Economic Development Funding Agreement
City of Salina
Economic Development Grant Offer and Agreement
Offer
This agreement entered into on the~ay of April, 2008 is made by and between the
City of Salina, Kansas, 300 West Ash Street, Salina, KS, herein called the "City", and
Kansas State University at Salina, whose address is 2310 Centennial Road. Salina,
Kansas, herein called the "Grantee."
WHEREAS, the Grantee has submitted to the City an application for grant of City
economic development sales tax funds for facility improvements and major equipment
purchases for the addition of primary industrial jobs; and
WHEREAS, the City's Salina Economic Development Incentives Council (SEDIC)
reviewed Grantee's application and recommended to the Salina City Commission the
granting of$100,000 in City economic development sales tax funds for Grantee's project;
and
WHEREAS, on April 21, 2008, the Salina City Commission approved the expenditure of
$100,000 as an economic development grant for Grantee's project consisting of the
following:
Establishment of the KSUS Applied Aviation Research Center Unmanned
Aircraft Systems Program Office.
The project is described in more detail in the attached application letter submitted by
Grantee, Excerpt of Minutes and copy of Resolution Number 05-6220.
NOWTHEREFORE, pursuant to City of Salina appropriations authority and Resolution
05-6220 and in consideration ofthe Grantee's acceptance of this offer, and the benefits to
accrue to the City of Salina and the public from the accomplishment of the project and
compliance with the assurances and conditions as herein provided, the City of Salina
hereby offers and agrees to pay $100,000 as the City's share of allowable costs incurred
in accomplishing the project.
This offer is made on and subject to the following terms and conditions:
Conditions
1. The maximum obligation of the City of Salina under this Offer shall be $100,000.
2. Payment of the City's share of the allowable project equipment costs as detailed
in the Grantee's attached application will be made pursuant to paid invoices
submitted to the City by Grantee. Grantee may request multiple drawdowns of
grant funds. Grantee shall request Salina Airport Authority certification as to the
purchase and receipt of the office equipment referred to in the attached
application documents. The Grantee will also request Salina Airport Authority
certification that eligible project equipment has been received and located.
3. Upon certification that the DIrector of the UAS Program Office has been hired,
Grantee may request disbursement ofthe balance ofthe project grant funds.
4. Grantee agrees not to resell or dispose of project equipment without the written
permission of the City.
5. The project shall be complete within eighteen (18) calendar months from the
execution date of the Agreement.
6. Grantee shall use every reasonable effort to meet the job creation estimate of 13
new jobs provided to the SEDIC on April 9, 2008.
7. The official contact for the City is:
Lieu Ann Elsey
City Clerk
300 West Ash, P.O. Box 736
Salina, KS 67401
785-309-5735 (0)
785-309-5738 (F)
LieuAnn.Elsev(al,Salina.org
8. The official contact for the Grantee is:
Dr. Dennis Kuhlman
Dean
Kansas State University at Salina
2310 Centennial Road
(785) 826-2601
dkuhlman(al,sal.ksu.edu
The Grantee's acceptance of this offer, ratification and adoption of the project application
incorporated herein shall be evidenced by execution of this agreement by the Grantee,
and the offer and agreement shall comprise a Grant Agreement. Such Grant Agreement
shall become effective upon the Grantee's acceptance of the offer.
City of Salina
~g~
City Manager
Acceotance
Attest:
~~
City Clerk
The Grantee does hereby ratify and adopt all assurances, statements, representations,
warranties, covenants and agreements contained in the project application letter and
incorporated materials referred to in the foregoing offer and does hereby accept the offer,
by such acceptance, agrees to comply with all of the terms and conditions in the Offer
and in the project application letter.
Evidenced this J.. s Ttl
day of Ci:.P,O:;{
.
Kansas State University at Salina
By
(. -
Grantee's eSl ated Official Representative
Paul R. Lowe
Title Assistant Vice President
for Research
Attest: ~~. .j~7
Title: Grants and Contracts Administrator
, 200". '5::1f!fl!
. ~4A- X
By: Dennis K Kuhlman
Title: Dean, KSU-Salina
..[<is
April 3, 2008
_ . Kansas State University.
The Honorable Alan Jilka
Mayor
City of Salina
300 West Ash Street
Salina, KS 67401
K.Stote at Salina
Office of the Dean
2310 Centennial Rood
Salina, KS 67401- 8196
785.826.2601
www.solina.k-stote.edu
E-mail: dean@solino.k-state.edu
RE: Salina Economic Development Incentives Council Grant Application
Dear Mayor Jilka:
Kansas State University at Salina requests SEDIC consideration of a $100,000 grant from the
City of Salina special sales tax fund for economic development. The grant wouid assist K-State
at Salina in the establishment of an Unmanned Aircraft Systems (UAS) Program Office at the
KSUS Applied Aviation Research Center (AARC). The AARC UAS Program Office would be
established in cooperation with the Salina Airport Authority, the Salina Area Chamber of
Commerce and the Great Plains Joint Regional Training Center.
K-State at Salina recently established the Applied Aviation Research Center (AARC) under the
direction of Dr. Kurt Barnhart. AARC completes projects and studies that address the future
propulsion, airframe, avionics, navigation, operation, maintenance and training needs of both
general aviation aircraft and the emerging field of Unmanned Aircraft Systems (UAS).
Currentiy the UAS segment of the aerospace industry is in the midst of rapid growth and
development. To fully meet the potential use of unmanned aircraft for missions such as national
security, disaster response, law enforcement, climate research and pipeline/powerline
inspections; a new generation of pilot I operators need to be trained in unique UAS skills.
Aerospace engineers and industry entrepreneurs need support in applying new designs and
manufacturing techniques to commercially viable UAS aircraft. The emerging Kansas UAS
industry is in need of operator training and a centralized flight planning organization. This is
where K-State at Salina and AARC can help.
The department of Aviation at K-State at Salina has a long history of training aviation practitioners
in the disciplines of both professional piloting and aircraft mechanics. We have the expertise in
operating and maintaining aircraft within the National Airspace System. Our pilots and flight
instructors understand the limitations of Federal Aviation Regulations, practical aerodynamics,
and weather. Our aircraft maintenance students and faculty understand how to maintain aircraft
in top airworthy condition while abiding by all applicable Federal Aviation Regulations. Currently,
the UAS industry needs this type of practical know-how and structure to interface between the
design engineers and those who would benefit from UAS operations.
The establishment of an Unmanned Aircraft Systems Program Office will be a multi-year effort of
the K-State at Salina Applied Aviation Research Center (AARC). It is projected that the total
project funding will be $5 million over five years. An FY 2009 federal appropriations request of
$500,000 is supported by the Kansas Congressional delegation. This federal grant will enable
AARC to meet the UAS training and flight needs of the Kansas Guard's Great Plains Joint
Regional Training Center (GPJRTC) for the CQ-1Q Snowgoose UAS.
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In addition to the GPJRTC funding, AARC is completing negotiations with a private sector firm for
a $50,000 contract to provide operator and flight operations training for a UAS currently in
production, the AAI Corporation Aerosonde UAS.
The immediate need is to enable AARC to staff a UAS Program Office in order to respond to
government and industry needs for operator training, flight planning, mission control, flight test
and future commercial operations.
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AARC Cont.
Kuhlman
Kansas State University has committed $151,967 to establish the AARC UAS Program Office.
The initial start-up budget for the AARC UAS Program Office is $301,967 ($151,967 KSUS,
$100,000 SEDIC & $50,000 Private Sector Contract). A more detailed memorandum outlining a
four-phased approach to establishing a UAS Program Office is enclosed.
A SEDIC $100,000 grant will provide the funding to immediately launch the office and hire a
qualified full time UAS Program Office director. Future federal grants and private sector contracts
in excess of $5 million over the next five years will continue to fund the program office and result
in additional job creation. From an initiallwo jobs, the UAS Program Office is projected to provide
13 jobs within 18 months. The Program Office part-time employees will be KSUS students
gaining their first practical UAS experience.
Thank you for the opportunity to submit our grant request. I look forward to the SEDIC's
favorable recommendation to the City Commission.
Respectfully submitted,
fi~ J: ~
Dennis K. Kuhlman, Ph.D., P.E.
Dean, K-State at Salina
Enclosures:
1. Dr. Kurt Barnhart Memorandum re: Four Phased Plan to establish the AARC UAS
Program Office
2. Timothy F. Rogers, AAE. and James Gregory memorandum re: UAS Industry
Background and Potential for Salina and Saline County
3. Recent Aviation Week & Space Technology articles re: UAS Industry and K-State at
Salina
4. MMIST Snowgoose and AAI Aerosonde Product Information
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RESOLUTION NUMBER 05-6220
A RESOLUTION ESTABLISHING THE SALINA ECONOMIC DEVELOPMENT
INCENTIVES COUNCIL.
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WHEREAS, that in 2004, Salina voters approved a special one-quarter cent ('I. cent) sales
tax and 12.5% of the revenues from the special sales tax were restricted to the establishment of an
economic development fund managed by the City of Salina; and
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WHEREAS, that in October 2004, the City Commission unanimously approved an
initiative proposed by the Salina Airport Authority and the Salina Area Chamber of Couunerce to
provide incentives to new and existing manufacturing and primary businesses; and
WHEREAS, that the City Commission formed an ad hoc committee led by the Mayor and
Vice Mayor to further explore the protocol for expending the economic development funds, which
then resulted in the establislunent of a si~ member Salina Economic Development Incentives
Council. SO NOW THEREFORE,
BE IT RESOLVED by the governing body of the City of Salina, Kansas:
Section I. Establislunent. That the Salina Economic Development Incentives Council
(S.E.D.I.C.) is hereby established.
Section 2. Responsibilities. The responsibilities of the S.B.D.te. are to:
(a) Develop and recommend guidelines, policies and processes to the City
Commission for grants from the allocated special sales tax funds for incentives to
new and existing manufacturers and primary businesses for the purpose of
enticing them to relocate or expand capital and/or human investment in
Salina/Saline County in order to provide a stimulus to the local economy;
(b) Review applications and make specific reconunendations to the City
Commission regarding grants from the sales tax;
(c) Make reconunendations to the City Commission. County Commission and/or
local government bodies regarding other public economic development
incentives; and
(d) Provide regular reports to the City Commission, County Commission, Salina
Airport Authority Board of Directors and the Chamber of Corrunerce Board of
Directors regarding economic development projects receiving incentives. '
Section 3. Membership. The S.E.DJ.C. will be made up oflhe following persons:
(a) Mayor;
(b) Saline County Commission Chair;
(c) Salina Airport Authority Board Chair;
(d) Salina Chamber ofCommerte Board Chair,
(e) Two citizens appointed by the Mayor and the City Conunission; and
(1) Citizen appointed by the Saline County Conunission
The citizens appointed by the City and County shall serve for terms of two years and shall be
eligible for reappointment in accordance with Resolution No. 90-4242. Initial city citizen
appointments shall be staggered to expire February 2007 and February 2008.
Section 4. Organization. The S.E.D.I.C. chair shall be the Mayor and vice-chair shall be the
Salin~ County Commission Chair.
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Section S. Administration. Administration of lhe S.E.D.f.C. shall be as follows:
(a) Meetings are 10 be held at least quarterly, and otherwise as needed for related
projects, projects, programs and funding applications;
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(b) Professional staffing for the S.E.D.LC. to be provided by the City Manager.
Airport Authority Executive Director and Chamber of Commerce President;
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(e) Administrative/clerical support shall be provided by the Chamber of Commerce;
(d) All meetings/records are covered under the Kansas Open Meetings Act and Open
Records Act as specified by State law; and
(e) The use ortecal organizations and other resources is highly encouraged.
Section 6. MisceUaneous. Miscellaneous considerations regarding this council are as
follows:
(a) For purposes of the S.E.D.I.C. "primary business" includes manufacturing,
processing, interstate distribution, research, or service sector businesses which
derive a minirnwn of90% of revenue from sources outside Saline County;
(b) Sales tax grants are to focus primarily on hwnan capital investment in training
and capital investment in plant, property and equipment, with priority given to
human capital investment in training. Also, it is important to ensure that existing
primary businesses remain eligible for grant funding; and
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(e) A program perfonnance review is recommended in the fourth quarter of 2006.
This will allow for a full year of operation and provide an opportunity to make
any adjustments deemed necessary for the remaining tenn of the special sales tax
funding.
Section 7. Effective Date. This resolution shall take effect from and after its adoption.
2005.
Adopted by the Board of Commissioners and Sign~~aY of October,
Deborah Divine, Mayor
[SEAL]
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Commission
Action #
CITY OF SALINA, KANSAS
REGULAR MEETING OF THE BOARD OF COMMISSIONERS
April 21, 2008
4:00 p.m.
The City Commission convened at 3:45 p.m. in a Study Session for a Citizens' Open Forum. The Regular
Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. A
roll call was taken followed by the Pledge of Allegiance and a moment of silence.
There were present: Mayor John K. Vanier II, Chairman presiding; Commissioner Alan E. Jilka; Commissioner
Luci Larson; Commissioner Aaron Peck; Commissioner R. Abner Perney
Absent: None
ADMINISTRATION
(8.1) Approval of a request to assist in establishing an Unmanned Aircraft Systems Program Office at
Kansas State at Salina's Applied Aviation Research Center.
Jason Gage, City Manager, eXplained the request, market study conducted by Flint Hills Solutions,
cost-benefit analysis, and the Salina Economic Development Incentive Council's recommendation. Mr. Gage
noted Dennis Kuhlman with Kansas State at Salina, Col. Randy Roebuck with the Great Plains Regional
Training Center, and Tim Rogers with the Salina Airport Authority were available for additional questions.
Mayor Vanier asked Mr. Rogers to briefly describe how this would fit in with the aviation service
center and future plans ofthe Salina Airport Authority. Mr. Rogers explained the Airport Authority's strategic
plan and the benefits the program could provide the community.
Dr. Kuhlman explained the potential opportunities the program would provide Kansas State at
Salina as well as the community. Dr. Kuhlman then responded to Commissioner Larson's question on how did
the other communities compare to Salina. Dr. Kuhlman noted the partnership with the Great Plains Regional
Training Center was an asset to the program.
08-7497 Moved by Commissioner Peck, seconded by Commissioner Larson, to approve the requestto assist
in establishing an Unmanned Aircraft Systems Program Office at Kansas State at Salina's Applied Aviation
Research Center in an amount not to exceed $100,000. Aye: (5). Nay: (0). Motion carried. I
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ADJOURNMENT
08-7502 Moved by Commissioner Larson, seconded by Commissioner Perney, that the Regular Meeting of
the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 4:55
p.m.
/s/ John K. Vanier II
John K. Vanier II, Mayor
[SEAL]
ATTEST:
/s/ Shandi Wicks
Shandi Wicks, Deputy City Clerk
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