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September 4, 2008MINUTES WEST MEMPHIS CITY COUNCIL SEPTEMBER 4, 2008 A regular meeting of the West Memphis City Council was held on Thursday, September 4, 2008 at 1:30 p.m. in the City Council Chambers at City Hall, 205 S. Redding, West Memphis, Arkansas. Mayor Johnson called the meeting to order at 1:30 p.m. Invocation was given by Brother Danny Pankey. Phillip Para, City Clerk, called the roll. Those present were: Mayor William H. Johnson, City Attomey David Peeples, Cry Treasurer Frank Martin and Councilors, Marco McClendon, Helen Harris, James Holt, Chester Peeples, Phillip Carter, Lorraine Robinson, Clarence Davis, James Pulliaum, Ramona Taylor, and Herman Coleman. Quorum being present, Mayor Johnson proceeded with the meeting. MINUTES Councilor Taylor moved, seconded by Councilor Robinson to dispense with the reading of the minutes of August 21, 2008, and approve them as submitted. Upon voice vote, the voting was unanimous. OLD BUSINESS 3'~ Reading An Ordinance to re-designate Airport Road to College Boulevard, and for other purposes. Peeples moved, seconded by Holt to amend the Ordinance to redesignate the name from the north city limits to Taxi-Way. Upon voice vote, the voting was unanimous. City Attorney Peeples read the Ordinance for the THIRD time as amended. Carter moved, seconded by Peeples to adopt the Ordinance. After a lengthy discussion, roll call vote was held: AYES: Hams, Holt, Peeples, Carter, Davis, Pulliaum, and Taylor NOES: Robinson and Coleman Councilman McClendon voted as "present". The Ordinance was adopted and assigned No. 2198. 3r° Reading An ordinance to rezone the property located at 1224 South Avalon in the City of Wes# Memphis, from R-2, Low Density Residential, to R-4 Multi-Family Residential. City Attomey Peeples read the Ordinance for the THIRD time. Pulliaum moved, seconded by Holt to adopt the Ordinance. Motion carried. The Orsdinance was approved and assigned No. 2198. NEW BUSINESS R-1 A Resolution to set the cable television franchise fee at five percent and for other purposes Pulliaum moved, seconded by Robinson to table the Ordinance indefinitely. Motion carried. COMMITTEE REPORTS Police Commission -McClendon reported the Police Department made a deasion not to install cameras in the narcotic vehicles. They discussed the need for a crossing guard at the high school and recommend volunteer officers are paid $75.00 per shift to save money on police officer's overtime. That recommendation will have to go to the Budget Committee. Budget Committee -Taylor reported they met with full council and discussed covering the defeat. The Resolution that was tabled was one of the items recommended. They reviewed each department's budget and asked Mayor Johnson to meet with each department and ask they try to reduce their expenses in order to cover the defat that way. Airport Commission -Robinson read a letter from Neil Duncan, President of Caddo, to Mrs. Avery and the airport staff regarding the impeccable service they receive at the West Memphis Airport. Fire Commission -Holt reported Chief Spears is working on a proposal to present to the City Council. The east wall at Fire Station Four has cracked and they received one bid to fix it in the amount of E $19,200.00. They are waiting for another trd. The Fire Department received a grant for $92,000. They have purchased 2 lap tops and other equipment. Ward Wimbish, Economic Development Director gave a presentation and answered questions concerning where West Memphis is fairing in the economy and where we are headed. (See attached handout) PERMISSION REQUESTS McClendon moved, seconded by Taylor to give permission to pay Holiday Gartiens $100,000.0 plus closing costs for the property purchased by the Utility Department. Upon voice vote, the voting was unanimous. CITIZENS REQUESTS Edgar Laye -Pastor Bethel Baptist Church requested permission from the City Council to continue passing out literature to motorists in West Memphis. The police stopped him and informed him that it was against the law to pass out literature. City Attorney Peeples stated there is a local ordinance that prohibits any type of soliating in the roadways and said he would give him a copy of the ordinance after the meeting. Councilman McClendon announced they are registering people to vote at Marty's Men Store on E. Broadway. He also wanted to know how we could get an early voting poll in West Memphis since we are the largest city in the county instead of having to go to Marion. He asked about why West Memphis doesn't annex Highway 70 on the south side to Lehi. City Attorney Peeples said municipalities can annex two ways, by petition of the property owners or by election. He said they would also have to look into issues such as acquiring the utilities and extending police and fire protection. Mayor Johnson announced the City Council Meeting rebroadcast is at 5:00 and 7:00 tonight and Friday at 3:00, 5:00, 7:00 and 9:00. The 7:00 and 9:00 broadcast on Friday night will be pre-empted until after football season so they can simulcast an audio broadcast of the West Memphis Blue Devil football game. Councilor Taylor announced there will be an Interracial Dialog Meeting at 2:00 pm this Saturday at the home of Wayne and Tobi Fuller at 717 Auburn. Having no further business to come before the City Council, Councilor Pulliaum moved, seconded by Councilor McClendon to adjourn. Upon voice vote, the voting was unanimous. The meeting adjourned at 2:35 p.m. PASSED and APPROVED this _ r ~'~1 day of September, 2008. ~~ WILLIAM H. JOHNS N, MAYOR ATTEST: ~ PHILLI PAFifc, CITY CLERK Minutes prepared by Cindy Greenwood, Sr. Deputy City Clerk ~! ,~ _,.:.f, WVEST Executive Summary West Memphis City Council Economic Conditions in West Memphis Although West Memphis is feeling the impact of the economic downturn that has affected the nation and is in the process of affecting the entire world, we have had better news then most communities. To put things in perspective, a quick review of national and regional trends will be helpful. Nationally, corporate earnings have been negative for the last four quarters. We are half way through this year's third quarter and if earnings are also down then this earnings downturn will tie as being the worst string of negative earnings in our nation's history. There have only been two other periods of five back to back quarters of negative earnings, in 1969-70 and 2001-02. Regionally, the Memphis MSA has the nation's fifth highest retail vacancy rate. In the Memphis MSA, there are 21 million square feet of vacant industrial warehouse space. For the first two quarters of this year, the absorption rate for warehouse space was negative, that means more space was coming onto the market than was coming off. Space came onto the market because it was newly constructed and because tenants moved out of the area or moved into smaller spaces. West Memphis has actually bucked the trend. We started the year with 880,000 square feet on the market and now, half way through the third quarter, we only have 350,000 square feet available. We have had a positive absorption rate of 60%. That actually becomes a problem for us as we don't have available space for new or expanding businesses and in this market it is very unlikely anyone will be building. We do have one niche in the market though and that is access to rail. In the Memphis MSA, there is only about 3 million square feet of space on the market that has rail access. We only have 6% of that space and if a company needs rail access, we become a very attractive market. Our retail picture is a mixed bag. As any of you who serve on the Budget Committee know, our sales tax revenue has been down this year. The high gas prices have impacted our Hotel and Motel sector; for the first 6 months of 2008 as compared to the same time period in 2007, sales for that group are dawn by almost 7°Yo. However our restaurant sector has shown amazing resilience, sales for the same period are virtually unchanged and are up by over 6% from 2006. This indicates we still have room for growth and expansion in this sector. Likewise our general commercial and retail group in West Memphis is strong. In all of 2007 we saw over 55,000 square feet of new and expanding retail and commercial space. So far this year, we have seen over 91,000 square feet of grow, an increase of over 63%. And the year is not over yet. In closing, we have been impacted by the economic downturn that has affected the nation, but we have several areas of strength and are positioning ourselves for a robust 2009. .^~ ~t W"Q~~ M~mp'~.i~ ~"Ftscr:. ~._.~.^. ~r.. _: ~ r.~~i.. t .. ~. - .. r- -._ :i- ._i.. .. .. -..rrr Ft .• •„ . ; 1 TURN TO WEST A 17 K A N 5 A 5 City of West Memphis A&P Tax Receipts First 6 Months 2006 - 2008 Restaurant A&P Tax Receipts 2006 2007 2008 January $74,404 $78,799 $77,287 February $72,023 $75,909 $83,130 March $85,820 $87,282 $85,233 April $76,305 $79,845 $77,330 May $77,638 $85,125 $84,131 June $81,564 $88,201 $87,196 $467,754 $495,161 $494,307 Hotel A&P Tax Receipts 2006 2007 2008 $15,753 $16,220 $15,833 $19,158 $16,112 $17,316 $26,228 $22,208 $21,026 $18,991 $20,177 $17,896 $23,651 $24,553 $23,581 $23,464 $26,123 $21,023 $127,245 $125,393 $116,675 City of West Memphis ~ Office of Economic Development ~ Ward Wimbish, Director ~ wimbish~dwestmemphis.com 205 S. Redding ~ P.O. Box 1728 ~ West Memphis, AR 72303 ~ 870-732-7500 ~ westmemphis.com .+: jai i :: T~ ~.7 f Executive Summary West Memphis City Council Economic Conditions in West Memphis Although West Memphis is feeling the impact of the economic downturn that has affected the nation and is in the process of affecting the entire world, we have had better news then most communities. To put things in perspective, a quick review of national and regional trends will be helpful. Nationally, corporate earnings have been negative for the last four quarters. We are half way through this year's third quarter and if earnings are also down then this earnings downturn will tie as being the worst string of negative earnings in our nation's history. There have only been two other periods of five back to back quarters of negative earnings, in 1969-70 and 2001-02. Regionally, the Memphis MSA has the nation's fifth highest retail vacancy rate. In the Memphis MSA, there are 21 million square feet of vacant industrial warehouse space. For the first two quarters of this year, the absorption rate for warehouse space was negative, that means more space was coming onto the market than was coming off. Space came onto the market because it was newly constructed and because tenants moved out of the area or moved into smaller spaces. West Memphis has actually bucked the trend. We started the year with 880,000 square feet on the market and now, half way through the third quarter, we only have 350,000 square feet available. We have had a positive absorption rate of 60Yo. That actually becomes a problem for us as we don't have available space for new or expanding businesses and in this market it is very unlikely anyone will be building. We do have one niche in the market though and that is access to rail. In the Memphis MSA, there is only about 3 million square feet of space on the market that has rail access. We only have 69'0 of that space and if a company needs rail access, we become a very attractive market. Our retail picture is a mixed bag. As any of you who serve on the Budget Committee know, our sales tax revenue has been down this year. The high gas prices have impacted our Hotel and Motel sector; for the first 6 months of 2008 as compared to the same time period in 2007, sales for that group are down by almost 79'0. However our restaurant sector has shown amazing resilience, sales for the same period are virtually unchanged and are up by over 6% from 2006. This indicates we still have room for growth and expansion in this sector. Likewise our general commercial and retail group in West Memphis is strong. In all of 2007 we saw over 55,000 square feet of new and expanding retail and commercial space. So far this year, we have seen over 91,000 square feet of grow, an increase of over 6396. And the year is not over yet. In closing, we have been impacted by the economic downturn that has affected the nation, but we have several areas of strength and are positioning ourselves for a robust 2009. ¢, i.:-if 7t 'nYa S`. Mr'f71 F1:',15 ,~. f?i~:-r. .~ F:~:,, , ,.. -h:. :~. •.. "~:. ~~-;7.'"f '. .. ~'---.... ~ ~~i" t'. i= .,. .. .. .... ': rY'e z Memphis retail real estate vacancy rate ranks in Top 5 among nation's highest Memphis Business Journal - by Einat Paz-Frankel Memphis' retail real estate market boasts the fifth highest vacancy rate in the country, which experts attribute to the slow economy and relatively high amount of new construction. With a 9.g% retail vacancy rate at the end of the second quarter, Memphis is ranked only behind Detroit, Dayton, Ohio, Kansas City and Tulsa, Okla., according to Costar Group, Int.'s Mid-Year 2008 National Retail Market Report. "Some of the markets with the highest vacancy rates continue to have some of the highest levels of retail space under construction and delivered in 2008," Costar's Sasha Pardy wrote in the report. That's the case in Memphis, says Scott Barton, senior vice president for retail services at CB Richard Ellis Memphis. "A tremendous amount of new retail space has been brought into the market over the past few years," he says. "As a result, more retail space is serving roughly the same population," he says. "If we're not spending more, something has got to give." And that's vacancy. In an economic atmosphere where retailers don't expand and newcomers to the market are numbered, many of the leases signed are for stores relocating within the Memphis market, which leaves the vacancy rate virtually unchanged, Barton says. According to data he has collected and that will soon appear in the CB Richard Ellis MarketView report on retail real estate, the vacancy rate in the second quarter is roughly 12%, down from 13.2% in the first quarter. The industry wouldn't call that rate healthy. "Most people would probably point to 5 %-9 % as good vacancy rate," he says. "It's a tight market if the rate is below 5%." The highest vacancy rate was recorded in Memphis' South submarket during the second quarter, with 21.7% of the space unoccupied, according to CB Richard Ellis' data. The Southeast submarket, which includes the tornado-hit area of Hickory Hill and most of Winchester, saw a vacancy rate of 15.1% in the second quarter, Barton says. ~'~~y ~t WesF M~mp~is ~t~, ~, {- :,.,.. .. ,, `: ,: ...:.:-r~~ s ~ '~~:: -° .,-, .. :: .::: i :: ~c. . _<.~ E r~~ i !~ TURN TO WEST A R K A N S A S City of West Memphis A&P Tax Receipts First 6 Months 2006 - 2008 January February March April May June Restaurant A&P Tax Receipts Hotel A&P Tax Receipts 2006 2007 2008 2006 2007 2008 $74,404 $78,799 $77,287 $15,753 $16,220 $15,833 $72,023 $75,909 $83,130 $19,158 $16,112 $17,316 $85,820 $87,282 $85,233 $26,228 $22,208 $21,026 $76,305 $79,845 $77,330 $18,991 $20,177 $17,896 $77,638 $85,125 $84,131 $23,651 $24,553 $23,581 $81,564 $88,201 $87,196 $23,464 $26,123 $21,023 $467,754 $495,161 $494,307 $127,245 $125,393 $116,675 City of West Memphis ~ Office of Economic Development Ward Wimbish, Director ~ wimbishldwestmemphis.com 205 S. Redding ~ P.O. Box 1728 ~ West Memphis, AR 72303 ~ 870-732-7500 ~ westmemphis.com