9/22/2015 - Ordinance No. 15-10795 S&B CID
ORDINANCE NO. 15-10795
AN ORDINANCE ESTABLISHING THE S&B SOUTH NINTH COMMUNITY IMPROVEMENT DISTRICT IN THE CITY OF SALINA, KANSAS, AND AUTHORIZING THE IMPOSITION OF A COMMUNITY IMPROVEMENT DISTRICT SALES TAX TO BE COLLECTED WITHIN SUCH DISTRICT.
WHEREAS, pursuant to K.S.A. 12-6a26 et seq., as amended from time to time (the “Act”), the City of Salina (“City”) is authorized to establish community improvement districts for the purpose of financing certain economic development projects.
WHEREAS, on July 30, 2015, S & B Motels, Inc. (the “Petitioner”) filed with the City Clerk a signed petition (“Petition”) requesting the City to establish the S&B South Ninth Community Improvement District (the “District”) over real property owned by Petitioner and certain public rights-of way-owned by the City, and further requested the City to authorize the CID Project (defined below) and the imposition of a two percent (2.0%) community improvement district sales tax on retail sales within the District (“CID Sales Tax”) to pay for or reimburse the costs of a portion of the CID Project, all in the manner provided by the Act. The legal description and depiction of the boundaries of the District are attached and incorporated as Exhibit A.
WHEREAS, the Petitioner is the owner of record of more than 55% of the land area within the proposed District and 55% of the land measured by assessed value of the land area within the proposed District.
WHEREAS, on August 24, 2015 and September 14, 2015, following proper notice, the Governing Body held a public hearing on the advisability of creating the proposed District, the proposed CID Project, and the method of financing the CID Project.
WHEREAS, the Governing Body hereby finds and determines it to be advisable to create the District and set forth the boundaries thereof, authorize the CID Project relating thereto, approve the estimated and maximum reimbursable costs of the CID Project, and approve the method of financing the CID Project, all in accordance with the provisions of the Act, SO NOW THEREFORE,
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS:
Section 1. Creation of District. The Governing Body finds and determines that the Petition is sufficient and that it is advisable to create the District and approve the boundaries thereof as described and depicted on Exhibit A attached hereto.
Section 2. Authorization of CID Project. The general nature of the CID Project to be constructed within the District includes an approximately 97-room, 4-story, approximately 75,000 square foot, first-class, full-service hotel initially bearing a franchise flag of Hilton Garden Inn, with an attached first-class conference center, consisting of approximately 11,400 square feet of public meeting space (plus hallways and back-of-house storage areas) capable of seating approximately 500 people in the main ballroom with appropriate small meeting and pre-function space, generally described as a hotel and conference center, all as more particularly described and identified in the Petition (the “CID Project”).
Section 3. Estimated and Maximum Reimbursable Costs; Method of Financing.
(a) The estimated cost of completing the CID Project is approximately Fourteen Million Four Hundred Sixty Thousand Dollars ($14,460,000.00). That portion of the CID Project to be funded through the District (“Eligible CID Costs”) shall not exceed the lesser of (i) $5,000,000, or (ii) an amount equal to 50% of the total CID Project costs incurred at the time of full completion of the Project.
(b) The Eligible CID Costs shall be financed on a pay-as-you-go basis from revenues received from the imposition of the CID Sales Tax. There will be no special assessments levied within the District to finance the CID Project.
Section 4. Imposition of CID Sales Tax. In accordance with the Act and for the purpose of providing funds to finance the Eligible CID Costs on a pay-as-you-go basis, the Governing Body hereby levies a two percent (2.0%) CID Sales Tax within the District. The City shall be entitled to receive an administrative fee equal to two percent (2.0%) of all CID Sales Tax revenue generated in the District to reimburse the City for its administrative costs.
Section 5. Development Agreement; Pre-condition to Publication. As a pre-condition to the City Clerk’s publication of this ordinance, the City and the Petitioner shall enter into a development agreement setting forth the terms and conditions of the Petitioner’s construction and completion of the CID Project, as well as the reimbursement procedures for Eligible CID Costs.
Section 6. Effective. This ordinance shall be in full force and effect from and after its adoption and publication once in the official city newspaper by the following summary:
Ordinance No. 15-10795 Summary
On September 14, 2015, the City Commission passed Ordinance No. 15-10795. The Ordinance establishes the S&B South Ninth Community Improvement District in the City of Salina, Kansas, and authorizes the imposition of a two percent (2.0%) community improvement district sales tax to be collected within such district. A complete copy of the Ordinance can be found at www.salina-ks.gov or in the office of the City Clerk, 300 W. Ash, free of charge. This summary is certified by the City’s legal counsel.
Section 7. Recording; Notification to State Director of Taxation. In accordance with the Act, and following publication, the City Clerk is directed to: (a) record a copy of this ordinance with the Saline County Register of Deeds; and (b) provide the state director of taxation with a certified copy of this ordinance authorizing the levy of the CID Sales Tax within the District.
Introduced: September 14, 2015
Adopted: September 14, 2015
Jon R. Blanchard, Mayor
Shandi Wicks, CMC, City Clerk
Certification of Publication Summary:
Greg A. Bengtson, City Attorney