Municipal Services and Properties Committee Meeting - November 10, 2025

The Municipal Services and Properties Committee convened on Monday, November 10, 2025, to review three emergency ordinances: the rental of large-capacity trucks for street resurfacing, the purchase of new maintenance equipment, the allocation of a payment-in-lieu-of-affordable-housing (PIL) fund, and the sale of a surplus property sliver. The committee addressed operational capacity constraints, the specific application of PIL funds to park renovations, and inquiries regarding state laws on municipal property transfers below fair market value before approving all items.

Consent Calendar

• Ordinance 351-2025: Approved unanimously. Authorizes the rental, not purchase, of large-capacity triaxle trucks with operators for the Division of Streets to support the residential resurfacing program. Commissioner Scott confirmed the city lacks the physical space, maintenance capacity, or qualified in-house drivers for these trucks, noting the fleet can only haul up to 14 tons compared to the city's smaller capacity. The contract is for one year with two one-year renewal options.
• Ordinance 1350-2025: Approved unanimously. Authorizes the purchase, lease, or lease-with-option-to-purchase of on-road vehicles and equipment (including asphalt rollers and trailers) for the Department of Public Works. The equipment will replace obsolete items over 20 years old used in the pothole repair and street general repair programs, distinct from the heavy rollers used for resurfacing. The committee clarified that these items are for small utility cuts and potholes, not the major resurfacing program.
• Ordinance 1310-2025: Approved unanimously. An emergency ordinance requiring the Director of Community Development and the Director of Finance to deposit voluntary payments-in-lieu-of-affordable-housing (PIL) received from the Heirloom Company into a fund dedicated solely to future Herman Park renovations. The ordinance designates $660,000 as the expected PIL amount from the Heirloom Company (a multifamily developer), which will be added to an existing $200,000 Councilwoman Spencer allocation. The park is currently in the conceptual design phase.
• Ordinance 1073-2025: Approved unanimously. Authorizes the sale of a 0.05-acre surplus property sliver (26ft x 95ft) located in the old Brooklyn neighborhood to resident Greg Schnadel. The property, a remnant of the Jennings Freeway construction, will be used to consolidate with Schnadel's existing land for green space and pollinator gardens. The sale price is set at the appraised fair market value of $500.

Public Comments & Testimony

• Councilman Brian Casey: Expressed strong support for the concept of neighbors maintaining city property but questioned the administrative requirement to sell the surplus lot to Schnadel rather than transferring it to him for free, given his long-term stewardship. He argued that the city's standard of maintenance is often lower than a neighbor's and that the $500 cost is negligible compared to the value added by the resident's labor. He specifically questioned the legal or policy basis for charging fair market value and noted that the resident could potentially claim the land via adverse possession if not for the specific legal protections in place.
• Councilwoman Marr: Discussed the city's current inability to transfer non-land bank properties to residents for minimal fees, contrasting it with the City Land Bank's processes for tax-foreclosed lots. She advocated for a city-wide "MOTA-owned" (Municipality to Owner) model to facilitate easier transfers of vacant city lots to neighbors.
• Councilman Harrison: Requested clarity on the state law cited by administration regarding the inability to sell property below fair market value. He questioned whether written policies exist allowing for exceptions based on "other valuable consideration" and asked the administration to provide documentation on the statutes or internal policies that govern transfers below appraisal value.
• Commissioner DeJanaro (Capital Projects): Explained that the sale to Schnadel was conducted at fair market value ($500) because state law and council ordinances require the city to sell taxpayer assets at fair market value; they cannot give them away. She clarified that while the city is immune to adverse possession claims, formalizing the title benefits the owner for future consolidation and sale. She noted that "other valuable consideration" (such as public maintenance or construction costs) can sometimes offset the monetary value in transfers, such as the dollar transfer to Metro Parks for public park use.

Discussion Items

• Large Capacity Truck Rental (Ordinance 351-2025): Commissioner Scott explained that the city cannot purchase these trucks because they lack the storage space, the specific maintenance infrastructure ("astronomical" repair costs), and the qualified drivers (requiring over-the-road experience). Director of Public Works confirmed that these trucks were used daily during the previous year's resurfacing program. Councilman Casey asked if the lack of equipment caused the delay in the previous year's program; Commissioner Scott clarified that the delay was due to contract issues with ADA (Americans with Disabilities Act) compliance, not equipment capacity.
• Heirloom Company PIL Fund (Ordinance 1310-2025): Councilman Casey asked for clarification on the nature of the "payment in lieu" (PIL) mechanism, the tax abatement requirements for the Heirloom Company, and whether the funds must remain in the same ward or can be used city-wide. Councilwoman Spencer confirmed the $660,000 is a voluntary payment because the developer chose not to build the required affordable units. Councilman Harrison questioned why a developer would choose a cash payment over providing affordable units in a neighborhood that needs them. Administration clarified that the PIL funds are deposited into a fund managed by Finance, and Council Council has the authority to direct the spending of these funds anywhere in the city, not just the ward where the development occurred.
• Surplus Property Sale (Ordinance 1073-2025): The committee discussed the distinction between "land bank" properties (tax-foreclosed) and general city-owned surplus. Commissioner DeJanaro and Attorney Jennifer Hein O'Leary explained that while land bank properties can sometimes be sold for flat fees, general city surplus must be sold at appraised market value unless specific "other valuable consideration" offsets the cost (e.g., Metro Parks taking over a public facility). They confirmed that if a resident simply maintains a lot without a formal transfer, the city still retains title and could theoretically require removal of improvements if the land were needed for public use.

Key Outcomes

• Ordinance 351-2025 Approved: The committee authorized the rental of large-capacity trucks with operators for a one-year term to support the street resurfacing program, citing a lack of in-house capacity to own and operate such heavy machinery.
• Ordinance 1350-2025 Approved: The committee authorized the procurement of new asphalt rollers and trailers for pothole and general street repair crews to replace equipment older than 20 years.
• Ordinance 1310-2025 Approved: The committee mandated that the $660,000 payment-in-lieu-of-affordable-housing from the Heirloom Company be deposited into a dedicated fund for future Herman Park renovations, working in tandem with Councilwoman Spencer's existing $200,000 allocation.
• Ordinance 1073-2025 Approved: The committee authorized the sale of a 0.05-acre surplus property sliver to Greg Schnadel for $500, affirming the requirement to sell at fair market value despite the resident's long-term maintenance of the site.
• Directives for Administration: Councilman Harrison requested that the administration provide written documentation citing the specific state laws and internal policies regarding the sale of city property below fair market value and the definition of "other valuable consideration" for future review.