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HomeMy WebLinkAbout1992-0128 ADJOURNEDMINUTES OF THE ADJOURNED MEETING ASHLAND CITY COUNCIL JANUARY 28, 1992 CALL TO ORDER: Mayor Golden called the meeting to order and led the Pledge of Allegiance at 7:35 P.M. on the above date in the Council Chambers. Laws, Reid, Acklin, Winthrop, and Arnold were present. Williams was absent. UNFINISHED BUSINESS: P.A. 91-140, Ivy Lane Subdivision. City Attorney Nolte said the 120-day decision period has passed, and appeal of this project by the Council would not be a proper use of the appeal process. Laws said he and Nolte will speak with the Planning Commission about legalities between the Commission and the Council, and moved to table the issue indefinitely. Winthrop seconded, all AYES on voice vote. PUBLIC HEARING: Mt. Ashland Ski Area Agreement. Steve Jamieson explained that the revised agreement better reflects the desires of the parties. The lease agreement will be modeled after the OSFA/City lease in which the city property is leased to the corporation for $1.00/year, but the complete operation is left to the lessee. In this case, tax deductible donations would be held in a special account by the City, which would then purchase the assets and lease the area back to the Mt. Ashland Ski Area, Inc. The City will refund the donations if the $1.4 million is not raised. City Administrator Almquist noted that as holder of the Forest Service permit, the City would be responsible for restoration measures should the corporation fail, and explained how the sale of the assets will be enough to cover those costs. He said a clause in the lease agreement should make provision for preservation of the value of the assets, and he feels confident there are adequate assets to protect the city's interests. The public hearing was opened. Jerry Barnes, State Representative residing at 950 Valley View Road, said this endeavor is important for the community, and that he will propose legislation to provide guarantees to the City for operational deficiencies. Sue Kupillas, County Commissioner, 6210 Highway 140, Eagle Point, spoke in favor of the agreement. Ric Holt, County Commissioner residing at 900 Neil Creek Road, spoke in favor and read letters from the Siskiyou County Visitors Bureau and Siskiyou County Board of Supervisors in support of the proposal. He presented a personal check toward the effort to save Mt. Ashland. James Shute, 147 Prospect, said Mt. Ashland is a marginal ski area, its history should be reviewed, an equipment appraisal done by a third party, and city liability considered. Tim Ferguson, 3450 Highway 66, Ski School Director at Mt. Ashland, spoke in support, and said 400-450 local school children are learning to ski. Tom Norby, 558 Holly St., expressed, via telephone to City Hall, that he is not particularly in favor of the proposal. Gail Morgan, 1673 Clarke St., spoke in favor and told how the sport brings families together. Ed Pentkowski, 436 Monte Vista, spoke against saying there are more important issues for the City to deal with, and government Adjourned Meeting - Ashland City Council - January 28, 1992 - P. i Mt. Ashland (Continued) has no business in private enterprise. Jeff Hanson, Manager of Mt. Ashland, spoke in favor and said the area is more attractive now due to improvements made by the present owners. Charles Inman, 814 Hillview, spoke against involvement by the city. Anton Abben, 397 Holly, said he agrees with individuals who spoke in support. Sam Conner, 2404 Siskiyou Blvd., spoke against noting weather patterns and liability. Michelle Marikos, 1192 Wilson Rd., spoke in favor on behalf of the students involved in the After School Youth Ski Program. Ron Roth, 6950 Old Highway 99 South, spoke in favor noting jobs the area provides, and students/teachers who move here because of the ski area. Kathleen MacMichael, 6950 Old Highway 99 South, spoke in favor. Tom Burnham, 451 Thornton Way, said the City should not rush into this, it should be a private business. Rebecca Orf, 143 Ridge Rd., spoke in favor noting the positive effects skiing has on area children. A letter was read from Dan Gunter, 247 Oak St., in support noting the value of the ability to control activities in the watershed. Ilse Nicholson, 1575 Greenmeadows, spoke against the proposal (letter submitted for the record). Char Niestrath, 8011 Dead Indian Rd., spoke in favor. Don Hill, 2234 Siskiyou Blvd., spoke in favor. Jack Blackburn, 805 Oak St., is opposed to city involvement and would like to see the issue put before the voters. Jack Nicholson, 1575 Greenmeadows, spoke against city involvement saying it could be illegal and is an unethical proposition (letter on file). Steve Zenos, 355 Grant St., said lottery grant money should be used for a business which will pay taxes, and that Mt. Ashland is not a viable ski area. Mark Dandurand, Forest Hall, SOSC, spoke in favor of the proposal as a representative from the ski clubs at the College. Dr. Gordon Anderson, City Councilor, Grants Pass, and President of SO- REDI, spoke in favor saying existing jobs should be retained, and the ski area is a draw for companies which are proposing a move to Southern Oregon. Sandra James, Chamber of Commerce, said the other Chambers of Commerce in the area support the proposal, and noted that the ski area is the key to off-season promotion. Jean Morgan, 618 Spring Creek Dr., spoke in favor. Dale Swire, 271 Beach St., said it is appropriate for a public agency to get involved with recreational facilities and he is in favor of the proposal. Ed Houghton, 185 Scenic Dr., spoke in support. Hank Singmaster, 145 N. Main St., spoke in support. Michael Sanford, 127 Strawberry Lane, spoke against. Steve Flynn, SOSC Dean of Students, spoke in favor saying the ski area is an important asset to the City and draws students to SOSC. Chuck Delaney, Phoenix, OR, spoke in favor. John Maurer, 1085 Elkader St., spoke in favor. Steve Drabik, 163 High St., spoke in favor. Moreland Smith, 6381 Wagner Creek Rd., Talent, spoke in favor. Jason Atkinson, 4480 Campbell Rd., Medford, SOSC student and head coach of Ashland High School ski team, spoke in favor. Zac Kauffman, 1673 Clark St., spoke in support. Frank Billovits, 600 Weller Ln., said if no city funds are used he will donate $500, and ask the Board of the Valley of the Rogue Bank to donate $5,000. A1 Willstatter, 128 Factory St., submitted comments to the effect that a statement of support from all public entities in the region would best express the importance of the Adjourned Meeting - Ashland City Council - January 28, 1992 - P. 2 Mt. Ashland (Continued) ski area. There being no further comment from the audience, the public hearing was closed. Laws said the City has an interest in the success of the ski area. Nolte said there is statutory immunity from the inherent risk of skiing, and the lessee will indemnify the City against liability. Laws is in favor of the proposal. Acklin said involving the taxpayers will not be necessary and asked that Staff prepare the lease. Winthrop said there are advantages to having control over activities in the watershed, and expressed concern about environmental contaminants which might already exist. Tom Lupes, U.S.F.S., said he is not aware of any contamination and the Forest Service permit requires inspections and compliance with State regulations. He is not aware of any further conditions which might be added to the special use permit. Acklin moved to continue the meeting, Arnold seconded, all AYES on voice vote. On a question from Almquist, Lupes said a bond would probably not be required. Reid is concerned that the lease agreement include closure costs and deal with the devaluation of equipment. Arnold said he supports the concept and is in favor of saving the ski area, but needs time to review the agreement. Laws asked that the wording in Section 5.1 be changed to reflect that the lease agreement will be modeled "in form and substance" after the OSFA/City lease agreement, not "substantially identical" to same. Acklin moved to continue the meeting, Winthrop seconded, all AYES on voice vote. City Attorney Nolte read the proposed amended language to Section 5.1 (attached to permanent record). Laws said the costs of auditing the equipment should be borne by the City as a part of economic development. Acklin moved to authorize the Mayor to sign the agreement, with inclusion of the amended language in Section 5.1, and that the lease negotiations with MASA include all issues discussed. Winthrop seconded, all YES on roll call vote. ADJOURNMENT: The meeting adjourned at 11:40 P.M. Nan E. ~rankl in City Recorder Catherine M. Golden Mayor Adjourned Meeting - Ashland City Council - January 28, 1992 - P. 3 Paragraph 5.1 as amended by the City Council: The City agrees to lease the ski area assets to MASA upon terms and conditions agreeable to both parties, the intent being to model the lease in form and substance to the lease agreement between the City of Ashland and the Oregon Shakesperean Festival Association which was executed on August 29, 1969. MASA shall be oligated to pay to the City the sum of $1.00 per year as consideration for the lease of the Ski Area Assets. The following matters shall also be addressed in the lease: (a) Provision must be made as to lessee's compliance with environmental laws as well as the underlying obligations of the Forest Service Special Use Permit. (b) It must be recognized that all property including equipment, furniture, structures and fixtures are leased "as is" with no warranties. (c) The fire and casualty provisions will have to be broader to include ski area hazards. (d) The liability insurance provisions must be increased to the tort claim limits. (e) The City will not supply irrigation water as provided in paragraph 8 of the Shakespeare lease. (f) There must be a requirement in the lease to maintain and replace the property to the extent that the value remains at a level to insure sufficient assets are available in case of closure and its consequent structure removal and site restoration. (g) Issues addressing auditing costs of the City shall also be addressed. (p:dai ly\skiash .p51 )