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01-26-2004 MinutesCommission CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS January 26, 2004 4:00 p.m. The City Commission convened at 2:30 p.m. in a Study Session for a North Ohio Overpass Major Project Report. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City -County Building. A roll call was taken followed by the Pledge of Allegiance and a moment of silence. There were present: Mayor Alan E. Jilka, Chairman presiding Commissioner Deborah P. Divine Commissioner Donnie D. Marrs Commissioner Monte D. Shadwick Commissioner Paul G. Webb comprising a quorum of the Board, also present: Dennis M. Kissinger, City Manager Greg Bengtson, City Attorney Lieu Ann Elsey, City Clerk Absent: None CITIZEN FORUM None. AWARDS - PROCLAMATIONS None. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME (5.1) Public hearing on the consideration of application for tax exemption submitted by Turbine Specialties. (5.1 a) Resolution No. 04-6035 exempting certain property owned by Cooper Cameron Corporation, dba Turbine Specialties, located at 1648 W. Magnolia Road from ad valorem taxation and providing certain terms and conditions. Commissioner Marrs excused himself from the quorum due to conflict of interest. Mayor Jilka opened the public hearing. Dean Andrew, Director of Planning and Community Development, explained that Turbine Specialties is requesting tax exemption for building additions and improvements in machinery and equipment for a relocation and expansion of their operation located at 1648 W. Magnolia Road. He continued to explain that assuming an estimated $2.7 million of capital improvements and the creation of five new jobs, the applicant would be eligible for a tax exemption of approximately 67 percent during years one through five and approximately 32 percent for six to ten years. Although the exact exemption would be determined upon actual capital expenditures and jobs added prior to project completion. Mr. Andrew then responded to Commissioner Divine regarding the application and the tax analysis. Roger Rochel, Manager of Turbine Specialties, commented on the request and that the exemption would give the company an opportunity to consolidate facilities and give them opportunities to grow. There being no further comments, the public hearing was closed. Commission Action # 04-6263 04-6264 04-62 Moved by Commissioner Divine, seconded by Commissioner Shadwick, to adopt Resolution No. 04-6035. Aye: (4). Nay: (0). Abstain: (1) Marrs. Motion carried. Commissioner Marrs returned. CONSENT AGENDA (6.1) Approve the minutes of January 12, 2004. (6.2) Approve the minutes of January 22, 2004. Moved by Commissioner Marrs, seconded by Commissioner Webb, tc) approve the consent agenda as presented. Aye: (5). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (7.1) Consider expressions of support for three Housing Credit Tax application being submitted to the Kansas Housing Resources Corporation. (7.1a) Resolution No. 04-6036 expressing support for an affordable multi -family senior housing project to located in the former Roosevelt -Lincoln :Middle School. Commissioner Shadwick excused himself from the quorum due to conflict of interest. Dean Andrew, Director of Planning and Community Development, explained that the Pioneer Group, Inc. has been selected by the USD #305 Board of Education as the redeveloper for the former Roosevelt -Lincoln Middle School. He continued to explain that it is the developer's plan to convert the school buildings into affordable independent living apartments for seniors. To assist with the financing of the building rehabilitation and conversion, the developer plans to submit an application to KHRC for housing tax credits. Mr. Andrew then noted that staff is recommending that a Planned Development District be created for the site that would address building setbacks and parking issues and require final site plan approval by the City Commission. A discussion followed between the City Commission, City Manager Dennis Kissinger, and Mr. Andrew pertaining to the necessary infrastructure and prioritizing the importance of the three applications. Moved by Commissioner Marrs, seconded by Commissioner Webb, to adopt Resolution No. 04-6036. Aye: (4). Nay: (0). Abstain: (1) Shadwick. Motion carried. Commissioner Shadwick returned. (7.1b) Resolution No. 04-6037 expressing support for additional affordable multi- family apartment units to be located on a 7.47 acre site of South Ohio Street. Dean Andrew, Director of Planning and Community Development, explained that Overland Ventures, L.L.C. is planning on submitting an application to KHRC for housing tax credits for Phase II of their housing project. Mr. Andrew continued to explain that: Phase H of the project would consist of the new construction of 48 rent assisted two and three bedroom apartments on the southern portion of the vacant tract directly south of the First Southern Baptist Church on South Ohio Street. Mr. Andrew also noted that any award of tax credits would be contingent on the construction and lease up of the 48 units in Phase I. Brett Johnson, representing Overland Ventures, L.L.C., commented on the project and the conditions of the award of tax credits. Mr. Johnson also commented on the competition that would be faced between his application and the application that would be submitted for the development of Magnolia Commons, he also noted that their application would not be in competition with the Roosevelt -Lincoln project because it was for senior housing. Mr. Johnson then responded to Commissioner Divine and Commissioner Marrs regarding the tax credit competition and building plans in Phase I and 11. Commission Action #i 04-6266 04-6267 04-62 Moved by Commissioner Divine, seconded by Commissioner Webb., to adopt Resolution No. 04-6037. Aye: (5). Nay: (0). Motion carried. (7.1 c) Consider approval of a resolution expressing support for the development of Magnolia Commons, a proposed multi -family housing project to be; located on the west side of I-135, south of Magnolia Road (Resolution to be numbered 04-6038). Dean Andrew, Director of Planning and Community Development, explained that the Nye Development, L.L.C. has submitted a 2004 application to the State of Kansas for housing tax credits for an affordable housing project. This project would consist of construction of 100 units of affordable tax credit housing for individuals and families, and 100 market rate apartments. Mr. Andrew continued to explain that although staff is supportive of efforts to develop additional good quality affordable multi -family housing, there are serious reservations about the; selection of the site, noting the lack of water and sanitary sewer infrastructure to serve the development. If the 15 -acres were the only tract developed initially, the remaining large portion of the utility infrastructure cost would have to be paid for and financed by the City for an unknown period of time until further development occurs. It has been the City's position since completion of the Magnolia/I-135 interchange that any development west of the interstate in the proposed area must have significant "critical mass" to justify the City's upfront infrastructure investment. City Manager Dennis Kissinger, Director of Public Works Shawn O'Leary, and Mr. Andrew then responded to questions from the City Commission regarding infrastructure, the resolution of conditional support, and the land use plan for the area. Gus Bogina, representing Nye Development, L.L.C., commented on their request, expressing the need of the infrastructure for development, and meeting the "critical mass". Moved by Commissioner Divine, seconded by Commissioner Shadwick, to adopt Resolution No. 04-6038 expressing conditional support for an affordable multi -family housing project to be located south of Magnolia Road on the west side of Interstate 135. Aye: (4). Nay: (1) Marrs. Motion carried. Moved by Commissioner Divine, seconded by Commissioner Webb, that the application submitted by Nye Development be prioritized second to the applications submitted by Overland Ventures, L.L.C., due to the City Commission expressing their conditional support for the project. Mr. Kissinger noted that staff would send a cover letter to the State of Kansas stating their position and express the importance of the senior housing project. Mr. Kissinger clarified that no motion was necessary. Motion withdrawn. ADMINISTRATION (8.1) Approval of the 2004 Special Parks and Recreation Fund Capital Improvement Program. Steve Snyder, Director of Parks and Recreation, explained that the Special Parks and Recreation Fund is generated from taxes collected on sales of alcohol at the local level. He then summarized the projects and purchases to include athletic field improvements, Lakewood Discovery Center projects, Centennial and Hawthorne Spray Ground improvements, improve playground surfacing, and additional building projects and equipment purchases. Mr. Snyder also responded to Mayor Jilka and Commissioner Webb pertaining to the Memorial Hall wall repairs and replacement of panic door hardware at the Friendship Center. Moved by Commissioner Shadwick, seconded by Commissioner Webb, to approve the 2004 Special Parks and Recreation Capital Improvement Program. Aye: (5). Nay: (0). Motion carried. (8.2) Approval of Supplemental Agreement No. 3 for final design services for the North Ninth Street Bridge Project No. 01-1323. Brad Johnson, City Engineer, explained the project, project funding, and the agreement. Commission Action # �o�=o�da�ea5a��a 04-6269 04-6270 A discussion followed between Commissioner Marrs, Director of Public Works Shawn O'Leary, and Mr. Johnson regarding aesthetic enhancements design costs. Troy Eisenbraun, Wilson & Company, responded to Commissioner Marrs' concerns regarding aesthetic enhancement design costs and previous agreements that included some of these costs. Moved by Commissioner Divine, seconded by Commissioner Shadwick, to approve Supplemental Agreement No. 3 for final design services for the North Ninth Street Bridge Project No. 01-1323 with Wilson & Company in the amount of $27,420. Aye: (4). Nay: (1) Marrs. Motion carried. (8.3) Resolution No. 04-6034 setting March 15, 2003 as a date for a public hearing to consider whether certain structures shall be condemned and ordered repaired or demolished. Michael Morgan, Deputy City Manager, outlined the process and read the properties listed. Mr. Morgan then responded to Commissioner Divine on the amount of time staff works with the property owners prior to being placed on this list. Moved by Commissioner Shadwick, seconded by Commissioner Divine, to adopt Resolution No. 04-6034. Aye: (5). Nay: (0). Motion carried. (8.4) Discussion by City Commission on potential sales tax renewal/extension issues. All Commissioners had a consensus pertaining to the special election on the election date of March 16, 2004, the rate of a quarter cent, and the rate imposed starting on July 1, 2004 through June 30, 2010. Mayor Jilka commented that it would be irresponsible not to request an extension of the sales tax, due to state cuts. Also to resist the urge to expand the responsibility of local government where not already involved. Mayor Jilka proposed revenue from the tax be divided with five percent going to the Smart Start Program, ten percent to economic development, 15 percent to debt service on the North Ohio Overpass project, and the remaining 70 percent to capital improvement projects. Commissioner Shadwick noted his concerns on funding ongoing programs and favors funding capital improvement projects. Dennis Kissinger, City Manager, then clarified at the request of Commissioner Shadwick that the Smart Start program would need approximately $85,000 annually for three years, with matching funds from the state. Commissioner Webb noted the City has postponed some capital improvement projects due to lack of state funds and the revenues should not fund ongoing programs. He does not wish to obligate future commissions. Commissioner Marrs concurred with Commissioners Shadwick and Webb on the ongoing program issue and felt that 87.5% should fund capital improvement projects and 12.5% to fund economic development. A discussion followed between Commissioner Shadwick and Commissioner Marrs regarding agencies approaching the Commission for funding. Commissioner Divine commented that there is a need for the majority of the revenue generated to go to capital improvement projects. She noted that the City needs a better way of handling program requests and setting up a formalized process. She also expressed hesitancy in provide funding for ongoing programs and suggested that 75 percent of the revenue would go to capital improvement projects and the other 25 percent would help fund worthy projects, including economic development. A discussion followed between Commissioner Marrs, Commissioner Divine, and Mayor Jilka regarding the percentage breakdown proposed by each and funding of other projects, setting up a reserve, requirements of spending funds, and allowance of Commission flexibility. Commission Action # 04-627 Dennis Kissinger, City Manager, commented on different models used by other cites to determine the use of the funds, that would allow flexibility and annual decision making. A discussion followed between Commissioner Marrs and Mr. Kissinger regarding the reduction of the mill levy, property tax stabilization, and debt service to the North Ohio Overpass prod ect. Commissioner Webb noted that needs have been identified and the public needs to be aware of what the revenue is going to fund. Commissioner Webb suggested that 87.5% of the revenue be used for capital improvement projects and 12.5% for economic development. Commissioner Divine commented on the need for economic development, and also the need for more flexibility on an annual basis to determine the non -capital improvement portion. Mr. Kissinger stated that other cities have a sales tax fund for a variety of uses such as capital improvement projects, human services, economic development, and parks and recreation. These funds are not necessarily locked into specific projects and issues. A discussion followed between members of the Commission regarding economic development and setting up an advisory committee. A discussion then followed between Mayor Jilka, Commissioner Divine, Commissioner Shadwick, and Mr. Kissinger regarding funding of the Smart Start program, and the possibility of creating an advisory committee to hear requests. Mr. Kissinger gave suggestions on the wording of the ballot. Commissioner Shadwick voiced his concerns regarding the use of the percentages and would like to see funds to be used by the City Commissions discretion. Mr. Kissinger suggested that staff could draft ordinances with the C'ommission's concerns and proposed breakdowns and give the Commission the opportunity to decide next week. (8.5) Request for Executive Session (personnel). Moved by Commissioner Shadwick, seconded by Commissioner Webb, to recess into executive session for 15 minutes to discuss a matter pertaining to non -elected city personnel for the reason that public discussion of the matter would violate the privacy rights of the non -elected city personnel involved; and reconvene at 6:04 p.m. taken. The City Commission recessed at 5:49 p.m. and reconvened at 6:04 p.m. No action was None. OTHER BUSINESS ADJOURNMENT 04-627 Moved by Commissioner Divine, seconded by Commissioner Webb, that the Regular Meeting of the Board of Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting adjourned at 6:04 p.m. (IL Alan E. Jilka, Ma; r [SEAL] qATEST: u Ann Elsey, City C rk