STATE OF KANSAS WYANDOTTE COUNTY CITY OF KANSAS CITY, KS ) )) SS REGULAR SESSION, THURSDAY, MARCH 22, 2007 ) The Unified Government Commission of Wyandotte County/Kansas City, Kansas, met in regular session, Thursday, March 22, 2007, with nine members present: Gilstrap, Commissioner At-Large First District; DeSeure, Commissioner At-Large Second District; Barnes, Commissioner First District (arrived at 4:04); 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. Miller, Commissioner Second District, was absent. The following officials were also in attendance: Dennis Hays, County Administrator; Casey Boudreau, Deputy Chief Counsel; Tom Roberts, Unified Government Clerk; Gordon Criswell, Assistant County Administrator; Gary Ortiz, Assistant County Administrator and Captain Ron Kaminski, Sergeant-at-Arms. MAYOR REARDON called the meeting to order. ROLL CALL: Gilstrap, DeSeure, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison, and Reardon. INVOCATION was given by Reverend Frank Eberhardt, Our Saviour Lutheran Church. THE AGENDA for March 22, 2007, was presented. Mayor Reardon asked if there were any revisions to the agenda. Tom Roberts, Unified Government Clerk, stated there were none. MAYOR’S AGENDA ITEM NO. 1 – 030021….COMMUNICATION Synopsis: Amend the regular schedule of Unified Government Commission meeting dates of April 5, 2007 to April 12, 2007, April 19, 2007 to April 26, 2007, and standing committee meeting dates of April 2, 2007 to April 9, 2007, and April 16, 2007 to April 23, 2007. Action: Commissioner Gilstrap made a motion, seconded by Commissioner Kane, to approve. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. CONSENT AGENDA Mayor Reardon asked if there were any set-asides on the Consent Agenda. There were none. Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the Consent Agenda. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 1 – 070371….RESOLUTION Synopsis: Request adoption of a resolution of eligibility for tax abatement for MK Specialties, submitted by LaVert Murray, Development. The company plans to purchase and renovate a building located at 6297 State Avenue for a new manufacturing business. The estimated price of this building is $63,000 and the anticipated renovation costs are $108,000. This business will create three new jobs initially and meets the criteria of the PILOT policy. On March 5, 2007, the Economic Development and Finance Standing Committee, chaired by Commissioner DeSeure, voted unanimously to approve and forward to the full commission. Action: RESOLUTION NO. R-38-07, “A resolution adopting eligibility for tax abatement for MK Specialties.” Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the resolution. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 2 – 070376….RESOLUTIONS Synopsis: Request adoption of two resolutions relative to East Parallel Parkway, LLC, redevelopment of Parallel Parkway, 7th to 18th Street, submitted by LaVert Murray, Development. The company proposes a mix-use development of retail/commercial, office and residential. 1) Declare area blighted pursuant to K.S.A. 12-1770. 2) Set public hearing date of May 3, 2007, to consider establishing the redevelopment district. On March 5, 2007, the Economic Development and Finance Standing Committee, chaired by Commissioner DeSeure, voted unanimously to approve and forward to the full commission. Action: RESOLUTION NO. R-39-07, “A resolution declaring redevelopment area of the Parallel Parkway, 7th to 18th Street, as blighted pursuant to K.S.A. 12-1770.” Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the resolution. Roll call was taken March 22, 2007 and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. Action: RESOLUTION NO. R-40-07, “A resolution setting a public hearing date of May 3, 2007 to consider establishing the East Parallel Parkway Redevelopment District.” Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the resolution. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 3 – 050102….ORDINANCE Synopsis: Request approval of an ordinance to institute legal proceedings to acquire land for the Piper Landing Sanitary Sewer Project in the area of 115th & Leavenworth Road, submitted by Ken Moore, Legal/Right-of-Way. On November 2, 2006, the full commission unanimously adopted Resolution No. R-139-06 authorizing a survey of land to be required or condemned for the project. Action: ORDINANCE NO. O-26-07, “An ordinance condemning land for the construction, maintenance, operation, reconstruction, and improvements of the Piper Landing Sanitary Sewer Project, all in Wyandotte County, Kansas; and directing the Chief Counsel to institute proceedings as provided by law to acquire said land in this ordinance described by condemnation proceedings.” Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the ordinance. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 4 – 050187….ORDINANCE Synopsis: Request approval of an ordinance to institute legal proceedings to acquire the remaining property for the Fiesta Plaza Redevelopment Project in the area of I-70 to Bunker and 18th to 15th Street, submitted by Ken Moore, Legal/Right-of-Way. On February 15, 2007, the full commission unanimously adopted Resolution No. R-26-07 authorizing a survey of land to be required or condemned for the project. March 22, 2007 Action: ORDINANCE NO. O-27-07, “An ordinance condemning land for the Fiesta Plaza Redevelopment District and directing the Chief Counsel to institute eminent domain proceedings as provided by law to acquire the tracts and parcels of land described in this ordinance.” Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the ordinance. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 5 – 060051….PLAT Synopsis: Plat of Delaware Ridge Elementary School located at 130th Street and Delaware Parkway and being developed by Bonner Springs USD 204, submitted by L. Allen Greenwood, Surveyor, and Fred Backus, County Engineer. Action: Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve the plat. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 6 – 970128….CHANGE REQUESTS Synopsis: Communication from Eugene Bryan, Jr., County Appraiser, regarding 2005 tax year change requests with refunds: 24038, 24041, 24045, 24046, 24048, 24049, 24056, 24057, 24087. Action: Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 7 – 970013....APPOINTMENTS Synopsis: Appointment of Anne Phillips to the Advisory Committee on Disabilities Issues, 3/22/07 10/1/07, submitted by Commissioner Miller. March 22, 2007 Action: Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 8 – MINUTES Synopsis: Minutes from special sessions of February 15 and March 1, 2007; and regular sessions of February 15 and March 1, 2007. Action: Commissioner Kane made a motion, seconded by Commissioner Ellison, to approve. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 9 – WEEKLY BUSINESS MATERIAL Synopsis: Weekly business material dated March 8 and 15, 2007. Action: Commissioner Kane made a motion, seconded by Commissioner Ellison, to receive and file and authorize fund transfers. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. PUBLIC HEARING AGENDA ITEM NO. 1 – 060272….PUBLIC HEARING/ORDINANCE Synopsis: Conduct a public hearing and request approval of an ordinance adopting the Strawberry Hill Neighborhood Redevelopment Plan for Project Area A, submitted by LaVert Murray, Development. The plan proposes the construction of 30 new townhomes at a cost of $5,500,000. On February 15, 2007, the full commission unanimously adopted Resolution No. R-29-07 setting the public hearing date for March 22, 2007. LaVert Murray, Director of Development, stated tonight is the date set aside to hold the public hearing for the Strawberry Hill Redevelopment Project, our TIF project area. The project plan is included in your agenda, but let me describe the district boundaries for the TIF. The district is bounded on the north by Armstrong Ave. and on the east by 4th Street. The district boundaries meanders a bit, but it approaches 6th Street, but cuts around March 22, 2007 the old city hall lofts property and then to the south the district boundary is represented by Ann Ave, and the alley as it approaches 5th Street to the north of Ann Ave. The Strawberry Hill Redevelopment Plan consists of the construction of 30 townhomes and included in your packet is a map and it shows the location of each of those townhomes. It represents eight townhomes being constructed on the corner of 4th and Armstrong and in the mid-block of 400 Armstrong there are two additional townhomes. On the corner of 5 th and Armstrong you have 11 townhomes and on the southwest corner of Armstrong you have five additional townhomes and there are a number of structures within this district that will remain in place, for example, the Junior League facility. The five townhomes that I’ve just mentioned is to the east of the Junior League facility. The homes sandwiched between the Junior League facility and essentially the vacant property on the west end of Armstrong and in the 500 block you have four additional townhomes. The townhomes, I’ve just mentioned, will be constructed within Project Area A, which is the first phase of this redevelopment district. There will be 37 units that will be developed on Ann at a later time. As reflected in your redevelopment plan, the construction cost for these 30 new townhomes is estimated at $5,550,000. We have prepared a feasibility analysis for this district and it shows this project to be feasible and viable. With the construction of the 30 townhomes, there would be produced an increment and a new accessed value of $624,250. With this new increment, the tax bonds anticipated to be generated for this development would total $991,776 in 20 years 6% TIF bonds. The TIF cost is estimated to be $980,000. With the anticipated TIF revenues of $991,746, we find that the TIF cost of $980,000 fall within the range needed to make this project work and remain viable. The developers for this project are identified as 2-C Development, LLC and that is a partnership between City Vision Ministries and Community Housing of Wyandotte County. Together, that development team would build out this development as outlined. The TIF dollars would be used for site acquisition, site preparation, demolition of structures and the construction of public infrastructure. The TIF revenues are sufficient to retire debt associated with the project and the project is feasible. The developers are present and can answer any specific question you might have about this development and the staff recommends approval of the redevelopment plan. In the approval of the redevelopment plan, it does require a two-thirds vote. Commissioner Barnes stated during the standing committee we talked about a stipulation in reference to local women and minorities participating in that process, is this the time to address that per this vote? LaVert Murray stated yes. We have discussed such issues and I’m sure Mr. Harvey and Mr. Avery can discuss with you their commitment toward the LBE, MBE and the WBE participation for this project. March 22, 2007 John Harvey, 736 Armstrong, stated Kevin Morris is here from CHWC. Although we haven’t set specific targets for this project at this point, we can tell you that our history is that we’re in the 15 to 45 percent range on our other projects and that generally exceeds Unified Governments target for other development areas. That’s where this project will come in at. We have not chosen a general contractor or engineers at this point, but that would be the range of MBE participation that we would be shooting for. Commissioner Barnes stated I don’t want to disagree with you, but I had a different number in my mind and it was much lower than the numbers you reported to me tonight. If I’m wrong, I’m happy to be wrong in those numbers, but I would certainly want to have a more detailed understanding of what it is to be expected on this particular project. I hope we wouldn’t leave it open-ended based on his statement of his past track record. We would like to have some numbers in place that we can depend on going into the future. He may well have a great past track record, but going forward we want to make certain that we have some numbers we can depend on. I would like to have that stipulation put here because we’re spending a lot of local tax dollars and I think it’s only appropriate that the locals participate in that process. Since you’re building in an area that is quite diverse, I feel that minorities and women should participate in that also. At this time, I would hope that we would be able to establish some boundaries going forward before we vote on this issue. I do understand that you don’t have any disagreement with doing that? John Harvey stated not at all. Commissioner Barnes stated he’s in agreement with it, so we just need to establish some boundaries and I would hope that staff could put some boundaries there where we could have some projected goals that we can expect. LaVert Murray stated we anticipate that as we conclude the redevelopers agreement for this project. Commissioner Barnes stated the motion as we go forward would include the stipulation of goals for LBE, MBE and WBE. LaVert Murray stated if that is your pleasure. Commissioner Barnes stated that is my pleasure. LaVert Murray stated we have noted that the developer’s commitment based upon their past experience to pursue LBE, WBE and MBE participation within the range of 15 to 45 percent. We are certainly prepared to take that into consideration as we ink out that developer’s agreement. Commissioner Barnes stated I’d like to have that read into the records. Mayor Reardon opened the public hearing. No one appeared Mayor Reardon closed the public hearing. Action: ORDINANCE NO. O-28-07, “An ordinance adopting the Redevelopment Plan for Redevelopment Project Area A in the Strawberry Hill Neighborhood Redevelopment District.” March 22, 2007 Commissioner Mendez made a motion, seconded by Commissioner DeSeure, to approve the ordinance. Commissioner Barnes asked is that moved for approval with the stipulation as we earlier discussed? Mayor Reardon asked with the stipulation of the local MBE, WBE and LBE requirements be included in the developer’s agreement? Commissioner Mendez stated I have consistently supported that and I concur with Commissioner Barnes. Commissioner DeSeure stated and I second that motion. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. ITEM NO. 2 – 060296….PUBLIC HEARING/ORDINANCE Synopsis: Conduct a public hearing and request approval of an ordinance adopting the Redevelopment Project Plan for the Midtown Redevelopment District, submitted by LaVert Murray, Development. The plan proposes the construction of retail space, office space, hotels, residential units, entertainment space, and public athletic/recreation facilities at an estimated cost of $193 million. On February 15, 2007, the full commission unanimously adopted Resolution No. R-3007 setting the public hearing date for March 22, 2007. LaVert Murray, Director of Development, stated you have copies of the redevelopment plan in your packets. I have displayed the redevelopment site plan for the project for the public’s review. As established by resolution number R-30-07 approved on February 15, 2007, today is the date set aside to hold public hearings to consider the redevelopment plan for the Midtown Redevelopment TIF Redevelopment area. The Midtown TIF Redevelopment area was established and based on the Unified Government’s findings of blight for the area and blight with regard to the district plan. The Midtown Redevelopment Plan consists of a comprehensive development of one project area in four distinct sub areas of the redevelopment district. Permit me to describe the four districts, but before I do, I’d like to describe the boundaries for the TIF Redevelopment District. State Ave. is on the north side of the district and meanders a bit around State Ave. taking in properties. The boundaries do not take into account residential areas west of 47th Street. This extends to the south of Orville where 47th Street takes a turn and it covers that area on the hill where a medical office building used to be. The boundaries take into consideration that area and, of course, the eastern boundaries, as you can see from the plan, March 22, 2007 follows the right-of-way for I-635 connecting to the northern boundary to the north. The redevelopment plan consists of four distinct areas and I would like to describe those areas. You have Area A and within this you have 23,000 square foot of retail with an estimated cost of $2,239,740. Area B is the area west of 47th Street and within this area the plan calls for the construction of approximately 28,000 square feet of service retail space and one or more three story office buildings containing 90,000 square feet at an aggregate estimated cost of $14,978,340. Area C is split into two zones. The north zone of Area C consist of the construction of approximately 32,000 square feet of retail service transit space and approximately 200,000 square feet of big box retail at an aggregate estimated cost of $14,116,160. The south zone of Area C consists of the construction of approximately 394,000 square feet of retail pedestrian space. Approximately 270,000 square feet of office space in one or more buildings. The development of an approximate 120 room hotel and approximately 280 residential units totally approximately 288,000 square feet with a total aggregate cost of $121,150,220. Area D is south of Orville and it calls for the construction of a 210 room hotel of approximately 280,000 square feet, approximately 20,000 square feet entertainment center, public athletic recreation facilities etc. at a cost of $40,596,000. When you look at the details for this plan, you can see a very attractive innovative site plan incorporating some traditional neighborhood development design and new retail and box retail. The details show a private development with private investment in excess of $193 million with an estimated TIF cost of $69.5 million. With an estimated $226.8 million in TIF revenues, this project would carry nearly a 2 to 1 debt coverage ratio. We continue in negotiations with several perspective developers for this site. At this time no developer has been selected and depending on which developer is selected, we may or may not need to acquire the mall site. Nevertheless, we will start discussions with tenants within the mall within the next 90 days if this plan is approved. Additionally, once the determination is made that tenants will be relocated from the site and all of the property will be acquired, we will be sharing with the tenants a booklet labeled Your Rights and Benefits as a Displaced Person. There is a section within this booklet that covers displaced and relocating businesses. The plan that is before the Commission tonight calls for a relocation initiative and as a part of the plan it is noted that we will follow the Uniform Relocation Act to relocate any of the tenants and relocate any and all property owners pursuant to the Uniform Relocation Act. Any affected property owner or tenant wanting a copy of this, we have them here. We are prepared to share them with you tonight and that information will outline the federal standards and your rights as a relocated person. March 22, 2007 The marketing and feasibility analysis for this project has been approved and the project has been reviewed by the Unified Government Planning Commission and the Planning Commission has found that the redevelopment plan does conform to the City’s Master Land Use Plan. Staff is available to discuss, after the public hearing, with any potential relocated person or property owner to be acquired to discuss the relocation plan and any of the elements of this project. This being a redevelopment plan, it does require a two-thirds vote of the Commission. Mayor Reardon opened the public hearing. Jimmie Banks, 4008 N. 110th Street, stated I was looking at Area A, which is not necessarily contiguous to the other portion of the development, what’s the business case for that area? LaVert Murray stated since it’s a boundary question I should point out that the boundary for this TIF District extend to the north of State and that takes into consideration the abandoned Amoco station that used to exist on the corner and the property surrounding that. Jimmie Banks stated the other side of that is the new medical building. LaVert Murray stated it is not within the boundaries. Lynn Frennick, Director of Central Area Betterment Association, asked what is the cost for the area south of Orville where the medical buildings were? What’s being done about that and what is the safety involved in it? Marsha Rupp, President of the Fourty-Sixers Neighborhood Association Group, 2816 N. 46th Street, stated I’m the biggest cheerleader of this. I think it’s a great thing that you’re doing for the midtown area. It would be easy to forget that area, but the Mayor and you have not, and we applaud you for that and thank you. Mayor Reardon closed the Public hearing. LaVert Murray stated the area of concern is south of Orville. The majority of this area currently is slated for athletic fields and activities. The athletic fields and activities are designed to be placed over the mine area. We know the limits of the undermining. While we plan to address the undermining, we’ve only noted the kinds of uses that would fit there without putting the public in danger. There is a hotel proposed on this site on the extreme southern end of this area. This is the area determined to be stabled and there is no mining activity March 22, 2007 under the area that would house a hotel. We have looked into the cost to reclaim the land in the undermined area and I will tell you when you look at the cost estimates for the development, it anticipates some stabilization of the undermined area. One of the reasons we’re avoiding building any permanent type structures over that is because we’re continuing to study how we might build on the undermined area. One engineer suggests that we implode the area and then just fill it in. Others recommend us to fill it from below using fly ash. We’ve built some cost in and that’s within the estimate of the $40,596,000 to make some repairs, that may cost more money, but as you see that within the two to one coverage ratio there could be funds available to stabilize that area further. Commissioner DeSeure stated there’s been a great amount of Unified Government tax dollars and USD 500’s investment into the existence of entities in the Indian Springs Shopping Center. Could you address to the public how those investments will be protected by the acquisition and relocation dollars? Dennis Hays stated the basic concept that is in place for local government, whether it be the school district or the Unified Government, would be the intent to make our investment whole just as any individual property owner in the area. The intent would be to make them whole in terms of the fair market value of the investment or the property that they have. So, for USD 500 it would be our intention in this redevelopment plan to insure that any replacement facilities would be equal or better than what they are currently in at no additional cost to the taxpayer. Commissioner DeSeure stated so we would assist in that process of the acquisition and relocation of that entity for them also. Dennis Hays stated we would be working directly with the district. Commissioner Ellison asked do we have a standard Unified Government policy on MBE participation so this doesn’t come up every time because we have to choose a developer for Indian Springs and if we have a standard policy, I don’t see a need to bring that up when these proposals are accepted by the Unified Government. That should be an automatic part of that proposal when we review those. Dennis Hays stated I can’t address that. There isn’t a standardized policy. This whole issue of MBE, LBE local participation in Unified contracts is emerging and we have had in recent development contracts different levels. In this one, the RFP that was set out for proposals specifically called for standard participation and that’s how we hope to address it on the development proposals here. March 22, 2007 Action: ORDINANCE NO. O-29-07, “An ordinance adopting the Redevelopment Project Plan for the Midtown Redevelopment District.” Commissioner Ellison made a motion, seconded by Commissioner Kane, to approve the ordinance. Mayor Reardon stated I think it is certainly the intent of the entire Commission, for those who are currently doing business in this area as tenants or otherwise, for us to work with you to be successful for the long haul in Kansas City, Kansas. We want you to do good things and we think there is a great future for the community in this part of town. We certainly will take that attitude as we move forward with this redevelopment project. Roll call was taken and there were nine “Ayes,” Gilstrap, DeSeure, Barnes, Mendez, Mitchell, Kane, Pettey, Cooley, Ellison. Mayor Reardon recognized Wendell Mitchell Jr. for taking part of his spring break and spent the day shadowing Judge Ryan. He has thoughts of becoming a judge someday and we’re glad to have you here and good luck with your future in school and we’d love to have you back in some capacity with the Unified Government. Dennis Hays introduced Gary Ortiz as the new Assistant County Administrator, who was the former City Manager of Leavenworth, KS. Action: Commissioner DeSeure made a motion, seconded by Commissioner Barnes, to go into Executive Session until 4:50 p.m. to discuss a personnel matter. Mayor Reardon reconvened back into Regular Session at 4:45 p.m. MAYOR REARDON ADJOURNED THE MEETING AT 4:45 P.M. MARCH 22, 2007 ___________________________ Tom Roberts Unified Government Clerk tdw March 22, 2007