Loading...
HomeMy WebLinkAboutMinutes 12/27/2001 4581 CITY COUNCIL SPECIAL MEETING Port Angeles, Washington December 27, 2001 CALL TO ORDER: Mayor Doyle called the special meeting of the City Council to order at 8:35 a.m. ROLL CALL: Members Present: Mayor Doyle, Councilmembers Campbell, McKeown, Wiggins, and Williams. Members Absent: Councilmembers Erickson and Hulett. Staff Present: Manager Quinn, Attorney Knutson, M. Connelly, T. Smith, and C. Hagar. Public Present: J. Harmon. Amendment to 1992 Mayor Doyle opened the special meeting, explaining the purpose was to amend the Agreement between the agreement between the City of Port Angeles and the Lower Elwha Klallam Tribe City and Klallam Elwha regarding Ediz Hook. The amendment in question was approved by the City Council Tribe at the December 3rd meeting, and certain language now needs to be clarified in the agreement. Manager Quinn explained that the words in the amendment were clearly defined as a" lease agreement," but in further deliberations with the parties involved and legal representation, the City feels there needs to be some modified language in reference to Tribal Trust. Economic Development Director Smith, after providing a brief history of the project, advised that the language needed to be changed in two ways: 1) change the size and the parcel available and 2) broaden the use of the site to not only include cultural and interpretive facilities, but to also provide for an economic development opportunity, specifically a marina opportunity. Mr. Smith further commented on the number of boat slips proposed for the marina and the extension into the tideland, accommodating boats in the $1-15 million dollar value. He then introduced Mr. Sullivan and Ms. Charles of the Elwha Tribe. Attorney Knutson explained in detail the proposed changes in the wording of the amendment. Councilman Wiggins asked for an explanation of ownership of Tribal Trust relative to a lease, and Attorney Knutson answered that Tribal Trust is a somewhat 'complicated legal concept, varying from tribe to tribe. In this situation, it relates to how property ended up as part of a reservation or some other form of Indian land. He further stated that the reason the City needs to have this language as broad as possible is to make sure that when this does get to the level of Congress, that the appropriate transfer ~anguage can be put into the Federal Law. Tribal Trust, in addition to being a ; ~ ~omplicated concept in terms of getting the land into the right ownership interest, is also complicated in terms of accompanying jurisdictional issues. Tribal Trust primarily deals with the relationship between the Federal government and the particular Tribe involved. A trust relationship exists between the Federal government and the Tribe that results from this transfer of land into Tribal Trust. There will be Federal regulations that this project will have to comply with, even though the land is in Tribal Trust. Councilman Wiggins then asked about the police powers relative to this property. -1- 4582 CITY COUNCIL SPECIAL MEETING December 27, 2001 Amendment to 1992 Attorney Knutson indicated that it will have a bearing on police powers, and that those Agreement between the powers will be handled pursuant to Tribal jurisdiction or an agreement between the City City and Klallam Elwha and the Tribe. The specifics of this issue will be further discussed as the project is Tribe (Cont'd) developed. Because security on the site is an important issue, all agreed that policing arrangements must be as efficient and effective as possible. In response to Councilman Wiggins inquiry regarding tax implications, Manager Quinn responded that the Federal government does not pay taxes on its property, so no changes would be made in terms of asset values to the City. The only monies realized would be through a Leasehold Excise Tax, in lieu ora property tax, of 12.84 per cent of the lease, which can be entered into by an agreement of parties involved. Attorney Knutson added that, once the property is in Tribal Trust, it would no longer be subject to State taxes. Director Smith indicated this issue will be discussed further with the developer, as further agreements will be forthcoming throughout the project. Manager Quinn added that the developer, the Lower Elwha Tribe, and the City are all looking at this project from a partnership viewpoint as something that will benefit the entire community. Councilman Wiggins then asked if, in signing the agreement, potential revenues will be cut off from the City. Attorney Knutson responded that a portion of land on Ediz Hook would be leased to the Tribe, pursuant to the 1992 Elwha Restoration Act, and that portion of land would no longer be subject to State taxes, whether property or leasehold excise taxes. Councilman Campbell supported Councilman Wiggins' point about closing off the opportunities for future revenues, but, from a practical viewpoint, the opportunities for realizing tax revenue off the property are slim to none in the future. He explained that a development on Ediz Hook isn't going to occur except on Tribal Trust lands, because of all the roles and regulations that are in place, so this is an opportunity, as Manager Quinn pointed out, for the City, the Tribe, and the private developer to create a good economic development opportunity which will pay dividends throughout the community. R. L. McMicken, 817 E. 6~ St., asked that the Council refer to the Treaty of 1855. Following a brief summary, Councilman Campbell moved to rescind the action of the approval of the Agreement of December 3, 2001 between the City of Port Angeles and the Lower Eiwha Klallam Tribe regarding Ed~z Hook. Councilwoman McKeown seconded the motion, which carried unanimously. Councilwoman l~¢Keown moved to anthorize the i~ayor to sign a revised amendment to the Agreement between the City of Port Angeles and the Lower Elwha Klallam Tribe regarding Ediz Hook that would be consistent with the agreement that has been presented to the Council this date. Councilman Campbell seconded the motion, which carried unanimously. ADJOURNMENT: The meeting was adjourned at 9:00 a:m. / ~ M---~yor ~ecky J. 'Wp~tl~ C~] Clerk v -2-