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City Council Meeting Minutes

OFFICIAL MINUTES

THE NEW MINUTES ARE NOT OFFICIAL UNTIL THEY HAVE BEEN APPROVED BY COUNCIL at the NEXT COUNCIL meeting.


CITY COUNCIL CALLED MEETING

MARCH 9 and 18, 2005

The Jackson, Tennessee City Council met for a called meeting on March 9, 2005 at 9:00 a.m. in the George A. Smith Meeting Room at City Hall with Mayor Charles Farmer and Council members John Bannister; Charles “Pepper” Bray; Harvey Buchanan; David Cisco; Johnny Lee Dodd; Maurice Hays; Gerry Neese; and Charles Rahm present. Council member Ernest Brooks, II was not present. Also present was Toni Ross, recorder of the minutes.

Council member Buchanan gave the invocation and led the audience in the pledge of allegiance to the flag.

The purpose of the meeting was to consider a request from a group proposing to be called Jackson Junior Senior Village, LLC, for an option to purchase the old Jackson Junior High building on East Deaderick Street.

Mayor Farmer gave a brief summary of the history of the development of the property. He advised that the agreement with the previous developer had been terminated and there was more than one party interested in the property.

Johnny Williams, Public Services Director, advised that he had attended a meeting in which Planning Department staff members were discussing development of property in Jackson. During the meeting, Mr. Williams learned that Olympia Construction Company (hereinafter “Olympia”) renovated school buildings. In that the City had several older buildings that needed to be developed, Mr. Williams asked the Olympia representative if Olympia would be interested in developing the old Jackson Junior property. Mr. Williams reported that Olympia researched the possible development of the property and decided they wanted to pursue the project.

Council member Neese questioned whether this project should be open to bids to determine if other people were interested in the property.

Butch Richardson of Olympia Construction Company was present and discussed their plans to construct a senior village to include 40 units. He advised that they wanted to obtain an option on the property to allow time to apply for funding under Tennessee Housing Development Agency tax credit equity loan. Mr. Richardson advised there was a deadline of March 21, 2005 to apply for such funding.

Frank McMeen and John Allen were present and advised they were interested in developing the property. They advised they could begin construction immediately. They presented a check and an offer for the purchase of the property with no contingencies.

Grady Barnes was present and questioned why the property would not be sold as surplus property.

Mayor Farmer asked, since notice had been given and further notice would be given if the Council would be in agreement with the appointment of a committee to authorize/delegate acceptance of proposals received for the property.

Council member Bannister made a motion that public notice be given so that all interested parties could come forward with their proposals for the property, and that the Mayor appoint a committee to select the best use of the property. Council member Bannister recommended that the committee meet on March 18, 2005 to allow time for Olympia to meet their March 21, 2005 deadline, Olympia they be the successful bidder. Council member Buchanan seconded this motion. Mayor Farmer appointed Council members Brooks, Bannister and Hays to the committee. The motion was unanimously approved.

Mayor Farmer advised that the original notice of the called meeting included baseball related matters. He advised that negotiations were still ongoing for the purchase of the Diamond Jaxx; however, there were still matters to be worked out. He advised that he hoped there might be something to present within the next day. After discussion of the time for the meeting, Mayor Farmer announced the meeting was recessed until March 10, 2005 at 1:30 p.m.

(Note: The March 10, 2005 was not held due to pending negotiations regarding baseball matters.)

MARCH 18, 2005 – 9:00 A.M.

The meeting reconvened at 9:00 a.m. on March 18, 2005 with all members except Council member Neese being present. The purpose of the meeting was to deal with the question of what to do with AA baseball and the West Tenn Diamond Jaxx.

Mayor Farmer outlined the options as follows:

1. There was a deadline of Monday, March 21, 2005, to exercise the right of first refusal that was presumably triggered on January 28, 2005 by a letter of termination submitted by the Lozinaks.

2. If the City chooses to acknowledge the right of first refusal prompted by the notice of termination, then the City could buy the Diamond Jaxx for approximately 11.3 million dollars or we can designate someone else to buy the Diamond Jaxx.

Mayor Farmer advised that several people had contacted the City since it was announced that the Diamond Jaxx wanted to move to South Carolina; however, only one party remained as an interested buyer and negotiations were still ongoing.

Mayor Farmer stated that it was his opinion that the City was not in a position to purchase the team and didn’t believe the community had given sufficient signs that they wanted to keep baseball.

Mayor Farmer recommended to the City Council that:

1. They take the least risky option that would preserve to the extent possible the City’s ability to keep baseball.

2. The City not exercise their right of first refusal but deny that one exists.

3. Dispute the notice of termination, which was based on significant operating costs, as proper notice.

4. Exercise the provision in the contract with the Lozinaks that in the event of a dispute between the parties, the matter would be turned over to a third party to mediate.

5. Ask the city attorney to notify the Lozinaks that the City is contesting their notice of termination, that we dispute their contention that they had significant operating losses in excess of $150,000, as the term “significant operating losses” is defined in the contract.

By doing so, the West Tenn Diamond Jaxx would continue to play during the 2005 season.

If it is determined that the City is right, then the notice received on January 28, 2005, would be a nullity. If it is determined that the Lozinaks are correct, then the City would have waived their right of first refusal and at the end of the 2005 season, the Lozinaks would have the option to do whatever they choose to do.

Mayor Farmer expressed his respect and appreciation for Bob Lozinak in his efforts to make baseball successful in Jackson.

Council member Brooks made a motion toward the arbitration and forego the other options available. The motion was seconded by Council member Rahm and was unanimously approved.

There being no further business, the meeting adjourned.

_____________________________________

CHARLES H. FARMER, MAYOR

CITY COUNCIL CALLED MEETING

MARCH 9 and 18, 2005

The Jackson, Tennessee City Council met for a called meeting on March 9, 2005 at 9:00 a.m. in the George A. Smith Meeting Room at City Hall with Mayor Charles Farmer and Council members John Bannister; Charles “Pepper” Bray; Harvey Buchanan; David Cisco; Johnny Lee Dodd; Maurice Hays; Gerry Neese; and Charles Rahm present. Council member Ernest Brooks, II was not present. Also present was Toni Ross, recorder of the minutes.

Council member Buchanan gave the invocation and led the audience in the pledge of allegiance to the flag.

The purpose of the meeting was to consider a request from a group proposing to be called Jackson Junior Senior Village, LLC, for an option to purchase the old Jackson Junior High building on East Deaderick Street.

Mayor Farmer gave a brief summary of the history of the development of the property. He advised that the agreement with the previous developer had been terminated and there was more than one party interested in the property.

Johnny Williams, Public Services Director, advised that he had attended a meeting in which Planning Department staff members were discussing development of property in Jackson. During the meeting, Mr. Williams learned that Olympia Construction Company (hereinafter “Olympia”) renovated school buildings. In that the City had several older buildings that needed to be developed, Mr. Williams asked the Olympia representative if Olympia would be interested in developing the old Jackson Junior property. Mr. Williams reported that Olympia researched the possible development of the property and decided they wanted to pursue the project.

Council member Neese questioned whether this project should be open to bids to determine if other people were interested in the property.

Butch Richardson of Olympia Construction Company was present and discussed their plans to construct a senior village to include 40 units. He advised that they wanted to obtain an option on the property to allow time to apply for funding under Tennessee Housing Development Agency tax credit equity loan. Mr. Richardson advised there was a deadline of March 21, 2005 to apply for such funding.

Frank McMeen and John Allen were present and advised they were interested in developing the property. They advised they could begin construction immediately. They presented a check and an offer for the purchase of the property with no contingencies.

Grady Barnes was present and questioned why the property would not be sold as surplus property.

Mayor Farmer asked, since notice had been given and further notice would be given if the Council would be in agreement with the appointment of a committee to authorize/delegate acceptance of proposals received for the property.

Council member Bannister made a motion that public notice be given so that all interested parties could come forward with their proposals for the property, and that the Mayor appoint a committee to select the best use of the property. Council member Bannister recommended that the committee meet on March 18, 2005 to allow time for Olympia to meet their March 21, 2005 deadline, Olympia they be the successful bidder. Council member Buchanan seconded this motion. Mayor Farmer appointed Council members Brooks, Bannister and Hays to the committee. The motion was unanimously approved.

Mayor Farmer advised that the original notice of the called meeting included baseball related matters. He advised that negotiations were still ongoing for the purchase of the Diamond Jaxx; however, there were still matters to be worked out. He advised that he hoped there might be something to present within the next day. After discussion of the time for the meeting, Mayor Farmer announced the meeting was recessed until March 10, 2005 at 1:30 p.m.

(Note: The March 10, 2005 was not held due to pending negotiations regarding baseball matters.)

MARCH 18, 2005 – 9:00 A.M.

The meeting reconvened at 9:00 a.m. on March 18, 2005 with all members except Council member Neese being present. The purpose of the meeting was to deal with the question of what to do with AA baseball and the West Tenn Diamond Jaxx.

Mayor Farmer outlined the options as follows:

1. There was a deadline of Monday, March 21, 2005, to exercise the right of first refusal that was presumably triggered on January 28, 2005 by a letter of termination submitted by the Lozinaks.

2. If the City chooses to acknowledge the right of first refusal prompted by the notice of termination, then the City could buy the Diamond Jaxx for approximately 11.3 million dollars or we can designate someone else to buy the Diamond Jaxx.

Mayor Farmer advised that several people had contacted the City since it was announced that the Diamond Jaxx wanted to move to South Carolina; however, only one party remained as an interested buyer and negotiations were still ongoing.

Mayor Farmer stated that it was his opinion that the City was not in a position to purchase the team and didn’t believe the community had given sufficient signs that they wanted to keep baseball.

Mayor Farmer recommended to the City Council that:

1. They take the least risky option that would preserve to the extent possible the City’s ability to keep baseball.

2. The City not exercise their right of first refusal but deny that one exists.

3. Dispute the notice of termination, which was based on significant operating costs, as proper notice.

4. Exercise the provision in the contract with the Lozinaks that in the event of a dispute between the parties, the matter would be turned over to a third party to mediate.

5. Ask the city attorney to notify the Lozinaks that the City is contesting their notice of termination, that we dispute their contention that they had significant operating losses in excess of $150,000, as the term “significant operating losses” is defined in the contract.

By doing so, the West Tenn Diamond Jaxx would continue to play during the 2005 season.

If it is determined that the City is right, then the notice received on January 28, 2005, would be a nullity. If it is determined that the Lozinaks are correct, then the City would have waived their right of first refusal and at the end of the 2005 season, the Lozinaks would have the option to do whatever they choose to do.

Mayor Farmer expressed his respect and appreciation for Bob Lozinak in his efforts to make baseball successful in Jackson.

Council member Brooks made a motion toward the arbitration and forego the other options available. The motion was seconded by Council member Rahm and was unanimously approved.

There being no further business, the meeting adjourned.

_____________________________________

CHARLES H. FARMER, MAYOR

 


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