8/13/13

Are Guilford County Commissioners helping Greensboro's City Council avoid a referendum on the GPAC?

Mayor Perkins stated this was the time for the Performing Arts Center Task Force Update; and deferred to City Manager Roth to inform the public of the process that Council would be following on the item.

City Attorney Shah-Khan explained that Council could discuss the item if it wished however Council had the right to restrict additional comment.

Councilmember Wade requested that Council discuss whether the item would go on a referendum in November; explained she would like to participate in the discussion tonight; that she knew of four Councilmembers that would like to discuss placement of the item on a referendum; outlined the original plan for the Performing Arts Center; commended the Task Force’s work; and voiced concern for the amount of money that would be spent on the facility.

Councilmember Wade made a motion that Council discuss whether or not the item should be placed on a referendum.

The motion was seconded by Councilmember Abuzuaiter.

Councilmember Wade made a motion that after Council heard the update that she would like for them to consider whether the Greensboro Performing Arts Center would be placed on the ballot in November without a special election for it and let the people decide whether they wanted to move forward with this particular item or not, and not hide it in transportation bonds or parks and recreation bonds and let it stand alone on the ballot.

Councilmember Wade added that it was her understanding from the very beginning that it was going to be a volunteer group that brought this back to Council; and that Council would decide whether to put it on the ballot as
a referendum to let the voters vote on it.

Councilmember Vaughan referenced that since the item was placed under the General Business Agenda it should follow the process used for business agenda items; ...stated there were still a few questions; made reference to the emails regarding the type of bonds utilized; requested an explanation of the impact a limited obligation bond could have on the tax rate...

City Manager Roth stated that ...the general obligation bond where the payment of the debt would come from property taxpayers versus the limited obligation bond option which would come from property taxpayers as well as users of the facility when in fact, the way the financing was currently structured in terms of being able to pay for the City’s $40 million, the City would need to use taxpayer funds as well as user fees and other revenue sources that would be generated as part of the project.

Councilmember Vaughan confirmed that that was a very important distinction that had to be made; ...that the message was that there would be no impact on the tax rate; and that the City could not guarantee that the project would not have an impact on the tax rate.

...Councilmember Vaughan read a quote from the University of Chicago Report which referenced that PACs on average ran 82% greater than the original budget estimate; asked for confirmation that the $60 million was a
good number; and if AMS was comfortable with the seven percent contingency.

...Councilmember Abuzuaiter asked where the funding for the proposed pavilion would come from.

Councilmember Wade asked ...if Guilford County had agreed to provide $10 million out of the hotel/motel tax if the private financing did not come through; who would be on the hook if the financing did not come through; and reiterated the importance of having citizens vote on the matter if we were so sure they were in support of this.

...Ellen Sheridan, 1804 Province Drive, urged Council to enhance the amenities the city was offering; voiced importance in paving the way for the future; need to generate the arts; the need to become a first rate city;

Councilmember Wade made a motion to put a referendum on the November ballot and make sure that we designate it was for the Greensboro performing arts center; I don’t know the amount of money, it keeps changing but it is hard not to promise the public when this process started, that they would have a chance to have this on a referendum; ...then if Council felt the need to move forward with a performing arts center, then they would have an opportunity to vote on this on the ballot; Councilmember Wade continued that she thought Council promised that to the people, and we need to deliver on that promise. ...people deserve to weigh in on it, because ultimately, whatever happens, the people are going to be left paying the bill if everybody else does not come through with the funding. If people have to put in $10 million or $70 million, they still deserve the right and we promised them that in the beginning.

That is my motion and it was seconded by Councilmember Abuzuaiter.

The motion was adopted on the following roll call vote:

Ayes: Abuzuaiter, Johnson, Kee, Matheny, Perkins, Vaughan and Wade.

Noes: Bellamy-Small and Hoffmann.

http://greensboro.granicus.com/DocumentViewer.php?file=greensboro_26f92dc578fc896435f2f117f872d989.pdf&view=1

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