Mayor Margo G. Bailey called the meeting to order at 7:35 p.m. In attendance were Councilmembers Harrison C. Bristoll, Jr., Thomas A. Gross, Sr., Mabel Mumford-Pautz and J. Brian Kirby, W. S. Ingersoll, Town Manager, Joan Merryman, Stenographer, and guests.

Mayor Bailey announced that Mr. Capel was absent due to illness. Mayor Bailey asked if there were any additions or corrections to the minutes of the previous meeting. Mr. Bristoll moved that the minutes of the meeting of September 15, 1997 be accepted as presented, was seconded by Mr. Gross and carried unanimously.

Mayor Bailey asked Mr. Ingersoll if he had any report for Mr. Capel. Mr. Ingersoll said Mr. Capel had not given him anything to report, there had been no major problems. Mr. Bristoll asked about a reported water shortage over the weekend. Mr. Ingersoll said we knew nothing of any water shortage.

Mayor Bailey introduced George Beer from Gilman Corporation. Mr. Beer stated that Gilman Corporation was requesting assistance from the Utilities Commission for their apartment project on Morgnec Road. Mayor Bailey said they have received site plan approval from the Planning Commission and preliminary approval of the project from the Board of Appeals. Mr. Beer said the project would be done in two phases, the first being 72 units and the second being 60 units. The first phase would be one, two and three bedroom units for families and individuals and the second phase would be strictly for seniors. He explained their financing mechanisms and stated that for the $1.1 million loan (on Phase I) from the Maryland Department of Housing and Community Development they are required to have a commitment from the local jurisdiction. He said they are requesting that the Utilities Commission allow them to pay the hookup fees for water and sewer for the first phase over a five year period. The first payment would be made at the time of getting the permit and then five equal annual installments over the next five years with an 8% interest rate on the outstanding balance. He said they are currently pursuing state financing for the second phase.

Mr. Ingersoll said this has been done in the past for medium, or low and moderate income projects for families or seniors. He said the fees would be $216,000 for Phase I. Phase II would be 60 units at $3,000 each (if the hook-up remained unchanged). Mrs. Mumford-Pautz asked about the tenant makeup for the project. Mr. Beer said it was not public housing or Section 8 housing, but affordable housing. He said the one restriction on the State financing was that they are not allowed to rent to single college students. Mrs. Mumford-Pautz stated that existing apartment complexes do not have full capacity and asked how they expected to fill the units. Mr. Beer said the market studies they had done indicated that there is a need for moderate income housing units in the area.

Mayor Bailey stated that the Town has made these arrangements before for new construction and asked for a motion to approve the hookup fee agreement. Mr. Bristoll moved that the Town agree to allow Gilman Development to pay the hookup fees for the 72 units in Phase I of Chestertown Landing in six equal installments, the first being paid at issuance of the building permit and the remaining five paid annually with 8% interest. The motion was seconded by Mr. Kirby and carried by a vote of 4 in favor, Mrs. Mumford-Pautz opposed.

Mayor Bailey announced that the Utilities Commission has cash on hand and in banks of $266,027.45.

Mayor Bailey asked if there were any questions or comments. There being none, Mayor Bailey asked the Council to review the bills. Mrs. Mumford-Pautz moved that the bills be paid as presented, was seconded by Mr. Bristoll and carried unanimously.

Mr. Bristoll moved that the meeting be adjourned at 7:45 p.m., was seconded by Mrs. Mumford-Pautz and carried unanimously.

Submitted by:

Joan Merryman

Stenographer

Approved by:

Margo G. Bailey

Mayor RETURN to 1998 Minutes