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Council approves sewer bid, grants downtown event-use permit; rezoning approved for properties south of railroad

2793597 · January 27, 2025
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Summary

At its Jan. 23 regular meeting, the Palestine City Council awarded a sewer-line construction contract, approved a specific-use permit for an event center at 112 West Oak Street, approved rezoning for properties south of the railroad from industrial to mixed residential and voted to reissue an RFP for the old Memorial Hospital lot.

The Palestine City Council on Jan. 23 approved several routine and land-use actions, including awarding a construction contract for a sewer-line replacement, granting a downtown event-center specific-use permit and approving partial rezoning of properties adjacent to the railroad.

The council voted to award the Lacey Street sewer-line replacement contract to Construction LLC for $371,967, selecting the lowest of five bids received. Councilman Sean made the motion and Councilman Gibbs seconded; the item passed on a voice vote. City staff said the work covers a section of East Lacey near the courthouse and that the city will restore service and perform required recirculations after the line is replaced.

The council approved a specific-use permit to allow a hall/reception/banquet use at 112 West Oak Street in the downtown Main Street overlay. Susan Diggs, planning staff, told the council the city received three notices in favor of the permit and three in opposition. Applicant Taylor Thompson spoke during public hearing and answered council questions; the council then approved the permit (motion by Councilman Gibbs; second by Mayor Jordan).

On a separate land-use request, the council considered a rezoning petition for lots on Kentucky and Ohio streets adjacent to the railroad tracks. A prior motion to approve the full rezoning failed; later the council adopted a narrower motion to rezone the parcels on the south side of the railroad to Mixed Residential while leaving the parcel(s) north of the tracks zoned industrial. The motion to rezone the south-side properties was made by Councilman Connor and seconded by Mayor Jordan; the motion carried.

On development-facing property, the council decided to reissue the request for proposals for the old Memorial Hospital lot after staff reported only one incomplete response to the RFP. Council moved to republish the RFP for an additional 60 days so potential developers have another chance to respond; the motion was seconded and passed.

Votes on the record were taken by voice; the transcript records “aye”/“motion carries” for passed items but does not include a roll-call tally for individual yes/no votes. The council also directed staff to prepare follow-up materials (see discussion/decision below).

Ending: The council completed these items before continuing other agenda business, and staff will return any required contracts, reissued RFP materials or ordinance amendments to a future meeting for final paperwork or action.