DRAFT MINUTES TOWN OF GILBERT REDEVELOPMENT COMMISSION REGULAR MEETING

DECEMBER 21, 2006, 6:30 PM.

HERITAGE ANNEX BUILDING
119 N. GILBERT ROAD
GILBERT, ARIZONA

COMMISSION PRESENT: Chairman Taylor, Vice Chairman Valentine, Commissioner Iacobazzi, and Commissioner Fresquez

COMMISSION ABSENT: Commissioner Barlow

STAFF PRESENT: Business Development Manager Greg Tilque, Council Liaison Don Skousen, Senior Planner Tom Veljic, Community Development Specialist Carl Harris-Morgan, Community Development Assistant Sandra Simmons and Administrative Assistant Elizabeth Stupski

OTHERS PRESENT: Mario Mangiamele, Gary Brennan (Prehab of Arizona), Carol Lopinski (Child Crisis Center of the East Valley), Tim Becker (Nelson Phoenix, L.L.C.), Shane McCormick (Commercial Properties), Leroy Breinholt (Commercial Properties), Brian Martin (Sonoran Capital), Todd Brundrett (Norwood Furniture), Michael Savoie (GrainBelt Grillhouse)
Kathy Langdon (Gilbert Chamber of Commerce)

ROLL CALL
Roll was called and a quorum was declared.

COMMUNICATION FROM CITIZENS
Chairman Taylor opened the floor to the public for any comments or communications on items not on the agenda. There were no communications from citizens.

3. Minutes-Approve the Regular meeting minutes of November 16, 2006 and Retreat of November 11, 2006
A MOTION was made by Commissioner Iacobazzi, seconded by Commissioner Fresquez, to accept the minutes of the regular meeting of November 16, 2006 as written. Voice vote carried 4-0.

A MOTION was made by Commissioner Fresquez, seconded by Commissioner Iacobazzi, to accept the minutes of the retreat of November 11, 2006 as written.

Chairman Taylor had a question on page 5, second last paragraph. His recollection is that a specialist would come in during the master plan process. He would like the sentence changed to: Most Commissioners agreed that a specialist could come in during the master plan process to get feedback as to whether Gilbert was heading in the right direction.

An AMENDED MOTION was made by Commissioner Fresquez, seconded by Commissioner Iacobazzi, to accept the minutes of the retreat of November 11, 2006 with the correction on page 5. Voice vote carried 4-0.

PUBLIC HEARING
4. FY 2007/08 Community Development Block Grant and HOME Investment Partnership Funding Priorities
Chairman Taylor opened the public hearing on FY 2007/08 Community Development Block Grant and HOME investment Partnership Funding Priorities.

Community Development Assistant Simmons indicated the first step in the application process for CDBG and HOME funds is setting funding priorities. The priorities are then used by staff and the Commission to evaluate applications and then make a recommendation to the Town Council. She gave a general schedule of when applications would be available and due and when the Commission would allocate funds.
• Applications to be available in January
• Applications due by the end of January
• Recommendation to the Council on the allocation of funds by Commission in February

Contents of memo include:
• Staff recommended priorities for CDBG and HOME funds for FY 2007/08
• Summary of both CDBG and HOME programs to date, allocation, balance and status of the projects

Community Development Assistant Simmons indicated federal funding for FY 2007/08 has not been appropriated by Congress. An estimated amount of funding expected for FY 2007/08 in CDBG is $660,000 (similar to FY2006/07 allocation) and $190,000 in HOME funds. Gilbert also expects to receive $4,000 in American Dream Downpayment Initiative funds. These funds can only be used to provide downpayment assistance.

Staff FY 2007/08 Priorities recommendation:
• Up to 70% for Housing (Sonoratown Major Housing Rehabilitation, Emergency and Minor Repair/ Handicapped Accessibility)
• Up to 15% for Public Services (Basic Food and Shelter Services)
• Up to 20% for Program Administration
• No priorities recommended for HOME programs (any eligible activity)

It was mentioned that Gilbert proposes to use the maximum funding allowed by HUD for Public Service and Program Administration.

Community Development Assistant Simmons mentioned that notices were sent to interested organizations who might be applying for CDBG/HOME funds. She received a comment from Sandra Nosek, RN who would like to see more resources for children with behavioral disorders, more enforced and regulated rules for Group Homes caring for our elderly and Hospice Houses within the Gilbert area.

Community Development Specialist Simmons indicated that the Housing Program staff reviewed needs assessment information and solicited community input on current perspectives on community needs. Sources included the Police Department Counseling program, Gilbert CAN and others. They identified the following priority needs:
• Information and referral services to increase awareness and access to services
• Counseling and support services
• Programs for Children and Youth
• Basic Needs (food, clothing, shelter, medical care, employment services)
• Caregiver support
• Transportation Assistance

Commissioner Iacobazzi had a question as to why no priorities were listed for HOME funds. Community Development Assistant Simmons responded that Gilbert would entertain and consider any proposal as long as it meets one of the intents and income requirement described on page 4 of the memo.

Vice Chairman Valentine had a question with the table on page 3 and the accuracy. Example he gave was Community Bridges. Allocation is $4,700, balance as of December 14, 2006 is $4,700 and the status is project underway, 43 persons assisted. Community Development Assistant Simmons responded it is at the discretion of the organization when to request the funds whether it is quarterly, monthly or one lump sum.

Chairman Taylor would like to see Gilbert provide restrooms accommodations in the Heritage District area.

Chairman Taylor opened the floor to the public for any comments. Ms. Carol Lopinski of Child Crisis Center of the East Valley, thanked the Commission for their support this past year with hopes that it might continue.

Chairman Taylor closed the public hearing portion of agenda item #4.

A MOTION was made by Commissioner Fresquez, seconded by Commissioner Iacobazzi, to recommend to Council approval of the 2007/08 Community Development Block Grant and HOME Investment Partnership funding priorities presented by staff as follows: up to 70% for Housing; up to 15% for Public Services and up to 20% for Program Administration, and no priorities specified for the HOME program. Voice vote carried 4-0.

5. Comprehensive Sign Code Package
Chairman Taylor opened the public hearing on Comprehensive Sign Code Package–Update on the process and receive additional input and feedback on the draft sign code amendment.

Business Development Manager Tilque reviewed the overall timeline for the development of a Comprehensive Sign Code Package for the Heritage District. A letter was sent to about 80 business owners in the Heritage District inviting them to attend the Joint Study Session of the Planning Commission and Redevelopment Commission on December 6th as well as to participate in the Stakeholder Group meeting December 18th. Business Development Manager Tilque introduced the consultant for the project, Mr. Mario Mangiamele, who replaced Mr. Matt Everling.

Senior Planner Veljic recapped the discussion of the joint study session of the Planning Commission and Redevelopment Commission held of December 6th. He said it was a very intense one-hour session with only a 15 minute question and answer session. He also summarized the December 18th Merchant Stakeholders Meeting. Senior Planner Veljic distributed a copy of an analysis of signs already in the downtown, a list of the different types of signs that were discussed on December 6th as well as December 18th. Senior Planner Veljic included a proposed definition of Architectural Detail/Feature/Element that Vice Chairman Valentine felt should be added to the sign terminology.

Highlights:
• Important issue brought up was sign area and the calculation. Handout distributed to the Commission includes a table of how sign area is calculated.
• Proposing in final code amendment to grant 2 square feet per lineal foot of frontage which will give some flexibility and allow multiple signs and signs on all facades. It was discussed during the stakeholders meeting to give three options. The current code allows for 1 square feet per lineal foot of frontage.
• Took master sign program in the code for whole Town and tailored it to the downtown.
• Unique signs will be in the downtown. Discussed the following signs from the LDC, Oregano’s Pad and New Sign types:
1. Projecting signs—Will need to tailor the definition to include Liberty Market. and roof signs
2. Umbrella signs (allowed in outdoor dining/vending area). It was brought up that there was discussion to possibly allow an umbrella sign as part of a display (example, Country Manor) as long as it is appropriate.
3. Canopy signs
4. Directional signs
5. Historic Markers—Markers will not have to have a permit
6. Appliqué Sign—must be defined
7. Building Directory Signs
8. Marquee Sign—Specialized sign (angle and dimension)
9. Second Story Signs (incorporate with limitation of 6 square feet internally light or lighting fixture above or below). Additional language will be added as soon as task force studying this issue finalizes their work
10. Off Premise Signs–dealt with a shared advertise space at both entry of the district.
11. Banners and Murals
12. Windows signage—Discussed the allowable percentage. Town standard is 25 percent.
13. Suspended signs—currently allowed in code. Design should be addressed in the design standards and reference in code.

The Commission was given an opportunity to voice any questions or concerns:
• Corporate logos and color, how are they handled?
• Existing signs to be grandfathered in when sign code program is approved?
• How tonight’s discussion on sign types would be used (written in text?)

Consultant Mangiamele explained the public process and how the information taken from the stakeholder meetings and Redevelopment Commission helps create a working draft document for the sign code program. Final approval will be made by the Town Council.

Business Development Manager Tilque indicated that at previous stakeholders meetings message reader boards and off-site message reader boards were discussed and would like to know how that will be presented since there are different views from Planning staff and Stakeholders but want to make sure it is noted that it was discussed. Senior Planner Veljic replied direction for certain elements of the proposal comes through his supervisor. An example given was off-premise signage. It is not allowed in Gilbert and the proposal from Planning staff will not include off-premise signage but the report will note that it was mentioned as a comment and that it was discussed. The Town Council could add it in if they choose to. Another type of signage not to be proposed as part of the amendment is reader boards but will be included in staff reports that it was discussed.

Commission Fresquez expressed her displeasure as to how public input has been received toward message reader boards and off-premise signage. She photographed a digital board located at the Chandler Center for the Performing Arts which is in the historic district and it is beautiful. She mentioned that Mr. Dave Dietlein of Hale Theatre is concerned that he does not have signage along Gilbert Road. Commissioner Fresquez would like to come up with a win/win situation to help the small businesses in the area. She also pointed out that the Heritage District is an overlay district and what is done is specific to the area. Commissioner Fresquez ended by saying she will continue to try to make the meetings and try to get support for the two types of signs.

Vice Chairman Valentine felt the definition given for Architectural Detail/Feature/Element is good but should include stucco joints and efface joints.

Chairman Taylor opened the floor to the public for any comments.

Ms. Kathy Langdon, Gilbert Chamber of Commerce President, would like to know where she can send her comments to since she had to leave the December 18th Stakeholders meeting early. Consultant Mangiamele responded that comments can be sent to him directly. Ms. Langdon indicated she supports Commissioner Fresquez on her efforts.

Mr. Tim Becker, 101 First Avenue in Mesa, mentioned another type of sign to consider is a sandwich sign. A response was given that A-Frame signs are already allowed in the Heritage District.

Chairman Taylor closed the public hearing portion of agenda item #5.

6. RFP Review Committee Report
Chairman Taylor opened the public hearing on RFP Review Committee Report–Overview of proposals received in response to the RFP for the NWC Gilbert and Vaughn and the recommendation from the review committee.

Business Development Manager Tilque gave a Power Point presentation which included site plans and what each project proposed in response to the RFP for the northwest corner of Gilbert Road and Vaughn Avenue.

Highlights of the presentation:
• Request for Proposal issued September 5, 2006 with due date of October 20, 2006. Original site was 2.84 acres.
• Addendum issued September 11, 2006 increasing site to 3.97 acres. This allowed potential respondents more flexibility in site design.
• 4 proposals received from Heritage Landing, Heritage Marketplace, Heritage Square and Pepperton.
• RFP Review Committee comprised of Commission members Fresquez & Barlow, Councilman Don Skousen, Assistant Manager Ryall, Senior Planner Veljic and Business Development Manager Tilque.
• After first meeting, narrowed the list to two proposals—Heritage Marketplace and Heritage Landing. Pepperton proposal deemed as non-responsive.
• Follow-up meeting held with committee where each applicant was allowed 30-45 minutes to make a presentation.
• Scoring done for each response by committee members. Final tally showed four members favoring Heritage Marketplace project and two favoring Heritage Landing project.

Business Development Manager Tilque summarized the proposed project and what the features of each are:

Heritage Landing:
Offer price: $1,100,000 for 3.97 acres

Square Footage: 21,000 sf of one-story restaurants
3,500 sf of one-story retail
21,800 sf of one-story office/retail
Four buildings: 46,300 sf total

Tenant Mix: Boutique shops and limited offices

Parking Structure: 2 story—200 spaces

Heritage Marketplace
Offer Price: $989,683 for 2.84 acres

Square Footage: 2,000 sf specialty retail
8,000 sf single story stand alone commercial building
two—7,500 sf restaurants on first floor with 3 story office development
above
51,750 sf Class A office
20,000 sf two story retail/office
38,500 sf entertainment uses
Four buildings: 135,250 sf total

Tenant Mix: Anchor tenant—inPlay (includes gaming center, party rooms, banquet
& Conference facility, Conference & meeting space, Sport Bar & Dining

Parking Structure: 4 story—460 spaces

Comments and concerns of the committee:
• Heritage Marketplace too big and too corporate
• A concern that 7,500 sf restaurants may be to large
• Parking structure cost for 4 story structure and placement of structure in site plan.
• Heritage Landing is one-story structures

Representatives from both proposed projects were invited to the December Redevelopment Commission meeting. Representatives from Heritage Marketplace in attendance and happy to answer any questions the Commission may have.

Commissioner Fresquez thought Business Development Manager Tilque covered the highlights of both proposals well. She did comment the Redevelopment Plan addressed density of at least two story along Gilbert Road. She said density in the downtown area is needed.

Senior Planner Veljic mentioned that both groups have the expertise in developing projects. Assistant Manager Ryall stated the Town has a certain amount budgeted for a parking structure and there maybe a financial shortfall with the parking structure.

Business Development Manager Tilque introduced Mr. Tim Becker with the Heritage Marketplace project. He introduced all the members of his team.

The Commission had questions of the respondent with regards to the office component of the project and what the market demands may be. Mr. Leroy Breinholt, with Commercial Properties, responded that there is not enough ready-to-go space and 50,000 sf of office space is not that much.

Chairman Taylor opened the floor to the public for any comments. None received.

Vice Chairman Valentine indicated he was more in favor of the Heritage Marketplace and the comments about density and whether it will fill up are valid but Gilbert’s Heritage District is different than Mesa. There is a demand so he is not worried. He also liked how the group was sensitive to the western canal to the north. Commissioner Fresquez also said the professionalism shown by Heritage Marketplace was exceptional. The group really wants to be in Gilbert.

Chairman Taylor reiterated the heart of a successful downtown is restaurants. Would like the project to have the look and feel like Joe’s BBQ and he just doesn’t get it with the current design.

The Commission is very excited about the project but has a concern about the parking and parking structure. Vice Chairman Valentine said it is a great opportunity for Gilbert and the key will be creative financing when discussing the parking structure. He encouraged the developer to work with the Town.

A MOTION was made by Vice Chairman Valentine, seconded by Commissioner Fresquez, that the project, Heritage Marketplace proposal, be presented to the Council with recommendation to move forward with development agreement negotiations. Voice vote carried 4-0.

Chairman Taylor closed the public hearing portion of agenda item #6

ADMINISTRATIVE ITEMS
7. GrainBelt Grillhouse
Vice Chairman Valentine declared a conflict of interest as his firm is working with GrainBelt Grillhouse and will not participate in the discussion or any action taken.

Business Development Manager Tilque indicated staff has been working closely with the owner of the GrainBelt Grillhouse, Michael Savoie, regarding his new restaurant which will occupy the former Rock City Bar & Grill. A number of renovation options have been explored to meet the opening date goal of February 1, 2007. The most viable solution was to paint the exterior of the building. Business Development Manager Tilque stated paint approval can be done administratively but wanted to bring it to the Commission for feedback prior to making a final decision.

Mr. Michael Savoie briefly described the changes he will be making to the building. He showed the Commission, with a display board, how the painting of the building will look. The colors selected are a dark red with a tan border. Some minor changes are being done to the interior of the building which includes carpeting the entire dining room, moving the TVs into the bar area, wood floors in the entryway. Another change being considered by Mr. Savoie is a patio in the front. Sketch rendering shown to the Commission and will need to reviewed by Senior Planner Veljic in more detail.

Comments and concerns of the Commission include:
• Appreciates what Mr. Savoie is doing and hopes his endeavors are successful. Great that he is stepping up. Mr. Savoie said that he cannot think of any other place than downtown Gilbert for his restaurant. It is a perfect fit.
• Are the arch windows consistent with that of a steakhouse? Mr. Savoie responded that his concept would come through with his food and its customer service. One area Mr. Savoie stressed is that it is important to have good customer service. He also said that customer service starts with the co-workers.
• Likes the selection of color for the building.
• Still sees a building that has failed in the past even though it has been painted. Encouraged Mr. Savoie that more can be done to the exterior of the building in the future to make it “uniquely yours”.

A MOTION was made by Commissioner Iacobazzi, seconded by Commissioner Fresquez, to authorize staff to proceed in getting GrainBelt Grillhouse open administratively. Voice vote carried 3-0-1. Vice Chairman Valentine abstained from the vote.

8. November 11th Retreat Follow-up
Business Development Manager Tilque summarized the creation of a list with 22 “Do” items covered in the five main topic areas discussed at the retreat. Based upon the discussion at the November meeting, each Commissioner was to prioritize the “do” list for the December meeting. Business Development Manager Tilque mentioned the five items that seemed to have the most interest by a majority of the Commission were:
1. Master Plan (part of this process is to bring in speakers to share their experiences)
2. Joint meeting with Historical Society Board
3. Develop a brochure/map listing District restaurants, shopping, etc.
4. Parking Garage
5. Water Tower Park

Business Development Manager Tilque stated the final interpretation lies with the Commission. Commissioner Fresquez said the way she prioritized was anything easy to do received a #1 priority.

Chairman Taylor commented that he sees very little work with the top five and suggested the list be expanded to ten. There was an indication from Steel Dreamz that a car show could be put together really fast and would like to push to get something organized. He would like to generate energy in the Heritage District.

Business Development Manager Tilque advised the Commission to be careful when doing an event as it needs to be done right as it will set the tone for future events. He also reminded the Commission that a lot of their time will be consumed with the master plan and water tower park projects. The last reason he gave was lack of resources from a staff standpoint.

Assistant Manager Ryall indicated one of the resources available to her is Neighborhood Services. She said if the Commission wanted to work with an existing event—Pasados y Futuros Latino Event, Neigborhood Services could act as a liaison. Assistant Manager Ryall commented that Neighborhood Services could help in organizing a car show event.
Vice Chairman Valentine said he does like the idea and it may create a buzz about the downtown area. All of the Commission seemed excited about having a car show in the Heritage District.

A MOTION was made by Chairman Taylor, seconded by Commissioner Iacobazzi, to ask staff to schedule a date for an event in the first quarter or early second quarter of 2007 for a valley-wide car show to be held in downtown Gilbert. Voice vote carried 4-0.

Business Development Manager Tilque asked for some direction as to how the Commission would like to handle the monthly editorials. One option given was to have Gilbert’s Public Information Officer, Greg Svelund assist with the editorials. Business Development Manager Tilque made a request that the first editorial be from the Chairman of the Redevelopment Commission. The deadline date for submittal is the first week of the month. The Commission discussed the best way to approach the editorials.

Commissioner Fresquez indicated she will write her own editorial and does not want it edited. The consensus of the rest of the Commissioners was that they would also prefer to write their own editorials.

Chairman Taylor directed staff to set up a schedule. Business Development Manager Tilque would like some feedback on potential topics. It was asked that the Commission e-mail topic ideas that they would like to write about.

9. Update on Projects in the Heritage District
Business Development Manager Tilque highlighted the following:
• Old Boys & Girls Club RFP—Still waiting for the revised language from the attorney for Land Capital Group to accomplish the extension on the Development Agreement. Hoping to bring the amendment to Council at their January 23rd meeting.
• Water Tower Remediation/Repair/Painting Bid—Painting of the water tower is two weeks behind schedule due to weather issues.
• Community Center—Went out to bid November 2nd and contract was awarded at the December 19th Council meeting. Target date for opening is November 2007. Assistant Manager Ryall announced the ground breaking ceremony date is January 8, 2007.
• Text Management to Zoning Code—Amendment was proposed to allow uses like Steel Dreamz to operate in District. Council had some concerns in regards to the language proposed. In an Exec Session, Council discussed the issue but staff does not have access to what was discussed. Has heard that Steel Dreamz will be allowed to continue operation under a use permit.
• Western Powerline Trail Park—Assistant Manager Ryall reported that it is well underway and construction to cover canal on the west side of Gilbert Road is complete and work will begin on the east side January 5, 2007. She gave an update on the Water Tower Park and Jail Pump House Restoration. She said the Jail Pump House restoration is ready to go but is holding off until a park contractor is hired who will direct staff as to how to proceed. Advertised Notice and Call for Statement of Qualifications from Construction Managers at Risk for the Water Tower Park Project. Deadline to submit is January 8th. Gilbert will use the ASU Decision Theater to help with the design of the water tower park in 3-D. Date and time slot scheduled for Gilbert is Monday, January 22nd, 5:00 – 9:00 p.m. A suggestion was made to go 6:00 or 6:30 p.m. Gilbert’s 15 passenger van will be available for carpooling to the location from the Heritage Annex Building.
• January Commission meeting preview—Liberty Market will present preliminary concepts of their project and Land Capital Group plans to show their latest elevations and site plan at the January 18th meeting.

COMMUNICATIONS
11. Report from Redevelopment Commission Liaison to the Gilbert Economic Development Advisory board
No report.

12. Report from Chairman on current and future events
Chairman Taylor announced an upcoming event in Gilbert: Mayor’s New Year’s Eve Party, December 31, 2006 at 8:00 p.m. at McQueen Park Activity Center.

13. Report from Business Development Manager on current and future events
Business Development Manager Tilque reported the following:
• Distributed copies of two articles that appear in the December issue of Go Gilbert magazine about Country Manor and Heritage Court.
• A special thank you was given to Kathy Langdon of Gilbert Chamber of Commerce for writing an article on the Heritage District which appeared in a statewide publication, Arizona Tourist News.
• Hired a new Research Analyst, Håkon Johanson, who joined in the Business Development Division December 18, 2006.
• Interviews for the Business Development Specialist position have taken place and hope to have it filled by January 2007. The Business Development Division will then be fully staffed.
• Thanked everyone for all their hard work throughout the year and wished everyone a Merry Christmas and Happy New Year.

14. Report from Commissioners on current and future events.
Councilmember Urie mentioned the Community Center to be done in two phases:
• 1st Phase—Build new facility
• 2nd Phase—Demolish old building and redo parking lot

Assistant Manager Ryall mentioned Gilbert received a $10,000 forestry grant to replant trees in the Heritage Court parking lot. She also reported that Solid Waste Superintendent Lou Anderson will be power washing the bus stops in the Heritage District.

ADJOURNMENT
A MOTION was made by Commissioner Fresquez, seconded by Commissioner Iacobazzi, to adjourn the meeting. The meeting was adjourned at 9:15 p.m.

ATTEST:
Ted Taylor, Chairman

Elizabeth A. Stupski, Recorder