07-30-2018 Minutes (Special) CITY OF SALINA, KANSAS
SPECIAL MEETING OF THE BOARD OF COMMISSIONERS
July 30, 2018
3:30 p.m.
The Special Meeting of the Board of Commissioners was called to order at 3:30 p.m. in Room 107,
City-County Building. Roll call was taken followed by the Pledge of Allegiance and a moment of
N silence.
Those present and comprising a quorum: Mayor Karl F. Ryan (presiding), Commissioners Trent
Davis,Joe Hay,Jr., Melissa Rose Hodges, and Mike Hoppock.
Also present: Michael Schrage, Interim City Manager; Greg Bengtson, City Attorney; and Shandi
Wicks, City Clerk.
ADMINISTRATION
(3.1) Resolution No. 18-7586 authorizing the Mayor to execute a consent to an
Assignment of Transferee Agreement, Development Agreement, Rights to receive
STAR Bond Proceeds and CID Reimbursements and Security Agreement.
Michael Schrage, Interim City Manager, explained the request, the agreements, fiscal
impact and action options.
Commissioner Hay stated the property was set to close on July 31, 2018 and asked for the
anticipated start date or timeline for the project. Cathy DeSocio, FIB, LLC stated the
contractor was ready to drop the trailer as soon as the bank receives the no start certificate,
which should be tomorrow afternoon. She continued to state the contractor would be able
to drop the trailer and begin the project Wednesday, August 1, 2018, in the morning.
Mr. Schrage stated the project had been through the design review process for the
downtown project, received Heritage Commission approval and the footing and
foundation permit had been received, reviewed and approved and was ready to issue.
Mrs. DeSocio stated she thought underground and footing permits were in hand.
Commissioner Hodges stated with the project 60 days late, was there a reason the
commission had to meet today. Mr. Schrage stated mostly to expedite the closing of the
property that was scheduled for as early as tomorrow. He also stated with the interest in
timing, to keep the property moving and with a special meeting already scheduled, if it
Has a standalone item, the item would have waited for the next regularly scheduled
meeting.
Commissioner Hodges asked if all the infrastructure upgrades were complete at this point.
Mr. Schrage stated previous action was taken to vacate the right-of-way and retain a utility
easement that action was the basis for the utilities department to contract for both the hotel
project and the alley project for relocation of the sewer. He continued to state the relocation
of the sewer for the hotel project was done first due to timing of the projects.
A conversation ensued between Commissioner Hodges and Mr. Schrage regarding the
infrastructure upgrades for the alley project.
Commissioner Hodges asked if the financial advisors had looked at the plans and
feasibility studies for all three (3) core projects. Mr. Schrage stated the financial advisors
had looked at the studies initially and staff had conversations jointly with Salina 2020, Inc.,
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bond counsel and the financial advisors looking at the interest rate environment and the
impacts on when it would be advisable to issue STAR Bonds as well as the legislative
environment. He also stated the need for review of the feasibility studies in advance of the
STAR Bonds issuance.
Commissioner Hodges asked with rights and proceeds signed over to the bank, in the event
of a default or a failure, where would the rights and-proceeds go next. Mr. Schrage stated
y the intent was those commitments to the income stream were collateral for the loan for the
alley project, it would retain with the bank. He also stated it was pay as you go, if the
project did not move forward, there would not be CID captured and reallocated elsewhere.
Commissioner Hodges asked if the Phase I and Phase II environmental studies had been
received. Mrs. DeSocio stated the environmental studies were received, the SBA had signed
off and gave an acceptable rating and the Kansas Department of Health and Environment
(KDHE) had agreed that everything that was there was prior to the ownership of the
property by FIB, LLC. She also stated if anything arose the property could be put into one
of three (3) programs KDHE had to handle any of the issues at no cost to the property
owners.
Larry Britegam, President, American State Bank & Trust Company, stated the loan had
been approved with closing tomorrow morning and there were no issues from the bank or
legal counsel on both sides.
18-0294 Moved by Commissioner Hay, seconded by Commissioner Davis, to adopt Resolution No. 18-7586
authorizing the Mayor to execute a consent to an Assignment of Transferee Agreement,
Development Agreement, Rights to receive STAR Bond Proceeds and CID Reimbursements and
Security Agreement. Aye: (5). Nay: (0). Motion carried.
Mayor Ryan stated the Salina Public Library had been nominated Top 3 in the State of
Kansas. -
Commissioner Hodges congratulated the Salina Falcons on the state championship and
hoped there would be a proclamation to recognize them at the next meeting.
Mr. Schrage stated the Salina Police Department took the lip sync challenge and stated the
video had over 200,000 views so far. Mayor Ryan asked if the video was on the website.
Mr. Schrage stated staff could add it to the website.
ADJOURNMENT
18-0295 Moved by Commissioner Davis, seconded by Commissioner Hodges, that the special meeting of
the Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting
adjourned at 3:46 p.m.
Cie---e qt.--
[SEAL] Karl F. Ryan, Mayor
ATTEST: ll
Shandi Wicks, CMC, City Clerk •
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