STATE OF KANSAS
WYANDOTTE COUNTY
CITY OF KANSAS CITY, KS
)
)) SS REGULAR SESSION, THURSDAY, FEBRUARY 16, 2006
)
The Unified Government Commission of Wyandotte County/Kansas City, Kansas, met in
regular session, Thursday, February 16, 2006, with eleven members present:
Gilstrap,
Commissioner At-Large First District; DeSeure, Commissioner At-Large Second District;
Barnes, Commissioner First District; Miller, Commissioner Second District; Mendez,
Commissioner Third District; Mitchell, Commissioner Fourth District; Kane, Commissioner
Fifth District; Pettey, Commissioner Sixth District; Cooley, Commissioner Seventh District;
Ellison, Commissioner Eighth District; and Reardon, Mayor/CEO presiding. The following
officials were also in attendance:
Dennis Hays, County Administrator; Hal Walker; Chief
Counsel; Carol Godsil, Deputy Unified Government Clerk; and Doug Bach, Deputy County
Administrator.
MAYOR REARDON called the meeting to order.
ROLL CALL: Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell,
Kane, Reardon.
INVOCATION was given by Commissioner DeSeure.
THE AGENDA for February 16, 2006, was presented.
Carol Godsil, Deputy Unified
Government Clerk, announced that the Commissioners had received in their agenda packet a
notice regarding a joint meeting between the Unified Government and the City Council of
Bonner Springs. That meeting has been scheduled for Monday, February 27, at 6:00 p.m. to be
held in the council chambers at the Bonner Springs City Hall.
MAYOR’S AGENDA
ITEM NO. 1 – 040186….RECOGNITION
Synopsis:
Recognize graduates of the Citizen Training in Government Operations class.
February 16, 2006
They were:
George Breidenthal, Lenka Brown, Marcella Cade, Beverly Darby, Steve
Esslinger, John Ferguson, David Flowers, Maudella Hall, Megan Hall, Cedric Hooks, Sherry
Masson, G. Matz, Robert McGill, Rebecca Mendenhall, Debra Michel, John Mueller, Maggi
Mueller, Chester Owens, Jr., Shawn Paxton, Mitzi Schwein, Mitch Schwein, Norman Scott, Ron
Starbuck, Elena Super, Martin Theonnes, Wendy Williams, and Cecilla Ysaac.
Action:
Recognition of the Citizen Training in Government Operations class.
CONSENT AGENDA
Mayor Reardon asked if there were any set-asides on the Consent Agenda. There were none.
Commissioner DeSeure made a motion, seconded by Commissioner Ellison, to approve the
Consent Agenda. Roll call was taken and there were ten “Ayes,” Pettey, Cooley, Ellison,
Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 1 – 060013….RESOLUTION
Synopsis:
Request approval of a resolution of intent to issue $5 million in Multifamily
Housing Revenue Bonds for Crestwood Partners, LLC, submitted by LaVert Murray,
Development. This will allow for the purchase and rehab of the 124 unit Crestwood Apartment
complex located at 2100 N. 57th St. The developer will pay $20,000 in bond issuance fees. On
January 30, 2006, the Economic Development & Finance Standing Committee, chaired by
Commissioner DeSeure, voted unanimously to approve and forward to the full Commission.
Action:
RESOLUTION NO. R-40-06, “A resolution determining the intent of the
Unified Government of Wyandotte County/Kansas City, Kansas, to issue its
Multifamily Housing Revenue Bonds in the amount of approximately $5,000,000
to finance the acquisition, rehabilitation, installation and equipping of a
commercial apartment facility in Kansas City, Kansas, for the benefit of
Crestwood Partners LP, and Assigns.” Commissioner DeSeure made a motion,
seconded by Commissioner Ellison, to adopt the resolution. Roll call was
February 16, 2006
taken and there were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure,
Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 2 – 980072….ORDINANCE
Synopsis:
Request approval of an ordinance authorizing the issuance of $2.5 million of
Transportation Development District Sales Tax Revenue Bonds (NFM-Cabela’s Project), Series
2006. On September 15, 2005, the Unified Government, at their regular meeting, voted 10-0 to
create the Transportation Development District.
Action:
ORDINANCE NO. O-19-06, “An ordinance authorizing the issuance of
Transportation Development District Sales Tax Revenue Bonds (NFM-Cabela’s
Project), Series 2006 in the maximum principal amount of $2,500,000 of the
Unified Government of Wyandotte County/Kansas City, Kansas, for the purpose
of paying certain transportation project costs in connection with the NFMCabela’s Transportation Development District; and making certain covenants with
respect thereto.”
Commissioner DeSeure made a motion, seconded by
Commissioner Ellison, to adopt the ordinance. Roll call was taken and there
were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes, Miller,
Mendez, Mitchell, Kane.
ITEM NO. 3 – 990035….ORDINANCE
Synopsis:
Request approval of an ordinance providing for payment of a pension to Huberta
Groneman, widow of George T. Groneman, Sr., retired City Clerk, under the provisions of
Charter Ordinance No. 86, submitted by Hal Walker, Chief Counsel.
Action:
ORDINANCE NO. O-20-06, “An ordinance providing for the payment of a
pension to Huberta Groneman, widow of George T. Groneman, Sr., retired City
Clerk of the City of Kansas City, Kansas, under the provisions of Charter
Ordinance No. 86.” Commissioner DeSeure made a motion, seconded by
Commissioner Ellison, to adopt the ordinance. Roll call was taken and there
February 16, 2006
were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes, Miller,
Mendez, Mitchell, Kane.
ITEM NO. 4 – 020208….PLAT
Synopsis:
Plat of The Whispering Pines Phase 2, Lot 23 Replat, located at Edith and 128th
Street and being developed by Jones and Jones Development; submitted by L. Allen Greenwood,
Surveyor; and Frederick Backus, County Engineer.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner
Ellison, to approve. Roll call was taken and there were ten “Ayes,”
Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes, Miller, Mendez,
Mitchell, Kane.
ITEM NO. 5 – 970128….CHANGE REQUESTS
Synopsis:
Communications from Eugene Bryan, Jr., County Appraiser, regarding 2004 tax
year Change Request #21941 and #21973-removal w/refund, and 2005 tax year Change Request
#21970-removal w/refund.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Ellison,
to approve.
Roll call was taken and there were ten “Ayes,” Pettey, Cooley,
Ellison, Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 6 – 970013....APPOINTMENTS
Synopsis:
Appointments to Boards and Commissions: Clark Bazy to the Rental License
Appeal Board, 2/16/06 – 10/1/09, submitted by Commissioner Ellison; Darlys Jenkins to the
Wyandotte/Leavenworth Area Wide Advisory Council on Aging, 2/16/06 – 11/18/07, submitted
by Commissioner Ellison; Gil Pintar to the Board of Zoning Appeals, 2/16/06 – 12/16/09,
submitted by Commissioner Cooley; and Mary Shepard to the Landmarks Commission, 2/16/06
– 10/1/09, submitted by Commissioner Barnes.
February 16, 2006
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Ellison,
to approve. Roll call was taken and there were ten “Ayes,” Pettey, Cooley,
Ellison, Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 7 – MINUTES
Synopsis:
Minutes from Regular Sessions of January 19, 2006; and Special Sessions of
January 26 and February 2, 2006.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Ellison,
to approve. Roll call was taken and there were ten “Ayes,” Pettey, Cooley,
Ellison, Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 8 – WEEKLY BUSINESS MATERIAL
Synopsis:
Weekly Business Material dated February 1 and 8, 2006.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Ellison,
to receive and file and authorize fund transfers. Roll call was taken and there
were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes, Miller,
Mendez, Mitchell, Kane.
PUBLIC HEARING AGENDA
ITEM NO. 1 – 980072….ORDINANCE
Synopsis:
Request to hold a public hearing and adopt an ordinance establishing a
Transportation Development District (TDD) of six-tenths of a cent for the Legends Shopping
Center and property referred to as West A in Village West where the new Target and JC Penney
stores are being constructed, submitted by Doug Bach, Deputy County Administrator. The
current three-tenths TDD in this area will be eliminated at the end of June with this TDD amount
starting July 1, 2006. On January 19, 2006, the Unified Government, at their regular meeting,
voted 7-2 for approval.
Doug Bach, Deputy County Administrator, stated this is the public hearing for the
Transportation Development District, which is being set out for the area in Village West. The
February 16, 2006
parts of the area include the Legends Shopping Center and the area which was commonly
referred to as West A, or the area in which the new JC Penney and Target stores are at.
The
purpose of this TDD, which is slated at six-tenths of a cent, will be for transportation
infrastructure in and around this area. Part of that infrastructure is improvements which will be
made to Hutton Rd., which proceeds north from 110th Street going north up toward Leavenworth
Rd. Approximately $2.5 million will be dedicated for this purpose.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
Commissioner Miller asked what is the total dollar value of this TDD? Mr. Bach stated it
should generate $16 million. Commissioner Miller stated we’re going to use $2.5 million for
roads on Hutton Road. The $13.5 million is going to where? Mr. Bach stated it goes into
different parts of the project area.
A large portion of this will go toward the parking garage.
Commissioner Miller asked isn’t the parking garage now being paid with STAR Bonds? Mr.
Bach stated it was contemplated that STAR Bonds would go into that project area; however, any
that would have been can be used in other parts of the project area through the plaza or other
STAR eligible project cost. It has to go into site infrastructure. There are different uses for
which you can use STAR Bonds versus which you can use TDD dollars for. TDD dollars are
eligible uses which can go into the parking garage. Commissioner Miller asked what are the
total STAR Bonds issued in the Legends portion? Mr. Bach stated $60 million.
Commissioner Barnes stated we have a transportation system that is stressed financially. They
have added this route to their daily operations and I thought we could assist our transportation
department since this is a TDD. I didn’t know if we could stretch these dollars to subsidize our
transportation department. I would hope that sometime in the future, we might be able to address
that to some degree. This has cost additional dollars to be spent on behalf of our bus system and
it is stressing out their finances for them to keep that daily schedule going out there and it is
February 16, 2006
necessary that they do because it is being used. I thought it would be a grand plan if we could
have found some dollars to assist our local bus transportation system and free up some dollars to
make it happen. It would be so much appreciated.
Commissioner Pettey stated it appears that of major developments that have occurred around
us, almost every one of them have used a special taxing opportunity like the transportation tax to
enhance the infrastructure. Mr. Bach stated it appears to have become very common in these
types of development areas.
Some of them go up to a full penny for the taxes being charged.
When you talk to the developers, they’ll argue that it is a tax being placed back on them and they
have to figure out ways to enhance the development coming to them and it is their tax. On the
other side of it, we look at it as a subsidy tax that we allow them to put on. It is a very common
tool that’s being used for development. Commissioner Pettey asked with this addition, would
this put us out of line with neighboring communities like Roeland Park? Mr. Bach stated I don’t
think so. If you compare it to special shopping districts like this, when someone looks at if they
are going to spend $100 on an item, are they going to become concerned about paying the extra
70 cents for the item if they shop in this area. Most retailers tell us no.
Rita D’Agostino, RED Development, 4717 Central, KCMO, stated we have these types of
financings, especially the Transportation Development District type financings with those kinds
of projects, and they are subsidized all over the country now. Our experience is there is
absolutely no effect in terms of someone spending the additional 70 cents. The shopping
experience in our experience is if you make it comfortable for people, that’s the experience they
want to have and 70 cents is not going to detour them from that.
Commissioner DeSeure asked before we had this TDD in place, how were we going to pay for
Hutton Road from Parallel to Leavenworth Road? Mr. Bach stated we did not have Hutton
Road to this full magnitude into our budget. We had a partial repair work on Hutton Road put
into our debt which we would have funded out of our general fund. Commissioner DeSeure
asked what that amount was. Mr. Bach stated $825,000 to be used for repairs on that road.
Commissioner DeSeure stated that was coming out of property taxes. Mr. Bach stated that is
correct. Commissioner DeSeure asked was it a CMIP or debt financed? Mr. Bach stated it
February 16, 2006
was debt financed.
Commissioner DeSeure stated so we also had interest that was going to
incur on that and now we are going to enhance that project that is going to be paid for by sales
tax dollars from visitors outside of our community, and it’s not going to be on the back of the
general taxpayers from their property taxes. Mr. Bach stated yes, and it will be significantly
enhanced from what we would have been able to do to it.
Commissioner DeSeure stated we
use STAR Bonds to enhance the quality and the magnitude of the appearance with the Village
West concept development. By taking those dollars from the garage and being able to use that
additional $5 million to enhance further the attractiveness, it should make it appealing to even
more people outside the community by putting those dollars into other projects that we can now
use. Mr. Bach stated yes.
Commissioner Miller stated if we’re going to use that argument, let’s make it a full penny and
pay off another $12 million of our CMIP debt which is pretty strong. What I’ve heard from the
developer, another ½ cent is not going to hurt anyone. This is $12.5 million subsidy for a
development I don’t dispute, but I think we all have to remember this is a 20-year commitment.
While we might not be at a competitive disadvantage today, we might be tomorrow.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Mendez,
to approve the TDD as proposed in the agenda packet
Mayor Reardon stated we are considering an additional portion of tax, which we are
considering on other projects. We have evidence that this has been used in every major project
of the scope that we are talking about at least many of the major ones that have occurred recently
and ones that are coming forward. If you take a look at the one in Olathe that’s going to include
Bass Pro, there’s a penny for the special district tax there which would take their combined total
tax to 8.525. Commissioner Miller makes a good point. Why are they recommending we go to
six-tenth, and what does that get us with respect to this development specifically? I think that is
what needs to be addressed tonight.
Mr. Bach stated the six-tenth comes from the standpoint of trying to target how much money
was trying to be generated from the TDD to get to that $15-16 million. The projects that are
February 16, 2006
being done, specifically when you look at it, we are talking about a parking garage which costs
$12 million. Throughout the rest of the RED Shopping Center project area, there were many
additional things that they came up with that looked like would be promising to put into the
Legends Shopping Center. They are all eligible STAR Bond expenses. By doing the TDD, you
could move the STAR Bonds that were here into the Legends Shopping Center and use the
funding to go forth and use the TDD money to offset and do the parking garage cost. That is the
primary use of the TDD funds. Some of the TDD funds can be used in some intersections and
other costs that are being finished. That is primarily the use of the TDD money.
I don’t know that I can really address the penny fully. I can say it seems a couple of the
project areas, being Zona Rosa and KCI, have went to the top of that margin by putting a penny
on so they are at the top. Do you want to be at the top of that chart? You could go up another
few tenths and still be in the range of all these other major retail projects which generate a
significant amount of money. When it comes to looking at projects, you have to tie a particular
capital project to an area. We can’t go to this and say it’s a project a mile or two away from it
and say this road needs improvement. I know throughout the area in the western part of the
community, we have many roads that could use some improvement out there but we can’t just tie
it to them. It has to connect into the project area. We would have to look at some future
improvements that might come along, like Parallel to the north. It has to be something that
connects into the site before you can tax it according to the state law back into the project area.
Dennis Hays, County Administrator, stated there are two relevant points that need to be shared
with the Commission and the audience this evening. At the time the development agreement was
approved with RED a number of years ago, that was at a point in time when the final design of
the shopping center, the Legends, was not known at that point.
The other major variable that
has come about since that time is a dramatic increase in construction cost. In sitting with the
developer, there was a clear option of reducing cost, cutting the scope of the project, cutting
some of the amenities on the project site. In the discussion that staff had with the developer, our
goal was to try and maintain the quality of the development at the highest levels that we had
committed to you and the community.
In doing so, we were able to use these funds to offset
those increased construction costs and ensure that we have one of the highest quality projects in
the region.
Commissioner Barnes speaks to the creativity of trying to deal with issues, in fact,
February 16, 2006
from the Commission was a suggestion if there is a way to transfer funds from this particular
project to offset our internal capital improvement costs. As was discussed earlier, it was an
$800,000 amount that will be reduced from city cost from future debt of the taxpayers. Also, the
project will be expanded dramatically. Hutton Road, north of Parallel, will be a dramatic
improvement of what we had originally anticipated, so there is direct benefit that was based on
creativity. The notion that the Commission suggested that perhaps we should pursue that was the
source of that original idea to try to find a way to expand the use of these TDD dollars.
Commissioner Miller stated in looking at the sheet that we have before us, I noticed that there is
an effective date. How many years do they go out? Do we know how long the Roeland Park
Transportation Development District is? That is pertinent to this discussion. Mr. Bach stated I
don’t know that off hand. Commissioner Miller stated to do a TDD, let’s say we decide at
another time to do the other four-tenths of a cent on this project, does that require the developer’s
approval to do that. I think if we pass this, we should pass this subject to our option to increase it
four-tenths of a cent at a future date as part of that agreement. If we do have another revenue
strain, we don’t have to have the discussion if the developer agrees or disagrees with the
monetary amount.
My. Hays asked if the developer would be willing to commit to an additional amount should the
Commission wish to extend that at a later point in time?
Ms. D’Agostino stated I don’t believe
the lead developer, Dan Lowe, would have an objection; however, I would say that the petition,
as it is written right now, would have to be amended because it doesn’t follow the statute. I
would have to go and get final approval on that but I don’t think there would be an objection.
My original conversation that we had with Mr. Bach was do you want to be at the top or the end.
Mr. Hays stated I think what Commissioner Miller suggests is perhaps the Commission should
reserve it’s option to extend that to a higher level. If the developer has no objection, the primary
property owner, then there, in fact, could be an abolishment as we have done on other TDD’s and
abolish the original and reissue. That would address the state statute problem and concerns that
bond counsel might have.
Mr. Bach stated you would have an agreement by them and leave
this petition in place and structure an agreement that this property could add up to a four-tenths
of a percent for a related transportation project at a future date. That would be a separate type of
February 16, 2006
agreement. It is identical to what we have done in the agreement with Schlitterbahn on their
project area where there is a proposed portion of their funding looking for TDD but the reminder
of that, the option comes back that the Unified Government can enact it and if we need to do
related infrastructure around that site.
Mr. Hays asked Mr. Walker, as it relates to bond counsel reviewing what is being discussed here
this evening, would it be possible to proceed forward with this particular action if it was subject
to the developer’s approval and the contingency that’s been discussed here being verified by
bond counsel, being signed off by the developer, that we could proceed forward contingent upon
that agreement being finalized as an additional contingency upon this transaction. Hal Walker,
Chief Counsel, stated you will have to have bond counsel approval in any event to issue the
debt.
Mayor Reardon stated as Mr. Bach mentioned, that flexibility exists in the Schlitterbahn
agreement. I think putting this particular TDD on equal standing with that makes sense. I don’t
think if the government needs to consider this tool again that we should have to be mandate to go
back to the developer to get approval. I think that suggestion makes sense with respect to giving
the elected body maximum flexibility going forward.
Commissioner DeSeure rescinded his motion. Commissioner Mendez rescinded his second.
Action:
ORDINANCE NO. O-21-06, “An ordinance authorizing the creation of a
Transportation Development District in Kansas City, Kansas; authorizing the
making of certain transportation project improvements relating thereto: approving
the estimated costs of such transportation project improvements; providing for the
method of financing; authorizing the imposition of a transportation district sales
tax within the Transportation Development District in Kansas City, Kansas;
establishing a method of collection of such sales tax; and providing for the
segregation of such sales tax revenues for the payment of the costs of certain
transportation project improvements within the Transportation Development
District.” Commissioner Miller made a motion, seconded by Commissioner
February 16, 2006
Barnes, to adopt the ordinance, subject to the developer’s agreement to
accept an additional amount up to four-tenths of a percent at a future date
for an additional tax.
Commissioner Mitchell stated it’s an option, not a
mandate. Mr. Walker stated it would not be subject to the later approval of the
developer. This is also contingent upon us getting an opinion from bond counsel
that this can be done lawfully under the current state laws and IRS regulations.
Mr. Hays stated as a point of clarification, we are discussing the developer. I
think the statute speaks to the property owner.
As the developer being the
property owner, I think we need to include the property owner that is now
approving. Commissioner Miller stated that was my intention. If a sidebar
contractual agreement works better to accomplish that, so be it. Roll call was
taken and there were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure,
Barnes, Miller, Mendez, Mitchell, Kane.
ITEM NO. 2 – 970127….ORDINANCE
Synopsis:
Request to hold a public hearing and adopt an ordinance approving the tax
abatement for Plastic Packaging Technologies for the purchase of $452,000 in new
manufacturing equipment for the expansion of a manufacturing business located at 750 S. 65th
St., submitted by LaVert Murray, Development. The company currently has 85 employees and
this expansion will create 7 new jobs immediately and an additional 3 jobs within 2 years. The
business will pay approximately $44,968 in property taxes over 10 years. On January 30, 2006,
the Economic Development & Finance Standing Committee, chaired by Commissioner DeSeure,
voted unanimously to approve and forward to the full Commission.
Commissioner DeSeure stated this was brought before the Economic Development & Finance
Standing Committee. This is for approval of a ten-year stair-step tax abatement policy that we
have in place being presented by LaVert Murray for Plastic Packaging Technology, LLC, in the
amount of $452,000.
LaVert Murray, Development, stated this project comes before the Commission as an EDX
and meets the requirements for Economic Development Exemption and PILOT participation. As
February 16, 2006
noted, Plastic Packaging Technologies will purchase $452,000 in production equipment to
expand manufacturing production at it’s current facility located at 750 S. 65th St. The company
currently has 85 employees and through this expansion will create 10 new jobs. The company
understands your policy along with the requirement that 50% of these new hires must be
Wyandotte County residents. Under your PILOT policy, 50% of the taxes on the equipment will
be paid for ten years and the Unified Government will receive $44,968.
The required cost
benefit analysis for this project has been performed and has been presented to the Commission
for review. It reflects a two-year discounted payback for all taxing entities. Deana Stous, CFO
for Plastic Packaging, can answer any specific questions you might have. Staff recommends at
the conclusion of this public hearing that the Commission approve the ordinance in conformance
with the Economic Development & Finance Standing Committee’s recommendation.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
Action:
ORDINANCE NO. O-22-06, “An ordinance providing exemption for ad valorem
taxation under Section 13, Article 11 of the Constitution of the State of Kansas for
Plastic Packaging Technologies, LLC.” Commissioner Mendez made a motion,
seconded by Commissioner Kane, to adopt the ordinance. Roll call was taken
and there were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap, DeSeure, Barnes,
Miller, Mendez, Mitchell, Kane.
ITEM NO. 3 – 040018….ORDINANCE
Synopsis:
Request to hold a public hearing and adopt an ordinance approving the tax
abatement for DaVinci Roofing Materials/DaVinci Roofscapes for the purchase of $4.4 million
in new manufacturing equipment for the expansion of a roofing materials manufacturing
business located at 1413 Osage Avenue, submitted by LaVert Murray, Development. The
company currently has 25 employees and this expansion will create 20 new jobs immediately
February 16, 2006
and an additional 12 jobs within 2 years. The business will pay approximately $437,101 in
property taxes over 10 years. On January 30, 2006, the Economic Development & Finance
Standing Committee, chaired by Commissioner DeSeure, voted unanimously to approve and
forward to the full Commission.
Commissioner DeSeure stated this is another application for stair-step tax abatement policy for
DaVinci Roofing Materials in the amount of $4.4 million. This will generate over $473,101 in
property taxes over the ten years for our local government.
LaVert Murray, Development, stated DaVinci Roofing is also an EDX project meeting all
EDX and PILOT requirements. DaVinici Roofing manufactures unique roofing products for
upper-income bracket type homes at it’s current plant at 1413 Osage.
The company will
purchase $4.4 million in new equipment to expand it’s manufacturing capacity. The company
currently has 25 employees and through this expansion will more than double it’s employment
base adding 32 new jobs to it’s operation. The company understands the Unified Government
PILOT policy and understands that 50% of all new hires must be Wyandotte County residents.
Pursuant to your PILOT policy, the company will pay 50% of the taxes on the new equipment
for ten years and $437,101 will be paid over the term. The required cost benefit analysis has
been conducted and reflects a two-year discounted payback for all taxing entities.
Hulan
Jenkins, CFO, is in attendance and can address specific questions you might have.
Staff
recommends approval of the ordinance in conformance with the Economic Development &
Finance Standing Committee’s recommendation.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
February 16, 2006
Action:
ORDINANCE NO. O-23-06, “An ordinance providing exemption for ad valorem
taxation under Section 13, Article 11 of the Constitution of the State of Kansas for
DaVinci Roofing Materials/DaVinci Roofscapes.” Commissioner DeSeure
made a motion, seconded by Commissioner Mendez, to adopt the ordinance.
Roll call was taken and there were ten “Ayes,” Pettey, Cooley, Ellison, Gilstrap,
DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
STANDING COMMITTEES’ AGENDA
No items of business
ADMINISTRATOR’S AGENDA
No items of business
COMMISSIONERS’ AGENDA
No items of business
Mayor Reardon adjourned the meeting as the Board of Commissioners and reconvened as the
Land Bank Board of Trustees.
LAND BANK BOARD OF TRUSTEES’ AGENDA
Land Bank Regular Agenda:
ITEM NO. 1 – 990366….COMMUNICATION
Synopsis:
Request consideration of the following applications, submitted by Bridgette
Cobbins, Land Bank Manager:
3 Non-buildable lots at 1351 S. Mill, 660 Garnett & 519 Metropolitan
Best and final offer for 507 & 509 Metropolitan
On January 30, 2006, the Neighborhood & Community Development Standing
Committee, chaired by Commissioner Pettey, voted unanimously to approve and forward
to the full Commission.
February 16, 2006
Bridgette Cobbins, Land Bank Manager, stated Item #1 consists of two sections. Dean Realty
is requesting to purchase three properties out of the Land Bank. They are: 1351 S. Mill, 660
Garnett & 519 Metropolitan.
Action:
Commissioner Pettey made a motion, seconded by Commissioner DeSeure, to
approve. Roll call was taken and there were ten “Ayes,” Pettey, Cooley, Ellison,
Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
Bridgette Cobbins, Land Bank Manager, stated the second section consists of a best & final
from Dean Realty requesting to purchase 507 & 509 Metropolitan.
Commissioner Miller stated when asked if they were going to use TIF’s or TDD’s, my concern
is if they TIF this ground, the basis that we would allow to be TIF’d would be the amount that
went through the Land Bank.
Mayor Reardon asked you’re saying the baseline before the
increment would be the $6,000 that they are paying? Mr. Murray stated we have had situations
like this before in TIF and NRA’s where the Unified Government owns the property when the
base is established. The understanding that we have established with the Appraiser’s Office is
that the appraiser will take the fair market value of the ground as the base not the fact that it is a
zero tax value because the Unified Government owns it.
Commissioner Miller stated what I
am asking is if this ground is TIF’d they are going to receive a subsidy for the acquisition, I don’t
want to pay a premium. I want to make sure we document that so they understand our position.
Action:
Commissioner DeSeure made a motion, seconded by Commissioner Pettey, to
approve 507 Metropolitan to Dean Realty and 509 Metropolitan to Robert
Hermes. Roll call was taken and there were ten “Ayes,” Pettey, Cooley, Ellison,
Gilstrap, DeSeure, Barnes, Miller, Mendez, Mitchell, Kane.
February 16, 2006
MAYOR REARDON ADJOURNED
THE MEETING AT 8:00 P.M.
February 16, 2006
_____________________________
Carol Godsil
Deputy Unified Government Clerk
tk
February 16, 2006