67th Economic Development Advisory Committee Meeting
July 13, 2009
10:00 a.m.
City Hall

Members Present: Members Absent:
Chairman Rick Buckner David Warner
Ron Anderson Mark Phillips
Joe Bagwell
Ron Henderson (arrived at 10:30 a.m.)
Dean Infinger

Staff Present: Guest:
Dennis C. Harmon, City Administrator Councilmember John McCants
Jeff Molinari, Assistant City Administrator
Amanda McGhee, Administrative Assistant

Press Present:

I. Call to Order - Chairman Rick Buckner

Mr. Buckner called the meeting to order at 10:10 a.m.

II. Approval of Minutes:

Mr. Anderson made a motion to approve the minutes from the May 18, 2009, meeting. Mr. Infinger seconded the motion. All in favor, none opposed. Motion carried. Mr. Molinari introduced Amanda McGhee to the committee and welcomed Councilmember John McCants to the meeting.

III. Restaurants:

Mr. Molinari mentioned that he and the City Administrator, Dennis Harmon, and Planning Director Daniel Ben-Yisreal, met with the developers of Cobblestone Village; the development south of Carnes Crossroads. Currently there are apartments at that location and they are in the process of building duplex units as well. This particular meeting was in regards to the commercial component of the development. Approximately a year and a half ago, Mr. Molinari and Mr. Harmon toured a family entertainment center complex in Gaffney, SC similar to the center the developers are intending to build as the anchor tenant of the commercial development. The developers are in the process of marketing the commercial properties along Highway 176, and still have intentions to build the family entertainment center, although financing is a continuing issue. The advantage of having a movie theatre in the complex is that there will be a draw of patrons from Goose Creek, as well as the surrounding areas. Mr. Buckner asked if the restaurant mentioned in the plan is the same as the sports bar Mr. Molinari referred to earlier. He stated there are plans for a sixteen (16) lane bowling alley, eight (8) screen movie theatres, as well as a sports bar. The bar is a non-smoking facility as per the developer's corporate policy.

There was no particular timeframe given on this project, and the developers have asked for assistance from the City with the infrastructure. The City has not offered this type of assistance before, and would have to look into the request and the liability involved. Specifically, they were looking for the City to fund a road that would connect an existing traffic circle in the residential district to the commercial district. Mr. Bucker asked if the city is involved in infrastructure assistance such as plumbing, sewer, similar aspects that have stopped other developments from happening. Mr. Molinari stated those things, installing water and sewer lines, are generally funded exclusively by the developer and the city has not been involved. However, in extending the water service to serve Carnes Crossroads and Cobblestone areas, the city has agreed to rebate back the impact fees associated with extending that line which amounts to a very small percentage of what the entire development will ultimately bring in terms of water sales and tap fees.

Mr. Buckner asked how Mr. Molinari anticipates the city will participate in business development in the future. He stated ultimately that would be a policy decision that City Council would have to make. If the city were to go that route, it would be in a manner that the expenses would be born exclusively by the direct beneficiary of the investment. For example, the tenants or future tenants of the Cobblestone Development would be paying for the improvements.

Mr. Molinari is still interested in meeting with the proprietor for the Chick-fil-A restaurant. Even though it is a fast food establishment, their site selection criteria is consistent with that of a sit-down restaurant. They would be able to provide insight as to what it was about the Goose Creek location and the demographic there that made it a sought after site for their investment. The restaurant has been very successful since it opened and the expectation is that it will continue.

IV. Downtown Redevelopment Update:

Central Avenue Rehabilitation:

Mr. Molinari stated there was a bid opening at City Hall on June 30, 2009. The lowest qualified bidder was Anson Construction of Charleston South Carolina with a bid of $1,398,956.00. The recommendation for awarding the contract will go before City Council on Tuesday, July 14, 2009. The contract includes significant streetscape improvements, piping the ditches along Central Ave, as well as installing decorative lighting, putting existing overhead utilities underground, planting trees and installing brick columns at the entrance to the driveways. The only remaining issue if the bid is approved by city council is to secure easements along Central Avenue. It is necessary to secure temporary construction easement in order to make the drainage improvements as well as securing permanent easements for the brick columns. There are nineteen (19) property owners along Central Avenue, City Staff has developed information for them explaining all of the improvements that the city will be making. In the next month Mr. Molinari and Mr. Harmon will be talking to the property owners in order to secure the necessary easements in order to begin construction.

The proposal is to for the improvements to be made on both sides of the street from Highway 52 to Highway 176 including a portion of Etiwan Avenue. The Department of Transportation has mandated that the majority of work be completed at night, as to not disrupt traffic flow and ensure minimal disruption to the existing businesses along Central Avenue. This project marks the first tangible improvement of the Downtown Redevelopment initiative. Mr. Infinger asked if there are currently any sidewalks on Central Avenue, Mr. Molinari verified that there are not. If the bid from Anson Construction is approved by City Council, there is a 180-day construction schedule. Hypothetically, if all of the necessary easements are secured by the end of August, by the time the contractors are mobilized and ready to go, it would probably be the beginning of October before this project is started. Since the Central Avenue project is the first on the list of the side streets to be redeveloped, Mr. Molinari stated the remaining projects on Brandywine and Thomason should be a more seamless process. Mr. Buckner asked how long the city has to spend the twelve (12) million dollars allotted for this project. The tax increment district that is funding these improvements expires at the end of 2012. Mr. Anderson asked if the half cent sales tax is being used to fund any part of this project, Mr. Molinari stated the funds are all tax increment funds.

V. JK Harris:

The City of Goose Creek had been contacted by a realtor representing JK Harris back in April, looking for tax incentives or other benefits the city could offer their business if they moved to the City. Mr. Molinari stated there is very little he could do regarding incentives and referred them toward Berkeley County Economic Development, but he did not hear back from them. A few months later, the Company started pulling permits necessary to occupy the property. National Car Rental (purchased by Enterprise Rental Cars) closed their operation on May 31, 2008; their facility has been vacant for a little more than a year. There have been very interested tenants since that time, but they have all fallen through. Enterprise has been pushing the deal with JK Harris, because they have a lease on the facility that expires in 2013, so it was in their best interest to get a sublease on that property.

JK Harris is a tax firm that helps out people that are having difficulties with the IRS. They have moved their corporate headquarters to Goose Creek and all 325 of their employees. Their old facility in North Charleston was approximately 40,000 square feet, the new facility is 83,000. Although there are no immediate plans to expand, the capacity is there if they plan to expand the facility in the future. The process of getting JK Harris to move their operations to Goose Creek was driven almost exclusively by the realtor, not the Alliance. Their business hours are Monday through Friday and they are closed on Weekends and Holidays. Mr. Henderson asked if JK Harris had expressed interest at one time, backed off and picked back up again. JK Harris had only expressed interest in that property a couple of months before they moved in, and the entire process was put together in about three (3) months. The existing technical infrastructure was already in place at this location; however the equipment was out of date and needed to be replaced. Other than new computers, the new location was ready to accommodate the new tenant.

VI. Chairman's Time:

Charleston Regional Development Alliance Governance Model:

Mr. Buckner briefed the committee on the new governance model at the Charleston Regional Development Alliance. The Alliance wants the City to pay $10,000.00 to have a representative on the Board. At the same time, the city is paying per capita via Berkeley County's contribution. Mr. Buckner has expressed from the city's perspective as well as his own, that there is something wrong with this expectation. He stated that the other cities do not seem to mind the fee, because we have not heard much out of them. The City of Goose Creek was the sole negative vote against the bylaws that caused that to change. In February, when the consultant decided to pursue the change, the city was told that we would have the opportunity to voice opinions or has representation on the board, but that did not happen. The cities of Mount Pleasant, Charleston, and Summerville have not said anything about the fee, which bothers Mr. Buckner. He stated that the city needs representation from an economic development standpoint as they have been a part of the Alliance for 13 years or more, and to not have representation now, due to the change in bylaws perpetuated by a consultant that stated they are going to raise money for the firm, is astounding. The Alliance has developed several circles, Directors Circle, Board Circle, etc. Of the five cities that are represented on the Alliance, Mr. Infinger asked which ones are paying the $10,000. Mr. Buckner stated all of the cities are paying the fee except the City of Goose Creek and possibly Summerville. Berkeley County is paying the Alliance for the people that are in Goose Creek, although Goose Creek has no representation on the board. There was a brief discussion concerning the Alliance Board, the fees associated with having a representative, and the municipalities that are or are not represented on the board.

VII. Comments from Staff:

Mr. Molinari stated on July 7, 2009 the Planning Commission heard a public hearing and unanimously approved to make a recommendation to city council to rezone the 84 Lumber property form Light Industrial to General Commercial. The recommendation will go before City Council at the next meeting, July 14, 2009. The property is under contract with Habitat for Humanity they are looking to use the facility as a Re-Sell store, they have outgrown their current facility on Highway 176. The change in the zoning will not make a very discernable change; since there is not a very intense use at the property. If the property is rezoned as General Commercial, the future owner would have the ability to have a more intense use, but the 84 Lumber site is an awkward piece of property that is adjacent to an existing subdivision that patrons have to drive into in order to access the property. The change in the zoning is actually down zoning, which will allow future redevelopment, but there will not be much of a change in the interim.

In response to a question Mr. Infinger had at the last meeting, Mr. Molinari stated that Remax is marketing the vacant property behind the old Food Lion; which is 5.63 acres, being offered at $600,000.00. As of the previous meeting, there had been at least one concept for a multi family townhome development at that location.

VIII. Adjournment:

Hearing nothing further, Mr. Buckner asked for a motion to adjourn. Mr. Henderson made a motion to adjourn. Mr. Infinger seconded the motion. All in favor, none opposed. Meeting adjourned at 11:04 a.m.

Minutes approved and adopted:

_________________________________ Date: October 26, 2009
Rick Buckner, Chairman