Newly seated Winston-Salem City Council reshuffles committees

Vivian Burke was sworn in to her 13th term on Winston-Salem council

Mayor Allen Joines and eight members of Winston-Salem City Council — all but one of them veterans of the body — pledged new investment in infrastructure and a war on poverty as they took their seats for a new term after being sworn in.

And while the roster of the body reflected little turnover, a reshuffle of committee leadership as two council veterans stepped aside, signaled a fresh start for the council.

As chair of the finance committee, Councilwoman Wanda Merschel has been recognized by her colleagues for helping the city maintain the lowest tax and fee structure of any major city in the state through a succession of difficult budget years. Her retirement from council created a vacancy filled by Jeff MacIntosh, as the new representative of the Northwest Ward, but also created a leadership vacuum on the finance committee.

The council voted unanimously on the motion of Mayor Pro Tem Vivian Burke to appoint Robert Clark, a four-term Republican who represents the West Ward to chair the finance committee. The surprise was that the slate moved by Burke promoted Councilman James Taylor Jr. from vice-chair to chair of the public safety committee.

Robert Clark is the new chair of the finance committee.

"I have been the public safety chairman for 36 years," Burke said after the vote. The councilwoman, who has represented the Northeast Ward since 1977, added that she talked with her son, Judge Todd Burke, her campaign secretary, Naomi Jones, and her campaign manager, Wayne Patterson.

"I said, 'God has blessed me, and I'm not going to serve as chairman anymore,'" Burke recalled. "The mayor had made that recommendation that I would. And I called him and I said, 'I have something to say.' I said, 'I want to move away from being chairman of public safety.'... I feel that [Taylor] would do a good job. He is committed. I want you to know that it was a choice, and I think the city will be in good hands with James Taylor as our chairman."

Councilman Dan Besse will replace Clark as chair of the public works committee, and Councilwoman Molly Leight will replace Besse as chair of the general government committee. Besse said he requested the switch.

"I've had a particularly strong interest especially in our transportation infrastructure services ever since I've been on the council and wanted the opportunity to press forward in development on that end," said Besse, who is beginning his fourth term. "I thought I would have the strongest chance to do that as chairman of the public works committee."

James Taylor Jr. will chair the public safety committee.

Several council members are interested in putting a new bond issue before voters for a referendum next year. That includes Besse, who said he will push for funding for a streetcar system and intersection improvements, along with new sidewalks and bike lanes.

Clark said the city's roads and parks have been neglected because of budget constraints over recent years.

"I will be suggesting to this council that it is now time to seriously look at a general-obligation bond on a referendum," he said. "It has been 13-plus years since we've put a bond before voters and I think those resources are needed to get this city back to where it needs to be."

Joines said the new council needs to quickly put together a strategic plan and a capital improvement plan to prepare for a bond issue next year. The mayor, who has served three terms, has acknowledged the widening wealth gap in Winston-Salem over the course of his reelection campaign, and quickly pivoted to a gesture of economic reconciliation during his remarks.

"If Winston-Salem itself is to reach its full potential, we have to find a way to address the unacceptable levels of poverty in our city," the mayor said. "The poverty levels for families in our community were 21 percent last year, and 17 percent of our households qualify for food stamps. Certainly, educational attainment is a critical factor. For instance, the poverty rate for individuals with a bachelor's degree is only 5 percent, compared to 34 percent for individuals who do not finish high school. So dealing with this issue is certainly the right thing to do morally. But it's also the right thing to do because it affects us all and eventually becomes a burden on the taxpayer."

Dan Besse takes the helm of the public works committee.

Joines said that Councilman Derwin Montgomery, who represents the East Ward, and NC Sen. Earline Parmon have talked to him about the issue.

"So I propose that we create a poverty, work and opportunity task force to review the issues surrounding poverty, inventory the various programs in place now and to identify new programs that should be developed to address this issue," Joines said.

Leight, who has represented the South Ward since 2005, sketched similar contours in her remarks.

"I would like to see our city and council members not only continue our economic growth — the muscle of our city — but also put that growth to use for those amongst us who need the help the most: the hungry, the homeless, the have-nots," she said. "I pledge to direct my attention to the heart of our city, towards those poor and without homes and food, especially those children who go to school hungry. I also pledge to direct my attention towards quality-of-life issues — shall we call it the soul of our city. Those issues have had to take a back seat during the past few years. A quality city funds parks, libraries, museums, which in fact, in turn, become economic drivers for the city."

Councilman Denise D. Adams predicted "difficult decisions about taxes" to pay for raises for police officers and firefighters and to finance new infrastructure and quality-of-life initiatives. And consistent

Molly Leight is the new chair of general government.

with her reelection campaign, Adams pledged to widen the city's redevelopment focus from downtown to outlying residential areas.

"Everybody wants to come home to a nice community block where there might be a coffee shop, or there might be some small businesses, or there might be some areas where children and families can come to do recreational things — nice sidewalks, more bike trails and greenways, better paving," she said.

While many council members reflected on two or three terms, Burke's comments summed up a record 12 terms in office.

Burke said that with the help of Assistant City Manager Greg Turner she calculated that she has spent 3,320 hours in official meetings to handle council business, not even counting community meetings.

"Tell me that I'm not committed and dedicated," Burke said. "There's no debate."

The Northeast Ward councilwoman talked about how during her tenure on council she has watched an area of Hanes Mill Road transition from a tree canopy to retail development.

"And some of you might not like to hear about Wal-Mart," Burke said. "But I tell you — I told the constituents I represented: 'I cannot say no; this time I'm going to say yes.' And we put Wal-Mart there. It created so many job opportunities. It made for people to have better homes. So we are interested in economic development."

MacIntosh, as the sole new member of the council, credited his colleagues with helping the city retain its AAA bond rating and steering Winston-Salem through the recession.

Jeff MacIntosh is the newest member of council.

"I think we're on the verge of being able to do some really great things," he said.

Merschel did not attend her final council meeting because of an unexplained medical issue, but City Manager Lee Garrity read from a written statement received by e-mail. Merschel thanked staff, fellow council members, her husband, family and friends and her successor, but singled out fellow council member Burke for praise.

"A special thanks and congratulations to my longtime friend, Mayor Pro Tem Vivian Burke, on her historic election," Merschel said. "Her dedication to our community is legendary."

Winston-Salem council urges citizens to express outrage to state lawmakers on guns in parks

People stand to express opposition to a state law denying municipalities authority to regulate concealed guns in parks.

Winston-Salem City Council voted to update its local ordinances to reflect legislative changes by the NC General Assembly to expand the areas in city parks that citizens can carry concealed firearms to playgrounds, greenways, and biking and walking trails, but under protest.

The vote gave people on both sides of the gun-control debate an opportunity to vent their feelings.

City Attorney Angela Carmon said that under the state law passed by the Republican-controlled General Assembly this year, the only areas that cities may prohibit concealed firearms are playing fields, and then only under certain circumstances such as when games are scheduled. She said that if the city failed to make the update, the entire ordinance could become unenforceable.

"This issue is not about the Second Amendment, which all of us up here support," said Councilman Dan Besse, a Democrat who represents the Southwest Ward. "It's not about the right to own guns to protect yourself in your home and your family. It's not even about the right to have a concealed-carry permit. This is about forcing concealed guns on the rest of the community in our parks and greenways and public spaces."

Besse called the state legislation "wrong-headed and dangerous." Councilwoman Molly Leight, a Democrat who represents the South Ward, piled on by saying it was "ignoble" and "goes against any logic."

Council approved the amendment to the ordinance by a vote of 7 to 1, with Councilwoman Derwin Montgomery, a Democrat representing the East Ward in dissent. Councilman James Taylor Jr., a Democrat representing the Southeast Ward, said he wished he could abstain, but his vote counted as a yes.

A dozen or so supporters of gun-owner rights, including Pat Kleinmaier, a Republican candidate for the North Ward seat on council, gathered outside City Hall before the meeting. Some wore stickers stating "Guns save lives." A security officer Lankford Protective Services told them they could not carry signs into council chamber, and some citizens voluntarily surrendered their poster-board props to him. The meeting drew both gun rights supporters and gun-control advocates, who filled council chamber and a committee room set up with a live video feed to accommodate overflow. Police said about 85 people showed up for the meeting.

Brian Reese of Kernersville, who said he spends time in Winston-Salem doing business, was one of the few gun-rights supporters who spoke during the public comment period.

"I see it as an individual's right to life," he said. "I as an individual want to make sure I stand a fighting chance to survive any encounter that I come across. So it's not the Second Amendment trumping property rights. To me, it's an individual's right to life.... It's that .38 revolver that gives a four-foot, 90-pound woman a fighting chance against a guy my size. It's a great equalizer."

The city council also passed a resolution expressing opposition to the state law. Council members note that the city's greenway system is composed of easements granted by private property owners, and City Manager Lee Garrity said the law is silent on whether the property owners retroactively ceded their right to prohibit concealed firearms on their property when they granted easements to the city.

The resolution reads, in part: "It is extremely imperative that citizens and members of the North Carolina General Assembly understand that Session Law 2013-369 not only arrogates control of municipalities over their own parks but it creates potential conflict between private property owners and greenway users wishing to carry concealed weapons."

Garrity added that the city parks are supported by city funds paid by city taxpayers, and that the city is liable if anyone is injured in a fall.

Councilwoman Wanda Merschel, a Democrat who represents the Northwest Ward, apologized to constituents who conveyed easements without knowing that they were potentially allowing greenway users to bring firearms on their property.

The resolution goes on to urge citizens who have expressed outrage over the city's inability to prohibit concealed handguns in its parks to share their concerns with state lawmakers.

Republican state lawmakers from Forsyth County, including Reps. Debra Conrad and Donny Lambeth, pledged to clarify the legislation as it affected greenways during a joint meeting with council members earlier this year, but stopped short of saying they would restore the city's authority to regulate guns in its park system.

Mayor Pro Tem Vivian Burke, a Democrat who represents the Northeast Ward, expressed scorn for the Republican-controlled legislature, stating, "It's an embarrassment to say you're from the state of North Carolina because of the behavior of some of these people in Raleigh," but then went on to vote against the resolution. She joined Councilwoman Denise D. Adams, a Democrat who represents the North Ward, and Councilman Robert Clark, a Republican who represents the West Ward.

Clark, like many of his colleagues, said he objected to the state legislature seizing authority from local government, but explained his objection to the resolution as tactical.

"Charlotte picked a fight with Raleigh, and they no longer control their airport," he said. "Asheville picked a fight with Raleigh, and they no longer control their water system. If we pick a fight against Raleigh, we could end up losing control of our parks. I just think the old adage applies that you don't bring a knife to a gunfight."

City council also approved $4 million in incentives to Wake Forest University Health Sciences for expansion of the Wake Forest Innovation Quarter on the eastern flank of downtown. Specifically, the funds will be used by Wexford Equities LLC to develop a 230,000 sf lab and office facility and parking deck at the northeast corner of East 5th and Vine streets in the space formerly occupied by Reynolds Tobacco's Building 90 South.

Under the deal, the city would provide payments equal to 65 percent of the net taxes paid by the owner over an 18-year period. Deputy City Manager Derwick Paige said the incentives would be paid annually and only after the tax payments were received. The non-profit owner also agrees to keep the property on the tax rolls for an additional 20 years after the initial 18-year period. Mayor Allen Joines said that combining $2.3 million in tax revenue in the first 18 years and $7 million in the next 20-year period, the city would gain an almost $10 million in the deal.

Taylor said the deal would not have happened without incentives from the city.

In other action, city council approved a plan to move forward with the creation of three district police stations, although Merschel noted that the resolution does not commit any city funds to the initiative. The resolution also identified the Lucia building as the facility to house the district station in the southeast part of the city.

The council also voted to rename Civic Plaza — bounded by 3rd, Street, 4th Street, Town Run Lane and the Strollway — in honor of Merschel, who is retiring from council at the end of this year.

The resolution cited Merschel for being the first woman appointed to chair the city council's finance committee, helping the city garner recognition for maintaining the lowest combined tax and fee structure of any major city in North Carolina, along with supporting downtown initiatives such as "Restaurant Row," BB&T Ballpark and the downtown business improvement district.

Merschel wiped away tears as the resolutions was read.

"I've gone through 16 of the most difficult budgets in this city's history and never cried," Merschel said. "But I am honored and I am humbled. I can think of no greater honor than to have a green space in our community's living room that will bear my family's name."

IMAGES: Victors and losers of Winston-Salem's primary election

Created with flickr slideshow.
Here are some photos that didn't make it into our Winston-Salem primary election package for our print edition today. As of early Thursday morning our website has not been updated due to technical difficulties, but pick up a hard copy of the paper to see our election coverage.

1. A weary Mayor Pro Tem Vivian Burke meets with supporters outside the Mazie Woodruff Center as polls close. Burke garnered 53.8 percent of the vote against two challengers, propelling her to a 10th term as council representative for the Northeast Ward. (photo by Jordan Green)

2. Brenda Diggs (right), an unsuccessful challenger in the Northeast Ward, watches President Obama's speech on Syria with campaign manager Nigel Alston and former Mayor Martha Wood during her campaign watch party at Galilee Missionary Baptist Church. The results were not final, but campaign members knew the news would not be good. (photo by Jordan Green)

3. Mayor Allen Joines greets campaign co-chair Steve Strawsburg at his campaign headquarters on Liberty Street after learning that he had won about 85 percent of the early vote. (photo by Jordan Green)

4. Northwest Ward Councilwoman Wanda Merschel (right) congratulates Jeff MacIntosh (back right) after his Democratic primary win in the ward that Merschel currently represents. Also pictured: John Merschel and Susan MacIntosh. (photo by Alex Ashe)

Winston-Salem council approves first entertainment district

Ziggy's, a Winston-Salem music venue, is in the heart of the new entertainment district.

The Winston-Salem City Council said, "Let it rock!" with a lopsided 7-1 vote on Monday night to approve an entertainment district encompassing Ziggy's and the District Roof Top Bar & Grille, drowning out the objections of neighbors to the south in the Downtown Arts District.

The applicants, represented by consultant Drew Gerstmyer, lined up support from a powerful set of influential players, including the Downtown Winston-Salem Partnership, the Wake Forest Innovation Quarter and Goler Community Development Corp., whose leaders spoke in support of the rezoning, which is designed to protect entertainment venues from complaints by residents.

But the president of the Downtown Arts District Association and a couple business owners on Trade Street urged council to turn down the request, citing concerns about public safety, sanitation and parking.

Councilwoman Molly Leight, who represents the South Ward, cast the lone no vote.

"Downtown is like Legos; it's building blocks," said Councilwoman Wanda Merschel, the Northwest Ward representative. "And this community has been bringing out our Lego set for years and years. We brought out the expanded sidewalks. We brought out two ways on 4th Street. We brought out the restaurant row. This community has just put Lego after Lego after Lego out there. And one of the next things, I hope, will be a business improvement district, because we don't want to be guilty of our own success.... I view this as just another key Lego piece going into the development of downtown."

Mayor Pro Tem Vivian Burke echoed Merschel's sentiment that the city has invested too much in downtown development to not take the next step.

The council's action creates an entertainment district with relaxed regulations for noise to encourage entertainment facilities catering to young people north of 7th Street on either side of Trade Street, reaching beyond 9th Street.

"I think the thing all of us are talking about is the concern for safety," said Kathy Gaultin, president of the Downtown Arts District Association. "We have a lot of businesses that are currently in the proposed area of the district. We have a lot more traffic than we used to have. We also have a lot more sanitation issues. We have a lot more safety issues. I don't know if more people misbehave or we just have a larger demographic."

Antonina Whaples, a 25-year-old Wake Forest University graduate, recently took over Kindred Spirits, a new-age store on Trade Street, with her husband, an Iraq war veteran. She said the entertainment district would imperil the nearby arts district south of 7th street, especially fledgeling business owners.

"My main concern is that this entertainment district isn't going to assist in the younger generation's ability to make entrepreneurial success in Winston-Salem, especially downtown," she said. "I don't think I have to tell any of you that it's hard out there for college graduates. I worked for an entire year after graduation as a bagger. Through ingenuity, hard work and an excellent business loan I was able to make this happen.

"I'm very concerned that this entertainment district is going to bring in some energies to the downtown district that is not going to be supportive to the artists that are downtown," Whaples continued. "Artists are the kind of people we need without the worry of our rent going up, insurance increasing because of worries about theft and dangerous people downtown after hours. There's concerns about those things. When people are inebriated, the danger increases. I don't have to tell you being a young woman, it's dangerous to walk out of your store at night. You want to feel comfortable."

Will Knott, a member of the arts district association, noted that the district already has a number of bars and restaurants, some of which are members of the association. He said the galleries that operate during the daytime are challenged when patrons of the bars who are over-served leave their cars parked on the street overnight. Finnigan's Wake, the Silver Moon Saloon and Single Brothers are among the bars located on Trade Street south of 7th Street.

"We are a vibrant, but we are a fragile neighborhood — small businesses, many of them that are marginal in their profitability," Knott said.

"The E district would also encourage crime — just sort of natural, goes with it," Knott added. "I've talked to Drew and his people, and they understand and talk about additional security, but it is a factor. It can create a seediness that the art pioneers have worked hard to get rid of. The tourists — 60 percent or so of our business comes from out-of-town people. If tourists, people in the hotels, don't feel comfortable, they're not coming down. They're not buying art."

Councilman Robert Clark, who represents the West Ward, acknowledge the growing pains that attend balancing growth between art galleries and entertainment facilities.

"Knowing there's a lot of beer served," he said, "I have a feeling we may have a problem with public urination."

Larry Olds said a provision in the ordinance when council created the new zoning category last November that prohibits other entertainment districts within a mile radius was "a serious oversight and mistake."

"We should have several entertainment districts in downtown," he said.

Greg Carlyle, owner of the Millennium Center at 5th and Trade streets, did not attend the city council meeting. But minutes from the June 13 City-County Planning Board meeting reflect that he stated that the zoning change would put him at a competitive disadvantage because he will be ineligible to rezone his property as an entertainment district.

Three speakers lined up in support of the initiative.

"I think this represents progress," said Jason Thiel, president of the Downtown Winston-Salem Partnership. "I think in some cases you do want to allow for the higher volume of music and outdoor entertainment. I think you see that in most of the cities that we compete with as peers."

Eric Tomlinson, president of Wake Forest Innovation Quarter, said he had recently been at an establishment near 7th and Trade streets "winding down" with a group of colleagues.

"I had a lot of fun doing that," he said, "and I can see how that would attract a lot of youth and a lot of energy into our city."

Michael Suggs, executive director of Goler Community Development Corp. — a nonprofit involved in housing development and other revitalization efforts in the area directly to the east of the entertainment district — also urged approval.

"We think it's going to be a good thing that's going to spur some economic growth in the area," Suggs said. "If you look at the picture, it's literally the hole in the doughnut. It's not connected to any particular development. We think doing this type of project, it has the potential to connect particularly the area of Kimberly Park to some of the things that are happening."

Councilman Derwin Montgomery, who represents the East Ward, said the rezoning represents an opportunity to lay a foundation for a harmonious mix of uses in an area that to date has few residents "with the understanding that when you move in residential you'll have that understanding between those two."

"Other cities are watching us to see how this works," Montgomery concluded, "and I think we're going to be an opportunity for others around the state to be able to copy what we've done here in Winston-Salem."

Disclosure: YES! Weekly's publisher is a part owner of Ziggy's, one of the subject properties in the new entertainment district.

Winston-Salem council approves merit increases in budget vote

Councilwoman Wanda Merschel (left) and Councilman James Taylor

It played out a little bit like the reality TV show "Survivor" in reverse.

After Winston-Salem Councilman Derwin Montgomery made a substitute motion to eliminate raises for council members, three hands went up immediately with the remaining five members hesitantly joining: No one wanted to be left alone on the island.

Not that some council members hadn't fought for the raises.

Only moments earlier, Councilman Dan Besse had cited the "symbolic value" of council members giving themselves a pay raise of about $150 per year when spending for many departments and community agencies was being reduced. Besse proposed that pay increases to council members be deleted and council members be allowed to redirect the funding to whatever line item they chose.

Councilman Robert Clark belittled the proposed funding streams as "a slush fund," and voted against the measure, along with Mayor Pro Tem Vivian Burke, Councilwoman Wanda Merschel and Councilwoman Molly Leight.

When the finance committee took the final pass through the budget last week, Merschel, Clark, Leight and Burke declined Besse's request to take the council member raises out of the ordinance despite Besse's threat to vote against the budget if they remained.

The $378.9 million budget sets the tax rate at 53 cents per $100 of valuation, expands bus service to Sundays and provides three-tiered merit increases to employees. City leaders said 70 percent of property owners will see their tax bills go down, based on the recent revaluation that resulted in lower values for most.

Under the compensation plan, employees recognized as top performers will receive 3-percent raises, while those deemed "strong" will be rewarded with 2.5-percent increases and solid workers will earn 1.5-percent raises.

Councilman James Taylor Jr. noted the city employees who crowded into the gallery to witness the vote.

"As I look over the room, I see some of our first responders, some of the men and women who drive our buses and who do the work that needs to be done for our city," he said. "We want to make sure that we are retaining the brightest and the best, and I believe this budget, this merit increase is a road to doing just that."

David Pollard, president of International Association of Fire Fighters Local 682 representing city firefighters, hailed the raise.

"We've just seen the League of Municipalities study showing how far behind other cities we are," he said. "We're not anywhere near competitive. Hopefully, they'll continue to improve pay."

Pollard also said the firefighters union considered it a "big win" that the city retreated from a proposal to eliminate three fire inspector positions, instead opting to cut one slot that was already vacant.

Ramona Eller, a driver with Winston-Salem Transit Authority's Trans-AID program — which provides door-to-door service for the elderly and disabled — was one of several uniformed employees who attended the meeting. She applauded the vote, but said it was inadequate.

"I think it's not enough because of the hard work we do," she said. She added that she moved to Winston-Salem from Illinois, where she received significantly better pay for a similar job.

In fact, raises for transit workers are hardly a done deal. Budget Director Ben Rowe said after the meeting that the city council vote did not cover transit workers. The transit authority, which operates independently but depends on city funding, will negotiate raises in coming weeks with Transport Workers Union Local 248, which represents employees. Rowe added that the transit authority's budget is funded sufficiently to pay for the same level of raises as employees in conventional departments stand to receive.

Burke cautioned employees that they should expect to earn any raises, and warned against favoritism.

The mayor pro tem said there are "many employees who work and never look at the clock. They come early; they leave late. Now, if you're going to be realistic, the taxpayers are also looking at the employees who are out in the field. They know what they're doing and what they're not doing.

"Also, I said to the city manager: 'Some come and they bring too many of their personal problems to the job,'" Burke added. "So if they come, let them come and do their jobs, and they wouldn't have time for anything but the job that they have been assigned to do. And I think we've talked about the supervisors when they are grading the employees, there'll be no buddy system. If people are working, we are going to give them credit, and we want it to be done fair across the board."

Winston-Salem council moves toward sale of coliseum and stadium in racially divided vote

City Manager Lee Garrity and former Alderman Virginia K. Newell

Voting along racial lines, a narrow majority of Winston-Salem City Council directed staff to move forward with the sales of Lawrence Joel Veterans Memorial Coliseum and Bowman Gray Stadium today.

The proposed sale of the two city facilities to separate universities yokes together two transactions that tap into an undercurrent of racial division, while satisfying and antagonizing a complicated mix of constituencies — on one hand offloading the coliseum to Wake Forest University in a deal that could downgrade the name of an honored black native son, and on the other handing off the stadium to Winston-Salem State University and discomforting predominantly white car-racing fans who patronize the facility.

Councilwoman Wanda Merschel, who represents the Northwest Ward, made the motion during a committee of the whole meeting today to bring the proposed sale to council for consideration at its next meeting on May 20. Councilwoman Molly Leight, who represents the South Ward, seconded the motion. Council members Robert Clark and Dan Besse, who respectively represent the West and Southwest Wards, also supported the measure.

Mayor Pro Tem Vivian Burke and Councilman Derwin Montgomery, respectively representing the Northeast and East Wards, abstained, while Southeast Ward Councilman James Taylor Jr. voted in opposition. North Ward Councilwoman Denise D. Adams was not present for the vote.

"Most of the pain of selling the coliseum has to do with potentially losing the name Lawrence Joel," Leight acknowledged. 

Joel was an African-American Army medic and Winston-Salem native who won the Congressional Medal Honor during the Vietnam war for saving the lives of at least 13 American soldiers during a firefight with Viet Cong forces in Bien Hoa province in 1965. Joel was recognized for crawling across the battlefield with a plasma bag under enemy firefight, self-medicating himself after getting shot twice during a 24-hour firefight.  

The meeting was attended by former Alderman Virginia K. Newell, who made the motion in 1986 to name the coliseum after Joel, and Martha Wood, a former mayor who also played a role in honoring the Army medic.

"The black community looks at it as something good that we have given the city," Newell told City Manager Lee Garrity in the hallway outside a committee room in City Hall after the vote. "Make them keep the name."

Garrity responded, "They want the naming rights."

Wood urged council members to reconsider their decision in an e-mail today.

"If the city council is willing to forfeit this community war memorial and sell the right to change the name of Lawrence Joel Veterans Memorial Coliseum, then you have an obligation to the citizens to present simultaneously a plan that will preserve with dignity, honor and in perpetuity a significant memorial to our veterans and Lawrence Joel, who earned the country's highest military honor.

"As we embark on our centennial celebration," Wood added, "it's appropriate to reconsider with care and diligence where and how the current proposals lead us."

As part of any potential sale of the coliseum, Wake Forest University has agreed to retain the name "Lawrence Joel veterans memorial" in the main lobby and two outside plazas that flank the entrance, and to maintain information about Joel on the facility's website. Otherwise, the university would receive all other naming rights for the facility.

As part of the vote today, council has directed staff to look into whether the university would agree to retain Joel's name on the electronic marquee sign on University Parkway.

Wake Forest University Athletics Director Ron Wellman told YES! Weekly last week that the only way the university can make the deal work is through the sale of naming rights to a corporate sponsor considering that the facility loses money and needs significant capital improvements such as a new HVAC system.

The city has appraised the coliseum at $33.1 million. After deducting $8 million for operating savings, $14.3 million for capital needs avoidance, $1 million for events and lease commitments, and $1.8 million for deed restrictions, the city is offering the facility for a purchase price of $8 million. That's roughly the amount that the city needs to pay off the debt on the building.

"We are not going to be profitable with this coliseum," Wellman told council members tonight. "We view this as an investment in our growth. It is an investment in our basketball program."

In contrast, Winston-Salem State University has agreed to a restrictive covenant requiring the name Bowman Gray to be retained at the stadium. Gray, who was white, was the former president and chairman of RJ Reynolds Tobacco Co. 

Unlike the coliseum, the stadium breaks even. The city appraised the stadium at $9.9 million. After deducting $2.5 million for capital needs avoidance, $1.7 million for environmental factors, $750,000 for event and lease commitments and $750,000 for deed restrictions, the city is offering the facility to the university for $4.3 million.

Council members leaning towards the sales offered different rationales for unloading the properties.

"The original question is, why are we considering selling the coliseum?" Besse said. "The truth is that we're looking at it because it's eating up $400,000 of taxpayers' money every year."

Clark said, in contrast, that if he ultimately votes for the sale of the coliseum and the stadium, it will not be because of money.

"Should we be in the coliseum business?" he asked. "Should we be in the stadium business? My gut feeling is that it's not our core business. The university is not going to earn a profit off of this, but it benefits them because it helps create the total college experience for their students. They can make the improvements without us having to go to the taxpayers. Wake Forest University has to go tap their alumni for the new HVAC."

Merschel said she is eager to see both Wake Forest University and Winston-Salem enhance their respective brands through televised sporting events at the coliseum.

Taylor drew the strongest line, stating that the coliseum should retain Joel's name if the city sells it. But Wellman gave no indication that the university was willing to budge on that point.

When asked after the vote what level of commitment he would need from Wake Forest University to the Lawrence Joel name, including marquee sign placement and reference during televised sporting events, Taylor didn't hesitate.

"All of it," he said.

Winston-Salem City Council passes resolution against Citizens United

Councilman James Taylor greets resolution supporters.

Winston-Salem City Council voted 5-2 on Monday night to approve a resolution opposing the Supreme Court's 2010 Citizens United v. Federal Election Commission decision.

A compromise between Councilman James Taylor Jr., the resolution's sponsor, and Councilman Dan Besse, passed with little discussion following about three months of shuttling to and from committee and wrangling over language and intent. The changes were made to address reservations expressed by Besse and garner his vote for the majority.

"When you start to see federally, on the state level and even locally in other cities that money was being placed over the people, I think this resolution sent a clear signal to everyone in our city that we won't put money over people, that people matter," Taylor said.

In addition to Taylor and Besse, the resolution garnered support from council members Vivian Burke, Denise D. Adams and Derwin Montgomery. Robert Clark and Wanda Merschel voted against the measure. Councilwoman Molly Leight, who had earlier expressed support for the resolution, was absent from the meeting.

With approval of the resolution, Winston-Salem joins Greensboro, Durham, Raleigh, Asheville and Chapel Hill in opposing the controversial Supreme Court ruling, which allowed so-called "super PACs" to spend unlimited cash in media advertising buys to influence elections as long as the expenditures are not coordinated with any candidate. 

The Winston-Salem council's resolution expresses opposition to "the Supreme Court's interpretation of the Constitution in Citizens United v. Federal Election Commission regarding constitutional rights for corporations."

The compromise resolution struck language calling on Congress to amend the Constitution to overturn Citizens United, calling instead "for the reversal" of the decision without naming any specific mechanism. But the title of the resolution still includes a reference to a Constitutional amendment.

To appease Besse the resolution also removed language stating, erroneously, that the Citizens United decision "declared corporations to be persons."

The final obtained by Besse removed the language articulating the stance that "only human beings, not corporations, are endowed with constitutional rights protected by the First Amendment," and avers instead that "the rights of corporations and other artificial beings under the First Amendment may be restricted to a greater degree and in a different manner than those of natural persons."

Supporters celebrated approval of the resolution at Foothills Brewing after the council meeting. Kim Porter with Occupy Winston-Salem said the resolution would not have passed without help from several organizations, most notably Democracy North Carolina, whose personnel helped gather more than 1,300 signatures on a petition.

"James Taylor has worked very diligently with residents of the city and different groups involved in this process," Porter said. "Many people told us that a corporate town like Winston-Salem would never pass a resolution against Citizens United. I'm glad we proved them wrong." 

Wanda Merschel's conflict of interest on Mast General Stores

Winston-Salem City Attorney Angela Carmon tells YES! Weekly that Councilwoman Wanda Merschel, who chairs the city council's finance committee, recused herself from council votes on incentives to Mast General Store because John Cooper, an official with the company, serves on the board of directors of Piedmont Federal Savings Bank. Merschel, who represents the Northwest Ward, is employed as a senior vice president at the bank, and Carmon said the board plays an instrumental role in setting salaries for senior employees.

John Cooper purchased the original Mast General Store in Valle Crucis with Faye Cooper in 1980, according to the company's websit.

Carmon said she discussed how the relationship could pose a potential conflict of interest in a verbal conversation with Merschel.

EDITORIAL NOTE: Carmon initially said that a "Mr. Coe," who owns the building where Mast General Stores might potentially locate, was the person who serves on the board of directors of Merschel's employer, but called back to correct her statement.

Previously.

Winston-Salem council honors departing reporter Laura Graff

Laura Graff, who covers city government for the Winston-Salem Journal, attended her last city council meeting tonight.

The meeting, a public hearing on the city manager’s recommended 2012-2013 budget, was mostly an opportunity for council members to listen to the public, but Councilwoman Wanda Merschel, who chairs the finance committee, said council members might make remarks on one topic.

Merschel persuaded the visibly embarrassed Graff to stand and come up to the podium. Members of the audience spontaneously applauded the reporter.

“We just wanted to take the opportunity to thank you,” Merschel said. “You have always, I think, been fair, and you’ve worked really hard to get the material for your column, and I know Jeff Green knows he is losing a valuable asset to Winston.”

Merschel kidded Graff about being nervous at the podium considering how many citizens she’s written about who have stood in that spot.

“I’ve really enjoyed covering you guys,” Graff said. “I think that all of you have been really helpful.”
 
Graff told council members she’s returning to her home state of Ohio to work for “a really awesome newspaper” in Columbus – presumably the Columbus Dispatch – but her brother lives in Winston-Salem, so she’ll be back to visit.

“Laura’s one of the best reporters we’ve had covering City Hall in my many, many years being in City Hall,” Mayor Allen Joines said. “Very fair, but a talented writer. And a tough reporter, as she should be. So best of luck in Ohio.”

Streetcar desires and budget realities

Winston-Salem may have to wait for a streetcar system.

City leaders are getting cold feet about putting a $100 million bond issue, which would include funds for a streetcar system connecting Winston-Salem State University and Baptist Hospital, on the November election ballot as they anticipate consecutive tax increases just to cover basic services such as keeping police officers employed. The council had contemplated a modest tax increase of about 1 cent to cover debt service on the bond.

Budget challenges faced by the city include an anticipated 11-percent decrease to the property tax base with revaluation next year, the loss of federal stimulus dollars for police salaries, increased fuel costs, and plans for the city to kick in more for employee salaries and healthcare benefits.

For all of these reasons, City Manager Lee Garrity told the city council’s finance committee this evening that he is recommending that there be no bond referendum this year.

“The latest numbers for the first quarter of this calendar year are very concerning,” he said. “Sales of houses are up, as you may have read, but the price versus assessed value is down. A house in Forsyth County right now on average is selling for 11 percent below tax value. What that means for us going into the year after next with the budget is pretty significant.”

Garrity said the city has learned that Reynolds American has finished closing its Whitaker Park plant, resulting in millions of dollars of equipment and machinery being transferred either to Tobaccoville in Forsyth County or to locations overseas.

“That’s almost a million-dollar revenue hit for next year,” he said.

The city projects a $10.5 million budget gap for the next fiscal year, and a $17.1 million gap in fiscal year 2013-2014, including an $8 million loss from the revaluation. Staff recommends that council spread the pain over the two years by levying consecutive tax increases of 5 cents and 4.75 cents respectively.

The 4.75-cent tax increase would maintain revenue neutrality from the standpoint of the city.

“I think we need to explain that even though the tax rate may increase, the value of your underlying property has gone down, so you would not be paying more property taxes,” said Councilwoman Wanda Merschel, who represents the Northwest Ward.

Garrity cautioned against assuming that a revenue-neutral tax increase would be painless to city residents.

“The commercial part of the real estate base is probably going down more than the residential, so shopping centers — all those type of properties,” he said. “So that will cause more of a transition of the tax burden from the commercial base to the residential base. Many residents… will see a tax increase.”

Among the cost-savings ideas floated by staff are phasing out police officer positions, eliminating commercial garbage collection, looking at recreational centers that are underused, implementing a hiring freeze and excluding police new hires from the city’s local retirement plan.

“There are ways we can responsibly cut the size of the [tax] increase and we should,” said Councilman Dan Besse, who represents the Southwest Ward, after the meeting. “Unfortunately, I don’t think we can avoid some increase without making irresponsible cuts to public safety and services. I think it would be irresponsible to lay off 33 police officers.”

Council had planned to hold a workshop to discuss a wish list of projects that could be funded through the floated $100 million bond package.

“I’m suggesting that it might be prudent not to have that meeting,” Garrity said.

Besse said if the council decides against putting the bond package on the ballot this year, it should be resigned to wait until 2016 because the tax increases presented to taxpayers this year and next are likely to sour voters on a new bond.

“In the off-year elections we have a smaller turnout of the electorate,” Besse said. “On average, they are going to be more impacted by local factors in terms of their thinking than in a presidential election year. The presidential election will give us the broadest audience for the argument for the investment that the bonds will represent. If we determine that we can’t forward to the voters the investment package this year, then I think we should plan on having to wait until 2016.”

Besse indicated after the meeting that he hasn’t given up on the possibility of financing a streetcar system through a bond referendum this year, stating that council members have yet to come to a decision. He said the streetcar system would spur investment and increase the city’s tax base.

“We get a big, new economic benefit from a streetcar system that we don’t get from anything else we’re talking about,” he said. “This is a tough set of years to talk about a discretionary public investment even when the long-term return would be enormous.”