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17-7439 Dissolve SEDIC, Continue Economic Development Fund & Address SCEDO Advisory Role RESOLUTION NUMBER 17-7439 A RESOLUTION DISSOLVING THE SALINA ECONOMIC DEVELOPMENT INCENTIVES COUNCIL (SEDIC) ESTABLISHED AND SUSTAINED PURSUANT TO RESOLUTIONS NOS. 05-6220, 09-6608, AND 10-6764; EXPRESSING THE INTENT OF THE GOVERNING BODY REGARDING THE CONTINUATION OF AN ECONOMIC DEVELOPMENT FUND; AND ADDRESSING THE ADVISORY ROLE OF THE SALINA N COMMUNITY ECONOMIC DEVELOPMENT ORGANIZATION (SCEDO). WHEREAS, in 2004, Salina voters approved a special one-quarter cent (1/4 cent) sales tax and 12.5% of the revenues from the special sales tax were restricted to the establishment of an economic development fund managed by the City of Salina; and WHEREAS, in October 2004, the City Commission unanimously approved an initiative proposed by the Salina Airport Authority and the Salina Area Chamber of Commerce to provide incentives to new and existing manufacturing and primary businesses; and WHEREAS, the City Commission formed an ad hoc committee led by the Mayor and Vice Mayor to further explore the protocol for expending the economic development funds, which then resulted in the establishment and utilization of a six member Salina Economic Development Incentives Council (SEDIC) pursuant to Resolutions Nos. 05-6220, 09-6608, and 10-6764; and WHEREAS, on November 4, 2008, Salina voters approved a substitute 0.40 percent(0.40%) special purpose sales tax effective April 1, 2009, for a number of purposes, including continuation of an economic development fund managed by the City of Salina; and WHEREAS, on May 10, 2016, Salina voters repealed the 0.40 percent(0.40%) special purpose sales tax and approved a substitute 0.75 percent (0.75%) general purpose city-wide retailers' sales tax which was levied pursuant to Ordinance Number 16-10836 to commence October 1, 2016 and WHEREAS, on November 9, 2015, the City Commission approved Resolution No. 15-7296, authorizing the City to enter into an agreement with the Salina Airport Authority, Salina Area Chamber of Commerce and Saline County to create the Salina Community Economic Development Organization, Inc. (SCEDO); and WHEREAS, it is the City Commission's intent to budget not less than 3.9% of the revenues from the 0.75% general-purpose city-wide retailers' sales tax levied pursuant to Ordinance No. 16-10836 for continuation of an economic development fund managed by the City; and WHEREAS, it is the City Commission's further intent to dissolve the Salina Economic Development Incentives Council (SEDIC) and utilize the Salina Community Economic Development Organization, Inc. (SCEDO) board of directors and personnel for consultation regarding economic development matters. SO NOW THEREFORE, BE IT RESOLVED by the governing body of the City of Salina, Kansas: Section 1. Dissolution of Salina Economic Development Incentives Council. That the Salina Economic Development Incentives Council (SEDIC), as established and sustained pursuant to Resolutions Nos. 05-6220, 09-6608 and 10-6764, is hereby dissolved. Section 2. Continuation of an economic development fund. The City Commission shall continue to budget and utilize an economic development fund managed by the City. Subject to annual budgetary authorization and a maximum fund balance as established by the City Commission, it is the intent and recommendation of the City Commission that it and future city commissions annually appropriate not less than 3.9% of the revenues from the 0.75% general purpose city-wide retailers' sales tax levied pursuant to Ordinance Number 16-10836 into the economic development fund, commencing in 2017, with subsequent funding to increase annually at a rate equal to the budgeted, annual percentage rate growth for the general purpose retailers' sales tax. Section 3. Coordination with the SCEDO. It is the intent of the City to coordinate with and solicit y consultation from the SCEDO regarding economic development matters, with the expectation that the SCEDO will: (a) Recommend economic development guidelines, policies and processes to the City Commission; (b) Review applications and make specific recommendations to the City Commission regarding grants from the sales tax for incentives to new and existing manufacturers and primary businesses for the purpose of job retention and to entice them to relocate or expand capital and/or human investment in Salina/Saline County in order to provide a stimulus to the local economy; (c) Recommend and review all research, analysis and feasibility studies related to recruitment, marketing, development demand and site evaluations; (d) Recommend other proposed uses for economic development special sales tax funds necessary to prepare Salina and Saline County for prospective business development; (e) Make recommendations to the City Commission and/or other local government bodies regarding other public economic development incentives; and (f) Provide regular reports to the City Commission, County Commission and/or other local government bodies regarding economic development projects receiving incentives. (g) Make recommendations to the City Commission and/or local government bodies regarding other public economic development incentives; and (h) Provide regular reports to the City Commission and/or other local government bodies regarding economic development projects receiving incentives. Section 4. Miscellaneous. Miscellaneous considerations regarding the administration of the economic development fund are as follows: (a) For purposes of economic development incentives grants, "primary business" includes: manufacturing, processing, interstate distribution, research, aviation, aerospace, medical, bioscience or service sector businesses which derive a minimum of 50% of revenue from sources outside Saline County; (b) Sales tax grants are to focus primarily on human capital investment in training, business relocation, facility acquisition, and capital investment in plant, property, equipment and infrastructure. Also, it is important to ensure that existing primary businesses remain eligible for grant funding; and (c) A program performance review is recommended to occur annually. This will allow an opportunity to make any adjustments deemed necessary for the remaining term of the special sales tax funding. ® Section 5. Effective Date. This resolution shall take effect from and after its adoption. ® Adopted by the Board of Commissioners and signed by the Mayor this 27th day of Feb .ry, 2017. 4111 aye J' ra rd, Mayor [SEAL] g ATTEST: Shandi Wicks, CMC, City Clerk I I