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12-19-2019 Minutes (Special) CITY OF SALINA,KANSAS SPECIAL MEETING OF THE BOARD OF COMMISSIONERS,JOINT MEETING WITH li SALINE COUNTY COMMISSION December 19,2019 N 6:00 p.m. Z The Special Meeting of the board of Commissioners was called to order at 6;00 p.m, in Visit Salina a Annex Room at Salina Area Chamber of Commerce,120 W. Ash. Roll call was taken. 0 Those present and comprising a quorum: Mayor Trent Davis (presiding), Commissioners, Joe Hay,Jr.,Melissa Rose Hodges, and Mike Hoppock. Also present: Michael Schrage, City Manager,Jacob Wood, Deputy City Manager, Greg Bengtson, City Attorney,and Shandi Wicks,City Clerk. Absent: Commissioner Ryan Mayor Davis asked the Clerk for verification that notice had been sent for today s City Commission meeting. The Clerk replied yes. CURRENT DISCUSSION TOPICS a). City remarks regarding Expo Center Lease (Mayor Davis) Mayor Davis stated the reason for the joint meeting was to try to resolve the Expo Center lease and take a little tack on this tonight and my expectation was to have an agreement when we walk out of here. He stated it would not be an official agreement until legal has reviewed the agreement and both boards had voted on it. He continued to state there had been many back and forth proposals and discussions and the easiest way to boil it down is with a landlord/tenant relationship. He continued to state that Mayor Davis, City Commissioner Hodges and City Commissioner Ryan stated that they were in Chairman Vidricksen's district, City Commissioner Hoppock was in County Commissioner Sparks district and City Commissioner Hay was in County Commissioner White's district. Mayor Davis continued to provide information on the function of the Expo Center and the current lease. Mayor Davis asked Commissioner Hoppock to speak about the future of the facility. Commissioner Hoppock stated we need to discuss what happened in the past and provided his thoughts on the City of Salina hiring HDR Engineering to perform a study on the facilities and Saline County hiring GH2 to perform their study. He continued to state he was in favor of a 25 year lease and wanted to not look at what we should spend but what needed to be done. He further stated that it was listed on the proposed master plan that barns 3, 5 and 6 were to be demolished and new stalling created, and asked the Saline County Commission if that needed to be done or if it was an alternative. Chairman Vidricksen stated he thought it was a request from the City side because of the look of the barns and the need to build a new warming arena. Commissioner Hoppock continued to go through the proposed master plan estimate of construction cost for the facilities. He continued to provide some alternative improvements that could be done to Barns 2,3,5,and 6. Mayor Davis provided additional information on the proposed master plan created by GH2 Equine Architects. Page 1 Commissioner Hay stated there was going to be a winner and a loser in this deal but that winner or loser was one person, the taxpayers and they were going to be the one to suffer �M no matter which way this goes and he hoped we could reach an agreement to keep the Expo Center in Salina,Kansas. 1N Commissioner Hodges thanked the Saline County Commission for being willing to have the joint meeting. She continued to state it was very important and thought the intentions were good and she did not want to keep pushing for a meeting, but she wanted to try to keep it moving. She continued to state that she was in favor of going down the list to determine what was a must-have from the County Commission's point of view, from the consumer's point of view to make it a useable facility and what's important for the City Commission. She continued to state the need to help blend the facilities in with the new improvements to the Tony's Pizza Events Center. Chairman Vidricksen asked if the City of Salina was willing to put any money forward. Mayor Davis stated he would be in favor of going down the list to determine if it was a needed improvement. Chairman Vidricksen stated he thought the City Commission would have a list prepared for them to act on and take it for that standpoint. Mayor Davis stated there were things that the City Commission thought should be done. Commissioner White asked why the City of Salina wanted to go down the list. Mayor Davis stated to come to a consensus. He asked the City Commission to go down the list to N determine what they think should be done. Chairman Vidricksen stated they would do the needed maintenance to the facilities that were listed on the current agreement. A conversation ensued between the City Commission; the County Commission; Rick Lamer, Saline County Expo; Michael Schrage, City Manager went through the Proposed Master Plan Estimate of and Construction Cost beginning with C. Other Possible Improvements and D.Sitework to determine the needed improvements. Chairman Vidricksen stated that it would be difficult for Saline County to say yes tonight due to not knowing what the aesthetics to Barns 2,3,5,6 and the fencing would cost. Commissioner White stated we were looking at a 50 year lease and stated the latest request was for a 40 year lease and asked Mayor Davis if we still have that. Mayor Davis stated the City Commission was still at a 25 year lease with three (3) five (5) year lease extensions. Chairman Vidricksen stated that it would not be to the County's benefit to have the three (3) five (5) year lease extensions. Mayor Davis stated it would also give the County Commission a way out. Commissioner Hoppock stated that when he looked at the improvements we are looking to be made we are looking at a 25 year life or a 20 year life. He continued to state if he was a landlord he would be looking at amortizing it over a 25 year period. Chairman Vidricksen asked if the County Commission could trade the police department for the park. Commissioner White stated he could not look at a future commission to have to go through this again. Commissioner Hoppock provided his thoughts on a lease term. Commissioner Sparks stated we are here for the Expo Center and he wanted to ask the question and asked if we could keep the stadium. He continued to state it was very important to discuss and stated the past city manager stated he would give a $10,000 Page 2 allowance to use the Tony's Pizza Events Center and asked if the allowance or a decision had been made on the stadium. Chairman Vidricksen stated the Expo Center was used 365 days a year and the rodeo grounds was only used once a year. Mayor Davis stated we ` hadn't thought about it but it was certainly worth putting into the equation. Commissioner I Sparks provided his thoughts on the stadium. r Commissioner Weese stated when we talk about aesthetics, would a paver look be another way to dress up the area. Mr. Lamer provided his thoughts on the idea. Commissioner Weese stated he did not wish the 25 year lease with three (3) five (5) year extensions on anyone. He continued to state he would propose a 30 year lease with no extensions. Chairman Vidricksen stated that we need to take the new improvements list and get with the experts and contractors to determine to get some loose numbers and put that into a 30 year lease if that's what they want us to do and see if that works out. He continued to state he was okay with where we were headed here but was not ready to put his name on anything yet. He further stated that Saline County would continue to lose a quarter of a million dollars in the Expo Center a year right now without any further investment. Commissioner White would like to point out the $376,000 spent by Saline County for staff wages and maintenance and generates $2 million dollars in direct impact in the community. Chairman Vidricksen stated he agreed. Mayor Davis stated that the more we grow it,the more people that will come to Salina and the more that number will grow. Chairman Vidricksen stated we still have the one (1) year lease left and he would like to see what the Equifest looks like in the facility and wanted to see them come back year after year and hopefully get more money out of them. Mayor Davis stated he would like to start in early 2020 to get an agreement done and not continue with the three (3) year extension of the lease. Chairman Weis stated Mayor Davis, you want to do away with the three (3) one year lease extension and get the new lease done. Commissioner Hodges stated it looked like a bit of a compromise because it would actually be a 33 year lease with the three (3) one year lease extension and a 30 year lease. Commissioner Hoppock stated he was looking at a 28 year i lease with the three (3) one year lease extension and a 25 year lease. A conversation continued to ensue regarding the lease term. Justine Staten, Kansas Horse Council and Equifest of Kansas, stated a large livestock event was best in the current location with the city infrastructure around it and the location was very attractive for Equifest to come to with the livestock piece and they looked forward to a 30 year lease. James Bowden, Salina, asked what the Equifest commitment was to Salina. Ms. Staten stated they currently had a three (3) year commitment to the facility. She continued to state having two (2) arenas was very important for their event and explained what would happen if one of those was not available. Chairman Vidricksen stated for clarification, the three (3) year commitment Equifest had was an internal commitment through their organization, he did not remember a three (3) year lease with the organization. Ms. Staten stated the lease they had with the Saline County Expo Center was a yearly lease, although the organization had verbally committed to a three (3) year lease, but the County Administrator, at the time, recognized that the Page 3 County was not authorized to make a commitment beyond one year. She continued to state there was a verbal commitment to be at this location for a minimum of three (3)years. Carl Garten, Saline County Fair Board, if we were going to go through the trouble to keep the barns, let's make sure that ventilation was included in Barns 3,5,6 and 2. He also stated that electrical on the outside of the barns would be helpful. He also stated let's look at a 30 or 35 year lease but have a meeting in 25 years to determine what needs to happen by the end of the 30 year lease. Erick Bloomquist, Saline County Fair Board, stated that there was an increase to transient guest tax, or one being looked at, that the county did not have access to. He continued to speak about improvements that the County was paying for and the City getting the transient guest tax money and asked if there was some type of agreement between the City and the County on the money brought in from events held at the Expo Center. A citizen asked how many quarter horse shows were held in 2019. Rick Lamer stated there were 13 shows total in 2019 with one (1)being a paint horse show,one (1) being a palomino show and no quarter horse shows. James Bowden stated he liked the idea of Equifest but we needed to put the Equifest event aside and we need to look at the agricultural uses in the community and encouraged the County to get more involvement from the community. Linda Lilly stated if we utilize the arena for barrel races and other events there could be more use for the facilities on a yearly basis. She continued to provide other examples the arena could be used for. Randall Holm, wanted to compliment both commissions with happily surprising him with the work they are doing together. He continued to state he thought we needed to expand the rodeo arenas use for more events throughout the year. Mayor Davis asked if the City Commission would like to have an executive session. The consensus was no. Chairman Vidricksen stated he did not think his board would like to hold an executive session. He continued to state he would talk to his counter parts and get information needed on the improvements to get back with the City Commission. Commissioner Hodges asked for the next steps and stated the County Commission would be getting with their County Administrator to determine the numbers,what was the role of the City Commission. Chairman Vidricksen stated his board would try to determine the numbers and what they would like for a lease and provide the information to the City Commission. Michael Montoya, County Counselor, asked if we enter into an agreement would the County Commission be bound to the number of years and there still be a termination clause. Chairman Vidricksen stated there would need to be an appropriate termination clause in the agreement. b). Discussion. ADJOURNMENT Page 4 i 19-0416 Moved by Commissioner Hay, seconded by Commissioner Hodges,that the special meeting of the Board of City Commissioners be adjourned. Aye: (4). Nay: (0). Motion carried. The meeting adjourned at 7:18 p.m. [SEAL] Trent W. Davis,M.D.,Mayor ATTEST: agck �Shandi Wicks, M ,City Clerk i Page 5