South View Estates Funding Agreement 08-30-2021FUNDING 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 EST ATES, 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 KS.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. I
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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. l
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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:
City of Salina, Kansas
Attention: City Manager
300 W. Ash Street
Salina, Kansas 67401
With a copy to:
Clark, Mize & Linville, Chtd.
Attn: Greg A. Bengtson, Esq.
129 S. 8th Street
Salina, Kansas 67402
To the Developer:
South View Estates, LLC
Attn: Manager
P.O. Box 542
1334A North Ohio
Salina, Kansas 67401
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.
600596.20000\FUNDING AGREEMENT v.I
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to be executed by their duly authorized
ACKNOWLEDGMENT
STATE OF KANSAS )
) SS:
COUNTY OF SALINE )
This instrument was acknowledged before me on Af Drerobr= 5 . 2021, by Melissa Rose Hodges,
Mayor, and JoVonna A. Rutherford, Clerk, of the City of Salin Kansas, a Kansas municipal corporation.
(SEAL)
ASHLEY RUSSELL
My Appointment Expires
August 30, 2022
My Appointment Expires:
~ ,:o, Qrn~
600596.20000\FUNDlNG 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 Jc)/ 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)
f\ LOUI SE /\. CREAMER ~ Notart P(;t;l:c -State of Kansas
My Appl. Expires Q//8/ ct~
My Appointment Expires:
5II31d3
600596.20000\FUNDING AGREEMENT
N tary Public
LDU:1 sc. A . Cre.Arf'U:
Typed or Printed Name of Notary Public
(Signature Page to Funding Agreement)