Village Board Minutes

May 14, 2008 (91)

A special meeting of the Village Board was held May 14, 2008 at 6:00 PM in the firehouse, 16 Saratoga Ave.

Mayor Winslow called the meeting to order and Mike Russo led the Pledge of Allegiance.

Roll Call: Trustees Denno, Enekes and Lescault were present.  Trustee Densmore was excused.

SPECIFIC REQUESTS

Michael N’dolo, Camoin Associates, went over the proposed amendment to the CDBG grant presently before the Board.  The Community Development Block Grant follows national guidelines for the spending of funds, a “Slums and Blight Spot” activity can be used to rectify blighting conditions in a community.  Two instruments are being proposed: a site clean up agreement and a note and mortgage on the properties in the amount of the grant assistance.  The grant acts as a loan that must be repaid in full in 18 months; if buildings on the sites are rebuilt in that time period the loan will be forgiven.  From an economic point of view, the importance is placed on rebuilding Main St and the long-term perspective of having a viable downtown area.  If the property is resold, the new owners must also comply with the 18 month time period from the time of assistance having been given; the 18 month time period does not restart if the property is sold.  Mr. N’dolo answered numerous questions from the public regarding the proposal.

Emmett Haydell asked if a sale of the property would be forced if the buildings were not rebuilt in the time frame.  Mr. N’dolo answered that the property could be foreclosed upon as with any mortgage.

Bob Hudak asked if the mortgage amount is going to be more than the property is worth if it is vacant.  Mr. N’dolo stated he could not estimate what the value of the properties would be after clean up and that the purpose was to encourage rebuilding.  This proposal gives the Village the option of seizing control of the property and selling to someone interested in rebuilding as opposed to letting a vacant lot sit for years.  Mr. Hudak asked about interest due on the loan.  The loan would be due in full if the buildings were not rebuilt in 18 months; a payment date would be set if it is not repaid at that point interest accrues at 7% per annum.

Jim Murray asked if the property owners could be required to take out a bond on grant money received.  Mr. N’dolo said he was not familiar with how a bond would work in this case; the usual security is a lien on property.

Lloyd Murdoch stated that this agreement would give the Village some control over a rebuilding time frame, otherwise the property owners could let the debris sit on the lot indefinitely.  Atty Auffredou stated that there were other remedies to clean up the property that he would discuss later, but he agreed this was a way for the Village to have some control over rebuilding.

Stan Hoffman asked if the process of seizing the property would be sped up if the buildings were not rebuilt in 18 months.  Mr. N’dolo stated that there is no way to accelerate the foreclosure process.  If the loan were not repaid in full after 18 months the foreclosure process would begin immediately.

Trustee Enekes asked if there is a time frame on the CDBG grant funds still available.  Mr. N’dolo stated the grant funds must be spent by September of 2008, asking for any extensions could jeopardize our future grant opportunities.

Mitch Saunders asked how many times Camoin Associates has done this type of project.  Mr. N’dolo stated that since 2000, the Office of Small Cities has only had one other case where there was a major fire in West Carthage and 200 units downtown were lost.  West Carthage was at the beginning of their grant cycle and the entire amount of their grant was spent on rebuilding.  Mr. Saunders stated he felt that using the grant money set a bad precedent and that the community wants to know how much insurance money the property owners are getting.

Carol Densmore asked if the buildings must be entirely completed in the 18 months.  Mr. N’dolo stated the agreement currently requires the buildings be constructed and a certificate of occupancy issued by the end of the 18 months.  Ms. Densmore asked if the building plans needed to be approved by a committee.  Atty Auffredou stated that a plan must be submitted to the Building Inspector and site plan review would be completed with the Planning Board, which would require a public hearing.  After site plan approval a building permit would be issued.  There is a provision in the agreement allowing owners to submit a request for additional time if they have good cause.

Mike Vasquez asked if the property owners are required to accept the grant funds.  Mr. N’dolo stated it was voluntary, Mollie and Jeff Milkiewicz have already decided not to accept the offer.  Mr. Vasquez asked if the downtown property was not viable for business why grant money would be spent.  Mr. N’dolo stated the purpose of the grant money was to close the gap that exists to make it a viable property, currently the cost of new construction cannot be supported by the rents that can be charged.  The purpose is that the community benefits from rebuilding downtown.

John Fiore asked how much grant money was left.  $72,634 is unallocated; other remaining funds have been allocated to other projects.  Mr. Fiore stated the debris should not be treated as blight but a health hazard and a letter should be sent demanding clean up.  Mayor Winslow stated a letter has not been sent, the Board is attempting to work with the property owners.  Mr. N’dolo stated the insurance money for clean up would be applied to the cost first, the grant would be used to make up the difference.

Gary Randall asked if the amendment would change the grant process and asked why the owners of Jack’s were denied a grant.  Mr. N’dolo stated that the program was initially set up to offer a maximum dollar amount per unit rehabilitated, property owners were required to make up the difference in the cost of the construction.  Mr. N’dolo could not comment on the exact financial situation that led to the denial of the application for Jack’s but a requirement was a certain number of jobs needed to be created to support the amount of grant assistance.

Trustee Denno outlined several aspects of the agreement for clarification.  The mortgage could only be reassigned to a new owner with written consent from the Village.  All payments made from the grant fund go directly to the contractor, not the property owners.  The insurance money and any other money from the owners is put in escrow to pay for the removal before grant funds are used.  If there is any litigation, the owners pay the legal fees.

Atty Martin Auffredou addressed the Board with the Village’s legal options for forcing a clean up of the property.  If grant funds are not used all legal options at the Village’s disposal would involve due process notification to the property owners and an opportunity for the owners to respond.  Only an emergency situation can override due process.  After due process notification and opportunity for property owners to be heard the Village would need to go through the competitive bidding process to hire someone for the clean up.  The options are as follows: the Village’s inherent authority to clean up problem property under the Municipal Home Rule; Village Code 61 Buildings, Unsafe; and the Public Health Law acting as local board of health.  All of these options involve a notice to the property owners, an opportunity for the owners to be heard, a hearing, a determination, and the process to clean up the property.  All of these options would require the Village to incur the cost of clean up and a lien would be placed on the property to recoup the cost, which would not necessarily be reimbursed by the County.  Using the Public Health Law would require a judgment from Saratoga County Supreme Court to attach a lien to the property.  The estimated period of notice would be 30 days and it would take another 2 – 3 weeks to take the actions required for clean up.

Jeff Dumont, owner of 205-209 Main St, addressed the public giving his background as a local businessman.  Mr. Dumont bought the Main St property in June of 2007 and had been working to improve the property.  Mr. Dumont stated he had $500,000 in insurance on the property and lost $10,000-$15,000 worth of tools and materials in the building, which were not insured.  Mr. Dumont has been quoted a cost of $120 -$180 per square foot to rebuild a residential building, commercial property would cost more.  His building must be replaced before the insurance money will be paid out; his policy is $500,000 for replacement cost.  Mr. Dumont expressed his desire to improve the property and beautify the village and noted that Mayor Winslow and the Board have spent a lot of time and effort putting this plan together.  Mr. Dumont’s insurance adjustor estimates 30% of the debris is his responsibility; he is putting up $25,000 under this agreement.  Mr. Dumont claims his lot has some of the debris left from Mollie’s Mason Jar.  Mr. Dumont stated that if the agreement cannot be reached he would go to court to keep the Village from seizing his property.  Mr. Dumont made a down payment with CT Male and wants to expedite the clean up and stated he feels it is to everyone’s benefit to clean up the property.

Mayor Winslow read a letter from Assemblywoman Teresa Sayward stating the use of the grant funds to remove the debris on Main St would meet the original intent and purpose of the grant program.

Mike Russo, Director of the 20^th Congressional District, addressed the Board and the public.  Mr. Russo stated that Congresswoman Gillibrand’s office wants the Village to get the “biggest bang for the buck” from the grant funds available to them.  Mr. Russo stated the language in the agreements tie into the best interests of the Village, the funds must be used by September 2008 there is not much time to use the money in other areas.  Mr. Russo encouraged the public to keep an open mind about the best uses for the grant money and thanked them all for speaking on the issue.

Mayor Winslow thanked Mike Russo and the staff of Congresswoman Gillibrand’s office for all of their help.

Trustee Denno stated that she and Mayor Winslow have asked the County about reimbursement for the cost of removal if it was levied on to the property owner’s tax bill.  The County would make the Village whole, but if the property went to auction and wasn’t sold for enough to cover the amount the County would expect to be reimbursed by the Village for the amount of the demolition.

Mayor Winslow stated he also spoke with the City Engineer and the Building Inspector/Fire Chief of Johnstown about the clean up of their fire.  The property owner began cleaning up the lot immediately and was three days into the project before the Dept of Labor came and cited him for a violation without stopping the removal. 

PUBLIC COMMENTS, QUESTIONS & CONCERNS

Mayor Winslow stated that the public comment period would allow each person 2 minutes to address the Board about the debris removal; questions would not be answered.

Jim Murray stated he did not want grant money to be used to cover the cost of debris removal because the properties were under insured.  Mr. Murray would prefer the money be used for rebuilding.

Sher Millis, expressed her concern with health issues from the debris, Dr Pitkin has issued a letter stating the debris is a health hazard.  Ms. Millis asked the Village to clean up the debris and use the grant money for the cost incurred.

Michael Vasquez asked the Board for an explanation of a F.O.I.L. request involving annual financial reports.  Mayor Winslow asked Mr. Vasquez to address the Treasurer another time, as this comment period addressed debris removal.

Bob Hudak stated grant money is not free money it is taxpayer’s money.  Mr. Hudak suggested sending the remainder of the grant money back to the State.  Mr. Hudak also expressed his frustration that with the lack of sending a demand letter to the property owners, the Village has lost time to push the clean up.  Mr. Hudak agreed with Mr. Murray’s comments about using money to rebuild.

Donna Moors stated her building next door to the fire site is barely standing because of damage and shifting earth, but there will be no grant assistance for her property.

Louise Kirkpatrick stated it is a wonderful idea to use grant funds as an incentive to rebuild with an 18-month lien on the property as an alternative to tying up the issue with a legal battle.  Ms. Kirkpatrick encouraged the community to stand together on this issue.

Adrienne Hull stated she supported Ms. Kirkpatrick’s statements and feels it is the community’s responsibility to help the property owners recover from the fire.  Ms. Hull stressed the CDBG grant purpose of eliminating threats to public health and safety and stated the grant money was given to the community to spend for this purpose. 

Emmett Haydell stated he does not totally object to using the grant funds with conditions for rebuilding, he objects to the fact that 4 months have gone by to get to this point.

Marty Cernek stated he does not understand the anger and sense of unfairness surrounding the issue, but felt that the grant funds should be opened up to assist properties such as Ms. Moors’ property.

Tim Murphy stated the grant application addressed the Village’s priorities in 2006.  Mr. Murphy felt if the fire had happened in 2006 the Slums & Blight category would have been a high priority and it is hypocritical to deny the use of the grant for this purpose.

Stan Hoffman stated he was upset that nothing was done immediately after the fire and feels roped in to using grant funds at the last minute.  Mr. Hoffman stated he would prefer to use the grant money for rebuilding the properties.

Mayor Winslow stated that there were four stakeholder meetings including the first meeting four days after the fire, this proposal began to be developed at that very first meeting to assist the property owners in rebuilding the buildings.

John Fiore stated a letter demanding clean up should have gone out to the property owners immediately.  Mr. Fiore stated that other members of the community have not been able to get grant money and grant money should not be used to help people that have money, but to help people without funds.

OLD BUSINESS

Trustee Denno asked Michael N’dolo if the Village could use the grant funds themselves to remove the debris as suggested by Sher Millis.  Mr. N’dolo stated the Village would need to hold the title to the properties in order to use the funds and the remaining grant funds are insufficient to pay for the whole clean up with out being supplemented by the insurance money from the owners.

Chief Kelley pointed out that private owners do not have to pay the contractors prevailing wage set by the state, the Village would have to pay prevailing wage, which would increase the cost of removal significantly.

Mayor Winslow asked Mike Sawyer of CT Male what the timeline and process would be for clean up.  Mr. Sawyer stated that demolition contracts are ready to be signed and a contractor is prepared to do the work.  The Dept of Labor requires a notification period of 10 days, but if it is determined to be an emergency, the notification period can be reduced to 3 days.  A snow fence would be put around the debris, signs would be posted that it is an abatement job and air monitoring would be conducted throughout removal.  Workers would wear suits and respirators, water would be used to contain the dust and equipment would be used to move the debris into trucks.

Trustee Denno stated the vote on this matter should have no favor or consideration of who the property owners are, the decision has to be for the health, safety and welfare of the community.  A letter has been received from Dr Pitkin stating the situation is a health hazard.  The agreement has the proper incentives to require the owners to rebuild or pay back the grant funds.  Trustee Denno stated it is a unique situation that the Village has grant funds available to assist the owners and the money has been used well so far to help other downtown business owners.  The plan presented is the quickest way to clean up the debris.  Trustee Denno stated Mr. Dumont has made the decision harder because of his negative comments about his neighbors and the Board is trying to keep personalities out of the decision.

Trustee Lescault stated she agreed with Trustee Denno, and sometimes decisions must be made that are best for the entire community.  Trustee Lescault emphasized what a difficult decision it was to make, stressing that in such a small community all are friends and asked the community to accept and respect the Board’s decision.  Trustee Lescault stated she wants to see the site cleaned up and downtown restored.

Trustee Enekes stated the grant is intended for the downtown area only and will be lost if the funds are not used.  If the Board asks for an extension to spend the grant money, they will jeopardize future grants.  The agreement has been constructed with incentives to rebuild and it is the right thing to do.  Trustee Enekes stated that if someone else’s house burned down the community would come together to help with fundraisers, contributions and other assistance.

Resolution #140 approved authorizing submission of an amendment to the 2006 CDBG funding.

Resolution #141 approved authorizing mayoral signature on agreement providing assistance to clean up site of Feb 2008 Main St fire.

The Board tabled discussion of a proposal from CT Male.

Motion by Trustee Lescault, seconded by Trustee Enekes that Board adjourn, 8:00 PM.
Carried – 3 – 0

Nicole M. Colson
Clerk