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7.1 Resolution 22-8023 Rural Housing Incentive DistrictAGENDA SECTION NO: ITEM NO: Page 1 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. ORIGINATING DEPARTMENT: Community & Development Services BY: Lauren Driscoll FISCAL APPROVAL: BY: FINAL APPROVAL: BY: 14-1 1;�� ITEM: Resolution No. 22-8023 A resolution making certain findings and determinations as to the need for housing within the City of Salina, Kansas and setting forth the legal description of real property proposed to be designated as a Rural Housing Incentive District (RHID) within the City. BACKGROUND: Resolution No. 16-7315 adopting and implementing the 2015 Live Salina Housing Assessment and the Strategic Plan was adopted by the Salina City Commission on January 25, 2016. This resolution, the associated assessment and plan were the result of 18 months' worth of work with RDG Planning and Design Group, a consulting firm based out of Omaha, Nebraska. Since 2016, Salina has been successful in becoming the chosen expansion location of several economic development prospects. One Vision, a commercial airplane restoration company, has relocated to Salina from Sioux City, Iowa bringing 200+ new jobs and recently indicating their desire for additional employment expansion. Schwan's and Great Plains Manufacturing have both announced substantial expansions that will result in 635 new jobs by 2025 with Great Plains estimating another 200 new jobs between 2025 and 2030. Additional growth in the community, supported by these new jobs and the completion of the Downtown Revitalization Project, should result in 263 new jobs in Downtown according to Salina 2020. Associated industries like medical, education, retail, and entertainment will be affected by the influx of new jobs and are expected to see an increase in their own employment needs in order to meet new demands. A direct impact on the community created by the generation of new jobs is an increased need for housing. Salina and Saline County's current available employment population is not enough to meet these new employment demands, therefore, new employees will be needed from outside the community. The Salina housing market has been tight for a number of years. Since 2015 the City has only added 103 new single family residential units which equates to an average of 17 units per year. In addition to a low inventory of available homes to purchase, the City's rental stock is substantially challenged with most apartment complexes being limited by tenant age and/or income requirements. All of these barriers combined have created a challenging housing market within Salina for both rental and ownership. In January of 2021 the City began working again with RDG Planning and Design Group (RDG) to update the 2015 Live Salina Housing Assessment and Strategic Plan. The purpose of updating the plan has been to ensure that the community's demographics and new employment numbers are as current as possible, allowing the City to understand the projected housing need. Additionally, the City wanted the updated plan to objectively assess the housing development challenges and costs with the anticipation that developers would be seeking financial assistance or incentives in the future from the City. As a part of this project RDG helped research and develop a housing incentive policy for the City to follow as a way to meet the City's housing goals, ensure financial viability and timely development of new housing. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY. Community & Development Services ITEM FINAL APPROVAL: NO: Page 2 BY: Lauren Driscoll BY: Traditionally, housing incentives have been used to produce units at a certain price point(s) or to get units into communities where building was not feasible. These policies resulted in housing incentives mainly being applied to the most urban and most rural communities in our country. Today, we are in a national housing crisis where demand is exceptionally high, building materials are exceptionally expensive, the supply chain is slow, manual labor is limited and lending is tight. Developers know that all communities have a need for housing right now and they can be selective, doing projects only where the risk is lowest and access to supplies and labor are easiest. That is why housing incentives are becoming more and more common as cities of all sizes struggle to house their citizens. Housing incentives are typically addressed through a taxing mechanism, grant or program administered by local, state and federal authorities. The City Commission has had several presentations since February reviewing different incentive tools. Salina has several incentive programs adopted locally that can be used to incentivize housing: Community Improvement Districts, the Neighborhood Revitalization Program, and Special Redevelopment Areas. The City can also authorize Industrial Revenue Bonds for large scale multi -family projects that qualify as a commercial venture rather than construction of owner occupied housing. Three state programs available for incentivizing residential development include: Rural Housing Incentive District (RNID), Low Income Housing Tax Credit (LIHTC), and Moderate Income Housing grants (MIH). Part of RDG's work with the City during the Live Salina Update included understanding how these incentives work in relation to the City's housing needs, what incentives apply best in which situation, and if there are other incentives that need to be developed for the City's use. In February 2021, Marty Shukert of RDG, presented his findings related to the Live Salina Plan Update to the City Commission and gathered their feedback with the ultimate goal of creating a new housing incentive policy. There were a total of 5 presentations with the first one on February 2, 2021 and the last one on May 10, 2021. The City Commission adopted the 2021 Live Salina Supplemental Update via Resolution No. 21-7970 on July 12, 2021 and a Residential Housing Incentives Policy via Resolution No. 21-7971 on July 19, 2021. As anticipated the housing incentive policy includes specifics for both IRB and RHID. The City has only ever adopted one other RHID. In 2021, the City created an RHID district for South View Estates (formerly known as Ryan Addition). That district includes 108 units (42 single family homes and 66 townhome units) of owner -occupied housing and is currently in phase I of construction. Price points for this subdivision are required to be no more than $225,000 for single family detached homes and $190,000 for townhomes. The development agreement for this property was entered into on August 30, 2021 and is for 25 years. Construction has begun on this project. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: Community & Development BY: ITEM Services FINAL APPROVAL: NO: Page 3 BY: Lauren Driscoll BY: ECONOMIC DEVELOPMENT TOOLS: Rural Housing Incentive Districts (RNID): RHID is a program designed to aid developers to build housing within communities by assisting in the financing of public improvements. RHID captures the incremental increase in real property taxes created by a housing development project for up to a maximum of 25 years. In order to take advantage of the incentive, property must be within a designated redevelopment district. Districts are defined by the City or County and must be based on the Housing Needs Analysis. RHID n is authorized for any city in Kansas with a population s less than 60,000 in a county with a population of less a than 80,000 or for any county with a population of less than 40,000. (K.S.A. 12-5241 et seq.) In order to use an RHID as an economic incentive tool, rymeJ Time several steps must be taken starting with the adoption of a resolution finding a shortage of quality housing within the identified district. The purpose of this resolution is to serve as a formal action of the decision making body to the State's Department of Commerce to initiate approval of the district for the purpose of the RHID program as defined by state statue. Following approval by the Department of Commerce a development agreement and district development plan must be developed and brought to the City Commission for Action. In order for the City Commission to act, a Resolution calling for a public hearing must occur 30-70 days prior to the hearing. Notice of the public hearing must be delivered to the County and USD 305 and published in the Salina Journal two (2) weeks prior to the hearing. Following the public hearing there is a 30 day protest period for the County and USD 305. The initial RHID resolution, designating an RHID eligible area, is included with this packet and proposed for consideration and action by the Commission. This is just the first step of several if the City Commission chooses to form an RHID. For further review, a detailed timeline regarding the RHID process is attached and contains highlighted sections denoting how this meeting's actions pertain to that timeline. Moderate Income Housing Program (MIH): The MIH program is administered by Kansas Housing Resources Corporation (KHRC) and serves the needs of moderate -income households that typically don't qualify for federal housing assistance. MIH grants and/or loans are awarded to cities and counties for down payment assistance or to develop multi -family rental units, single-family for -purchase homes, and infrastructure in communities with populations fewer than 60,000 people. $400,000.00 is the maximum amount that can be applied for and the monies that fund this program come from the State Housing Trust Fund. The application process tvoically ooens in July with aDDlicants resDondina to an RFP issued by KHRC. The response CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: Community & Development BY: ITEM Services FINAL APPROVAL: NO: Page 4 BY: Lauren Driscoll BY: is usually due in September with awards being announced by November/December. Unlike the Low Income Housing Tax Credit (LIHTC) program also administered by KHRC, where the developer applies directly to KHRC, MIH requires that the City apply on behalf of the developer and the money be awarded directly to the city. CURRENT REQUEST(S): Building Kansas, LLC, is seeking City Commission support in the use of an RHID as an economic incentive tool for a residential housing project. They also plan to make application to the Moderate Income Housing program and request a waiver of City building permit fees, in conjunction with the RHID. In order for developers to provide sufficient information to the City Commission, staff developed a Residential Housing Incentive Request Form. The request form and the associated support materials are attached. This project is located on a vacant 53.26 acre parcel south of West Magnolia Road and west of 1-135. The maps and legal description for this property are attached to Resolution No. 22-8023. The site has been annexed into the city limits and applications to rezone the property to R-2 for townhome development and to subdivide the property have been filed and are under consideration by the Planning Commission. This project has access to water and sewer but neither are installed within the proposed site. This property is landlocked with no frontage on an existing public street. The land owners have obtained a commitment from the Salina Airport Authority to allow street access across a vacant tract of land owned by the Salina Airport Authority in order to provide direct street access to Centennial Road. Therefore, the property only has frontage on one road, Centennial Road, which is improved to City standards. It has been proposed that this property will have an interim second emergency only access drive off of Foxboro Drive. This land is subject to a benefit fee of $145,210 for water line improvements. No other special assessments or benefit fees currently applied to this property. Only the far eastern edge of this property adjacent to Dry Creek is within a mapped floodplain or floodway and none of the proposed building lots are affected. There is a flood control levee between the end of the Foxboro Drive right-of-way and the edge of this subdivision. The Planning Commission on February 15, 2022 at a regular meeting approved 5-0 the Preliminary Plat of the Aero Plain Subdivision. This project is being proposed by Building Kansas, LLC, a group comprised of local developers including Derek Lee and Lance Cochran. This project's total build -out is 169 lots each with two units (townhomes) per lot, therefore the total number of units at build -out will be 338. The project is being built in two phases with phase one being 75 lots with 150 units and the second phase being 94 lots with 188 units. The applicant, Building Kansas, LLC, is requesting that the City Commission approve the formation of an RHID district over the entire Aero Plains Subdivision. Building Kansas, LLC plans to then seek RHID tax status from the City Commission for Phase I of the project. Construction of Phase I will create 150 new units of owner occupied townhomes with three years. The total project cost is $37,500,000.00. The costs breakdown as follows: 1.) Land Acquisition Cost: $375,000.00 2.) Buildina Constructions Costs: $32,300,000.00 AGENDA SECTION NO: CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. ORIGINATING DEPARTMENT: I FISCAL APPROVAL: Community & Development ITEM Services NO: Page 5 BY: Lauren Driscoll 3.) Infrastructure Construction Costs: $3,000,000.00 4.) Soft Costs: 350,000.00 / Brokerage & Sales $1,475,000.00 M BY: Annual property taxes are estimated to be $960,868.00. The developer is hoping for a 6-12% return on investment that included the RHID incentive from the City and the potential awarding of $400,000.00 from the State's Moderate Income Housing (MIH) grant program. This project is also requesting a waiver of building permit fees for aill50 units. The RHID terms being requested are 25 years at 100% property tax abatement. Live Salina Plan: 2021 Update — New Housing Development Program As per the Live Salina Plan's revised demographics, the table below highlights the number of units needed for owner occupied and rental housing in order to meet future needs. The table shows two times periods; now to 2025 and 2025 to 2030. The calculations below the table are based on the number of units needed between now and 2025. Needed Units Owner Occupied Units Now - 2025 4�32 (-108 Ryan Addition, Approved 10/2021) 324 (-150 Aero Plains) 174 2025-2030 K-1 Aero Plains Addition: • Owner Occupied • 75 lots 150 Units, Townhomes • Needed Owner Occupied Units 432 — 108 New Units in Ryan Addition = 324 — 150 Proposed New Units in Aero Plains Addition = 174 If this project is approved, our "now — 2025 needed units of owner occupied" would drop from 324 to 174. FISCAL NOTE: As a reminder, this request is to only designate an area eligible for an RHID district. Resolution No. 22- 8023 has no immediate financial impact on the City or any other taxing entity. The creation of an RHID CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: Community & Development BY: ITEM Services FINAL APPROVAL: NO: Page 6 BY: Lauren Driscoll BY: district requires two more actions of the City Commission. The first is a call for a public hearing and then holding the public hearing where the City Commission can take action to adopt the RHID Development Agreement and associated Ordinance forming the taxing relationship with the project. It is the adoption of the development agreement and Ordinance that creates the fiscal impact. In anticipation of that future fiscal decision, staff has worked with Bond Council to develop a fiscal impact estimate. Based on the estimated assessed value and current taxing calculations relevant to property taxes for an RHID, the following taxes would not be collected if an RHID was formed as proposed by the applicant: Aero Plains Addition Request: 25 years at 100% • Estimated Eligible Expenses $3,375,000 o These are the expenses that can be paid back using the RHID increment • Estimated RHID Increment $11,098,704 o The 25 year increment exceeds eligible expenses, therefore the RHID will terminate prior to 25 years. Bond Council estimates RHID termination around year nine or ten. City of Salina, Kansas Aero Plains RHID Phase 1 Project Estimated Eligible Expense! Estimated RHID Increment Taxine Units: City USD 305 state County Library Airport Authority Extension Dist #3 Total $3,375,000 $11,098,704 Further information regarding the financial estimates of this proposed RHID have been attached. Aggregate Aggregate Fiscal 2021/2022 Fiscal Impact Impact to Payout Mill Lely 25 years of Eligible Expenses 30.452 S 2,883,794 $ 876,932 54.903 3,305,302 1,005,108 1.5 39.782 3,767,341 1,145,609 6.028 570,849 173,589 4.838 458,157 139,321 1.196 113,261 34,441 138.699 $ 11,098,704 $ 3,375,000 Further information regarding the financial estimates of this proposed RHID have been attached. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 03/28/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY. Community&Development Services ITEM FINAL APPROVAL: NO: Page 7 BY: Lauren Driscoll BY: Staff has identified the following options for the City Commission's consideration: 1.) Approve Resolution No. 22-8023. 2.) Approve Resolution No. 22-8023 with and/or further direction regarding development agreement provisions, additional steps to be taken, etc. amendments as the City Commission deems appropriate. 3.) Postpone consideration of Resolution No. 22-8023 to a specified date and time and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 4.) Deny Resolution No. 22-8023 resulting in staff not submitting a Resolution to the State of Kansas Department of Commerce for the creation of an RHID. Attachments: 1. Aero Plains Addition - Residential Housing Incentive Request Form 2. Map 3. RHID Timeline 4. Financial Estimates 5. 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A 3 3 3 3 i a w y m m Q m a (n m s a e Q •• O C C r� g 3 $ j 3 T o \ z N op D OO H nv � 6 m r T Q m O a p' D � o�»ds d m V \mai x � z w N Z m W D v M m z z a • � z c 3 a o n c m o m � � m \ m Z d OOO m �m rD ^tn rD r -t m E rD rf T 0 s rl | Z/' &\: | . - §(" (- _/\(� ¥(\\\ if{ 0,a�m : E$ _ \ -( \} } (\ ![aE !&*{ ![{E \ � \� ( {\§ {( f!! - {�\ \ ) \ tA - (- _/\(� ¥(\\\ if{ 0,a�m _ } SL f (\ ; ■ % )( ) }� (} 2 0 0 ) } \ \ }\} / ) |!$ � ( E§: / k! �} \ | I Rd Rd 1 inch = 600 feet Area Salina RHID Timefine Everything highlighted in yellow is what is being addressed at the 03/28/2022 Meeting Housing Needs Analysis • Must meet the standards set forth in K.S.A. 12-5244 & Secretary of Commerce Guidelines (a) The governing body of any city or county is hereby authorized to designate rural housing incentive districts within such city or county. Any city governing body may designate one or more such districts in such city, and any county governing body may designate one or more such districts in any part of the unincorporated territory of such county. Prior to making such a designation, the governing body shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community. After conducting the analysis, the governing body shall adopt a resolution containing a legal description of the proposed district, a map depicting the existing parcels of real estate in the proposed district, and a statement of the following findings and determinations: (1) There is a shortage of quality housing of various price ranges in the city or county despite the best efforts of public and private housing developers; (2) The shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in such city or county; (3) The shortage of quality housing is a substantial deterrent to the future economic growth and development of such city or county; and (4) The future economic well-being of the city or county depends on the governing body providing additional incentives for the construction or renovation of quality housing in such city or county. NOTE: The City will/can use the Live Salina Plan and associated update to submit as our a statement of the following findings and determinations for items 1-4. (b) The resolution containing the findings contained in subsection (a) shall be published at least once in the official newspaper of the city or county. (c) Upon publication of the resolution as provided in subsection (b), the governing body shall send a certified copy of the resolution to the secretary, requesting that the secretary review the resolution and advise the governing body whether the secretary agrees with the findings contained therein. If the secretary advises the governing body in writing that the secretary agrees with each of the findings of the governing body, the governing body may proceed to establish the district as set forth in this act. If the secretary fails to agree with the findings, the secretary shall advise the governing body in writing of the specific reasons therefor. Resolution No. l • City Council Adoption of Resolution No. 1 (per K.S.A. 12-5244) • Must be published at least once in official newspaper of City/County (per K.S.A. 12- 6244(b) Secretary of Commerce Approval HNA, typically within 30-45 days Certified copy of resolution submitted to Secretary (K.S.A. 12-6245) Upon Approval of Resolution No. 1 and Housing Needs, proceed to Resolution No. 2 Development Plan/Agreement Preparation • Negotiate Draft Development Plan/Agreement • Planning Commission Consideration/Approval of final plan Resolution No. 2 • Comply with K.S.A. 12-5245 Prior to the adoption of the plan and designation of the district, the governing body shall adopt a resolution stating that the governing body is considering such action. The resolution shall provide notice that a public hearing will [be] held to consider the adoption of the plan and the designation of the district and contain the following elements: (1) The date, hour and place of the public hearing; (2) The contents of paragraphs (1) through (4) in subsection (a) of this section; (3) A summary of the contractual assurances by the developer and comprehensive feasibility analysis; and (4) A statement that the plan is available for inspection at the office of the clerk of the city or county at normal business hours; (5) A statement inviting members of the public to review the plan and attend the public hearing on the date announced in the resolution; The date fixed for the public hearing shall be not less than 30 nor more than 70 days following the date of the adoption of the resolution. The resolution shall be published at least once in the official newspaper of the city or county, with the final publication being not less than one week or more than two weeks preceding the date fixed for the public hearing. A certified copy of the resolution shall be delivered to the planning commission of the city or county and the board of education of any school district levying taxes on property within the proposed district. If the resolution is adopted by a city governing body, a certified copy also shall be delivered to the board of county commissioners of the county. If the resolution is adopted by a county governing body, it also shall be delivered to the governing body of any city located within three miles of such proposed district. • Prior to Adoption of Plan & District must Adopt Resolution • Resolution Noticing Public Hearing to be Held Public Hearing Preparation Public Hearing must be held not less than 30 nor more than 70 days following the date of the adoption of Resolution No. 2 Resolution must be published at least once in official newspaper. Final publication not less than one week or more than two weeks preceding the date fixed for the public hearing. Certified copy of Resolution No. 2 provided to Planning Commission of City/County and BOE Public Hearing • Comply with K.S.A. 12-5246 • (a) At the public hearing, a representative of the city or county shall present the proposed plan for the development or renovation of housing in the proposed district. Each project proposed for the district shall be identified and explained. At the hearing the developer or developers that have contracted with the city to undertake such project shall be identified and present in person or through such developer's representative. Following the presentation, all interested persons shall be given an opportunity to be heard. The governing body for good cause shown may recess such hearing to a time and date certain, which shall be fixed in the presence of persons in attendance at the hearing. (b) Upon the conclusion of the public hearing, the governing body may adopt the plan for the district and may establish the district by ordinance or, in the case of any county, by resolution. The boundaries of such district shall not include any area not designated in the notice required by K.S.A. 12-5245 . Any addition of area to the district or any substantial change to the plan shall be subject to the same procedure for public notice and hearing as required for the initial establishment of the district. (c) The ordinance or resolution establishing the district shall be null and void if, within 30 days following the conclusion of the hearing: (1) The board of education levying taxes on such property determines by resolution that the proposed district will have an adverse effect on such school district; (2) the governing body of any city located within three miles of [the]district proposed to be established by a county determines by ordinance that the proposed district will have an adverse effect on such city; or (3) the board of county commissioners of the county in which a city governing body proposes to establish such a district determines by resolution that the proposed district will have an adverse effect on such county. • Representative of City presents proposed plan for development and each project. Developers must be present. Any interested party may be heard. • At conclusion of hearing, Governing Body may establish district by ordinance (City) or Resolution (County). Veto Procedure • If within 30 days following the hearing, the Board of Education or City/County finds an G°adverse effect" the Ordinance is null and void. : S ! Q ! , | \/F|® 2222! (\ :__:;,:,:_:::::,;:,Eu:,•-( )� \)} ��r; ~: `; , !..�.,...,�_....,� - - /\ �| )2 - G!=- _ G / q (E \ Gilmore & Bell, P.C. 03/24/2022 EXCERPT OF MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF SALINA KANSAS HELD ON MARCH 28, 2022 The City Commission (the "Governing Body") met in regular session at the usual meeting place in the City at 4:00 p.m., the following members being present and participating, to -wit: Absent: The Mayor declared that a quorum was present and called the meeting to order. ************** (Other Proceedings) There was presented a Resolution entitled: A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. Commissioner moved that the Resolution be adopted. The motion was seconded by Commissioner The Resolution was duly read and considered, and upon being put, the motion for the adoption of the Resolution was carried by the vote of the governing body as follows: Yea: Nay: The Mayor declared the Resolution duly adopted and the Resolution was then duly numbered Resolution No. 22-8023 and was signed by the Mayor and attested by the Clerk. The Clerk was directed to arrange for the publication of the Resolution one time in the official newspaper of the City. ************** (Other Proceedings) [BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK] 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS V.3 CERTIFICATE I hereby certify that the foregoing Excerpt of Minutes is a true and correct excerpt of the proceedings of the governing body of the City of Salina, Kansas held on the date stated therein, and that the official minutes of such proceedings are on file in my office. (SEAL) Clerk 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS (Signature Page to Excerpt of Minutes) Gilmore & Bell, P.C. 03/24/2022 (Published in the Salina Journal on April 1, 2022) RESOLUTION NO. 22-8023 A RESOLUTION MAKING CERTAIN FINDINGS AND DETERMINATIONS AS TO THE NEED FOR HOUSING WITHIN THE CITY OF SALINA, KANSAS AND SETTING FORTH THE LEGAL DESCRIPTION OF REAL PROPERTY PROPOSED TO BE DESIGNATED AS A RURAL HOUSING INCENTIVE DISTRICT WITHIN THE CITY. WHEREAS, K.S.A. 12-5241 et seq., as amended (the "Act') authorizes any city incorporated in accordance with the laws of the state of Kansas (the "State") with a population of less than 60,000 to designate rural housing incentive districts within such city; and WHEREAS, prior to such designation the governing body of such city shall conduct a housing needs analysis to determine what, if any, housing needs exist within its community; and WHEREAS, after conducting such analysis, the governing body of such city may adopt a resolution making certain findings regarding the establishment of a rural housing incentive district and providing the legal description of property to be contained therein; and WHEREAS, after publishing such resolution, the governing body of such city shall send a copy thereof to the Secretary of Commerce of the State (the "Secretary") requesting that the Secretary agree with the finding contained in such resolution; and WHEREAS, if the Secretary agrees with such findings, such city may proceed with the establishment of a rural housing incentive district within such city and adopt a plan for the development or redevelopment of housing and public facilities in the proposed district; and WHEREAS, the City of Salina, Kansas (the "City") has an estimated population less than 60,000 and therefore constitutes a city as said term is defined in the Act; and WHEREAS, the Governing Body of the City has performed a Housing Needs Analysis (Live Salina Housing Assessment and Strategic Plan) dated January 25, 2016 (the "Needs Analysis"), a copy of which is on file in the office of the City Clerk; and WHEREAS, based on the Needs Analysis, the Governing Body of the City proposes to commence proceedings necessary to create a Rural Housing Incentive District, in accordance with the provisions of the Act. 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS V.3 I THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby adopts and incorporates by this reference as part of this Resolution the Needs Analysis, a copy of which is on file in the office of the City Clerk, and based on a review of said Needs Analysis makes the following findings and determinations. Section 2. The Governing Body herby finds and determines that there is a shortage of quality housing of various price ranges in the City despite the best efforts of public and private housing developers. Section 3. The Governing Body hereby finds and determines that the shortage of quality housing can be expected to persist and that additional financial incentives are necessary in order to encourage the private sector to construct or renovate housing in the City. Section 4. The Governing Body hereby finds and determines that the shortage of quality housing is a substantial deterrent to the future economic growth and development of the City. Section 5. The Governing Body hereby finds and determines that the future economic well- being of the City depends on the Governing Body providing additional incentives for the construction or renovation of quality housing in the City. Section 6. Based on the findings and determinations contained in Sections 2 through S of this Resolution, the Governing Body proposes to establish a Rural Housing Incentive District pursuant to the Act, within boundaries of the real estate legally described in Exhibit A attached hereto, and shown on the maps depicting the existing parcels of land attached hereto as Exhibit B (the "District"). Section 7. The City Clerk is hereby directed to publish this Resolution one time in the official City newspaper, and to send a certified copy of this Resolution to the Secretary for the Secretary's review and approval. Section 8. The Mayor, City Manager, City Clerk, other City employees and officials and Gilmore & Bell, P.C. are hereby further authorized and directed to take such other actions as may be appropriate or desirable to accomplish the purposes of this Resolution. Section 9. This Resolution shall take effect after its adoption and publication once in the official City newspaper. [BALANCE OF THIS PAGE INTENTIONALLY BLANK] 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS V.3 2 ADOPTED by the Governing Body of the City of Salina, Kansas, on March 28, 2022. (SEAL) Trent W. Davis, M.D., Mayor ATTEST: JoVonna A. Rutherford, City Clerk 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS (Signature Page to Resolution) CERTIFICATE 1 hereby certify that the above and foregoing is a true and correct copy of the Resolution No. 22-8023 adopted by the Governing Body of the City on March 28, 2022, as the same appears of record in my office. DATED: March 28, 2022 JoVonna A. Rutherford, City Clerk 600596.20002\RESOLUTION HOUSING NEEDS FINDINGS (Signature Page to Resolution Certificate) EXHIBIT A LEGAL DESCRIPTION OF PROPOSED RURAL HOUSING INCENTIVE DISTRICT A portion of the North Half of the Southwest Quarter of Section 35, Township 14 South, Range 3 West of the Sixth Principal Meridian, County of Saline, State of Kansas, being described by as follows: Commencing at the center corner of said Section 35: thence N 89045'10" W along the North line of said North Half, a distance of 327.92 feet to the intersection of said North line and the Centerline of Dry Creek, said point also being the point of beginning; thence S 01'56'22" E on said Centerline, a distance of 146.36 feet; thence S 30147'12" W continuing on said Centerline, a distance of 413.69 feet; thence S 00°56'52" W continuing on said Centerline; a distance of 136.71 feet; thence S 10154'41" E continuing on said Centerline, a distance of 406.12 feet; thence S 10°43'00" W continuing on said Centerline, a distance of 240.29 feet to the intersection of said Centerline and the North line of Wheatridge Addition to the City of Salina; thence N 89°38'06" W on said North line, a distance of 398.86 feet; thence N 00'19'09" E continuing on said North line, a distance of 250.32 feet; thence N 89°37'09" W continuing on said North line and it prolongation, a distance of 1718.33 feet to the intersection of said North line's prolongation and the West right-of-way line of the Missouri Pacific Railroad, said railroad right-of-way disclaimed by Deed Book 1232, Pages 959-961 in the Office of the Register of Deeds of Saline County; thence N 00°06'43" W on said west right-of-way line, a distance of 1018.85 feet to the intersection of said west right-of-way line and the North line of said North half; thence S 89'45'10" E on said North line, a distance of 2294.62 feet to the point of beginning. Said Tract contains 53.22 acres more or less. Together with public rights-of-way and access easement areas adjacent thereto 600596.20002UtESOLUTION HOUSING NEEDS FINDINGS V.3 A-1 EXHIBIT B MAP OF PROPOSED RURAL HOUSING INCENTIVE DISTRICT 1 inch = 600 feet 600596.20002V2ESOLUTION HOUSING NEEDS FINDINGS V.3 B-1