04-03-2023 Minutes Special Meeting"' "'
23-0099 •
CITY OF SALINA, KANSAS
SPECIAL MEETING OF THE BOARD OF COMMISSIONERS
April 3, 2023
1:30 p.m.
Mayor Hoppock asked the Clerk for verification that notice had been sent for today's City
Commission meeting. The Clerk replied yes .
The Special Meeting of the Board of Commissioners was called to order at 1 :30 p.m. in
Room 107, City-County Building. A roll call was taken followed by the Pledge of
Allegiance and a moment of silence.
Those present and comprising a quorum: Mayor Michael L. Hoppock, Trent W. Davis,
M.D., Greg Lenkiewicz, Bill Longbine and Karl Ryan.
Also present: Mike Schrage, City Manager, Jacob Wood, Deputy City Manager, Shawn
Henessee, Assistant City Manager, Greg Bengtson, City Attorney; and Jo Vonna A.
Rutherford, City Clerk.
DEVELOPMENT BUSINESS
(3.1) Salina Housing Proposals Discussion.
Mike Schrage , City Manager, suggested the current meeting agenda be amended to account for
possible action to follow the housing proposal discussion.
Moved by Commissioner Davis , seconded by Commissioner Ryan, to amend the current meeting
agenda to include possible action after the housing proposal discussion. Aye: (5). Nay: (0). Motion
carried.
Mike Schrage, City Manager, provided preliminary comments, explained and reviewed
informational handouts , offered observations , defined the role of the Governing Body as it
relates to discussion of the housing proposals and addressed questions received from individual
commissioners related to infrastructure, access roads , fire code, site locations, housing study,
and Star Bonds .
Commissioner Ryan thanked city staff for getting all of the information put together.
Commissioner Davis inquired about the difference between affordable and market rents . A brief
discussion followed regarding said rates .
Commissioner Longbine thanked everyone for the work put into the information provided ,
expressed disappointment in that he thought rents would be lower, stated he was concerned with
traffic congestion if 500 units were all in one location and commented on infrastructure.
Commissioner Lenkiewicz reiterated the statements of appreciation made by fellow
commissioners for staff's efforts on the information provided .
Mike Schrage, City Manager, touched on timelines of the proposals.
Mayor Hoppock suggested and the Governing Body concurred that the Ambassador site was not
being considered as an option.
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Matt Webster, of Stifel, Nicolaus & Company, Inc., clarified incentive amounts proposed by
Flaherty & Collins. Mr. Webster then reviewed a memo he addressed to city staff addressing
the subject of housing issues to include risk, construction, phasing, public-private enterprises,
important business points and review of the SWOT (Strengths, Weaknesses, Opportunities, and
Threats) matrix.
Mike Schrage, City Manager, reviewed informational tables on rent rates and unit size. Mr.
Schrage also indicated that city staffs top choices for proposals were that of Salina Destination
Development and Perry Reid.
A discussion ensued related to square footage, utilities to be included in rent rates, risk and
financial analysis, construction schedule, different locations and the decision process.
Commissioner Ryan stated he was looking at Salina Destination Development as housing
studies have indicated time is important and they are six months ahead in the timeline.
Commissioner Davis indicated he liked 635 Holdings for the options they provided but was
hesitant of Salina Destination Development due to smaller unit sizes.
Commissioner Longbine also indicated he liked 635 Holdings due to different housing locations
and diversification in market rent and type of units; however, it was between 635 Holdings and
Salina Destination Development due to Salina Destination Development being well-financed, a
Kansas company and had plans ready to go.
Commissioner Lenkiewicz stated he kept going back to Salina Destination Development due to
diversity in architecture and the lease-to-own option .
Mayor Hoppock suggested Flaherty & Collins be set aside due to time issue and high rents and
the Governing Body was in agreement. Mayor Hoppock indicated he liked the three sites
offered by 635 Holdings but time may be an issue to get those sites under control. Mayor
Hoppock further indicated that the Salina Destination Development proposed rent rates fell
within range and their timeline was aggressive; however, he was concerned about the duplexes
being proposed.
A discussion developed related to a development agreement, rental market, companies that build
and hold the properties, apartment management, investment in the community, completion
timeline, traffic congestion, improvements planned for Magnolia, number of units, and pros and
cons of different proposals.
23-0100 Moved by Commissioner Davis, seconded by Commissioner Longbine, to recess the special meeting
and reconvene ten minutes after the adjournment of the regular meeting that starts at 4 p.m. Aye: (5).
Nay: (0). Motion carried.
The special meeting recessed at 3:51 p.m. and resumed at 4:50 p.m.
Mayor Hoppock expressed appreciation to all of the applicants that submitted proposals and
suggested a motion be made to determine possible action.
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23-0101
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Moved by Commissioner Ryan, seconded by Commissioner Lenkiewicz, to authorize city staff to enter
into negotiations for a development agreement with Salina Destination Development. Aye: (3). Nay: (2-
Davis/Longbine ). Motion carried.
Mike Schrage, City Manager, expressed his appreciation to the Governing Body for their efforts .
Commissioner Ryan exuded his confidence in staff to negotiate the development agreement.
Commissioner Davis shared that despite the final tally of votes, the Governing Body is moving
forward united. Commissioner Longbine was in agreement.
Commissioner Lenkiewicz stated it was even better to know the development would be
Kansas owned, Kansas built, Kansas designed and Kansas managed.
OTHER BUSINESS
None.
ADJOURNMENT
23-0102 Moved by Commissioner Ryan, seconded by Commissioner Davis, that the special meeting of the
Board of City Commissioners be adjourned. Aye: (5). Nay: (0). Motion carried. The meeting
adjourned at 5:01 p.m.
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Michael L. Hoppock, Mayor
[SEAL]
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