out a situation where they rented all or part of the Ports building and refurbish whatever part they were going to do because he's going to put some money into that. But that wouldn't work if he was going to use the rail service. Mr. Kuhlke: Does Modern Welding use rails? Mr. Oliver: George told me he didn't think they did. I can check on that. Mr. Todd: and greater use handling inside I would have two concerns. One would be a better for it and the other would be what they are the Levee, such as chemicals, etc. Mr. Shepard: I'd like to know about the rails, too. Mr. Kuhlke: We can't do much until you get all the information. Mr. Oliver: Let me get all the information together for the next time as it relates to the rails and the leases. Mr. Todd: We also need to know what properties we own and who we're leasing to. I've been here two years and there are things I don't know anything about. I I I I ADJOURNMENT: was adjourned. NWM There being no further business, the meeting Lena J. Bonner Clerk of Commission