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8.2 PH Sunset Plaza Community Improvement District CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 08/03/2009 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: i1 J5. City Manager's Offic~ r BY: Mike Schrage, Deputy City Mgr. APPROVED FOR AGENDA: ITEM NO. Page I 2 BC-I/i ITEM: Resolution No. 09-6646 Resolution No. 09-6646 providing Notice of a Public Hearing on the Advisability of creating the Sunset Plaza Community Improvement District. BACKGROUND: Community Improvement Districts - In General: The Community Improvement District Act was approved by the Kansas Legislature in 2009 and became effective July 1st. It provides for the creation of Community Improvement Districts (CIDs) to finance eligible projects. In addition to identifying eligible uses of funds, the Act specifies the funding sources and financing tools that can be utilized as well as the method(s) by which a CID can be formed; . In summary, eligible use of funds include: .:. Construction, demolition, renovation, maintenance, etc. of o Buildings o Sidewalks o Streets o Roads o Parking lots o Parking garages o Streets capes o Lighting o Parks o Landscapes o Information booths, bus stops, restrooms and kiosks o Cultural amenities o Mass transit facilities o Lakes, dams levies, waterways, etc. .:. Provision or contracting for the provision of: o Music o News o Child-care o Parking lots or garages o Security personnel, equipment or facilities for the protection of property or persons o Cleaning, maintenance or other services to public or private property o Economic impact planning, marketing or other studies .:. Production and/or promotion of any tourism, recreational or cultural activity or special event .:. Supporting business activity and economic development .:. Providing or supporting business employee training programs CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 08/03/2009 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: ITEM NO. 2 Page 2 Permissible funding sources include: City Manager's Office BY: Mike Schrage, Deputy City Mgr. BY: .:. Special assessments levied on property within the CID .:. Special sales tax, in any increment of .10% or .25% up to a maximum of 2% for a maximum duration of 22 years imposed on the sale of tangible personal property at retail or the furnishing of services within the CID. .:. Any other funds appropriated by the municipality, or .:. Any combination thereof. Unlike 12-6a special assessments, 100% of the assessments must be paid by property owners within the CID and no portion of the special assessments may be paid by the city-at-Iarge. However, special assessments may be reduced by other revenues which can include funds appropriated by the municipality. Another notable difference from the provisions of 12-6a special assessment financing is that the district boundaries may be established and the method of financing may be structured such that not all benefiting parties are within the district, subject to the assessments or sales taxes or considered part of the district for the purpose of identifying required signatures on the petition. Financing alternatives provided in the Act include: .:. Pay-As-You-Go - distribution of the revenue as it is received to the CID for use as originally specified. .:. Full Faith and Credit Bonds (also known as General Obligation or G.O. Bonds) - bonds payable from the CID revenue sources described above and from a pledge of the City's full faith and credit to use its taxing authority in the event that all other authorized sources of revenue are not sufficient. .:. Special Obligation Bonds - bonds payable from the CID revenue sources described above without obligation to utilize taxing powers or any other funds beyond the CID funds described above and committed to by the City as it relates to each specific project. Methods to form a CID vary depending on the proposed funding sources and financing structure as follows: Special Assessment funding without Full Faith & Credit financing - may be initiated by a petition signed by all of the property owners within the proposed district and public notice and hearings may be waived. If the CID proposes use of Sales Tax, Full Faith & Credit financing or less than 100% of the owners signing the petition then the petition must be signed by: .:. The owners of 55% of the land area CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 08/03/2009 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: ITEM NO. Page 3 And 2 City Manager's Office BY: Mike Schrage, Deputy City Mgr. BY: .:. The owners of more than 55% of the assessed value within the proposed CID. Once a valid petition is received the process to authorize a CID includes the following steps: .:. Governing Body adoption of a resolution calling a public hearing on the advisability of creating the CID. .:. Publication of notice of the public hearing twice in the newspaper. .:. Notification of all property owners within the proposed CID via certified mail. .:. Conduct the public hearing .:. Adoption of a Resolution or Ordinance authorizing the CID, approving the cost estimate (if applicable), levying the CID sales tax, approving the amount of any special assessments and approving the method of financing. The Act also provides a 30 day statute of limitation to bring suit or otherwise question the validity of a CID. Sunset Plaza CID Request: As detailed in the attached Resolution and petition, the owners of Sunset Plaza have submitted a petition to create a Community Improvement District to levy a 1 % community improvement sales tax to finance $12,264,920 of improvements to the Sunset Plaza development on a Pay-As-You-Go basis for a period of 22 years or however long it takes to repay the cost of the project, whichever is less. Consequently, the first step in process such a request is to adopt Resolution No. 09-6646 setting the date and time of the required public hearing. CONFORMANCE WITH STRATEGIC PLAN: The proposed action is consistent with the following components of the City's shared vision statement: · Salina will be a city that is exciting to live in and thriving both economically and socially. · The city will be clean, attractive and inviting. · Salina will be a place with a quality of life that not only appeals to residents, but also to visitors. . The city of Salina will be attractive and well maintained. It will be evident that good housekeeping and high community standards are valued. . Salina will encourage and be supportive of industrial development, economic expansion, market-driven tax base growth, and home grown entrepreneurialism. The proposed action is also consistent with the followinq goals contained in the City's strategic plan: CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 08/03/2009 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: ITEM NO. Page 4 2 City Manager's Office BY: Mike Schrage, Deputy City Mgr. BY: Goal #1: The city will create a community of mixed-use, quality development and redevelopment. Goal #4: The city will maintain growth and development policies that are updated to reflect current conditions and desired growth direction. FISCAL NOTE: Adoption of the attached Resolution has no fiscal impact since it merely sets the date and time of a public hearing regarding the formation of a Community Improvement District. In the event that the ultimate outcome of processing the request for a CID is the formation of a Community Improvement District, there is no fiscal impact to the City since the proposed funding sources is an additional community improvement sales tax imposed on the district and the proposed financing method is Pay- As-You-Go distribution of the revenues to the district as they are received. RECOMMENDED ACTION: Since the petition that has been received has been determined to be valid and complete, it is recommended that the City Commission adopt Resolution No. 09-6646 setting the date and time for a public hearing to determine the advisability of creating the Sunset Plaza Community Improvement District.