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02-26-2018 Minutes CITY OF SALINA, KANSAS REGULAR MEETING OF THE BOARD OF COMMISSIONERS February 26,2018 4:00 p.m. The City Commission convened at 2:30 p.m. for the River Renewal Project Update and at 3:45 p.m. for Citizens Forum. The Regular Meeting of the Board of Commissioners was called to order at 4:00 p.m. in Room 107, City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of silence. Those present and comprising a quorum: Vice-Mayor Trent Davis, M.D.,Joe Hay,Jr., Melissa Rose Hodges,and Mike Hoppock. Absent: Mayor Karl F. Ryan Also present: Jason Gage, City Manager; Michael Schrage, Deputy City Manager; Greg Bengtson, City Attorney; and Shandi Wicks,City Clerk. AWARDS AND PROCLAMATIONS None. CITIZENS FORUM Jon Blanchard, 1117 State Street, provided information on an email he sent to the City Commission a couple weeks ago regarding his open records request of letters between the City of Salina and the Salina Area Chamber of Commerce and asked the City Commission if they had violated the ethics policy and KOMA. He continued by providing information on the request and how it was handled. Joel Spurlock, 1827 Quincy, provided information on the incident that occurred recently at an elementary school with a gun and the need for changes by the City of Salina or the Board of Education to have metal detectors and officers at the schools. Jason Gage, City Manager, asked Mr. Spurlock for additional information regarding a disagreement between the City of Salina and USD No. 305. He continued to state the school board had the authority to address their concerns regarding the school buildings and the City of Salina would be willing to have those conversations if the school district would approach staff. Vice-Mayor Davis asked if the City of Salina was reimbursed for the school resource officers provided to the schools. Mr. Gage stated yes. A conversation continued to ensue between the Vice-Mayor and Mr. Gage regarding the school resource officer agreement. Commissioner Hay provided a statement regarding his concerns and encouraged Mr. Spurlock to take his concerns to the board of education. Commissioner Hodges asked for a consensus from the remaining city commissioners to have staff contact Dr. Hardy with USD No. 305 to inform them the City of Salina was available to help with the situation. Vice-Mayor Davis stated the commission would leave it up to staff to handle. PUBLIC HEARINGS AND ITEMS SCHEDULED FOR A CERTAIN TIME Paee 1 (5.1) Public hearing and report on Petition No. 4392 (filed by Todd Clark, Director of Operations, on behalf of Schwan's SFC Global Supply Chain), requesting the vacation of a portion of a 115 ft. wide utility easement on Lot One (1), Block Twelve (12) of the Schilling Subdivision No. 5. (5.1a) First reading Ordinance No. 1840927. t. Vice-Mayor Davis opened the public hearing. Dean Andrew, Director of Planning, explained the request, affected utilities and action options. Commissioner Hay asked what the time limit was for second reading of the ordinance to occur. Mr. Andrew stated there was not a defined time limit, but the past project was approximately six (6) months. He continued by stating he thought this project would be faster than the last project. Commissioner Hoppock asked if the surrounding ground was owned by Schwan's. Mr. Andrew stated yes, they owned everything to the west. Commissioner Hoppock asked about AT & T being opposed to the request. Mr. Andrew stated the utility was not sure if they had lines in the easement area and if they did, AT&T would work with Busboom & Rauh to relocate lines if needed. Commissioner Hoppock asked if something should be included in the ordinance to address the AT & T line. Mr. Andrew stated wording could be added to Section 3, Subsection B of the ordinance pertaining to the possible relocation of the AT&T lines. Jason Gage, City Manager, asked if the services for a private utility would serve other properties. Mr. Andrew stated AT & T was a franchise utility and the line would be a continuous line that ran south to north and would provide service to additional properties. He continued to state AT & T was okay with the relocation of utility services as long as Schwan's reimbursed them for the relocation. A conversation ensued between the Commission, Mr. Andrew and Mr. Gage regarding the AT &T lines in the easement. Bob Miller, president of Busboom & Rauh Construction Company, stated his company was notified of the objection and had a meeting with AT & T tomorrow morning to work out the relocation of the AT & T line. He continued to provide information on how the the AT &T line had been handled for past projects and stated the line could be relocated or sleeved and ran through the building. Mr. Gage asked if the line would be relocated would it remain in a private easement. Mr. Miller stated yes. A conversation ensued between the Commission, Mr. Andrew and Mr. Miller regarding the location of the AT&T utility lines. Commissioner Hoppock asked how vacated easements were handled if properties were sold. Mr. Andrew stated if the AT & T line would remain under the existing building, the line would not be located in a protected utility easement, the easement would be vacated. He continued to provide additional information he had received in the past pertaining to the AT & T line from the AT & T engineer and staff and was under the assumption the AT &T line was relocated as part of a prior project. Commissioner Hodges asked if the additional language would need to be added to the ordinance pertaining to the AT & T line in the easement. Greg Bengtson, City Attorney, Page 2 stated it would be best to add the language provided by Mr. Andrew with the information received by Mr. Miller. Mr. Bengtson asked if it had been determined if the line did exist. Mr. Miller stated the AT Lri &T copper line entered the west end of the building and he would be meeting with AT &T E tomorrow to determine the line location. a A conversation ensued between the Commission, Mr. Andrew and Mr. Bengtson regarding N the AT&T line and appropriate wording for the ordinance. Mr. Bengtson asked if the line was to remain in place, would it need to be on the basis of a 8 permanent easement granted by Schwan's for that purpose. Mr. Miller stated a portion of the line entered the building by the west guard shack and served Schwan's. He continued to state he would be meeting with AT & T tomorrow on site to determine the line location and the plans for relocating the line. He asked the City Commission to approve the request to keep the project moving forward and also stated Schwan's would pay for the cost of the relocation of the line if that was necessary. Mr. Bengtson asked if a relocation scenario or a private arrangement between Schwan's and AT & T would need to occur for the basis of moving forward with the vacation. Mr. Andrew stated if Schwan's chose not to relocate into the new private utility easement that was going to be dedicated, then Schwan's would need to submit a written statement indicating that they did not need the private utility easement. There being no further comments the public hearing was closed. ,18-0060 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to pass Ordinance No. 18-10927 vacating a portion of a 115 ft. wide utility easement on Lot One (1), Block Twelve (12) of the Schilling Subdivision No. 5 with the addition to Section 3 Subsection B, the petitioner must relocate the existing AT & T line or make satisfactory private arrangements on first reading. Aye: (4). Nay: (0). Motion carried. CONSENT AGENDA (6.1) Approve the minutes of February 12, 2018. (6.2) Approve the purchase of new softball scoreboards for Bill Burke Park from Daktronics in the amount of$34,774. (6.3) Award contract for the 2018 Microsurfacing, Project No. 80002, to Vance Brothers, Inc. in the amount of$725,249.98 with a 4.3% construction contingency. (6.4) Award the modified contract for the 2018 Ultrathin Bonded Asphalt Surface, Project No. 80003, to APAC-Kansas in the amount of $766,427.78 with a 4.3% construction contingency. Commissioner Hodges asked if the minutes of February 12, 2018 would be modified to include the comments of Mayor Ryan. Michael Schrage, Deputy City Manager, stated the minutes for the February 5, 2018 meeting would be amended to include the comments of Mayor Ryan. IIIVice-Mayor Davis requested items 6.2, 6.3 and 6.4 be removed from the consent agenda. 18-0061 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve the consent agenda less items 6.2, 6.3 and 6.4. Aye: (4). Nay: (0). Motion carried. Page 3 (6.2) Approve the purchase of new softball scoreboards for Bill Burke Park from Daktronics in the amount of$34,774. Vice-Mayor Davis asked if the information listed on the scoreboard was required. Chris Cotten, Director of Parks and Recreation, stated the information listed on the scoreboard is the needed information for the games and tournaments. 18-0062 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve the purchase of new softball scoreboards for Bill Burke Park from Daktronics in the amount of$34,774. Aye: (4). Nay: (0). Motion carried. s (6.3) Award contract for the 2018 Microsurfacing, Project No. 80002, to Vance Brothers, Inc. in the amount of$725,249.98 with a 4.3% construction contingency. (6.4) Award the modified contract for the 2018 Ultrathin Bonded Asphalt Surface, Project No. 80003, to APAC-Kansas in the amount of $766,427.78 with a 4.3% construction contingency. Vice-Mayor Davis asked if Microsurfacing was necessary if Ultrathin Bonded Asphalt Surface lasted a lot longer. Dan Stack, City Engineer, stated staff felt it was necessary to continue to use Microsurfacing but would continue to look at it in the future. 18-0063 Moved by Commissioner Hodges, seconded by Commissioner Hay, to award contract for the 2018 Microsurfacing, Project No. 80002, to Vance Brothers, Inc. in the amount of $725,249.98 with a 4.3% construction contingency and award the modified contract for the 2018 Ultrathin Bonded Asphalt Surface, Project No. 80003, to APAC-Kansas in the amount of $766,427.78 with a 4.3% construction contingency. Aye: (4). Nay: (0). Motion carried. ADMINISTRATION (7.1) Second reading Ordinance No. 18-10918 approving a change in zoning district classification from A-1 (Agricultural) to R-1 (Single-Family Residential) on an unplatted tract of land to allow creation of a residential building lot for a new single-family dwelling. The subject property is a 16,679 sq. ft. tract of land located on the north side of East Cloud Street east of Ohio Street east of 1635 East Cloud Street. Vice-Mayor Davis noted that Ordinance No. 18-10918 was passed on first reading on February 12, 2018 and since that time no comments have been received. 18-0064 Moved by Commissioner Hay, seconded by Commissioner Hodges, to adopt Ordinance No. 18- 10918 approving a change in zoning district classification from A-1 (Agricultural) to R-1 (Single- Family Residential) on an unplatted tract of land to allow creation of a residential building lot for a new single-family dwelling on second reading. A roll call vote was taken. Aye: (4) Hay, Hodges, Hoppock, Davis. Nay: (0). Motion carried. (7.2) Second reading Ordinance No. 18-10924 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping commercial hotel facilities for the benefit of HPSA, LLC. Vice-Mayor Davis noted that Ordinance No. 18-10924 was passed on first reading on February 12, 2018 and since that time no comments have been received. Page 4 .18-0065 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Ordinance No. 18- 10924 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping commercial hotel facilities for the benefit of HPSA, LLC on second reading. A roll call vote was taken. Aye: (3) Hay, Hoppock, Davis. Nay: (1) Hodges. Motion carried. W Commissioner Hoppock requested that Agenda Item 7.4 go before Agenda Item 7.3. (7.4) Second reading Ordinance No. 18-10922 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of FIB, LLC. Vice-Mayor Davis noted that Ordinance No. 18-10922 was passed on first reading on February 12, 2018 and since that time no comments have been received. Michael Schrage, Deputy City Manager, provided information on the Development Agreement relating to resolutions of intent and Industrial Revenue Bond financing. Commissioner Hoppock thanked staff for the clarification. Commissioner Hodges thanked Mr. Schrage for the City of Salina Downtown Redevelopment Expenditures To-Date and Anticipated. Mr. Schrage provided information on the document provided. Jason Gage, City Manager, stated the numbers would hopefully be helpful for the commission. Guy Walker, 500 Graves Blvd, thanked the City Commission for considering the item on second reading; the industrial revenue bonds were an important part of the project and asked that the City Commission pass the agenda item. Commissioner Hoppock provided his thoughts on the item. Commissioner Hodges stated she agreed with Commissioner Hoppock but was going to vote no on the agenda item and would like for a policy to be put into place for incentives in the future. Vice-Mayor Davis noted that FIB, LLC was for The Alley Entertainment Center. 18-0066 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to adopt Ordinance No. 18- 10922 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of FIB, LLC on second reading. A roll call vote was taken. Aye: (3) Hay, Hoppock, Davis. Nay: (1) Hodges. Motion carried. (7.3) Second reading Ordinance No. 18-10921 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing and equipping commercial hotel facilities for the benefit of Lighthouse Properties, III, Inc. Commissioner Hoppock recused himself due to a conflict of interest. Michael Schrage, Deputy City Manager, provided additional information regarding the project and the project cost. Vice-Mayor Davis asked if there was a difference if the item did not pass due to a lack of a second instead of due to a lack of number of votes. Greg Bengtson, City Attorney, stated Paee 5 the ordinance would not pass if the item did not pass due to a lack of a second or due to the lack of number of votes. Vice-Mayor Davis asked if the item would go back to first reading and could be voted on again in the future. Mr. Bengtson stated he was not sure how that would be handled. Vice- Mayor Davis asked Mr. Bengtson if a five (5) minute recess would help. Mr. Bengtson n W stated yes. Z Jason Gage, City Manager, reminded Vice-Mayor Davis his role as mayor would still give him the same rights as a commissioner. 0 The City Commission recessed for a five (5) minute break at 5:18 p.m. and reconvened at 5:23 p.m. Mr. Bengtson stated the ordinance would require three (3) affirmative votes and if the item was not passed with three (3) affirmative votes, the item would fail. He continued by stating if there was a lack of second, the item would also fail. Commissioner Hay asked if the agenda item could be brought back up at a later time. Mr. Bengtson stated as long as the rules were followed the item could be brought back as a new ordinance. Vice-Mayor Davis asked if there were any rules to when the item could be reconsidered. Mr. Bengtson stated no and explained the time constraint pertaining to referendum ordinances. I 18-0067 Moved by Commissioner Hay, seconded by Vice-Mayor Davis, to adopt Ordinance No. 18-10921 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing and equipping commercial hotel facilities for the benefit of Lighthouse Properties, III, Inc. on second reading. A roll call vote was taken. Aye: (2) Hay, Davis. Nay: (1) Hodges. Motion failed. Commissioner Hoppock returned. (7.5) Second reading Ordinance No. 18-10923 authorizing the issuance of Industrial Revenue Bonds for the purpose of providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of Samys OC, LLC. Michael Schrage, Deputy City Manager, provided additional information on the request and stated staff had received a request requesting the item be postponed to March 19, 2018 to allow for the master developer and staff to work on amendments to the transferee agreement. Vice-Mayor Davis asked if the item would return as a first reading ordinance. Mr. Schrage stated if the amendment to the transferee agreement was prepared and on the same agenda as the ordinance, the ordinance could remain as a second reading. Commissioner Hoppock provided his thoughts on postponing the item. Jason Gage, City Manager, stated there was typically a lot of emphasis on first reading and it was nonbinding. 18-0068 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to postpone adoption of Ordinance No. 18-10923 authorizing the issuance of Industrial Revenue Bonds for the purpose of Page 6 providing funds to pay the cost of acquiring, purchasing, constructing, installing, furnishing and equipping a commercial facility for the benefit of Samys OC, LLC on second reading to March 19, 2018. Aye: (4) Nay: (0). Motion carried. (7.6) First reading Ordinance No. 18-10928 amending Section AF103.12 of the 2012 International Residential Code removing a requirement to add a new electrical circuit for anticipated radon fan usage. Sean Pilcher, Building Official, explained the request, Building Advisory Board recommendation and action options. ° Commissioner Hoppock asked if the circuit was installed just in case but would not be installed unless a radon system was installed. Mr. Pilcher stated yes. 18-0069 Moved by Commissioner Hay, seconded by Commissioner Hodges, to pass Ordinance No. 18- 10928 amending Section AF103.12 of the 2012 International Residential Code removing a requirement to add a new electrical circuit for anticipated radon fan usage on first reading. Aye: (4). Nay: (0). Motion carried. (7.7) First reading Ordinance No. 18-10925 amending Chapter 8, Article III, Section 172.1, Chart 1 and Section 8-175, Chart II of the Salina Code to add a new category of contractor licensing for Specialty Lawn/Yard Irrigation Contractor. Sean Pitcher, Building Official, explained the contractor and testing requirements, Building Advisory Board recommendation and action options. Vice-Mayor Davis asked if a licensed plumber was the only one who could install the backflow device. Mr. Pilcher stated a licensed plumber would be the only one that could install the backflow device and explained the process to install a system and apply for the permit. Vice-Mayor Davis asked if there were expenses of the contractor to get this license. Mr. Pilcher stated the contractor would have to take a test through Prometric or have a qualifying degree prior to getting the license. Commissioner Hoppock asked if a property owner would be able to install a lawn or yard irrigation system but a backflow prevention device would have to be inspected. Mr. Pilcher stated a property owner can install an irrigation system and the backflow prevention device but would be required to pull the permit and have an inspection completed. Commissioner Hodges asked what the fee would be for the contractor license. Mr. Pilcher stated the test fee would be $125. Shandi Wicks, City Clerk, stated the contractor license fee would be$230 for a three (3) year license. Commissioner Hodges asked how staff was aware of the discrepancy in the numbers. Mr. Pilcher stated a backflow prevention device would be installed by a licensed plumber and a lawn/yard irrigation contractor would then go in to install the irrigation system and test the device, the results from the test would be submitted to Utilities Department. The number of permits issued for the backflow prevention device was higher than the number of permits issued for irrigation systems. Vice-Mayor Davis asked when the backflow prevention device would have to be inspected. Mr. Pilcher stated the inspection for a commercial facility would be yearly and residential would be every five (5) years. Page 7 Lois Christensen, 2317 Belmont, stated she wished there were more requirements for remodeling and asked if there could be a requirement to have a backflow prevention device inspected. Mr. Pilcher stated there should be an inspection every five (5) years but there were no penalties if a system had not been inspected. z Ms. Christensen asked where the cross checking was that the system was inspected every w five (5) years. Mr. Pilcher stated staff in Utilities would send out notifications to the property owners for inspections and this change would be to help staff to catch any new systems that would be installed. Vice-Mayor Davis asked where the prevention device would be installed. Mr. Pilcher stated U it would depend on how the system was installed. Gary Arpin, 929 Twin Oaks Drive, provided his thoughts on the ordinance and stated he was in favor of the ordinance but did voice his concerns on the ordinance. He continued to provide information on systems that did not have backflow devices installed on them. Commissioner Hoppock asked what the ramifications were if a backflow prevention device was not installed. Michael Schrage, Deputy City Manager, stated the backflow prevention device would keep particles and contaminates from entering the water system. Jason Gage, City Manager, provided additional information on backflow prevention devices. Commissioner Hay asked if Mr. Pilcher would be in favor of the name change to Specialty Lawn/Landscape Contractor. Mr. Pilcher stated he was in favor of the change. 18-0070 Moved by Commissioner Hay, seconded by Commissioner Hodges, to pass Ordinance No. 18- 10925 amending Chapter 8, Article III, Section 172.1, Chart 1 and Section 8-175, Chart II of the Salina Code to add a new category of contractor licensing for Specialty Lawn/Landscape Irrigation Contractor on first reading. Aye: (4). Nay: (0). Motion carried. (7.8) First reading Ordinance No. 18-10920 condemning land for the location and construction of a water treatment plant at South Ohio Street and East Water Well Road, Saline County, Kansas and to further assure the City's future capacity to provide a reliable public water supply, and directing the city manager to cause the initiation of an eminent domain proceeding as provided by applicable law to acquire the tracts and parcels of land described in the ordinance. Greg Bengtson, City Attorney, stated he had received information from Tim Orrick that would be best discussed with the City Commission in an executive session. He continued to ask if it was best to move the item to the end of the meeting. 18-0071 Moved by Commissioner Hodges, seconded by Commissioner Hoppock, to table Agenda Item 7.8 to the end of the meeting. Aye: (4). Nay: (0). Motion carried. DEVELOPMENT BUSINESS (8.1) Application No. Z18-1, (filed by Curt Robertson on behalf of Nine South Development, LLC.), requesting change in zoning district classification from A-1 1 (Agricultural) to C-3 (Shopping Center) district on a 9.23 acre tract of land located on the east side of South Ninth Street between the Market Place Apartments and Sam's club and is addressed as 2755 South Ninth Street. (8.1a) First reading Ordinance No. 18-10926. Page 8 Dean Andrew, Director of Planning, stated the applicant was ill and asked that the item be postponed to the March 5, 2018 meeting. Jeff Maes, ComPro Realty, stated the engineer was not available for the meeting and requested the item be postponed to the March 5,2018 meeting. 18-01W2 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to postpone passage of Ordinance No. 18-10926 requesting a change in zoning district classification from A-1 N (Agricultural) to C-3 (Shopping Center) district on a 9.23 acre tract of land located on the east side of South Ninth Street between the Market Place Apartments and Sam's club and is addressed as 2755 South Ninth Street on first reading to March 5, 2018. Aye: (4). Nay: (0). Motion carried. U (8.2) Resolution No. 18-7529 supporting the issuance of housing tax credits to help finance development of 47 senior housing units in the former St. John's Hospital building addressed as 139 North Penn Avenue. Dean Andrew, Director of Planning, explained the project, request and action options. Commissioner Hay provided his thoughts on the request. Commissioner Hodges provided her thoughts on the request. Commissioner Hodges asked when the application would be submitted to the Kansas State Historic Sites Board. Mr. Andrew stated the request was taken to the National Park Service and Sunflower Development Group and the State Historic Preservation Office, a preliminary determination of eligibility for the National Register of Historic Places. He continued by stating the application was waiting to be considered by the Kansas Historic Sites Board of Review which met quarterly and if approved, the application would be referred back to the Heritage Commission for nomination then to the City Commission. Vice-Mayor Davis stated the staff report indicated there would be a community kitchen and asked if all apartments would have kitchens in them. Mr. Andrew stated yes, but the building would have a kitchen for use for gatherings, etc. Judy Larson, Salina, Kansas, stated she was excited for the item but wanted to remind the commission that transportation would be needed in close proximity to the location. Jason Gage, City Manager, stated staff would bring it to the attention of OCCK as the project moved forward to look into adding a bus stop in close proximity to the location. 18-0073 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve Resolution No. 18- 7529 supporting the issuance of housing tax credits to help finance development of 47 senior housing units in the former St. John's Hospital building addressed as 139 North Penn Avenue. Aye: (4). Nay: (0). Motion carried. (8.3) Resolution No. 18-7531 supporting the application for Low Income Housing Tax credits to help finance Phase I of the Lee Buildings housing project addressed as 254 North Santa Fe Avenue. Michael Schrage, Deputy City Manager, explained the request, tax credit program and action options. Commissioner Hodges asked for the estimated investment on the 95% of the tax rebate. Tony Krsnich, Flint Hills Holdings Group partnering with, Matt Gillam, Overland Property Group, provided information on the development companies, the past projects the Page 9 companies have completed and the request. Mr. Schrage provided an update on the taxes paid on the property and explained the rebate program for this property. Mr. Krsnich stated the tax amount would stay the same. Commissioner Hoppock asked if historical tax credits would be applied for and how would individuals from the KU School of Medicine be able to qualify for the apartments. Mr. Krsnich stated yes, they plan to apply for historical tax credits and stated there were market rate apartments available for all individuals. Commissioner Hoppock asked how the parking would be handled for the buildings. Mr. a Krsnich stated there would be a location in close proximity for parking for these buildings. Commissioner Hoppock asked how the developer determined the number of apartment types in the buildings. Mr. Krsnich stated they had taken information from the community to determine the number of apartments of each type to have in the buildings. Jason Gage,City Manager, stated part of the emphasis from the City of Salina was to follow the housing study. Commissioner Hodges asked for the differences in cost for the apartment types. Mr. Krsnich provided information on the rent for the various apartment types. Commissioner Hodges asked what types of jobs would be created. Mr. Krsnich stated there was a 2,000 square foot commercial space to fill that would be available beginning in the fall of 2019. Mr. Gillam stated the introduction of tax credits would add jobs to the community. . Mr. Schrage stated Salina 2020, Inc. removed the property from the tax increment financing district knowing that the project would not happen if it would remain in the district. Commissioner Hodges asked what the neighborhood revitalization program looked like. Mr. Schrage stated depending on the type of development, the rebate would be 100% for the first five (5) years then 50% for the last five (5) years for residential and 50% for the first five (5) years then 25% for the last five (5) years for commercial. Mr. Krsnich provided additional information on rebates he was currently receiving for other locations in the state. Commissioner Hodges asked if solar panels would be used on the property. Mr. Krsnich stated it was on the top of his list but would depend on the budget. Commissioner Hodges asked where the parking would be for the building. Mr. Gillam showed the parking from the site plan within the presentation. Mr. Krsnich stated there was a good balance and the parking in the phase would be sufficient but more could be added if necessary. Commissioner Hay provided his thoughts on the project. Vice-Mayor Davis asked how the space between the two (2) phases would be used. Mr. Krsnich stated the space would be used as a courtyard for use by residents and the public. Vice-Mayor Davis asked when the second phase for the project would occur. Mr. Krsnich stated once the tax credits were received, the second phase would be marketed at the same time as the first phase. Vice-Mayor Davis stated with the professional students in the area the market rate and affordable rate apartments would be renewed continuously for renters. Mr. Gillam stated Page 10 they had received a letter of support from Salina Regional Health Center for turning the buildings into apartments. Mike Forristal, Lee Building owner, provided information on the buildings and stated he would like to see the project move forward or the buildings would have to be demolished in the future. 18-00,4 Moved by Commissioner Hodges, seconded by Commissioner Hay, to approve Resolution No. 18- 7531 supporting the application for Low Income Housing Tax credits to help finance Phase I of the Lee Buildings housing project addressed as 254 North Santa Fe Avenue. Aye: (4). Nay: (0). Motion carried. Mr. Schrage stated if the City Commission wished, the motion would be to authorize staff to prepare a Development Agreement to formalize the provision of $500,000 in the form of a forgivable loan in return for redevelopment of 53 apartments in Phase I of the Lee Building redevelopment with a minimum of 33% of the apartment units being market rate apartments. 18-0075 Moved by Commissioner Hay, seconded by Commissioner Hoppock, to authorize staff to prepare a Development Agreement to formalize the provision of $500,000 in the form of a forgivable loan in return for redevelopment of 53 apartments in Phase I of the Lee Building redevelopment with a minimum of 33% of the apartment units being market rate apartments. Commissioner Hodges provided her thoughts on the funding request. Mr. Schrage asked Mr. Krsnich for any information he had on the funding request. Mr. Krsnich stated multiple requests had come to the City Commission in the past and he felt the project was short listed and he believed there were projects being shuffled at the Kansas Housing Resources Commission (KHRC) and felt if the project funding request was approved he felt favorably on the tax credits from KHRC. Vice-Mayor Davis asked if the forgivable loan would be given, what would the completion look like. Mr. Schrage stated the loan would require that certain factors would be met during the completion of the project. Mr. Krsnich provided information on the look of the forgivable loan. A conversation ensued between the commissioners on the funding request. Mr. Gage stated there had been interest but there had not been enough to develop the buildings. He continued to state he could not pick a better team to work with on a project like this. Mr. Schrage explained the downtown redevelopment expenditures to date and anticipated expenditures in further detail. Mr. Forristal stated the project was the best project for the property he had seen. Commissioner Hoppock asked for the amount of construction materials and labor for the project. Mr. Krsnich stated the project would be a 70/30 split. Commissioner Hoppock provided his thoughts on the project and the funding request. Vice-Mayor Davis restated the motion to authorize staff to prepare a Development Agreement to 111 formalize the provision of $500,000 in the form of a forgivable loan in return for redevelopment of 53 apartments in Phase I of the Lee Building redevelopment with a minimum of 33% of the apartment units being market rate apartments. Aye: (4). Nay: (0). Motion carried. Paye 1 l (8.4) Resolution No. 18-7532 accepting the 2017 Kansas Small Cities Community Development Block Grant from the Kansas Department of Commerce for restoration of the depot building located at 356 North Santa Fe. Lauren Driscoll, Director of Community Sr Development Services, explained the grant received, grant requirements, the project and action options. Vice-Mayor Davis asked if the building would be lost by fire, would the funds be returned cno to the State of Kansas. Ms. Driscoll stated yes. Commissioner Hoppock asked if the owner would be required to provide their money for the project at the same time as the grant money. Ms. Driscoll stated the owner could pay their portion on a monthly basis or a quarterly basis and there was a formula used to determine the payment amounts. 18-0076 Moved by Commissioner Hoppock, seconded by Commissioner Hodges, to approve Resolution No. 18-7532 accepting the 2017 Kansas Small Cities Community Development Block Grant from the Kansas Department of Commerce for restoration of the depot building located at 356 North Santa Fe. Aye: (4). Nay: (0). Motion carried. 18-0077 Moved by Commissioner Hoppock, seconded by Commissioner Hay, to recess into executive session for 15 minutes to discuss confidential negotiations relating to acquisition of the South Water Plant site with legal counsel based upon the need for consultation with an attorney for the public body which would be deemed privileged in the attorney-client relationship, pursuant to K.S.A. 45-7319(b)(2),. The open meeting will resume in this room at 8:05 p.m. Aye: (4). Nay: (0). Motion carried. The City Commission recessed into executive session at 7:50 p.m. and reconvened at 8:05 p.m. No action was taken. (7.8) First reading Ordinance No. 18-10920 condemning land for the location and construction of a water treatment plant at South Ohio Street and East Water Well Road, Saline County, Kansas and to further assure the City's future capacity to provide a reliable public water supply, and directing the city manager to cause the initiation of an eminent domain proceeding as provided by applicable law to acquire the tracts and parcels of land described in the ordinance. Greg Bengtson, City Attorney, explained the eminent domain process, current request, Executive Summary of the Salina Raw Water Supply Study and action options. Commissioner Hay asked if there was an appraisal done by the property owner would the City of Salina also have to have an appraisal done on the property. Mr. Bengtson stated yes, the court will appoint the panel of three (3) appraisers familiar with license appraisals and would hold a hearing to come to a common determination of a single value of the property and report that amount to the court which the City of Salina would pay in to take ownership of the property. Vice-Mayor Davis asked if an appraiser that had made a previous appraisal on the property would be able to sit on the panel. Mr. Bengtson stated no, anyone that had previously provided an appraisal on the property would not be able serve on the panel. 18-0078 Moved by Commissioner Hodges, seconded by Commissioner Hay, to pass Ordinance No. 18- 10920 condemning land for the location and construction of a water treatment plant at South Ohio Paee 12 Street and East Water Well Road, Saline County, Kansas and to further assure the City's future capacity to provide a reliable public water supply, and directing the city manager to cause the initiation of an eminent domain proceeding as provided by applicable law to acquire the tracts and parcels of land described in the ordinance on first reading. Aye: (4). Nay: (0). Motion carried. 0_ OTHER BUSINESS None. N ADJOURNMENT 18-0099 Moved by Commissioner Hay, seconded by Commissioner Hoppock, that the regular meeting of the Board of City Commissioners be adjourned. Aye: (4). Nay: (0). Motion carried. The meeting adjourned at 8:15 p.m. [SEAL] Trent W. Davis, M.D.,Vice-Mayor ATTEST: Shandi Wicks,CMC, City Clerk II LI Page 13