Loading...
7.3 Resolution No. 22-8045 Special Improvement District Stone LakeCITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/23/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: 7 BY: ITEM PUBLIC WORKS FINAL APPROVAL: NO: 3 Page 1 BY: Daniel R. Stack, P.E. BY: ITEM: Resolution 22-8045 Advisability and Authorization Resolution No. 22-8045 related to establishment of a special improvement district for water, sanitary sewer, street, and drainage improvements in Stone Lake Phase 3c and authorization of the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. BACKGROUND: The Salina City Planning Commission met on July 6, 2010, and considered a final plat application for Phase I of the Stone Lake Addition, a proposed 161 lot subdivision of a 100 acre tract of land located at the northeast corner of Schilling Road and Ohio Street. On May 7, 2012, the City Commission approved Resolution 12-6904 authorizing a special assessment benefit district for street, water and sanitary sewer improvements serving Phase I of the Stone Lake Addition. Development of the subdivision began in 2013. The Special Assessment Policy Resolution No. 18-7556 (replacing Resolution No. 89-4066 and adopted by the City Commission on May 21, 2018, set out a two-step review process. The developer first submits an Application and signed Form of Petition requesting approval to utilize special assessment financing for public improvement installation (step one). On April 23, 2019, the developer provided this information. The start of step two of the process occurred on June 17, 2019, as the City Commission authorized City staff to prepare Special Assessment Engineering Feasibility Report for Phase 3a., 3b. and 3c. of the Stone Lake Addition. At the October 21, 2019, commission meeting the City Commission approved Resolution 19-7750 authorizing use of special assessments for improvements for Stone Lake Phase 2 (Bradley Trust) and Resolution 19-7751 authorizing use of special assessments for improvements for Stone Lake Phase 3a (Stone Lake Development, LLC). Phase 2 was a seventeen lot project and currently has seven building permits for new homes under construction. Phase 3a has forty-two lots and currently has twenty building permits for new homes under construction. Phase 3c of the Stone Lake development is zoned as a mixed use which contains thirty-one residential building lots and seven commercial building lots. The zoning breakdown of the lots is as follows: • R (Single -Family Residential) — 5 lots • R-1 (Single -Family Residential) — 20 lots • R-2.5 (Multi -Family Residential) — 6 lots • PC -2 (Planned Neighborhood Shopping) — 5 lots • PC -5 (Planned Service Commercial) — 1 lot The five lots zoned as R, are large, estate style lake front lots with an average size of 0.88 acre. The R-1 lots are approximately 0.27 acre and the R-2.5 lots are approximately 0.35 acre. On April 19, 2022, the attached Petition No. 4415 was submitted by Mr. Kelly R. Dunn, Member of Stone Lake Development, LLC, requesting certain street, drainage, water, and sanitary sewer improvements to AGENDA SECTION NO: ITEM NO: Page 2 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/23/2022 4:00 P.M. ORIGINATING DEPARTMENT: PUBLIC WORKS BY: Daniel R. Stack, P.E. FISCAL APPROVAL: BY: FINAL APPROVAL: W serve thirty-seven lots in Stone Lake Addition. Please see the attached resolution, petition and preliminary engineering feasibility report for a detailed description of the benefit district. City staff has worked with Stone Lake Development LLC on a development agreement to address issues related to the construction and financing of the improvements. The attached development agreement is similar to previous agreements approved for subdivision development where the developer contracts privately with the contractors and constructs the improvements. The City then reimburses the developer for eligible costs. It is prescribed by Kansas statutes that the City Commission consider a petition for street, drainage, sewer, and water improvements and establish sufficiency on the basis that any one of the following three conditions be met: 1.The petition is signed by a majority of the resident owners of record of property liable for assessment under the proposal. 2.The petition is signed by the resident owners of record of more than half of the area liable for assessment under the proposal. 3. The petition is signed by the owners of record, whether resident or not, of more than half of the area liable to be assessed under the proposal. In this case Condition No. 3 above is met and therefore meets the statute requirements for sufficiency. The Saline County Treasurer has indicated there are no delinquent special assessment taxes on any property owned by the petitioners. The engineering feasibility report for these public improvements describes the scope of the project, the improvement district, the method of assessment, cost estimate breakdowns for each improvement, and identifies and describes the properties in the benefit district. One -hundred percent (100%) of the cost of the improvements are proposed to be assessed to the benefit district. Costs include construction, construction contingency, inspection, design, and bonding/interest costs. A letter was recently received from several area developers requesting the term of bonds issued by the city to finance improvements be extended to twenty years. As per K.S.A. 12-06a10, 'The assessments, with accrued interest, shall be levied as a special tax upon the property included therein concurrent with general property taxes, and shall be payable in not more than 20 equal annual installments, as the governing body determines. The first installment shall be payable at the time of the first payment of general property taxes following the adoption of the assessment ordinance unless such ordinance was adopted and certified too late to permit its collection at such time." Resolution Number 98-5276 established policy for the installment time period allowed for the payment of special assessments. Section 1. States "it shall be the general policy of the City of Salina to provide for special assessments to be paid in either ten (10) annual installments, or fifteen (15) annual installments." CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/23/2022 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: FISCAL APPROVAL: NO: BY: PUBLIC WORKS ITEM FINAL APPROVAL: NO: Page 3 BY: Daniel R. Stack, P.E. BY Section 2. of 98-5276 states "At the time of petitioning for improvements under K.S.A. 12-6a01, et seq., the petitioners shall indicate a preference for a ten year of fifteen year installment payment period. The Governing Body shall make the determination as to the installment payment period in its resolution authoring the improvement." The Salina City Commission passed Resolution No. 18-7556 which amended and restated the policy for the financing of public improvements and repealed Resolution No. 17-7507. Section 12 (b) Maximum Term of Bonds states 'The term of bonds issued by the city to finance improvements may extend up to twenty (20) years, but absent special circumstances should not exceed fifteen (15) years." The property owners may choose to pay their share of the project costs as a lump sum payment or as an annual special assessment tax over the time period determined by the city commission beginning on the date that General Obligation bonds are issued by the city. The development agreement coincides with Resolution 18-7556 regarding financial guarantees and provides that the developer has submitted a letter of credit, cash or financial securities equal to 20% of the project costs prior to the City awarding any construction contractor or approving any development agreement for the project. FISCAL NOTE: One hundred percent (100%) of the estimated costs of $1,711,890.04 are to be assessed against the improvement district. The assessments in this subdivision are to be spread as a percentage of the total cost of the project and is based on the zoning classification of each lot as noted on page one of this report. An amortization of these costs assuming an interest rate of 4.00% and terms of 15 and 20 years is shown in the table below. The table also compares the annual assessed values of other existing and or pending subdivisions. Avg. Annual Payment Development 15 Year Term 20 Year Term Stone Lake Phase 3c (2024 est)' Zone R (5 lots) ($62,484.00) 5,619.88 Zone R-1 and R-2.5 (26 lots) ($36,446.14) 3,278.01 Zone PC -2 (Slots) ($46,854.00) 4,214.10 Zone PC -5 (1 lot) ($217,598.00) 19,571.00 Preliminary estimates Cedar Ridge Phase 2 (2023 est) 13 lotsz 4,856.82 2Preliminary estimate of assessment is $54,000 Wheatland Valley (2023 est) 29 lots3 3,453.74 3Preliminary estimate of assessment is $38,400 Magnolia Hills Estates No. 2 (2022) 29 lots 3,487.30 Stone Lake Phase 3a (2022) 45 lots 2,284.08 Stone Lake Phase 2 (2021) 17 lots 2,112.37 Pheasant Ridge No 3 Phase 2 (2021) 17 lots 2.394.10 4,597.68 2,681.77 3,447.60 16,011.24 AGENDA SECTION NO: ITEM NO: Page 4 CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 5/23/2022 4:00 P.M. ORIGINATING DEPARTMENT: PUBLIC WORKS BY: Daniel R. Stack, P.E. FISCAL APPROVAL: BY: FINAL APPROVAL: W This project will be financed through a temporary note, and rolled into long term bonds when construction is completed and costs finalized. Property owners will have the opportunity to pay the assessment in full prior to the bond issue. If they elect not to do so, the assessment plus related interest costs will be spread over a period of time not to exceed 20 years in equal annual installments. COMMISSION ACTION OR RECOMMENDED ACTION: Staff has identified the following options for the City Commission's consideration: 1.) Approve Resolution No. 22-8045 with a bond payment period of twenty (20) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. 2.) Approve Resolution No. 22-8045 with a bond payment period of fifteen (15) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC. 3.) Approve Resolution No. 22-8045 with a bond payment period of twenty (20) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC, with amendments as the City Commission deems appropriate. 4.) Approve Resolution No. 22-8045 with a bond payment period of fifteen (15) years and authorize the city manager to execute an Improvement District Development Agreement between the City of Salina and Stone Lake Development, LLC, with amendments as the City Commission deems appropriate. 5.) Postpone consideration of Resolution No. 22-8045 to a specified date and provide staff direction regarding additional information or amendments the City Commission would like to request for their further consideration. 6.) Deny Resolution No. 22-8045 resulting in denial of special assessment financing for this project. Staff recommends Option #1. Attachments: Resolution No. 22-8045 Petition 4415 Engineering Feasibility Report Development Agreement Stone Lake Phase 3c Improvement district map CC: Stone Lake Development, LLC (Published in the Salina Journal on 2022) RESOLUTION NUMBER 22-8045 A RESOLUTION SETTING FORTH FINDINGS AND DETERMINATIONS OF THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS ON THE ADVISABILITY OF AND AUTHORIZING THE CONSTRUCTION OF CERTAIN IMPROVEMENTS PURSUANT TO K.S.A. 12-6a01 etseq. WHEREAS, a petition was filed with the City Clerk for the City of Salina, Kansas (the "City") on , 2022, proposing certain improvements pursuant to K.S.A. 12-6a01 et seg. (the "Petition"); and WHEREAS, the Petition sets forth: (a) the general nature of the proposed improvements; (b) the estimated or probable cost of the proposed improvements; (c) the extent of the proposed improvement district to be assessed for the cost of the proposed improvements; (d) the proposed method of assessment; (e) the proposed apportionment of the cost between the improvement district and the City at large; and (f) a request that such improvements be made without notice and hearing as required by K.S.A. 12-644(a); and WHEREAS, the owners of record of 100% the property liable to be assessed under the Petition have signed the Petition; and WHEREAS, no signatures have been withdrawn from the petition before the Governing Body began consideration of the Petition; and WHEREAS, K.S.A. 12-6a04 provides that the Governing Body may authorize and order public improvements without notice and hearing after a sufficient petition has been filed; and WHEREAS, the Governing Body has reviewed and considered the Preliminary Engineering Estimate and Feasibility Report prepared by the City Engineer and agrees with the conclusions set forth therein. NOW THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS, AS FOLLOWS: Section 1. The Governing Body hereby finds that the Petition is sufficient, and further finds and determines that it is necessary and advisable to make the following improvements: (a) The nature of the improvements are as follows: The curb, gutter, pavement, and grading for approximately 1,460 lineal feet of Crystal Lake Drive, 980 lineal feet of Shoreline Drive and 220 lineal feet of Crystal Place (the "Street Improvements"). The installation of approximately 1,330 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"). The installation of approximately 1,490 lineal feet of eight -inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,520 lineal feet of eight -inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). (b) The estimated cost of the Improvements is: One million seven hundred eleven thousand eight hundred ninety dollars and four cents ($1,711,890.04). (c) The extent of the improvement district to be assessed are: Block 4, Lots 16 through 20, Block 6, Lots 2 through 6, Block 7, Lots 1 through 7 and Block 8, Lots 2 through 21, all in the Stone Lake Addition to the City of Salina, Saline County, Kansas. (the "Improvement District"). (d) The apportionment of cost between the Improvement District and the city at large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. (e) The method of assessment against property within the Improvement District shall be: The costs of the Improvements shall be assessed to the Improvement District as shown below (shown as a percentage of the total actual costs of the Improvements assessed per lot): Lots to be Assessed % of Cost Assessed Per Lot* Lots 16 through 20, Block 4; 3.650% Lots 2 through 6, Block 6 2.737% Lot 1, Block 7 12.711% Lots 2 through 7, Block 7; Lots 2 throw 21, Block 8 2.129% 'Computation intended as follows: Total cost of Improvement x % of Cost Assessed Per Lot = Cost to be assessed to lot In the event all or part of the lots or parcels in the proposed Improvement District are replatted before assessments have been levied, the assessments against the replatted area shall be recalculated on the basis of the method of assessment set forth herein. Where the ownership of a single lot is or may be divided into two or more parcels, the assessment to the lot so divided shall be assessed to each ownership or parcel on a square foot basis. Section 2. The Governing Body hereby declares that the Improvements described in this Resolution are necessary, and authorizes them to be made in accordance with the Petition and the findings set forth in this Resolution, and finther authorizes the levying of assessments and the issuance of bonds therefor, all in accordance with K.S.A. 12-6a01 et seq. Section 3. The City expects to make capital expenditures from and after the date of this Resolution in connection with the Improvements described herein, and intends to reimburse itself for such expenditures with the proceeds of one or more series of general obligation bonds and temporary notes (collectively, the "Bonds") of the City in the maximum principal amount of $1,711,890.04. The Bonds may be issued to reimburse expenditures made on or after the date which is 60 days before the date of this Resolution, pursuant to Treasury Regulation 1.150-2. Section 5. The City Clerk shall file a certified copy of this Resolution with the Register of Deeds of Saline County, Kansas. Section 6. This Resolution shall take effect after its adoption and publication once in the official city newspaper. ADOPTED AND PASSED this day of 2022 Trent W. Davis, M.D., Mayor (SEAL) JoVonna Rutherford, City Clerk PETITION 4415 TO THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: We, the undersigned, owners of record of property located within the City of Salina, Kansas (the "City") and being the owners of 100% of the area liable for assessment set forth below, do hereby respectively request that the Governing Body of the City create and designate an improvement district for the purpose of making certain improvements in the manner provided by K.S.A.12-6a01,elseq. 1. The general nature of the proposed improvements are as follows: The curb, gutter, pavement, and grading for approximately 1,460 lineal feet of Crystal Lake Drive, 980 lineal feet of Shoreline Drive and 220 lineal feet of Crystal Place (the "Street Improvements"). The installation of approximately 1,330 lineal feet of storm sewer pipe, inlets, manholes and all appurtenances thereto (the "Storm Drainage Improvements"), The installation of approximately 1,490 lineal feet of eight -inch water main, fire hydrants, valves, fittings, and all appurtenances thereto (the "Water System Improvements"). The installation of approximately 1,520 lineal feet of eight -inch sanitary sewer main, service connections for sewer lines, manholes, and all appurtenances thereto (the "Sanitary Sewer Improvements"). (collectively, the "Improvements"). 2. The estimated or probable cost of the Improvements is: One million seven hundred eleven thousand eight hundred ninety dollars and four cents ($1,711,890.04). 3. The extent of the proposed improvement district to be assessed is: Block 4, Lots 16 through 20, Block 6, Lots 2 through 6, Block 7, Lots I through 7 and Block 8, Lots 2 through 21, all in the Stone Lake Addition to the City of Salina, Saline County, Kansas. (the "Improvement District"). 4. The proposed method of assessment shall be: The costs of the Improvements shall be assessed to the Improvement District as shown below (shown as a percentage of the total actual costs of the Improvements assessed per lot). Lots to be Assessed % of Cost Assessed Per Lot Lots 16 throujzh 20, Block 4 3.650% Lots 2 through 6 Block 6 2.737% Lot 1, Block 7 12.711% Lots 2 through 7, Block 7; Lots 2 through 21, Block 8 2.129% `Computation intended as follows: Total cost of Improvement x % of Cost Assessed Per Lot Cost to be assessed to lot In the event all or part of the lots or parcels in the proposed Improvement District are replatted before assessments have been levied, the assessments against the replatted area shall be recalculated on the basis of the method of assessment set forth herein. Where the ownership of a single lot is or may be divided into two or more parcels, the assessment to the lot so divided shall be assessed to each ownership or parcel on a square foot basis. 5. The proposed apportionment of cost between the Improvement District and the City at Large is: One hundred percent (100%) of the total cost of the Improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. The signers of this Petition hereby request that the Improvements be made without notice and hearing as required by K.S.A. 12-604(a). NAMES MAY NOT BE WITHDRAWN FROM THE PETITION BY THE SIGNERS THEREOF AFTER THE GOVERNING BODY COMMENCES CONSIDERATION OF THE PETITION OR LATER THAN SEVEN (7) DAYS AFTER FILING OF THE PETITION WITH THE CITY CLERK, WHICHEVER OCCURS FURST. Each signer of this Petition certifies', under oath, that: ' These certifications are only required to be made by petitioners for special assessment financing in new developments. (a) The petitioner and its principals do not have a financial interest in any real estate located in the city which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; (b) The petitioner and its principals do not have a financial interest in any real estate located in the State of Kansas on which special assessments or ad valorem taxes were delinquent for a period of more than one year during the five-year period immediately preceding the date of the petition; (c) The petitioner and its principals are not in breach of any outstanding contractual obligations owed to the city as of the date of the petition; and (d) The petitioner and its principals have not been convicted of a felony financial crime, including but not limited to fraud or embezzlement, during the five-year period immediately preceding the date of the petition. ST07LAKE DEVELOPMENT, LLC Kelly R Duna Craig A. Piercy Tod R Roberg Managing Member Managing Member Managing Member LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 4, Lots 16 through 20; Block 6, Lots 2 through 6; Block 7, Lots 1 through 7; and Block 8, Lots 2 through 21, all in the Stone Lake Addition to the City of Salina, Saline County, Kansas. STATE OF KANSAS SALINE COUNTY 1, the undersigned Notary Public, hereby certify that the sigpature appearing above is ge a and that this document was signed before me on this day of 2022. No lie VF4. ', JOVONNA A. RUTHERFORD My appointment expires: ":_"'; MyApphVmtExptes :�: yy;jjy�,� Apl26r 1024 The petitioner and its principals do not have a financial interest in any real estate located in the city of Salina which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; C<--# Saline County Treasurer's Office Date: �{�' �y��— STONE LAKE DEVELOPMENT, LLC Kelly R Dunn Managing Member Craig A. Piercy Tod R. Roberg Managing Member Managing Member LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 4, Lots 16 through 20; Block 6, Lots 2 through 6; Block 7, Lots 1 through 7; and Block 8, Lots 2 through 21, all in the Stone Lake Addition to the City of Salina, Saline County, Kansas. STATE OF KANSAS SALINE COUNTY 1, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before me on this _/341" day of T i a 2022. i, SACK c. Kansas My appointment expires: 12.23-23 Notary Public The petitioner and its principals do not have a financial interest in any real estate located in the city of Salina which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; Saline County Treasurer's Office Date: (—A — STONE LAKE DEVELOPMENT, LLC Kelly R. Dunn Craig A. Piercy Managing Member Managing Member Managing Member LEGAL DESCRIPTION OF PROPERTY OWNED WITHIN THE PROPOSED IMPROVEMENT DISTRICT: Block 4, Lots 16 through 20; Block 6, Lots 2 through 6; Block 7, Lots I through 7; and Block S, Lots 2 through 21, a0 in the Stone Lake Addition to the City of Salina, Saline County, Kansas. STATE OF KANSAS SALINE COUNTY I, the undersigned Notary Public, hereby certify that the signature appearing above is genuine and that this document was signed before we on thisI�-- day of ps ' 1 , 2022. SHANDI L. WICKS Notary Public • State of Kansas My App1. Expires My appointment expires: �1.Q 'A el--:. I (Q l tgn Notary Public The petitioner and its principals do not have a financial interest in any real estate located in the city of Salina which is subject to delinquent special assessments or ad valorem taxes as of the date of the petition; �4 Saline County Treasurer's Office Date: 9 `,3;0 - File No. 21038 Preliminary Engineering Report Petition No. 4415 Stone Lake Addition, Phase 3C Utility, Street, and Drainage Improvements May 2022 ylve4S `cENBpc� :y IV 19118 ' •.��S ss °°•...g • '' 6s#•.• CAN A This Page Intentionally Left Blank Petition 4415 Stone Lake Addition, Phase 3C APPORTIONMENT OF COST One hundred percent (100%) of the total cost of improvements shall be assessed to the Improvement District and zero percent (0%) shall be paid by the City at Large. 4 Petition 4415 Stone Lake Addition, Phase 3C Cost of Improvements Item # Item Quantity Unit Unit Cost Extension 1 Mobilization 1 LS 60,000.00 60,000.00 2 Clearing and Grubbing I LS 12,000.00 12,000.00 3 Construction Staking 1 LS 12,000.00 12,000.00 4 Traffic Control 1 LS 500.00 500.00 5 Erosion Control 1 LS 40,000.00 40,000.00 6 Construction Entrance 45 Ton 35.00 1,575.00 7 Seeding I LS 9,000.00 9,000.00 8 OM -4 Sign 3 Ea 100.00 300.00 9 Common Excavation 6,163 CY 5.50 33,896.50 10 Embankment 1,891 CY 4.50 8,509.50 11 Concrete Pavement, 6" 8,729 SY 50.00 436,450.00 12 Subgrade Modification, 6" 10,921 SY 10.00 109,210.00 13 Curb & Gutter Type I 5,332 LF 20.00 106,640.00 14 Valley Gutter 116 SY 65.00 7,540.00 15 Concrete Sidewalk, 4" 42 SY 55.00 2,310.00 16 Sidewalk Ramp, Type I 12 Ea 600.00 7,200.00 17 Curb Inlet 8 Ea 10,000.00 80,000.00 18 Area Inlet 1 Ea 6,000.00 6,000.00 19 Concrete Drainage Swale, 4" 299 LF 20.00 5,980.00 20 Storm Sewer, RCP, 18" 244 LF 45.00 10,980.00 21 Storm Sewer, RCP 24" 396 LF 55.00 21,780.00 22 Storm Sewer, RCP 36" 690 LF 70.00 48,300.00 23 End Section, RC, 36" 1 Ea 2,200.00 2,200.00 24 Rip Rap,D50 6" 37 Ton 55.00 2,035.00 25 Water Main, 8" 1,490 LF 47.00 70,030.00 26 Long Service Line, 1'/z" 11 Ea 900.00 9,900.00 27 Long Service Line, 1" 2 Ea 875.00 1,750.00 28 Short Service Line, V 18 Ea 175.00 3,150.00 29 Fire Hydrant Assembly 4 Ea 5,200.00 20,800.00 30 Water Line Fittings 1 LS 20,000.00 20,000.00 31 Connect to Existing Water Main 2 Ea 3,000.00 6,000.00 32 Sanitary Sewer, 8" 1,520 LF 38.00 57,760.00 33 Sanitary Sewer, 4" 1,627 LF 30.00 48,810.00 34 Connect to existing line 1 Ea 500.00 500.00 35 Sanitary Sewer Tee 28 Ea 180.00 5,040.00 36 Sanitary Tapping Saddle 13 Ea 250.00 3,250.00 37 Sanitary Sewer Manhole, 4' 7 Ea 10,500.00 73,500.00 38 Extra Depth Manhole 36 LF 275.00 9,900.00 Petition 4415 Stone Lake Addition, Phase 3C 39 Adjust Existing Sanitary Sewer Manhole 4 Ea 800.00 3,200.00 Subtotal $1,357,996.00 Developer's Engineering 27,975.00 Contingency and Construction Interest 203,699.40 City Expenses 12-6a0I (d) (5%) 67,899.80 Interest, Bonding & Issue 54,319.84 Total $1,711,890.04 General Items Item # Item Quantity Unit Unit Cost Extension I Mobilization 1 LS 60,000.00 60,000.00 2 Clearing and Grubbing I LS 12,000.00 12,000.00 3 Construction Staking 1 LS 12,000.00 12,000.00 4 Traffic Control I LS 500.00 500.00 5 Erosion Control 1 LS 40,000.00 40,000.00 6 Construction Entrance 45 Ton 35.00 1,575.00 7 Seeding 1 LS 9,000.00 9,000.00 8 OM4 Sign 3 Ea 100.00 300.00 Subtotal $135,375.00 Developer's Engineering 5,595.00 Contingency 20,306.25 City Expenses 12-6a01 (d) (5%) 6,768.75 Interest, Bonding & Issue 5,415.00 Total $173,460.00 0 Petition 4415 Stone Lake Addition, Phase 3C Street Improvements Item # Item Quantity Unit Unit Cost Extension 9 Common Excavation 6,163 CY 5.50 33,896.50 10 Embankment 1,891 CY 4.50 8,509.50 11 Concrete Pavement, 6" 8,729 SY 50.00 436,450.00 12 Subgrade Modification, 6" 10,921 SY 10.00 109,210.00 13 Curb & Gutter Type 1 5,332 LF 20.00 106,640.00 14 Valley Gutter 116 SY 65.00 7,540.00 15 Concrete Sidewalk, 4" 42 SY 55.00 2,310.00 16 Sidewalk Ramp, Type 1 12 Ea 600.00 7,200.00 Subtotal $711,756.00 Developer's Engineering 5,595.00 . Contingency 106,763.40 City Expenses 12-6a0I (d) (5%) 35,587.80 Interest, Bonding & Issue 28,470.24 Total $888,172.44 Stone Improvements Item # Item Quantity Unit Unit Cost Extension 17 Curb Inlet 8 Ea 10,000.00 80,000.00 18 Area Inlet 1 Ea 6,000.00 6,000.00 19 Concrete Drainage Swale, 4" 299 LF 20.00 5,980.00 20 Storm Sewer, RCP, 18" 244 LF 45.00 10,980.00 21 Storm Sewer, RCP 24" 396 LF 55.00 21,780.00 22 Storm Sewer, RCP 36" 690 LF 70.00 48,300.00 23 End Section, RC, 36" 1 Ea 2,200.00 2,200.00 24 Rip Rap,D50 6" 37 Ton 55.00 2,035.00 Subtotal Storm $177,275.00 Developer's Engineering 5,595.00 Contingencies 26,591.25 City Expenses 12-6a01 (d) (5%) 8,863.75 Interest, Bonding & Issue 7,091.00 Total $225,416.00 7 Petition 4415 Stone Lake Addition, Phase 3C Water Improvements Item # Item Quantity Unit Unit Cost Extension 25 Water Main, 8" 1,490 LF 47.00 70,030.00 26 Long Service Line, 1'/2" 11 Ea 900.00 9,900.00 27 Long Service Line, 1" 2 Ea 875.00 1,750.00 28 Short Service Line, I" 18 Ea 175.00 3,150.00 29 Fire Hydrant Assembly 4 Ea 5,200.00 20,800.00 30 Water Line Fittings I LS 20,000.00 20,000.00 31 Connect to Existing Water Main 2 Ea 3,000.00 6,000.00 39 Subtotal Water Main 4 Ea 800.00 $131,630.00 Developer's Engineering 5,595.00 Contingency 19,744.50 City Expenses 12-6a01 (d) (5%) 6,581.50 Interest, Bonding & Issue 5,265.20 Total $168,816.20 Sanitary Sewer Improvements Item # Item Quantity Unit Unit Cost Extension 32 Sanitary Sewer, 8" 1,520 LF 38.00 57,760.00 33 Sanitary Sewer, 4" 1,627 LF 30.00 48,810.00 34 Connect to existing line 1 Ea 500.00 500.00 35 Sanitary Sewer Tee 28 Ea 180.00 5,040.00 36 Sanitary Tapping Saddle 13 Ea 250.00 3,250.00 37 Sanitary Sewer Manhole, 4' 7 Ea 10,500.00 73,500.00 38 Extra Depth Manhole 36 LF 275.00 9,900.00 39 Adjust Existing Sanitary Sewer Manhole 4 Ea 800.00 3,200.00 Subtotal Sanitary Sewer $201,960.00 Developer's Engineering 5,595.00 Contingency 30,294.00 City Expenses 12-6a01 (d) (5%) 10,098.00 Interest, Bonding & Issue 8,078.40 Total $256,025.40 8 Petition 4415 Stone Lake Addition, Phase 3C Property Ownership Stone Lake Addition Property Owner Block 4 Lot 16 Stone Lake Development, LLC Lot 17 Stone Lake Development, LLC Lot 18 Stone Lake Development, LLC Lot 19 Stone Lake Development, LLC Lot 20 Stone Lake Development, LLC Lot 2 Stone Lake Development, LLC Lot 3 Stone Lake Development, LLC Lot 4 Stone Lake Development, LLC Lot 5 Stone Lake Development, LLC Lot 6 Stone Lake Development, LLC Block 7 Stone Lake Development, LLC Lot 1 Stone Lake Development, LLC Lot 2 Stone Lake Development, LLC Lot 3 Stone Lake Development, LLC Lot 4 Stone Lake Development, LLC Lot 5 Stone Lake Development, LLC Lot 6 Stone Lake Development, LLC Lot 7 Stone Lake Development, LLC Lot 2 Stone Lake Development, LLC Lot 3 Stone Lake Development, LLC Lot 4 Stone Lake Development, LLC Lot 5 Stone Lake Development, LLC Lot 6 Stone Lake Development, LLC Lot 7 Stone Lake Development, LLC Lot 8 Stone Lake Development, LLC Lot 9 Stone Lake Development, LLC Lot 10 Stone Lake Development, LLC Lot 11 Stone Lake Development, LLC Lot 12 Stone Lake Development, LLC Lot 13 Stone Lake Development, LLC Lot 14 Stone Lake Development, LLC Lot 15 Stone Lake Development, LLC Lot 16 Stone Lake Development, LLC Lot 17 Stone Lake Development, LLC Lot 18 Stone Lake Development, LLC 0 Petition 4415 Stone Lake Addition, Phase 3C Lot 19 Stone Lake Development, LLC Lot 20 Stone Lake Development, LLC Lot 21 Stone Lake Development, LLC 10 Petition 4415 Stone Lake Addition, Phase 3C Preliminary Cost Distribution General Street Storm Water Sanitary Total Block 4 Lot 16 6,331.29 32,418.29 8,227.68 6,161.79 9,344.93 62,483.99 Lot 17 6,331.29 32,418.29 8,227.68 6,161.79 9,344.93 62,483.99 Lot 18 6,331.29 32,418.29 8,227.68 6,161.79 9,344.93 62,483.99 Lot 19 6,331.29 32,418.29 8,227.68 6,161.79 9,344.93 62,483.99 Lot 20 6,331.29 32,418.29 8,227.68 6,161.79 9,344.93 62,483.99 Block 6 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 4,747.60 24,309.28 6,169.64 4,620.50 7,007.42 46,854.43 Lot 4,747.60 24,309.28 6,169.64 4,620.50 7,007.42 46,854.43 Lot 4,747.60 24,309.28 6,169.64 4,620.50 7,007.42 46,854.43 Lot 4,747.60 24,309.28 6,169.64 4,620.50 7,007.42 46,854.43 Lot 4,747.60 24,309.28 6,169.64 4,620.50 7,007.42 46,854.43 Lot 1 Lot 2 Lot 3 Lot 4 Lot 5 Lot 6 Lot 7 22,048.50 3,692.96 3,692.96 3,692.96 3,692.96 3,692.96 3,692.96 112,895.60 18,909.19 18,909.19 18,909.19 18,909.19 18,909.19 18,909.19 28,652.63 4,799.11 4,799.11 4,799.11 4,799.11 4,799.11 4,799.11 21,458.23 3,594.10 3,594.10 3,594.10 3,594.10 3,594.10 3,594.10 32,543.39 5,450.78 5,450.78 5,450.78 5,450.78 5,450.78 5,450.78 217,598.34 36,446.14 36,446.14 36,446.14 36,446.14 36,446.14 36,446.14 Block 8 Lot 2 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 3 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 4 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 5 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 6 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 7 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 8 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 9 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 10 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 11 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 12 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 13 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 14 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 15 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 16 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 17 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 18 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 19 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Petition 4415 Stone Lake Addition, Phase 3C Lot 20 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Lot 21 3,692.96 18,909.19 4,799.11 3,594.10 5,450.78 36,446.14 Totals 173,460.00 888,172.44 225,416.00 168,816.20 256,025.40 $1,711,890.04 12 IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT by and between the CITY OF SALINA, KANSAS and STONE LAKE DEVELOPMENT, LLC DATED AS OF , 2022 IMPROVEMENT DISTRICT DEVELOPMENT AGREEMENT This Improvement District Development Agreement (the "Agreement") dated as of 2022, by and between the City of Salina, Kansas (the "City'), and Stone Lake Development, LLC, a Kansas limited liability company (the "Developer"). WHEREAS, on _, 2022, the Developer filed with the City Clerk Petition No. 4415 (the "Petition'), pursuant to K.S.A. 12-6a0I et seq. (the "Act"); and WHEREAS, the Petition requests that the City create the Improvement District, construct the Improvements, assess the costs thereof against the Improvement District (all as defined in the Petition), and issue the City's general obligation bonds to finance the costs of the Improvements; and WHEREAS, the City has prepared the Preliminary Engineering and Feasibility Report (the "Feasibility Report") related to the Improvements; and WHEREAS, the Developer desires to construct the Improvements and provide financing for the costs of the improvements until such time as the City issues general obligation bonds to permanently finance the costs of the Improvements, all subject to the terms and conditions of this Agreement; and NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Developer hereby agree as follows: 1. Constructing the Improvements. A. Construction. The Developer shall design, construct and install, at its own expense, the Improvements described in the Petition, subject to reimbursement by the City as provided in Paragraph 3 below. The design, construction and installation of the improvements shall be in accordance with all applicable laws including the City Code, and the Developer shall obtain or shall cause to be obtained all licenses, permits or other approvals required by any governmental authorities to complete the Improvements. B. Timing. The Developer shall begin work on the Improvements promptly after execution of this Agreement and satisfaction of the Developer's obligations under Paragraphs 4 (surety bonds) and 5.1) (contractor warranties) of this Agreement, but no contract shall be let and construction shall not commence until after Resolution No. 22-8045 (creating the Improvement District and authorizing the Improvements, the "Advisability Resolution") is published in the Salina Journal. All work on the Improvements must be performed with reasonable diligence and work may not cease for more than fifteen (15) consecutive days. If construction of the Improvements has not commenced within 180 days of execution of this Agreement, the City may terminate this Agreement and repeal the Advisability Resolution, and the City shall have no obligation to construct the Improvements or reimburse the Developer for any costs or expenses whatsoever, including but not limited to any costs related to the Improvements and/or costs of negotiating this Agreement. 2. Certifying Completion of the Improvements A. Upon the completion of the Improvements, the Developer shall submit to the City a request for reimbursement, accompanied by copies of all paid invoices for the Improvements, in accordance with Exhibit A. The Developer also shall famish all records, contracts, bills and other documents relating to the Improvements and the Developer's financing of the costs thereof, that the City reasonably requests in order to verify the amount to be reimbursed pursuant to this Agreement. Further, Developer shall provide to the City adequate documentation that all contractors, engineers or other parties that have provided goods or services for the Improvements have been paid in full by the Developer. B. After receiving the foregoing information, the City will arrange for final inspection of the Improvements. If the Improvements have been completed in substantial compliance with the Advisability Resolution, the City shall certify completion of the Improvements and issue a Certificate of Completion in accordance with Exhibit B. The City shall review all invoices and other requested documentation, inspect the Improvements and either (i) issue to the Developer a Certificate of Completion or (ii) provide to Developer a list of additional required documentation, within 30 days after the Developer submits a request for reimbursement. 3. Reimbursement. A. The City shall reimburse the Developer for the Developer's actual cost of the Improvements, as submitted pursuant to Paragraph 2 of this Agreement. The Developer shall also be reimbursed for interest expense related to financing the costs of the Improvements only to the extent that the Developer has obtained financing from an unrelated third party, and then the Developer shall only be reimbursed for such financing costs as are paid by the Developer to the unrelated third party. B. The maximum total amount of reimbursement to the Developer under this agreement shall be $1,589,670.40. The Parties agree that the costs shown in the Petition and Feasibility Report are an estimate only, and reimbursement shall be based on the actual expenses incurred by the Developer and verified by the City pursuant to Paragraph 2 of this Agreement; except that, in no event shall the Developer be entitled to reimbursement in excess of the amount shown in this paragraph. C. The City shall not issue any reimbursement payment until all of the following actions have occurred: (i) the Certificate of Completion has been issued in accordance with Paragraph 2 of this Agreement; (ii) an ordinance levying assessments pursuant to the Petition, the Advisability Resolution and the Act has been approved by the City Commission; (iii) the City has issued its general obligation bonds to permanently finance the costs of the Improvements; and (iv) the Developer has furnished to the City a Financial Guarantee equal to 20% of the total cost of the Improvements to be assessed against the Improvement District. a. For purposes of this paragraph, the term "Financial Guarantee" means: (1) cash; (2) escrow account with a financial institution, funded with securities held in trust for the City's benefit, all as approved at the discretion of the City; (3) irrevocable letter of credit from a financial institution approved at the discretion of the City; or (4) surety bond, approved at the discretion of the City as to form, execution and surety. b. The Financial Guarantee shall remain in full force and effect until certificates of occupancy for principal buildings are issued for at least 35% of the properties (by lot) within the Improvement District. c. If any special assessment imposed pursuant to the terms of the ordinance levying assessments is not paid when due on property within the Improvement District, the Financial Guarantee will be applied on July 1 of each year to satisfy the principal, interest and any additional costs or penalties prompted by delinquent payment of such special assessments. Notwithstanding the foregoing, however, the Financial Guarantee shall not be applied in connection with a delinquent payment of a special assessment on property that has been sold by the Developer in a commercially reasonable, arms -length transaction and conveyed to, and is owned by, a person or entity unaffiliated with the Developer. d. Notwithstanding the provisions of Section 9 of Resolution 18-7556 (the City's current policy for financing public improvements through the use of Improvement Districts under the Act), the Developer shall not be obligated to provide the Financial Guarantee prior to receipt of the Certificate of Completion delivered by the City pursuant to Paragraph 2 of this Agreement. The Developer shall be obligated to provide the Financial Guarantee prior to the date when the City begins marketing its general obligation bonds to permanently finance the costs of the Improvements and reimburse the Developer for the costs thereof. D. The Developer hereby acknowledges that the following actions are required after the Certificate of Completion is issued and before proceeds of the City's general obligation bonds are available to reimburse the Developer: a. City prepares final feasibility study showing final costs of the Improvements and allocation of assessments to each property within the Improvement District; b. City Commission adopts resolution or otherwise provides for the calling of a public hearing on the levy of assessments; c. Notice of public hearing on the levy of assessments is published in the local paper and mailed to all property owners within the Improvement District; d. City Commission holds public hearing on the levy of assessments and considers on fust reading the ordinance levying assessments; e. City Commission has second reading and approves ordinance levying assessments; f. Ordinance levying assessments is published in local paper; g. Property owners within the Improvement District are given 30 days to prepay assessments; h. Amount of general obligation bond financing is determined by City (equal to total costs of Improvements less any prepayments); i. City works with Financial Advisor and Bond Counsel to begin marketing general obligation bonds to investors; j. City holds bond sale; Commission approves sale of bonds to best bidder; k. City works with financing team on various closing matters; 1. City certifies assessment, together with interest, to County for property tax bills; in. City closes bond issue; receives funds to reimburse the Developer. The Developer further acknowledges that the City typically issues general obligation bonds in April of each year. In order for the City to complete all of the above -referenced steps to include financing for the Improvements in a particular year's bond issuance, the Developer must submit the documentation required by Paragraph 2 of this Agreement in sufficient time to permit the City to issue a Certificate of Completion by March 1. If a Certificate of Completion is not issued by January 1, then reimbursement will not occur until the following year's regularly -scheduled general obligation bond issue. The Developer is solely responsible for paying any additional financing costs incurred by the Developer as a result of any delay in the issuance of general obligation bonds for the Improvements, if such financing costs, together with the actual project costs, exceed the maximum reimbursement set forth in Paragraph 3(A) of this Agreement. E. The City will use its best efforts to issue general obligation bonds in April of each year. If the City's issuance of general obligation bonds to permanently finance the Improvements is prevented, hindered or delayed for any reason, the Developer is solely responsible for carrying the costs of the Improvements. The City shall have no obligation to reimburse the Developer unless and until the City issues general obligation bonds for the purpose of financing the Improvements. 4. Payment Bonds. A. Prior to the commencement of work on the Improvements, the Developer shall obtain from its contractor(s) statutory public works bond(s) required by K.S.A. 60-1111 ("Payment Bond"), as follows: (i) [reserved] (ii) A statutory payment bond running to the state of Kansas, conditioned that the contractor as principal shall pay all indebtedness incurred for labor, supplies, equipment, and materials furnished in making the Improvements called for by the contract documents. B. The bond shall be in an amount at least equal to the contract price for the Improvements. The form of bond shall be subject to approval by the City. The bond shall be executed by such sureties as are authorized to conduct business in the state of Kansas. All bonds signed by an agent must be accompanied by a certified copy of the agent's authority to act. The Developer or its contractor shall file a Payment Bond with the Clerk of the Saline County District Court in accordance with K.S.A. 60-1111(b) and deliver a file -stamped copy to the City Clerk. The premiums for such bonds shall constitute costs chargeable to the Improvement District. The Developer shall indemnify the City and its officers and employees for any damage resulting from failure of the Developer to provide the bonds required by this subsection. 5. Contractor's Warranty to City. A. If within two years after final acceptance of the Improvements as a whole (as indicated on the Certificate of Completion provided pursuant to Paragraph 2.13 of this Agreement), any Improvements are found to be defective, the Developer's contractor for such Improvements shall promptly, without cost to the City and in accordance with the City's written instructions: (i) Correct such defective Improvements; or (ii) If the defective Improvements have been rejected by the City, remove and replace them with Improvements that are not defective; and satisfactorily correct or repair, or remove and replace, any damage to other Improvements or other land or areas resulting therefrom. B. If the Developer's contractor does not promptly comply with the terms of the City's written instructions, or in an emergency where delay would cause serious risk of loss or damage, the City may have the defective Improvements corrected or repaired or may have the rejected Improvements removed and replaced. All claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court costs) arising out of or relating to such correction or repair or such removal and replacement (including but not limited to all costs of repair or replacement of work of others) will be paid by the Developer's contractor. C. Where defective Improvements (and damage to other Improvements resulting therefrom) has been corrected or removed and replaced under this paragraph, the warranty period hereunder with respect to such Improvements will be extended for an additional period of two years after such correction or removal and replacement has been satisfactorily completed. D. Prior to the commencement of work on the Improvements, the Developer's contractor(s) constructing the Improvements shall expressly acknowledge and agree in writing to undertake and perform the warranty obligations set forth in this Paragraph 5 as they apply to such contractor's portion(s) of the Improvements. Each contractor shall expressly acknowledge and agree, in its contract with the Developer, that the City (i) is an express third -party beneficiary of the contractor's warranty, (ii) shall be entitled to the rights and benefits thereunder, and (iii) may enforce the provisions thereof as if it were a party thereto. The form of the Developer's contract(s) shall be subject to approval by the City. E. Prior to the date when the City begins marketing its general obligation bonds to permanently finance the costs of the Improvements and reimburse the Developer for the costs thereof, the Developer shall provide a warranty and maintenance bond to the City. The bond shall be in an amount equal to the total cost of the Improvements. The form of bond shall be subject to approval by the City. The bond shall be executed by such sureties as are authorized to conduct business in the state of Kansas. All bonds signed by an agent must be accompanied by a certified copy of the agent's authority to act. Notwithstanding the City's receipt of warranty and maintenance bond, the Developer shall remain fully responsible for all warranty and maintenance obligations set forth in this Paragraph 5. F. The obligations under this paragraph are in addition to any other obligation or warranty, and shall not be construed as a substitute for, or a waiver of, the provisions of any applicable statute of limitations or repose. 6. Waiver. THE DEVELOPER HEREBY AGREES TO WAIVE ANY RIGHTS THAT IT MAY HAVE PURSUANT TO KANSAS STATUTES, THE KANSAS CONSTITUTION, THE UNITED STATES CONSTITUTION, OR AS OTHERWISE PROVIDED BY LAW TO OBJECT TO ANY SPECIAL ASSESSMENTS REQUESTED IN THE PETITION AND IMPOSED PURSUANT TO THE ACT. The Developer acknowledges and agrees that this waiver is freely given and with full knowledge of the extent of all statutory, constitutional or other legal rights being waived thereby, and is given in consideration of the City forming the Improvement District and assisting in providing for the financing and construction of the Improvements. 7. City Expenses; Deposit. The Developer shall be responsible for the payment of all non -City employee legal, financial and planning consultants for direct out-of-pocket expenses and other reasonable costs resulting from services rendered to the City to review, evaluate, process and consider the Petition and this Agreement (the "City Expenses"). Before this Agreement becomes effective, the Developer shall deposit with the City the sum of $2,500 to pay the City Expenses. If such deposit is insufficient to pay all City Expenses, the Developer shall pay all additional City Expenses within 10 days after presentation of an invoice from the City. The City shall return any unused funds to the Developer on the date when the City reimburses the Developer pursuant to Paragraph 3 of this Agreement. 8. Indemnity. A. General Indemnity. The Developer shall indemnify, release, defend, be responsible for and forever hold harmless the City, its officers, agents, employees, elected officials, and attorneys, each in their official and individual capacities, from and against all lawsuits, suits, actions, costs, claims, demands, damages, disability, losses, expenses, including reasonable attorney's fees and other defense costs or liabilities of any character and from any cause whatsoever, brought because of bodily injury or death received or sustained, or loss or damage received or sustained, by any person, persons, or property arising out of or resulting from any act, error, omission, or intentional act of the Developer or its agents, employees, or subcontractors in connection with the design, construction, installation and maintenance of the Improvements. B. No Limitations or Waiver. The indemnity required hereunder shall not be limited by reason of any insurance coverage provided by the Developer as required by this Agreement. The City does not, and shall not, waive any rights against the Developer which it may have by reason of this indemnification. This indemnification by the Developer shall not be limited by reason of whether or not the Developer's insurance policies shall have been determined to be applicable to any such damages or claims for damages. C. Use of Independent Contractors. The fact that the Developer carries out any activities connected with the Improvements under this Agreement through independent contractors shall not constitute an avoidance of, or defense to, the Developer's duty of defense and indemnification under this section. ri 9. Insurance. A. Types and Amount of Coverage. During construction of the Improvements, the Developer agrees to obtain insurance coverage as specified in Exhibit C attached hereto and shall not make any material modification or change from these specifications without the prior approval of the City. If the Developer subcontracts any of its obligations under this Agreement, the Developer shall require each such subcontractor to obtain insurance coverage as specified in Exhibit C. Failure of the Developer or its subcontractors to comply with these requirements shall not be construed as a waiver of these requirements or provisions and shall not relieve the Developer of liability. B. Rating. All insurance policies shall be issued by insurance companies rated no less than A - VII in the most recent "Bests" insurance guide and admitted in the State of Kansas. Except as otherwise specified in Exhibit C, all such policies shall be in such form and contain such provisions as are generally considered standard for the type of insurance involved. C. Certificate of Insurance. The parties acknowledge that the Developer has provided the City with a certificate of insurance listing the City as the Certificate Holder and evidencing compliance with the insurance requirements in this Agreement. The City reserves the right to require complete certified copies of all insurance policies procured by the Developer pursuant to this Agreement, including any and all endorsements affecting the coverage required hereunder. 10. Default and Termination. The Developer shall be in default of this Agreement if the Developer fails to comply with any obligations set forth in this Agreement. This Agreement may be terminated at the option of the City if written notice of event of default has been delivered to the Developer by the City and the Developer has not cured such default or is not actively pursuing such cure within thirty (30) days after such notice is delivered. 11. Retention and Inspection of Records. A. Retention. The Developer shall maintain complete, accurate, and clearly identifiable records with respect to the Improvement Costs and any other documents created pursuant to, or arising under, this Agreement, including, but not limited to, all general contractor's sworn statements, general contracts, subcontracts, material purchase orders, waivers of lien, and paid receipts and invoices (collectively, the "Records"). The Records shall be maintained during the term of this Agreement, and for a period of five (5) years after final acceptance of the Improvements as a whole (as indicated on the Certificate of Completion provided pursuant to Paragraph 2.13 of this Agreement) (the "Retention Period"); provided, however, that if any litigation, claim or audit is commenced prior to the expiration of the Retention Period, then the Retention Period shall be extended until all litigation, claims or audit findings have been completely terminated or resolved, without right of further appeal. B. Inspection. During the Retention Period, the Developer shall allow a representative of the City, with reasonable advance notice and during normal business hours, to examine, audit, and make transcripts or copies of the Records. Notwithstanding the foregoing, during the last three (3) calendar years of the Retention Period (plus any extension pursuant to Paragraph I LA above), the City shall only be entitled to inspect the Records if the City reasonably determines, based on a post -project review or audit of the Improvements or the City's then -available records relating to the Improvements, that the City may have paid the Developer for work not properly rendered, or reimbursed the Developer for costs or expenses not allowed under the terms of this Agreement (a "Determination). The City's right to inspect Records following a Determination shall be limited to the extent necessary to confirm the accuracy of the Determination, or the facts giving rise thereto. 12. Restrictions on the Sale of Lots. The Developer shall not sell any property within the Improvement District prior to the receipt of the Certificate of Completion delivered by the City pursuant to Paragraph 2 of this Agreement. 13. General Provisions A. No waiver of any provision of this Agreement will be deemed or constitute a waiver of any other provision, nor will it be deemed or constitute a continuing waiver unless expressly provided for by a written amendment to this Agreement signed by both the City and the Developer; nor will the waiver of any defect under this Agreement be deemed a waiver of any subsequent default or defaults of the same type. The City's failure to exercise any right under this Agreement, will not constitute the approval of any wrongful act by the Developer or the acceptance of any Improvements. B. The parties to this Agreement may amend or modify this Agreement only by written instrument duly executed by the parties hereto. C. No person or entity who or which is not a party to this Agreement will have any right of action under this Agreement. D. This Agreement constitutes the entire Agreement between the parties, and no statements, promises, or inducements that are not contained in this Agreement will be binding on the parties. This Agreement may not be assigned to any other parties without the prior written consent of the City. E. If any part, term, or provision of this Agreement is held by a court to be illegal or otherwise unenforceable, such illegality or unenforceability will not affect the validity of any other part, term, or provision, and the rights of the parties will be construed as of the part, term, or provision was never part of this Agreement. F. The City may file a copy of this Agreement in the office of the Register of Deeds for Saline County, Kansas. G. Nothing contained in this Agreement constitutes a waiver of the City's sovereign immunity under any applicable state law. H. This Agreement shall be construed in accordance with and governed by the laws of the State of Kansas. IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this _ day of ,2022. (Seal) ATTEST: JoVonna A. Rutherford, City Clerk STATE OF KANSAS ) ) SS. COUNTY OF SALINE ) CITY OF SALINA, KANSAS Michael D. Schrage, City Manager On 2022, before me, the undersigned, a Notary Public in and for said state, personally appeared and , proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument as City Manager and City Clerk, respectively, ofthe CITY OF SALINA, KANSAS, and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the entity upon behalf of which the persons acted, executed the instrument. WITNESS my hand and official seal. Notary Public My commission expires: IN WITNESS WHEREOF, the parties hereunto have executed this Agreement this day of ,2022. STATE OF ) SS. COUNTY OF Stone Lake Development, LLC A Kansas Limited Liability Company 0 Name: Title: Managing Member On 2022, before me, the undersigned, a Notary Public in and for said state, personally appeared , proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument as 'and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. My commission expires: 10 Notary Public EXIMIT A FORM OF REIMBURSEMENT REQUEST TO: City of Salina, Kansas Attention: City Manager Re: Stone Lake Addition, Phase 3C Improvement District Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Improvement District Development Agreement dated as of 10 (the "Agreement') between the City and the Developer. In connection with the Agreement, the undersigned hereby states and certifies that: 1. Each item listed on Schedule I hereto is cost that was incurred in connection with the construction of the Improvements after , 20_ [INSERT DATE DISTRICT CREATED BYRESOLUTION], and is an eligible cost pursuant to the Petition, the Advisability Resolution and the Act. Attached hereto are invoices and other supporting documentation showing proof that each cost listed in Schedule 1 was actually incurred by the Developer and is an eligible cost pursuant to the Petition, the Advisability Resolution and the Act. 2. There has not been filed with or served upon the Developer any notice of any lien, right of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive payment of the amounts stated in this request, except to the extent any such lien is being contested in good faith. 3. The Improvements have been completed in a workmanlike manner and in accordance with all construction plans approved by the City. All necessary permits and approvals required for the work for which this certificate relates were issued and were in full force and effect at the time such work was being performed. 4. The Developer is not in default or breach of any term or condition of the Agreement, and no event has occurred and no condition exists which constitutes an event of default under the Agreement. Dated this day of 20 STONE LAKE DEVELOPMENT, LLC By: Name: Title: Managing Member A-1 Approved for Payment this _ day of 20 CITY OF SALINA, KANSAS Title: A-2 EXHIBIT B FORM OF CERTIFICATE OF COMPLETION The undersigned, STANLEY C. BYQUIST (the "Developer"), pursuant to that certain Improvement District Development Agreement dated as of —,20 , between the CITY OF SALINA, KANSAS (the "City") and the Developer (the "Agreement"), hereby certifies to the City as follows: 1. That as of 20_, the construction of all Improvements (as such term is defined in the Agreement) have been completed in accordance with the Petition, the Advisability Resolution and the Agreement. 2. This Certificate of Completion is being issued by the Developer to the City in accordance with the Agreement to evidence the Developer's satisfaction of all obligations and covenants with respect to the construction of the hnprovements. 3. At the Developer's request, the City shall record this Certificate with the Saline County Recorder of Deeds, as evidence that the Developer has satisfied all agreements and covenants to construct the Improvements pursuant to the Agreement. Terns not otherwise defined herein shall have the meaning ascribed to such terms in the Agreement. IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this day of 120. CITY OF SALINA, KANSAS M Name: Title: (Insert Notary Form and Legal Description if Certificate to be Recorded) 01 EXIIIBIT C INSURANCE REQUIREMENTS Pursuant to Paragraph 9 of the Agreement, the Developer shall obtain, pay for, and maintain — and shall require each of its authorized contractors and subcontractors to obtain and maintain — for the duration of the Agreement, policies of insurance meeting the following requirements: 1. General Requirements. A. Additional Insured. With the exception of any workers' compensation policies to be obtained by the Developer hereunder, all policies shall name the City of Salina ("City"), its agents, representatives, officers, officials, and employees as additional insured(s). Insurance for the additional insured shall extend to Products/Completed Operations and be as broad as the insurance for the named insured, including defense expense coverage, and, with respect to the commercial general liability policy required hereunder, shall be endorsed to apply as primary and non-contributory insurance before any other insurance or self-insurance, including any deductible, maintained by, or provided to, the additional insured(s). B. Waiver of Subrogation. Where allowed by law, all policies will include a waiver of subrogation in favor of the City, its agents, representatives, officers, officials, and employees. C. Claims Made Policies. If coverage is written on a claims -made basis for any of the policies required by this Agreement, the Developer must maintain the coverage for a minimum of two (2) years from the date of final completion of all work under the Agreement. D. Premium and Deductible Expenses. The Developer shall be responsible for all premiums and retention or deductible expense for any and all policies required by this Agreement. 2. Specific Coverage Requirements. A. Commercial General Liability ("CGL"). The Developer shall maintain CGL coverage written on ISO Occurrence form CG00 01 or an industry equivalent and shall cover liability arising from Personal hijury, Bodily Injury, Property Damage, Premises and Operations, Products and Completed Operations, Contractual Liability, Independent Contractors and Advertising Injury. The policy limits shall not be less than the following: • Each occurrence $1,000,000 • General aggregate $2,000,000 • Personal and Advertising Liability $1,000,000 The policy shall contain an endorsement that modifies the general aggregate to apply separately to each project. The Developer shall maintain the Products and Completed Operations liability coverage for a period of at least two (2) years after completion of all work under the Agreement. B. Business Automobile Liability ("BAL"). The Developer shall maintain BAL coverage written on ISO form CA 00 01 or an industry equivalent. Coverage shall be applicable to all autos and other vehicles subject to compulsory auto liability laws that are owned, hired, rented or used by the Developer and include automobiles not owned by but used on behalf of the Developer. The BAL policy limits shall not be less than the following: C-1 • Combined single limit $1,000,000 C. Workers' Compensation/Employer's Liability. The Developer shall maintain workers' compensation and employer's liability coverage with policy limits not less than the following: • Workers' Compensation (Coverage Part A) o Statutory • Employer's Liability (Coverage Part B) o $100,000 each accident o $500,000 disease — policy limit o $100,000 disease —each employee C-2 23 24 16. 14 1 6 R - 3 13 Scott �7. 22 - - 17 .. Ave .I .:.; 2 7k,.. Pf 12 26, 12 6 eA I i 21 20 13, 5 - Sro'wer 27 f 1 I _ Cy10 14 4 Wet Stone Dr e 8 28 15 3 4 5 6 7 9 16 . 2 L Awk�. 32 RIDGI aDDC, I JAW Niel .. ,` J ,', .... . :1MR -= I ere ' I Shoreline DF 3.- 14 _ P6-2 —""' ----' 2 21 3 20 3 4 19 17 PC -2 18 PC -5i l 16 S4, y�r 19 / o --- 9.-_ 14 des, ` -- - -- C VstlYl ---... 20 ' - ---'_—_-`- 10tl 12 13 r - k I? PC5 7 2.:;� 4 - 5 -_ E Schilling Rd - -- - - 1 inch = 200 feet PCS 14