04-29-1986 Minutes
Minutes of
Business Improvement District No.1 Adivisory Board
Meeting, April 29, 1986
The Business Improvement District No.1 Advisory Board met on Tuesday,
April 29, at 4:30 p.m. Members present were Paul Warden, Patrik
Neustrom, Carrol Beggs, Gary Rumsey, Coleta Johnson, Andy AndE!rson, Llohn
Heline and Jim Graves. City Commissioners present were John Burgess,
Steve Ryan, Sydney Soderberg and Joe Ri tter. Also present wey'e Ann
Knowles, Rufus Nye, John Shaver, Laurin Schutter and Bruce Boettcher
from Grand American Hotel Corporation in Overland Park. About 20
citizens attended.
The Salina Motel Partnership proposed that the BID make approximately
$78,000 in SMP approved external repairs to the buildings and grounds of
the SMP project. Salina Motel Partnership also proposed that the BID
create a line of credit for SMP in the amount of $150,000. This is to
cover unexpected construction costs and/or a working capital loan to
carry SMP through the fi rst three years of operati ons. The gE!nera 1
ter~s of the line of credit are as follows:
1)
Drawable upon request of SMP,
2)
Principal repayable at 20% per year during each year' in which
average annual room occupancy reaches 55% and average room rates
reach $35/night,
3)
4)
No personal guarantees or other collateralization,
Interest rates: first 2 years - no interest
3rd and 4th years - 5%
thereafter - 7 1/2%,
5)
Interest payable annually by SMP.
The BID Advisory Board recommended that the City adopt a policy of
spending $3.00 per square foot or the cost of cleaning, sealing and
tuck-pointing the exposed walls, whichever is less, in the downtown
project facing arcades and parking lots and that the City, prior to
committing funds to a project, enter into a binding agreement to require
that the walls be properly maintained in the future. The motion was
passed unanimously.
The BID Advisory Board appointed a subcommittee made up of Jim Graves,
Gerald Shadwick, Andy Anderson and Gary Rumsey to work out
recommendations regarding Grand American Hotel's request for assistance
in purchasing the Hilton property. Those recommendations, upon
completion, will be forwarded to the City Commission.