MAYOR JOE’S PUBLIC FORUMAugust 13, 2013

SETTING THE TONE! That was Gnarls Barkley with his hit song

“Crazy” The lyrics include:

“I remember when I lost my mind” “Does that make me CRAZY”

Hopefully after tonight’s presentation you won’t think that he wrote this song about me

FYI – the Forum was standing room only and I was preparing for a protest of the naysayers – this never happened.

So please excuse all of the “Slovak” philosophy

PHILOSOPHY TO START THE DAY “If you’re not moving forward,

you’re losing ground.” ~ attributed to many

While change is not always welcome or viewed as positive initially, I hope to prove that if it is done properly, it will benefit the community

Here’s a local example:

PHILOSOPHY TO START THE DAY “That’s their interpretation of

beautifying the lakefront. I’ve told a lot of people I don’t understand how you take a baseball field with grass and make it a parking lot and that beautifies the area.”~ WHS Baseball Coach Kevin Lenz – NWI Times

That of course was before he had a chance to see or play at Oil City Stadium – The quote obviously still serves as inspiration for me.

PHILOSOPHY TO START THE DAY “One way to keep momentum

going is to have constantly greater goals” ~ Michael Korda, author

I feel we have momentum, now we need to continue to push the envelope

PHILOSOPHY TO START THE DAY “It doesn’t matter how slowly you

go – so long as you do not stop.” ~ Confucius

I had hoped by sharing that quote with you today, that you would forgive me for how long it takes to actually institute change!

PHILOSOPHY TO START THE DAY Insanity: doing the same thing over and

over again and expecting different results.~ Albert Einstein

As you’ll hear today, I may not have all of the answers or be 100% correct in every one of my assumptions, but it’s time to take some risks and change how we do certain things

PHILOSOPHY TO START THE DAY Mayor Joe’s Definition of “Controversial”

(the word will appear several times in the presentation) Something can be viewed as controversial if it

can impact a person’s: Employment Salary or Income (Cost $$) Home or property Quality of Life Philosophical believes Or any Change that does not have unanimous

support

AGENDA Full Slate of Interesting – Controversial Topics

I usually thoroughly enjoy these Forums But… this will be a tough presentation for me

I am in the process of making several difficult decisions that impact a lot of people…and that’s not easy

For those of you who have not attended one of my past Forums, here’s a quick overview:

I’ll run through my presentation as quickly as possible to stay on schedule – probably 45 minutes or so

I’d ask that you please hold your questions to the end At the end of the presentation, I’ll stay as long as needed

to answer your questions

AGENDA Funding Plan Overview WCC – YMCA Project Stadium District Plan New Hotel Concept Water & Sewer rates Residential Matching Assistance (Grants) Quiet Zone (Whistle Ban) Miscellaneous Projects

FUNDING PLAN OVERVIEW Important background info for today’s

presentation Extremely unusual & complex financial

situation Our Assessed Valuation (Taxable Property) is

expected to grow significantly in coming years The growth will be short lived and then drop

back down to slightly more than it is today Goal – Capture the maximum opportunity

for City

FUNDING PLAN OVERVIEW New growth will be captured in our TIF District:

Allows us to borrow to fund capital improvement projects

While there is not enough time to discuss the specifics at a Public Forum, this is the strategy that provides the biggest bang for our buck

Important Factors: We don’t yet know all the financial details Money must be spent on Projects All debt will be repaid with Industrial tax

revenue

FUNDING PLAN OVERVIEW With that said, we are hoping that many of

the projects in our plan can be funded in the short term, versus waiting to pay as we go

Because the Funds are limited, my hardest task is to identify the projects that provide the biggest benefit to the community

This was a cautious explanation suitable for public consumption

FUNDING PLAN I thought a brief review of the Funding Plan

would clarify: That there will be Capital Funds available Why we will take on new debt – (NWI Times) That none of the debt repayment will be paid by the

residents I was expecting to formally announce a few of

these new projects today, but our final Financial Analysis was not completed in time. So until the money is in the bank, it’s prudent for me

to take the cautious approach

WCC OPPORTUNITY History

I know many of us “Old-timers” grew up in this building

It is an important part of our community and our past history

I’ve fought hard to maintain the building and invest in improvements over the years

But, it’s a huge financial drain on the City’s budget

WCC OPPORTUNITY Background

$750,000 in (WCC only) annual operating expenses $250,000 in (WCC only) annual revenue $500,000 annual loss or subsidy None of the expected Capital $$ can be used to

offset these operating costs This loss was much worse in previous years, but

improvements made have reduced the burden New windows Energy efficiency improvements Staffing changes Increased revenue

WCC OPPORTUNITY Background

Why is the subsidy so large? Inherited building – but no budget to support it Laws prevent or limit us from making a profit Always more difficult for a public entity to increase

costs or reduce the workforce Always had surplus funds to funnel to operation

Tax Caps have changed that dynamic Maximus “Good Government” Study

(2005/2006) Recommended the sale of the building

WCC OPPORTUNITY Decided to explore all options before divesting property City Actions to Date

Internal Task Force reviews Commissioned an IU-SPEA Study to review the operation and

make recommendations Study indicated the best “Financial” solution was to privatize the

building as a Full-Service Heath Club Makes sense – Gyms, Pool, Track, Fitness area, etc.

Issues with this solution included: Displaced Youth/Seniors - Cost associated with the displacement Difficult to return to current operation if project failed

Reviewed and studied other options including: Streamlined City Operation Privatization – non-Health Club operation Sale of Building

WCC OPPORTUNITY Ideal Solution would:

Continue to provide community minded programming similar to today’s operation

Continue to serve all age groups of the community Allow the City to maintain ownership of the

building Reduce or eliminate the City’s $500K subsidy Allow for a workable “Exit Strategy”

The only option that provided all of these benefits was the YMCA

YMCA PROPOSAL Lease the building for $1 per year YMCA to pay all operating costs

associated with their operation including: Staffing Utilities Maintenance

YMCA to have complete control of the operation

Set their own rates

YMCA PROPOSAL Benefits include:

Immediate savings of the $500K annual subsidy Continued and Improved Community Minded

Programming and Facilities for all ages New operation will be much improved over today

YMCA Expertise Renovations New equipment Additional Programming Childcare

YMCA PROPOSAL Benefits include:

Continued availability of facility for: Emergency Shelter Public Events

Building remains under City Control and Ownership

We will essentially act as the landlord and maintain the primary structural components of the building

Only people who choose to use the Facility will pay

YMCA PROPOSAL Important Factors:

Displaced employees will have multiple options Bid/Transfer into open positions Early retirement Interview with the YMCA Severance to all, including part-time employees

City will invest to renovate the lower level and complete the lobby restoration as planned

This would have occurred regardless of the option chosen

All donations to the lobby renovation will be used as intended

YMCA PROPOSAL Important Factors:

At least 4 of the 12 bowling lanes will be removed

Option to remove all 12 lanes is being reviewed

Cost – Funding dependent Bowling League options for this season

limited

YMCA PROPOSAL Important Factors:

YMCA is an extremely reputable organization

They have funding avenues simply not available to the City

They already have a proven track record in NWI

YMCA Timetable

Signed MOU in place Finalize YMCA Lease ASAP Employee bidding and transfers by year end Close building on January 1, 2014 for construction Estimated savings of closing the building for

construction ranges between $100,000 - $200,000 Construction January – June Reopen under YMCA control in June-July If we cannot agree to terms with the YMCA by the end

of construction, we will operate the renovated facility

YMCA This is simply the best business

decision Not everyone will agree with it, but we

can’t continue operating in the deep red

STADIUM DISTRICT PLAN Now for controversial project #2 I hope you had a chance to review the

graphic to get a feel for what I am proposing

STADIUM DISTRICT PLAN This project will:

Provide the needed infrastructure for new BP investment

Provide the needed attractions to create a destination place

Provide new “diverse” residential opportunities Provide multiple new commercial opportunities Serve as the ‘Gateway’ into the Lakefront Park

STADIUM DISTRICT PLAN While there are still some moving parts in

the Plan, here are some of the highlights: The project area includes all properties east of

the Schrage Avenue east alley and north of 121st

All of Old Standard Avenue All of Old Center Street All of 119th Street All of Front Street

Over 75 properties will need to be acquired(Additional comments on this topic later)

STADIUM DISTRICT PLAN The Proposed Plan (market driven) includes:

A variety of New Residential units New commercial/multi-use buildings Senior Citizen market-rate apartments Multiple new restaurants and eateries Entertainment venues – Museums – Sports Facilities An allotted area for new BP development Road closures and new roadways Oil City Stadium additions 100’s of new parking spaces

STADIUM DISTRICT PLAN Moving Parts - Entertainment Venues

Museums Whiting-Robertsdale Museum (Refinery Component) Chicago Baseball Museum

Strong commitment to lease the 2nd wing if we build our museum National Mascot Hall of Fame

Moved from a Pipe Dream to a reasonable chance Meeting with their Team in Whiting in September

Sports Venues Expansion of Oil City Stadium to accommodate Minor League Team Currently reviewing a proposal to include an Ice Arena to

accommodate a Minor League Hockey Team Children’s Activity Center option

STADIUM DISTRICT PLAN Market Based Discussion

Heavy developer interest Financing projects in Whiting is an issue

No development history No market data to support condo sales prices No history to support high rents for apartments Glut of condos in Chicago market - forcing high pre-sell % “Village” Project demise 1500 Block 119th Street Project will hopefully open the door

Almost all developers utilize the financial markets Could determine final product mix

STADIUM DISTRICT PLAN Acquisition of Property

I am well aware that acquiring someone property is not always a welcome event

We will be compassionate and take great strides in making sure the transaction is fair

If a property owner has been an asset to the City, we will bend over backwards to accommodate them

Finding new homes/apartments Senior Building construction Trading, etc.

STADIUM DISTRICT PLAN Acquisition of Property

BUT……… If a property owner has neglected their

property for decades, I will use every tool in my bag to acquire their property at the lowest possible cost

I won’t allow bad absentee landlords or property owners to impede our growth

NEW HOTEL CONCEPT Moving on to controversial project #3 You have heard me talk about this in the past,

but if we want to grow and increase our tax base, a local hotel is a critical component

As I stated in the past, such a hotel needs to fit our community, not a hotel developer’s plan

If it’s done right, a new hotel will not only provide a needed resource, but significantly benefit our tax base

NEW HOTEL CONCEPT We have been in discussions for months about possible

locations, and the optimum location always points back to the Park

Vetting the location was the focus of this segment of the presentation. We have had discussions with numerous hotel developers but a deal is far from done

The most acceptable location in the Park is depicted on the layout on the table

This concept is a $20M investment – this is the proposal that is most acceptable at this point (Hyatt Place)

The back of house operations would utilize the back side of the park

NEW HOTEL CONCEPT In the coming months, we will be

discussing the project with multiple developers

At this point in time, I’m supporting this location and will work to move the project further ahead so we could fine tune the details

Public Process

WATER & SEWER RATES Now for controversial topic #4 To continue improving our water and sewer

infrastructure, we will need to raise additional revenue Example:

A new water line is needed on 119th Street between Schrage & New York

Estimated Price Tag - $1 million Annual Gross Water Department revenue - $550,000

Rates have been flat for 13 years Because we have made considerable operational changes

to improve our efficiency I will request a small $3 to $5 monthly increase soon

RESIDENTIAL MATCHING GRANTS Somewhat controversial topic #5 We’ve been flooded with calls asking why the

matching residential grants are not available The answer is:

We are attempting to allocate funds to resurrect the program for ONE more round of grants

Absolutely no guarantees, but the program will not be available any sooner than spring of 2014

RESIDENTIAL MATCHING GRANTS Important Points

Must help a broad based portion of the community Must focus on areas in need of development Need a large pot to be able to distribute fairly Poor use of Tax dollars, need special 1-time funds Special program – cannot fund indefinitely Commercial Investment critical to community

Will continue limited commercial grants ~$50,000 total Impact shared across entire community Stirs economic development to improve tax base

Detailed Strategy available

QUIET ZONE This is an important factor for future development No Controversy here

Everyone agrees that this is a project worth pursuing Background

3 independent railroads 80+ trains a day Low vehicular traffic counts No requirement for railroads to improve technology like other

communities We have taken the necessary steps up to the point of

committing the funds $400,000 per crossing x 6 = $2.4 million

QUIET ZONE There is valid increased public concern City Council has identified the project as

one of their top priorities It all comes down to funding Barring an unforeseen catastrophe with

our Funding Plan– this project will be funded

Even after funding is allocated, the project will not happen overnight

MISCELLANEOUS NEWS/ISSUES Lakefront Update

End of September – Current Phase complete November – INDOT Phase begins

Connecting trails over tracks Entry way beautification Existing pathways redone

Event structure – Gazebo - Formal Garden Design underway with completion next year

Finished Landscaping Spring/summer

MISCELLANEOUS NEWS/ISSUES Lakefront Update

Whihala Parking Improvements Next summer

Dog Beach 2014 start – Late Fall – Early 2015 completion

Whihala Lighting Late 2014 into 2015

Administration Building – Boat Club 2015?

MISCELLANEOUS NEWS/ISSUES Lakefront Update

Gun Club Restaurant Conceptual Drawing – Vavrek Architects Start construction January, 2014 Completion – Fall? Link to conceptual drawing included in email

Beach Parking Reviewing sign policy – 1 sign at each entrance New Parking Enforcement Crew beginning next

year

MISCELLANEOUS NEWS/ISSUES Atchison Avenue Parking (St. John)

Nearing Completion Joint Project – City of Whiting & Parish Increased parking – allow for new

development Dog Park

Whiting Dog Beach – Hammond Dog Park Little League Improvements

T-Ball Field – by next summer?

MISCELLANEOUS NEWS/ISSUES Indianapolis Boulevard

May bid letting June – November construction Includes:

Paving, Lighting, Turn lanes, Sidewalks, Trees, Sewer lining, Hydrant improvement

Partnership with: INDOT and Hammond

$11M project to reconstruct our main highway

MISCELLANEOUS NEWS/ISSUES 117th Street (Cleveland to tracks)

Bond fund dependent Will be ready for bid this fall Includes:

Paving, Sidewalks, Lighting, Sewer, Water, Oliver Street intersection improvements, Brick restoration at Park entry, Bike Path connections

Hoping for January letting – 2014 construction

MISCELLANEOUS NEWS/ISSUES Parking Projects

1500 Block 119th Street Building construction dependent Spring 2014?

Schrage/White Oak/Ohio (Whiting Baptist Church)

Acquisition Dependent Church agreement not finalized Spring 2014?

St. Mary’s Church discussion – School & Parking

MISCELLANEOUS NEWS/ISSUES ADA Compliance

Sidewalk ramps – crosswalks Goal to be 100% compliant by 2015

Playground Analysis – Upgrades 2014-2015

Illiana Hotel City has taken action to take ownership of

the property via the tax sale process Stay tuned

THE END Q&A’s One stipulation – If you ask a question,

please let me know if you live in Whiting or in Robertsdale