Work Session

WORK SESSION MEETING MINUTES MAY 19, 2025 PUBLIC OFFICIALS Present: Council President D'Shawn M. Doughty, Council Vice President Angela M. Blake, Councilwoman Michele R. Gregory and Councilwoman Sharon C. Dashiell Absent: Councilwoman April R. Jackson IN ATTENDANCE Mayor Randy Taylor (left at 7:35 p.m.), City Administrator Andy Kitzrow, Brad Gillis, David Layfield, Nick Simpson, Director of Infrastructure and Development Nick Voitiuc, City Clerk Julie English, City Solicitor Ashley Bosche CALL TO ORDER The City Council convened in Work Session on May 19, 2025 at 6:39 p.m. in the Government Office Building Council Chambers, Room 301, located at 125 N. Division Street. DOWNTOWN DEVELOPER STATUS UPDATE Brad Gillis of Gillis Gilkerson gave an update on the Salisbury Town Center project, which involved developing former parking lots 1, 11, and 15. He stressed that the city committed to building a public parking garage, which is a key part of their agreement. His team had met all developer obligations, including site approvals and design work. He clarified that the Salisbury Town Center project had final site plan approval, and all developer obligations had been met. He emphasized the city now needed to sign the construction management agreement, introduce a bond ordinance for the garage, review building permit drawings, and review parking garage permit drawings. He confirmed all units were market -rate rentals, $750,000 contribution toward the garage had not changed, and reiterated the city must fulfill its commitments. David Layfield of Green Street Housing summarized the SBY Market Center project: 50 affordable units above an 11,000 square foot public market. He stressed delays with the city in signing two key documents—a PILOT (payment in lieu of taxes) and a ground lease for 23 auxiliary parking spaces— were preventing financing and project progress. Mr. Layfield emphasized the need for the city to honor contractual obligations to move forward in good faith. Ms. Dashiell clarified that the target for the proposed units were 60– 80% AMI with some down to 30%. The Mayor noted that final approvals, infrastructure, and legal reviews must be completed before documents could be executed. Mr. Layfield requested early confirmation that the documents were acceptable to avoid further delays. 1 Nick Simpson of Mentis Capital Partners summarized that the Lot 10 development, which was a multi- million dollar hotel and conference center in Salisbury was funded by a Maryland state grant. He added that Hilton by Tapestry was selected, and blueprints were underway. He explained that the project was delayed because the city had not signed the subrecipient agreement, which was needed for the grant funds to flow. He requested the city approve the agreement so the project could proceed. RESOLUTIONS • Pohanka 2 Annexation (Chestnut Way) Mr. Voitiuc discussed a resolution that would annex part of the Pohanka property on Route 13. He highlighted that this annexation covers the two northern blocks of a three- block section and had been in progress for some time. He added that the annexation would allow infrastructure extensions along Route 13, including sidewalks, and bring in funds for neighborhood and city improvements. Council gave consensus to move this annexation forward to Legislative Session. • Parks Rules and Regulations Updates Mr. Kitzrow reviewed a draft of updated Park Rules and Regulations. He clarified that this was a preliminary draft intended for discussion and public input. He added that the draft would ultimately be referenced in an ordinance, which provided the legal authority and enforcement for violations. He mentioned that they incorporated feedback from prior Parks & Rec Committee meetings and from Wicomico County’s guidelines, blending those ideas with their expertise. Ms. Gregory asked for this to go back to the Committee before coming back to Council. Mr. Kitzrow confirmed this was an initial review to gauge thoughts from Council and the public before formal adoption. ORDINANCES • Ordinance to Amend Title 5 of the Salisbury City Code (Chesapeake Franchise Agreement) Ms. Bosche presented an Ordinance about a new franchise agreement for Chesapeake since the old one expired. She realized the city never passed the rules for the first one, so she added a new section to the city code to make it official. Consent was already given by the company and the City on the agreement itself. Council agreed to move forward with the legislation. PUBLIC COMMENT (Agenda Items Only) The following public comments were heard: Speaker #1 expressed that the last-minute developer updates felt like an ambush and emphasized that only the Mayor had the expertise to safeguard taxpayers. Speaker #2 stated that the developer’s presentation was misleading and that council members were not equipped to evaluate these agreements effectively. Speaker #3 detailed notes on the proposed park rules that he planned to send electronically, and he stressed that the city should prioritize broader affordable housing policies. Speaker #4 criticized the City Council for prioritizing developer subsidies over genuine affordable 2  housing. Speaker #5 highlighted key points on the park rules, suggesting consistent hours of operation, a clear ban on firearms in city parks, a conduct/harassment policy, a solid permitting process to protect city staff from liability, and more detailed rules for animals, especially the dog park. Speaker #6 urged council to expand updates beyond downtown to cover citywide development and its impact on infrastructure and services. ADMINISTRATION COMMENTS Mr. Kitzrow shared that the Safe Streets For All grant timeline was reset to five years. He added that changes from the federal level meant the city would reduce its scope, removing Carol Street from the plan. He stated that a full update would be provided at the next meeting. He thanked the Fire Department and Field Ops team for the work they put in during the recent storm. COUNCIL COMMENTS Ms. Gregory advertised that Poplar Hill Mansion would celebrate their 50th Anniversary with a gala in June and encouraged everyone to place National Night Out on their calendars. Ms. Dashiell, along with Ms. Gregory, attended a memorial service honoring officers who lost their lives locally and nationwide during National Police Week. Additionally, she added that May was Motorcycle Safety Awareness Month and reminded everyone to “Look Twice” for motorcyclists. Ms. Blake stated that the Beaglin Park Drive project was introduced about 5 years ago and there would be 40 single-family homes coming with that project. She added that Salisbury was no longer a small town, and continued thoughtful development was essential for the city’s success. President Doughty emphasized that the purpose of the discussion was to provide updates and ensure transparency rather than to sway opinions. Mr. Doughty reaffirmed a commitment to respectful dialogue, accountability, and moving the city forward. He added the importance of CPR, referencing a personal story saving a young child's life and that the fire department had monthly CPR and first aid classes. ADJOURNMENT The Work Session was adjourned at 8:02 p.m. _________________________________ City Clerk _________________________________ Council President 3 My name is Brad Gillis. I have prepared a brief statement. I will be happy to answer questions at the end. Thank you for this opportunity to provide an update on Salisbury Town Center. We are passionate about this project. We believe - it will have -a positive impact on our downtown and have been working hard on its implementation for many, many years. Our development company Salisbury Town Center Apartments LLC signed a Land Disposition Agreement with the City of Salisbury to build Salisbury Town Center Apartments on the sites commonly referred to as Parking Lots 1, 11 and 15. This agreement was amended and restated in 2023. The Land Disposition Agreement (LDA) includes the City’s Responsibility to build a public parking garage, paid for by user revenue. In LDA Section 5.1.3 – It very clearly states that The City’s commitment to build a public parking garage constitutes a material term of our agreement, without which - we would not have signed. The Land Disposition Agreement (LDA) makes it Our Responsibility to: - work alongside City Officials to ensure the public parking garage is designed to their specifications -pay all costs associated with its design -contribute $750,000 dollars towards its planning, permitting, construction and maintenance -in addition to becoming a paying customer upon its completion As Developers, we have fulfilled our commitments and contractual obligations of this agreement: -By Achieving Final Site Plan Approval for Salisbury Town Center -By Council Resolution #3263 – Gillis Gilkerson has been identified as provider for Construction Management At Risk services for designing and constructing the parking garage. -Our team met with city officials and staff on a bi-monthly basis to fully design and competitively bid all aspects of the garage’s construction. -We provided a cost for the Parking Garage which was reflected in the City’s FY23 Capital Improvement Budget -Parking Garage Design Drawings have been submitted and are awaiting review at DID Building Salisbury Town Center Apartments and the new Parking Garage is ONE PROJECT – NOT TWO. We have relied on the commitments of the City of Salisbury and have moved forward on all our obligations outlined in the agreement. NEXT STEPS: WE REQUEST: • 1) The City sign the Construction Management at Risk Agreement (CMR) that was approved by Council Resolution # 3263 in October 2023. • 2) Introduce a bond ordinance to finance the public parking garage. • 3) Review Salisbury Town Center building permit drawings that have been in DID for nearly 2 years. • 4) Review the Public Parking Garage permit drawings that have been in DID for over 12 months. Thank You For Your Time