G-2 IRB KASA Industrial Control
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LAW O""'CES
HAMPTON, ROYCE, ENGLEMAN & NELSON
t. S. HA"PTON
.JOHN O. ROYCE
HOWARD I!:NO~I!:"AN
C. STAN~EY NI!:~SON
.JACK N. STI!:WART
TO.. W. HA"PTON
W. DEAN OwENS
N. ROYCI!: NE~SON
SIDNI!:Y A.REITZ
DAVID D. ..OSHIER
.J. STAN SI!:XTON
NINTH "~OOR, UNITED BUI~DINO
BOX 207
SALINA, KANSAS 67401
(913/ eZ7-7ZSI
October 3, 1978
Board of City Commissioners
City-County Building
Salina, KS 67401
Re:
RASA Industrial Controls, Inc.
Dear Commissioners:
This will'confirm certain matters discussed
executive session on October 2, 1978.
/() - / ~ - -"
C.W. 8U"CH 1008".'045'
8.1. ~ITOWICH ('083"04"1
~"UI!: ..ovo::r ",.",.",..,
KASA Industrial Controls, Inc., a Kansas corporation with
its registered office at Salina, Kansas, has for approxi-
mately four and one-half years been engaged in the design
and manufacture of control panels, particularly for mater-
ials handling facilities such as grain elevators. KASA
presently has 22 employees.
RASA Industrial Controls, Inc. proposes to acquire certain
property located in the. South Industrial Area and promptly
proceed with the remodeling of the basement of the existing
office building, construction of a new manufacturing facility
and purchase of equipment for the new facility at a cost
which is anticipated will not exceed $280,000.00. Such
costs will be approximately as follows:
Acquisition of land and existing
office building in the South
Industrial Area
$122,000
Remodeling to finish the
basement of the existing
office building
5,000
Construction of new manufacturing.
facility
110,000
.Architect fees for design of
new facility
4,000
Equipment for new facility
30,000
Legal, accounting and other
bond related expenses
9,000
$280,000
Board of City Commissioners
October 3, 1978
Page 2
RASA Industrial Controls, Inc. respectfully requests that
the City of Salina, Kansas, authorize the issuance of indus-
trial revenue bonds in the amount of not more than $280,000.00
to be used only for the acquisition, remodeling, new con-
struction, equipment and related expenses set forth abovè,
in accordance with the provisions of the Kansas Industrial
Revenue Bond Act, K.S.A. 12-1740, to 12-1749, inclusive, as
amended. .
It is contemplated that RASA Industrial Controls, Inc. will
provide for a payment in lieu of taxes equal to the ad
valorem property taxes presently payable on the land and
existing improvements so that there shall be no erosion of
the existing tax base by reason of the issuance of the
industrial revenue bonds. The land to be acquired by RASA
is now assessed together with other land, however the pro-
rated assessed value of the land to be acquired by KASA
(based on square footage) ~s $1,143.00; the assessed value
of the improvements to be acquired by KASA is $5,800.00;
making the present assessed valuation of land and improve-
ments to be acquired by RASA, $6,943.00.
RASA Industrial Controls, Inc. will arrange for the private
placement of the industrial revenue bonds with banks or
other financial institutions and such banks or other finan-
cial institutions will acquire the bonds solely for invest-
ment purposes and not for resale or further distribution.
It is not contemplated that the bonds will be offered for
sale in a public offering, either initially or at any sub-
sequent time, without obtaining the prior written consent of
the City. The bond purchasers will furnish the City with a
written waiver of any investigation by the City as to the
financial statement of KASA Industrial Controls, Inc., and a
written release of the City and its officials and employees
of all liabilities in regard to the issuance and sale of' the
bonds.
If you approve the issuance of the industrial revenue bonds
to finance this acquisition, remodeling, new construction
and equipment, then we would appreciate your adopting an
appropriate resolution declaring your intent to authorize
the issuance of industrial revenue bonds for such purposes.
We respectfully request that such resolution be adopted by
Board of City Commissioners
October 3, 1978
Page 3
the City Commission at its meeting to be held on October 16,
1978, and that the consideration of such resolution be
placed on the public agenda for that meeting.
If you have any questions concerning this request, please
advise.
Very truly yours,
HAMPTON, ROYCE, ENGLEMAN & NELSON
BY: IJ ~ ({l,~
W. Dean Owens/sb
cc:
Mr. L. O. Bengtson
City Attorney
114 East Iron Avenue
Salina, KS 67401
cc:
Mr. Karl R. Stutterheim, President
RASA Industrial Con~rols, Inc.
P.O. Box 85
Sålina, KS 67401