South View Estates Funding Contract with Saline County 08-18-2021FUNDING CONTRACT
RELATING TO THE
Gilmore & Bell, P.C.
10/08/2021
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 KS.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 KS.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
RHlD Act.
D. Subject to the terms and provisions of the RH1D 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 KS.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 RHlD 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 RH1D 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
Section 2. Financing of Internal Infrastructure Improvements.
(a) Allocation of R.HID 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
ofRHID 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)(l) 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:
City
County
Developer
Total
Eligible Costs Paid
$ 500,000
1,000,000
6,500,000
$8,000,000
Allocated pro-rata portion
o(RHID Funds
6.25%
12.50%
81.25%
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 3 0 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
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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 ofK.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:
City of Salina, Kansas
Attention: City Manager
300 W. Ash Street
Salina, Kansas 67402
Email: mike.schrage@salina.org
Phone: (785) 309-5700
600596.20000\CITY COUNTY FUNDING CONTRACT V.2
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With a copy to:
Clark, Mize & Linville, Chtd.
Attn: Greg A. Bengtson, Esq.
129 S. gth Street
Salina, Kansas 67402
Email: gabengtson@cml-l aw.com
Phone:(785)823-6325
L
To the County:
Saline County, Kansas
Attention: County Administrator
300 W. Ash Street, Room 217
Salina, Kansas 67402
Email: phillip.smith-hanes@saline.org
Phone: (785) 309-5810
With a copy to:
Michael A. Montoya, P.A.
Attn: Michael A. Montoya
256 S. Santa Fe Ave.
Salina, Kansas 67401
Email: admin@montoyalaw.kscoxmail.com
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.
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600596.20000\CITY COUNTY FUNDING CONTRACT V.2
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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
By:._~~k'Yl_V/.'--''l'/.::..;_JW?.;::_;,. ~"1_l~_k-'-r-_,_ __ _
Mayo-;l..J
APPROVED AS TO FORM:
600596.20000\CJTY COUNTY FUNDING CONTRACT
(City Signature page to Funding Contract)
SALINE COUNTY, KANSAS
ATTEST: g
~l!ws
APPROVED AS TO FORM:
County Counselor
600596.20000\CITY COUNTY FUNDING CONTRACT
(County Signature page to Funding Contract)
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) forthe 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:
City Manager
600596.20000\CITY COUNTY FUNDING CONTRACT
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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:
Pa ee Name Date of Pa ment Pur ose or Nature of Pa)'ment Amount
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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
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