The URL can be used to link to this page

Home My WebLink AboutJANUARY 13, 2009 SPECIAL MEETINGSPECIAL MEETING -January 13, 2009 I. INVOCATION, PLEDGE & ROLL CALL Councilmember Henderson gave the invocation followed with the pledge to the flag. The City Council of the City of Port Arthur met in Special Meeting do Tuesday, January 13, 2009 at 4:15 p.m. in the City Council Chamber, City Hall, -with the. following members present: Mayor Deloris "Bobbie" Prince; Councilmembers Elizabeth "Liz" Segler, Martin Flood, Robert E. "Bob" Williamson and Thomas ]. "Tom" Henderson; City Manager Steve Fitrgibbons, Acting. City Secretary Terri. Hanks, City Attorney Mark T. Sokolow and Sergeant At Arms Chief of Police Mark Blanton. Mayor Pro Tem Jack Chatman joined the Special Meeting. at 4:36 p.m. Councilmember John Beard, Jr. joined the Special Meeting at 4:50 p.m. Councilmember Morris Albright, III was absent from the Special Meeting. Councilmember Dawana K. Wise was absent from the Special Meeting. II. *CLOSED MEETING EXECUTIVE SESSION *Closed Meeting: (i) Section 551.071 Government Code - To Discuss With The City Attorney The Pending- Litigation Of Tyrrell Vs. Square Mile Energy And The City Of Port Arthur (2) Section. 551.071 Government Code - To Discuss With The City Attorney And Dan Lawton Potential Or Pending Administrative Hearings And Litigation As It Pertains To Entergy, The Rates Being. Charged, As Welf As Fees Being Collected For. Lighting (3) Section 551.071 Government Code - To Discuss With The .City Attorney Pending Litigation. Between The City Of Port Arthur, The Pleasure Island Commission, And Intercoastal Golf (4) Section 551.071 Government Code - To Discuss With The City Attorney Pending. Litigation. Between The' City Of Port Arthur, The Pleasure Island Commission, The Homeowner's Association And Other Parties As It Pertains To Marina Colony (5) Section 551.071 and Section 551.072 Government Code- - To Discuss With The City Attorney The Value: Of Land In. The City's ET] And Potential Litigation As It. Pertains To Payment, Refund,. Or Credit Issues (6) Section 551.087 Government Code - To Discuss Incentives For Commercial, Residential, And Industrial Business Prospects (7) Section 551.071 Government Code - To Discuss With The City Attorney Potential Litigation With The Pleasure Esland Shrimp House (8) Section 551.072 Government Code - To Discuss The Value Of Properly In Downtown Port Arthur The City Council recessed their Special Meeting at 4:18 p.m. to meet in Executive Session to consider the above-mentiohed topics, and reconvened their Special Meeting at 5:49 p.m. with the following members present: Mayor. Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Flood, Beard, Williamson and Henderson; City Manager Fitzgibbons; Acting City Secretary Hanks, City Attorney Sokolow and Sergeant At Arms Blanton. MOTION FROM EXECUTIVE SESSION (5) Section 551.071 and Section 551.072 Government Code - To Discuss With_The City Attorney The Value Of Land En The City's ETJ And Potential Litigation As It Pertains To Payment, Refund, Or Credit Issues Mayor Prince introduced the above-mentioned Executive Session item. City Attorney Sokolow read the following motion into the record: A motion to retain the legal services of Calvert, Eaves; Clark and Stelly as it pertains to the issues involving the. Huntsman contract, as to the rates delineated in the January 12, 2009 letter from Mr. Eaves. lJpon the motion of Councilmember Henderson, seconded Councilmember Flood and carried unanimously, the Executive Session motion as read by the City Attorney was adopted. Voting Yes: Mayor Prince; Mayor Pro Tem Chatman; Councilmembers Segler, Flood, Beard, Williamson and Henderson. Voting No: None. The. above-mentioned motion by the City Attorney was adopted. MOTION FROM EXECUTIVE SESSION (7) Section 551.071 Government Code - To Discuss With The. .City Attorney Potential Litigation With The Pleasure Island Shrimp House Mayor Prince introduced the above-mentioned Executive. Session item. City Attorney Sokolow read the following motion into the record: A motion to approve the settlement with the Pleasure Island Shrimp House and the EDC that was submitted to the City and as delineated in Mr. Carl Parker's letter to Attorney Guy Goodson dated January 6, 2009. The motion was made by Councilmember Williamson and secdnded Councilmember Henderson to adopt the above-mentioned Executive Session motion as read by the City Attorney. Councilmember Beard reouested the following statements be made a part of the record: Councilmember Beard: Mr. Attorney, with regards to the Pleasure Island Shrimp House, what is the amount that we are looking at that they are going to be refunding to us? City Attorney Sokolow: The EDC will be receiving a check for $475,000 as a result of the settlement involving the Pleasure Island Shrimp House. City Council Minutes -Special Meeting January 13, 2009 Z Councilmember Beard: Were there any attorney fees involved in this amount, for us to secure this? City Attornev Sokolow: Yes, there was approximately $25,000. Councilmember Beard: Where there any previous balances that was paid to that? Citv Attornev Sokolow: It is my understanding the Pleasure Island Shrimp House. had already paid $50,000 toward this debt. The Pleasure Island Shrimp House will also continue to pay on their $250,000 equipment loan, which has an outstanding principle balance of approximately $72,000. Councilmember Beard: Was there any interest accrued on this money while they had it? Citv Attornev Sokolow:. Yes, and that is being waived by the EDC as part of the settlement. Councilmember Beard: And, how much of that money is being waived, that amount? Citv Attornev Sokolow: That is over...Well, I think it is at 15% percent per year, the interest beirig charged. It is at least over $100,000. Councilmember Beard: My concern with this is that in a city that has some financial. issues...strapped for cash. In the process- of making this decision, that we did back in 2006, to fund what we thought was a worthy and worthwhile project to create jobs and opportunities for our people. We as the city; the EDC, and the Council in good faith and gave our money, a loan, or our tax payer dollars to the Pleasure Island Shrimp House. In which we found less than in two scant weeks later we had been defrauded. I have a very difficult problem when someone deals in good faith, or tries to deal. in good faith with someone basically who takes you for a ride as we were taken in this instance;. and then decides to pay us back. And, yet there is no interest involved in it? If that money was in the city's coffers, it could have. gone for, as they say much and given to the poor. A lot could have been done with in a city of our nature, but, to leave $100,000 on the table. It begs the question to me, if we don't get that money, then who gets it? Because it is earned interest somewhere. It was not sitting in a jar. It was not sitting in a box somewhere, in a shoe box, under a bed, or a mattress. It was somewhere where it accrued. some interest and I have a very great difficultly in taking the ax payers money and. seeing it. being used in that fashion. Even though there is going to be a penalty paid. by the people, the person that did this, to allow a $100,000 to slip off the table. Therefore, for the record, I am going to state that I am not going to support accepting the EDC's agreement to allow them to simply pay and go about their way. They need to pay and pay then some, because that is a quarter of the amount that they, were City Council Minutes -Special Meeting 3 January 13, 2009 loaned. Of the $500,000, it is almost a quarter of the amount, over a $100,000. I simply think that it is too much money to allow someone to just basically walkaway from without recompense to the citizens. The Executive Session was adopted over the dissenting vote of Councilmember Beard. Voting Yes: Mayor Prince; Mayor Pro Tem ,Chatman; Councilmembers Segler, Flood, Williamson and Henderson. Voting No: Councilmember Beard. The above-mentioned motion by the City Attorney was adopted. YII. ADJOURNMENT OF MEETING. Upon the motion of Councilmember Henderson, seconded by Councilmember Williamson and carried unanimously, the City Council adjourned their meeting at 5:55 p.m. An audio-tape of this meeting is on file in the office of the City Secretary and. is made a part of the official minutes of this meeting. MAYOR DELORIS °BOBBIE° PRINCE ATTEST: ACTING CITY SECRETARY TERRI HANKS . END OF SPECIAL MEETING HELD: ]anuary 13, 2009. APPROVED: City Council Minutes -Special Meeting 4 January 13, 2009