SPECIAL MEETING OF THE COUNCIL OF THE CITY OF NOVI
 SATURDAY, FEBRUARY 23, 2002 AT 10:00 AM
NOVI CIVIC CENTER – COUNCIL CHAMBERS – 45175 W. TEN MILE ROAD

Mayor Clark called the meeting to order at 11:23 AM.

ROLL CALL: Mayor Clark, Mayor Pro Tem Bononi, Council Members Capello, Csordas, DeRoche, Landry, Lorenzo

Member Lorenzo stated she could not support the motion. She believed that the exhibits are a critical and integral part of the agreement. However, without having reviewed and approved the exhibits, she could not support the "agreement". She thought the agreement itself had gone way beyond the basic framework that she had agreed to since the negotiations of September/October. She stated she had made major concessions on some of the issues in terms of her individual principle opinions and opinions in terms of the City and community standards for which the City operates. When Council receives the exhibits, she might or might not change her position in terms of supporting and approving what would ultimately be the agreement.

Mr. Fisher responded that he thought that the motion, as made, because the exhibits are material, the costs estimates are deemed material to Council, that Council is not making a final approval of the agreement. If the exhibits and the costs are not satisfactory, the Council is essentially reserving every right not to approve the agreement. In that regard, he wanted to clarify, on the record, that as of this point in time without having the exhibits, etc. and without having a final agreement put together, Sandstone has not made its approval or any approval of this agreement either.

Member Capello commented that Council had been in Executive Session in excess of two hours. During that time they had the opportunity to discuss the agreement and the lack of the exhibits. He thought they were all in agreement with Member Lorenzo that the exhibits are important and that they could not approve any agreement until they received the exhibits. He said it was their understanding in the motion made by Member Landry that the exhibits are going to be important to the approval of this document and when all of the exhibits come back, they could sit down and determine if everything they want to get accomplished would be done. Out of the 50 plus page document, they each have their own opinion on what should or should not be in there. He felt Member Landry described it well that we are not all going to get everything that we want but we would have to give quite a bit, probably take nothing, to get this accomplished for the City. He noted Mr. Carson was present and said he hoped that within the 45 day period Mr. Carson and Mr. Fisher could get all the exhibits together and we can get this wrapped up.

Mayor Clark noted Council had been in Executive Session for over two hours to get to this point. He could not keep track of the numerous hours spent in meetings and negotiations on behalf of all of the residents of the City. Every Member at the Council table is mindful of their responsibility to every member of this community. We are a community of approximately 50,000 people and the decisions that they make relative to this litigation will have a tremendous impact on this community. Our best efforts have been used to get this matter resolved because we are deeply appreciative of the consequence that could otherwise fall on the community as a whole, including the seniors and young families. We are also mindful of the fact that we are dealing with this situation now in some extremely difficult economic times. Mr. Helwig, before the downturn of the economy, commented many times that these were unique economic times and the longest period of economic growth in our country’s history. That has come to a stop and we have to bear all of that in mind in our responsibility to the citizens and the impact that this litigation potentially could have upon them when we arrive at our decisions and what is in the best long-term interest of every resident of this community. That is why we have come to this point today. Nothing is "finalized" today because pursuant to that resolution, all of the necessary exhibits and documentations will have to be provided to Council subject to their review as well as the cost estimates involved in the execution of this agreement. Again, we arrived at these decisions bearing in mind that we are now looking at what has risen to a $70 million judgment with interest mounting at approximately $20,000 per day, which is an unconscionable burden to place on the residents of this community.

Mayor Pro Tem Bononi wanted to add to the persons whose interests she held paramount in everything she did on Council and that is the residents of this community that the amount of work that had gone into bringing them to this day had been prodigious on all fronts. We are requiring all information that is necessary to make a best decision on behalf of the residents of this community. The reality of this situation is that we have what we have. We could all look at what if or changes with regard to past actions, but how we confront what we have and how we  resolve our situation is the most important one. She believed that from the standpoint of asking for the information that we need to make our decision on behalf of the residents and all who live and do business here is certainly the right procedure.

Landry

Mayor Clark said this litigation involved a Special Assessment District, which involved property that Sandstone owned. We are in essence the holding agent of funds, which are to be disbursed between the principle litigants in that litigation. So, in essence all we will do is disburse funds that we have been holding as a holding agent. Mr. Fisher said that was correct. Basically, these funds represent monies that were collected by the City and unspent in connection with the construction projects involved. This is not City money but money we are returning to those properties, or in relation to those properties, that paid the money.

Nays: None

LuAnne Kozma, 23837 W. LeBost, asked if the last Executive Session had been held to finalize the deal that Council had been working on for a year? Mayor Clark said Council had approved an agreement in principle subject to all of the exhibits and attachments to the agreement that are required under that agreement being presented to Council for review and approval. Until that time nothing is "finally approved" or signed. She reiterated her disappointment with the decision it looked like Council would make. By now they could have had a vote of the people and that should have been the goal from the outset a year ago when Council began this process. She said Council knew it was against the law to sell parkland without a vote of the people and they went out of their way to deny it. She felt getting rid of the Parks Director made it a little easier for this to happen and we really didn’t hear about any other alternatives or what the possible costs of the alternatives really could have been. She felt Council had misled the public as to what those costs could have been and to this day the City has denied her Freedom of Information Act request to show how the City arrived at the often quoted but never proven figure of $237 a year, the amount it would cost the citizens if this was paid out in cash. She believed that throughout the whole process, Council had chosen to listen only to the people who agreed with their decision and pointed to them and said see, we are doing what people want because these people agree with us. This parkland that belongs to all of Novi’s citizens is being given away to a development company that is only two people. She felt Council’s decision was very short sighted and she wished there could

have been better alternatives and she thought there were. She said Council should remember that not everyone in this town believed that Council was doing the right thing. Only a vote of the people would have given us that answer. As citizens, we will be watching how this decision affects our community for a very long time.

There being no further business to come before Council, the meeting was adjourned at 11:40 AM.

_______________________________ ______________________________

Richard J. Clark, Mayor Maryanne Cornelius, City Clerk

Transcribed by: _____________________

Charlene McLean

Date approved: March 4, 2002