The URL can be used to link to this page

Salina Ks (RHID South View Estates) 2021 Bond Transcript600596.20000\DOCUMENT INDEX i Gilmore & Bell, P.C. 11/12/2021 CITY OF SALINA, KANSAS SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT ___________ DOCUMENT INDEX ___________ Document Number PROCEEDINGS RELATING TO THE SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT (“RHID”) 1. Excerpt of Minutes of governing body meeting adopting Resolution No. 21-7954 and Resolution No. 21-7955 (May 3, 2021) 2. Resolution No. 21-7955 making certain findings and determinations as to the need for housing within the proposed RHID 3. Affidavit of Publication of Resolution No. 21-7955 in the Salina Journal (May 10, 2021) 4. Secretary of Commerce Approval Letter for Resolution No. 21-7954 and Resolution No. 21-7955 (May 21, 2021) 5. Excerpt of Minutes of governing body meeting adopting Resolution No. 21-7985 (September 13, 2021) 6. Resolution No. 21-7985, considering the establishment of the RHID, adopting a plan for housing and public facilities in district, and establishing public hearing date. 7. Affidavit of Publication of Resolution No. 21-7985 in the Salina Journal (October 5, 2021) 8. Certificate of Mailing (October 12, 2021) 9. Excerpt of Minutes of governing body meeting passing Ordinance No. 21-11090 (October 18, 2021) 10. Ordinance No. 21-11090 establishing the RHID and adopting the Development Plan 11. Affidavit of publication of Ordinance No. 21-11090 in the Salina Journal (October 22, 2021) 600596.20000\DOCUMENT INDEX ii 12. Development Agreement (August 30, 2021) Exhibit A Property Description Exhibit B Property Map Exhibit C Eligible Costs for South View Estates Development Exhibit D Certification of Substantial Completion Form Exhibit E Request for Reimbursement Form Exhibit F Project Milestones Exhibit G Required Housing Standards Exhibit H Development Plan Exhibit I Funding Agreement Exhibit J Fire Marshall Approved Safety Plan Exhibit K Agreement between City and County 13. Development Plan (August 30, 2021) Exhibit A – Legal Description and Map of the District Exhibit B – Site Plan Exhibit C – Development Agreement Exhibit D – Comprehensive Financial Feasibility Analysis 14. Funding Contract between City and County (August 18, 2021) 15. Funding Agreement (August 30, 2021) 16. City Clerk’s Certificate of Transmittal and No Nullification (November 17, 2021) * * * * * EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON MAY 3, 2021 The governing body met in regular session at the usual meeting place in the City, at 4:00 p.m., the following members being present and participating, to-wit: Present: Mayor Melissa Rose Hodges (presiding), Commissioners Trent W. Davis, M.D., Michael L. Hoppock and Karl F. Ryan The Mayor declared that a quorum was present and called the meeting to order. * * * * * * * * * * * * * * (Other Proceedings) Thereupon, there was presented a Resolution entitled: A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR THE HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. Thereupon, Commissioner Hoppock moved that said Resolution be adopted. The motion was seconded by Commissioner Davis. Said Resolution was duly read and considered, and upon being put, the motion for the adoption of said Resolution was carried by the vote of the governing body, the vote being as follows: Aye: (3) Davis, Hoppock, Ryan Nay: (I) Hodges Thereupon, the Mayor declared said Resolution duly adopted and the Resolution was then duly numbered Resolution No. 21-7955 and was signed by the Mayor and attested by the Clerk. * * * * * * * * * * * * * * On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE RESOLUTION NO. 21-7955 A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR THE HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. WHEREAS, K.S.A. 12-5241 et seq. (the "Act") authorizes any city incorporated in accordance with the laws of the State of Kansas (the "State") with a population of less than 60,000 located in a county with a population of less than 80,000, to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body of such city shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the establishment of a rural housing incentive district and providing the legal description of property to be contained therein; and WHEREAS, after publishing such resolution, the governing body of such city shall send a copy thereof to the Secretary of Commerce of the State (the "Secretary") requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretary agrees with such findings, such city may proceed with the establishment of a rural housing incentive district within such city and adopt a plan for the development or redevelopment of housing and public facilities in the proposed district; and WHEREAS, the City of Salina, Kansas (the "City") has an estimated population of 47,707 (2010) is located in Saline County, Kansas which has a population of 55,606 (2010) and therefore constitutes a city as said term is defined in this act; and WHEREAS, the Governing Body of the City has performed a Housing Needs Analysis (Live Salina Housing Assessment and Strategic Plan dated January 25, 2016 (the "Needs Analysis"), a copy of which is on file in the office of the City Clerk; and WHEREAS, based on the Needs Analysis, the Governing Body of the City proposes to commence proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act. SO NOW THEREFORE, BE IT RESOLVED by the Governing Body ofthe City of Salina, Kansas, as follows: Section 1. The Governing Body has previously adopted and incorporated by reference as part of this Resolution the Needs Analysis, a copy of which is on file in the office of the City Clerk, and based on a review of said Needs Analysis makes the following findings and determinations. Section 2. The Governing Body hereby finds and determines that there is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. Section 3. The Governing Body hereby finds and determines that the shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. Section 4. The Governing Body hereby finds and determines that the shortage of quality housing is a substantial deterrent to future economic growth and development in the City. Section S. The Governing Body hereby finds and determines that the future economic wellbeing of the City depends on the Governing Body providing additional incentives for the construction or renovation of quality housing in the City. Section 6. Based on the findings and determinations contained in Sections 2 through 5 of this Resolution, the Governing Body proposed to establish a Rural Housing Incentive District pursuant to the Act, within boundaries of the real estate legally described and depicted in the map in Exhibits ''A-I" and "A-2" attached hereto. Section 7. This Resolution shall take effect after its adoption and publication once in the official City newspaper. APPROVED AND PASSED by the Governing Body of the City of Salina, Kansas, this 3rd day of May, 2021. Exhibit "A-1" Legal Description Lots l through 26, Block 2, Lots 1-10, Block 3, Lots l through 26, Block 4, and Lots l through 13, Block 5, in the Ryan Addition to the City of Salina, Saline County, Kansas. Exhibit "A-2" RHIDMap Ryan Addition Subject Area 1-•-"-··-··-;~hlffl;, Rd·-·-··-··-· --··-, ___ .. _ .. ______ _ l, ________ ,_ ·-·· .. _ ·-·------~---··1 i EffiE, I &r.ieburn st i I II~-~~~--~ --.,..~~~~~.;,;-.~~-~ ~ 11r Harbor Or I! l Mcintosh St 1 inch = 400 feet ~ llil 111111 1 1 U ( ,-·---, 1 Nautical Or I r·_.L.l __ U_JIL.LL.l .. l.lJ .. -.J j i ! i l :-··-··-··--, -··--··--··-··---··-··--··--··-··-·' . ·-··-"-" . ·" . . . . -~ : ,. : ~ .~ ... . : .. .. I I 11 I I Publisher's Affidavit I, __ D,Wlieh.w.hw.iu;e...i.N.J.1e..,laso~n..._ ___ , being duly sworn declare that I am a I egaJ CoorcUuamr of THE SALINA JOURNAL, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, which newspaper has been admitted to the mails as second class matter in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice, and that the Resolution No. 21-7955 Notice has been correctly published in the entire issue of said newspaper one time, publication being given in the issue ru 9;h,t,k)I\S[Q~ Subscribed and sworn to before me, this A.D.201:!._ Printer's Fee $340,50 A • CHRISTY FINK l\!lii9 Notary Public• St1t1 of Kmll My Appt. Expires (Publllled In Ille --9£ 11' RESOLVED Ii'/ lhe 11ay10,-, OMrlq Body ol ---~ • .1 lll!80LIITl0JIMI).... Sib. Knll, ·--I' A 11!90U1'11011 IIAIQIIQ S1C111a11 1, ltlt SIMlffllnf CVITAIII AIIDIMGI AIII Wt° • ~ ldCll6d DETERIIINATIOIIS ASS lllll ~ tit tnlltllCII. NEED FOR M tpllldlllJ~hNea WITMIN TKE cm Of ~ a~ 41 whiltl la <ll '118 'KANSAS AND SETTIIIG •1n 1111 o1b d lit Cly Cilll, lrld THE LEGAL DESCRIPTllllf" Of bald an 1 ~ al uiJ NelC19 R£AL PIIOPUm PRIIPOIED ,..,. -.. 1111 1a1oM1; 10 H DESIGIIATEI) U A -.ni-.milllln. I IIURAL IIIIIISING INCENTIVE ..... I. Thi ~ !lll9TIIICTWITltlN Mlffl. Boot hflb)'hil 111d deannilM . WIIEREAS, K.8.A. 12-sMI 11111 ,-lat.._ ol qully 11-. (hW)dlalim ~ GI mu TIICt 1111g11 rift cly ~ In lnhtliydllfillhbeltllbll .~ 111!1 .. .. .. ... nl .... ~ oll'olS.ol!Clr-.(h ..... . "Sla1 willl I pcjN■llorl ol 9lclloll I, Tte GoMirG -than S0,000 10.s In IIDct, 1-..i, fndl and~ aQlll'fywMl ■,-ioriri W18....,...alqllllly1Nllg lea"-180,000,ID--can 111...-SIDl)IIMl and tlill rural ho11A111 lnclintili tddlNINI ~ --are d.llllclllltillldlcly;nl ~oimr ID nicnge =·:::.= t,epriwfjl._.lD~or b"'"' ol IIUCII .., 11h11 ..,_._.,.lnhCl't -, -, lllcdon 4, Thi lbenq ~ I ,..._ Midi Body lllllby llnill and~ ll'llljlit IO dlleRnlnl __., that Ille shor1lgl al quality /lousing l -.,, hCulln9 111D l8ll ls •·&lbMlltlidlllantl( 10 Min wtthn .. 00lllllll'ly;Md econonicglllllllt lllld ~ WHEREAS,* Mluclilg ilfl8(:4 .... ,llltpwig ll■ctior1L Tot~ body of IUCII tty -, Body hnby l\ndl !RI .... ad0l)t 1 ,...ian ~ 11181 lhl hM ~ :-' .-.,.~ ~ ~ ol_lhl Ct;_. GA ..,....... rm!l<I dtllril:t 1ht GMning Body .... ON-'lj additianlll lnc:er1ilel b' !he and prMilg ,. ltgll Q)llllndloll or lll10'llliioll of I ~ ol ~ lo bt ~~ in fie Cly. ooclllineddw"1;Md . IICIOI e. lllted on ile WHE!IEAS, lllet Plll#inG rindlngl and dllelmlnetionl li sllCllrM>Uicrl,lhl~ caailld In~ 2 ~ 5 .,, t>odyallllChcqftl.-■ olflil~lllta-ning copy IIIIC'Mllo flt~ Body,ll!IOl'dtollldsha Rural al Commt!ct ol l'ol ~ 1NlnginclnMOi11111:tP111'1U1111 (ile 'Secllllry") ~ lolwAll.w!Nnbolr,dartnolltle hllhellecllary~.., hll .... 11Q111J delcllled and 1ht lnctw.l conlllNI II lldl '• ltlw 1111P in Emllb 't,, =~":..,.-... r n'A-r ■IIIChedhMk>. ' .... -, ledloll7. llilllesolliioll .,_'11r!ludlN9, plllllllil'"8ctalle!lladCll)tilx1 IUCh c1J 1111¥ ~ will 111d pa1i1c111or1 D11C1 In ill olldll 11\e NllibWnllll ot I nnl ,.,... _ ~ n)ll11hle ClilllriCI .,,., ·-.......... - wlll'ill ad! c:IJ fllll-~ ~ NCI 'P46SED ti, pllll b t,a ~ or tit &q,.m;ng Body Ill ._ C)y ftdMlopmeli al IIOlllllg ri Salin&, Klnsll, lllil 3rd -ol npu111c1■c11ies1J1~ ...,1 propolldOlll1lcl;■nd May,-. WHEREAS, fl8 Cly af. San. 1(.-1111.'Clyj . ., .... ~ o1 '1:NI (20\0) II belled ATTEST: ·n s■11ne ~. ~ :·., ,, •. whiclt ta I poiMIIIIIIIII GI .kMln~MlerfoRI. <:ayClin 55,U (3)10) nl "8llbt OIIIIIIIMtacty••"l'II ildthd 111!111111111; nf . ~ WHEIIEAI, llt ~ Bodyolt,eClyt-. ~•HMrlgNeea Anatfsill (live Sib~ Al......,. and Slllllgic. Pi.idlllld--,25.2018 (h"Needl~ •• flllllC6:.C Legal~ t eva.;i te. Bloc:i 2. Lob 1.-0.IIIDclk3.Lllll1 f'irolql26, lllocl.,\nll.111111 t,w;i 13, 8lodl 5, In !he Ry-, Adcillon to /lie Qly ol Saini, Slh COUfy, copy af 1llicll ii on II l'1 l'ol A nip II ■-Ible in 1111 olft0e af alb ol 11\e Cly Clllt; nf •Ill Q1y 0-. 300 W. Alh Slrall. WHEREAS. 11111d an , (1t) "' Needl Mllftia, .. ~ Bodyollleet; Pfup(INI lo Cllftl!IIIICI procllClnga ....-y toCfllieaF\nl~ lnc:erM !lillri(I, ii accoldlra -..,, h .... olthlld..90 I . IIOlntERl!fORE, DocuSign Envelope ID: A7631174-DBE1-4D79-8E3D-7EAE412132C6 Department of Cornmerce l 000 S. \V, Jackson St, Suite 100 Topeka, KS 66612-13 54 David C. Toland, Acting Secrdary May 21, 2021 Lauren Driscoll Director City of Salina 300 West Ash P.O. Box 736 Salina, Kansas 67402-0736 Department ol'Con1merce Phone: (785) 296-5298 Fax: (785)296-5055 KansasComrnerce.gov Laura Kelly, Governor RE: Request for Approval of Rural Housing Incentive District -City of Salina Dear Ms. Driscoll: This will acknowledge receipt of the City of Salina application dated May 12, 2021 related to participation in the Kansas Rural Housing Initiative District Act. The current application is for two Rural Housing Incentive Districts. I have reviewed Resolution No. 21-7954 and Resolution No. 21-7955 passed by the governing body and submitted to the Kansas Department of Commerce (Commerce) pursuant to the Rural Housing Incentive District Act found at K.S.A. 12-5241 et seq. I have further reviewed the Housing Needs Analysis (Analysis) prepared by the City and upon which the resolutions are based. The process of establishing a Rural Housing Incentive District requires the Analysis to summarize and determine the nature and extent of housing needs within the community. The Analysis must then be adopted by the governing body and is subject to the review and approval of the Secretary of Commerce. The Act sets out four findings and determinations which must be included in the Analysis and adopted by the City. Based on my review of the original application material and supplemental information provided by the City of Salina, I hereby agree with and approve the findings set forth in the resolution passed by the City of Salina to wit: 1. There is a shortage of quality housing, including affordable single family and multi- family apartment units, at various price ranges in Salina despite the best efforts of public and private housing developers; 2. The shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing development in Salina; DocuSign Envelope ID: A763117 4-DBE 1-4D79-8E3D-7EAE412132C6 Lauren Drisco 11 May 21, 2021 Page 2 3. The shortage of quality housing is a substantial deterrent to the future economic growth and development of Salina; and 4. The future economic well-being of Salina depends on the governing body providing additional incentives for the construction or renovation of quality housing in Salina. Commerce believes the Analysis and findings by the governing body of Salina meet the requirements set forth in K.S.A. 12-5244(a) and this constitutes the approval required by K.S.A. 12-5244(c) for the various Districts as more fully described in Resolution No. 21-7954 and 21- 7955. The application for approval of the findings required for the establishment of the Rural Housing Incentive Districts as set forth in the Application is hereby approved. This approval is predicated solely upon the information and data received from Salina. If you have any questions regarding this matter, please let me know. Sincerely, David C. Toland Lt. Governor and Secretary of Commerce cc: Ryan Vincent (KHRC) Robert North 600596.20000\RESOLUTION CALLING HEARING 2 v.1 Gilmore & Bell, P.C. 09/08/2021 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON SEPTEMBER 13, 2021 The governing body met in regular session at the usual meeting place in the City at 4:00 P.M., the following members being present and participating, to-wit: Mayor MELISSA ROSE HODGES; Commissioners TRENT W. DAVIS M.D., MICHAEL L. HOPPOCK, AARON PECK and KARL RYAN Absent: NONE The Mayor declared that a quorum was present and called the meeting to order. * * * * * * * * * * * * * * (Other Proceedings) There was presented a Resolution entitled: A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS DETERMINING THAT THE CITY IS CONSIDERING ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC FACILITIES IN SUCH PROPOSED DISTRICT; ESTABLISHING THE DATE AND TIME OF A PUBLIC HEARING ON SUCH MATTER, AND PROVIDING FOR THE GIVING OF NOTICE OF SUCH PUBLIC HEARING (SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT) Commissioner MICHAEL L. HOPPOCK moved that the Resolution be adopted. The motion was seconded by Commissioner KARL RYAN. The Resolution was duly read and considered, and upon being put, the motion for the adoption of the Resolution was carried by the vote of the governing body as follows: Yea: MELISSA ROSE HODGES; TRENT W. DAVIS M.D., MICHAEL L. HOPPOCK, AARON PECK and KARL RYAN. Nay: NONE. The Mayor declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 21-7985 and was signed by the Mayor and attested by the Clerk. The Clerk was directed to arrange for the publication of the Resolution one time in the official newspaper of the City not less than one week or more than two weeks preceding the date fixed for the public hearing. * * * * * * * * * * * * * * (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office.~--- (SE •···••······ .. .. / 0 0P.GAN/Zc~· .... . . . . i 1870 J . . . . .. ---·~ .. .. .. .... . ... 600596.20000\RESOLUTION CALLING HEARING 2 (Signature Page to Excerpt of Minutes) (Published in the Salina Journal on October 5, 2021) RESOLUTION NO. 21-7985 A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS DETERMINING THAT THE CITY IS CONSIDERING ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC FACILITIES IN SUCH PROPOSED DISTRICT; ESTABLISHING THE DATE AND TIME OF A PUBLIC HEARING ON SUCH MATTER, AND PROVIDING FOR THE GIVING OF NOTICE OF SUCH PUBLIC HEARING (SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT) WHEREAS, the Kansas Rural Housing Incentive District Act, K.S.A. 12-5241 et seq. (the "Act") authorizes any city incorporated in accordance with the laws of the state of Kansas (the State) with a population of less than 60,000 to designate rural housing incentive districts within such city; and WHEREAS, the City of Salina, Kansas (the "City") has an estimated population under 60,000, and therefore constitutes a city as said term is defined in the Act; and WHEREAS, the governing body of the City (the "Governing Body") has performed a Housing Needs Analysis and adopted the same by Resolution No. 21-7955 dated May 3, 2021 (the "Analysis"), a copy of which is on file in the office of the City Clerk; and WHEREAS, Resolution No. 21-7955 adopted by the Governing Body made certain findings relating to the need for financial incentives for the construction of quality housing within the City, declared it advisable to establish a rural housing incentive district pursuant to the Act and authorized the submission of such Resolution and the Analysis to the Kansas Department of Commerce in accordance with the Act; and WHEREAS, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated May 21, 2021, authorized the City to proceed with the establishment of a rural housing incentive district pursuant to the Act; and WHEREAS, the City has caused to be prepared a plan (the "Plan") for the development or redevelopment of housing and public facilities in the proposed South View Estates Rural Housing Incentive District (the "District") in accordance with the provisions of the Act; and WHEREAS, the Plan includes: I. The legal description and map required by K.S.A. 12-5244(a); 2. The existing assessed valuation of the real estate in the proposed District listing the land and improvement values separately; 3. A list of the names and addresses of the owners of record of all real estate parcels within the proposed District; 4. A description of the housing and public facilities project or projects that are proposed to be constructed or improved in the proposed District, and the location thereof; 5. A listing of the names, addresses and specific interests in real estate in the proposed District of the developers responsible for development of the housing and public facilities in the proposed District; 600596.20000\RESOLUTION CALLING HEARING 2 v. l 6. The contractual assurances, if any, the Governing Body has received from such developer or developers, guaranteeing the financial feasibility of specific housing tax incentive projects in the proposed District; 7. A comprehensive analysis of the feasibility of providing housing tax incentives in the proposed District as provided in the Act, which shows that the public benefits derived from such District will exceed the costs and that the income therefrom, together with all public and private sources of funding, will be sufficient to pay for the public improvements that may be undertaken in the District. WHEREAS, Resolution No. 21-7972 adopted by the Governing Body on July 26, 2021, proposed to continue proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act, and adopt the Plan, by the calling of a public hearing on such matters scheduled the public hearing for September 13, 2021; and WHEREAS, a portion of Resolution No. 21-7972 was inadvertently omitted from the publication in the City's official newspaper required by the Act; and WHEREAS, the Governing Body proposes to continue proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act, and adopt the Plan, by the calling of an additional public hearing on such matters to allow for publication in accordance with the requirements of the Act. THERFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansas as follows: Section 1. Proposed Rural Housing Incentive District. The Governing Body hereby declares an intent to establish within the City a rural housing incentive district. The District is proposed to be formed within the boundaries of the real estate legally described in Exhibit A attached hereto, and shown on the map depicting the existing parcels of land attached hereto as Exhibit B. A list of the names and addresses of the owners of record of all real estate parcels within the proposed District and the existing assessed valuation of said real estate, listing the land and improvement values separately, is attached hereto as Exhibit C. Section 2. Proposed Plan; Development Agreement. The Governing Body hereby further declares its intent to adopt the Plan in substantially the form presented to the Governing Body on this date. A copy of the Plan shall be filed in the office of the City Clerk and be available for public inspection during normal business hours. A description of the housing and public facilities projects that are proposed to be constructed or improved in the proposed District, and the location thereof are described in Exhibit D attached hereto. A summary of the contractual assurances by the developer and the comprehensive feasibility analysis is contained in Exhibit E attached hereto. In addition, the City has negotiated a development agreement (the "Development Agreement") between the City and South View Estates LLC (the "Developer"), relating to the South View Estates Rural Housing Incentive District, the development thereof, and the construction and payment of improvements related thereto. The Development Agreement is hereby approved in substantially the form presented to the Governing Body, with such changes or modifications as may be approved by the City Manager and as may be approved as to form by the City Attorney. Related thereto, the City has also negotiated a funding agreement (the "Funding Agreement") between the City and the Developer, relating to the Developer providing to the City an initial deposit of money to be used as a source of funds to finance costs incurred by the City for legal, financial, planning, inspection, and other services, or for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the Developer to review, evaluate, process, 600596.20000\RESOLUTION CALLING HEARING 2 v. I 2 and inspect the District and its related housing and public facilities projects. The Mayor is hereby authorized to execute the Development Agreement and the Funding Agreement and such other documents as may be necessary to implement the intent of this Resolution, the Development Agreement and the Funding Agreement, as may be approved by the City Manager and as may be approved as to form by the City Attorney, by and on behalf of the City and the City Clerk is hereby authorized to attest such signature. Section 3. Public Hearing. Notice is hereby given that a public hearing will be held by the Governing Body of the City to consider the establishment of the District and adoption of the Plan on October 18, 2021 at the City Council Meeting Room within the City-County Building located at 300 W. Ash Street, Room 107, Salina, Kansas 67401; the public hearing to commence at 4:00 p.m. or as soon thereafter as the Governing Body can hear the matter. At the public hearing, the Governing Body will receive public comment on such matters, and may, after the conclusion of such public hearing, consider the findings necessary for establishment of the District and adoption of the Plan, all pursuant to the Act. Section 4. Notice of Public Hearing. The City Clerk is hereby authorized and directed to provide for notice of the public hearing by taking the following actions; I. A certified copy of this resolution shall be delivered to: A. The Board of County Commissioners of Saline County, Kansas; B. The Board of Education of Unified School District No. 305, Saline County, Kansas (Salina); and C. The Planning Commission of the City of Salina, Kansas. 2. This Resolution, specifically including Exhibits A through E attached hereto, shall be published at least once in the official newspaper of the City not less than one week or more than two weeks preceding the date of the public hearing. 3. This Resolution, including Exhibits A through E attached hereto, shall are available for inspection at the office of the clerk of the City at normal business hours. Members of the public are invited to review the plan and attend the public hearing on the date announced in this Resolution. Section 5. Further Action. The Mayor, City Manager, City Clerk and the officials and employees of the City, including the City Attorney and Gilmore & Bell, P.C., are hereby further authorized and directed to take such other actions as may be appropriate or desirable to accomplish the purposes of this Resolution. Section 6. Effective Date. This Resolution shall take effect after its adoption by the Governing Body. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20000\RESOLUTION CALLING HEARING 2 v.l 3 2021. (SEAL) Melissa RoseHodgs,Mayor ATTEST: 600596.20000\RESOLUTION CALLING HEARING 2 (Signature Page to Resolution) CERTIFICATE I hereby certify that the above and foregoing is a true and correct copy of the Resolution No. 21-7985 adopted by the Governing Body of the City on this 13t1J day of September, 2021 as the same appear of record in my office. DATED: September 13, 2021 Jo 600596.20000\RESOLUTION CALLING HEARING 2 (Certificate to Resolution) EXHIBIT A LEGAL DESCRIPTION OF PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline, County, Kansas. 600596.20000\RESOLUTION CALLING HEARING 2 A-1 _J I EXHIBITB MAP OF PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT L. _____ ,._ ·-· --· -··-· -··-.. - rounta1n Dr __ ,n~S1 __ ;; ,... _ _,.._-"'-_...J __ :__, B±ffi~ 0 ~ Harbor Dr I,! ~ w 11111111 1 1 i' l i l Naut1al Dr I 11111111111111 ~ r·-··-··-··-··-··-··-··-··-··-··-· ·-··-··-··--J sh St 600596.20000\RESOLUTION CALLING HEARING 2 v .1 B-1 EXHIBITC NAMES AND ADDRESSES OF THE OWNERS OF RECORD OF ALL REAL ESTATE PARCELS WITHIN THE PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT AND THE EXISTING ASSESSED VALUATION OF SAID REAL ESTATE PARCELS AND NAMES AND ADDRESSES OF THE DEVELOPERS Owner of Real Property: Developer: Quail Meadow Estates, Inc. 2601 S. Ohio St. Salina, Kansas 67401 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 Existing Assessed Valuation of the District: Land -$708 Improvements -$0 600596.20000\RESOLUTION CALLING HEARING 2 v. l C-1 EXHIBITD DESCRIPTION OF THE HOUSING AND PUBLIC FACILITIES PROJECT OR PROJECTS THAT ARE PROPOSED TO BE CONSTRUCTED OR IMPROVED IN THE PROPOSED SOUTH VIEW ESTA TES RURAL HOUSING INCENTIVE DISTRICT Housing Facilities The housing facilities consist of constructing forty-two (42) single family homes (approximately 1,100 square feet each) with 2 or 3 bedrooms depending on the unit type, l-2.5 bathrooms, and a one-car garage; and sixty-six (66) townhome units (thirty-three (33) structures) (approximately 950-1100 square feet each) with 2 or 3 bedrooms depending on the unit type, l-2.5 bathrooms, and a one-car garage Public Facilities Public facilities and public improvements will include construction of Infrastructure Improvements located within the boundaries of the District, and all related infrastructure, including but not limited to parking, water, sanitary sewer, storm sewer, gas, and electric improvements as outlined in the Development Plan and Agreement. Infrastructure improvements may be constructed prior to or concurrently with the housing facilities in the project. 600596.20000\RESOLUTION CALLING HEARING 2 v. I D-1 EXHIBITE SUMMARY OF THE CONTRACTUAL ASSURANCES BY THE DEVELOPER AND OF THE COMPREHENSIVE FEASIBILITY ANALYSIS Contractual Assurances The Governing Body of the City of Salina will enter into a development agreement with South View Estates, LLC, the developer. This agreement, as supplemented and amended, includes the project construction schedule, a description of projects to be constructed, financial obligations of the developer and financial and administrative support from the City of Salina, Kansas. Feasibility Study The developer has conducted a study to determine whether the public benefits derived from the District will exceed the costs and that the income from the District, together with other sources of revenue provided by the developer, would be sufficient to pay for the public improvements to be undertaken in the District. The analysis estimates the property tax revenues that will be generated from the Development, less existing property taxes to determine the revenue stream available to support the costs of the public infrastructure. The estimates indicate that the revenue realized from the project would be adequate to pay the costs of the public infrastructure. 600596.20000\RESOLUTION CALLING HEARING 2 v.1 E-1 PROOF OF PUBLICATION City Of Salina 300 WASH ST SALINA KS 67401 LOCALiQ Tl'1e Garden City Tele9ra1n The Hays Daily News I Salina Jou, nal The Hutcl1inson News I The Ottawa Herald STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 10/05/2021 Sworn to and subscribed before on 10/05/2021 My commision cxpi1·cs Publication Cost: $1177 .28 Order No: 6345402 Customer No: 601533 PO#: THIS IS NOT AN INVOICE! Please do 1101 use This /imn /or paymenl remillcmce, SHELLY HORA Nota·rv Public State of Wisconsin # of Copies: -1 PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 2 (Published 111 lhe Salina Journal on Oclolmr 5, 2021) RESOLUTION NO. 21-7985 A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS DETERMINING THAT THE CITY IS CONSIDERING ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC FACILITIES IN SUCH PROPOSED DISTRICT; ESTABLISHING THE DATE AND TIME OF A PUBLIC HEARING ON SUCH MATTER, AND PROVIDING FOR THE GIVING OF NOTICE OF SUCH PUBLIC HEARING (SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT) WHEREAS, the Kansas Rural Mousing Incentive Dislncl Acl, KS A 12-5241 ct seq, (lhe "/I.cl') aulhonzes any c1ly incorporated in accordance with the laws or the slate of Kansas (lhe Slate) wilt1 a populaliou ol less lhan 60.000 lo des1gnale rural lmusmg incenlive districts within such city; and WHEREAS, lhe City of Salina, Kansas (the "City') has an es11malcd populal1on under 60,000, and 1herefore constitutes c1 city as said term is derined in Lile Act; and WHEREAS, the governing body of the Ci1y (the "Governing Body ) h.:is performed a Housing Needs Analysis c1nd c1dopled the same IJy Resolution No. 21-7955 dated May 3, 2021 (lhe "Analysis'), a co1JY ol which is on rile in 1he olfice ol lhe City Clerk; and WHEREAS, Resolulion No 21-7955 adopted hy the Governing Body made certain 11ndings relating to llle nee ti lor financial incentives for Ille construclion o1 quality !lousing withm the City, declaied il advisable to eslnblish a rural housmg incentive district pursuanl lo the Act and authorized the submission ol sucl1 Resolulmn and l11e Analysis to the Kansas Oepnrtment or Commerce in accordance with lhe Act; and WHEREAS, lhe Secretary ol tl1e Kans;is Department or Commerce, pursuant lo a letter dated May 21, 2021. oulhorizcd llm City lo proceed wilh the eslablisllmenl ol a rural housing incentive dislricl pursuant to the Acl; and WHEREAS, the City has caused to be µrepared a plan (Ille 'Plan'1) ror the development or redevelopment of housing and public lacilities in lhe proposed South View Estates Rural Housing Incentive District (the "Dislnct') in accordance with lhe provisions or the Act; and WHEREAS, 111' Plan includes: 1. The legal descriplion and map required by K.S A. 12-5244(a); 2~ The existing assessed valuation of the real eslale in the proposed District listing lhe lc1nd and improvement values separa1ely; 3 A lisl or the names and addresses of the owners of record ol all real eslale parcels within the proposed Oislrid; 4~ A description or the housing and public lacilities pro1ecl or pro1ecls lhat are proposed lo be constructed or improved in the proposed District, and the location thereof; 5 A listing ol 1he names, addresses and specific in le rests 111 real estate in \11e proposed District of lhe develope1s responsible lor development of the housing and public racililies in lhe proposed D1stric1; 6 The contractuol assurances, ii ciny, lhe Governing Body hc1s received lrom such developer or developers, gumanteeing the financial leasibility ol specilic housing tax incenlive projects in lhe proposed District: 7. A comprehensive analysis of Ille reasibilily ol providing housing tax incentives in lhe proposed District as provided in the Act, which shows that the public benefils derived lrom such Districl will cxceet.J the costs and lhat the income lherelrorn, logelher wilh all public and private sources of rundin!], will be suHicienl lo pay for Ilic public improvements lhal may Uc undertaken in the District WHEREAS, Resolution No. 21-7972 adopted by the Governing 13ody on July 26, 2021, proposed lo conlinue proceedings necessary to crente a Rural Housing Incentive District, in accordance w1lh the provisions of tile Acl, and c1dop1 the Plan, by !he callmg ol a public hearing on such matters scheduled lhe public hearing tor September 13, 2021; and WHEREAS, a portion or Resolution No. 21-7972 was inadvertently omitted from lhe publicalion in the Cily s official newspaper required by the Act; and WHEREAS, lhe Governing Body proposes lo continue procee<lings necessary lo create a Rural Housing Incentive Dislrict. in accordance with the provisions of the Act, and adopl the Plan, by lhc calling or an additional public hearing on such matters to allow ror publication in accordance with the requirements of lhe Act THERFORE BE IT RESOLVED by the Governing Body of the City of Salina, Kansns as follows· Section 1. Proposed Rural Housing Incentive Dislrict. The Governing Body hereby declares c1n inlent lo establish within the City a rural housing incentive district. The Districl is proposed to be formed will1in lhe boundaries o1 tile real estate legally described in Exhibil A attached hereto, and shown on lhe map depicting lhe existin~ parcels of land attact1ed hereto as Exhibit 13 A lisl ol the names and addresses of the owners ol record ol all real estate parcels within the proposed District and the existing assessed valuation of said real eslale, listing the land and improvement values separately, is attached herelo as Exhibit C Section 2. Proposed Plan; Developmenl Agreemenl. The Governing Body hereby lurthcr declrues 1!s intent to adopt the Plan in substanlially lhe rorm presented lo the Governing Body on lh1s date A copy of the Plan shall be filed 111 lhe olfice of lhe Cily Clerk and be av<1ilable for public inspection during normc1I business hours A description ol tile housino c1nd public f;icililies projecls thal are proposed to be constructed or improved in the proposed District anLI the location thereof are described in Exl1ibit D attached hereto. A summc1ry or the conlraclual assurances by the developer and lhe comprehensive reasibilily analysis 1s contained in Exhibit E atlached hereto, In addition, lhe City has negolialed a development agreement (lhe · Oevelopmenl Agrecmenn hclvJeen lhe C1ly and South View Eslates LLC (lhe "Develoµer"). relating to the Soutll View Estates Rurnl tlous1n!] Incentive District, the development !hereof. and the construction and payment or improvements relriled lherelo, The Development Agreement is hereby approved m subslantic1lly the form presented to the Governing Body, with such changes or modil1cal!ons as nrny be approved by the City Manager and as may be approved as lo form by tile City Allorney Related llicrelo, !he City hils also ne!]olialed a 1undin!J a!]reernenl (the Fundin!J Agreement'') between the City c1nd lhe Developer, relating lo lhe Developer providing 10 lhe Cily iln initial deposil ol money lo be used as a source ol funds to 1inance costs incurred by the City 1or legal, linanctal, planning inspection, and other services or for t.Jirect out-of-pockel expenses and other reasonable costs resulting from services renclered lo t11e Developer lo revievJ evaluate, process and mspect the D1slricl and 1ls related housing and public lacihties projects The Mayor is hereby authorized to execute the DevelopmenlAgreemcnt and the Funding Agreement and such olher documents as may be necessary lo implcmenl the intent ol this Resolution the Developmenl Agreement and the Funding Agreement, as mc1y be approved by the City Mc1nager ,1nd as m,1y be approved as lo lorm by the Crty AUorney, by and on belrnll ol lhe City c1nd 1he Cily Clerk is hereby aulhorized lo attest suth s1!]nalure Section 3. Public Hearing. Nolice is hereby given lh,11 a public hcarmg wiU I.le held by lhe Governing Body ol the City to consider the establishment or the Dislricl and adoption al the Plan on October 18, 2021 at the City Council Meeting Room within the City-County Building localed at 300W.Ash Street Room 107 Salina Kansas 67401: \11e public heann!] lo commence at 4:00 pm, or as soon thereafter as lhe Governin!J Body can heilr 1he mtitlcr Al the public hearing, lhe Governing Body will receive public comment on such matters, and may, after the conclusion of such public hec1ring consider the fmdin!Js necessn1y for eslablisl1ment of the District and adoption ol the Plan all pursuanl lo the Acl Section 4. Notice ol Public Hearing. Tl1e City Clerk is l1ere1Jy authorized and d1rccled to provide for notice ol \11e public hearing by laking the !allowing ,1ctions; 1 A cer1ilied copy or this resolution shall be delivered lo A Tile Boart.J or Counly Comm1ss1oners or Salme County, Komsas; B. The Board of Education of Unihetl School District Mo 305. Saline County, Kansas (Salina) and C Tile Planrnng Comrn1ss1on ol the City of Silllna. KanSJs This Resolulion~ specificnlly including Exhibils A through E ;i11;ic;ticd hereto, shall be published al leas I once in the orflcial newspr1per ol lhe Ctty not less lt1an one wer.k or more lhan two weeks precet1111g llie date o11he public l1e,mng 3 This Resolution including Exhibits A lhrough E attached liercto shall t1re available !or inspection al 111c olllce ol lhe clerk or the City ol normal Uusiness hours. Members ol the pulllic are invitr:rl lo revie1·1 tile plan and t1tte11d tile public hearmg on tlie dale i announced 111 this Resolution ~ Section 5. Furlher Action. The Mayor C1ly M,rnaqer City Clerk and the oH1etJl5 an<l employees of tile City, including the City Attorney and Gilmore & Bell, P.C, are hereby further authorized and d1recled to lake such olher actions as may Ile appropriate or desirable lo c1ccomplish lhe purposes ol lhis Resolution Section 6. ENeclive Dale. This Resolution shall lake effect after its adoption by the Governing Body. ADOPTED by lhe Governing Body ol lhe City ol Salina, Kansas on this 13111 day ol September 2021 Melissa Rose Hodges, Mayor ATTEST: JoVonna A. Rulherrord, City Clerk EXHIBIT A LEGAL DESCRIPTION OF PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Lois 1 through 26, l3lock 2, Lots 1-10, Block 3 Lots 1 through 26, Block 4, and Lots 1 th1ougl113, Block 5, in lhe Ryan Addition to t11c Cily ol Salina. Saline, County, Kansas EXH/8/TB MAP OF PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT EXH/8/TC NAMES AND ADDRESSES OF THE OWNERS OF RECORD OF ALL REAL ESTATE PARCELS WITHIN THE PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT AND THE EXISTING ASSESSED VALUATION OF SAID REAL ESTATE PARCELS AND NAMES AND ADDRESSES OF THE DEVELOPERS Owner of Aea1 Property: Developer: Exisling Assessed Valualion of the District: EXH/8/TD Quail Meadow Estates_ Inc. 2601 S Ohio SI Salina, Kansas 67401 South View Eslalcs, LLC PO Box 452 1334A North Ohio Salina, K;insas 67401 South View Estates, LLC PO Box 452 1334A North Ol1io Salina, Kansas 67401 Land -S7DB Improvements -$0 DESCRIPTION OF THE HOUSING AND PUBLIC FACILITIES PROJECT OR PROJECTS THAT ARE PROPOSED TO BE CONSTRUCTED OR IMPROVED IN THE PROPOSED SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Housing Facililies The housing facilities consisl of constructing forty-two (42) single family homes (approximalely 1,100 square feet eacll) with 2 or 3 bedrooms depending on llle unit lype, 1-2.5 bnthrooms, and a one-car garage; and sixty-six (66) lownl1ome units (thirty-three (33) struclurns) (approximately 950-1100 square feet each} with 2 or 3 bedrooms depending on the unil type, 1-2.5 batluooms, and a one-car garage Public Facililies Public racil1ties and public improvemenls will inciude construction of Infrastructure Improvements localed wilhm the boundaries or the District, and all related inrrastructure, including but not limiled to parking, waler, sanitary sewer storm sewer, gas, and electric improvements as oullined in the Development Plan ancl Agreemenl lnrrastructure improvemenls may be constructed prior lo or concurrenHy with lhe housing facilities 111 the project. EXHIBIT E SUMMARY OF THE CONTRACTUAL ASSURANCES BY THE DEVELOPER AND OF THE COMPREHENSIVE FEASIBILITY ANALYSIS Conlractual Assurances The Governing Body ol the City ol Salina will enter into a development agreement with South View Estates, LLC, the cleveloper. Tl11s ugreemenl as supplemented and amended, includes the project construction schedule, a description ol projects lo be conslructed linancial obligations ol the developer and financial and administrative support rrom the C1ly ol Salina, Kansas Feasibilily Sludy The developer has conducted a s1udy to de1ermlne whether llle public benefits derived from 1he Oislrit:1 will exceed lhe costs cind thal the income from the District, together with other sources or revenue provided by lhe developer woulcl be suH1cient to pay tor lhe rm1J11c improvemenls lo be unt.ler1aken in the Dis1ricl The analysis estimales t11e property tax revenues that will be generated from the Developmenl, less existing properly taxes to determine lhe revenue stream nvailable to supporl lhe costs ol lhe public infrastructure lhe esl1males indicate thal the revenue realized from the pro1ect would be adequate lo pay lhe costs or the public 1nlra:::tructure CERTIFICATE OF MAILING I, Jo Vonna Rutherlord, City Clerk for the City of Salina, Kansas (the "City"), do hereby certify that on October 12, 2021, the City Clerk's office sent a certified copy of Resolution No. 21-7985 calling a public hearing on the establishment of the South View Estates Rural Housing Incentive District and the adoption of a Development Plan, via certified mail, to the Planning Commission of the City, the Saline County, Kansas Board of County Commissioners, and the U.S.D. 305 Board of Education and via certified mail, return receipt requested. Copies of the certified mail receipts are attached hereto. Dated: Gcla.Jor e . 2021 600596.20000\ORDINANCE v.1 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS HELD ON OCTOBER 18, 2021 The governing body met in regular session at the usual meeting place in the City at 4:00 P.M., the following members being present and participating, to-wit: Mayor, MELISSA ROSE HODGES; Commissioners, TRENT W. DAVIS M.D., MICHAEL L. HOPPOCK, AARON PECK and KARL F. RYAN Absent: NONE The Mayor declared that a quorum was present and called the meeting to order. * * * * * * * * * * * * * * (Other Proceedings) Among other business, in accordance with Resolution No. 21-7985 published on October 5, 2021, in the Salina Journal, a public hearing was held by the governing body relating to the proposed establishment of a Rural Housing Incentive District within the City and adopting a plan for the development of housing and public facilities in such District. At the hearing, each project proposed for the District was identified and explained, and the developer that has contracted with the City to undertake such project was identified and present in person. Following the presentation, all interested persons were afforded an opportunity to present their views on the establishment of the District and the proposed projects. Thereafter the public hearing was closed. Following the close of the public hearing, there was presented to the governing body an Ordinance entitled: AN ORDINANCE OF THE CITY OF SALINA, KANSAS, ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC FACILITIES IN SUCH DISTRICT, AND MAKING CERTAIN FINDINGS IN CONJUNCTION THEREWITH (SOUTH VIEW ESTATES). Commissioner TRENT W. DAVIS M.D. moved that the ordinance be passed. The motion was seconded by Commissioner KARL F. RYAN. The ordinance was duly read and considered, and upon being put, the motion for the passage of the ordinance was carried by the vote of the governing body as follows: Yea: MELISSA ROSE HODGES, TRENT W. DAVIS M.D., MICHAEL L. HOPPOCK, AARON PECK and KARL F. RYAN. Nay: NONE. The Mayor declared the ordinance duly passed and the ordinance was duly numbered Ordinance No. 21-11090, was signed by the Mayor and attested by the City Clerk, and was directed to be published one time in the official City newspaper. * * * * * * * * * * * * * * (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] On motion duly made, seconded and carried, the meeting thereupon adjourned. CERTIFICATE I certify that the foregoing Excerpt of Minutes is a true and correct summary of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) ·······--... .... oflGANIZEc) \ : . \ 1870 / ••o.,i::i c:>(),oc:) o•••• ea,, .,,oa 600596.20000\ORDINANCE (Signature Page to Excerpt of Minutes) 600596.20000\ORDINANCE v.1 1 (Published in the Salina Journal on October 22, 2021) ORDINANCE NO. 21-11090 AN ORDINANCE OF THE CITY OF SALINA, KANSAS, ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC FACILITIES IN SUCH DISTRICT, AND MAKING CERTAIN FINDINGS IN CONJUNCTION THEREWITH (SOUTH VIEW ESTATES). WHEREAS, K.S.A. 12-5241 et seq. (the “Act”) authorizes any city incorporated in accordance with the laws of the state of Kansas (the “State”) with a population of less than 60,000 to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body of such city shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the establishment of a rural housing incentive district and providing the legal description of property to be contained therein; and WHEREAS, after publishing such resolution, the governing body of such city shall send a copy thereof to the Secretary of the Kansas Department of Commerce (the “Secretary”) requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretary agrees with such findings, such city may proceed with the establishment of a rural housing incentive district within such city and adopt a plan for the development or redevelopment of housing and public facilities in the proposed district; and WHEREAS, the City of Salina, Kansas (the “City”) has an estimated population under 60,000 and therefore constitutes a city as the term is defined in the Act; and WHEREAS, the governing body of the City (the “Governing Body”) has performed a Housing Needs Analysis (the “Analysis”), a copy of which is on file in the office of the City Clerk; and WHEREAS, the Governing Body adopted Resolution No. 21-7955 on May 3, 2021, which made certain findings relating to the need for financial incentives relating to the construction of quality housing within the City, declared it advisable to establish a rural housing incentive district pursuant to the Act, and authorized the submission of such resolution and the Analysis to the Kansas Department of Commerce in accordance with the Act; and WHEREAS, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated May 21, 2021, authorized the City to proceed with the establishment of a rural housing incentive district pursuant to the Act; and WHEREAS, the City has caused to be prepared a plan (the “Plan”) for the development or redevelopment of housing and public facilities in the proposed South View Estates Rural Housing Incentive District (the “District”) in accordance with the provisions of the Act; and 600596.20000\ORDINANCE v.1 2 WHEREAS, the Plan includes: 1. The legal description and map required by K.S.A. 12-5244(a). 2. The existing assessed valuation of the real estate in the proposed District listing the land and improvement value separately. 3. A list of the names and addresses of the owners of record of all real estate parcels within the proposed District. 4. A description of the housing and public facilities project or projects that are proposed to be constructed or improved in the proposed District, and the location thereof. 5. A listing of the names, addresses, and specific interests in real estate in the proposed District of the developers responsible for development of the housing and public facilities in the proposed District. 6. The contractual assurances, if any, the Governing Body has received from such developer or developers, guaranteeing the financial feasibility of specific housing tax incentive projects in the proposed District. 7. A comprehensive analysis of the feasibility of providing housing tax incentives in the proposed District as provided in the Act, which shows the public benefit derived from the District will exceed the costs and that the income therefrom, together with all public and private sources of funding, will be sufficient to pay for the public improvements that may be undertaken in the District. WHEREAS, the Governing Body of the City has heretofore adopted Resolution No. 21-7985, which made a finding that the City is considering establishing the proposed District and adopting the proposed Plan pursuant to the Act, set forth the boundaries of the proposed District, provided a summary of the proposed Plan, called a public hearing concerning the establishment of the proposed District for October 18, 2021, and provided for notice of such public hearing as provided in the Act; and WHEREAS, a public hearing was held on October 18, 2021, after notice was duly published and delivered in accordance with the provisions of the Act; and WHEREAS, upon and considering the information and public comments received at the public hearing, the Governing Body of the City hereby deems it advisable to make certain findings to establish the proposed District and to adopt the proposed Plan. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section 1. Findings. The Governing Body hereby finds that notice of the public hearing conducted October 18, 2021, was duly made in accordance with the provisions of the Act. Section 2. Creation of Rural Housing Incentive District. A Rural Housing Incentive District is hereby created within the City in accordance with the provisions of the Act, which shall consist of the following described real property: Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline, County, Kansas. The District’s boundaries do not contain any property not referenced in Resolution No. 21-7985, which provided notice of the public hearing on the creation of the District and adoption of the Plan. Section 3. Approval of Development Plan. The Plan for the development or redevelopment of housing and public facilities in the District, as presented to the Governing Body this 600596.20000\ORDINANCE v.1 3 date, is hereby approved. In addition, the approval of the Development Agreement relating to the South View Estates Rural Housing Incentive District between the City and the developer thereof is hereby ratified and confirmed. Section 4. Adverse Effect on Other Governmental Units. If, within 30 days following the conclusion of the public hearing on October 18, 2021, any of the following occurs, the Governing Body shall take action to repeal this Ordinance: (a) The Board of Education of Unified School District No. 305, Saline County, Kansas (Salina) determines by resolution that the District will have an adverse effect on such school district; or (b) The Board of County Commissioners of Saline County, Kansas, determines by resolution that the District will have an adverse effect on such county. As of this date, the City has not received a copy of any such resolution and is not aware of the adoption of any such resolution by the governing body of either Unified School District No. 305, Saline County, Kansas (Salina) or of Saline County, Kansas. Section 5. Further Action. The Mayor, City Clerk, city officials and employees, including the City Attorney, and Gilmore & Bell, P.C., are hereby further authorized and directed to take such other actions as may be appropriate or desirable to accomplish the purposes of this Ordinance, including entering into an agreement with Saline County regarding the reimbursement pursuant to the Act of eligible costs funded by Saline County. Section 6. Effective Date. This Ordinance shall be effective upon its passage by the Governing Body and publication one time in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] PASSED by the Governing Body of the City of Salina, Kansas, and SIGNED by the Mayor on October 18, ·· ••••e•••"••._ ,,,. .. " i Op..GANIZ€()\. . . . : l 1870 f . . ••• c:=>0--:-:, .i' o;:"oo o•D (SEAL) Mayor 1../' [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20000\ORDINANCE (Signature Page to Ordinance) CERTIFICATE I hereby certify that the foregoing is a true and correct copy of the original ordinance; that the Ordinance was passed on October I 8, 2021; that the record of the final vote on its passage is found on page __ of journal __ ; and that it was published in the Salina Journal on October 22, 2021. ---:::----. DATED: October 22, 2021. 600596.20000\ORDIN ANCE (Certificate to Ordinance) LOCALiQ The Garden City Telegram The Hays Dally News I salina Journal The Hutchinson News I The ottawa Herald PROOF OF PUBLICATION City Clerk'S Office City of Salina City Clerk Po Box 736 Salina KS 67402-0736 STATE OF WISCONSIN, COUNTY OF BROWN The Salina Journal, a daily newspaper published at Salina, Saline County, Kansas, and of general circulation in said county, and continuously and uninterruptedly published for five consecutive years prior to first publication of attached notice. That the attachment hereto contains a true and correct copy of what was actually published in said newspaper in the issue dated: 10/22/2021 Sworn to and subscribed before on 10/22/2021 of WI, County of Brown ,/~7/~ My commision expires Publication Cost: $637 .17 Order No: Customer No: 6435656 594307 PO#: THIS IS NOT AN INVOICE! Please do not use this form for payment remittance. SARAH BERTELSEN Notary Public State of Wisconsin #of Copies: 1 PO Box 631367 Cincinnati, OH 45263-1367 Page 1 of 4 Page I of3 (Published in the Solina Journal October 22, 2021) ORDINANCE NO. 21-11090 AN ORDINANCE OF THE CITY OF SALINA, KANSAS, ESTABLISHING A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND ADOPTING A PLAN FOR THE DEVELOP· MENT OF HOUSING AND PUBLIC FACILITIES IN SUCH DISTRICT, AND MAKING CERTAIN FIND- INGS IN CONJUNCTION THEREWITH (SOUTH VIEW ESTATES). WHEREAS, K.S.A. 12-5241 et seq. (the "Act") authorizes any city incorparated in accordance with the laws of the state of Kansas (the "State") with a papulation of less than 60,000 to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body of such city shall conduct a housill9 needs analysis to determine what, if any, housing needs exist within its community; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the estab- lishment of a rural housing incentive district and provid- ing the legal description of property to be contained therein; and WHEREAS, after publishing such resolution, the govern- ing body of such city shall send a COPY thereof to the Secretary of the Kansas Deportment of Commerce (the "Secretary") requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretory agrees with such findings, such city may proceed with the establishment of a rural housing incentive district within such city and adopt a pion for the development or redevelopment of housing and public facilities in the prapased district; and WHEREAS, the Cltv of Salina, Kansas (the "City") has an estimated POPUiation under 60,000 and therefore constitutes a city as the term is defined in the Act; and WHEREAS, the governing body of the City (the "Governing Body") hos performed a Housing Needs Analysis (the "Analysis"), a COPY of which is on file in the office of the City Clerk; and WHEREAS, the Governing Body adopted Resolution No. 21-7955 on May 3, 2021, which made certain findings relat- ing to the need for financial Incentives relating to the construction of quality hous- ing within the City, declared It advisable to establish a rural housing incentive district pursuant to the Act, and authorized the submis- sion of such resolution and the Analysis to the Kansas Department of Commerce in accordance with the Act; and WHEREAS, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated May 21, 2021, authorized the Citv to proceed with the establish- ment of a rural housing incentive district pursuant to the Act; and WHEREAS, the City has caused to be prepared a pion (the "Plan") for the develop. ment or redevelopment of Page 2 of3 housing and public facilities in the proposed South View Estates Rural Housing Incentive District (the "District"} in accordance with the provisions of the Act; and WHEREAS, the Plan includes: l. The legal description and map required by K.S.A. 12- 5244(0). 2. The existing assessed valuation of the real estate in the proposed District listing the land and improvement value separately. 3. A list of the names and addresses of the owners of record of all real estate parcels within the proposed District. 4. A description of the hous- ing and public facilities project or projects that are proposed to be constructed or improved in the proposed District, and the location thereof. 5. A listing of the names, addresses, and specific inter- ests in real estate in the proposed District of the developers responsible for development of the housing and public facilities in the proposed District. 6. The contractual assur- ances, if any, the Governing Body has received from such developer or developers, guaranteeing the financial feasibility of specific housing tax incentive projects in the proposed District. 7. A comprehensive analysis of the feasibility of providing housing tax incentives in the proposed District as provided in the Act, which shows the public benefit derived from the District will exceed the costs and that the income therefrom, together with all public and private sources of funding, will be sufficient to pay for the public improvements that may be undertaken in the District. WHEREAS, the Governing Body of the City has hereto- fore adopted Resolution No. 21-7985, which made a find- ing that the City is consider- ing establishing the proposed District and adopting the proposed Plan pursuant to the Act, set forth the bound- aries of the proposed District, provided a summary of the proposed Plan, called a public hearing concerning the establishment of the proposed District for October 18, 2021, and provided for notice of such public hearing as provided in the Act; and WHEREAS, a public hearing was held on October 18, 2021, after notice was duly published and delivered in accordance with the provi- sions of the Act; and WHEREAS, upon and consid- ering the information and public comments received at the public hearing, the Governing Body of the City hereby deems it advisable to make certain findings to establish the proposed District and to adopt the proposed Plan. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: Section l. Findings. The Governing Body hereby finds that notice of the public hearing conducted October 18, 2021, was duly made in accordance with the provi- sions of the Act. Page3of3 Section 2. Creation of Rural Housing Incentive District. A Rural Housing Incentive District is hereby created within the City in accordance with the Provisions of the Act, which shall consist of the following described real Property: Lots 1 through 26, Block 2, Lots HO, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, In the Ryan Addition to the City of Solina, Saline, County, Kansas. The District's boundaries do not contain any property not referenced in Resolution No. 21-7985, which provided notice of the public hearing on the creation of the District and adoption of the Plan. Section 3. Approval of Devel- opment Plan. The Plan for the development or redevel- opment of housing and public facilities in the District, as presented to the Governing Body this date, is hereby approved. In addition, the approval of the Development Agreement relating to the South View Estates Rural Housing Incentive District between the City and the developer thereof Is hereby ratified and confirmed. Section 4. Adverse Effect on Other Governmental Units. If, within 30 days following the conclusion of the public hearing on October 18, 2021, any of the following occurs, the Governing Body shall take action to repeal this Ordinance: (al The Board of Education of Unified School District No. 305, Saline County, Kansas (Salina) determines by res~ lution that the District will have an adverse effect on such school district; or ( b) The Board of County Commissioners of Saline County, Kansas, determines by resolution thot the District wilt have an adverse effect on such countv. As of this date, the City has not received a copy of any such resolution and Is not aware of the adoption of any such resolution by the governing body of either Unified School District No. 305, Saline County, Kansas (Salina) or of Saline County, Kansas. Section 5. Further Action. The Mayor, City Clerk, city officials and employees, including the City Attorney, and Gilmore & Bell, P.C., are hereby further auth~ rized and directed to take such other actions as may be appropriate or desirable to accomplish the purp0ses of this Ordinance, including entering into an agreement with Saline County regarding the reimbursement pursuant to the Act of eligible costs funded by Saline County. Section 6. Effective Dale. This Ordinance shall be effective UPOn its passage by the Governing Body and publication one time in the official City newspaper. PASSED by the Governing Body of the City of Salina, Kansas, and SIGNED by the Mayor on October 1 B, 2021. Melissa Rose Hodges, Mayor ATTEST: JoVonna A. Rutherford, City Clerk 6435656 10/22 600596.20000\DEVELOPMENT AGREEMENT v.6 1 DEVELOPMENT AGREEMENT SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT THIS DEVELOPMENT AGREEMENT (“Agreement”) is entered into effective as of August 30, 2021 (the “Effective Date”), by and between the CITY OF SALINA, KANSAS, a municipal corporation of the State of Kansas (“City”), and SOUTH VIEW ESTATES, LLC, a Kansas limited liability company engaged in the business of development with its principal office located at 1334A North Ohio, Salina, Kansas 67401 (“Developer”). The City and the Developer are each a “Party” and collectively the “Parties.” RECITALS A. Developer has acquired real property located within the boundaries of City and described on Exhibit A attached hereto and incorporated herein by reference (the “Property”). B. Developer desires to develop the Property by constructing the “South View Estates” residential development and all related internal infrastructure improvements (“South View Estates Development”), all as more fully described herein. C. City has determined that the construction of South View Estates Development will foster the economic development of City and surrounding area of Saline County, Kansas. D. The Parties are authorized to enter into this Agreement and to complete the responsibilities set forth herein with respect to South View Estates Development. AGREEMENT NOW THEREFORE, in consideration of the premises and promises contained herein and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION 1.1 Definitions. As used in this Agreement, the following words and terms have the meaning set forth below: “Agreement” means this Development Agreement, as the same may be from time to time modified, amended or supplemented in writing by the Parties hereto. “City” means the City of Salina, Kansas. “City Expenses” means all legal and professional costs, fees and expenses incurred by City with regard to the preparation of this Agreement, the Funding Agreement, and any and all other Ordinances, Resolutions or other documents necessary for implementation of the District as well as for representation and appearances of legal counsel at any hearings or proceedings required to implement the District. “Concept Site Plan” means the site development plan prepared by a licensed professional engineer, or firm thereof, acceptable to City, depicting the conceptual program for construction of the Development Project and the Internal Infrastructure Improvements. 600596.20000\DEVELOPMENT AGREEMENT v.6 2 “Construction Plans” means plans, drawings, specifications and related documents, and construction schedules for the construction of the Work, together with all supplements, amendments or corrections. “County” means Saline County, Kansas. “Developer” means South View Estates, LLC, a Kansas limited liability company, or its permitted successors or assigns. “Development Costs” means the total amount spent or expected to be spent by Developer to construct the Work. “Development Plan” means the Development Plan prepared by the City in accordance with the provisions of the Rural Housing Incentive District Act and approved by the Developer, a copy of which is attached hereto at Exhibit H. “Development Project” means single family residential units and auxiliary structures to be constructed on the Property in accordance with the Concept Site Plan. “District” means the South View Estates Rural Housing Incentive District to be established pursuant the Rural Housing Incentive District Act and the RHID Ordinance. “Eligible Costs” means the City Expenses, Property acquisition costs, and that portion of the costs of the Internal Infrastructure Improvements which are reimbursable to the Developer pursuant to the provisions of K.S.A. 12-5249, including associated legal, engineering and project finance costs, all as more specifically described on Exhibit C attached hereto and incorporated herein by this reference, but excludes costs paid with or reimbursed from direct funds from third parties other than financing institutions (i.e. American Rescue Plan funding from the City or Saline County). “Funding Agreement” means the funding agreement between the City and the Developer, dated July 27, 2021, relating to the Developer providing a source of funds to the City to finance costs incurred by the City for legal, financial, planning, inspection, and other services, or for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the Developer to review, evaluate, process, and inspect the Project and actions related thereto. “Governing Body” means the City Commission of the City of Salina, Kansas. “Internal Infrastructure Improvements” means the electric, gas, water, sewer, storm sewer, and street improvements necessary for South View Estates Development and located within the boundaries of the Property, including engineering costs, any costs of right-of-way and appurtenances related thereto, as set forth on the approved plat for South View Estates Development, all as more specifically described on Exhibit C attached hereto and incorporated herein by this reference. “Material Change” means any change in the Concept Site Plan that significantly affects the nature of the Internal Infrastructure Improvements, modifies the number of single family residences, or increases/decreases the cost of the Development Project by 10% or more for each change or 20% in the aggregate. “Mayor” means the Mayor of the City of Salina, Kansas or their duly authorized agent. 600596.20000\DEVELOPMENT AGREEMENT v.6 3 “Plans and Specifications” means the plans and specifications for the Internal Infrastructure Improvements prepared by a licensed professional engineer, or firm thereof, acceptable to City. “Project Milestones” means the performance of the Development Project described on Exhibit F hereto in accordance with the provisions of Section 4.2. “Property” means the real property (including but not limited to fee interests, leasehold interests, tenant-in-common interests, and such other like or similar interests) on which the Development Project will be located, more specifically described in Exhibit A attached hereto and depicted on Exhibit B attached hereto. “Related Party” means any party related to the Developer by one of the relationships described in Section 267(b) of the United States Internal Revenue Code of 1986, as amended and any successor entity in which the principals of the Developer (either individually or collectively) or Developer own or control no less than fifty percent (50%) of the voting interest in such successor entity. “RHID Funds” means those amounts paid from the Saline County Treasurer to the Treasurer of the City pursuant to K.S.A. 12-5250(b)(2)(A) as a result of South View Estates Development. “RHID Ordinance” means the ordinance passed by the Governing Body approving the Development Plan and establishing the District. “Rural Housing Incentive District Act” means K.S.A. 12-5241 et seq., as amended. “Substantial Completion” means the stage in the progress of the Work when the Work or designated portions thereof is sufficiently complete in accordance with the Construction Plans, excepting all punch list items so that Developer can occupy or utilize the Work for its intended purpose. “Work” means all work necessary to prepare the Property and to construct the Development Project and the Internal Infrastructure Improvements, including; (1) demolition and removal of any existing improvements located on the Property, grading and earthwork; (2) construction, reconstruction and/or relocation of utilities; (3) construction of the single family residences and related structures; (4) construction and installation of site landscaping on the Property, as described in the Concept Site Plan; and (5) all other Work described in the Concept Site Plan, or reasonably necessary to effectuate the intent of this Agreement. 1.2 Rules of Construction. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the following rules of construction apply in construing the provisions of this Agreement: (a) The terms defined in this Article include the plural as well as the singular. (b) All accounting terms not otherwise defined herein have the meanings assigned to them, and all computations herein provided for will be made, in accordance with generally accepted accounting principles. (c) All references herein to “generally accepted accounting principles” refer to such principles in effect on the date of the determination, certification, computation or other action to be taken hereunder using or involving such terms. 600596.20000\DEVELOPMENT AGREEMENT v.6 4 (d) All references in this instrument to designated “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. (e) The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision. (f) The Article and Section headings herein are for convenience only and will not affect the construction hereof. ARTICLE II REPRESENTATIONS AND WARRANTIES 2.1 Representations of the City. The City makes the following representations and warranties, which are true and correct on the date hereof, to the best of the City’s knowledge: (a) Due Authority. The City has full constitutional and lawful right, power and authority, under current applicable law, to execute and deliver and perform the terms and obligations of this Agreement, and this Agreement has been duly and validly authorized and approved by all necessary City proceedings, findings and actions. Accordingly, this Agreement constitutes the legal valid and binding obligation of the City, enforceable in accordance with its terms. (b) No Defaults or Violation of Law. The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of the terms and conditions hereof do not and will not conflict with or result in a breach of any of the terms or conditions of any agreement or instrument to which it is now a party, and do not and will not constitute a default under any of the foregoing. (c) No Litigation. There is no litigation, proceeding or investigation pending or, to the knowledge of the City, threatened against the City with respect to this Agreement or affecting the Property. In addition, no litigation, proceeding or investigation is pending or, to the knowledge of the City, threatened against the City seeking to restrain, enjoin or in any way limit the approval or issuance and delivery of this Agreement or which would in any manner challenge or adversely affect the existence or powers of the City to enter into and carry out the transactions described in or contemplated by the execution, delivery, validity or performance by the City of the terms and provisions of this Agreement. (d) Governmental or Corporate Consents. No consent or approval is required to be obtained from, and no action need be taken by, or document filed with, any governmental body or corporate entity in connection with the execution and delivery by the City of this Agreement other than as set forth herein. (e) No Default. No default or Event of Default has occurred and is continuing, and no event has occurred and is continuing which with the lapse of time or the giving of notice, or both, would constitute a default or an event of default in any material respect on the part of the City under this Agreement. 2.2 Representations of the Developers. The Developer makes the following representations and warranties, which are true and correct on the date hereof, to the best of the Developer’s knowledge: (a) Due Authority. The Developer has all necessary power and authority to execute and deliver and perform the terms and obligations of this Agreement and to execute and deliver the documents required of the Developer herein, and such execution and delivery has been duly and validly authorized and 600596.20000\DEVELOPMENT AGREEMENT v.6 5 approved by all necessary proceedings. Accordingly, this Agreement constitutes the legal valid and binding obligation of the Developer, enforceable in accordance with its terms. (b) No Defaults or Violation of Law. The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the fulfillment of the terms and conditions hereof do not and will not conflict with or result in a breach of any of the terms or conditions of any corporate or organizational restriction or of any agreement or instrument to which they are now a party, and do not and will not constitute a default under any of the foregoing. (c) No Litigation. No litigation, proceeding or investigation is pending or, to the knowledge of the Developer, threatened against South View Estates Development, the Developer, or any officer, director, member or shareholder of the Developer. In addition, no litigation, proceeding or investigation is pending or, to the knowledge of the Developer, threatened against the Developer seeking to restrain, enjoin or in any way limit the approval or issuance and delivery of this Agreement or which would in any manner challenge or adversely affect the existence or powers of the Developer to enter into and carry out the transactions described in or contemplated by the execution, delivery, validity or performance by the Developer, of the terms and provisions of this Agreement. (d) No Material Change. (1) The Developer has not incurred any material liabilities or entered into any material transactions other than in the ordinary course of business except for the transactions contemplated by this Agreement and (2) there has been no material adverse change in the business, financial position, prospects or results of operations of the Developer, which could affect the Developer’s ability to perform its obligations pursuant to this Agreement from that shown in the financial information provided by the Developer to the City prior to the execution of this Agreement. (e) Governmental or Corporate Consents. No consent or approval is required to be obtained from, and no action need be taken by, or document filed with, any governmental body or corporate entity in connection with the execution, delivery and performance by the Developer of this Agreement other than as set forth herein. (f) No Default. No default or Event of Default has occurred and is continuing, and no event has occurred and is continuing which with the lapse of time or the giving of notice, or both, would constitute a default or an event of default in any material respect on the part of the Developer under this Agreement, or any other material agreement or material instrument to which the Developer is a party or by which Developer is or may be bound. (g) Approvals. The Developer has received and is in good standing with respect to all certificates, licenses, inspections, franchises, consents, immunities, permits, authorizations and approvals, governmental or otherwise, necessary to conduct and to continue to conduct its business as heretofore conducted by it and to own or lease and operate its properties as now owned or leased by it. The Developer has obtained, or reasonably believes it will obtain in due course, all certificates, licenses, inspections, franchises, consents, immunities, permits, authorizations and approvals, governmental or otherwise, necessary to acquire, construct, equip, operate and maintain the Development Project; or reasonably believes that all such certificates, licenses, consents, permits, authorizations or approvals which have not yet been obtained will be obtained in due course. (h) Construction Permits. All governmental permits and licenses required by applicable law to construct, occupy and operate the Development Project have been issued and are in full force and effect or, if the present stage of development does not allow such issuance, the Developer reasonably believes, after due inquiry of the appropriate governmental officials, that such permits and licenses will be issued in a timely manner in order to permit the Development Project to be constructed. 600596.20000\DEVELOPMENT AGREEMENT v.6 6 (i) Compliance with Laws. The Developer is in material compliance with all valid laws, ordinances, orders, decrees, decisions, rules, regulations and requirements of every duly constituted governmental authority, commission and court applicable to any of its affairs, business, operations as contemplated by this Agreement. (j) Other Disclosures. The information furnished to the City by the Developer in connection with the matters covered in this Agreement is true and correct and does not contain any untrue statement of any material fact and does not omit to state any material fact required to be stated therein or necessary to make any statement made therein, in the light of the circumstances under which it was made, not misleading. (k) Contractors. All contracts with contractors shall warrant that the work performed or material supplied by that contractor to the Development Project will be free from any defects in materials and workmanship for a period of at least two (2) years from the date of completion, and that such warranty does not restrict or otherwise limit that contractor's obligation to construct the Development Project in a workmanlike manner and in accordance with the Construction Plans and this Agreement as it pertains to that contractor's work. 2.3 Maintenance of Existence. During the term of this Agreement the Developer (including any permitted successors or assigns) will maintain its legal existence, will continue to be in good standing under the laws of the State of Kansas and will not dissolve, consolidate with or merge into another entity or permit one or more other entities to consolidate with or merge into it. 2.4 Conditions to the Effectiveness of this Agreement. Contemporaneously with the execution of this Agreement, and as a precondition to the effectiveness of this Agreement, the Developer will submit the following documents to the City: (a) a copy of the Developer’s Articles of Organization and a good standing certificate dated within one month of the date of this Agreement, each certified by the Secretary of State of the State of Kansas; (b) a certified copy of the Operating Agreement of the Developer; (c) a list of each member of the Developer and the associated percentage ownership, and if such member is not an individual, the individual owners and percentage ownership of such member; (d) the Concept Site Plan; (e) an executed copy of the Funding Agreement; and (f) a legal opinion from counsel to the Developer in form and substance acceptable to the City covering: (i) the due organization of the Developer and the power and authority of the Developer to execute this Agreement, and (ii) the enforceability of this Agreement against the Developer. 2.5 Final Approval Required. Notwithstanding anything herein to the contrary, this Agreement will be void: (a) if the City does not finalize all required steps to create the District pursuant to the Rural Housing Incentive District Act by adoption of the RHID Ordinance within 60 days after the Effective Date; or (b) if the District is nullified in the manner set forth in K.S.A. 12-5246. Until the passage of the RHID Ordinance, the Governing Body retains sole discretion on the Development Project. In addition, the zoning commission and the City retain full discretion within existing ordinances and policy regarding its zoning, planning, permitting and inspection requirements. 600596.20000\DEVELOPMENT AGREEMENT v.6 7 ARTICLE III RURAL HOUSING INCENTIVE DISTRICT 3.1 Preliminary Resolution. Governing Body has heretofore adopted Resolution No. 21-7955 on May 3, 2021 (the “Preliminary Resolution”), which made certain findings pursuant to the Rural Housing Incentive District Act, relative to the need for housing in the City and declaring an intent to establish rural housing incentive districts within the City. 3.2 Department of Commerce Finding. Pursuant to the Preliminary Resolution, the City caused to be prepared a Housing Needs Analysis and forwarded the same with the Preliminary Resolution, to the Kansas Secretary of Commerce. On May 21, 2021, the Kansas Secretary of Commerce issued a letter to the City making certain findings required by the Rural Housing Incentive District Act, and approved the City’s ability to establish rural housing incentive districts. 3.3 Further Proceedings. City has caused to be prepared the Development Plan in accordance with the provisions of the Rural Housing Incentive District Act, and plans to consider a resolution calling a public hearing relative to the Development Plan, conduct a public hearing, and consider the RHID Ordinance approving the Development Plan and establishing the District. The District will be deemed to be established at the time the RHID Ordinance is passed by the Governing Body and published as required by law. The Parties acknowledge that the creation of the District is subject to nullification in the manner set forth in K.S.A. 12-5246. ARTICLE IV CONSTRUCTION 4.1 Concept Site Plan. (a) Developer, at its cost, has had prepared the Concept Site Plan, which is hereby approved by the Parties. Notwithstanding anything to the contrary herein, the City’s acceptance of the Concept Site Plan is not acceptance of the final site plan as required by the City ordinances and the City retains full and complete discretion to review, modify and approve or not approve such final site plan through its normal planning, zoning and permitting process. (b) Developer will promptly notify City in writing of any proposed Material Changes to the Concept Site Plan at least 60 days prior to the implementation of any such Material Change, including a description of the Material Change and reasons therefore, including any supporting documentation requested by the City. The City will respond in writing within 45 days after receipt of the notice and all requested supporting documentation. Developer may implement a proposed Material Change to the Concept Site Plan only with the advance written consent of the City or if such notice is not responded to pursuant to the timelines above. (c) Developer may make changes which are not Material Changes to the Concept Site Plan or any aspect thereof as site conditions or other issues of feasibility may dictate or as may be necessary or desirable in the sole determination of Developer to enhance the economic viability of the Development Project, with approval from the City Manager or the City Manager’s designee provided that such approval will not act as a waiver, alteration, or replacement of any required zoning, planning, permitting and inspection requirements. 4.2 Project Milestones and Schedule. The Developer agrees to meet the Project Milestones not later than the times set forth in Exhibit F or the Developer will be in material breach of this Agreement. 600596.20000\DEVELOPMENT AGREEMENT v.6 8 4.3 Development Project Construction. (a) Developer will construct the Development Project in a good and workmanlike manner in accordance with the terms of the Development Plan and this Agreement and as set forth in the Construction Plans. Notwithstanding anything to the contrary herein, all work on the Development Project will comply with existing City codes, rules and regulations. If Developer or a Related Party serves as general contractor or a sub-contractor for the Development Project, Developer or such Related Party will not charge more for such services than a third-party contractor would customarily charge for such services, as determined by such documentation that is requested by and acceptable to the City in the City’s discretion. All work on the Development Project will be inspected by City staff during construction as if this Agreement did not exist. (b) Developer may enter into one or more construction contracts to compete the Work for the Development Project. Prior to the commencement of construction of the Development Project, Developer will obtain, or will require that any such contractor obtain, the insurance required in Section 6.8 hereof and will deliver evidence of such insurance to City. (c) Promptly after Substantial Completion of the Work with respect to the Development Project in accordance with the provisions of this Agreement, Developer will furnish to City a Certificate of Substantial Completion in the form attached hereto as Exhibit D. The City will, within thirty (30) days following delivery of each Certificate of Substantial Completion, carry out such inspections as it deems necessary to (i) verify reasonable satisfaction with, and the accuracy of, the certifications contained in each Certificate of Substantial Completion, and (ii) verify, in the City’s reasonable discretion, that the Development Project have been constructed to meet or exceed City quality standards and comply with all applicable City code and permitting requirements, such verification not to be unreasonably withheld. Each Certificate of Substantial Completion will be accepted or rejected by the City in its discretion, but acceptance will not be unreasonably withheld. If a Certificate of Substantial Completion is rejected by the City, the City will furnish Developer with specific written objections to the status of the Work, describing such objections and the measures required to correct such objections in reasonable detail. 4.4 Internal Infrastructure Improvements Construction. (a) Developer will construct, at its cost, the Internal Infrastructure Improvements in a good and workmanlike manner in accordance with the Plans and Specifications approved by City and in compliance with the Project Milestones. Developer will complete the Internal Infrastructure Improvements prior to commencement of any vertical construction unless Developer complies with a safety plan approved by the Fire Marshall, which will be attached hereto as Exhibit J. If Developer or a Related Party serves as general contractor or sub-contractor for the Internal Infrastructure Improvements, Developer or such Related Party will not charge more for such services than a third-party contractor would customarily charge for such services, as determined by such documentation that is requested by and acceptable to the City in the City’s discretion. (b) Developer is responsible for securing any rights-of-way and/or easement rights from private parties necessary to improve or build the Internal Infrastructure Improvements and City will reasonably cooperate with Developer with respect to any such acquisition. All costs associated with the acquisition of rights-of-way and/or easements from third-parties unrelated to Developer will be considered an Eligible Cost. City will reasonably cooperate with Developer in obtaining all necessary permits for construction of the Internal Infrastructure Improvements in accordance with the City’s standard permitting process. 600596.20000\DEVELOPMENT AGREEMENT v.6 9 (c) Developer may enter into one or more construction contracts to complete the Work for the Internal Infrastructure Improvements. Prior to the commencement of construction of the Internal Infrastructure Improvements, Developer will obtain or will require that any such contractor obtain, the insurance required by Section 6.8 hereof and will deliver evidence of such insurance to City. (d) Promptly after Substantial Completion of the Work with respect to the Internal Infrastructure Improvements, or a phase thereof, in accordance with the provisions of this Agreement, Developer will furnish to City a Certificate of Substantial Completion in the form attached hereto as Exhibit D. The City will, within thirty (30) days following delivery of each Certificate of Substantial Completion, carry out such inspections as it deems necessary to (i) verify reasonable satisfaction with, and the accuracy of, the certifications contained in each Certificate of Substantial Completion, and (ii) verify, in the City’s reasonable discretion, that the Internal Infrastructure Improvements have been constructed to meet or exceed City quality standards and comply with all applicable City code and permitting requirements. Each Certificate of Substantial Completion will be deemed accepted by City unless, prior to the end of such 30-day period after delivery to City of each Certificate of Substantial Completion, City furnishes Developer with specific written objections to the status of the Work, describing such objections and the written objections to the status of the Work, describing such objections and the measures required to correct such objections in reasonable detail. (e) After Substantial Completion of the Internal Infrastructure Improvements and verification by the City, in the City’s reasonable discretion, that the Internal Infrastructure Improvements have been constructed to meet or exceed City quality standards and comply with all applicable City code and permitting requirements, Developer will dedicate to the City, and the City will accept, title to the Internal Infrastructure Improvements. Following such dedication, City will be responsible, at its sole cost and expense, for all operating and capital costs for the dedicated Internal Infrastructure Improvements from that date forward, and will maintain the dedicated Internal Infrastructure Improvements in a manner consistent with similar public improvements in the City. Notwithstanding the foregoing, Developer may, at its sole discretion and expense, enhance the maintenance of operation of the Internal Infrastructure Improvements for the betterment of the Development Project with prior consent of the City. 4.5 Construction Permits and Approvals. Before commencement of construction or development of any buildings, structures or other work or improvements, the Developer shall secure or cause to be secured any and all permits and approvals which may be required by the City and any other governmental agency having jurisdiction as to such construction, development or work. Such permits and approvals may be obtained by Developer in phases corresponding to particular stages of construction. 4.6 No Waiver. Nothing in this Agreement shall constitute a waiver of the City’s right to consider and approve or deny governmental approvals pursuant to the City’s regulatory authority as provided by city building code and applicable State law. The Developer acknowledges that satisfaction of certain conditions contained in this Agreement require the reasonable exercise of the City’s discretionary zoning authority by the City’s planning commission and governing body in accordance with the City’s zoning ordinance, the City building code and applicable State law. 4.7 Land Use Restriction. The Developer agrees that the Property will be utilized for residential purposes only and all other types of land uses are prohibited in the Development Project or on the Property unless approved in writing by the City prior to the execution of a letter of intent, lease or prior to the sale of land. 4.8 Sale of Constructed Homes. The Developer acknowledges that the City is willing to permit the Developer Project to participate in the rural housing incentive program in order to increase the supply of certain types of available homes within the City. Therefore, all residential units constructed as 600596.20000\DEVELOPMENT AGREEMENT v.6 10 part of the Developer Project will meet the requirements set forth on Exhibit G (the “Required Housing Standards”), or the Developer will be in material default of this Agreement. ARTICLE V FINANCING OBLIGATIONS 5.1 Financing of Internal Infrastructure Improvements. (a) The City, in its sole discretion and at any time, may elect to fund a portion of the Eligible Costs of the Internal Infrastructure Improvements through funds other than RHID Funds. The City will be entitled to reimbursement of all Eligible Costs paid by the City on a pro-rata basis from each distribution of RHID Funds. (b) The County, in its sole discretion and at any time, may elect to fund a portion of the Eligible Costs of the Internal Infrastructure Improvements. The County will be entitled to reimbursement of all Eligible Costs paid by the County on a pro-rata basis from each distribution of RHID Funds in accordance with the terms of the agreement between the City and the County attached as Exhibit K. (c) Unless funded by the City or the County, all costs of the Internal Infrastructure Improvements will be paid in cash, or financed, by Developer. The City will use RHID Funds to reimburse the Developer on a pro-rata basis from each distribution of RHID Funds for all or a portion of the Eligible Costs paid by the Developer, subject to the terms of this Agreement. Reimbursements for expenses paid or financed by the Developer will be made solely to the Developer. So long as the total amount of Eligible Costs requested for reimbursement by the Developer does not exceed the actual amount expended by the Developer for such use or 110% of the total set forth on Exhibit C, the Developer may seek reimbursement of any particular line item on Exhibit C not exceeding 120% of the amount stated therein. (d) For clarity, and by way of example only, pro-rata distributions of RHID Funds between the City, the County, and the Developer will be calculated using the following methodology: Eligible Expenses Paid Allocated pro-rata portion of RHID Funds City $ 500,000 6.25% County 1,000,000 12.50% Developer 6,500,000 81.25% Total $8,000,000 100.00% The allocation of RHID Funds will be recalculated when necessitated by a change in submitted Eligible Expenses by a party or a reduction in allowable Developer Eligible Expenses pursuant to this Agreement. Recalculations of the RHID Funds allocation will apply on a prospective basis only. 5.2 Request for Reimbursement. The Developer will certify all costs and expenditures to be made in connection with the Eligible Costs in accordance with the following: (a) The Developer will submit to the City a Request for Reimbursement in the form attached hereto as Exhibit E setting forth the amount for which reimbursement is sought and an itemized listing of the related Internal Infrastructure Improvements. (b) Each Request for Reimbursement will be accompanied by such bills, contracts, invoices, or other evidence reasonably satisfactory to the City to document that payment has been made by the Developer for such Eligible Costs. 600596.20000\DEVELOPMENT AGREEMENT v.6 11 (c) The Developer, at its cost, will engage a licensed appraiser to perform an appraisal of the Property and submit the final report to the City reflecting the market value of the Property. Eligible Costs for property acquisition will be limited to the lesser of (i) the stated market value in the final appraisal report and (ii) the actual purchase price for the Property reflected by documentation reasonably satisfactory to the City. 5.3 Reimbursement. The City will have 30 calendar days after receipt of any Request for Reimbursement to review and respond by written notice to the Developer. If the submitted documentation demonstrates that: (1) the Request for Reimbursement shows payment of the Eligible Costs; (2) the expense was incurred; (3) the Developer is not in default under this Agreement; (4) the costs were not financed with direct funds from third parties other than financing institutions (i.e. American Rescue Plan funding); and (5) the City has not discovered any fraud on the part of the Developer, then the City will approve the Request for Reimbursement and promptly reimburse the Developer for the Eligible Costs pursuant to the terms of this Agreement if sufficient pro-rata RHID Funds are available, and quarterly as funds become available in the event that pro-rata RHID Funds in the City’s possession are at that time insufficient. In the event the City does not respond within such 30-day period, the Request for Reimbursement will be deemed approved. If the City reasonably disapproves of the Request for Reimbursement, the Parties will meet to resolve any such differences. If a resolution is not found regarding specific cost(s), the denied cost will not be Eligible Costs unless and until a final order from a court of competent jurisdiction is received by the City requiring the cost to be accepted as an Eligible Cost or other written agreement of the Parties. Reimbursements will cease upon the earlier of (a) such time as the Eligible Costs have been fully reimbursed to Developer, or (b) 25 years after the date of the establishment of the District. The City will have no liability and/or responsibility to Developer for any payment greater than the amounts received from the Saline County Treasurer pursuant to the provisions of K.S.A. 12-5250(b)(2)(A) as a result of the creation of the District. 5.4 Payment of City Expenses. If the Funding Agreement has not already been entered into between the Developer and the City, then upon execution of this Agreement the Developer and City will enter into a Funding Agreement substantially in the form attached as Exhibit I, requiring the Developer to reimburse the City for City Expenses. All City Expenses paid by the Developer will be Eligible Costs. ARTICLE VI GENERAL PROVISIONS 6.1 City’s Right to Terminate. In addition to all other rights of termination as provided herein, City may terminate this Agreement at any time if: (a) Developer defaults in or breaches any material provision of this Agreement and fails to cure such default or breach within thirty (30) days after receipt of written notice from City of such default or breach; or (b) Developer fails to close on the purchase of the Property within 60 days after the creation of the District. 6.2 Developer’s Right to Terminate. In addition to all other rights of termination as provided herein, Developer may terminate this Agreement at any time if City defaults in or breaches any material provision of this Agreement (including any City default under Article V hereof) and fails to cure such default or breach within 30 days after receipt of written notice from Developer of such default or breach. 600596.20000\DEVELOPMENT AGREEMENT v.6 12 6.3 Successors and Assigns. (a) This agreement will be binding on and inure to the benefit of the Parties and their respective heirs, administrators, executors, personal representatives, agents, successors and assigns. (b) Until Substantial Completion of the Development Project has occurred, the obligations of Developer under this Agreement may not be assigned in whole or in part without the prior written approval of City, which approval will not be unreasonably withheld, conditioned, or delayed upon a reasonable demonstration by Developer of the proposed assignee’s experience and financial capability to undertake and complete all portions of the Work with respect to the Development Project and the Internal Infrastructure Improvements, all in accordance with this Agreement. Notwithstanding the foregoing, Developer is permitted to subcontract the construction of any portion of the Development Project or Internal Infrastructure Improvements without the consent of City but Developer will remain liable under this Agreement. (c) The City hereby approves, and no prior consent will be required in connection with: (1) the right of Developer to encumber or collaterally assign its interest in the Property or any portion thereof or any interest in the Agreement to secure loans, advances or extensions of credit to finance or from time to time refinance all or any part of the Eligible Costs, or the right of the holder of any such encumbrance or transferee of any such collateral assignment; (2) the right of Developer to assign Developer’s rights, duties and obligations under the Agreement to a Related Party; or (3) the right of Developer to sell or lease individual portions of the Property in the ordinary course of the development of the Development Project; provided that in each such event Developer named herein will remain liable hereunder for the Substantial Completion of the Development Project, and will be released from such liability hereunder only upon Substantial Completion of the Development Project. 6.4 Remedies. (a) If the Developer reasonably believes that it will fail to meet a Project Milestone set forth on Exhibit F, the Developer will give notice to the City summarizing the expected delay and the cause of the expected delay (the “Delay Notice”). Within 60 days following delivery of a Delay Notice to the City, the Developer will appear before the Governing Body to discuss the Delay Notice and Project Milestones. If the Developer fails to meet the Project Milestones set forth on Exhibit F, the Governing Body may reduce the total Eligible Costs to be reimbursed to Developer as set forth on Exhibit F. Notwithstanding the foregoing, if Developer fails to meet a Project Milestone and such failure continues for 6 months after the date set forth on Exhibit F, the City may pursue any remedy available pursuant to Section 6.4(b) or 6.4(d) without the necessity of the applicable notice and cure periods. (b) Except as otherwise provided in this Agreement and subject to Developer’s and City’s respective rights of termination, in the event of any breach of any term or condition of this Agreement by either Party, or any successor, the breaching Party (or successor) will, upon written notice from the other Party specifying such claimed breach, proceed immediately to cure or remedy such breach, and will, in any event, within 30 days after receipt of notice, cure or remedy such default. If the breach is not cured or remedied, the aggrieved Party may hold the breaching Party in default of this Agreement and there upon may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such 600596.20000\DEVELOPMENT AGREEMENT v.6 13 default or breach, including, but not limited to proceedings to compel specific performance by the defaulting or breaching Party, withholding funds received pursuant to K.S.A. 12-5250(b)(2)(A) and/or repeal of the ordinance establishing the District. For purposes of this Section 6.4, no Party may be deemed in default of this Agreement unless and until it has received notice of any claimed breach and has been given an opportunity to cure the same. (c) Notwithstanding any other provision of this Agreement, in no event will the Developer or the City, its Governing Body members, officers, employees, agents or independent contractors ever be liable for any punitive, special, incidental, or consequential damages in connection with this Agreement. For purposes of this Section 6.4, consequential damages include, but are not limited to, lost profits, lost tax revenue, or other similar losses which are not direct out-of-pocket costs incurred by the non-defaulting Party. Any monetary damages owed by the City will be limited to and will only be payable from the Developer’s pro-rata portion of RHID Funds actually received by the City as a result of the creation of the District. (d) Notwithstanding any other provision of this Agreement, if Developer defaults in or breaches any material provision of this Agreement and fails to cure such default or breach within thirty (30) days after receipt of written notice from City of such default or breach, the City may deem Developer’s Eligible Expenses to be $0 and continue to collect and distribute RHID Funds on a pro-rata basis between the City and the County until each of the City and the County is fully reimbursed for its Eligible Expenses, after which the City may terminate this Agreement and repeal the Ordinance establishing the District. 6.5 Force Majeure. Neither City nor Developer nor any successor in interests will be considered in breach or default of their respective obligations under this Agreement, and times for performance of obligations hereunder will be extended in the event of any delay caused by force majeure, including, without limitation, damage or destruction by fire or casualty; strike; lockout; civil disorder; act of terror; war; shortage of delay in shipment of material or fuel; acts of God; unusually adverse weather or soil conditions; unforeseen site conditions that render the site economically or physically undevelopable (as a result of additional cost or delay); pandemics, or any other cause or contingency similarly; or other causes beyond the Parties’ reasonable control, including but not limited to, any litigation, court order or judgment resulting from any litigation affecting the validity of this Agreement; provided that such event of force majeure will not be deemed to exist as to any matter initiated or unreasonably sustained by Developer, and further provided that Developer notifies city in writing within thirty (30) days of the commencement of such claimed event of force majeure. 6.6 Notices. Any notice, demand or other communication required by this Agreement to be given by either Party hereto to the other will be in writing and will be sufficiently given or delivered if dispatched by certified United State first class mail, postage prepaid, or delivered personally, a. In the case of Developer, to: South View Estates, LLC P.O. Box 542 1334A North Ohio Salina, Kansas 67401 600596.20000\DEVELOPMENT AGREEMENT v.6 14 b. In the case of City, to: With a copy to: City of Salina, Kansas Clark, Mize & Linville, Chtd. Attention: City Manager Attn: Greg A. Bengtson, Esq. 300 W. Ash Street 129 S. 8th Street Salina, Kansas 67401 Salina, Kansas 67402 Email: mike.schrage@salina.org Email: gabengtson@cml-law.com Phone: (785) 309-5700 Phone: (785) 823-6325 Or to such other address with respect to either Party as that Party may, from time to time, designate in writing and forward to the other as provided in this Section 6.6. 6.7 Conflicts of Interest. (a) No member of the Governing Body or any branch of City’s government who has any power of review or approval of any of Developer’s undertakings, or of City’s contracting for goods or services for South View Estates Development, will participate in any decisions relating thereto which affect that member’s personal interests or the interests of any corporation or partnership in which that member is directly or indirectly interested. Any person having such interests will immediately, upon knowledge of such possible conflict, disclose, in writing, to the Governing Body the nature of such interest and seek a determination by the Governing Body with respect to such interest and, in the meantime, will not participate in any actions or discussions relating to the activities herein proscribed. (b) The Developer warrants that it has not paid or given and will not pay or give any officer, employee or agent of the City any money or other consideration for obtaining this Agreement. The Developer further represents that, to its best knowledge and belief, no officer, employee or agent of the City who exercises or has exercised any functions or responsibilities with respect to the project during his or her tenure, or who is in a position to participate in a decision making process or gain insider information with regard to the project, has or will have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with the project, or in any activity, or benefit therefrom, which is part of the project at any time during or after such person’s tenure. 6.8 Insurance; Damage or Destruction. (a) Developer will cause there to be insurance coverage as hereinafter set forth at all times during the process of constructing the Work and, from time to time at the request of City, will furnish City with proof of payment of premiums on: (1) Builder’s Risk insurance, written on Completed Value Basis, in an amount equal to one hundred percent (100%) of the insurable value of the Work at the date of completion, and with coverage available in non-reporting form on the so called “all risk” form of policy. The interest, if any, of City will be protected in accordance with a clause in form and content satisfactory to City; and, (2) Commercial general liability insurance (including operations, operations of subcontractors, completed operations and contractual liability insurance) together with an owner’s contractor’s policy, with limits against bodily injury and property damage of not less than Three Million Dollars ($3,000,000.00) per occurrence (to accomplish the above required limits, an umbrella excess liability policy may be used); and 600596.20000\DEVELOPMENT AGREEMENT v.6 15 (3) Workers Compensation insurance, with statutorily required coverage, including employer’s liability of not less than One Million Dollars ($1,000,000). (b) The policies of insurance required pursuant to clauses (1) and (2) above will be in form and content reasonably satisfactory to City and will be placed with financially sound and reputable insurers licensed to transact business in the State of Kansas with general policy holder’s rating of not less than A- and a financial rating of A- as rated in the most current available “Best’s” insurance reports. The Developer will give not less than 30 days advance written notice to the City in the event of cancellation of such policy or change affecting the coverage thereunder. All policies of insurance required pursuant to this section will name City as an additional insured and/or loss payee. Developer will deliver to City evidence of all insurance to be maintained hereunder, prior to the City signing the Agreement. 6.9 Inspection. Developer will allow City and its employees, agents and representatives to inspect, upon request, all architectural, engineering, demolition, construction and other contracts and documents pertaining to the construction of the Work as City determines is reasonable and necessary to verify Developer’s compliance with the terms of this Agreement. 6.10 Choice of Law. This Agreement will be deemed to have been fully executed, made by the Parties in, and governed by the laws of State of Kansas for all purposes and intents. 6.11 Entire Agreement; Amendment. The Parties agree that this Agreement, the Development Plan, and the Funding Agreement, collectively constitute the entire agreement between the Parties and that no other agreements or representations other than those contained in this Agreement have been made by the Parties. This Agreement may be amended only in writing and effective when signed by the authorized agents of the Parties. 6.12 Counterparts. This Agreement is executed in multiple counterparts, each of which constitute one and the same instruments. 6.13 Severability. If any term or provision of this Agreement is held to be unenforceable by a court of competent jurisdiction, the remainder will continue in full force and effect, to the extent the remainder can be given effect without the invalid provision. 6.14 Representatives Not Personally Liable. No elected or appointed official, agent, employee or representative of City will be personally liable to Developer in the event of any default or breach by any Party under this Agreement or for any amount which may become due to any Party or on any obligations under the terms of this Agreement. 6.15 Legal Actions. If a third party brings an action against City, or any officials, agents, employees or representatives thereof contesting the validity or legality of any of the terms of this Agreement, or the ordinance approving this Agreement, Developer may, at Developer’s option but only with City’s consent, assume the defense of such claim or action (including without limitation, to settle or compromise any claim or action for which Developer has assumed the defense) with counsel of Developer’s choosing. The Parties expressly agree that so long as no conflicts of interest exist between them, the same attorney or attorneys may simultaneously represent City and Developer in any such proceeding; provided, Developer and its counsel will consult with City throughout the course of any such action and Developer will pay all reasonable and necessary costs incurred by City in connection with such action. If such defense is assumed by Developer, all costs of any such action incurred by City will be promptly paid by Developer. If City refuses to permit Developer to assume the defense of any action, then costs incurred by City will be paid by City. 600596.20000\DEVELOPMENT AGREEMENT v.6 16 6.16 Release and Indemnification. Notwithstanding the expiration, termination or breach of this Agreement by either Party, the indemnifications and covenants contained in this Section 6.16 will, except as otherwise expressly set forth herein, survive such expiration, termination or breach of this Agreement by Parties hereto. (a) Notwithstanding anything herein to the contrary, City and its Governing Body members, officers, agents, servants, employees and independent contractors will not be liable to Developer for damages or otherwise in the event that any ordinance, order or resolution adopted in connection with this Agreement is declared invalid or unconstitutional in whole or in part by the final (as to which all rights of appeal have expired or have been exhausted) judgment of any court of competent jurisdiction, and by reason thereof either City is prevented from performing any of the covenants and agreements herein or Developer is prevented from enjoying the rights and privileges hereof. (b) Developer releases from, agrees to indemnify and hold harmless City, its Governing Body members, officers, agents, servants and employees against, and covenants and agrees that City and its Governing Body members, officers, agents, servants, employees and independent contractors will not be liable for, any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the acquisition of the Property or construction of the Work including any and all claims arising from the acquisition of the Property, including, but not limited to, location of hazardous wastes, hazardous materials or other environmental contaminants on the Property, including all costs of defense, including attorney’s fees, except for those matters rising out of the willful and/or wanton negligence of City and its governing body members, officers, agents, servants, and employees. (c) City and its Governing Body members, officers, agents, servants and employees will not be liable for any damage or injury to the persons or property of Developer or its officers, agents, servants or employees or any other person who may be about the Property or the Work except for matters arising out of the willful and/or wanton negligence of City and its Governing Body members, officers, agents, servants and employees. (d) All covenants, stipulations, promises, agreements and obligations of City contained herein will be deemed to be the covenants, stipulations, promises, agreements and obligations of City and not of any of its Governing Body members, officers, agents, servants or employees in their individual capacities. (e) No official, employee or representative of City will be personally liable to Developer in the event of a default or breach by any Party to this Agreement. (f) Developer releases from and covenants and agrees the City, its Governing Body members, officers, employees, agents and independent contractors will not be liable for, and agrees to indemnify and hold City, its Governing Body, members, officers, employees, agents and independent contractors harmless from and against any and all suits, interest, claims and cost of attorney fees incurred by any of them, resulting from, arising out of, or in any way connected with: (1) the Development Project or its approval, (2) the construction of the Work, (3) the negligence or willful misconduct of Developer, its employees, agents or independent contractors in connection with the management, development, and construction of the Work, (4) the compliance by Developer with all applicable state, federal and local environmental laws, regulations, ordinances and orders, (5) underground storage tanks located on or about the Property, (6) friable asbestos or asbestos-containing materials at, on, or in the Property, (7) the operation of all or any part of the Property , or the condition of the Property, including, without limitation, any environmental cost or liability, or (8) negotiations, inspections, acquisitions, preparations, construction, leasing, operations, and other activities of Developer or its agents in connection with or leading to the Development Project or the Property; except that the foregoing release and indemnification will not apply in the case of such liability arising directly out of the willful and/or wanton negligence of City or its authorized Governing Body 600596.20000\DEVELOPMENT AGREEMENT v.6 17 members, officers, employees and agents or which arises out of matters undertaken by City following termination of this Agreement. 6.17 Tax Implications. The Developer acknowledges and represents that (1) neither the City nor any of its officials, employees, consultants, attorneys or other agents has provided to the Developer any advice regarding the federal or State income tax implications or consequences of this Agreement and the transactions contemplated hereby, and (2) the Developer is relying solely upon its own tax advisors in this regard. 6.18 Cash Basis and Budget Laws. The Parties acknowledge and agree that the ability of the City to enter into and perform certain financial obligations pursuant to this Agreement are subject to the K.S.A. 10-1101 et seq. and K.S.A. 79-2935 et seq. 6.19 No Partnership. Nothing contained herein will be construed as creating a partnership between the Parties. 6.20 Term. The term of this Agreement will commence on the Effective Date and, unless terminated earlier as provided in this Agreement, expire on the latest of: (i) the date all Eligible Costs have been reimbursed with RHID Funds, subject to the requirements and limitations set forth in this Agreement; or (ii) 25 years after the date of the RHID Ordinance. 6.21 Authorized Parties. Whenever under the provisions of this Agreement and other related documents, instruments or any supplemental agreement, a request, demand, approval, notice or consent of the Parties are required, or the Parties are required to agree or to take some action at the request of the other Party, such approval or such consent or such request shall be given for the City, unless otherwise provided herein, by the Governing Body and for the Developer by any officer of Developer so authorized; and any person shall be authorized to act on any such agreement, request, demand, approval, notice or consent or other action and neither Party shall have any complaint against the other as a result of any such action taken. [BALANCE OF THIS PAGE LEFT BLANK INTENTIONALLY] IN WITNESS WHEREOF, (;::ity and Developer have caused this Agreement to be executed in their r,especti ~./,-1,~~ • has caused its seal to be affixed thereto, and attested as to the date first abovewri \ ,· .. · .•···· ................ : .. . ... or,GANIZL:o •• CITY OF SALINA, KANSAS (SEAL) 1070 ATTpB ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on Nrxerobe.r5 ~021, by Melissa Rose Hodges, Mayor, and JoVonna A. Rutherford, Clerk, of the City of Salina, Kansas, a Kansas municipal corporation. (SEAL) ASHLEY RUSSELL My Appointment Expires August 30, 2022 600596.20000\DEVELOPMENT AGREEMENT aa~VM~ A::::h. I~ bu._-sSd( Typed or Prin; Name of Notary Public (City Signature Page to Development Agreement) By: Name: Title: ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on /0 / c¼g / , 2021, by Tod Roberg, a duly authorized Member of South View Estates, LLC, a Kansas limited liability company, on behalf of said limited liability company. (SEAL) I'\ • LOUISE A. CREAMER ~ Notary Public • State of Kansas My Appl Expires {5 / / o / d-3 My Appointment Expires: 600596.20000\DEVELOPMENT AGREEMENT ~W~l R;J. Ou(l,,lu_,) ) otaiy Public (J)luse., A. Crecvre.C Typed or Printed Name ofNotaiy Public (Developer Signature Page to Development Agreement) 600596.20000\DEVELOPMENT AGREEMENT v.6 SCHEDULE OF EXHIBITS Exhibit A Property Description Exhibit B Property Map Exhibit C Eligible Costs for South View Estates Development Exhibit D Certification of Substantial Completion Form Exhibit E Request for Reimbursement Form Exhibit F Project Milestones Exhibit G Required Housing Standards Exhibit H Development Plan Exhibit I Funding Agreement Exhibit J Fire Marshall Approved Safety Plan Exhibit K Agreement between City and County 600596.20000\DEVELOPMENT AGREEMENT v.6 A-1 EXHIBIT A PROPERTY DESCRIPTION SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline, County, Kansas. 600596.20000\DEVELOPMENT AGREEMENT v.6 B-1 EXHIBIT B PROPERTY MAP SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Ryan Addition Bra bum St ~ !lliTfllU/~---, ullc:III Dr l [ I IIII_II II IIJl l _ __ ,·~- 1 inch = 400 feet 600596.20000\DEVELOPMENT AGREEMENT v.6 C-1 EXHIBIT C ELIGIBLE COSTS FOR SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT Category Estimated Amount Land Acquisition1 $ 851,000 Site Work2 2,400,000 Monument Sign/Entry/Fence 20,000 Engineering Design 60,000 Architecture Design 20,000 Development/Legal/Accounting/Brokerage/Project Management/Permits 0 Kane Law Office, LLC – Legal (RHID) 10,000 Other Legal 5,000 Project Accounting 2,400 Brokerage Fees3 244,400 Insurance 36,000 Heartland Housing Partners – Project Mgmt. 175,000 City of Salina – Permit Fees 0 City of Salina – RHID Fees 25,000 Construction Finance 0 Lender – Pre-Vertical Construction Infrastructure Interest 275,000 Lender – Long Term Infrastructure Interest 2,204,247 Contingency (non-bank interest not included) 512,640 Total $6,840,687 1 Subject to verification as set forth in Section 5.2 of the Agreement 2 Including parking, sidewalks, earth work, sanitary sewer, storm water, electric, natural gas, streets, landscape and fencing 3 20% of brokerage fees actually paid by the Developer may be deemed related to the sale of the improved lots exclusive of vertical construction improvements and eligible for reimbursement 600596.20000\DEVELOPMENT AGREEMENT v.6 D-1 EXHIBIT D CERTIFICATION OF SUBSTANTIAL COMPLETION FORM The undersigned, on behalf of South View Estates, LLC (the “Developer”), pursuant to Section 4.4 of the Development Agreement dated as of August 30, 2021 (the “Development Agreement”) by and between the City of Salina, Kansas, and the Developer, hereby certifies as follows. All capitalized terms used herein have the meaning attributable to such terms in the Development Agreement. 1. The Internal Infrastructure Improvements are sufficiently complete in accordance with the Construction Plans, excepting all punch list items, such that the Developer can occupy or utilize the Work for its intended purpose. 2. Such portion of the Work has been completed in a good and workmanlike manner. 3. There are no mechanic’s or materialmen’s liens or other statutory liens on file encumbering title to the Property; all bills for labor and materials furnished for such portion of the Work which could form the basis of a mechanic’s, materialmen’s or other statutory lien against the Property have been paid in full, and within the past four months no such labor or materials have been furnished which have not been paid for. 4. All applicable building codes have been complied with in connection with the Work. Dated: ____________________, 20____ SOUTH VIEW ESTATES, LLC By: Authorized Member ACCEPTED: CITY OF SALINA, KANSAS By: City Manager Date: 600596.20000\DEVELOPMENT AGREEMENT v.6 E-1 EXHIBIT E REQUEST FOR REIMBURSEMENT City of Salina, Kansas Attention: City Manager You are hereby requested by the undersigned, an authorized representative of South View Estates, LLC (the “Developer”) to disburse funds held by the City in the special revenue fund created pursuant the authority in K.S.A. 12-5250(b)(2)(A) for the South View Estates Development project (the “Fund”) and set forth in the Development Agreement between the City of Salina, Kansas and the Developer for the South View Estates Rural Housing Incentive District dated August 30, 2021 (the “Agreement”) to reimburse expenditures made by the Developer for Eligible Costs (as defined in the Agreement) as described on and in the amounts set forth in the Schedules attached to this invoice and incorporated herein by this reference (the “Schedules”). I hereby certify that the amounts requested in the attached Schedules have been paid by the Developer in payment of costs that are Eligible Costs, as defined in the Agreement. I further certify that no part of the amounts set forth in the Schedules have been the basis for any previous withdrawal of any moneys from the Fund. I further certify that no part of the amounts set forth in the Schedules have been paid by direct funds from third parties other than financing institutions (i.e. American Rescue Plan funding). I further certify that the Developer is not in default of any provisions of the Agreement, including but not limited to the compliance with the Required Housing Standards. Attached to the Schedules is a description of the nature of the item billed, a reference to which type of Eligible Cost the expense applies to under the Rural Housing Incentive Act and the Agreement, and a copy of the contract, invoice or other billing for the Eligible Costs for which Developer seeks reimbursement, along with copies of checks, evidence of wire transfers or other evidence of payment by the Developer of such Eligible Costs and hereby certify that such copies are true and accurate copies of the original documents. Developer acknowledges that any reimbursements will be made in accordance with the Agreement. Dated: ____________________, 20____ SOUTH VIEW ESTATES, LLC By: Authorized Member 600596.20000\DEVELOPMENT AGREEMENT v.6 E-2 Invoice Reimbursement Schedule Pursuant Section 5.2 of the Agreement, I hereby request reimbursement of the amounts specified below and I certify that the description of the purchase or nature of each payment is reasonable, accurate and complete and that Developer has previously paid such Eligible Costs: Payee Name Date of Payment Purpose or Nature of Payment Amount 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ Total Expenses $____________________ Developer Signature Note: Copies of bills, contracts, checks and other evidence reflecting the amounts shown above (as described in Section 5.2 of the Agreement) should be attached to this Schedule. 600596.20000\DEVELOPMENT AGREEMENT v.6 F-1 EXHIBIT F PROJECT MILESTONES Date Obligation Monthly Reduction for Failure to Comply 90 days after expiration of nullification period set forth in K.S.A. 12-5246 Commencement of construction 18 months after commencement of construction Completion of at least 14 single family homes and 11 townhome units available for sale and all associated Internal Infrastructure Improvements 2.5% 24 months after commencement of construction Completion of at least 30 single family homes and 44 townhome units available for sale and all associated Internal Infrastructure Improvements 2.5% 36 months after commencement of construction Substantial completion of all Internal Infrastructure Improvements; Completion of at least 42 single family homes and 66 townhome units available for sale 2.5% 600596.20000\DEVELOPMENT AGREEMENT v.6 G-1 EXHIBIT G REQUIRED HOUSING STANDARDS Single Family Detached Homes Town Homes Maximum Initial Sales Price 1 $225,000 $190,000 Minimum Finished Square Feet 1,100 1,000 Minimum Number of Bedrooms 2 2 Minimum Level of Finish See attached spec sheet G-1 See attached spec sheet G-2 1 First sale to an owner-occupant unaffiliated with the Developer or a Related Party 600596.20000\DEVELOPMENT AGREEMENT v.6 G-1-1 EXHIBIT G-1 SINGLE FAMILY DETACHED HOME MINIMUM SPEC SHEET Southview Estates, LLC Southview states, LLC is pre nting the Ryan Addition. The Ryan Addition will bring brand new affordable singl - family homes and townh m s to our community! The floor plans will fi ature two and three bedrooms, no ba ements, with sing] car attached garage with garage door opener . Th exteriors will include low E double pane vinyl windows heritage shingles, seamless gutt r and downspouts, 8" lap siding for the front and 12 ' lap siding for the backs and sides. AJl horn s/townhomes will meet City of Salina adopted IRC Efficiency Codes. The interior will feature painted M.D.F. doors and trim smooth-finished a c.l painted h trock walls, and textured ceiling . The plumbing fixtures will be Moen or equivalent. The kitchens will feature stainless-steel sinks, Formica countertops dishwashers sto es, and built-in microwaves. ach home/townhome will have a laundry room. The cabinets will be Koch Express Line or equival nt. Popular style light fixtures will be selected for each home/townhom . The flooring in the bedrooms and living room will be carpet. The bathroom kitchens dining room and laundry rooms wil1 have 1 uxury inyl plank flooring. We will offer an optional inground concr te torm shelter starting at an additional 3,000.00 installed. 600596.20000\DEVELOPMENT AGREEMENT v.6 G-2-1 EXHIBIT G-2 TOWN HOME MINIMUM SPEC SHEET Single Family Homes & Townhomes FOU:\"DATI0:'11 ANO ROLGII •·RA'\UNG Foundation/Footings Sub0oor Roof Framing material Roof decking Exterior wall covering Roof covering Patio INSULATIO"" AND EFFECIENCY Exterior wall insulation Ceiling insulation Windows, doors, and exterior penetrations Ryan Addition Spec Sheet Southview Estates, LLC P.O. Box 542 Salina, KS 67401 12" wide by 36" deep rebar reinforced concrete p~-r City of Salina Building Code 4" wire reinforced concrete with vapor barrier Engineered Trusses -minimum 5/12 pitch 7/16OSB LP S:nartSide siding -g·· Lap on Front 12" Lap on back and sides or equi\'alcnt Tamko -Heritage Style I 30-year life expectancy or equivalent 4" wire reinforced concrete R-13 with house-wrap R-30 Spra!' foam INTERIOR \\ALL AND CEILING FINISH Material ½" S'lcctrock Wall and Ceiling !inishcs Painted walls & textured ceilings Vaulted Ceilings (which rooms) NIA Light fixtures (includes fixtures with LED bulbs) Popular I Modem Door Chime Hard wired electric CABl:'111!:TS A'.\D TRl:\1 Cabinets Koch Express Linc or equivalent Countenop material Fonnica Backsplash material Tile Doors M.D.F. Windows Low E Double Pane Vinyl FLOOR CO\'ERl'.\GS Living room Carpet Dining room Luxury Vinyl Plank Kitchen Luxury Vinyl Plank Bedrooms Carpet Bathrooms Luxury Vinyl Plank Family room Carpet Laundry room Luxury Vinyl Plank MECHANICAL S\'STE!\-IS Appliances Amano Stove model #AER 6603 / Amana Dishwasher model #A VB 1400 I Amana Microwave model /IAMV 2306 or eauivalcnt Water supply plumbing type PEX Waste drain plumbing PVC Fireplaces (s) NIA Heating and Air condition HEIL 80% / 80,000 BTU Furnace. HEIL Air Conditioner 14 Seer or e<iuivalcnt OPTIONAL n :,\Tl'RES Stonn Shelter !aground ooncre1e staning at an additional installed price ofS3,000 600596.20000\DEVELOPMENT AGREEMENT v.6 H-1 EXHIBIT H DEVELOPMENT PLAN 600596.20000\DEVELOPMENT PLAN v.1 DEVELOPMENT PLAN OF THE CITY OF SALINA, KANSAS SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT AUGUST 30, 2021 H-2 600596.20000\DEVELOPMENT PLAN v.1 INTRODUCTION The City Commission (the “Governing Body”) of the City Salina, Kansas (the “City”) has previously adopted Resolution No. 21-7955 (the “Preliminary Resolution”), which found and determined that: 1.There is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. 2.The shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. 3.The shortage of quality housing is a substantial deterrent to the future economic growth and development of the City. 4.The future economic wellbeing of the City depends on the Governing Body providing additional incentives for the construction of/or renovation of quality housing in the City. Based on these findings and determinations, the Governing Body proposed the establishment of Rural Housing Incentive Districts within the City pursuant to K.S.A. 12-5241 et seq. (the “Act”). Following the adoption of the Preliminary Resolution, a certified copy was submitted to the Secretary of Commerce for approval of the establishment of the Rural Housing Incentive District in the City as required by K.S.A. 12-5244(c). On May 21, 2021, the Secretary of Commerce provided written confirmation approving the establishment of the Rural Housing Incentive District within the City. DEVELOPMENT PLAN ADOPTION K.S.A. 12-5245 states that once a city receives approval from the Secretary of Commerce for the development of a rural housing incentive district, the governing body must adopt a plan for the development of housing and public facilities within the proposed district. DEVELOPMENT PLAN As a result of the shortage of quality housing, the City proposes this development plan (the “Development Plan”) to assist in the development of quality housing within the City. (1)Legal Description and Map of the District. The legal description of South View Estates Rural Housing Incentive District (the “District”) and a map of the District are attached as Exhibit A to this Development Plan. (2)Existing Assessed Valuation of the District. The assessed valuation of all real estate within the District for 2020 is $708. (3)Owners of Record. The names and addresses of the owners of record for the real estate within the District are: Quail Meadow Estates, Inc. 2601 S. Ohio St. Salina, Kansas 67401 H-3 600596.20000\DEVELOPMENT PLAN v.1 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 (4)Description of Housing and Public Facilities Projects. The housing and public facilities projects that are proposed to be constructed include the following: Housing Facilities The housing facilities consist of constructing forty-two (42) single family homes (approximately 1,100 square feet each) with 2 or 3 bedrooms depending on the unit type, 1-2.5 bathrooms, and a one-car garage; and sixty-six (66) townhome units (thirty-three (33) structures) (approximately 950-1100 square feet each) with 2 or 3 bedrooms depending on the unit type, 1-2.5 bathrooms, and a one-car garage. Public Facilities Public facilities and public improvements will include construction of Infrastructure Improvements located within the boundaries of the District, and all related infrastructure, including but not limited to parking, water, sanitary sewer, storm sewer, gas, and electric improvements. Infrastructure improvements may be constructed prior to or concurrently with the housing facilities in the project. A copy of the Site Plan is attached as Exhibit B to this Development Plan. (5)Developer’s Information. The names, addresses and specific interests in the real estate in the District of the developers responsible for development of the housing and public facilities is: Owner of Real Property: Quail Meadow Estates, Inc. 2601 S. Ohio St. Salina, Kansas 67401 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 Developer: South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 (6)Contractual Assurances. The Governing Body entered into a Development Agreement, dated August 30, 2021 (the “Development Agreement”), with South View Estates, LLC, a Kansas limited liability company engaged in the business of development with its principal office located at 1334A North Ohio, Salina, Kansas 67401 (the “Developer”). The Development Agreement, as supplemented and amended, includes the project construction schedule, a description of projects to be constructed, financial obligations of the developer, and financial and administrative support from the City. The Development Agreement includes contractual assurances, if any, the Governing Body has received from the Developer guaranteeing the financial feasibility of specific housing tax incentive projects in the proposed district. A copy of the Development Agreement is attached as Exhibit C to this Development Plan. H-4 600596.20000\DEVELOPMENT PLAN v.1 (7)Comprehensive Analysis of Feasibility. A comprehensive analysis was conducted to determine whether the public benefits derived from the District will exceed the costs and that the income from the District, together with other sources of revenue, would be sufficient to pay for the public improvements to be undertaken in the District. A copy of the analysis is attached as Exhibit D to this Development Plan. The analysis estimates the property tax revenues that will be generated from the District, less existing property taxes, to determine the revenue stream available to support reimbursement to the Developer for all or a portion of the costs of financing the public infrastructure. The estimates indicate that the revenue realized from the project would be adequate to pay the eligible costs. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] H-5 600596.20000\DEVELOPMENT PLAN v.1 H-A-1 EXHIBIT A DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT LEGAL DESCRIPTION AND MAP OF THE DISTRICT Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline, County, Kansas. 600596.20000\DEVELOPMENT PLAN v.1 H-A-2 Ryan Addition 18 'umSt I I ' I I I f l I I I J l l [----·-·-·~ 1 inch = -400 ·feet 600596.20000\DEVELOPMENT PLAN v.1 H-B-1 EXHIBIT B DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT SITE PLAN 600596.20000\DEVELOPMENT PLAN v.1 H-C-1 EXHIBIT C DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT DEVELOPMENT AGREEMENT 600596.20000\DEVELOPMENT PLAN v.1 H-D-1 EXHIBIT D DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT COMPREHENSIVE FINANCIAL FEASIBILITY ANALYSIS South View Estates RHIDEstimated Eligible Expenses $6,840,687Estimated RHID Increment $6,550,855Estimated Unreimbursed Developer Funds $289,832AggregateProperty TaxCurrent 2020/2021 on Base PerAssessed Value Mill Levy Value lotLand 708Building 0140.333Total 708 140.333 $99.36Est. Less Less Less Property AnnualNo. of Estimated Estimated Property Mill Property Taxes on State State levy for USD Tax Less Increment Annual Year 1 23456 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25TotalUnitsValue (per unit)Value (Total)ClassLevyTaxBase1.5 Mills20 MillsAmount Not EligibleTaxCumulative2021/22 2022/23 2023/24 2024/25 2025/2642 Single family houses$225,000.00 $9,450,000.00 11.50% 140.333 $152,506.89 $42.70 $1,630.13 $21,735.00 $129,099 $129,099 $129,099 $0 $0.00 $21,517 $92,214 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $2,824,81166 Townhome Units $190,000.00 $12,540,000.00 11.50% 140.333 $202,374.22 $56.66 $2,163.15 $28,842.00 $171,312 $171,312 $300,411 $0 $0.00 $14,276 $114,208 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $3,726,045Estimated annual total$0 $0 $35,793 $206,422 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411$6,550,855Estimated cumulative total$0 $0 $35,793 $242,214 $542,626 $843,037 $1,143,449 $1,443,860 $1,744,272 $2,044,683 $2,345,095 $2,645,506 $2,945,918 $3,246,329 $3,546,741 $3,847,152 $4,147,564 $4,447,975 $4,748,387 $5,048,798 $5,349,210 $5,649,621 $5,950,032 $6,250,444 $6,550,855Assumptions:14 single family houses and 11 townhome units completed by June 2023 (appraised Jan 2024 for taxes collected in 2024/2025, assumed taxes levied on half value for 2023/2024 since entire project not completed in time for Jan 2023 appraisal and full value thereafter)16 additional single family homes and 33 additional townhome units completed by December 2023 (appraised Jan 2024 for taxes collected 2024/2025)final 12 single family houses and 22 townhome units completed by December 2024 (appraised Jan 2025 for taxes collected in 2025/2026)Constant AV per unit11.5% property class for assessed valueConstant mill levy based on 2020/21 levyDistrict created October 2021H-D-2 600596.20000\DEVELOPMENT AGREEMENT v.6 I-1 EXHIBIT I FUNDING AGREEMENT 600596.20000\FUNDING AGREEMENT v.1 I-2 FUNDING AGREEMENT (SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT) This Funding Agreement (“Agreement”) is entered into as of August 30, 2021, between the CITY OF SALINA, KANSAS (“City”), and SOUTH VIEW ESTATES, LLC (“Developer”). RECITALS WHEREAS, the City is a political subdivision organized and existing under the laws of the State of Kansas (the “State”); and WHEREAS, the Developer is a Kansas limited liability company engaged in the business of development with its principal office located at 1334A North Ohio, Salina, Kansas 67401, and the Developer and the City anticipate negotiating and entering into a Development Plan and Agreement, whereby the Developer will develop real property by constructing approximately 42 single family houses, 66 townhome units, and all related internal infrastructure improvements in one or more phases at a proposed residential development consisting of approximately 24 acres generally located southeast of the intersection of Ohio Street and Schilling Road (the “Project”); and WHEREAS, Developer has acquired the real property where the Project (in one or more phases) will be developed and has requested the City create a rural housing incentive district pursuant to K.S.A. 12- 5241 et seq. to finance all or a portion of the public infrastructure to serve the Project (the “Request”); and WHEREAS, the City has requested that the Developer negotiate and enter into a Development Agreement for the Project in exchange for the City performing certain services set forth herein; and WHEREAS, the City does not have a source of funds to finance costs incurred by the City for legal, financial, planning, inspection, and other services, or for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the Developer to review, evaluate, process, and inspect the Project and the Request (collectively, the “Charges”); and WHEREAS, the parties desire to enter into this Agreement to provide for the funding of consultants used by the City to review, evaluate, process and inspect the Project and the Request and to provide an inducement to the Developer to assume such costs. AGREEMENT 1. Services to be Performed by the City. The City shall: A. Consult with the Developer on the Project in a timely manner and prepare or consult with the Developer on the preparation of and consider the Request in accordance with the provisions of State law, give all notices in a timely manner, make all legal publications and hold hearings as required by State law; B.Provide necessary staff, legal, financial, and planning assistance to prepare and present the Request to the City Commission and to prepare and present required resolutions and ordinances to the City Commission, including the use of outside counsel and consultants; C. If the City Commission approves the Request, to provide the necessary staff, legal, financial, planning and inspection assistance to prepare and negotiate a definitive agreement 600596.20000\FUNDING AGREEMENT v.1 I-3 between the City and the Developer for the implementation of the Request and the development of the Project (the “Development Agreement”); D. If a Development Agreement is entered into, provide the necessary staff, legal, financial, planning and inspection assistance to administer and carry out the terms of such Development Agreement. 2. Initial Deposit. In order to ensure the prompt and timely payment of the Charges, the Developer shall establish a fund in the initial amount of Fifteen Thousand Dollars ($15,000.00) (the “Deposit”) by paying such amount to the City contemporaneously with the execution of this Agreement. The City shall pay, in accordance with this Agreement, initial Charges from the Deposit, including the charges for preparation of this Agreement, and shall promptly submit an itemized statement therefor to the Developer to re-establish the Deposit so that there is always at least Ten Thousand Dollar ($10,000.00) cash balance available against which additional charges and payments may be applied on a current basis. The City shall submit monthly statements itemizing the Charges paid from the Deposit during the preceding month. 3.Additional Funding. A.The City shall submit to Developer an itemized statement for actual and reasonable expenses necessary to perform its obligations hereunder. Such statements shall be submitted on a monthly basis. The Developer shall pay the City the amounts set forth on such statements (the “Additional Funds”) within thirty (30) days of receipt thereof. If such funds are not so received, the City may draw upon the Deposit and if, after such draw, there remains an unpaid balance, such unpaid balance shall be subject to a penalty of one percent (1%) per month until paid, but in no event shall such penalty exceed twelve percent (12%) per annum, and City shall, upon thirty (30) days’ notice and failure to cure, be relieved of any and all obligations hereunder and under the Development Agreement until paid in full, or may terminate this Agreement pursuant to Section 5.A. Developer shall supply the Additional Funds in a timely manner so that City activities and assistance may continue without interruption. B. The City and the Developer agree that the Developer shall reimburse the City for the actual and reasonable expenses necessary to perform the City’s obligations hereunder including the services of Greg Bengtson and Gilmore & Bell, P.C. as legal counsel for the City, and such other special consultants and advisors as the City reasonably deems necessary to perform its obligations under this Agreement. 4.Disbursement of Funds. The City shall disburse the Deposit and Additional Funds for reimbursement of costs to the City on or before the thirtieth (30th) day of each month, and for consulting fees and the payment of all out-of-pocket expenses incurred by the City in connection with the performance of its obligations under this Agreement as payment for such expenses become due. Upon reasonable notice, the City shall make its records available for inspection by Developer with respect to such disbursements. 5. Termination. A.In the event the Developer fails to perform any of its obligations herein, the City may terminate this Agreement, and any other agreement between the parties, at its sole discretion if the Developer fails to cure the default within thirty (30) days after written notice to the Developer of the default. Termination by the City for reasons of an uncured default by Developer shall also terminate any duties and obligations of the City with respect to the Development Agreement, any other agreements between the parties, and the processing of the Developer’s Request. Upon such termination, the City shall retain the Deposit and Additional Funds, if any, necessary to reimburse 600596.20000\FUNDING AGREEMENT v.1 I-4 the City for all reasonable expenses incurred under this Agreement to the date of termination and any monies due and owing to the City pursuant to any other agreements between the parties. B. The parties hereto acknowledge that the Developer may determine to abandon the Project. Upon notice of abandonment by the Developer, this Agreement shall terminate and the City may terminate any other agreements between the parties and shall retain the Deposit and Additional Funds, if any, necessary to reimburse the City for all expenses incurred under this Agreement to the date of termination and any monies due and owing to the City pursuant to any other agreements between the parties. Any amounts remaining from the Deposit and the Additional Funds after all amounts have either been paid as directed by, or reimbursed to, the City shall be returned to the Developer. C. In the event the Deposit and Additional Funds are insufficient to reimburse the City for the outstanding expenses of the City payable hereunder, the Developer shall reimburse the City as set forth in Section 3. Any amounts remaining from the Deposit and the Additional Funds after all amounts have either been paid as directed by, or reimbursed to, the City shall be returned to the Developer. 6. Notice. Any notice, approval, request or consent required by or asked to be given under this Agreement shall be deemed to be given if in writing and mailed by United States mail, postage prepaid, or delivered by hand, and addressed as follows: To the City: To the Developer: City of Salina, Kansas South View Estates, LLC Attention: City Manager Attn: Manager 300 W. Ash Street P.O. Box 542 Salina, Kansas 67401 1334A North Ohio Salina, Kansas 67401 With a copy to: Clark, Mize & Linville, Chtd. Attn: Greg A. Bengtson, Esq. 129 S. 8th Street Salina, Kansas 67402 Each party may specify that notice be addressed to any other person or address by giving to the other party ten (10) days prior written notice thereof. 7.Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Kansas. 8. Counterparts. This Agreement may be executed in multiple originals or counterparts, each of which will be an original and when all of the parties to this Agreement have signed at least one (1) copy, such copies will constitute a fully executed and binding Agreement. ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on No.embr: 5 , 2021, by Melissa Rose Hodges, Mayor, and Jo Vonna A. Rutherford, Clerk, of the City of Salin Kansas, a Kansas municipal corporation. (SEAL) My Appointment Expires: ASHLEY RUSSELL My Appointment Expires August 30, 2022 ¾&::>, Qa:r~ 600596.20000\FUNDJNG AGREEMENT A otary Public SO\~ Tusse.1/ Typed or Pr• Name of Notary Public (Signature Page to Funding Agreement) SOUTH VIEW ESTATES, By: Name: Title: ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on JO/ d-8 , 2021 , by Tod Roberg, a duly authorized Member of South View Estates, LLC, a Kansas limited liability company, on behalf of said limited liability company. (SEAL) fl LOUiD[ /1... CF~EAMER Ei{~ Notari P1Ll:c -Slate of Kansas My Appl. Expires tf//3/ d :2:i My Appointment Expires: 600596.20000\FUNDING AGREEMENT Typed or Printed Name of Notary Public (Signature Page to Funding Agreement) 600596.20000\DEVELOPMENT AGREEMENT v.6 J-1 EXHIBIT J FIRE MARSHALL APPROVED SAFETY PLAN r -$0,IIWNC RO - "''(" .,,./ -�c:,; �-ll�5-n2• ff'C' Do<J' tt/1,lurr, ,;'.\JI' � Phase 1 14 Single Family Homes 22 Town Homes -c,,,.. ...... ,.,, -[, "rolffl"I! ,., .. ,ca !;II.ate,,,,..,,.,.._/ 5.,. ... c-L..-• (l"l'tl I , ... , /v ·1 IIA ••-� (-'ISS-li1.-. !'.CA.I.I Irr,: 1-;· �-or �L": · • • ,,C"' .., •' .. ,,,_,f Lr-�., .. ..,...,, ... ,.,,,4 .lrC-,-1"11.,11 !'"erk,.... :::-.-:,.""U:1-Ur.!'ICnr __ .,•7.1((,"'I'•' i:,,,i,.-.1P-,_ 1'1rloo .. -•-:i _.,.,,,.,.. _ ... r,;u.-.1 •:r•-,1 ,..,. ING.<:: o,,. ·c-Z�:? IS�J'" j .. Ccrc Ir�� l�:c-cllcr u.=,::p 6 :;J, nq; .. ,: H11, l?C'\ ;'.,. ,�,.. ,t;�;.,t-;� .. ,; �.!;\j.� �"�1-r '![ r()-• ,., · t-,,:, ,,. � �., •'IQ Pa I I�-. I,(!,, ,_�:a:l lit<'ll"' l'-1 K,..-.-.7• C ,, .... ,,.i?_,. tlrl "'1:7"1 �-,_.,_�, • , .. >' ,., .. 11 "'�•r�i o...�n� :& ·r�� '"'"• :=. El"�-v· "'-:".>• ,·.II "''·'-'. 'll'J l-:''.\ 3 ,. 60 J-2 z j 2 0.. 0 w ~ 5i C : " ~fl-,- r ' ,, Southview Estates, LLC July 14, 2021 Mr. Mike Schrage, City Manager City of Salina 300 W Ash St Salina, KS 67401 Mr. Troy Long, Fire Marshall Fire Station 1 222 W Elm St. Salina, KS 67401 RE: Ryan Addition -Emergency Access Plan Gentleman, Southview Estates, LLC's Emergency Access Plan for the Ryan Addition construction will consist of all-weather access roads that will support a 75,000-pound vehicle. West fire hydrants on Harbor Drive and Nautical Drive along with the all-weather access roads will be constructed prior to any vertical building construction. Please find enclosed an Emergency Access Road drawing. Cordially, Mr. Tod Roberg, Managing Member P.O. Box 542 <.::ilin::i K<. f;7407-0S42 Southview Estates, LLC Phone #: 785-826-0251 l=::w tf· 7Sll;.-Sl?�-??711 J-3 SALINA FIRE DEPARTMENT 222 W. Elm Salina, Kansas 67401 785 826-7340 Tod Roberg P.O. Box 542 Salina, KS 67402-0542 Cltyof Sal•_. RE: Ryan Addition -Emergency Access Plan Kevin D. Royse Fire Chief kevin.royse@salina.org Thank you for the submitted Emergency Access Plan for Ryan Addition; the plan that you have provided is acceptable with the following additional requirements: I.) Provide street signage at Ohio Street for Harbor Drive and Nautical Drive. 2.) Maintain an all-weather access road as shown on the submitted drawing including the connecting portion of Fountain Drive at all times. 3.) Provide an address at each home once construction has begun, this can be temporary such as numbers painted on ply board and posted in front of each location. 4.) No vertical construction may begin until the all of the above are provide including the two fire hydrants are in place and functional. If you have questions or concerns please feel free to contact me. Troy Long Fire Marshal Salina Fire Department Our Mission: Respond Quickly • Perform Professionally • Save Lives & Property • Be Caring & Compassionate to All • Make sure "Everyone Goes Home" J-4 600596.20000\DEVELOPMENT AGREEMENT v.6 K-1 EXHIBIT K AGREEMENT BETWEEN CITY AND COUNTY Gilmore & Bell, P.C. 10/08/2021 FUNDING CONTRACT RELATING TO THE SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT THIS FUNDING CONTRACT (“Contract”) dated as of August 18, 2021 (the “Effective Date”), is made and entered into by and between the City of Salina, Kansas, a municipal corporation duly organized under the laws of the State of Kansas (the “City”) and Saline County, Kansas, a political subdivision duly organized under the laws of the State of Kansas (the “County”). The City and County are each a “Party” and together constitute the “Parties” hereto. RECITALS A.The City and the County each constitute a “municipality” as defined in K.S.A. 12-2908, as amended (the “Act”) and are authorized to enter into contracts to perform any governmental service, activity or undertaking which each contracting municipality is authorized by law to perform. B.The City has formed the South View Estates Rural Housing Incentive District (the “District”) pursuant to K.S.A. 12-5241 et seq., as amended (the “RHID Act”). C.The County is also authorized to form rural housing incentive districts pursuant to the RHID Act. D.Subject to the terms and provisions of the RHID Act, tax increment generated by property within a rural housing incentive district may be utilized to pay or reimburse the costs of certain eligible expenses (“Eligible Costs”). E.Tax increment generated within the District and paid from the Saline County Treasurer to the Treasurer of the City pursuant to K.S.A. 12-5250(b)(2)(A) (“RHID Funds”) will be utilized to pay or reimburse Eligible Costs pursuant to the terms of a certain Development Agreement (the “Development Agreement”) between the City and South View Estates, LLC, a Kansas limited liability company (the “Developer”), and the terms of this Contract. F.The City and the County desire to enter into this Contract to provide for the pro-rata reimbursement of eligible County expenses from RHID Funds. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the sufficiency of which consideration is hereby acknowledged by each of the parties, the City and the County, with the due authorization and approval of their respective governing bodies, hereby agree as follows: Section 1. Term of Contract. The term of this Contract shall commence as of the Effective Date and, unless terminated earlier as provided in this Contract, expire on the earlier of: (i) the date all County Eligible Costs (as defined herein) have been reimbursed with RHID Funds, subject to the requirements and limitations of this Contract and the Development Agreement; or (ii) 25 years after the date of the City Ordinance creating the District. 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 K-2 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 Section 2. Financing of Internal Infrastructure Improvements. (a)Allocation of RHID Funds. (1)The City, in its sole discretion and at any time, from any source, may elect to fund a portion of the Eligible Costs of the electric, gas, water, sewer, storm sewer, and street improvements necessary for South View Estates Development and located within the boundaries of the District, including engineering costs, any costs of right-of-way and appurtenances related thereto, as set forth on the approved plat for South View Estates Development (the “Internal Infrastructure Improvements”) from available funds of the City. The City will be entitled to reimbursement of all Eligible Costs so paid by the City on a pro-rata basis from each distribution of RHID Funds. (2)The County, in its sole discretion and at any time, from any source, may elect to fund a portion of the Eligible Costs of the Internal Infrastructure Improvements from available funds of the County. The County will be entitled to reimbursement of all Eligible Costs so paid by the County (the “County RHID Expenses”) regardless of where said funding originates on a pro- rata basis from each distribution of RHID Funds in accordance with the terms of this Contract. (3)Unless funded by the City or the County as described in Section 2(a)(1) or (2) hereof, all costs of the Internal Infrastructure Improvements will be paid in cash, or financed, by Developer. The City will use RHID Funds to reimburse the Developer on a pro-rata basis from each distribution of RHID Funds for all or a portion of the Eligible Costs paid by the Developer, subject to the terms of the Development Agreement. (4)For clarity, and by way of example only, pro-rata distributions of RHID Funds between the City, the County, and the Developer will be calculated using the following methodology: Eligible Costs Paid Allocated pro-rata portion of RHID Funds City $ 500,000 6.25% County 1,000,000 12.50% Developer 6,500,000 81.25% Total $8,000,000 100.00% The allocation of RHID Funds will be recalculated when necessitated by a change in submitted Eligible Costs by a party or a reduction in allowable Developer eligible expenses pursuant to the Development Agreement. Recalculations of the RHID Funds allocation will apply on a prospective basis only. (b)Preliminary Request for Reimbursement. Prior to the expenditure of any County funds, the County will submit to the City a preliminary unsigned draft Request for Reimbursement (“Preliminary Request”) in the form attached hereto as Exhibit A setting forth the amount for which reimbursement is sought and an itemized listing of the related Internal Infrastructure Improvements. Each Preliminary Request will be accompanied by such bills, contracts, invoices, or other evidence reasonably satisfactory to the City to document that such expenditures will be for Eligible Costs. (c)City Approval of Preliminary Request for Reimbursement. The City will have 30 calendar days after receipt of any Preliminary Request to review and respond by written notice to the County. If the submitted documentation demonstrates that the Preliminary Request includes only Eligible Costs, then the K-3 600596.20000\CITY COUNTY FUNDING CONTRACT K-A-2 Invoice Reimbursement Schedule Pursuant to Section 2 of the Contract, I hereby request reimbursement of the amounts specified below and I certify that the description of the purchase or nature of each payment is reasonable, accurate and complete and that County has previously paid such Eligible Costs: Payee Name Date of Payment Purpose or Nature of Payment Amount 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ Total Expenses $____________________ County Signature Note: Copies of bills, contracts, checks and other evidence reflecting the amounts shown above (as described in Section 2 of the Contract) should be attached to this Schedule. 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 City will approve the Preliminary Request. In the event the City does not respond within such 30-day period, the Request for Reimbursement will be deemed approved. (d)County Certification of Payment and Request for Reimbursement. After the County receives City approval of a Preliminary Request, the County will deliver to the City an executed copy of the Preliminary Request along with documentation that payment has been made by the County for such Eligible Costs (together a “Request for Reimbursement”) and the City will promptly reimburse the County for the County RHID Expenses pursuant to the terms of this Contract if sufficient pro-rata RHID Funds are available, and quarterly as funds become available in the event that pro-rata RHID Funds in the City’s possession are at that time insufficient. Reimbursements will cease upon the earlier of (a) such time as the County RHID Expenses have been fully reimbursed to the County, or (b) 25 years after the date of the establishment of the District. The City will have no liability and/or responsibility to the County for any payment greater than the pro-rata amounts received from the Saline County Treasurer pursuant to the provisions of K.S.A. 12-5250(b)(2)(A) as a result of the creation of the District. Section 3. Purpose of Agreement. The purpose of this Agreement is to provide the County with the opportunity to participate in the initial funding of the Internal Infrastructure Improvements and to allow for reimbursement through tax increment created in the District pursuant to the RHID Act. Section 4. County’s Right to Terminate. The County may elect to terminate this Contract at any time by written notice to the City. All obligations of the City to reimburse the County for County RHID Expenses will terminate upon receipt of the notice. Section 5. Construction and Enforcement. This Contract shall be construed and enforced in accordance with the laws of the State. Wherever in this Contract it is provided that either Party shall or will make any payment or perform or refrain from performing any act or obligation, each such provision shall, even though not so expressed, be construed as an express covenant to make such payment or to perform, or not to perform, as the case may be, such act or obligation. Section 6. Consents and Approvals; Notices. Whenever in this Contract it is provided that either Party must consent or give its approval for any action, or to refrain from any actions, such Party shall not unreasonably withhold such consent or approval. Any notice required or permitted to be given pursuant to this Contract shall be in writing and shall be hand delivered, sent by United States mail, postage prepaid, or electronic means to the Parties at the following addresses or to such other address as a Party may hereafter specify in writing: To the City: With a copy to: City of Salina, Kansas Clark, Mize & Linville, Chtd. Attention: City Manager Attn: Greg A. Bengtson, Esq. 300 W. Ash Street 129 S. 8th Street Salina, Kansas 67402 Salina, Kansas 67402 Email: mike.schrage@salina.org Email: gabengtson@cml-law.com Phone: (785) 309-5700 Phone: (785) 823-6325 K-4 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 To the County: With a copy to: Saline County, Kansas Michael A. Montoya, P.A. Attention: County Administrator Attn: Michael A. Montoya 300 W. Ash Street, Room 217 256 S. Santa Fe Ave. Salina, Kansas 67402 Salina, Kansas 67401 Email: phillip.smith-hanes@saline.org Email: admin@montoyalaw.kscoxmail.com Phone: (785) 309-5810 Phone: (785) 827-5505 Section 7. Invalidity of Provisions of Contract. If, for any reason, any provision hereof shall be determined to be invalid or unenforceable, the validity and effect of the other provisions hereof shall not be affected thereby. Section 8. Covenants Binding on Successors and Assigns. The covenants, agreements and conditions herein contained shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Section 9. Section Headings. The section headings are for the convenience of reference only and shall not be treated as a part of this Contract or as affecting the true meaning of the provisions hereof. Section 10. Execution of Counterparts. This Contract may be executed simultaneously in multiple counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. Section 11. Electronic Transactions. The transactions described in this Contract may be conducted, and documents related to the Contract may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Amendments. This Contract may be amended, changed or modified only by an agreement in writing executed by both Parties. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] K-5 .. IN WITNESS WHEREOF, the City and the County have duly executed this Contract pursuant to all requisite authorizations as of the date first above written. CITY OF SALINA, KANSAS ATTEST: APPROVED AS TO FORM: 600596.20000\CITY COUNTY FUNDING CONTRACT (City Signature page to Funding Contract) SALINE COUNTY, KANSAS j1 County Clerk APPROVED AS TO FORM: County Counselor 600596.20000\CITY COUNTY FUNDING CONTRACT (County Signature page to Funding Contract) 600596.20000\CITY COUNTY FUNDING CONTRACT K-A-1 EXHIBIT A REQUEST FOR REIMBURSEMENT City of Salina, Kansas Attention: City Manager You are hereby requested by the undersigned, an authorized representative of Saline County, Kansas (the “County”) to disburse funds held by the City in the special revenue fund created pursuant the authority in K.S.A. 12-5250(b)(2)(A) for the South View Estates Development project (the “Fund”) and set forth in the Funding Contract between the City of Salina, Kansas and the County for the South View Estates Rural Housing Incentive District dated August 30, 2021 (the “Contract”) to reimburse expenditures made by the County for Eligible Costs (as defined in the Contract) as described on and in the amounts set forth in the Schedules attached to this invoice and incorporated herein by this reference (the “Schedules”). I hereby certify that the amounts requested in the attached Schedules have been paid by the County in payment of costs that are Eligible Costs, as defined in the Contract. I further certify that no part of the amounts set forth in the Schedules have been the basis for any previous withdrawal of any moneys from the Fund. Attached to the Schedules is a description of the nature of the item billed, a reference to which type of Eligible Cost the expense applies to under the Rural Housing Incentive Act and the Contract, and a copy of the contract, invoice or other billing for the Eligible Costs for which the County seeks reimbursement, along with copies of checks, evidence of wire transfers or other evidence of payment by the County of such Eligible Costs and hereby certify that such copies are true and accurate copies of the original documents. The County acknowledges that any reimbursements will be made in accordance with the Contract. Dated: ____________________, 20____ SALINE COUNTY, KANSAS By: County Administrator Accepted and Approved: By: City Manager 600596.20000\DEVELOPMENT PLAN v.1 DEVELOPMENT PLAN OF THE CITY OF SALINA, KANSAS SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT AUGUST 30, 2021 600596.20000\DEVELOPMENT PLAN v.1 INTRODUCTION The City Commission (the “Governing Body”) of the City Salina, Kansas (the “City”) has previously adopted Resolution No. 21-7955 (the “Preliminary Resolution”), which found and determined that: 1. There is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. 2. The shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. 3. The shortage of quality housing is a substantial deterrent to the future economic growth and development of the City. 4. The future economic wellbeing of the City depends on the Governing Body providing additional incentives for the construction of/or renovation of quality housing in the City. Based on these findings and determinations, the Governing Body proposed the establishment of Rural Housing Incentive Districts within the City pursuant to K.S.A. 12-5241 et seq. (the “Act”). Following the adoption of the Preliminary Resolution, a certified copy was submitted to the Secretary of Commerce for approval of the establishment of the Rural Housing Incentive District in the City as required by K.S.A. 12-5244(c). On May 21, 2021, the Secretary of Commerce provided written confirmation approving the establishment of the Rural Housing Incentive District within the City. DEVELOPMENT PLAN ADOPTION K.S.A. 12-5245 states that once a city receives approval from the Secretary of Commerce for the development of a rural housing incentive district, the governing body must adopt a plan for the development of housing and public facilities within the proposed district. DEVELOPMENT PLAN As a result of the shortage of quality housing, the City proposes this development plan (the “Development Plan”) to assist in the development of quality housing within the City. (1) Legal Description and Map of the District. The legal description of South View Estates Rural Housing Incentive District (the “District”) and a map of the District are attached as Exhibit A to this Development Plan. (2) Existing Assessed Valuation of the District. The assessed valuation of all real estate within the District for 2020 is $708. (3) Owners of Record. The names and addresses of the owners of record for the real estate within the District are: Quail Meadow Estates, Inc. 2601 S. Ohio St. Salina, Kansas 67401 600596.20000\DEVELOPMENT PLAN v.1 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 (4) Description of Housing and Public Facilities Projects. The housing and public facilities projects that are proposed to be constructed include the following: Housing Facilities The housing facilities consist of constructing forty-two (42) single family homes (approximately 1,100 square feet each) with 2 or 3 bedrooms depending on the unit type, 1-2.5 bathrooms, and a one-car garage; and sixty-six (66) townhome units (thirty-three (33) structures) (approximately 950-1100 square feet each) with 2 or 3 bedrooms depending on the unit type, 1-2.5 bathrooms, and a one-car garage. Public Facilities Public facilities and public improvements will include construction of Infrastructure Improvements located within the boundaries of the District, and all related infrastructure, including but not limited to parking, water, sanitary sewer, storm sewer, gas, and electric improvements. Infrastructure improvements may be constructed prior to or concurrently with the housing facilities in the project. A copy of the Site Plan is attached as Exhibit B to this Development Plan. (5) Developer’s Information. The names, addresses and specific interests in the real estate in the District of the developers responsible for development of the housing and public facilities is: Owner of Real Property: Quail Meadow Estates, Inc. 2601 S. Ohio St. Salina, Kansas 67401 South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 Developer: South View Estates, LLC PO Box 452 1334A North Ohio Salina, Kansas 67401 (6) Contractual Assurances. The Governing Body entered into a Development Agreement, dated August 30, 2021 (the “Development Agreement”), with South View Estates, LLC, a Kansas limited liability company engaged in the business of development with its principal office located at 1334A North Ohio, Salina, Kansas 67401 (the “Developer”). The Development Agreement, as supplemented and amended, includes the project construction schedule, a description of projects to be constructed, financial obligations of the developer, and financial and administrative support from the City. The Development Agreement includes contractual assurances, if any, the Governing Body has received from the Developer guaranteeing the financial feasibility of specific housing tax incentive projects in the proposed district. A copy of the Development Agreement is attached as Exhibit C to this Development Plan. 600596.20000\DEVELOPMENT PLAN v.1 (7) Comprehensive Analysis of Feasibility. A comprehensive analysis was conducted to determine whether the public benefits derived from the District will exceed the costs and that the income from the District, together with other sources of revenue, would be sufficient to pay for the public improvements to be undertaken in the District. A copy of the analysis is attached as Exhibit D to this Development Plan. The analysis estimates the property tax revenues that will be generated from the District, less existing property taxes, to determine the revenue stream available to support reimbursement to the Developer for all or a portion of the costs of financing the public infrastructure. The estimates indicate that the revenue realized from the project would be adequate to pay the eligible costs. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20000\DEVELOPMENT PLAN v.1 A-1 EXHIBIT A DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT LEGAL DESCRIPTION AND MAP OF THE DISTRICT Lots 1 through 26, Block 2, Lots 1-10, Block 3, Lots 1 through 26, Block 4, and Lots 1 through 13, Block 5, in the Ryan Addition to the City of Salina, Saline, County, Kansas. 600596.20000\DEVELOPMENT PLAN v.1 A-2 Ryan Addition 18 'umSt I I ' I I I f l I I I J l l [----·-·-·~ 1 inch = -400 ·feet 600596.20000\DEVELOPMENT PLAN v.1 B-1 EXHIBIT B DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT SITE PLAN 600596.20000\DEVELOPMENT PLAN v.1 C-1 EXHIBIT C DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT DEVELOPMENT AGREEMENT 600596.20000\DEVELOPMENT PLAN v.1 D-1 EXHIBIT D DEVELOPMENT PLAN SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT COMPREHENSIVE FINANCIAL FEASIBILITY ANALYSIS South View Estates RHIDEstimated Eligible Expenses $6,840,687Estimated RHID Increment $6,550,855Estimated Unreimbursed Developer Funds $289,832 AggregateProperty TaxCurrent 2020/2021 on Base PerAssessed Value Mill Levy Value lotLand 708Building 0140.333Total 708 140.333 $99.36Est. Less Less Less Property AnnualNo. of Estimated Estimated Property Mill Property Taxes on State State levy for USD Tax Less Increment Annual Year 1 23456 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25TotalUnitsValue (per unit)Value (Total)ClassLevyTaxBase1.5 Mills20 MillsAmount Not EligibleTaxCumulative2021/22 2022/23 2023/24 2024/25 2025/2642 Single family houses$225,000.00 $9,450,000.00 11.50% 140.333 $152,506.89 $42.70 $1,630.13 $21,735.00 $129,099 $129,099 $129,099 $0 $0.00 $21,517 $92,214 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099 $129,099$129,099 $129,099 $129,099 $129,099 $2,824,81166 Townhome Units $190,000.00 $12,540,000.00 11.50% 140.333 $202,374.22 $56.66 $2,163.15 $28,842.00 $171,312 $171,312 $300,411 $0 $0.00 $14,276 $114,208 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $171,312 $3,726,045Estimated annual total$0 $0 $35,793 $206,422 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411 $300,411$6,550,855Estimated cumulative total$0 $0 $35,793 $242,214 $542,626 $843,037 $1,143,449 $1,443,860 $1,744,272 $2,044,683 $2,345,095 $2,645,506 $2,945,918 $3,246,329 $3,546,741 $3,847,152 $4,147,564 $4,447,975 $4,748,387 $5,048,798 $5,349,210 $5,649,621 $5,950,032 $6,250,444 $6,550,855Assumptions:14 single family houses and 11 townhome units completed by June 2023 (appraised Jan 2024 for taxes collected in 2024/2025, assumed taxes levied on half value for 2023/2024 since entire project not completed in time for Jan 2023 appraisal and full value thereafter)16 additional single family homes and 33 additional townhome units completed by December 2023 (appraised Jan 2024 for taxes collected 2024/2025)final 12 single family houses and 22 townhome units completed by December 2024 (appraised Jan 2025 for taxes collected in 2025/2026)Constant AV per unit11.5% property class for assessed valueConstant mill levy based on 2020/21 levyDistrict created October 2021 Gilmore & Bell, P.C. 10/08/2021 FUNDING CONTRACT RELATING TO THE SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT THIS FUNDING CONTRACT (“Contract”) dated as of August 18, 2021 (the “Effective Date”), is made and entered into by and between the City of Salina, Kansas, a municipal corporation duly organized under the laws of the State of Kansas (the “City”) and Saline County, Kansas, a political subdivision duly organized under the laws of the State of Kansas (the “County”). The City and County are each a “Party” and together constitute the “Parties” hereto. RECITALS A. The City and the County each constitute a “municipality” as defined in K.S.A. 12-2908, as amended (the “Act”) and are authorized to enter into contracts to perform any governmental service, activity or undertaking which each contracting municipality is authorized by law to perform. B. The City has formed the South View Estates Rural Housing Incentive District (the “District”) pursuant to K.S.A. 12-5241 et seq., as amended (the “RHID Act”). C. The County is also authorized to form rural housing incentive districts pursuant to the RHID Act. D. Subject to the terms and provisions of the RHID Act, tax increment generated by property within a rural housing incentive district may be utilized to pay or reimburse the costs of certain eligible expenses (“Eligible Costs”). E. Tax increment generated within the District and paid from the Saline County Treasurer to the Treasurer of the City pursuant to K.S.A. 12-5250(b)(2)(A) (“RHID Funds”) will be utilized to pay or reimburse Eligible Costs pursuant to the terms of a certain Development Agreement (the “Development Agreement”) between the City and South View Estates, LLC, a Kansas limited liability company (the “Developer”), and the terms of this Contract. F. The City and the County desire to enter into this Contract to provide for the pro-rata reimbursement of eligible County expenses from RHID Funds. NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the sufficiency of which consideration is hereby acknowledged by each of the parties, the City and the County, with the due authorization and approval of their respective governing bodies, hereby agree as follows: Section 1. Term of Contract. The term of this Contract shall commence as of the Effective Date and, unless terminated earlier as provided in this Contract, expire on the earlier of: (i) the date all County Eligible Costs (as defined herein) have been reimbursed with RHID Funds, subject to the requirements and limitations of this Contract and the Development Agreement; or (ii) 25 years after the date of the City Ordinance creating the District. 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 2 Section 2. Financing of Internal Infrastructure Improvements. (a) Allocation of RHID Funds. (1) The City, in its sole discretion and at any time, from any source, may elect to fund a portion of the Eligible Costs of the electric, gas, water, sewer, storm sewer, and street improvements necessary for South View Estates Development and located within the boundaries of the District, including engineering costs, any costs of right-of-way and appurtenances related thereto, as set forth on the approved plat for South View Estates Development (the “Internal Infrastructure Improvements”) from available funds of the City. The City will be entitled to reimbursement of all Eligible Costs so paid by the City on a pro-rata basis from each distribution of RHID Funds. (2) The County, in its sole discretion and at any time, from any source, may elect to fund a portion of the Eligible Costs of the Internal Infrastructure Improvements from available funds of the County. The County will be entitled to reimbursement of all Eligible Costs so paid by the County (the “County RHID Expenses”) regardless of where said funding originates on a pro- rata basis from each distribution of RHID Funds in accordance with the terms of this Contract. (3) Unless funded by the City or the County as described in Section 2(a)(1) or (2) hereof, all costs of the Internal Infrastructure Improvements will be paid in cash, or financed, by Developer. The City will use RHID Funds to reimburse the Developer on a pro-rata basis from each distribution of RHID Funds for all or a portion of the Eligible Costs paid by the Developer, subject to the terms of the Development Agreement. (4) For clarity, and by way of example only, pro-rata distributions of RHID Funds between the City, the County, and the Developer will be calculated using the following methodology: Eligible Costs Paid Allocated pro-rata portion of RHID Funds City $ 500,000 6.25% County 1,000,000 12.50% Developer 6,500,000 81.25% Total $8,000,000 100.00% The allocation of RHID Funds will be recalculated when necessitated by a change in submitted Eligible Costs by a party or a reduction in allowable Developer eligible expenses pursuant to the Development Agreement. Recalculations of the RHID Funds allocation will apply on a prospective basis only. (b) Preliminary Request for Reimbursement. Prior to the expenditure of any County funds, the County will submit to the City a preliminary unsigned draft Request for Reimbursement (“Preliminary Request”) in the form attached hereto as Exhibit A setting forth the amount for which reimbursement is sought and an itemized listing of the related Internal Infrastructure Improvements. Each Preliminary Request will be accompanied by such bills, contracts, invoices, or other evidence reasonably satisfactory to the City to document that such expenditures will be for Eligible Costs. (c) City Approval of Preliminary Request for Reimbursement. The City will have 30 calendar days after receipt of any Preliminary Request to review and respond by written notice to the County. If the submitted documentation demonstrates that the Preliminary Request includes only Eligible Costs, then the 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 3 City will approve the Preliminary Request. In the event the City does not respond within such 30-day period, the Request for Reimbursement will be deemed approved. (d) County Certification of Payment and Request for Reimbursement. After the County receives City approval of a Preliminary Request, the County will deliver to the City an executed copy of the Preliminary Request along with documentation that payment has been made by the County for such Eligible Costs (together a “Request for Reimbursement”) and the City will promptly reimburse the County for the County RHID Expenses pursuant to the terms of this Contract if sufficient pro-rata RHID Funds are available, and quarterly as funds become available in the event that pro-rata RHID Funds in the City’s possession are at that time insufficient. Reimbursements will cease upon the earlier of (a) such time as the County RHID Expenses have been fully reimbursed to the County, or (b) 25 years after the date of the establishment of the District. The City will have no liability and/or responsibility to the County for any payment greater than the pro-rata amounts received from the Saline County Treasurer pursuant to the provisions of K.S.A. 12-5250(b)(2)(A) as a result of the creation of the District. Section 3. Purpose of Agreement. The purpose of this Agreement is to provide the County with the opportunity to participate in the initial funding of the Internal Infrastructure Improvements and to allow for reimbursement through tax increment created in the District pursuant to the RHID Act. Section 4. County’s Right to Terminate. The County may elect to terminate this Contract at any time by written notice to the City. All obligations of the City to reimburse the County for County RHID Expenses will terminate upon receipt of the notice. Section 5. Construction and Enforcement. This Contract shall be construed and enforced in accordance with the laws of the State. Wherever in this Contract it is provided that either Party shall or will make any payment or perform or refrain from performing any act or obligation, each such provision shall, even though not so expressed, be construed as an express covenant to make such payment or to perform, or not to perform, as the case may be, such act or obligation. Section 6. Consents and Approvals; Notices. Whenever in this Contract it is provided that either Party must consent or give its approval for any action, or to refrain from any actions, such Party shall not unreasonably withhold such consent or approval. Any notice required or permitted to be given pursuant to this Contract shall be in writing and shall be hand delivered, sent by United States mail, postage prepaid, or electronic means to the Parties at the following addresses or to such other address as a Party may hereafter specify in writing: To the City: With a copy to: City of Salina, Kansas Clark, Mize & Linville, Chtd. Attention: City Manager Attn: Greg A. Bengtson, Esq. 300 W. Ash Street 129 S. 8th Street Salina, Kansas 67402 Salina, Kansas 67402 Email: mike.schrage@salina.org Email: gabengtson@cml-law.com Phone: (785) 309-5700 Phone: (785) 823-6325 600596.20000\CITY COUNTY FUNDING CONTRACT V.2 4 To the County: With a copy to: Saline County, Kansas Michael A. Montoya, P.A. Attention: County Administrator Attn: Michael A. Montoya 300 W. Ash Street, Room 217 256 S. Santa Fe Ave. Salina, Kansas 67402 Salina, Kansas 67401 Email: phillip.smith-hanes@saline.org Email: admin@montoyalaw.kscoxmail.com Phone: (785) 309-5810 Phone: (785) 827-5505 Section 7. Invalidity of Provisions of Contract. If, for any reason, any provision hereof shall be determined to be invalid or unenforceable, the validity and effect of the other provisions hereof shall not be affected thereby. Section 8. Covenants Binding on Successors and Assigns. The covenants, agreements and conditions herein contained shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Section 9. Section Headings. The section headings are for the convenience of reference only and shall not be treated as a part of this Contract or as affecting the true meaning of the provisions hereof. Section 10. Execution of Counterparts. This Contract may be executed simultaneously in multiple counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. Section 11. Electronic Transactions. The transactions described in this Contract may be conducted, and documents related to the Contract may be sent, received, executed, and stored, by electronic means or transmissions. Copies, telecopies, electronic files and other reproductions of original executed documents (or documents executed by electronic means or transmissions) shall be deemed to be authentic and valid counterparts of such documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law. Section 12. Amendments. This Contract may be amended, changed or modified only by an agreement in writing executed by both Parties. [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] .. IN WITNESS WHEREOF, the City and the County have duly executed this Contract pursuant to all requisite authorizations as of the date first above written. CITY OF SALINA, KANSAS ATTEST: APPROVED AS TO FORM: 600596.20000\CJTY COUNTY FUNDING CONTRACT (City Signature page to Funding Contract) SALINE COUNTY, KANSAS ATTEST: _(/ '~/(_~ ti County Clerk APPROVED AS TO FORM: County Counselor 600596.20000\CITY COUNTY FUNDING CONTRACT (County Signature page to Funding Contract) 600596.20000\CITY COUNTY FUNDING CONTRACT A-1 EXHIBIT A REQUEST FOR REIMBURSEMENT City of Salina, Kansas Attention: City Manager You are hereby requested by the undersigned, an authorized representative of Saline County, Kansas (the “County”) to disburse funds held by the City in the special revenue fund created pursuant the authority in K.S.A. 12-5250(b)(2)(A) for the South View Estates Development project (the “Fund”) and set forth in the Funding Contract between the City of Salina, Kansas and the County for the South View Estates Rural Housing Incentive District dated August 30, 2021 (the “Contract”) to reimburse expenditures made by the County for Eligible Costs (as defined in the Contract) as described on and in the amounts set forth in the Schedules attached to this invoice and incorporated herein by this reference (the “Schedules”). I hereby certify that the amounts requested in the attached Schedules have been paid by the County in payment of costs that are Eligible Costs, as defined in the Contract. I further certify that no part of the amounts set forth in the Schedules have been the basis for any previous withdrawal of any moneys from the Fund. Attached to the Schedules is a description of the nature of the item billed, a reference to which type of Eligible Cost the expense applies to under the Rural Housing Incentive Act and the Contract, and a copy of the contract, invoice or other billing for the Eligible Costs for which the County seeks reimbursement, along with copies of checks, evidence of wire transfers or other evidence of payment by the County of such Eligible Costs and hereby certify that such copies are true and accurate copies of the original documents. The County acknowledges that any reimbursements will be made in accordance with the Contract. Dated: ____________________, 20____ SALINE COUNTY, KANSAS By: County Administrator Accepted and Approved: By: City Manager 600596.20000\CITY COUNTY FUNDING CONTRACT A-2 Invoice Reimbursement Schedule Pursuant to Section 2 of the Contract, I hereby request reimbursement of the amounts specified below and I certify that the description of the purchase or nature of each payment is reasonable, accurate and complete and that County has previously paid such Eligible Costs: Payee Name Date of Payment Purpose or Nature of Payment Amount 1. $ 2. $ 3. $ 4. $ 5. $ 6. $ Total Expenses $____________________ County Signature Note: Copies of bills, contracts, checks and other evidence reflecting the amounts shown above (as described in Section 2 of the Contract) should be attached to this Schedule. 600596.20000\FUNDING AGREEMENT v.1 1 FUNDING AGREEMENT (SOUTH VIEW ESTATES RURAL HOUSING INCENTIVE DISTRICT) This Funding Agreement (“Agreement”) is entered into as of August 30, 2021, between the CITY OF SALINA, KANSAS (“City”), and SOUTH VIEW ESTATES, LLC (“Developer”). RECITALS WHEREAS, the City is a political subdivision organized and existing under the laws of the State of Kansas (the “State”); and WHEREAS, the Developer is a Kansas limited liability company engaged in the business of development with its principal office located at 1334A North Ohio, Salina, Kansas 67401, and the Developer and the City anticipate negotiating and entering into a Development Plan and Agreement, whereby the Developer will develop real property by constructing approximately 42 single family houses, 66 townhome units, and all related internal infrastructure improvements in one or more phases at a proposed residential development consisting of approximately 24 acres generally located southeast of the intersection of Ohio Street and Schilling Road (the “Project”); and WHEREAS, Developer has acquired the real property where the Project (in one or more phases) will be developed and has requested the City create a rural housing incentive district pursuant to K.S.A. 12- 5241 et seq. to finance all or a portion of the public infrastructure to serve the Project (the “Request”); and WHEREAS, the City has requested that the Developer negotiate and enter into a Development Agreement for the Project in exchange for the City performing certain services set forth herein; and WHEREAS, the City does not have a source of funds to finance costs incurred by the City for legal, financial, planning, inspection, and other services, or for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the Developer to review, evaluate, process, and inspect the Project and the Request (collectively, the “Charges”); and WHEREAS, the parties desire to enter into this Agreement to provide for the funding of consultants used by the City to review, evaluate, process and inspect the Project and the Request and to provide an inducement to the Developer to assume such costs. AGREEMENT 1. Services to be Performed by the City. The City shall: A. Consult with the Developer on the Project in a timely manner and prepare or consult with the Developer on the preparation of and consider the Request in accordance with the provisions of State law, give all notices in a timely manner, make all legal publications and hold hearings as required by State law; B. Provide necessary staff, legal, financial, and planning assistance to prepare and present the Request to the City Commission and to prepare and present required resolutions and ordinances to the City Commission, including the use of outside counsel and consultants; C. If the City Commission approves the Request, to provide the necessary staff, legal, financial, planning and inspection assistance to prepare and negotiate a definitive agreement 600596.20000\FUNDING AGREEMENT v.1 2 between the City and the Developer for the implementation of the Request and the development of the Project (the “Development Agreement”); D. If a Development Agreement is entered into, provide the necessary staff, legal, financial, planning and inspection assistance to administer and carry out the terms of such Development Agreement. 2. Initial Deposit. In order to ensure the prompt and timely payment of the Charges, the Developer shall establish a fund in the initial amount of Fifteen Thousand Dollars ($15,000.00) (the “Deposit”) by paying such amount to the City contemporaneously with the execution of this Agreement. The City shall pay, in accordance with this Agreement, initial Charges from the Deposit, including the charges for preparation of this Agreement, and shall promptly submit an itemized statement therefor to the Developer to re-establish the Deposit so that there is always at least Ten Thousand Dollar ($10,000.00) cash balance available against which additional charges and payments may be applied on a current basis. The City shall submit monthly statements itemizing the Charges paid from the Deposit during the preceding month. 3. Additional Funding. A. The City shall submit to Developer an itemized statement for actual and reasonable expenses necessary to perform its obligations hereunder. Such statements shall be submitted on a monthly basis. The Developer shall pay the City the amounts set forth on such statements (the “Additional Funds”) within thirty (30) days of receipt thereof. If such funds are not so received, the City may draw upon the Deposit and if, after such draw, there remains an unpaid balance, such unpaid balance shall be subject to a penalty of one percent (1%) per month until paid, but in no event shall such penalty exceed twelve percent (12%) per annum, and City shall, upon thirty (30) days’ notice and failure to cure, be relieved of any and all obligations hereunder and under the Development Agreement until paid in full, or may terminate this Agreement pursuant to Section 5.A. Developer shall supply the Additional Funds in a timely manner so that City activities and assistance may continue without interruption. B. The City and the Developer agree that the Developer shall reimburse the City for the actual and reasonable expenses necessary to perform the City’s obligations hereunder including the services of Greg Bengtson and Gilmore & Bell, P.C. as legal counsel for the City, and such other special consultants and advisors as the City reasonably deems necessary to perform its obligations under this Agreement. 4. Disbursement of Funds. The City shall disburse the Deposit and Additional Funds for reimbursement of costs to the City on or before the thirtieth (30th) day of each month, and for consulting fees and the payment of all out-of-pocket expenses incurred by the City in connection with the performance of its obligations under this Agreement as payment for such expenses become due. Upon reasonable notice, the City shall make its records available for inspection by Developer with respect to such disbursements. 5. Termination. A. In the event the Developer fails to perform any of its obligations herein, the City may terminate this Agreement, and any other agreement between the parties, at its sole discretion if the Developer fails to cure the default within thirty (30) days after written notice to the Developer of the default. Termination by the City for reasons of an uncured default by Developer shall also terminate any duties and obligations of the City with respect to the Development Agreement, any other agreements between the parties, and the processing of the Developer’s Request. Upon such termination, the City shall retain the Deposit and Additional Funds, if any, necessary to reimburse 600596.20000\FUNDING AGREEMENT v.1 3 the City for all reasonable expenses incurred under this Agreement to the date of termination and any monies due and owing to the City pursuant to any other agreements between the parties. B. The parties hereto acknowledge that the Developer may determine to abandon the Project. Upon notice of abandonment by the Developer, this Agreement shall terminate and the City may terminate any other agreements between the parties and shall retain the Deposit and Additional Funds, if any, necessary to reimburse the City for all expenses incurred under this Agreement to the date of termination and any monies due and owing to the City pursuant to any other agreements between the parties. Any amounts remaining from the Deposit and the Additional Funds after all amounts have either been paid as directed by, or reimbursed to, the City shall be returned to the Developer. C. In the event the Deposit and Additional Funds are insufficient to reimburse the City for the outstanding expenses of the City payable hereunder, the Developer shall reimburse the City as set forth in Section 3. Any amounts remaining from the Deposit and the Additional Funds after all amounts have either been paid as directed by, or reimbursed to, the City shall be returned to the Developer. 6. Notice. Any notice, approval, request or consent required by or asked to be given under this Agreement shall be deemed to be given if in writing and mailed by United States mail, postage prepaid, or delivered by hand, and addressed as follows: To the City: To the Developer: City of Salina, Kansas South View Estates, LLC Attention: City Manager Attn: Manager 300 W. Ash Street P.O. Box 542 Salina, Kansas 67401 1334A North Ohio Salina, Kansas 67401 With a copy to: Clark, Mize & Linville, Chtd. Attn: Greg A. Bengtson, Esq. 129 S. 8th Street Salina, Kansas 67402 Each party may specify that notice be addressed to any other person or address by giving to the other party ten (10) days prior written notice thereof. 7. Governing Law. This Agreement shall be governed by and construed according to the laws of the State of Kansas. 8. Counterparts. This Agreement may be executed in multiple originals or counterparts, each of which will be an original and when all of the parties to this Agreement have signed at least one (1) copy, such copies will constitute a fully executed and binding Agreement. ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on NDRmkr: 5 , 2021, by Melissa Rose Hodges, Mayor, and Jo Vanna A. RutheITord, Clerk, of the City of S~ansas, a Kansas municipal coTJ)oration. ,'ll'i'iiJi:, ASIILEYRUSSELL ,, ~I~ ~.h (SEAL) {~~J My=~:="' , A;sh;Wcy~sse I{ Typed or Pr• Name of Notary Public M)' Appointment Expires: (½,,::n. Qrn~ 600596.20000\FUNDING AGREEMENT (Signature Page to Funding Agreement) SOUTH VIEW ESTATES, By: Name: Title: ACKNOWLEDGMENT STATE OF KANSAS ) ) SS: COUNTY OF SALINE ) This instrument was acknowledged before me on JO/ d-8 , 2021 , by Tod Roberg, a duly authorized Member of South View Estates, LLC, a Kansas limited liability company, on behalf of said limited liability company. (SEAL) fL LOUlDE /\. CF~EAMER JSt:!'it§l Notary P1;i:;i:c -State of Kansas My Appl Expires oil 8/ d~ My Appointment Expires: 600596.20000\FUNDING AGREEMENT Typed or Printed Name of Notary Public (Signature Page to Funding Agreement) CITY CLERK'S CERTIFICATE OF TRANSMITTAL AND NO NULLIFICATION SOUTH VIEW EST ATES RURAL HOUSING INCENTIVE DISTRICT Gilmore & Bell, P.C. 11/08/2021 I, JoVonna Rutherford, City Clerk for the City of Salina, Kansas (the "City"), do hereby certify the following, pursuant to K.S.A. 12-5251 et seq. (the "Act"): • The City Commission adopted Resolution No. 21-7985 on September 13, 2021, and the City sent certified copies thereof on October 12, 2021, for delivery to the Board of County Commissioners of Saline County, Kansas (the "County"), the Board of Education of Unified School District No. 305, Saline County, Kansas (Salina) (the "School District"), and the Planning Commission of the City of Salina, Kansas, and the Resolution was published in the Salina Journal on October 5, 2021. • The City Commission held a public hearing on October 18, 2021, relating to the South View Estates Rural Housing Incentive District (the "South View Estates RHID"), and passed Ordinance No. 21-11090 (the "Ordinance") on the same date, which adopted the Development Plan for the South View Estates RHID (the "Development Plan"). • The Ordinance was published in the Salina Journal on October 22, 2021. • To the best of my knowledge, neither the Board of Education of the School District nor the Board of County Commissioners of the County adopted a resolution determining that the proposed South View Estates RHID will have an adverse effect on the School District or the County, respectively, on or before November 17, 2021. • On December 13, 2021, a copy of the description of the land within the district, a copy of the Ordinance, and a map of South View Estates RHID indicating the boundaries were transmitted to: (1) the Board of Education of the School District; (2) the Board of County Commissioners of the County; (3) the County Clerk for the County; (4) the County Treasurer for the County; and (5) the County Appraiser for the County. Dated: December 13, 2021 600596.20000\CERTIFICATE OF TRANSMITTAL AND NO NULLIFICATION v.l