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Salina STAR Bond Project District • • C11Y MAMA®ER S OFFICE PER Asp MAY 21 2015 Phone:(785)296-1913 Legal Section Fax:(785)296-6809 TTY:711 1000 S.W.Jackson St.,Suite 100 ` i - le al kansascommerce.com Topeka,KS 66612-1354 P € /t g KansasCommerce.com Department of Commerce Pat George,Secretary - / - Sam Brownback,Governor May 8, 2015 Jason Gage City Manager 300 West Ash P.O. Box 736 Salina, KS 67402-0736 RE: Salina STAR Bond Project District Dear Mr:.Gage: Thank you for your letter dated May 13, 2015, in which Salina requests the Secretary of Commerce, pursuant to K.S.A. 12-17,160 et seq. as amended (the "Act"), take action to find and determine that the Salina STAR Bond Project District is "a major commercial entertainment and tourism area" and thus an "eligible area" within the meaning of K.S.A. 12-17,165. In your • request, the Project District is a single project area in the downtown area of Salina as more fully described in Exhibit B to Resolution No. 15-7193 included with your correspondence. The development currently being contemplated in the Project District consists of a mixed-use 'development consisting of: major multi-sport athletic complex, museum facilities; retail uses; restaurant uses; other general commercial development; hotel uses; residential uses; office uses; associated public and private infrastructure; and other items allowable under K.S.A. 12-17,160 et seq. The STAR bond Project District may ultimately consist of multiple STAR bond project areas as delineated in one or more STAR bond project plans to be approved for property within the STAR bond project district. These components will complement other recent development in • the area. Your request indicates the total;cost of the Project will be approximately $122 million and the primary attractions will be the Fieldhouse, designed for indoor basketball, volleyball, wrestling, gymnastics and cheerleading, the Stiefel Theater and a vintage car museum. The Project also • includes up to several hundred thousand square feet of retail and entertainment venues. The Developer has estimated the construction phase of the District will result in 839 direct and indirect jobs with payroll of$40 million and economic impact of$134 million. The Fieldhouse is estimated to draw over 90,000 visitors on an annual basis, many of whom will come from outside the State of Kansas. • • Jason Gage May 8, 2015 Page 2 Based on all the above, it is my determination that the proposed Salina STAR Bond Project District is a major commercial entertainment and tourism area and an "eligible area," for the purpose of establishing a STAR Bond Project District as contemplated by K.S.A. 12-17,165. This approval and designation of the proposed Project District as an "eligible area" should not be construed as approval of any particular STAR Bond Project or Project Plan and is limited to a finding that the proposed Project District constitutes an "eligible area" under the Act as a condition precedent to the city passing an ordinance creating a STAR Bond Project District. Commerce will require additional information prior to being in a position to evaluate the Project for STAR bond financing and determining the appropriate level of STAR bond funding. It is my expectation the City will submit a proposed STAR Bond Project Plan within 90 days from the date of this approval. The Department of Commerce and I look forward to working with Salina as this project continues through the STAR bond process. Sincerely, Pat eorge Secretary of Co ' erce