Gastonia City Council Meeting - January 2, 2024

The Gastonia City Council held its regular meeting on January 2, 2024, at 6:00 PM in the City Council Chamber. The meeting included approval of minutes, introduction of the 2024 Municipal Citizens Academy class, public comments, approval of a consent agenda, election of a Mayor Pro Tem, a public hearing on a tax incentive for Loray Mill Phase II, approval of a microtransit contract, and a policy change on in-kind services. The meeting concluded with a closed session for legal consultation.

Consent Calendar

• Approved the minutes from the December 14, 2023 Project Update Meeting and the December 19, 2023 Regular City Council Meeting.
• G.1: Resolution authorizing installment financing of $2,455,000 for vehicles and equipment.
• G.2: Resolution approving a minor amendment to the PY2023 Annual Action Plan for CDBG funds.
• G.3: Resolution to amend the cold weather shelter agreement with United Way of Gaston County for an additional $3,400 (discussed by Councilman Kellogg, who noted improvements and suggested $10,000 be set aside in the future).
• G.4: Resolution to award a contract for one automated side loader refuse truck for $325,627.50.
• G.5: Monthly financial report for November 2023.
• G.6: Resolution to award a network load balance system purchase for $126,000.

Public Comments & Testimony

• Mike Tamburello (2816 Colony Woods Drive): Expressed concerns about fiscal responsibility, noting the city borrows money at a higher interest rate (3.9669%) than it lends for golf course improvements (3.75%). He questioned the city lending money and suggested borrowing rates should be lower.
• Mark Sollers (1521 Nottingham Drive): Called for a tax cut in the upcoming budget, urged cuts to in-kind services and local grants, and raised concerns about the Gastonia Honey Hunters stadium management, recommending a transparent selection process and an audit of the stadium deal.
• During the public hearing on Loray Mill Phase II (H.2):
  • Alyssa Crayer (329 South Vance Street): Expressed support for revitalization but opposed 24 rental units on South Vance Street, advocating for owner-occupied residences and green space. She also raised concerns about broken-down vehicles and campers on mill property and urged commercial development.
  • Mike Tamburello (second speaking): Questioned the tax incentive, noting the property already receives a 50% valuation reduction. He asked who audits compliance and what penalties apply for non-compliance.
  • Mark Sollers (second speaking): Argued the tax grant violates free-market principles, as TriBridge Residential has $1.4 billion in assets. He requested that conditions include use of local contractors and affordable housing, and that no further tax breaks be granted on the property.

Discussion Items

• Introduction of 2024 Municipal Citizens Academy Participants: Assistant City Manager Quentin McPhatter introduced the class of 20 participants (the first full class since COVID). Each participant briefly introduced themselves; the academy runs twice a month through June with graduation on June 18.
• Election of Mayor Pro Tem: Mayor Franks nominated Councilwoman Jennifer Stepp, but deferred to council. Councilwoman Stepp nominated Dr. Dave Curlin, who was elected by voice vote.
• Loray Mill Phase II Economic Development Tax Incentive Grant (H.2):
  • Staff presented: TriBridge Residential plans a $32 million investment to convert 160,000 sq ft of vacant mill space into 143 residential units, plus a leasing office and parking. Phase III (cottages on Vance Street) is a future, separate proposal. The incentive is a 10-year declining grant (100% of taxes for years 1–2, 50% for years 3–8, 25% for years 9–10) on top of the existing 50% historic property valuation reduction.
  • Council questions covered: parking, commercial tenants (e.g., former Growlers space), rental rates (one-bedroom expected ~$1,250), and the need for environmental abatement (asbestos, lead, rotted floors).
  • Estimated annual tax value: $86,000 for first two years; utility revenues estimated at $250,000 annually. Compliance verification will be handled by Economic Development and Finance departments.
  • Councilwoman Stepp requested that the developer find a tenant for the Growlers space and re-hang the Christmas star.
  • Voting: Motion to close the public hearing and approve the incentive passed 6–1 (opponent not named in transcript).
• Microtransit Agreement with River North Transit, LLC (H.3):
  • Transportation Director Randi Gates presented a transition from fixed-route buses to on-demand microtransit (similar to Uber/Lyft) with 15-minute response times. Current fixed routes average 7 passengers per hour, have limited coverage (21 sq mi), and aging vehicles.
  • The proposed service will be citywide (46 sq mi), using 12–14 vehicles (vehicles purchased by city, drivers hired by Via). Total FY25 city cost is $1.54 million (including vehicle purchases already budgeted in FY24). The contract is for 36 months with two option years.
  • Council discussed: security (cameras, driver contact), child passengers (minors not allowed to ride alone), expansion potential, and continued use of Bradley Station.
  • Motion to approve the agreement (not to exceed $1,650,000 for FY25) passed unanimously.
• In-Kind Service Policy Recommendations (H.4):
  • Event Planner Christine Ingle presented four options: (1) capped city-paid staffing across all events, (2) waive facility fees only (applicant pays all staffing and $30 application fee), (3) council-selected events receive full in-kind, (4) hybrid. Staff noted 2023 in-kind service costs increased $13,581.65 from 2022.
  • Council discussed fairness, equity, and the burden on staff. Councilwoman Barber favored Option 2 to avoid favoritism and encourage event organizers to seek sponsorships. Councilman Curlin initially favored Option 1 but shifted to Option 2 after hearing her perspective.
  • The motion to adopt Option 2 (waive facility fees; applicant pays $30 application fee and all staffing costs) effective January 1, 2025, passed unanimously. The Christmas parade (joint with Jaycees) will remain a city event.

Key Outcomes

• Approved all consent agenda items (G.1–G.6).
• Elected Dr. Dave Curlin as Mayor Pro Tem.
• Approved the Loray Mill Phase II tax incentive grant agreement (6–1).
• Approved the microtransit agreement with River North Transit, LLC for FY25 (unanimous, up to $1,650,000).
• Approved the in-kind service policy change to Option 2, effective January 1, 2025 (unanimous).
• Entered closed session to consult with the city attorney regarding litigation (City of Gastonia v. NC Gas House Gang LLC) and other legal matters.