CITY OF HAYS COMMISSION MEETING CITY HALL, 1507 MAIN STREET, HAYS, KS THURSDAY, APRIL 12, :30 P.M. AGENDA

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1 CITY OF HAYS COMMISSION MEETING CITY HALL, 1507 MAIN STREET, HAYS, KS THURSDAY, APRIL 12, :30 P.M. AGENDA 1. Call to order by Chairperson. 2. MINUTES: Consider approval of the minutes from the regular meeting held on March 22, (PAGE 1) 3. CITIZEN COMMENTS: (non-agenda items). 4. EMPLOYEE PROMOTIONS AND NEW HIRES 5. CONSENT AGENDA: (Items to be approved by the Commission in one motion, unless objections are raised). UNFINISHED BUSINESS (No business to review) NEW BUSINESS 6. UPDATE ON R9 DEVELOPMENT PROCESS: David Traster and Brian Meier will be in attendance to discuss the Water Transfer Act timeline and provide a general update on the Change Application proceedings. (PAGE 7) AUDIT: Accept the 2017 Audit for the City of Hays as presented by Adams, Brown, Beran and Ball. (PAGE 9) 8. OPTION TO PURCHASE PROPERTY NEAR 27 TH AND COMMERCE PARKWAY: Approve the 18-month option to purchase the land for the sum of $35, to be funded out of the Commission Capital Reserve. (PAGE 11) 9. COMMISSION INQUIRIES AND COMMENTS 10. EXECUTIVE SESSION (IF REQUIRED) 11. ADJOURNMENT ANY PERSON WITH A DISABILITY NEEDING SPECIAL ACCOMMODATIONS TO ATTEND THIS MEETING SHOULD CONTACT THE CITY MANAGER'S OFFICE 48 HOURS PRIOR TO THE SCHEDULED MEETING TIME. EVERY ATTEMPT WILL BE MADE TO ACCOMMODATE ANY REQUESTS FOR ASSISTANCE.

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3 MINUTES OF A MEETING OF THE GOVERNING BODY OF THE CITY OF HAYS, KANSAS HELD ON MARCH 22, CALL TO ORDER BY CHAIRMAN: The Governing Body of the City of Hays, Kansas met in regular session on Thursday, March 22, 2018 at 6:30 p.m. Roll Call: Present: James Meier Absent: Henry Schwaller, IV Chris Dinkel Mayor Meier declared a quorum was present and called the meeting to order. 2. MINUTES: There were no corrections or additions to the minutes of the regular meeting held on March 8, 2018; the minutes stand approved as presented. 3. FINANCIAL STATEMENT: Finance Director, Kim Rupp, reviewed the financial summaries of the revenue and expenditure activities of the City of Hays for the month ended February 28, Month-to-date general fund sales tax collections were at $654,233 which is a decrease of $31,068 or -4.53% as compared to last year. Year-to-date general fund collections are at $1,218,502 down -$73,471 or -5.69%. The portfolio of certificates of deposit on February 28, 2018 totaled $51,950,000 with a weighted average interest rate of 1.33%, up.53% from a year ago. Par Value on the portfolio of Treasury Notes is $7,707,000 with a weighted average yield to maturity of 1.78%. The total balance of the Money Market account on February 28, 2018 was $1,250,000 with a current yield of.50%. Total investments are up $707,000 when compared to this time last year. moved, seconded, to approve the Financial Statement for the month of February, 2018 as presented. 1

4 Vote: Ayes: James Meier 4. CITIZEN COMMENTS: There were no comments. 5. CONSENT AGENDA: A Cereal Malt Beverage License for Das Essen Hutte was presented for approval. moved, seconded, to approve the consent agenda as presented. Vote: Ayes: James Meier NEW BUSINESS 6. RESOLUTION CALLING PUBLIC HEARING REGARDING THE ADOPTION OF THE HILTON HOTEL AND CONFERENCE CENTER TIF REDEVELOPMENT PROJECT PLAN: Kim Rupp, Director of Finance, reported that Hays Hotel, LLC and Mitra Developers, LLC (together, the Developer ) is requesting tax increment financing (TIF) on a pay-as-you-go basis for 20 years, among other incentives, to construct a hotel and convention center immediately west of the existing Walmart Supercenter. The Developer estimates that the TIF will generate approximately $3.7 million in revenues during the 20 year term. TIF revenues will be derived from incremental property tax revenues collected on the project site. Per City policy, no general or special City or County sales tax generated by the project will be captured by the TIF. On February 8, 2018 the Commission approved Ordinance 3948 establishing the TIF district. Conducting a public hearing regarding the adoption of a TIF Project Plan is the next step in the statutory process for TIF financing. The TIF Project Plan contains details concerning the project description, TIF project costs, and the feasibility study of the project. 2

5 The public hearing and subsequent consideration of an Ordinance adopting the Plan and approving a development agreement to be entered into between the City and the Developer would be scheduled for April 26, moved, seconded, to adopt Resolution No setting a public hearing on April 26, 2018 regarding the adoption of the Hilton Hotel and Conference Center TIF Redevelopment Project Plan. Vote: Ayes: James Meier 7. RESOLUTION CALLING PUBLIC HEARING FOR THE ESTABLISHMENT OF THE HILTON GARDEN INN AND CONFERENCE CENTER COMMUNITY IMPROVEMENT DISTRICT: Kim Rupp, Director of Finance, reported the City is in receipt of a Community Improvement District (CID) Petition submitted by the current property owner (MAO Investments, LLC, or the Petitioner ) at the request of Hays Hotel, LLC and Mitra Developers, LLC, the Developer. The Developer is under contract to acquire the property in May, 2018 from the Petitioner following the City s approval of all incentives requested by the Developer. The CID Petition seeks to impose a 2% CID sales tax on the property on a pay-as-you-go basis. The Developer estimates that the CID will generate approximately $3,115,000 over the maximum 22 year term of the CID. The City will not issue general obligation or special obligation bonds for the project. State statute requires a public hearing be conducted to consider the petition and establish the CID. moved, seconded, to adopt Resolution No setting a public hearing on April 26, 2018 regarding the establishment of the Hilton Garden Inn and Conference Center Community Improvement District. Vote: Ayes: James Meier 3

6 8. REZONING OF A TRACT SOUTH OF 22 ND STREET AND EAST OF COMMERCE PARKWAY FROM AGRICULTURE TO LIGHT INDUSTRIAL: Jesse Rohr, Director of Public Works, reported the owner of the property south of East 22nd Street and along the east side of Commerce Parkway has submitted a request to rezone the property from Agriculture (A-L) to Light Industrial (I-1). The tract is approximately 39 acres in size. A public hearing was conducted on February 19, 2018 at the regular meeting of the Planning Commission, and it was recommended by a vote of 9-0 that the rezoning be approved. The zoning change would allow for commercial development of the property. Staff, as well as the Planning Commission, recommends approving an ordinance rezoning the tract from A-L to I-1. moved, seconded, to approve Ordinance No rezoning a tract (as legally described) near 22nd & Commerce Parkway from A-L to I-1. Vote: Ayes: James Meier 9. WATERLINE IMPROVEMENTS, EAST 10 TH AND 11 TH STREETS AWARD OF BID: Jeff Crispin, Director of Water Resources, stated staff solicited bids for waterline improvements in the area of East 10 th and East 11 th Street between Pine and Vine Streets. In recent years there have been some serious issues with water line breaks in that area. Bids were submitted by three contractors, with the lowest cost bid from J Corp in the amount of $136,887. Staff recommends awarding the bid and funding the cost out of Water Capital Reserve. moved, seconded, to authorize the City Manager to execute a contract with J Corp in the amount of $136,887 for waterline improvements along East 10 th and East 11 th Street to be funded from Water Capital Reserve. Vote: Ayes: James Meier 4

7 10. SELECTION OF RETAIL RECRUITMENT CONSULTANT: Toby Dougherty, City Manager, stated in November of 2017, the City issued a Request for Qualifications for retail gap analysis and recruitment firms. A retail gap analysis and recruitment firm would provide hard analytic data on what types of retail sectors and entities are underrepresented in Hays. This data could then be used to lure those retailers to Hays. The data is also important to land owners who wish to develop their land. A qualified firm will not only provide data, but would also provide recruitment assistance as well as attempting to facilitate the connection of property owners with retailers looking to establish within Hays. The City received proposals from four firms; however, only two firms provided retail analysis and recruitment services. City staff recommended a yearto-year contract with Retail Strategies of Birmingham, Alabama with the first year cost at approximately $50,000. The 2018 Budget includes $43,775 that was intended to support the Ellis County Coalition for Economic Development. The Coalition has chosen not to request funding from the City of Hays in These funds along with additional funds from within the overall General Fund Budget could be used for this project. moved, seconded, to authorize the City Manager to enter into a contract with Retail Strategies for an amount not to exceed $50,000 to be paid for out of the General Fund Economic Development Other Contractual Services line item. Vote: Ayes: James Meier 11. COMMISSION INQUIRIES AND COMMENTS: There were no comments. 12. EXECUTIVE SESSION: moved, seconded, that the Governing Body recess to executive session at 7:10 p.m. for a period not to exceed 15 minutes to discuss potential property acquisition. The executive session included the City Manager, City Attorney, and City Commission. Vice- Mayor Schwaller and Commissioner Dinkel joined via conference call. K.S.A. 75-5

8 4319 authorizes the use of executive session to discuss the topics stated in the motion. Vote: Ayes: James Meier No action was taken during the executive session. The meeting was adjourned at 7:25 p.m. Submitted by: Brenda Kitchen City Clerk 6

9 CITY OF HAYS AGENDA ITEM COVER SHEET COMMISSION AGENDA ITEM NO. 6 MEETING DATE: TOPIC: Update on R9 Development Process ACTION REQUESTED: N/A NARRATIVE: David Traster and Brian Meier will be in attendance to discuss the Water Transfer Act timeline and provide a general update on the Change Application proceedings. PERSON/STAFF MEMBER(S) MAKING PRESENTATION: David Traster, Foulston Siefkin, LLP Brian Meier, Burns & McDonnell ADMINISTRATION RECOMMENDATION: N/A COMMITTEE RECOMMENDATION(S): N/A ATTACHMENTS: None 7

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11 CITY OF HAYS AGENDA ITEM COVER SHEET COMMISSION AGENDA ITEM NO. 7 MEETING DATE: TOPIC: Review of the 2017 Audit as presented by Adams, Brown, Beran and Ball ACTION REQUESTED: Accept the 2017 audit report as presented. NARRATIVE: As required by Kansas Statute, the City of Hays hires an outside firm to conduct an annual audit of City finances. The audit represents an unbiased opinion of business practices and the financial soundness of all City funds. Melissa Romme of Adams, Brown, Beran and Ball will be here to present the 2017 Audit. PERSON/STAFF MEMBER(S) MAKING PRESENTATION: Melissa Romme Adams, Brown, Beran and Ball ADMINISTRATION RECOMMENDATION: Approve the 2017 Audit as presented. COMMITTEE RECOMMENDATION(S): N/A ATTACHMENTS: N/A 9

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13 CITY OF HAYS AGENDA ITEM COVER SHEET COMMISSION AGENDA ITEM NO. 8 MEETING DATE: TOPIC: Option to Purchase Property Near 27th and Commerce Parkway ACTION REQUESTED: Approve the 18-month option to purchase the land for the sum of $35, to be funded out of the Commission Capital Reserve. NARRATIVE: The City Commission is being presented with an exclusive and irrevocable option to purchase property near Commerce Parkway. The property has significant potential for future retail, commercial, and business park development. PERSON/STAFF MEMBER(S) MAKING PRESENTATION: John T. Bird, City Attorney ADMINISTRATION RECOMMENDATION: N/A COMMITTEE RECOMMENDATION(S): N/A ATTACHMENTS: Memo Visual 11

14 Commission Work Session Agenda Memo From: Toby Dougherty, City Manager Work Session: April 5, 2018 Subject: Option to Purchase Person(s) Responsible: John T. Bird, City Attorney Summary The City Commission is being presented with an exclusive and irrevocable option to purchase property near Commerce Parkway. The property has significant potential for future retail, commercial, and business park development. Background There is a limited amount of developable land in and adjacent to the City of Hays that is conducive for retail, commercial, and business park use. The property near Commerce is for sale at an asking price of $800, Infrastructure is nearby, and the land is poised for development. Discussion The City Commission is being presented with an exclusive irrevocable 18-month option to purchase property. The option is structured so that the City has the right to pay a remaining $35, towards the option via action at a regular meeting in April, 2018, and is held by the $15, the City Manager has paid pursuant to his purchasing powers. Purchasing the property would allow the City to more easily facilitate development in the area. The City would have the choice of extending infrastructure and marketing the property, or to work with a developer to further develop the property. Legal Consideration There are no known legal obstacles to proceeding as recommended by City Staff. Financial Consideration The Commission is being presented with an 18 month option to purchase the property for $800, Should the Commission decide to purchase the property before the 18 month deadline, the option payment will be proportionally deducted from the purchase price. The option money will be paid from the Commission Capital Reserve. 12

15 Options The City Commission has the following options: Approve the 18 month option to purchase the property for $800, Do not approve the option Direct Staff otherwise Recommendation Staff recommends the Commission approve the 18 month option. Action Requested Approve the 18 month option to purchase the land for the sum of $35, to be funded out of the Commission Capital Reserve. N/A Supporting Documentation 13

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