1961 -- A lesson in Hickory's History

Over the last year my attention has been drawn to the issue in the City of Hickory involving Ward specific voting versus Modified At-Large voting in relation to representation of the Hickory City Council. When Harry Hipps ran for City Council in 2009, I honestly thought it was to our advantage to run City Wide against the incumbent Jill Patton, because I thought that he stood a better chance of people throughout the city getting tired of what many consider kowtowing to Viewmont interests. Little did I know what we were up against.

I want to preface all of this by saying that I have nothing against Viewmont. This is not about Viewmont. Viewmont is a fine community. I currently work in that section of the City. I was vocal about the upscaling of the area around Lowe’s Home Improvement and I honestly believe that the development in that area has proven beneficial to us all.

The issue that I am addressing is the overall general well being of the City of Hickory. When I look back to that 2009 election, the issue that bothered me most was the ambivalence of the vast majority of the citizens of Hickory. Most of the people did not vote. The turnout ended up being around 8.5% and nearly half of that vote came from the the precincts interwoven with the Viewmont area and Northwest Hickory, while those precincts only represent less than one-third of the city

We are not here to chastise the people of Viewmont for voting. They should be applauded for doing so. What the aim of this discussion is about is to examine why so few people vote in City elections and why those that do are disproportionally weighted towards less than one-third of the City of Hickory.

I remember going to a prospective Candidate forum at the Chamber of Commerce and there was a gentleman from Ridgeview and he kept talking about the fact that we needed to see Ward specific elections… how the people of Ward 4 (Ridgeview’s Ward) kept nominating Larry Pope only to have him defeated in the “General Election,” and how they weren’t having their issues represented. I hadn’t really looked at it from this point of view and I can tell you that most of my compatriots in the room thought this guy was being radical.

When I saw what happened with the City’s Swimming Pools issue, I woke up. I watched how the people on the City Council, basically through every step, railroaded the process to fit their own personal agenda and maybe those of a few supporters who have their ears bent. They didn’t follow proper procedures, then they set up these charettes and surveys and did not listen to the will of the public, they out and out lied to local media outlets, and then through the ring of acrimony that followed they defined this City Government by permanently demolishing the pool sites to try to bring a permanent end to the debate.

Then what followed was the mess over the redrawing of the ward maps. Mayor Wright took it upon himself to let this City be gerrymandered in an attempt to protect the current council. Going back to the 2009 election, the Mayor on several occasions made a point to promote the idea that the Council was “all of one mind.” This was true, with the exception of Alder Z. Anne Hoyle. Wards four and five were the only two legitimate races. Everywhere there was an event you saw how the current council was giddy over Hank, while Z. Anne was left to fend for herself. The current council did everything they could to keep a debate from occurring and the only way to attempt to get a message out would have been to buy expensive advertising on the radio, newspaper, or through telemarketing. And really, how effective is that?

Now we come to a point two years later where the incumbents from wards one, two, and three are running unopposed. In my opinion, this is a culmination of events that has been long in the making. Some of it falls on the current council and their desire for status and maintaining a status quo that will allow them to stay in office until they personally choose to leave; but much of this, I believe, stems from a system that my compatriots associated with the Hickory Hound have studied in association with and through the diligence of the Citizens for Equity in Government.

The Evidence - 1961

In a March 1, 1961 article in the Hickory Daily Record entitled “Changes in Hickory Charter discussed at Kiwanis meet,” we read about a presentation from the late R. Walker Geitner, who at the time was the President of the First National Bank of Catawba County. Mr. Geitner discusses the Charter Revision study that has taken place over the previous two years. It consisted of a five man committee that had been appointed by the Hickory City Council. He talks about how since some of the changes that were recommended were turned down during the February 21, 1961 meeting that his talk might be considered, in part, a eulogy.

It was in this speech that he stated, "A city exists by permission of the State. It is a municipal corporation -- not unlike a private corporation, particularly a public utilities concern. Citizens are stockholders in the municipal corporation and each one has a vote in the Board of Directors -- the City Council."

It was during that February 21, 1961 meeting that the Council approved the “Charter Revisions” that determined that City Council members would serve four year terms.

The committee submitted a report advising that voters in all wards be allowed to vote for candidates in all wards. This way, the speaker said, “the elected man would be responsible to the city-at-large and not just to a small section with no political status.”

The council, nevertheless, voted against the change and retained the old system of letting each ward elect its own alderman. In Stating his opposition to the present ward system, Mr. Geitner stated his personal belief that the needs of a section are also the needs of the whole city. He declared it is now time to do away with sections, as such, and to fight for the good of all citizens.

An article entitled “Hickory Charter Revision discussed for County Bar” from the same day (March 1, 1961) discusses Attorney Young M. Smith’s (another of the committee of five), address to the Catawba County Bar Association. In the article, he mentions that two of the five members of the revision committee were against changing to a “Modified At-Large” system. The two were fearful that if such a system were adopted it would lead to political agreements and maneuvering among leaders of wards. Atty. Smith stated that he was against “Wardism,” but the “Modified At-Large” system would be more harmful than helpful.

In another Hickory Daily Record article dated February 22, 1961, following the February 21, 1961 City Council meeting mentioned above, during which the Charter Revision was discussed, entitled “2 changes Made by Board,” Alderman Hugh Abee let it be known in no uncertain terms that he anticipated “a stink” if the election system were ever changed in Hickory. He charged that Hickory politics would return to a machine system with “Old Hickory” running the Highland and West Hickory Sections. The article goes on to speak about the tense atmosphere that occurred during this meeting. This was the first proposed Charter Revision in the City of Hickory in 48 years.

The Hound: This is Part 1 of this discussion about the issue of Ward Specific elections versus the current Modified At-Large system that we have today. How many people even know that in the City of Hickory, Council Ward Representatives used to be elected by their ward only?

When one reads the quotes from Geitner, Smith, and Abee, they will see that the origins of this issue were never cut and dried. The City Council in 1961 did not want to move in this direction. Sure they were worried about the issue of what Attorney Smith labeled “Wardism” and not looking out for the entire city, but one can also see that Attorney Smith knew that the Modified At-Large system wasn’t the answer and he probably would agree with Alderman Abee that the At-Large system would lead to “Block Voting” and machine politics where the Wards with Power and Influence would empower their will over the less advantaged wards where the working class and poor folks lived. Look at what Mr. Geitner says when he states, “the elected man would be responsible to the city-at-large and not just to a small section with no political status.”

I don’t want to submerge you, the reader, in all of this at once. I will follow up with what happened next and how we got to where the At-Large voting system came into being in the City of Hickory. This is the history of Hickory and some may say that it is ancient history and it is irrelevant to our present circumstances, but I will show you how we ended up on the path that led us to where we are today.

Hickory’s leadership in the 1960s was definitely not "all of one mind" and they seemed to never hold back in voicing their distinctive opinions. The decision to change the voting structure in Hickory was not changed through Unanimous Consent. The similarity that will be shown is that, like many issues we have seen lately with the current Council, there was no integrity of process. The end justified the means. The system changed through political maneuvering and did not allow the people’s will to even be taken into consideration. If the people are going to have their wishes suppressed to appease the desires of a small minority, then why should anyone expect the governing structure to be successful, when it isn’t going to have the support of a citizenry that they constantly undercut.

Hickory City Elections: The Results are in

As though it really matters, the results are in and they were as expected:

I do find it interesting that you had over 10% write-in votes in each ward. Each Ward saw more than 100 right-in votes. Compare that to 2009, when there were 86 in the Mayor race, 50 in Alder Fox's race, 9 in the Hoyle-Guess race, and 4 in the Patton-Hipps race. And this was even though the turnout was 2.3 times what it was yesterday. In 2009 there was only a 8.5% turnout, but yesterday it dropped to a little over 4%. That means that 1 out of 25 people who are registered to vote in Hickory, even bothered to vote.

I think that those numbers show that people want a choice. The empirical evidence shows that.people want a choice and they want a debate. In 2007, there was a strong challenge in Ward 1 and you had over 3,600 people who voted in that election. And that vote total, available for all to see at the Catawba County Board of Elections, shows that in the unopposed Ward 2 race only 2,900 people voted. Hmmm... that sure is curious, isn't it? People want a choice and many people don't care about what is going on in other wards and they don't bother to even check a box that doesn't represent themselves. In my opinion, this shows that the system does not work and things are getting worse, not better.

The Questions:
When will people see that we have a problem here? What will it take? Is it going to have to be the dire circumstances of complete collapse as Harry has talked about? We are squandering our birthright.

Is Democracy important to you? Look!!! We don't have it on the local level. Without an open system and choices, we will eventually lose all of our freedom and liberty.

How can Democracy in Hickory be saved? How can we revitalize the overwhelming feeling of apathy toward City politics? How do we inspire buy-in and get people to realize that we are supposed to be a government of, by, and for the people. It is your responsibility to participate.

The solutions are right in front of you. We have introduced a petition to bring back ward specific voting and let each ward choose their representative. That is what we used to have in Hickory and it worked for nearly the first 100 years. You have that system in the School Board races, why not City Council. You have Alders on the City Council who don't even represent their ward's interest. They represent the people from where the votes come. I will point blank show you this.

The line has been drawn and it will soon be up to the “public” (you) to choose whether to be part of the solution (sign the petition and allow the people to vote on this issue) or part of the problem (status quo); that stench of apathy, that you can't find where it is coming from, which is right under your noses, and where we are today.

Election Day in Hickory -- November 8, 2011

Election day in the City of Hickory and one has to wonder how many people will show up at polling precincts when the three incumbents are unchallenged.

I would like to say that I do support the candidacy of Rebecca Inglefield. Last year when everything was going down with the city swimming pools in South Hickory, she and her husband Dr. Joseph Inglefield were very supportive towards the cause. I remember both of their addresses to the Hickory City Council pleading for them to first not shut down the pools and second to offer some form of aquatic recreation. Dr. Inglefield even participated in creating a plan to move the creation of a new pool facility forward, but the Council of Intransigence did what they aimed to do all along and the rest is history -- for now.

In talking to the Inglefields, one senses how much they care about this community and want to see it succeed. I think she would bring the compassion she displayed during those times of angst to the Hickory Board of Education.

The one thing I hope that everyone understands is that this election is an embarrassment to the City of Hickory. This is not to say that I do not support the unopposed candidates. What bothers me is a system where no one cares to run for office. It tells you that the system is broken and needs to be addressed. I supported these three candidates four years ago, but at that time at least they were challenged. I thought at that time that they would bring some energy to the table in relation to addressing the fundamental flaws Hickory has faced in its need to generate business and commerce. But, instead we got four years of coasting and general consensus towards a Hickory City Council versus the World Mindset.

In my heart, I know that the Council are not all of the same mind. I know for a fact that they are not. But, in the end the image that they project is Unanimous Consent, because they feel that this facade of unity is where they derive their power. What they don't realize is that their methods have led to a public that doesn't care about this City, except where it meets individual personal interests, and buy and large that public doesn't know who the City Council representatives are. The Council needs to understand that they can hold office, but without community support it is going to be impossible to turn the City's plight around.

Although I found it odd, I actually have had fellow employees tell me that they didn't know who the Mayor of Hickory was.  Folks, if they don't know who the Mayor is, then they certainly don't know anything about the Council, City Manager, City Staff, or how the city operates.

Operating in the shadows does not inspire a public that has seen this City not progress for a decade. What it creates is a community where the best and brightest leave. A community where the young people go away to college and don't consider coming back. A community where people have to leave to seek a meaningful and fruitful career. People cannot afford to wait for Hickory to turn around at the Powers That Be's leisure, they need to feel that there is a sense of urgency and that local leaders are devoted to fixing the negative issues that most of us are facing in our everyday lives.

The Council and City Government has been brainstorming over the last several months about how to restore Population and Economic Growth to the community. The first thing they need to realize is that it isn't like turning  a spigot on and off. Their inaction has been detrimental. The longer they wait, the further we fall behind. As I have said a million times before, they have abrogated their authority. They always put their eggs in all of these other entities' baskets and expect some kind of reward. Look at Conover, they are investing heavily in their own community development. Yes, it is risky; but in the end they are set to reap greater rewards and they can say that they have personally done something to move that community forward. If you had to choose partners, which community would you choose?

Remembering Two Years Ago:

Harry Hipps - (The candidate who fully vetted a platform and tried to communicate with the people. He didn't talk about technology, he utilized it!)

Economic Stories of Relevance in Today's World -- November 6, 2011

Fed lowers GDP forecast, mulls more action - Reuters - Pedro da Costa and Mark Felsenthal - November 2, 2011 - The Federal Reserve on Wednesday slashed its forecast for growth, raised projections for unemployment and said it was mulling the possibility of buying more mortgage debt to spur a struggling recovery. While members of the central bank's policy-setting panel voted 9-1 to hold a steady course, one official urged more stimulative action now and Fed Chairman Ben Bernanke said Europe's debt crisis posed big economic risks. At a news conference after a two-day meeting, Bernanke said buying more mortgage-backed securities was an option to help the economy and added that the U.S. central bank was still looking for ways to give clearer guidance on its policy path. "While we still expect that economic activity and labor market conditions will improve gradually over time, the pace of progress is likely to be frustratingly slow," he said. "Moreover, there are significant downside risks to the economic outlook," Bernanke said. "Most notably, concerns about European fiscal and banking issues have contributed to strains in global financial markets, which have likely had adverse effects on confidence and growth."


U.S. Payrolls Rose 80,000 in October; Jobless Rate Fell to 9% - Bloomberg - Shobhana Chandra - November 5, 2011 - U.S. employment climbed in October at the slowest pace in four months, illustrating the “frustratingly slow” progress cited by Federal Reserve Chairman Ben S. Bernanke this week. The 80,000 increase in payrolls was less than forecast and followed gains in the prior two months that were revised up by 102,000, Labor Department figures showed today in Washington. The unemployment rate fell to a six-month low of 9 percent from 9.1 percent even as the labor force expanded.


US retail sales miss expectations - The Financial Times through Yahoo News - Barney Jopson in New York - November 3, 2011 - US retail sales climbed 3.8 per cent in October, but missed market expectations as retailers prepare for a holiday shopping season of fierce competition and volatile consumer sentiment. Sales rose for the 26th consecutive month in spite of the weak US economy, but the 3.8 per cent rise fell below forecasts of a 4.4 per cent rise and marked the first miss this year. The figures did little to alter the prevailing outlook for end-of-year shopping, as consumers say they will spend less on gifts than last year while analysts forecast that once they hit shop floors they will end up spending between 2 and 3 per cent more.


Send Citi, BofA to 'Minor Leagues' for Breakup: Mayo - CNBC - Jeff Cox - November 1, 2011 - Big banks that haven't been performing should be broken up before they become a threat to the entire financial system, analyst and author Mike Mayo told CNBC.      Referring specifically to Bank of America and Citigroup , the managing director at Credit Agricole said the institutions are classic examples of banks where shareholders should be able to step in and remove ineffective executives. Bad corporate governance — and not fundamental weaknesses of capitalism — is at the heart of why so many people distrust banks, said Mayo, who called for accountability rather than more regulation. Mayo is author of the upcoming Exile on Wall Street: One Analyst's Fight to Save the Big Banks From Themselves.


Former Fed Chairman Paul Volcker laughs at the great increase in wealth disparity over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it - Faux Capitalism - November 1, 2011 - In an October 24, 2011 interview with Charlie Rose, former Fed Chairman and fellow Bilderberger, Paul Volcker, laughed at the great increase in wealth disparity in the United States over the past 10 to 15 years, and at Americans for not speaking out more forcibly against it (starting at 18:27).

“But there is a feeling — which I’ve been a little surprised has not been expressed more forcibly before — the distribution of income, which has changed very radically in the last 10 or 15 years. And you have a situation in the United States where there’s been almost no growth in real income for the average family for 10 or 15 years, but way at the upper end of the income distribution, there’s been an enormous increase, of a kind that didn’t take place in my lifetime or even in your lifetime. (laughs)“

Rose responded with “it’s unbelievable!” — which is only genuine if he’s referring to Americans not speaking out more forcibly against it, and not the fact that it’s taken place, since he holds the Triple Crown for membership in globalist organizations where policies are discussed and made, and he regularly features fellow members on his program.     Rose posted a short 4-minute YouTube clip from the nearly half-hour interview, conveniently omitting reference to fellow Bilderberger Paul Volcker laughing at fellow Americans.


GOLDMAN SUX - Giant Squid Strikes Again at Occupy Wall Street's Credit Union - Greg Palast - October 31, 2011 - Last week, Democracy Now! and The Guardian ran our story about Goldman Sachs yanking financial support from a community credit union for honoring one of its largest customers. The customer: Occupy Wall Street. Our report so enraged Goldman that, within days, it doubled down on its attack on the little community bank. Goldman had already demanded the return of its $5,000 payment to the Lower East Side Peoples Federal Credit Union. Now, sources say, the trillion-dollar Wall Street mega-bank sent the following message to the not-for-profit community bank: "You will never get a dime from any bank ever again." About those "dimes" Goldman is taking away: They come from you and me, the taxpayers who put up billions into the Troubled Asset Recovery Plan (TARP), usually known as the Bank Bail-Out Fund.

Mortgage Fraud and the Housing Market - October 28, 2011 - Max Keiser & Catherine Austin Fitts

Kim Khardashian and the joke that is the "News" - Silence DoGood

Have you read the news, either in print, on line, or listened to the evening news and one of those ‘celebrity’ shows afterwards? I don’t, by virtue that I have a functioning brain, irregularly or otherwise partake of such shows or information. Why? I have no desire to hear about how or why some chia pet with a pretty face is skiing in St. Moritz this weekend. Hence my current state of disdain and nausea with all the latest hubbub concerning Kim Khardashian.

Can any one point to something solid or even of consequence this person has done that should justify her being splattered all over the print, internet, and broadcast media? What has Kim Khardashian done to facilitate society as a whole and perpetuate mankind? Has she invented something to make life on this planet more tolerable, noble, easier? Can anyone think of one contribution to the planet this person has made to deserve and get the celebrity status she currently has? No? Me either.

Yesterday was the breaking point with me and this little charade. She was seen on television by me, “apologizing to her fans…” Excuse me, what fans? Why does this person need or deserve fans when we’ve already established that they have done absolutely nothing of consequence with their lives. And of course, for those that detract from and stand in awe and disbelief of this poorly scripted performance in bereavement, you are labeled as “hater.” Fine, sign me up and gimme one of them labels.

First of all, we were forced to endure the ‘wedding’. We were all told how we should be excited at how glamorous this event would be. And now, as this obvious facade comes to an end, we are told how distraught and troubling it is. Please. Does anybody really care? Over half of the marriages end in divorce in this country. She’s a statistic. Granted, most last longer than 72 days, but hey, some people actually put forth an effort in some ventures.

With all that is happening and transpiring with the world, this is what we have to talk about and engage in public discourse over, Kim Khardashian, statistic. Perhaps it is a pleasant diversion from the jobless figures, the economy numbers, ills of war in Iraq, Afghanistan, and Libya. It keeps people duly occupied with their minds away from the collapse in Greece, the occupy Wall Street, Oakland, Seattle, and a dozen other places where people are fed up and taking to the streets because they’re out of options.

Do I dislike Kim Khardashian? No I don’t. I dislike what she stands for and the fact that so much time is devoted to her and she has done absolutely nothing for it. When your occupation is classified as ‘socialite’ that tells me quite a bit about the person bearing that occupation. What does it mean anyway when your occupation is ‘socialite’? What is it you do, exactly? What is it you contribute to society at all (and I ain’t talking about the bunch down at the exclusive social venue for members only)? I honestly don’t know and would sincerely like to have this paradox answered sufficiently that I can understand why these seemingly worthless people deserve the attention they receive. I dislike the fact that of all the things we should be talking about in this world today, we are diverted to what is an everyday occurrence in this nation. Kim Khardashian is a non-event. It’s almost like the Hickory News has made a comeback and Valerie is table-hopping once more at the Country Clubs.

The Hickory Hound is what the Old Newspaper was...

In the next week, I am going to be laying out a story for you. A story that took nearly a decade to be told. A story that was given detailed attention. A story that we are dealing with the ramifications of today. This story will show what we are missing. Real reporting with details and opinion. A different era.... A smaller Hickory... Yet, a more dynamic Hickory. A story where the participants points of view were expressed and where differing ideas were debated. A story which will show how the Hickory Daily Record operated under the Millhollands.

What you will understand after reading this story is that the understandings of today are not based upon the facts of history. What people need to understand is that we got to where we are today, because of that history of which everyone is ignorant. No one has told me yet why the Mayor in Hickory is voting on every issue, when the North Carolina General Statutes say that a Mayor elected by the Electorate is only supposed to vote to break ties according to § 160A-69. Mayor to preside over council. (1971, c. 698, s. 1; 1979, 2nd Sess., c. 1247, s. 3.)

We, as the public, take for granted how the local government operates without checking to make sure that they are following proper codes and procedures as established by the North Carolina Legislature. These are the checks and balances necessary to ensure that municipalities do not become corrupt. While I am claiming no issues of a criminal nature, I see issues of negligence in responsibility of fiduciary duties that are supposed to be performed.

R.Walker Geitner, who long ago was the President of the First National Bank of Catawba County, once made a statement about our local government, which is nearly verbatim of what I have expressed here on this blog. He said in a Hickory Daily Record article, which I will cite in some later works, "A city exists by permission of the State. It is a municipal corporation -- not unlike a private corporation, particularly a public utilities concern. Citizens are stockholders in the municipal corporation and each one has a vote in the Board of Directors -- the City Council."

The public is bumbling around wondering why they aren't being represented. Well you get the government you deserve. You don't care who represents you, then why should you expect them to represent you? Although it is our local elected officials duty to provide a fiduciary trust and look out for the well being of the entire populous they represent, if you trust others without checking up on their actions, then when power goes to their head, you have a hard time getting them (or any subsequent office holder) back under control; because a precedent has been established that they can do whatever they want without regard for the law.

Checks and balances need to be brought back to the political structure in Hickory. The Hound had to come into existence, because we don't have a media to ask the important political and governance questions of the day. That is supposed to be one of the major roles of the media -- the fourth estate of government. They are supposed to be a guardian of the public's interest. We have no local reporters that do any in depth research and we have local media representatives that are handed stories of relevance that they squash. We don't have any debating of the issues. You read the local paper or listen to the local radio station and you get the local establishment's view of the issues, which is typically overly optimistic about the economy and devoid of any self-criticism.... Everything is great and if we had it all to do over again, we wouldn't change a thing. Does that represent the reality of the world you live in?

I have been told that this blog is opinion based. I fully disagree. It is about much more than some general opinions. Look at the issue related to the City of Hickory Mayor voting. That is research and we aren't finished with that one yet. Look at all of the economic statistics that are cited here. Those statistics have changed more opinions than my own, because they are rooted in fact. Look at how we use Multi-Media to let people speak for themselves and delve more thoroughly into subject material relevant to discussions. Yes, I and We do choose sides of a debate. I have told you that we are advocates, but the Hickory Daily Record does the same and Hal Row does the same. They just try to create an impression that they are above the frey and non-partial, but let's all be honest, we all have opinions and our work is created through those opinions. Some of us are honest and admit it and others... Oh Well.

Newsletter about the City Council meeting of November 1, 2011

This newsletter is about the Hickory City Council meeting that I attended this past week. City council meetings are held on the first and third Tuesdays of each Month in the Council Chambers of the Julian Whitener building.

At right of this page under Main Information links is an Hickory's City Website link. If you click on that link, it takes you to our city’s website, at the left of the page you will see the Agenda's and Minutes link you need to click. This will give you a choice of PDF files to upcoming and previous meetings.

You will find historic Agenda and Minutes links. Agendas show what is on the docket for the meeting of that date. The Minutes is an actual summary of the proceedings of the meeting of that date.

Here is a summary of the agenda of the 10/18/2011 meeting. There were a couple of important items that were discussed at this meeting and the details are listed further below:

Please remember that pressing Ctrl and + will magnify the text and page and pressing Ctrl and - will make the text and page smaller. This will help the readability for those with smaller screens and/or eye difficulties. 

Invocation by Rev. David Roberts II, Pastor, Morning Star First Baptist Church

Consent Agenda
A. Approval of Bullet Proof Vest Grant for Hickory Police Department in the Amount of $13,650.00 - The Bulletproof Vest Partnership Grant Act helps states and units of local government equip their law enforcement officers with armor vests. This grant will pay up to 50% of the cost of NIJ approved vests purchased by the Hickory Police Department. Thirty-Nine vests have been requested at an estimated price of $700.00 for each vest. The 50% that is not paid for by the grant will be paid from the Police Department’s budget. The total amount of the award will be $13,650.00. Staff recommends approval.

B. Approval of Tax Refund as Recommended by Burke County Tax Collector’s Office to Terry Stokes in the Amount of $711.56. - Terry Stokes paid taxes in 2010 for an aircraft sold in late 2009 and is requesting a refund. The records have been checked and verified by the Burke County Tax Collector’s Office. Staff recommends approval.

C. Change Order No. 5 to Contract with Pizzagalli Construction Company in the Amount of $60,039.00 for the Northeast Wastewater Treatment Plant (NEWWTP) Upgrade Project - The NEWWTP Upgrade Project was initiated in July, 2010 at a cost of $21,569,382.50 for a complete upgrade of the facility. The current contract amount for this project is $21,997,896.50 which includes previously approved Change Orders Nos. 1 – 4. This project was established with a contingency fund in order to address unforeseen expenses that may arise, and Change Order No. 5 consists of 11 items that were unforeseen during design and project bidding. The two most costly items are the electrical conduit material and routing at the oxidation ditches ($36,560.00) and the modifications to the Air Handler Unit support frame ($5,006.00). The revised contract total to date will be $22,057,935.50. Staff recommends approval.

D. Budget Ordinance Amendments
1. To budget a $1,190 insurance claim check from Trident Insurance Co, Inc. in the Police Department Maintenance and Repair of Equipment line item. This payment is for lightening damage to the firing range equipment on 08-21-11.
2. To transfer $39,639 of personnel related line items from the Planning and Development operational budget to the Code Enforcement operational budget for a position which moved from Planning to Code Enforcement.
3. To adjust the Hickory Rural Fire District budget to reflect anticipated receipts of rural fire tax revenue as identified by Catawba County and budget within the Hickory Rural Fire District budget.
4. To transfer $13,650 from the Police Department Uniforms line item to the Bulletproof Vest Partnership Grant project uniform line item. The City received a Federal Grant award from the Department of Justice in the amount of $13,650 to pay up to 50% of the costs of approved vests. The local match is $13,650 and is funded from the Police Department uniform operational line item.
5. To appropriate $34,391 of Transportation Fund Balance and transfer to the Block Grant/Vision 100 Agreement – Aviation Fuel Farm project Construction and Miscellaneous line items. The project budget is $343,906 with 90% Federal funding ($309,515) and 10% local match ($34,391).
6. To transfer $2,014 of Appropriated General Fund Balance to the Grace Chapel Road/Highway 321 Connector project to pay for additional surveying, legal preparation and exhibits. This work is necessary prior to preliminary discussions with Merchant Distributors Inc. (MDI) on an agreement to exchange City owned land for Right of Way owned by MDI.
7. To transfer $10,762 of Appropriated General Fund Balance to the Police Department Justice Assistance Multi Year Grant. The Police Department received a direct grant award of $37,161 and recommends using the grant to fund a soundproof interview room ($8,128), a camera security system upgrade ($33,035) and a door locking security system ($6,760). An additional $10,762 is necessary to fund the total expenditures planned within the project. Therefore a transfer of $10,762 transfer is necessary and represents Police Federal Reimbursement balances from previous years that have rolled into Fund Balance at year end.
8. To decrease General Fund Balance Appropriated by $59 and increase the transfer from the Multi-Year Governor’s Highway Safety Program Project Grant by $59. This amendment is necessary to close the Grant project and return $59 of unused funding back to the original funding source.
9. To decrease General Fund Balance Appropriated by $1 and increase the transfer from the Justice Assistant Grant- Recovery Project by $1. This amendment is necessary to close the capital project and return $1 of unused funds back to the original funding source.


New Business - Public Hearings
1. Approve Dedication of Right-Of-Way and Deed Transfer - US 321 to Grace Chapel Road (New Farm Road and Extension of Alex Lee Boulevard) Right- Of-Way Dedication (City Property) and Property Exchange with MDI Management, Inc. for Right-Of Way Dedication by MDI - This request is for approval of dedication of right-of-way shown on plat titled, “Right-Of-Way for the City of Hickory in Caldwell County” dated September 15, 2011 by Western Carolina Surveyors, PA. The plat dedicates right-of-way from the City and MDI Management, Inc. for a new road (New Farm Road) from the existing eastern end of New Farm Road (located just east of the existing commercial shopping area) to Grace Chapel Road and the extension of Alex Lee Boulevard to the new section of New Farm Road. In exchange for land for right of-way for permanent drainage easements and temporary construction easements from MDI, the City will deed Tract 1 (3.811 acres) and Tract 2 (25.236 acres) to MDI Management, Inc. MDI Management, Inc. will be dedicating 12.202 acres of useable land for right-of-way. A majority of Tract 2 is in very steep topography and drainage area which is not easily developable, but can be used as open space with land MDI owns for future economic development. Due to time constraints, staff is requesting two readings on this matter. This public hearing was advertised in a newspaper having general circulation in the Hickory area on October 21, 2011.

Chuck Hanson made the above presentation. Timeline wise, the DOT is working to advertise the project for construction to be contracted by the end of the year to be built in 2012. The right of way for private property was purchased by Granite Falls and Caldwell County. The project received unanimous consent of the Council Members present.



2. Approval of Resolution Supporting Urban Progress Zone Re-Designation Within the City of Hickory - This request is for approval to designate the City of Hickory as an Urban Progress Zone, applicable for one year. State Legislation was passed in 2006 that created a new tax credit program, Article 3J Credits, which provides three (3) types of tax credits to eligible taxpayers who undertake the qualifying activities of creating jobs, investing in business property, and investing in real property (tier 1 only). To qualify for the credits, businesses will need to meet the 2011 3J Wage Standards that apply to Tier 2 counties. Qualifying wage for Catawba County is $592/week or $14.80/hr. Incentives include $1000 credit per job for businesses creating jobs in zone (5 job minimum) and a 7% credit for investing in machinery and equipment, with a $0 threshold. The areas designated as the Urban Progress Zone must meet the poverty level threshold, which means 20% or more of its population is living below the poverty level.

Todd Hefner made the presentation of the above information. The zone was determined by using the 2000 census. Using the current census will expand the applicable properties available to obtain these credits. Alder Fox asked about how word was going to be gotten out to advertise that these credits were available, because most businesses would not know about this. Mr. Hefner stated that "you would be surprised how many businesses do know about this and ask if they are located in the area. Their accountants let them know about it. Two companies are Fiserv and Plastic Packaging." Alder Fox continued by asking how out-of- State companies find out? Mr. Hefner responded that the City makes companies aware when they inquire about the area. Asst City Manager Wood asked if this was listed on the Website and Mr. Hefner affirmed that it is. The Credits received unanimous consent of Council.

Departmental Reports:
1. Request for Second Reading – Approve Dedication of Right-Of-Way and Deed Transfer - US 321 to Grace Chapel Road (Read Above)

2. Approval of Proposed Changes to the Vacant Building Revitalization and Demolition Grant Program, Which Includes Grants of 15 Percent of Eligible Project Costs Up to a Maximum of $30,000 - The proposed guidelines make a number of changes to the program to ensure that the level of city incentive is more in line with the scale of the project. Eligible project activities has been expanded to include interior improvements while decreasing the reimbursement percentage from 50% to 15%, which would account for the increased number of eligible activities. The program will continue to provide funding for the demolition of buildings within an eligibility area. These costs could be reimbursed at 35% up to a maximum of $20,000. The proposed guidelines also re-institute an eligibility area for the grant program, which will be called an Urban Revitalization Area. Building over 10,000 square feet located within the area could be eligible for grant funding. The building size criterion was added to ensure that projects receiving funding would be of significant scale. Smaller buildings would remain eligible for Appearance and Landscape Grants of up to $5,000 and $2,500 respectively. Applicants would also need to identify end users for at least 50% of the building square footage and any change to the end user would need to be approved by City Council. Also, the Business Development Committee will review applications and make a recommendation to City Council instead of the Redevelopment Committee.

Enacted in September 2008, 15 grants awarded. One was not completed, meaning 14 companies received these grants. Just over $250,000 paid to 14 recipients, the program was halted in February 2011 to revisit program guidelines, and new program guidelines will address staff and council concerns. Companies receiving these grants were Superior Storage (next to WHKY), Hickory Auto Parts (Aiken-Black), Hickory Mechanical - Safe Harbor, Verizon on 127 (former Hutto's), Flooring Liquidators (321 and Main Ave. SW).

Vacancies Have continued to increase. Multi-tenant retail vacancies have increased by 17% over the past year. Stand alone buildings have been more steady. The total square footage of stand-alone buildings in the Revitalization Area has decreased. The Hickory Mechanical Building would have been demolished, most likely if not for these grants.

Proposed Changes 1

Proposed Changes 2

Previous projects have not increased the tax base significantly. These projects did likely help stem declines in the tax value that would have occurred, if buildings continued to deteriorate r been demolished.


Within the Urban Revitalization Area there are 51 stand alone buildings over 10,000 square feet in the area. 78% of the vacant buildings over 10,000 square feet, in the area, were bult before 1975. These are most likely the type of buildings to qualify and be approved for funding.. This will help to develop anchor type buildings that are able to stabilize a block and spur additional investment. It eliminates some of the smaller retail and office spaces, but  they are still eligible for other grants. This area is also the most likely to be eligible for Revitalization Area Tax Incentives and Appearance Grants.

The new proposal will cover the interior as well as exteriors of buildings. More activities will be eligible for funding of the program. The threshold will rise to $75,000 from $35,000, because of the addition of authorized improvements eligible for grants. Staff recommends that proposal require an end user be proposed for 50% of the buildings usage. Staff has found that the most successful projects had an end user stated. This should address the concerns of Council that this may incentivise businesses to move across town. The Business Development Committee will supervise redevelopment applications going forward to mitigate problems that formerly put staff in awkward position of judgment in determining eligibility.

Mr. Leonetti talked about the BDC's recommendation of adding multi-family buildings to the fund in the form of allowing functionally obsolete Old Warehouses to be allowed to obtain some of these grants for conversion of these properties into residences. Alder Fox asked about the map below relating to Highway 70 Southwest and it looks like this has all been put into one Urban Area. Mr. Leonetti talked about the residential properties not being part of this program. Alder Patton talked about some of the properties that have already been upgraded in that area.

The Hounds Overall View about this meeting is that it was encouraging to see the discussions about revitalization. It is obvious to see that this is something that Alder Fox is highly focused on. I believe that her focus on the appearance of the City is important to the marketability of the City and we need to worry about the whole City and get out of the seemingly inferred mentality of denial by some that we can cordon off whole section of the City and label them economically non-viable.

I certainly believe in the Free Market, but this is not a "Free Market" issue. This is a Social Issue. This is an Eco-System issue. This is a planning and progress issue. This goes back to this era of economic consolidation that most of us see. What is happening is that when you allow the community to continually address properties as economically non-viable in the context of "Laissez Faire" economics, then you see a wave of momentum build where more and more properties within the city become non-viable. Eventually this non-viability will attack areas that the Developers thought would never be touched, because it is destroying the social viability of the community. 

If people can't make a living in the community, then they are going to leave the community. If people are subjected to living in areas that are allowed to become dumps, then they are going to leave the community. If businesses don't have a viable marketplace, then they will leave the community or will not enter the community to do business.

Certainly this is a complex issue. Alder Fox was asking Todd Hefner if businesses knew about the Urban Progress incentives. I will bet you that only the connected know about these tax breaks and grants. The same people always get this stuff. Warren Wood asked if the U.P. information was on the City's website. I have already talked before about the lack of functionality of the City's Website. It isn't about the pictures on it or the colors. It is the fact that it is clunky and there are parts of it that are completely non-functional. Once you get off of the main page of the website it is mundane, lacks interactivity, and is not user friendly. As far as technological progress, Hickory - the center of the region, has the electronic functionality from at best the 1990s. And honestly, it makes me think this is done on purpose.

But overall, I think the presentations were very good. I like the idea of repurposing the warehouses and turning some into residences. It makes me think of the mixed use property philosophy discussed during Hickory By Choice and some of the Mixed Use properties I have seen in places such as Charlotte, Mooresville, and Wilmington. Instead of building the communities from scratch, as they were done in those places, why not repurpose, revitalize, and rebrand some of these old warehouses. It is risky to a certain extent, but the payoffs could be huge.