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0511201036 MINUTES CITY OF DUNN DUNN, NORTH CAROLINA The City Council of the City of Dunn held a Regular Meeting on Tuesday, May 11, 2010, at 7:00 p.m. in the Dunn Municipal Building. Present was Mayor Oscar N. Harris, Mayor Pro Tern N. Carnell Robinson, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Chuck Turnage and Joey Tart. Also present was City Manager Ronnie Autry, Finance Director Mark Stephens, Public Works Director Billy Addison, Public Utilities Director Dean Gaster, Police Captain Jimmy Pope, Planning Director Steven Neuschafer, Chief Building Inspector Mike Blackmon, Recreation Director Perry Hudson, City Engineer Ed Powell, City Attorney P. Tilghman Pope, City Clerk Debra West, and Daily Record Reporter Brian Haney. INVOCATION Mayor Harris opened the meeting at 7:00 p.m. and asked Police Chaplain Reverend Roy Johnson to give the invocation. Afterwards, the Pledge of Allegiance was repeated. AGENDA ADJUSTMENT AND APPROVAL Motion by Mayor Pro Tern Robinson and seconded by Council Member Galbreath to adopt the May 11, 2010 meeting agenda with changes, if any, as listed below. Items Added to the Agenda: • Consideration of a Resolution Authorizing the Filing of an Application for a USDA Loan — Downtown Revitalization Project Agenda Items Removed: • none Motion unanimously approved. PRESENTATIONS Certificate of Achievement for Excellence in Financial Reporting — Finance Department Mayor Harris, Mayor Pro Tern Robinson and City Manager Autry presented a Certificate of Achievement � for Excellence in Financial Reporting Award to Finance Director Mark Stephens and the staff of the Finance Department, in recognition of achieving the highest standard in government accounting and financial reporting, for the fiscal year ended June 30, 2009. Tyler D. Bray NCDOT Transportation Engineer Harnett County Comprehensive Transportation Plan Mr. Scott Walston representing Mr. Tyler D. Bray, presented the draft final Comprehensive Transportation Plan (CTP) to the Council along with maps for endorsement by the Council. As background information, Mr. Bray appeared before the Council on October 14, 2008 and July 14, 2009 and explained that he anticipated the CTP to be complete in late 2009, at which time Dunn will be asked to adopt the plan. This CTP will encompass all transportation deficiencies that will exist over the next 30 years and recommendations will be made on how to handle all those transportation deficiencies. The CTP includes highway, bicycle, pedestrian, rail and public transportation. Mr. Walston explained that from this point, the next step will be to hold drop -in sessions during mid -June to present this information to the public. PUBLIC COMMENT PERIOD ( Mayor Harris opened the floor for a (30) minute public comment period. / Hearing no comments, the public comment period was closed. Mayor Harris opened public hearings at 7:16 p.m. PUBLIC HEARINGS Conditional Zoning Request CZ -02 -10 John & Lynette Mercer PIN #1516 -56- 8549.000 100 E. Divine Street 37 Mayor Harris stated that the public has been notified that oral and written comments will be heard and received concerning the request by John & Lynette Mercer for a conditional zoning district for a parcel of land, totaling .41 acres + / -, located at 100 E. Divine Street. This property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3; (CZD); Highway Commercial Conditional Zoning District, to allow for the following uses: restaurant, retail, office and residential. The public hearing was duly advertised on April 20" & April 27 2010. Mayor Harris asked if there was anyone present to speak for or against this conditional zoning request Mr. John Mercer, 306 N. McKay Ave., Dunn, NC stepped forward and entertained questions from the Council. None were heard. Hearing no further comments, Mayor Harris closed the public hearing. ) Conditional Zoning Request CZ -03 -10 Leslie Whitaker PIN #1516 -39- 2496.000 1004 W. Broad Street Mayor Harris stated that the public has been notified that oral and written comments will be heard and received concerning the request by Leslie Whitaker for a conditional zoning district for a parcel of land, totaling .21 acres + / -, located at 1004 W. Broad Street. This property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3; (CZD); Highway Commercial Conditional Zoning District, to allow for general indoor retail sales and continued operation of the adult day care facility. The public hearing was duly advertised on April 20" & April 27 " 2010. Mayor Harris asked if there was anyone present to speak for or against this conditional zoning request Hearing no comments, Mayor Harris closed the public hearing. Conditional Use Permit CU -02 -10 Kalim & Annie Hasan PIN #1527 -61- 1222.000 427 Jonesboro Road * *Attorney Pope recommended that the Council deviate from the printed agenda and wait until after the arrival of Council Member Billy Tart before hearing sworn testimony for Conditional Use Permit CU- 02-10. Council consensus was to waitfor the arrival of Council Member Billy Tart. CONSENTITEMS Minutes — Council considered approval of minutes of the April 13, 2010 Council meeting. Tax Releases/Refunds — Council considered approval of Tax Releases/Refunds #283 - 0290. Copies of Tax Releases /Refunds are filed in the office of the Tax Collector. Capital Project Ordinance Budget Amendment — Council considered approval of 2009 Wastewater System Improvements Capital Project Ordinance Budget Amendment. A copy of 2009 Wastewater System Improvements Capital Project Ordinance Budget Amendment is incorporated into these minutes as Attachment #1. Budget Amendments — Council considered approval of Budget Amendment #11, #12 & #13 for FY 2009- 2010. A copy of BA #11, 12 & 13 is incorporated into these minutes as Attachment #2. Motion by Council Member Joey Tart and seconded by Council Member Galbreath to approve all consent items. Motion unanimously approved. ITEMS FOR DECISION Conditional Zoning Request CZ -02 -10 John & Lynette Mercer PIN #1516 -56- 8549.000 100 E. Divine Street The public has been notified that oral and written comments will be heard and received concerning the request by John & Lynette Mercer for a conditional zoning district for a parcel of land, totaling .41 acres + / -, located at 100 E. Divine Street. This property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3; (CZD); Highway Commercial Conditional Zoning District, to allow for the following uses: restaurant, retail, office and residential. IN The Plannin Board met on April 27, 2010, to review the request and ask for comments from the public. After hearing comments from the public and the request from the applicant, the Planning Board recommended unanimously to approve this request. Motion by Council Member Galbreath and seconded by Council Member Maness to approve the request from John & Lynette Mercer for a conditional zoning district for a parcel of land (PIN #1516 -56- 8549.000) totaling .41± acres and located at 100 E. Divine Street from O & I; Office & Institutional District to C -3 (CZD); Highway Commercial Conditional Zoning District based on the following justification: 1) The City of Dunn Land Use Plan identifies this parcel as office use on the future land use map. This property is located in area three of the Land Use Plan. 2) The amendment is not inconsistent with the surrounding land uses which are commercial and office. 3) The permitted uses the applicant provided in the C -3 (CZD) District are suitable and they are not considered detrimental to the area and would be beneficial to the entire community. Motion unanimously approved. Conditional Zoning Request CZ -03 -10 Leslie Whitaker PIN #1516 -39- 2496.000 1004 W. Broad Street The public has been notified that oral and written comments will be heard and received concerning the request by Leslie Whitaker for a conditional zoning district for a parcel of land, totaling .21 acres located at 1004 W. Broad Street. This property is currently zoned O & I; Office & Institutional District and is requested to be rezoned to C -3; (CZD); Highway Commercial Conditional Zoning District, to allow for general indoor retail sales and continued operation of the adult day care facility. The Planning Board met on April 27, 2010, to review the request and ask for comments from the public. After hearing comments from the public and the request from the applicant, the Planning Board recommended to approve this request. The motion was passed with 4 votes in favor and 1 vote against. Planner Neuschafer explained that the applicant has agreed to remove the following uses from the requested conditional uses: auto part sales (new), appliance sales only (no repair), and vending companies. Motion by Council Member Turnage and seconded by Council Member Joey Tart to approve the request from Leslie Whitaker for a conditional zoning district for a parcel of land (PIN #1516 -39- 2496.000) totaling .21± acres and located at 1004 W. Broad Street from O & I; Office & Institutional District to C -3 (CZD); Highway Commercial Conditional Zoning District based on the following justification: 1) The City of Dunn Land Use Plan identifies this parcel as office use on the future land use map. This property is located in area one of the Land Use Plan. 2) The amendment is not inconsistent with the surrounding land uses which are commercial and office. 3) The permitted uses the applicant provided in the C -3 (CZD) District are suitable and they are not considered detrimental to the area and would be beneficial to the entire community. Motion unanimously approved. Safe Routes to School Non - Infrastructure Reimbursement Contract Agreement City Planner Neuschafer stated that the City of Dunn was awarded the Safe Routes to School Non - Infrastructure reimbursement grant. The local match is 0 %. This grant is 100% reimbursable. The SRTS Non - Infrastructure grant includes education, encouragement and enforcement of safe - walking habits and physical activity to help promote healthy lifestyles in the youth of our community. This project will serve Harnett Primary and Wayne Avenue Elementary Schools. All project activities will begin in August 2010 and last the entire school year until June 2011. Motion by Council Member Maness and seconded by Mayor Pro Tern Robinson to approve the Safe Routes to School Non - Infrastructure Reimbursement Contract Agreement between the NC Department of Transportation and the City of Dunn. Motion unanimously approved. A copy of the Safe Routes to School Contract Agreement is incorporated into these minutes as Attachment #3. Audit Contract F/Y 2009 -2010 Finance Director Mark Stephens stated that Petway Mills & Pearson, PA submitted a proposal of $19,470.00 to perform the F/Y 2009 -2010 audit for the City of Dunn. Finance Director Mark Stephens gave a report of previous audit costs. Previous Audit Costs 39 2009 - $18,900.00 2008 - $18,000.00 2007 - $31,300.00 Petway Mills & Pearson, PA has been performing the City's audit since 2005. Motion by Mayor Pro Tern Robinson and seconded by Council Member Joey Tart to contract services with Petway Mills & Pearson, PA to conduct the F/Y 2009 -2010 audit for the City of Dunn at a proposed cost of $19,470.00. Motion unanimously approved. A copy of FY 09 -10 audit contract is incorporated into these minutes as Attachment #4. Consideration of a Resolution Re- naming a Street within the Corporate Limits of the City of Dunn From 1 Morganite Drive to Carlie C's Drive Mayor Harris stated that the City of Dunn received a letter of request from Carlie C. McLamb, Jr., President of Carlie C's Operation Center, Inc. and the property owner of the former Morganite building, requesting a street name change. The street presently known as I Morganite Drive is requested to be changed to Carlie C's Drive. Motion by Council Member Joey Tart and seconded by Council Member Maness to adopt a Resolution Re- Naming a street within the corporate limits of the City of Dunn from 1 Morganite Drive to Carlie C's Drive. Motion unanimously approved. A copy of Resolution (R2010 -07) re- naming I Morganite Drive to Carlie C's Drive is incorporated into these minutes as Attachment #5. Temporary Blocking of Street Rescheduled. Dunn Emergency Services Live Burn Training Exercise Manager Autry explained that the Council is being asked to reschedule the Live Burn Training exercise as approved by the City Council on April 13, 2010 from the original requested date of April 24, 2010 to May 22, 2010 with a rain date of May 29, 2010. The following streets will be closed from 7:00 am until 4:00 pm. • W. Vance St. at N. Fayetteville Ave. • W. Vance St. at N. King Ave. • N. King Ave. from W. Harnett to W. Vance St. • Close half of the intersection of W. Harnett St. and N. King Ave. The Council approved the closures during their April 13, 2010 meeting. Afterwards, Dunn Emergency Services was notified that the instructor for Live Burns would not be able to attend the training exercise on April 20. Live Burn Instructors are a requirement of the state. Motion by Mayor Pro Tom Robinson and seconded by Council Member Galbreath to approve the temporary street closing as requested by Dunn Emergency Services with the stipulation of notifying the residents. Motion unanimously approved. Consideration of a Resolution Authorizing the Filing of an Application for a USDA Loan — Downtown Revitalization Project City Engineer Ed Powell explained that the project design is complete and an estimate has been prepared. Some funds have already been dedicated to this project for the reconstruction and replacement of deteriorated sewer lines in the area as well as some water line replacements /upgrades that will be funded through the reserve in the water and sewer enterprise fund. In order to provide a funding source for the remainder of the project, Davis - Martin - Powell has prepared an application to go to USDA or a rural development community facility loan. The Council is being asked to adopt a resolution to submit a application to the USDA Rural Development for consideration of loans for completion of this project. Since there are some unknown costs associated with this project, they are looking at the potential of 3.3M to complete the project. This will include all underground power, cable, completion of storm drainage, reconstruction of streets and sidewalks. Mr. Powell stated that this is not a commitment to go anywhere with funding but merely the next step in the process to secure an offer of funding for the completion of this project as it has been designed. Mayor Harris stated that the proposed resolution is only an authorization for the Mayor to apply for the loan. 7:35 pm — Council Member Billy Tart arrived at the meeting. Mr. Powell stated that 3.3M is a realistic cost for this project. It could take six months before the City of Dunn receives a commitment letter from USDA and at that time, the Council will decide whether or not to accepttheloan. 40 It was discussed that if all monies are not offered, then the downtown project may have to be accomplished in phases /segments. Once a letter of commitment is received, then it will be decided what financial part the Downtown Dunn Development Corporation will take. Motion by Mayor Pro Tern Robinson and seconded by Council Member Turnage to adopt a resolution authorizing the filing of an application for a USDA Loan — Downtown Revitalization Project. Motion unanimously approved. A copy of Resolution (R2010 -08)to authorize filing an application for a USDA Loan is incorporated into these minutes as Attachment #6. ITEMS FOR DISCUSSION AND /OR DECISION Financial Report Finance Director Mark Stephens provided the following financial update to the Council: • The City as of March 31, 2010 had $3.3M cash in the General Fund and $2.1M cash in the Water /Sewer Fund. • Investment earnings are in the .35% - .20% range. • Building Permit Fees were $52,354 or 80.55% of budget. The City should be at 75.00% of budget. • The Sales Tax Revenue for March was $732,940.88 or 51.62% of budget. The City should be at 58.33% of budget. Equated in dollars, the City is short by approximately $95,000 in sales tax revenues. • Water and sewer revenues were $2.9M or 73.82% of budget. The City should be at 75.00% of budget. • Fuel cost per gallon was $2.17 in March. Same period last year, the City was paying $1.33 per gallon. • Property taxes collected as of March were 98.21% of budget. Same period last year, the City had collected 98.19% of budget. • Expenditures were 72.37% of budget in the general fund and 66.05% in water /sewer fund. The benchmark for this period is 75.00 %. ADMINISTRATIVE REPORTS Motion by Mayor Pro Tem Robinson and seconded by Council Member Galbreath to approve the Administrative Reports. Motion unanimously approved. Mayor Harris opened up public hearings again at 7:52 p.m. PUBLIC HEARINGS CONTINUED Conditional Use Permit CU -02 -10 Kalim & Annie Hasan PIN #1527 -61- 1222.000 427 Jonesboro Road Mayor Harris stated that this is a request for a Conditional Use Permit [Zoning Ordinance Article IX Section 22 -461 (7) k.] from Kalim & Annie Hasan. The conditional use will allow for the operation of a private club at 427 Jonesboro Road. According to the applicant, the private club will be an upscale social lounge for members only. There is a mix of residential and commercial use surrounding the property. This Public Hearing is an opportunity for the Council to hear sworn testimony and receive specific evidence from the public to include any party for or against the request. During the deliberation for decision questions may only be asked to clarify previous testimony. The public hearing was duly advertised on April 20" & 27", 2010. Mayor Harris yielded to City Attorney Pope. City Attorney Pope introduced CU 02 -10 a request by Kalim & Annie Hasan for the issuance of a conditional use permit to allow for the operation of a private club at 427 Jonesboro Road. The hearing on this matter is judicial in nature and will be conducted in accordance with special due process safeguards. Attorney Pope asked that all persons who wish to testify in this case, approach the podium to be sworn or give their affirmation. Swearing -In: City Attorney Pope administered oaths to: City Planner Steven Neuschafer Mr. Stan Williams Mr. Wallace Core Ms. Annie Hasan Mr. Kalim Hasan Attorney Jeff Stall Mr. William Muwwakkil 41 Explanation of Proceeding Attorney Pope explained that testimony will first be given by City Planner Steven Neuschafer, then from the applicant and their witnesses, and then from opponents to the request. Parties may cross - examine witnesses after the witness testifies when questions are called for. If you want the Council to see written evidence, such as reports, maps, or exhibits, the witness who is familiar with the evidence should ask that it be introduced during or at the end of his or her testimony. Reports from persons who are not present to testify will not be accepted. Attorneys who speak should not give factual testimony but may summarize their client's case. Before beginning your testimony, please clearly identify yourself for the record. City Attorney Pope opened the hearing on Case #CU 02 -10 Conditional Use Permit Application and asked for testimony from Planning Director Steven Neuschafer. Testimony from the Planter Planner Neuschafer asked that the documents contained behind tab #14 in the City Council packet which includes the conditional use application, Planning Department staff report, statement of justification from the applicant, map titled 75 total parking spaces and a map of the property be entered as evidence. (A copy of these documents entered as evidence for Case #CU 02 -10 Conditional Use Permit is incorporated into these minutes as Attachment #7) Mr. Neuschafer stated that this application is for a private club /social lounge. The current number of parking spaces that are provided is 75. It has driveway access off of Jonesboro Road. The current zoning is C -3 Highway Business and the private club /lounge is listed under the conditional uses in the ordinance. He stated that the staff report mentions in the analysis that this request is for the operation of a private club. According to the applicant, the private club will be an upscale social lounge for members only. This request does not allow any type of adult business or sexually oriented business as defined by section 22 -184 of the zoning ordinance. The adjacent property uses are residential and commercial in nature. With that evidence entered into the record, he entertained questions from the Council. At the end of the City Planner's testimony, Attorney Pope asked if there were any questions of the City Planner. None were heard. Attorney Pope asked if there were questions of the City Planner from any opponent /proponent. None were heard. Attorney Pope asked for testimony from the Applicant /Proponents or from attorneys or other representatives who will give a general summary of the client's position. Mr. Jeff Stall, attorney with Marshall Miller and Christopher Moods, Erwin NC stated that he has been retained by Mr. Kalim Masan and his mother, Ms. Annie Masan to summarize for the Council what they intend to do with their club. It is his understanding that there was some miscommunication as to the nature of the business that they intend to run and it is also his understanding that there was some conflict regarding prior business entities that were in the same building. What his clients intend to do first and foremost, is provide a service in Dunn that they feel from a business analysis standpoint, was lacking and that is a social atmosphere that is private to members alone whereby people can go and spend their leisure time as they choose. His clients intend to serve food that will be catered by Milestone, which is a business located directly adjacent to the property in question. They have secured additional parking owned by the landlord, Sadler Brothers Truck Stop. His clients came to Dunn feeling that this is in fact, a good place and growing community whereby they could operate their business and be successful. They understand the nature of the businesses and the conflicts that arose out of the prior businesses in that area and are here to assure members of the community as well as the Council, that this is not their intention. His clients are business people and have invested a substantial sum of money in trying to forward this business. It's not too often that you have somebody come into the community willing to put that sort of money forward to renovate a building and to accept the challenges of entrepreneurship. He was proud to hear that Carlie C's is going to have their base operations here and is a wonderful thing for the City of Dunn. He has also heard a lot of propositions about revitalizing. Eventually that money has to be paid back and it's going to be paid back one way or another by the businesses and the people of Dunn. His clients will provide a desired service in Dunn and feels they will be good neighbors. He has sat down and met with them and they have assured him that none of the shenanigans that have been of concern in that location, are going to go on. His clients are business people and they completely and fully understand that those types of businesses do not generate an income stream for any substantial period of time; they're fly -by- night. His clients have invested a substantial sum of money in this. They are not here to fail or to embarrass the City of Dunn or themselves. They are open to comments, suggestions and want to be neighborly and want to be able to work this out to the mutual benefit to the people of Dunn, the City of Dunn, the budget of Dunn and for their own economic interest. His clients want to open up this place to make money and in talking with them, he thinks they have a good idea. If there are any questions for his clients, they will be open to answer. He asked that Ms. Masan be allowed to present pictures. Attorney Pope asked if the applicant would like to provide testimony and/or introduce evidence. Attorney Jeff Stall introduced his client, Ms. Annie Masan and stated she is the main proprietor as in the financial legging behind this endeavor. Mr. Stall stated that Ms. Masan has put together a small notebook containing some pictures of their renovations to show the board that she is serious and Mr. Stall stated that Ms. Masan has asked that the pictures be admitted as evidence. Attorney Pope asked Ms. Hasan to approach the podium and identify herself. 42 Ms. Hasan stepped forward to identify herself and handed evidence /maps /pictures to Mr. Stall to provide to the Council to view. Attorney Pope stated that those items will be entered as evidence. Attorney Pope asked Ms. Hasan if there is any testimony that she would like to provide beyond the evidence that she has introduced. None were heard. Attorney Pope asked if there were any persons present that have been sworn to provide testimony that have any questions of the applicant. None were heard. Attorney Pope asked if there were any persons present that wished to speak, other than the applicant, in favor of the request for the conditional use permit. None were heard. Attorney Pope asked for testimony from persons in opposition to the conditional use permit request. Mr. Stan Williams, 330 Jonesboro Road, Dunn, NC — He and his family live across from the property. When he spoke to the Planning Board, his primary concern was that they are a residential area. Previous clubs have had problems there. He understands the business and the nature of the business can't be controlled. He is a homeowner raising his family there. He mentioned the noise and he stated there were at least three (3) times when shots were fired previously at this location. His main concern is to ensure that his family is kept safe and his community is kept safe. Earlier, there was talk about the number of security personnel they would have in place, which he feels is admirable even though sometimes no amount of security in the world can keep things like that from happening. He stated that this isn't something anyone would like across the street from their house especially when they're trying to sleep at night. Attorney Pope asked the Council if they had any questions of Mr. Williams. None were heard. Attorney Pope asked if there were questions of Mr. Williams by any other sworn persons Attorney Jeff Stall asked Mr. Williams if he understood that his clients that are here today are not the same proprietors and they have come before this honorable Council and Mayor and have made assurances and understand they have spent the money to operate a business and that is their intent. Mr. Williams responded yes, he understands that but the nature of the business itself lends itself to certain things happening. Mr. Williams stated there are things they cannot control. He applauds what they are trying to do but his responsibility is to keep himself and his family safe and in an environment they can grow in. Mr. Stall asked Mr. Williams what assurances could his client extend to him. Mr. Williams responded that due to the nature of the business, there is not a guarantee that can be given. Testimony from additional opponents Mr. Raymond Ivey stated that he lives 700 yards from 427 Jonesboro Road. His main concern as stated at the Planning Board meeting is that there have been three or four other clubs at this location and all of them are the same deal. At 2:30 -3:00 am, he has to call the police department to get them to turn the music down because the music is as loud in his bedroom as it is in the building. The last Club 75 located there, had so many people in the parking lot because the building was full; he heard gun fire. This went on constantly every Friday and Saturday night. The City police could not handle or control it when they would respond to find 400 -500 people. The county police would respond and set -up by the road. The nature of the business is going to be loud all during the night. He works seven days a week and this business is proposing to be open seven days a week. It is not a good environment to live in. His home is residential and he does not want to have a party all the time. Car loads of people from all over would come in and he heard the noise all night long. He stated that if the applicants have nine security guards and two City cops on duty, then what are they expecting. His main concern is safety. Attorney Pope asked the Council if they had any questions of Mr. Ivey. Council Member Maness asked Mr. Ivey if he lives directly across the street. Mr. Ivey responded yes, he lives 700 yards from this location. Attorney Pope asked if there were questions of Mr. Williams by any other sworn persons. Attorney Stall asked Mr. Ivey if he understands that this is not the same proprietor. Mr. Ivey responded yes, but it will be the same type business. Mr. Ivey stated that other people that ran clubs there were not the same owners either but they all did the same thing. Mr. Ivey stated that when the music is so loud that he can hear it in his bedroom at 2:00 am in the morning, and the police department is called every Friday and Saturday night, it gets old after awhile. Mr. Stall stated that the days of operation will be cut to three. He has a decibel meter on his phone and should there arise a problem, his clients are open to be contacted by Mr. Ivey. He stated that Mr. Ivey will be provided with a direct phone number to his clients. 43 Mr. Stall asked Mr. Ivey if a lot of promises have been made to him. Mr. Ivey responded that he has heard the same story from prior proprietors that they will calm the crowd. Mr. Ivey stated there is no calming down when everybody starts drinking and having a good time. Mr. Ivey stated that he was young once and he knows how the deal works. Mr. Stall stated that he is here on behalf of his clients, who have spent a great deal of money to help revitalize the community and to be a good neighbor. His clients are not here to mess up Mr. Ivey's family. Mr. Ivey responded that he understands that, but they have no control over the 400 people that come into this place. They can't tell you what kind of gun someone is carrying in their car, or what type of drugs are in their car because no one has control of that but the person driving the vehicle. The only control the applicant has is when that person walks into their club. \ Mr. Stall asked Mr. Ivey would he say that is the same at the Sizzlin or any other business. Mr. Ivey responded it could be, but they are not partying, they are eating. Mr. Stall asked Mr. Ivey if he recalled him stating that his clients would serve food in a private atmosphere. Mr. Ivey responded he understood. Testimony from additional opponents Mr. Wallace Core, 290 Jonesboro Road, Dunn, NC — He stated that he is here to speak against this club. Prior clubs could not be kept in control. It doesn't feel good to have someone in front of your house shooting handguns at 3:00 am in the morning or knocking on your window in the early morning hours. He doesn't want his family to grow up in this stuff. He has a rest home across the street from him and when the prior proprietors were there, he had to have the authorities go out there to have them cut the music down so the patients could rest. The only way the applicant will have control is when the people are inside. Anywhere you have a drink of liquor, you've got trouble. If not inside, then you have trouble outside and when it's outside, the neighbors have to suffer for it. He commends the applicant with the plans he has drawn but he is in the wrong business. A comment was made that they will serve a drink at a time; how many drinks will be served; one drink or a dozen drinks. There again, when a person comes out of the club, 90% of them will be intoxicated. When a person drinks, they just don't think. Not only is this club close to his home, but there are also residents across the field from this club that heard the loud music. He doesn't think the citizens of Dunn need anything like this; he knows they do not need it on Jonesboro Road. Attorney Pope asked the Council if they had any questions of Mr. Core. None were heard. Attorney Pope asked if there were questions of Mr. Core by any other sworn persons. None were heard. Testimony from proponent William Muwwakkil, 513 Nottingham Drive, Fayetteville, NC - His aunt lives on Vance Street in Dunn. He stated that he understands what everyone is saying about the last club that was there but he didn't attend the last club. If he is not mistaken, he thinks there was only one club in that building and he didn't attend it because it was definitely not the type of establishment that he likes to go to have a good time. He has visited his aunt in Dunn for the past four years. He is thirty years old. His sister attends Campbell University and when they get together, they all like to go out to get something to eat and have a good time at a classy location. They have to travel to Raleigh to a classy club like Solace where you have to dress -up in slacks /sneakers. He thinks the club that was there before was for 18 and up and when you deal with children like that, things can get out of hand. He thinks it will be a good opportunity for Dunn because he has to travel to Raleigh, Fayetteville, or Greensboro. He and his sister's friends are dying to have somewhere to go in Dunn for ages 25 and up. He doesn't like to party with children because they get out of hand. When you bring classy situations to an area, classy people come. Classy people stay away from clubs where you can come dressed any type of way. Attorney Pope asked the Council if they had any questions of Mr. Muwwakkil. Council Member Maness asked Mr. Muwwakkil if he lived in Fayetteville. Mr. Muwwakkil responded that is correct, he just comes to Dunn to visit. Attorney Pope entertained further questions from the City Council members for the applicant, proponents, or opponents. He explained that once the public hearing is closed, the only questions that the Council may pose to the applicant, proponents or opponents shall be for clarification. No new evidence can be introduced after closing the public hearing. Any additional conditions that the Council wishes to consider to place upon the use of the land by the applicant, must ask the applicant if he /she will voluntarily place the condition upon his /her property at this time. Mayor Pro Tern Robinson asked the applicant Annie Hasan, to define the term upscale and give a definition of what her concept of upscale would be with regard to membership. He asked what are their membership 44 requirements and age group and what evidence they have that gives the impression that this community has significant numbers to support that kind of membership. Council Member Joey Tart asked what the hours of operation will be and what will be the membership charge. Ms. Annie Hasan responded that she will let her son answer those questions because basically her son will be running the facility. Attorney Pope asked Mr. Kalim Hasan to answer the questions of Mayor Pro Tern Robinson and Council Member Joey Tart. Mr. Hasan responded that the dress attire will be business professional/dressy casual. You must be 21 to enter and 25 to be a member. The hours of operation will be 12 noon to 12 midnight (Mon -Thur) and 12 noon to 2 am (Fri -Sat) with an option on Sunday. Attorney Stall stated that he will submit that this is negotiable as far as a condition upon the use of the land. The hours of operation have been discussed to define as (3 -4) day a week operation limiting week -night closing times to 11:00 pm; furthermore, they have discussed not opening on Sunday unless they decide to do a lunch/brunch type operation if numbers support it. Mr. Stall stated they are trying to establish a membership fee in the $25 to $50 range. Mayor Pro Tem Robinson stated that he is not sure that Mr. Hasan has defined upscale. He asked what type of entertainment and music do they anticipate offering to this upscale audience. Mr. Hasan responded social, pop, jazz, R & B; limited but not subject to hip -hop. Council Member Maness stated to Mr. Hasan, that his response to one of Mayor Pro Tern Robinson's questions raises another question from him. He added that Mr. Hasan stated that you must be 21 to enter and 25 to be a member; how can someone that is not a member be able to enter. Mr. Stall responded it will be a one guest policy. Mr. Maness responded then why have a lower age for a guest than a membership. Mr. Stall responded that responsible adults will be purchasing memberships and deferring to the older members or patrons discretion with respect to who they invite. Mr. Maness asked Mr. Stall if by his definition, would someone under the age of 25 be non - responsible. /I Mr. Stall responded not exactly; they would prefer to have a 25 and up crowd. He added that as he said, it is negotiable. The legal age to consume adult beverages is 21 and rest assured that they will not be served to anybody under that age. Ages 18 -20 will not be permitted on the premises. Council Member Galbreath stated to Mr. Hasan, that he too has concerns about the age requirement. He doesn't like a 21 year old being able to enter or 25 year old to be a member. He stated that the City of Dunn has a noise ordinance. He asked Mr. Hasan what does he have in place to control the noise of car radios that may be sitting in the parking lot blasting music. He asked Mr. Hasan if he has plans for paid security. Mr. Stall responded that they have researched the possibility of a remote decibel meter; for instance his cell phone has an application for a decibel meter to measure how loud everything is. If a remote is not possible, then personnel will be equipped to go out in the parking lot to make sure everyone is in the parameters of the ordinance. Adequate security will be provided for the patrons, if necessary. Council Member Galbreath stated that he does not like the term "if necessary ". He has been to social establishments out of town and there is always some kind of security personnel on the premises. Mr. Galbreath said that if he voted in favor of this, his requirement would be that some type of security personnel would be on the premises at all times. Mr. Stall responded that he understood and that security will be arranged. Council Member Galbreath asked Mr. Hasan for his prior experience in running an establishment of this type. Mr. Hasan responded he is a program director for radio station 104.5 in Fayetteville. He has been in radio for six years and does this type of work every day for other businesses. He organizes their business for them. Council Member Maness stated to Mr. Hasan, that what he is saying is that he does not actually have any experience in running a social club. Mr. Hasan responded that as far as the style /format he is planning in Dunn, yes he does. Council Member Manesss responded that is not the way he understood the answer to the question and he thinks Attorney Stall understands. 45 Mr. Stall responded that his client and his mother, who is a large part of the operation, have always had that entrepreneurial spirit. Ms. Hasan owns a home health care company in Fayetteville and Kalim has been working for a radio station as an event coordinator. The event coordinator is responsible for the programming, music and arranging the entertainment and that experience is relevant. Kalim's entrepreneurial spirit will see him through with the help of his mom's checkbook. Council Member Turnage asked what is the current fire code capacity. Mr. Hasan responded 299. Council Member Galbreath asked Mr. Hasan if he could explain more in depth about brunch served on Sunday because he stated that Sunday was optional. Mr. Hasan responded that most businesses like to do brunch at 11:00 am which is earlier than 12 noon and that is something he wanted to include as optional plus the entertainment for a later time, if that is I acceptable. Mr. Stall stated that the brunch/lunch on Sunday is more of a possibility in an effort of full disclosure to the Council. If this is a limitation on the business, then he believes this is something that can be worked out. Council Member Galbreath offered Mr. Hasan a scenario; at 11:00 pm on Friday night a scuffle between two males starts inside the club and carries over into the parking lot with shots fired, how do you handle that situation. Mr. Hasan responded he would shut down club operations for the night. Council Member Galbreath asked Mr. Hasan what he would do if this same scenario happened the next night, is he saying that he would shut down all operations for the rest of the night. Mr. Hasan responded yes, he would shut it down. Council Member Billy Tart asked Mr. Hasan why did he select Dunn and not Fayetteville to open a club. Mr. Hasan responded that based on demographics, when he does entertainment venues, a lot of Dunn people attend and people of Dunn request a place to go. Council Member Billy Tart stated that everyone which spoke tonight was against it with the exception of one person from Fayetteville. Council Member Turnage asked Mr. Hasan how did he determine the business gap that Dunn has. Mr. Hasan responded basically from talking to the community when he does college events, etc. He plays music and understands demographics of the area and this is how he develops social events for other businesses. Council Member Galbreath asked Mr. Hasan what methods will he use to screen someone for membership. Mr. Hasan responded he can look at a person and tell where they're coming from; also with the membership process, he would like to have some sense of background; what business they work for. This is a social networking club and is for business professionals. Mr. Stall added that there will be a questionnaire and application process. Council Member Maness stated that he watched the Planning Board meeting on the government channel and he does not recall anybody speaking in favor of the proposed business other than the applicant. Council Member Tart has pointed out that they have had only one person speak in favor of it tonight, and that person is not from Dunn. Mr. Maness asked Mr. Hasan if anyone other than the applicant, spoke in favor of this at the Planning Board meeting. Mr. Stall responded that he did not attend the Planning Board meeting. Mr. Hasan responded there was none. Mr. Stall added that it is hard to garner support until you get your foot in the door and are given the opportunity to establish yourself as a good neighbor and good business person. Mr. Maness stated that if they apply the same logic that the applicant would have them listen to tonight, there is a demand for this in this area. If there was an overwhelming outcry from our citizenry to have this type of facility, he would have expected there to be at least one person from Dunn to offer a voice of support. Mr. Stall responded that he concurred. He believes that in time, that support will be shown; however, they are asking for the opportunity to get their foot in the door. They are putting an idea in the hands of the Council and asking the Council to help mold this business, based on the business plan. This is the foundation of our American economy and that is young men with the financial support of their mother at 46 times. This is a new business, offering Dunn revenues paid into the town. They are willing to acquiesce to just about anything to make this happen. Attorney Pope asked if the Council had any conditions they would like to ask the applicant to consider. Council Member Galbreath stated that the conditions he stated earlier; security anytime the business is in operation to monitor inside and outside, being compliant with the noise ordinance in the City of Dunn, set a concrete age requirement above the age of 21 for membership. Mr. Galbreath added that he is willing to give Mr. Hasan the opportunity because this is a different type of establishment as opposed to what they have had before. A social club is termed differently than a club. Mr. Hasan is a young man that sees an opportunity to provide something in our community. Everybody does not partake in these type of establishments but as the community continues to grow, there is a very diverse population here and there will be people who come from outside Dunn who may attend these type establishments. Everyone that visits a social club, does not have a drink and does not come out intoxicated. Some folks may go there for entertainment, food or conversation. They can continue to dwell on the past with prior establishments and let that leave a bad taste in our mouth but he is willing to give Mr. Hasan a chance because it is a different type of club. A social club is needed here. As Mr. Maness stated, he did not see anyone speak in favor of this club at at the Planning Board meeting but at the same time, he feels it is needed here. Attorney Pope asked Mr. Hasan as an applicant, are you willing to accept as a condition, a requirement that security personnel be present at all times, abide by the noise ordinance, and membership and attendance not be under the age of 25, limitation of days and hours as determined by the Council. Mr. Hasan responded yes, he will accept these conditions. With no further testimony, the public hearing for CU -02 -10 closed at 8:52 p.m. ITEMS FOR DECISION CONTINUED Conditional Use Permit CU -02 -10 Kalim & Annie Hasan PIN #1527 -61- 1222.000 427 Jonesboro Road This request is for the operation of a private club at 427 Jonesboro Road. This property is currently zoned C -3; Highway Commercial District. The Plannin Board met on April 27, 2010, reviewed the request and asked for comments from the public. After hearing comments from the public and the request from the applicant, the Planning Board recommended to deny this request. Motion by Mayor Pro Tem Robinson and seconded by Council Member Billy Tart to deny CU -02 -10 based on the following findings of fact: 1. The use requested is listed among the conditional uses in the district for which the application is made. Per the zoning ordinance Article IX Division 1 Section 22 -461 (7) k, the Conditional Use is listed in the ordinance. 2. The requested use is essential or desirable to the public convenience or welfare. There were people who spoke in opposition of this request at the Planning Board meeting. Therefore with the concerns by the City of Dunn citizens it shall not be desirable by the surrounding land owners. 3. The requested use will not impair the integrity or character of the surrounding or adjoining districts, nor be detrimental to the health, morals, or welfare. There will be direct impact to the adjacent area due to the fact that there are residential properties surrounding this property; therefore, the operation of a private club would be detrimental to the area. 4. The requested use will be in conformity with the land development plan. The location of this request is surrounded by the highway commercial district and a residential district which is along an average thoroughfare; the issuance of this permit will be appropriate with the anticipated growth pattern of future commercial use identified in area two of the 2030 Land Use Plan. 5. Adequate utilities, access roads, drainage, sanitation, and other necessary facilities have been or are being provided. All facilities are available at this location which is currently a vacant building. Motion to deny carried 5 -1 with Council Member Galbreath voting against the denial. ANNOUNCEMENTS The following announcements and /or comments were made. Mayor Harris ➢ The City Council will meet for a budget work session on Tuesday, May 18" beginning at 8:30 am in the Council Chambers. ➢ City offices will be closed Monday, May 31" in observance of Memorial Day. ➢ Beginning June I", City offices will observe summer operating hours of 7:30 am until 4:00 pm. ➢ The next City Council meeting is scheduled for Tuesday, June 8, 2010 at 7:00 pm at which time they will have a formation for the purpose of signing the Armed Forces Community Covenant to honor our military families. 47 ➢ Reminded the Council members to check their calendar and let Debbie or Melissa know if they will be attending Town Hall Day in Raleigh on Wednesday, June 16, 2010. Council Member Galbreath ➢ Requested that the City take action with the property at 614 E. Vance Street. He spoke with the inspections department and City Manager about the condition of the yard and a dilapidated structure that needs to be secured or removed. He would like an answer by Tuesday of next week as to the plan of action the City will take with this property. Mayor Pro Tem Robinson ➢ Asked for the help of the police department in identifying intersections with high grass. Closed Session 8:58 p.m. - Motion by Council Member Joey Tart and seconded by Council Member Maness to enter closed session pursuant to N.C.G.S. 143- 318.11(a)(3) to consult with the City Attorney to protect the attorney- client privilege. Motion unanimously approved. Closed Session adjourned at 10:03 p.m. and Council reconvened the regular meeting at 10:04 p.m. Motion by Council Member Joey Tart and seconded by Council Member Billy Tart to approve the minutes of the closed session as recorded by City Attorney Pope. Motion unanimously approved. With no further business to discuss, a motion was made by Council Member Joey Tart and seconded by Council Member Billy Tart to adjourn the meeting at 10:05 p.m. Motion unanimously approved. CITY O car N. Hatris GORPO 2 Mayor Attest: = 2 iS EAL CAROB Debra G. West City Clerk /°�