REGULAR COUNCIL MEETING
The Regular Council Meeting was held on October 25, 1993 with Council President Christiansen presiding. Council members present were Mr. Lambert, Mr. Tudor, Mr. Leary, Mr. Pitts, Mrs. Malone, Mr. Hutchison, Mr. Salters and Mr. Hare.
Council staff members present were Chief Smith, Mr. Lucas, Mr. O'Connor, Mr. DePrima, Mrs. Boaman and Mr. Rodriguez.
OPEN FORUM
The Open Forum was held at 7:15 p.m., prior to commencement of the Official Council Meeting. Council President Christiansen declared the open forum in session and reminded those present that Council is not in official session and cannot take formal action.
Richard Ornauer - 17 Mifflin Road
Mr. Richard Ornauer of 17 Mifflin Road stated that the DAST buses are now using the Water Street Parking Lot for their boarding and disembarking of passengers. Since they are no longer using the parking spaces between City Hall and the Post Office, Mr. Ornauer asked that the spaces again be made available for public use. Mr. O'Connor will look into the matter to determine if the spaces are needed by DAST.
The Open Forum adjourned at 7:18 p.m. Council recessed into executive session to discuss personnel matters. The official Council Meeting convened at 7:30 p.m.
The invocation was given by Pastor Coon, followed by the Pledge of Allegiance.
AGENDA ADDITIONS/DELETIONS
Mr. Hare moved for approval of the agenda, seconded by Mr. Hutchison and unanimously carried.
ADOPTION OF MINUTES - REGULAR COUNCIL MEETING OF OCTOBER 12, 1993
The Minutes of the Regular Council Meeting of October 12, 1993 were unanimously approved by motion of Mr. Hare, seconded by Mr. Salters and bore the written approval of Mayor Knopf.
ADOPTION OF MINUTES - SPECIAL COUNCIL MEETING OF OCTOBER 19, 1993
The Minutes of the Special Council Meeting of October 19, 1993 were unanimously approved by motion of Mr. Salters, seconded by Mr. Hare and bore the written approval of Mayor Knopf.
PRESENTATIONS - AWARD OF CITY OF DOVER MEDALS
By motion of Mr. Salters, seconded by Mr. Hare, Council unanimously adopted the following Resolution:
WHEREAS, on June 15, 1993 a near tragedy occurred when a young child, Will Kramer, swallowed a rubber ball making it impossible for him to breath; his mother was unable to dislodge the ball and she ran into the street screaming for help; and
WHEREAS, a neighbor, Mr. Grover Hall, arrived and attempted the Heimlich maneuver, tried to dislodge the ball with his fingers, and turned the child upside down and shook him, but the child remained motionless and was beginning to turn blue; and
WHEREAS, another neighbor and Dover firefighter, Ana Castro, arrived on the scene and was able to move the ball by massaging the child's throat and removed the ball with her fingers; and
WHEREAS, with the assistance of another neighbor, Gail Wayman, they administered CPR to Will Kramer, with Ms. Wayman administering breaths while Ms. Castro administered chest compressions; and
WHEREAS, the child was flown by helicopter from Kent General Hospital to the Alfred I. duPont Institute in Wilmington, Delaware to determine if the child's lungs had been damaged; and
WHEREAS, Will Kramer has made a complete recovery and pediatricians credit the quick thinking and actions of his neighbors with saving the life of this young child.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and Council of the City of Dover recognize that the quick, proficient and unselfish actions of Ana Castro, Gail Wayman and Grover Hall saved the life of young Will Kramer, averting what could have been a tragic loss to family, friends and community.
BE IT FURTHER RESOLVED that the Mayor and Council award Ms. Ana Castro and Ms. Gail Wayman the City of Dover Silver Medal and Mr. Grover Hall the City of Dover Bronze Medal in recognition of their exemplary conduct in a crisis situation.
ADOPTED: October 27, 1993
In his absence, Council President Christiansen read the following statement from Mayor Knopf:
"Due to a prior commitment, I am unable to attend the awards ceremony. Please convey my sincere appreciation to Ana Castro, Gail Wayman and Grover Hall for their quick and skillful assistance to Will Kramer. A near catastrophe was avoided by these courageous neighbors and their knowledge of life-saving techniques. I offer my deep gratitude to these three generous and caring citizens of Dover."
The following awards were presented by Council President Christiansen with the assistance of Will Kramer and representatives of Council and the Robbins Hose Company:
Ana Castro - Silver Medal
Gail Wayman - Silver Medal
Grover A. Hall - Bronze Medal
MONTHLY REPORTS - SEPTEMBER
By motion of Mr. Hare, seconded by Mr. Leary, the following reports were approved:
Chief of Police Report
Building Inspector's Report
City Clerk/Alderman Report (Fines)
City Managers Report
General Fund, Cash Receipts & Budget Reports
Water/Sewer Fund, Revenue & Budget Reports
Electric Revenue Fund, Revenue & Budget Reports
Improvement and Extension Fund, Cash Receipts & Budget Reports
Internal Service Fund, Revenue & Budget Report
RESCHEDULING OF PUBLIC HEARING - REZONING
A public hearing had been scheduled for rezoning of property located at 309 S. Governors Avenue, and 116-118 and 120-122 North Street. The owners of the property have requested that the public hearing be rescheduled for December 13, 1993.
By motion of Mr. Salters, seconded by Mr. Hare, Council unanimously referred the request to the Planning Commission and set a public hearing for December 13, 1993 at 7:30 p.m. The first reading of the following proposed ordinance was accomplished by title only:
AN ORDINANCE AMENDING THE ZONING ORDINANCE AND ZONING MAP OF THE CITY OF DOVER BY CHANGING THE ZONING DESIGNATION OF PROPERTY LOCATED AT 309 S. GOVERNORS AVENUE and 116-118 AND 120-122 NORTH STREET.
SCHEDULING OF PUBLIC HEARING - BORROWING BY ROBBINS HOSE FIRE COMPANY NO. 1
The Robbins Hose Company No. 1 plans to borrow up to $750,000 for the construction of Fire Station No. 2. This borrowing is the Fire Company's liability and the City is not responsible for any portion of the money. However, since the Fire Company is a designated "fire service" for the City of Dover, a public hearing is required by the IRS code.
Mr. Hare moved that the public hearing be scheduled for November 8, 1993 at 7:30 p.m., seconded by Mr. Leary and unanimously carried.
SEMI-ANNUAL INSPECTION BY CITY MANAGER - ROBBINS HOSE COMPANY
In accordance with Section 7-18 of the City Code, the City Manager inspected the Robbins Hose Company facility on Reed Street. Mr. O'Connor reported that the fire department is conducting a volunteer firefighter's recruitment drive, with emphasis on the west section of Dover. The new fire station is under construction and appears to be on schedule. The written report details other updates and is on file with the Office of the City Clerk. Mr. O'Connor reported that the volunteers are very proud of the station and encouraged members of Council to tour their facility.
Mr. Hare moved for acceptance of the report, seconded by Mr. Hutchison and unanimously carried.
Mr. Salters stated that the Robbins Hose Company is in the process of conducting their annual fund drive and he encouraged everyone to contribute to this very valuable organization.
APPOINTMENT OF JUDGES - ROBBINS HOSE COMPANY ELECTION
The Robbins Hose Company election will he held on November 15, 1993. The following persons were nominated to serve as judges for the election:
Carleton Dill Donald Hayes John McCoy (alternate)
Mr. Hare moved for approval of the appointments, seconded by Mr. Salters and carried with Mr. Christiansen not voting.
FINAL READING - PROPOSED ORDINANCE
The First Reading of the following proposed ordinance was accomplished during the Council Meeting of October 12, 1993.
Article IV - Abatement of City Real Estate Taxes - §19.5-31 - §19.5-34
Mr. Hare moved that the final reading of the proposed ordinance be acknowledged by title only, seconded by Mr. Leary and unanimously carried.
Mr. Lambert moved for adoption of the following ordinance, seconded by Mr. Hare and carried by a unanimous roll call vote:
BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE CITY OF DOVER IN COUNCIL MET:
The City of Dover Code is amended by adding a new Article to Chapter 19.5 Taxation, this Article to be designated as follows:
Art. IV. ABATEMENT OF CITY REAL ESTATE TAXES
§§19.5-31 - 19.5-34.
Sec. 19.5-31. Purpose.
In the opinion of Council of the City of Dover, the abatement of City real estate taxes for certain qualifying industries and businesses defined herein best promotes the public welfare by providing incentives for them to expand or locate in the City of Dover, thereby creating new employment opportunities for the citizens of the City of Dover and ultimately strengthening the City's tax base.
Sec. 19.5-32. Authority.
The Constitution of the State of Delaware, Article VIII, Section 1, provides that real property located within the boundaries of any incorporated municipality may be exempted from municipal property tax by the municipality when in the opinion of the municipality it will best promote the public welfare.
Sec. 19.5-33. Qualifications For Abatement.
(a)Qualifying Industries.
Manufacturers, Wholesalers, Financial Institutions as defined by FCDA, CCBAA, and subsequent legislation) and home offices and operating units of insurance companies shall be qualifying industries to include but not limited to Distributors, Transportation (air, rail, barge, truck), Printing and Publishing, and Foodprocessing.
(b) Investment and Employees.
The qualifying industry must invest at least $500,000 in a qualifying new or expanded facility in the City of Dover and hire at least 20 qualified employees (including owners/operators), 75 percent of whom shall be City of Dover/Kent County residents not employed by the qualifying industry/activity at the time of its relocation/expansion within the City of Dover. Council may, at the time of application, reduce the 75 percent requirement to a lesser percentage but not to less than 50 percent. The qualifying industry agrees to supply information verifying compliance with this section in whatever legally acceptable manner council shall so request.
(c) Benefits.
Council may abate City real estate taxes on a ten year sliding scale as follows or upon any other scale or method deemed most advantageous by Council for the public welfare.
Year of Operation Reduction of Taxes
1 90%
2 80%
3 70%
4 60%
5 50%
6 40%
7 30%
8 20%
9 10%
10 0%
Unless otherwise directed by council, year one (1) of the abatement period will commence with the first property tax billing following the completion of the qualifying new or expanded facility and the meeting of all requirements as detailed in Sec. 19.5-33(b).
All quarterly property taxes for new construction, as defined in Section 49A of the City Charter, will likewise be abated for qualifying new or expanded facilities.
The property tax abatement program will have no effect on both city wide revaluations of property values for taxation purposes, and the institution of those new values.
(d) Definitions.
(I)"Qualified facility" is any qualified property located in the City that constitutes a new or an expanded facility and that is used by taxpayer in or in connection with a qualified activity.
(ii)"Qualified property" is any building and its structural components and any other improvement to real property. It is also the land on which such building or other improvements is located if ownership of said land and structural improvements is identical. If any property is owned or leased by the taxpayer in common with any other person or persons, such property may constitute "qualified property" only to the extent of the taxpayer's proportionate interest.
(iii)"Qualified activity" is any activity constituting manufacturing (other than any repair, refurbishing, retooling, recycling or other similar process or procedure that merely preserves or restores the value of a product or that does not change the inherent nature of a product or material). It is also any activity engaging in business as a wholesaler. It is CCBA and any subsequent legislation as enacted by the State. It is also any home offices and operating units of insurance companies. It is also any combination of activity described herein.
(iv)"New facility" is any qualified facility (other than an expanded facility or a replacement facility) constructed by the taxpayer after the adoption of this ordinance and before June 30, 1998. For the purposes of this ordinance, constructed shall mean the issuance of a building permit for $500,000 or more.
(v)Expanded facility" is any qualified property (other than a replacement facility) resulting from the acquisition, construction, reconstruction, installation, or erection of improvements or additions resulting from repair, refurbishing, retooling, recycling, or other similar process or procedure that merely preserves or restores the value of an existing facility and not including any improvement or addition that in the determination of Council does not constitute an integral part of a qualified activity), if such improvements or additions are placed in service by the taxpayer as owner/lessee or sublessee after adoption of the ordinance and before June 30, 1998, but only to the extent of the taxpayer's qualified investment in such improvements or additions. Any existing industry which increases its appraised value with construction via a building permit of $500,000 or more in any 12 month period and which otherwise qualifies as detailed in Sec 19.5-33 (b) is eligible to participate in this program.
(vi)"Placed in service and original use" shall have the meanings ascribed to such phases under Art. 167 of the Internal Revenue Code (26 U.S.C.A. Art. 167) and regulations promulgated thereunder.
(vii)"Qualified employee" is any person employed within the City of Dover/Kent County on a regular and full-time basis.
(vii)"Qualified investment for any taxable year" is the value of a qualified facility as of the last business day of such taxable year. Such value during any taxable year of the taxpayer shall be: if the qualified facility is owned by the taxpayer, the original cost of such facility to the taxpayer.
(ix)"Related person" means a corporation, partnership, association, or trust controlled by the taxpayer; or an individual, corporation, partnership, association, or trust that is in control of the taxpayer; or a corporation, partnership, association, or trust controlled by an individual, corporation, partnership, association, or trust that is in control of the taxpayer.
(x)"Control" with respect to a corporation means ownership, directly or indirectly of stock possessing 50 percent or more of the total combined voting power of all classes of the stock of such corporation entitled to vote and 50 percent or more of the stock of such corporation entitled to vote and 50 percent or more of the total number of shares of all other classes of such corporation's stock;
(xi)"Control" with respect to a trust means ownership, directly or indirectly of 50 percent or more of the beneficial interest in the principal or income of such trust. The ownership of stock in a corporation, of a capital of profits interest in a partnership or association or of a beneficial interest in a trust shall be determined in accordance with the rules for constructive ownership of stock provided in Art. 267 (c) of the Internal Revenue Code (28 U.S.C.A. Art. 267 (c).
Sec. 19.5-34 Application Process
An initial application for abatement shall be by letter sent to Council by the taxpayer specifying the following: exact provisions under which the applicant qualifies, i.e., type of industry, financial investment, level of City/Kent County resident staffing, level of ownership and control, etc. An annual recertification for continuance in the program and statement of compliance shall be submitted by the taxpayer to Council no later than April 15 of each year. Unless Council directs otherwise, failure to submit said statement of compliance shall cancel participation in this abatement program for the property tax billing following the missed April 15 deadline.
Sec. 19.5-35 Termination of Ownership
If, prior to the expiration of the 10 year abatement period, the qualifying facility is sold to a non-associated outside party, Council has the option to both cancel all remaining years of the abatement program for the facility, and/or require the selling party to reimburse the city for all tax abatement amounts allowed. The acceptance of any tax rebates under this ordinance constitutes acceptance of this reimbursement provision.
ADOPTED: October 25, 1993
Mr. Hare moved for adjournment, seconded by Mr. Pitts and unanimously carried.
Meeting Adjourned at 7:55 P.M.
DEBRAH J. BOAMAN
CITY CLERK
All orders, ordinances and resolutions adopted by City Council during their meeting of October 25, 1993, are hereby approved.
AARON O. KNOPF
MAYOR
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