08-06-2020 Minutes (Special) CITY OF SALINA,KANSAS
SPECIAL MEETING OF THE BOARD OF COMMISSIONERS
August 6,2020
4:00 p.m.
Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City
Commission meeting. The Clerk replied yes.
The Special 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: Mayor Michael L. Hoppock (presiding), Commissioners
Trent W. Davis,M.D., Rod Franz and Karl F. Ryan.
Also present: Michael Schrage, City Manager; Greg Bengtson, City Attorney; and Shandi Wicks,
City Clerk.
Absent: Commissioner Melissa Rose Hodges.
ADMINISTRATION
(3.1) Election of temporary chair.
Mayor Hoppock recused himself due to a conflict of interest on both items on the agenda. He
stated with the absence of the Vice-Mayor Melissa Hodges, an election of a temporary chair was
necessary.
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20-0260 Moved by Commissioner Franz, seconded by Commissioner Ryan, to elect Trent Davis as
temporary chair for the meeting. Aye: (4). Nay: (0). Motion carried.
(3.2) Request for executive session (financial affairs or trade secrets)
20-0261 Moved by Commissioner Ryan, seconded by Commissioner Franz, to recess into executive session
for 10 minutes to discuss the subject of a specific economic development prospect and its project
identified as "Project Gemini" based upon the need to discuss data relating to financial affairs or
trade secrets of corporations, partnerships, trusts, and individual proprietorships, pursuant to
K.S.A. 75-4319(b)(4). The open meeting will resume in this room at 4:15 p.m. Aye: (3). Nay: (0).
Motion carried.
The City Commission recessed into executive session at 4:05 p.m. and reconvened at 4:15
p.m.
Also present in executive session: Mitch Robinson, Salina Community Economic
Development Organization Executive Director, Sarah Steele, Gilmore & Bell; and Mike
Schrage,City Manager.
(3.2a) Possible action to follow,including:
Possible consideration of a resolution relating to Project Gemini determining the advisability of
and the City's intent to issue its industrial revenue bonds to finance the costs of acquiring,
constructing and equipping facilities; and determining the associated ad valorem property tax
abatement.
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Michael Schrage, City Manager, explained the Request for Proposals received and
preliminary negotiations relating to Project Gemini. He continued to provide information
on the issuance of industrial revenue bonds, the net effect, property tax abatement, fiscal
impact and action options. He also reviewed the resolution in detail.
Commissioner Franz recalled a policy on industrial revenue bonds and asked if the project
was in conformance with the policy. Mr. Schrage stated the resolution did include
investment thresholds and employment thresholds along with a cost benefit analysis
requirement.
Commissioner Davis asked if the documents would include the performance agreement.
Mr. Schrage stated yes.
Commissioner Davis asked for an explanation of the limited obligation of the bonds. Sarah
Steele, Gilmore & Bell, explained the sole liability of the industrial revenue bonds and the
debt of the bonds were the responsibility of the company and not the City of Salina.
Commissioner Davis asked if an administrative fee could be charged. Ms. Steele stated yes
but was limited to the value spent yearly on the bonds. She continued to state the fees she
generally saw were between$1,000 and$3,000.
20-0262 Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20-
7864 determining the advisability of the City of Salina, Kansas, to issue its industrial revenue
bonds in one or more series in the approximate principal amount of$20,000,000 to finance the costs
of acquiring, constructing and equipping multiple facilities for the benefit of a company currently
referenced as Project Gemini located within the environs of the city, and its successors and assigns.
Aye: (3). Nay: (0). Motion carried.
(3.3) Request for executive session (financial affairs or trade secrets)
20-0263 Moved by Commissioner Ryan, seconded by Commissioner Franz, to recess into executive session
for 25 minutes to discuss the subject of a specific economic development prospect and its project
identified as "Project Rise" based upon the need to discuss data relating to financial affairs or trade
secrets of corporations, partnerships, trusts, and individual proprietorships, pursuant to K.S.A. 75-
4319(b)(4). The open meeting will resume in this room at 4:55 p.m. Aye: (3). Nay: (0). Motion
carried.
The City Commission recessed into executive session at 4:30 p.m. and reconvened at 4:55
p.m.
Also present in executive session: Mitch Robinson, Salina Community Economic
Development Organization Executive Director; Sarah Steele, Gilmore & Bell; Tim Rogers,
Airport Authority Executive Director; Greg Bengtson, City Attorney; and Mike Schrage,
City Manager.
(3.3a) Possible action to follow,including:
Possible consideration of a resolution relating to Project Rise determining the
advisability of and the City's intent to issue its industrial revenue bonds to
finance the costs of acquiring, constructing and equipping facilities;
determining the associated ad valorem property tax abatement; approving
the application for Salina Economic Development Incentive Program funds
to be used as a match for a federal Economic Development Administration
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grant; and approving payment from the City's General Fund as a match for a
Kansas Department of Transportation economic development grant for
street related improvements.
Michael Schrage, City Manager, explained the Request for Proposals received and
2 preliminary negotiations relating to Project Rise. He continued to provide information on
the issuance of industrial revenue bonds; the net effect; property tax abatement; payment
from the City's General Fund as a match for a Kansas Department of Transportation
(KDOT) economic development grant for street related improvements; Salina Economic
Development Incentive Program matching funds to be used to match the federal Economic
0 Development Administration (EDA) funds; fiscal impact; and action options. He also
reviewed the resolution in detail.
Commissioner Davis asked if here was a statutory limit on the number of industrial
revenue bonds the City of Salina could have. Sarah Steele, Gilmore&Bell,stated no.
Commissioner Davis asked for the funding source for the economic development and street
related improvements. Mr. Schrage stated the $650,000 would be funded from the City's
Economic Development Fund and the $900,000 would be funded from the City's street
project budget and the funds.
20-0264 Moved by Commissioner Ryan, seconded by Commissioner Franz, to adopt Resolution No. 20-
7865 determining the advisability of the City of Salina, Kansas, to issue its industrial revenue
bonds in one or more series in the approximate principal amount of $600,000,000 to finance the
costs of acquiring, constructing and equipping multiple facilities for the benefit of a company
currently referenced as Project Rise located within the environs of the city, and its successor and
assigns Aye: (3). Nay: (0). Motion carried.
(3.3b) Possible consideration of an ordinance on first reading unconditionally
approving the issuance of general obligation bonds by the Salina Airport
Authority for the purpose of financing the cost of certain capital
improvements located at the Salina Regional Airport and Airport Industrial
Center.
Michael Schrage,City Manager, explained the request, the project, Salina Airport Authority
action, the mill levy of the Salina Airport Authority for 2020 and 2021, fiscal impact and
action options.
Commissioner Ryan thanked all of the parties involved for their hard work on the project.
Commissioner Davis noted a difference in the bond amount on the ordinance and the
resolution of the Salina Airport Authority. Tim Rogers, Salina Airport Authority, Executive
Director, stated it should read$2,200,000.00.
20-0265 Moved by Commissioner Franz, seconded by Commissioner Ryan, to pass Ordinance No. 20-11038
unconditionally approving the Issuance of General Obligations Bonds by the Salina Airport
Authority for the Purpose of Financing the Cost of Certain Capital Improvements Located at the
Salina Regional Airport and Airport Industrial Center on first reading with the correction of the $
2,000,000.00 bond amount to be listed as $2,200,000.00 in all locations of the ordinance. Aye: (3).
Nay: (0). Motion carried.
ADJOURNMENT
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20-0266 Moved by Commissioner Ryan, seconded by Commissioner Franz, that the special meeting of the
Board of City Commissioners be adjourned. Aye: (3). Nay: (0). Motion carried. The meeting
adjourned at 5:15 p.m.
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[SEAL] Michael L. H ock,Mayor
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ATTEST:
SAOLIACti
Shandi Wicks,CMC,Ci Clerk
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