STATE OF KANSAS
WYANDOTTE COUNTY
CITY OF KANSAS CITY, KS
)
)) SS REGULAR SESSION, THURSDAY, JUNE 21, 2007
)
The Unified Government Commission of Wyandotte County/Kansas City,
Kansas, met in regular session, Thursday, June 21, 2007, with eleven members present:
Holland, Commissioner At-Large First District; DeSeure, Commissioner At-Large
Second District; Barnes, Commissioner First District; Miller, Commissioner Second
District; Murguia, Commissioner Third District; Mitchell, Commissioner Fourth District;
Kane, Commissioner Fifth District; Pettey, Commissioner Sixth District; Cooley,
Commissioner Seventh District; Ellison, Commissioner Eighth District; Reardon,
Mayor/CEO presiding. The following officials were also in attendance: Dennis Hays,
County Administrator; Hal Walker, Chief Counsel; Tom G. Roberts, Unified
Government Clerk; Gary Ortiz, Assistant County Administrator; and Captain Randy
Balliett, Sergeant-At-Arms.
MAYOR REARDON called the meeting to order.
ROLL CALL: Miller, Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland,
DeSeure, Barnes, Reardon.
INVOCATION was given by Commissioner Holland.
THE AGENDA for June 21, 2007, was presented. There were no revisions.
MAYOR’S AGENDA
ITEM NO. 1 – 980273…RESOLUTION
Synopsis:
Request appointment of one Democrat elector and one Republican elector
to witness the destruction of voted and unvoted ballots and other election records for
which the required retention period has passed, submitted by Bruce Newby, Election
Office.
June 21, 2007
Action:
Commissioner Kane made a motion, seconded by Commissioner
Barnes, to appoint Commissioners Cooley and Pettey, to witness the
destruction . Roll call was taken and there were ten “Ayes,” Miller,
Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure,
Barnes.
CONSENT AGENDA
Mayor Reardon asked if there were any set-asides on the Consent Agenda. Mayor
Reardon asked to set aside Item 1 and Item 2, on the Consent Agenda. Commissioner
Pettey made a motion, seconded by Commissioner Kane, to approve the Consent
Agenda, excluding the set-asides.
Roll call was taken and there were ten “Ayes,”
Miller, Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure, Barnes.
ITEM NO. 1 – 070428…RESOLUTION
Synopsis:
Request issuance of $43.8 million of utility revenue bonds for the BPU,
submitted by Jack Manahan, Chief Financial Officer. On June 4, 2007, the Economic
Development and Finance Standing Committee, chaired by Commissioner DeSeure,
voted unanimously to approve and forward to the full commission.
Jack Manahan, Chief Financial Officer, stated there are two items related to bond
issues for the BPU. One is the System Improvement Revenue Bonds for projects that are
in their capital plan and are accounted for and considered in their rate structure.
The
other is a potential refunding of about $20 million. That would generate some savings in
debt service. The timing of that bond issue has something to do with the savings to be
realized on that. Because of the nature of the timing if you approve authorizing these
issues tonight, notice must be published in the paper and then there is a waiting period.
They don’t actually sell the bonds until July 19. As they are right now, the refunding
issue would save a net present value of about $1.5 million, about 7%, which is good.
Generally if the refunding is something on the order of 3% savings, it is worth doing
considering the cost of issuance and that sort of thing. The letter that I requested from
Springsted talks about repayment and matching the terms on the 1992 and 1999 bonds.
June 21, 2007
As I have mentioned, they have updated their estimates slightly. Net present value
savings of about $1.5 million after the cost of issuing all of these bonds and based on
what they are seeing now with the market that refunding is probably a good thing.
Obviously, if the market goes south, they probably would not go ahead and do that
refunding. At this point it looks good. Springsted believes that it will provide the
savings that we have estimated.
Mayor Reardon asked if the bonds are approved and issued, it wouldn’t be General
Obligations of the Unified Government. Mr. Manahan stated no. These are Utility
Revenue Bonds. They have our name on them but they are revenue bonds. Mayor
Reardon asked Springsted’s analysis would conclude that approving this bond issuance
and these bonds being issued would not result in an increase in utility rates for the
ratepayer. Mr. Manahan stated that is correct. Mayor Reardon asked what they are
asking for with respect to bonds and this request has nothing to do with their plans to
build a future generation plant or major new infrastructure plans that they might have.
These bonds would be for normal capital equipment for the utility operation.
Mr.
Manahan stated that is correct.
Commissioner DeSeure asked the current bond rating for the BPU. Lori Austin, BPU
Chief Financial Officer, stated the current bond rating is A+ with Fitch and Standard &
Poore’s and A-1 with Moody’s. Commissioner DeSeure stated this will not incur a rate
increase. The majority is on the first year or two on the refunding. Ms. Austin stated
right, in the first two years.
Commissioner DeSeure stated Springsted has
recommended not to fall below that threshold not to issue the bonds. Mr. Manahan
stated that is correct. They are going to be watching the market as they go and as we get
closer to that time. If it looks like they’re not going to generate savings, then there’s no
reason to do it.
Commissioner DeSeure stated when you approve the dollars being
issued for the debt funding of projects, the question came up about some of those
projects, do they really qualify for debt issue. The life expectancy may be a short-term.
That question came up to make sure that we are doing a thorough job and making sure we
monitor. Some of those projects probably really don’t qualify for debt issuance and so
June 21, 2007
that was a concern that was brought up during the standing committee.
Randy Irey,
Gilmore & Bell, stated that is a factor that we look at and we have to satisfy ourselves in
order to give our opinion. Commissioner DeSeure stated Gilmore & Bell with the
projects that we have listed in this book are recommending approval for the funding of
those projects as listed. Mr. Irey stated for the issuance of bonds.
Action:
RESOLUTION NO. R-63-07, “A resolution authorizing the issuance of
Utility System Revenue Bonds of the Unified Government of Wyandotte
County/Kansas City, Kansas, for the purpose of providing funds to finance
improvements to the utility system and, if economically advantageous, to
refund Outstanding Utility System Revenue Bonds.”
Commissioner
Cooley made a motion, seconded by Commissioner Ellison, to adopt
the resolution. Roll call was taken and there were nine “Ayes,” Miller,
Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure.
Commissioner Barnes voted “No”.
ITEM NO. 2 – 990233…CAFR REPORT
Synopsis:
Presentation of the 2006 Comprehensive Annual Financial Report (CAFR)
by staff from Allen, Gibbs & Houlik, L.C. On June 4, 2007, the Economic Development
and Finance Standing Committee, chaired by Commissioner DeSeure, voted
unanimously to approve and forward to the full commission.
Jack Manahan, Chief Financial Officer, stated the difference between the draft earlier
in the month and the one that you have now is the unqualified opinion of our auditors.
The unqualified opinion tells us that in all material respect these are accurate statements.
They are telling them that based on auditing standards and general accepted accounting
principles that the numbers that are in here are correct. This affects our ability to finance
capital projects through debt service.
The other thing that is in there is a certificate of excellence in financial reporting.
This is more than just an award for reporting. This is for the previous year. This means
that this document has been peer reviewed by other government finance professionals
June 21, 2007
across the country. They are telling us that it is an accurate statement of our financial
condition and has been put together in a manner that fits based on the principals and
standards of governmental accounting.
One of the things we are going to do this year, after 10 years of Unified
Government financial performance, we are going to work on a financial trend monitoring
report. We will be looking at some things as far as ratios of debt to per capita income.
Debbie Pack, Director of Accounting, stated you will see two very noticeable changes.
Both of these are based on GASB requirements. The first is our requirement to include
infrastructure numbers from 1980 to 2001. From 2002 to present we have been adding
those on the yearly basis but we were not required to add 1980 through 2001 until this
year. You will see a significant change in that asset in regards to that.
The other change is the statistical section. GASB has required us to include
different trends and different things like that.
Basically, you will notice in some of the statements the term “governmental
funds” which is our operating fund for the city and the county. Any special revenue
funds which include parks, special 911, any of those funds that have specific spending
requirements either legally or politically, the service fund pays back our debt service, and
the new county initiative to fund infrastructure which tracks our infrastructure for all the
cities in the county.
The trends of the governmental funds we had little trend up and this year our
general fund balance as gone down about $4 million. The balance currently in that fund
is about $31.5 million. $20 million of that is city fund. County fund is about $11.5
million.
In 2006 we increased and that is due to $166.4 million of infrastructure that we
had to include this year in our net assets because of the GASB regulations and those are
depreciated values.
Property taxes are leveling out and the sales and use tax and business taxes are
going up a little. Property tax is still over 50% of our tax revenue. Sales and Use is
about 20% and business tax is about 15%.
June 21, 2007
The expenditure for the general fund almost 75% of that goes to personnel and
contractual services. Public Safety is our biggest spending expenditure.
Some of the
enterprise funds, Sewer Fund, EMS Fund, the Public Levee fund and the Sunflower Hills
Golf Course Fund. The sewer fund balance has dropped significantly. Public Levee had
a huge increase of influx of money in 2005 and that was spent on capital expenditures.
Historically, the Sewer Fund and Public Levee have lost money. EMS Fund has made
money. Sunflowers Hills goes up and down.
Upon approval of our report, we will be submitting this to the GFOA for a Certificate of
Achievement.
Shelly Hammond, Allen, Gibbs & Houlick. L.C., stated we are hired by you. We work
with management during the course of the audit. In addition to the CAFR, you should
have two letters, one addressed to the Commission and one addressed to Jack Manahan as
CFO.
The first section in that letter is called required communications. We were able to
issue an unqualified opinion on the audit, which means that we were able to provide
reasonable assurance that your financial statements as prepared by management are free
of material misstatements. That is the highest level of opinion that you can achieve
throughout an audit process. As part of our audit process we test transactions on a test
basis. We review accounting policies and procedures. There were two significant
accounting policy changes pertaining to the recording of infrastructure assets and changes
in the statistical section.
The second section of our letter talks about internal controls. You have your
financial statement opinion, which is unqualified. The second thing is internal controls
and whether or not we found that your controls were designed properly and operating
effectively.
Your internal controls overall are designed properly and are working.
However, we do have a control deficiency that we are required to report to you as a result
of our audit this year. That is how we evaluate internal controls. It is a lot more specific
of how we evaluate internal controls. There are two items in the internal control section
that I want to touch on. One relates to recording of Capital Lease transactions that the
June 21, 2007
Unified Government has with the theatre at Village West. An internal control concern
related to the fact that the Capital Lease Liability that’s recorded in the financial
statements, there was not a process and procedure implemented within the management
and the accounting and finance areas to get that balance adjusted by the end of the year.
The second item relates to Capital Asset Acquisitions from the STAR Bonds.
STAR Bond funds are used in part to put in infrastructure at the Village West area and
other areas where STAR Bonds are being issued. The transactions are properly being
tracked and mentioned, but some of these expenditures result in the acquisition of
infrastructure and our internal control concerns simply noted that there weren’t current
policies and procedures again within the finance accounting area to properly capture that
capital asset data and record it on the financial statements.
The other items in the letter that was addressed to Jack are items that are not as
significant. For example, we will note there can potentially be segregation of duties
misuse in smaller departments within the Unified Government that might collect cash. It
is not a significant issue from an audit perspective because the dollar amounts involved in
terms of cash collections of those departments are not that significant. It is really not cost
effective to add staff to mitigate those segregation duties or concerns. However, we do
report them to management so that they have an opportunity to address those if they so
choose.
The third item of our financial statement letter and internal controls is part of our
audit includes an audit of compliance. As you have heard me report in the past, we also
audit your federal grants. There are certain requirements that come along with those
federal grant dollars when you receive and spend them. We perform a compliance audit
on certain dollars that you spend during the year to ensure compliance with the federal
requirements. There is a separate report that we issue called the single audit report that
includes our findings as a result of that compliance audit.
I can also tell you that we
issued an unqualified opinion in that compliance audit as well. There were four findings
that we reported to management in areas we thought they could make improvements and
recommendations related to that compliance audit.
June 21, 2007
Action:
Commissioner DeSeure made a motion, seconded by Commissioner
Barnes, to approve. Roll call was taken and there were ten “Ayes,”
Miller, Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland,
DeSeure, Barnes.
ITEM NO. 3 – 070431…RESOLUTION
Synopsis:
Request support for Accessible Space, Inc., to build a Section 811 fifteen
wheelchair accessible one and two bedroom apartment complex at 1908 N. 55th Street,
submitted by LaVert Murray, Development. Funding requested from HUD for proposed
capital Advance grant funding would be $1,610,158 and funds for rental assistance for
three years would be $144,280. Accessible Space would have to provide approximately
$418,641 of leveraging funds to maximize points to assure funding of the grant. On June
4, 2007, the Neighborhood and Community Development Standing Committee, chaired
by Commissioner Pettey, voted unanimously to approve and forward to the full
commission.
Action:
RESOLUTION NO. R-64-07, “A resolution that the Commission of the
Unified Government of Wyandotte County/Kansas City, Kansas supports
the application for the Section 811 Project that is to be submitted by
Accessible Space, Inc. to the U.S. Department of Housing and Urban
Development.”
Commissioner Pettey made a motion, seconded by
Commissioner Kane, to adopt the resolution. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
ITEM NO. 4 – 070432…RESOLUTION
Synopsis:
Request support of Section 42 tax credits by R&J Investment Group,
LLC, to rehab a portion of the existing Medicalodge facility located at 6500 Greeley,
submitted by LaVert Murray, Development. The rehab consists of the construction of 12
new elderly living units in a vacant wing of the existing building at an estimated cost of
$850,000.
On June 4, 2007, the Economic Development and Finance Standing
June 21, 2007
Committee, chaired by Commissioner DeSeure, voted unanimously to approve and
forward to the full commission.
Action:
RESOLUTION NO. R-65-07, “A resolution that the Commission of the
Unified Government of Wyandotte County/Kansas City, Kansas supports
the application for the Section 42 tax credit application submitted by R& J
Investment Group, LLC to the Kansas Department of Commerce and
Housing.”
Commissioner Pettey made a motion, seconded by
Commissioner Kane, to adopt the resolution. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
ITEM NO. 5 – 070444…RESOLUTIONS
Synopsis:
A resolution amending Section 1 of Resolution R-142-06 to include
Ridge Avenue, 15th Street to 19th Street, as a main trafficway connector, to allow for cost
of improvements for the Prescott Plaza Redevelopment Project, submitted by Fred
Backus, Engineer. A resolution providing for a substitute improvements to be financed
with the proceeds of the Unified Government of Wyandotte County/Kansas City, Kansas
Municipal Temporary Notes, Series 2007-II, submitted by Fred Backus, Engineer.
Action:
RESOLUTION NO. R-66-07, “A resolution amending Section 1 of
Resolution R-142-06 pertaining to authorizing and providing for the
improvements of certain streets and avenues designated main trafficways
and trafficway connectors and providing for the manner of paying for the
same.”
Commissioner
Pettey
made
a
motion,
seconded
by
Commissioner Kane, to adopt the resolution. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
June 21, 2007
Action:
RESOLUTION NO. R-67-07, “A resolution providing for a substitute
improvement to be financed with the proceeds of the Unified Government
of Wyandotte County/Kansas City, Kansas Municipal Temporary Notes,
Series 2007-II.” Commissioner Pettey made a motion, seconded by
Commissioner Kane, to adopt the resolution. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
ITEM NO. 6 – 970013…APPOINTMENT
Synopsis:
Appointing John “Tiny” McTaggart to the Park Board, 6/21/07 – 10/1/07,
submitted by Commissioner Cooley,
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Kane, to approve. Roll call was taken and there were ten “Ayes,” Miller,
Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure,
Barnes.
ITEM NO. 7 – 040308...PLAT
Synopsis:
Plat of Honey Creek Estates located at Parkview Avenue and 115th Street
and being developed by Brenda R. Willis, submitted by L.Allen Greenwood, Surveyor,
and Fred Back, Engineer.
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Kane, to approve. Roll call was taken and there were ten “Ayes,” Miller,
Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure,
Barnes.
ITEM NO. 8 – MINUTES
Synopsis:
Minutes from regular session of May 17, 2007; and special sessions June 7
and June 11, 2007.
June 21, 2007
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Kane, to approve. Roll call was taken and there were ten “Ayes,” Miller,
Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland, DeSeure,
Barnes.
ITEM NO. 9 –WEEKLY BUSINESS MATERIAL
Synopsis:
Weekly Business Material dated June 7 and June 14, 2007.
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Kane, to approve and authorize fund transfers. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
PUBLIC HEARING AGENDA
ITEM NO. 1 – 040018…PUBLIC HEARING/ORDINANCE
Synopsis:
Request to hold a public hearing and to adopt two new ordinances (O-28-
04 and O-23-06) previously approved by the Commission granting DiVinci Roofscapes
tax abatement on personal property for a 2004 expansion and a 2005 expansion project
located at 1413 Osage, submitted by LaVert Murray, Development.
LaVert Murray, Development, stated in 2004 DiVinci Roofscapes moved its operations
from Lenexa to 1413 Osage Avenue. At that time the company purchased $3,593,701 in
new machinery and equipment. On April 15, 2004, the Unified Government Commission
approved a PILOT schedule for that equipment. Through a mistake the wrong values
were stated for the subject equipment and the submitted ordinance corrects that error.
In 2006, DiVinci Roofscapes expanded its operations and purchased $4,748,808
in new equipment and machinery. On February 16, 2007, the Unified Government
Commission approved a PILOT tax schedule for the expanded operation. Again, through
an error the wrong values were presented and approved. The second ordinance presented
tonight corrects that error.
We have consulted with our bond counsel and he has
recommended that these actions take place to correct the indicated errors. The company
June 21, 2007
created 30 new jobs when it located here and 20 additional new jobs with its expansion
for a total of 50 new jobs immediately.
Combining the two projects together, the
business will pay approximately $860,000 in taxes over the term. A cost benefit analysis
was completed for the project which resulted in a three year and a two year discounted
payback to the taxing districts respectively. Staff recommends that both ordinances be
approved at the conclusion of the public hearing.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
Commissioner Pettey asked was it a figure of over $3 million of new equipment. Mr.
Murray stated the new equipment on the first project was $3,593,701. For the 2006
project it is $4,748,808. Commissioner Pettey asked how much personal property tax
will we be able to collect locally on that. Mr. Murray stated roughly about $86,000 per
year. It is about $40,000 and $48,000 for the second package. We combined them
together. Commissioner Pettey asked how much would we have been able to collect
before legislation changed at the state level. Mr. Murray stated the amounts are the
amounts that would represent the PILOT payment which means that’s about 50% of what
you would have collected without a PILOT.
This development occurred before the
change and thus this equipment is not exempt. Commissioner Pettey stated which
would be part of the 2006. Mr. Murray stated that is correct.
Action:
ORDINANCE NO. O-51-07, “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 (2004
Project).”
Commissioner Kane made a motion, seconded by
Commissioner Ellison, to adopt the ordinance. Roll call was taken and
June 21, 2007
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
Action:
ORDINANCE NO. O-52-07, “An ordinance providing for ad valorem
taxation under Section 13, Article 11 of the Constitution of the State of
Kansas for DaVinci Roofing Materials/DaVinci Roofscapes (2005
Project).
Commissioner Kane made a motion, seconded by
Commissioner Ellison, to adopt the ordinance. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
ITEM NO. 2 – 070407…PUBLIC HEARING/ORDINANCE
Synopsis:
Request to hold a public hearing to consider establishing the Bethany
Redevelopment District, submitted by LaVert Murray, Development. This TIF District
on the former Bethany hospital site would allow CHWC to construct a 89 unit senior
housing campus along with site preparation and public infrastructure improvements. On
May 17, 2007, the full commission unanimously adopted Resolution No. R-56-07 setting
the public hearing for June 21, 2007.
LaVert Murray, Development, stated CHWC is requesting that a Tax Increment
Financing District be established to facilitate the redevelopment a part of the old Bethany
Hospital site located on Riverview between 11th & 12th Street, with Riverview
representing the north boundary and Reynolds being the south boundary with the
exception that the 11th Street right-of-way would extend south to Calvin. 11th Street
represents the east boundary and 12th Street represents the west boundary. Within this
proposed Bethany Redevelopment District, CHWC proposes to build a 79 unit age
restricted and senior housing complex at an estimated cost of $8,442,820. This activity
would involve site acquisition and preparation and the construction of public
infrastructure at a cost of approximately $1,014,700.
June 21, 2007
Mike Avery, CHWC, stated the assisted living complex is 59 units and surrounded by
20 units of independent living for those seniors that don’t require that assistance. It
requires substantial grade improvements as well as sewer run-off improvements as well
as substantial retaining walls in order to make this site buildable that the TIF will help us
do.
Mayor Reardon stated the assisted living building would be facing toward Central
Avenue. Mr. Avery stated the back would face Central. Mayor Reardon asked how
many units are in the assisted living. Mr. Avery stated 59. Mayor Reardon stated it is
fourplexes. Mr. Avery stated it is fourplexes and duplexes. Mayor Reardon asked for
the duplexes is it 55 and older and all of these are rental. Mr. Avery stated yes. Mayor
Reardon asked what would the rental rates be? Mr. Avery stated they are based on the
tax credits. We are working with the Housing Authority in a Cooperative Agreement and
based on income on the independent units. On the assisted living the same formula, a
percentage of their income.
Mayor Reardon asked they are one and two bedrooms.
Mr. Avery stated they are all two bedroom and two car garages.
Commissioner Barnes stated you mentioned your venture with the Housing Authority.
They have been accused in the past of not fellowshipping. We haven’t had many joint
ventures with them. I know in our Hope 6 Grant they were somewhat lacking in that
area. Can you explain that cooperative agreement that you have with them and do you
foresee them doing more of those types of deals in the future. Mr. Avery stated it would
not actually be the Housing Authority per se. It is a group called the Community
Housing Investment Group, which is a housing authority group. It is authorized by the
Housing Authority. They are the same group who built Delaware Highlands. We wanted
to do something special on this site which was beneficial to the community. They had a
team in place because of what they had done in Delaware Highlands and it made sense to
approach a collaboration. Working with Tom Stibal, Executive Director of the Housing
Authority, they were very open to that possibility and they bring with that a team of tax
credit financing syndicater’s and architects and we have been able to use less expensively
because they have so many other pieces structured from the previous development.
June 21, 2007
Commissioner Barnes asked what is your position with this group now? Mr. Avery
stated I am the Executive Director of CHWC. CHWC and CHIG would form a joint
venture to construct this. Commissioner Barnes asked how to do you plan to deal with
participation in the construction of a $10 million project. Mr. Avery stated we put it out
for bid. The people that we pre-qualified, all but one of them are a local contractors. The
local contractors that have pre-qualified include Straub Corporation, Merit Construction
and Neighbors Construction.
Commissioner Barnes asked do you encourage them to
use minorities and women in that process? Mr. Avery stated absolutely. We have
participation goals that will be established but they also must have a Registered Section 3
program as part of this bid package.
Commissioner DeSeure stated do you know if CHWC anticipates coming back to the
Unified Government for any financial assistance with this project, any additional funding
that you may be requesting from the Unified Government in the future? Mr. Avery
stated right now there is a small funding gap, but we are trying to fill it another way.
With this that covers most of it. Right now the gap is $150,000 so we have come up with
some creative ways to try and fill that and not come back to the Unified Government.
Commissioner DeSeure asked we are just establishing the TIF boundaries.
Mr.
Murray stated this is the very first step in the TIF process. We are asking you to
establish the TIF district which represents the boundaries and to approve the district plan
which is a flexible plan. Commissioner DeSeure stated one of the things is that we have
no gaps when we approve a TIF. We want to try and approve a TIF that has all the gaps
closed. Mr. Murray stated that is why I wanted to point out that this is the first step in
the process that leads to the approval of a redevelopment plan which is the last step.
There will be several public hearings before this can move forward. Commissioner
DeSeure stated I know CHWC has done a fantastic job with housing on Strawberry Hill
and the St. Peter’s area. My concern is the capacity that CHWC has to embark and
shows the capacity to be able to take on all three of these projects at the same time and
continue to move forward and complete the projects to make sure there is closure on
those as we move forward.
Mr. Avery stated that is always a concern. One of the ways
that we are addressing capacity is through collaboration as opposed to expanding staff. If
June 21, 2007
I can collaborate with another strong partner like CHIG, City Vision Ministries, El
Centro or any other CHTO or Community Development Corporation, that is the best way
I find to leverage our resources in order to accomplish this. We have several more
projects in the pipeline and so all of which are capacity issues as we go forward. That is
something that we continually look at and address. I have three urban planners on staff
all with master degrees. We have good relationships in terms of contractors, architects,
and engineers. BHC Rhodes is our primary engineer. We stretch our capacity using those
kinds of relationships in order to accomplish these things. Commissioner DeSeure
asked with the operational costs to be able to show the capacity to have the funds to fund
the operational costs from the CHWC standpoint other than those grants and TIF dollars
where there used for.
Mr. Avery stated once it’s built, it is fairly self-sustaining
including operating reserves and maintenance reserves for the life of the project. That’s
what is required of the housing tax credits that are used. It is also a requirement of our
board to make sure that this is not something that lacks funding going forward so we built
that into our performance and you will see that in the final development.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
Commissioner Miller stated the Bethany site is a very difficult buildable site.
Fortunately, there was some great effort on behalf of a lot of different people in terms of
making this site one that we could rebuild. There are a number of site, grade and fill
questions that took a long time to be worked through and ultimately they were. The area
and the downtown area has a massive need for particularly hosing suited for elderly. The
census tracks are clear. This is an ideal spot. This is a quality development. This project
actually began through the vision kind of a previous administration that I know
Commissioner Murguia was a part of. I welcome and am so happy they had the vision to
drive this forward. When Commissioner DeSeure talks about capacity, I think it is
June 21, 2007
important to note that the Housing Authority is a player on this particular project. At the
beginning of the process I wasn’t that excited about that partnership in terms of how that
was gong to play on Central Avenue, but noting that we are replicating a process that was
used out west in the Delaware project that shows that they have something that is a
positive influence for our community.
This is a mixed-use senior site and that is
important because there are a lot of different housing venues that are needed by senior
citizens today. This is a project that I think you will see other organizations in other parts
of the metropolitan area mimic.
Action:
ORDINANCE NO. O-53-07, “An ordinance making certain findings and
establishing
a
redevelopment
Redevelopment District.”
district
known
as
the
Bethany
Commissioner Miller made a motion,
seconded by Commissioner Kane, to adopt the ordinance. Roll call
was taken and there were ten “Ayes,” Miller, Murguia, Mitchell, Kane,
Pettey, Cooley, Ellison, Holland, DeSeure, Barnes.
ITEM NO. 3 – 070406…PUBLIC HEARING/ORDINANCE
Synopsis:
Hold Public Hearing and approve an ordinance granting tax abatement for
Jason and Alexis Meredith d/b/a Arbor Wood Products, 3150 Dodge Road, for the
expansion of their manufacturing facility, submitted by LaVert Murray, Development.
This expansion would consist of the purchase of a larger building at a cost of $830,000
and estimated new improvements of $25,000. The business currently has 12 employees
and will create 10 jobs within 2 years.
On May 17, 2007, the full commission
unanimously adopted Resolution No. R-54-07 setting the public hearing for June 21,
2007.
LaVert Murray, Development, stated you may recall this project as it went through the
Economic Development and Finance Standing Committee six weeks ago and the full
Commission approved a resolution of intent for this project approximately four weeks
ago. Jason and Alexis Meredith as Arbor Wood Products purchased a facility at 3150
Dodge in Fairfax to house their furniture manufacturing operations at a cost of $830,000
June 21, 2007
and improvements to the subject facility at a cost of approximately $25,000. The project
meets your PILOT policy requirements and will create 10 new jobs to add to the current
employment level of 12. You are presented tonight with the ordinance on this project.
The required cost benefit analysis for this project was performed and it yields a one-year
discounted payback for the taxing entities. Staff recommends that the submitted
ordinance be approved at the conclusion of this public hearing.
Mayor Reardon opened the public hearing.
No one appeared.
Mayor Reardon closed the public hearing.
Action:
ORDINANCE NO. O-54-07, “An ordinance providing exemption for ad
valorem taxation under Section 13, Article 11 of the Constitution of the
State of Kansas for Jason and Alexis Meredith d/b/a Arbor Wood
Products.”
Commissioner DeSeure made a motion, seconded by
Commissioner Pettey, to adopt the ordinance. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
STANDING COMMITTEES’ AGENDA
No items of business
ADMINISTRATOR’S AGENDA
No items of business
COMMISSIONER’ AGENDA
ITEM NO. 1 – 970105…TRAVEL REQUEST
Synopsis:
Request approval to travel to the National League of Cities/NBC/LEO
Conference, in August 2007, submitted by Commissioner Barnes.
June 21, 2007
Action:
WITHDRAWN
ITEM NO. 2 – 970105…TRAVEL REQUEST
Synopsis:
Request approval to travel to the National League of Cities Annual
Conference, in November 2007, submitted by Commissioner Miller.
Action:
Commissioner Kane made a motion, seconded by Commissioner
Barnes, to approve. Roll call was taken and there were ten “Ayes,”
Miller, Murguia, Mitchell, Kane, Pettey, Cooley, Ellison, Holland,
DeSeure, Barnes.
Mayor Reardon adjourned the meeting and reconvened as the Land Bank Board of
Trustee’s.
LAND BANK BOARD OF TRUSTEES’ AGENDA
ITEM NO. 1 – 990366A…LAND BANK CONSENT
Synopsis:
Request consideration of the following applications for non-buildable lots
to adjacent property owners, submitted by Bridgette Cobbins, Land Bank Manager. On
June 4, 2007, the Neighborhood and Community Development Standing Committee,
chaired by Commissioner Holland, voted unanimously to approve and to forward to the
full commission.
Yard Expansion:
1110 Hasbrook – Ruben & Soledad Loya
2312 Delavan – Anthony Perkins
2265 Roswell – Shirley Sanderson
Bridgette Cobbins, Land Bank Manager, stated this is requesting approval for three
parcels.
June 21, 2007
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Ellison, to approve the yard expansions. Roll call was taken and there
were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
ITEM NO. 2 – 990366…LAND BANK
Request consideration of the following applications, submitted by Bridgette Cobbins,
Land Bank Manager.
On June 4, 2007, the Neighborhood and Community
Development Standing Committee, chaired by Commissioner Holland, voted
unanimously to approve and to forward to the full commission.
Bridgette Cobbins, Land Bank Manager, stated this contains three sections. The first
section is requesting approval for a Best and Final for 2270 Russell to Rosemary
Greenlaw.
Best and Finals:
2270 Russell – Rosemary Greenlaw for yard expansion
Beverly Pender for community garden
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Ellison, to approve the yard expansion to Rosemary Greenlaw. Roll
call was taken and there were ten “Ayes,” Miller, Murguia, Mitchell,
Kane, Pettey, Cooley, Ellison, Holland, DeSeure, Barnes.
Bridgette Cobbins, Land Bank Manager, stated this is requesting approval of five
parcels.
Non-buildable (yard expansion):
3114 Farrow – Charlie and Birdeen Braxton
30 S. 20th – Regina Cassares
June 21, 2007
836 Haskell – Phillip Hall
1428 N. 59th – Erin and Andrew Kincaid
1034 Ford – Euclides and Blanca Perez
Action:
Commissioner Barnes made a motion, seconded by Commissioner
Ellison, to approve the Non-Buildable (yard expansions). Roll call was
taken and there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey,
Cooley, Ellison, Holland, DeSeure, Barnes.
Bridgette Cobbins, Land Bank Manager, stated this is requesting approval of two
parcels for parking.
Buildable applications:
101 S. Pyle St. – Felix Briseno
1014 Sandusky – Pablo Ceniceros
Action:
Commissioner Pettey made a motion, seconded by Commissioner
Ellison, to approve the Buildable Applications. Roll call was taken and
there were ten “Ayes,” Miller, Murguia, Mitchell, Kane, Pettey, Cooley,
Ellison, Holland, DeSeure, Barnes.
MAYOR REARDON ADJOURNED
THE MEETING AT 8:20 P.M.
June 21, 2007
_________________________
Tom G. Roberts, CMC
Unified Government Clerk
tk
June 21, 2007