Leavenworth City Commission s1

CITY OF LEAVENWORTH City Commission Regular Meeting 100 N. 5th Street, Commission Chambers Leavenworth, Kansas 66048 Tuesday, January 13, 2015 at 7:00 p.m.

CALL TO ORDER - The Governing Body met in regular session and the following commission members were present: Mayor Mark Preisinger, Mayor Pro-Tem Lisa Weakley and Commissioners Laura Janas Gasbarre, Davis T. Moulden and Larry Dedeke

Others present: City Manager J. Scott Miller, Assistant City Manager Paul Kramer, Public Works Director Mike McDonald, Superintendent of Operations Ed Davis, City Planner Julie Hurley, Finance Director Ron Hale, Deputy City Clerk Carla Williamson, City Attorney Tom Dawson, Public Information Officer Melissa Bower and City Clerk Karen J. Logan.

Mayor Preisinger opened the meeting with the pledge of allegiance followed by silent meditation. Boy Scout Troop 173 from the First United Methodist Church led the pledge of allegiance.

Consideration of Previous Meeting Minutes: Commissioner Dedeke moved to approve the December 23, 2014 Regular Meeting Minutes. Commissioner Gasbarre seconded the motion and was unanimously approved.

NEW BUSINESS:

Citizens Participation: No comments.

General Items:

Massage Establishment Licenses 2015 – City Clerk Logan requested approval of a Massage Establishment Business License to be issued to the following business:  Knockouts 2916 5 4th Street - owner Cauleigh Pettis  Leavenworth Yoga Coop 521 Delaware Street - owner Joyce P. Chalmers Commissioner Gasbarre moved to approve the Massage Establishment Licenses for 2015 as presented. Commissioner Weakley seconded the motion and was unanimously approved.

Public Hearings:

Neighborhood Revitalization Area Ben Day Lofts Project, 1100 3rd Avenue – City Manager Miller stated Exact Properties, LLC (Caleb Buland and Larry Buland) is looking to develop the former Ben Day School into 24 market rate loft apartments. They are requesting support from the City in order to close investor and bank funding and begin construction. The specific financial incentives being sought by them are in the following areas:  Sidewalks. For the required sidewalk rehabilitation surrounding the property partner with the City 50/50 on the work either in actual repair work or expenses. The cost to the City would total approximately $20,000.  Property Tax Abatement. Cap the property taxes at the current rate for the next 10 years on the property by all three governmental entities (City, County and School).  50% of the annual property taxes over the current amount (base); City Manager Miller reviewed the appraisals and assessed values.  Permit and Inspection Fees. Cap the permit and inspection fees at $2,000 on the project. Exact Properties would be responsible for the plan review fees.  Staff has reviewed the proposal with the Leavenworth School District (Superintendent Mike Roth) and Leavenworth County (Pat Hurley, Janet Klasinski, Mike Webber and David Van Parys) concerning the property tax abatement. Superintendent Roth felt the School Board would approve Exact's proposal and Leavenworth County Staff felt the Commissioners would do the same; however, it was the contention of County Staff that they are not authorized to grant property tax abatement by Kansas law and that the

Leavenworth City Commission Meeting January 13, 2015 Page 1 neighborhood revitalization district could be an alternative to providing the property tax abatement. The County could support the establishment of such a district.  The Neighborhood Revitalization program (KS 12-17, 114) is a feasible economic tool to implement property tax abatement for this revitalization project.  Consideration for approval and adoption by the Leavenworth City Commission the following: o The Neighborhood Revitalization Plan for Ben Day Lofts . The City partner with Exact Properties on the rehabilitation of the sidewalks surrounding the Ben Day Lofts project on a 50/50 basis. . Cap the permit and inspection fees at $2,000 on the project o The Interlocal Agreement between the County, School District and City

Mayor Preisinger asked that if the county or school district did not approve the Neighborhood Revitalization Plan for Ben Day Lofts would the agreement with just the City still be allowed. City Manager Miller stated that was correct, the plan does not require all three entities to participate.

Open Public Hearing - Commissioner Gasbarre moved to open the public hearing. Commissioner Moulden seconded the motion and was unanimously approved.

Public Comments: Caleb Buland, Architect for the Ben Day Lofts reviewed the project, and he felt this was a win / win project for the city and county.

Close Public Hearing - Commissioner Dedeke moved to close the public hearing. Commissioner Moulden seconded the motion and was unanimously approved.

Commissioner Weakley moved to approve the Neighborhood Revitalization Plan for Ben Day Lofts, including the City partner with Exact Properties on the rehabilitation of the sidewalks surrounding the Ben Day Lofts project on a 50/50 basis and cap the permit and inspection fees at $2,000 on the project. Commissioner Gasbarre seconded the motion and was unanimously approved.

Contract No. 2015-02 Consider Interlocal Agreement for Neighborhood Revitalization Plan – Commissioner Dedeke moved to approve the Interlocal Agreement for the Neighborhood Revitalization Plan for Ben Day Lofts, as presented. Commissioner Gasbarre seconded the motion and was unanimously approved.

Redevelopment District Zeck Ford Development – City Manager Miller stated the Leavenworth City Commission entered into a Memorandum of Understanding (MOU) with Zeck Ford on November 18, 2014 in reference to the proposed Zeck Ford Development Project; specifically outlining the following items: • the scope of the project (current dealership, acquisition of the 6.88 acres of vacant land to the south of Zeck Ford, and the acquisition of neighboring parcels to the east of Zeck Ford for expansion and redevelopment); and • the creation of a redevelopment district and redevelopment project; and • the implementation of development incentives (property tax TIF and sales tax TIF); and • the imposition of a community improvement district (a 0.75% sales tax).

Pursuant to KSA 12-1771(a) when a City proposes to create a redevelopment district within an eligible area (qualifies since the land is located in a pre-1992 Enterprise Zone per Kansas Department of Commerce) the City shall adopt a resolution stating that the City is considering the establishment of a redevelopment district. Such Resolution shall give notice of the public hearing, describe the proposed boundaries of the redevelopment district, describe the district plan, state that the description and map of the proposal is available for inspection, and state that the City Commission will consider findings for the establishment of the redevelopment district.

Upon the conclusion of the public hearing the City Commission may consider the adoption of an ordinance. Pursuant to KSA 12-1771(b) said ordinance for a redevelopment district shall: make findings that the

Leavenworth City Commission Meeting January 13, 2015 Page 2 redevelopment district proposed to be developed is an eligible area; the redevelopment of such area is necessary to promote the general and economic welfare of the city; contain the district plan as approved; and contain the legal description of the redevelopment district.

Open Public Hearing - Commissioner Gasbarre moved to open the public hearing. Commissioner Dedeke seconded the motion and was unanimously approved.

Public Comments: Freddy L. Polk, owner of 4501 Commercial Place within the boundaries of the proposed redevelopment district, stated that the property does not meet the criteria for blighted area; asked about how it will improve the general economic welfare of city; he felt this was not eligible for a redevelopment district, and then discussed the Kansas Statute 12-1770.

Korb Maxwell, with Polsinelli Law Firm, has discussed this area multiple times with the City Commission, stated this property qualifies for a redevelopment district since the land is located in a pre-1992 Enterprise Zone per Kansas Department of Commerce and does not need the blighted area designation; no eminent domain involved; and basically the Zecks were just looking for the establishment of the TIF district. City Manager Miller stated that the Department of Commerce confirmed that this property is a pre-1992 enterprise zone.

Mayor Preisinger discussed the area proposed within the TIF district, the current tax base set and that any improvements would go back into the TIF district. He then discussed the newly acquired property within the district and the increase to the value of that property. The city, school and county will be paying taxes based on current value $1.7 million.

Close Public Hearing - Commissioner Gasbarre moved to close the public hearing. Commissioner Dedeke seconded the motion and was unanimously approved.

First Consideration Ordinance for Zeck Ford Redevelopment District – Consensus to place this ordinance on first consideration.

Sign Appeals at 3122 S. 4th Street & 4900 S. 4th Street – Commissioner Dedeke moved to table the sign appeals for 3122 S. 4th Street and 4900 S. 4th Street and reschedule the public hearing to the January 27, 2015 City Commission meeting. Commissioner Gasbarre seconded the motion and was unanimously approved.

Resolutions:

Resolution No. B-2096 Set Public Hearing Downtown Hotel Redevelopment Project Plan – City Manager Miller reviewed: • The City Commission established the Downtown Town Square Redevelopment District through the adoption of Ordinance No. 7879 on July 26, 2011. The district was established with the purpose of generating development / redevelopment projects within the area bounded by Seneca Street on the north, Choctaw on the south, 4th Street on the west, and the Missouri River on the east. • The City acquired the former Ramada Inn /Knight's Inn in November 2013 and had the structure demolished in early 2014. The City's plan was to select a hotel developer to construct an extended stay hotel on this site. • A Real Estate Sale Contract /Development Agreement was negotiated with Equis Hospitality Management during 2014 and formally adopted by the parties (Equis and City) in late October, early November 2014. Equis has submitted their application to Hilton for a flagship extended stay hotel and they expect to hear from them in several months. • In order to utilize TIF (Tax Incremental Financing) dollars generated from improvements and enhancements to the hotel site, over and above the base year assessed valuation (2011), a redevelopment project must be established within the redevelopment district. In accordance to KSA 12- 1772(a) one of

Leavenworth City Commission Meeting January 13, 2015 Page 3 more redevelopment projects may be undertaken by a City within an established redevelopment district. Any City proposing to undertake a redevelopment project within a redevelopment district shall prepare a project plan in consultation with the Planning Commission. • The project plan shall include: a summary of the feasibility study; a reference to the district plan that identifies the redevelopment project that is set forth in the project plan that is being considered; a description and map of the redevelopment project area to be redeveloped; the relocation plan (if applicable); a detailed description of the buildings and facilities proposed to be constructed in such area; and any other information the governing body deems necessary to advise the public of the intent of the project plan. A project plan has been completed and is available in the Office of the City Clerk for inspection. • To move forward with the redevelopment project, pursuant to KSA 12-1772(b) the City is required to adopt a resolution stating that the City is considering the adoption of a redevelopment project plan and said resolution shall: provide notice that a public hearing will be held to consider the adoption of the redevelopment project plan; describe the boundaries of the redevelopment district within which the redevelopment project will be located and the date of establishment of such district; describe the boundaries of the area proposed to be included within the redevelopment project area; and state that the project plan, including a summary of the feasibility study, relocation assistance plan and a description and map of the area to be redeveloped, are available for inspection during regular business hours in the Office of the City Clerk. • Resolution No. B-2096 sets the public hearing for the Downtown Hotel Redevelopment Project Plan.

Commissioner Weakley moved to approve Resolution No. B-2096 to set the Public Hearing for the Downtown Hotel Redevelopment Project Plan. Commissioner Dedeke seconded the motion and was unanimously approved.

Resolution No. B-2097 Set Public Hearing for Fire Damaged Home 1216 Pottawatomie – Public Works Director Mike McDonald stated that staff recommends that the resolution setting March 10, 2015 as the date of a public hearing for an unsafe or dangerous structure located at 1216 Pottawatomie Street be adopted. The structure was damaged by fire on October 3, 2014. Staff has been in contact with the owner and a building permit has been issued. The Chief Building Inspector recommends that proceedings under the provisions of K.S.A. 12-1750, et seq. should be commenced.

Commissioner Weakley moved to approve Resolution No. B-2097 to set the Public Hearing for a fire damaged home located at 1216 Pottawatomie. Commissioner Moulden seconded the motion and was unanimously approved.

Resolution No. B-2098 Set Public Hearing for Unsafe and Dangerous Structures – City Planner Hurley stated staff has compiled a list of structures, which have been evaluated based upon the criterion established for unsafe and dangerous structures. The City Commission reviewed this list of 16 structures at the December 9, 2014 meeting and agreed at that time to proceed with placing all structures as presented on a list for public hearing. City staff has completed the necessary paperwork to set a resolution for the public hearing. The following structures are hereby presented for consideration to be placed on a resolution to set a public hearing for March 10, 2015: 1. 1116 Osage Street (includes detached garage) 2. 1206 Spruce Street (garage ONLY) 3. 1328 Spruce Street (small house to the rear of the property ONLY) 4. 511 N. 11th Street (garage ONLY) 5. 1007 N. 13TH Street (garage ONLY) 6. 717 N. 2nd Street (includes detached shed) 7. 320 Kickapoo Street 8. 317 Pottawatomie Street 9. 319 Osage Street 10. 410 Ottawa Street (includes detached shed) 11. 724 Pottawatomie Street (this is half of an 8 plex which is on the same parcel with 728)

Leavenworth City Commission Meeting January 13, 2015 Page 4 12. 728 Pottawatomie Street (this is half of an 8 plex which is on the same parcel with 724) 13. 613 S 10th Street 14. 651 Marshall Street (garage only) 15. 1040 9th Avenue (garage only) 16. 320 Logan Avenue Commissioner Weakley moved to approve Resolution No. B-2098 to set the Public Hearing for Unsafe and Dangerous Structures, as presented. Commissioner Dedeke seconded the motion and was unanimously approved.

Bids, Contracts and Agreements:

Bid for Tandem Axle Dump Truck – Superintendent of Operations Davis asked to consider approval of the KDOT statewide bid for the purchase of a 2015 Freightliner 108SD tandem axle dump truck with a 12 ft. plow and stainless steel spreader for the Street Division. He requested to purchase of a Tandem Axle Dump Truck with Spreader and Wing Plow for $152,161 which includes a trade-in of the existing equipment truck 3331 to Kansas Truck Center of Wichita, Kansas. He highlighted: • Will trade-in a 2003 International Dump Truck for $6,000 • Purchase a Wing Plow • Discussed the Freightliner truck and the need for that type of truck • Dump truck will be delivered around March 1st Commissioner Gasbarre moved to purchase of a Tandem Axle Dump Truck with Spreader and Wing Plow for $152,161 which includes a trade-in of existing equipment truck 3331 to Kansas Truck Center of Wichita, Kansas. Commissioner Weakley seconded the motion and was unanimously approved.

Contract No. 2011-71 Amendment No. 1 Design Services Flood Wall – Assistant City Manager Kramer stated the City entered into a design contract with Affinis Corp. in December 2011 for a Flood Control Wall at the Riverfront Community Center. The project was delayed by two FEMA Region VII grant application denials, two appeal processes and the stone repair project at the Riverfront Community Center. During the intervening three years, Affinis has helped provide information for the appeals, as well as to continue to update the design of the flood wall. Additionally, as the project has reactivated, updates are required to utility coordination efforts, specifically from the railroad.

Due to the extended time frame of this project and the increased amount of work and changes in their billing rate, Affinis has requested additional funds in the amount of $5,901 to complete final design, perform bidding services and to complete utility coordination. The amendment would change the final design contract from $69,110 to $75,011. This contract amendment will not alter the timeline the City submitted to FEMA regarding the bid, award and construction of the flood wall. The project is still slated to start this spring. The design portion of the project is eligible for reimbursement from the state, and that request will be made. The cost of this contract, $75,011, would be the responsibility of the City.

Mayor Preisinger and City Commissioners discussed the utility coordination efforts specifically with the railroad.

Commissioner Gasbarre moved to approve the additional funds in the amount of $5,901 amending the final design contract from $69,110 to $75,011 with Affinis. Commissioner Dedeke seconded the motion and was unanimously approved.

Consent Agenda:

Claims for December 20, 2014 through January 9, 2015 in the amount of $922,016.87; Payroll #26 effective December 26, 2014 in the net amount of $387,997.87 (including Police and Fire pension payroll $12,869.52); and Payroll #1 effective January 9, 2015 in the net amount of $310,848.92. Commissioner Weakley moved to approve the consent agenda, as presented. Commissioner Dedeke seconded the motion and was unanimously approved.

Leavenworth City Commission Meeting January 13, 2015 Page 5 Other Items:

Mayor Preisinger discussed body cameras for the local police officers, stated he agreed with Commissioner Moulden and asked that this item be placed on a future study session for consideration. He then discussed Code Enforcement issues and some areas in the community with front yard dumps and then requested that the Code Enforcement Officers focus on addressing these issues.

Upcoming public meetings – County wide sales tax discussion on Wednesday January 13, 2015; and a KDOT open forum meeting about the Centennial Bridge on both Wednesday January 13th and Thursday January 14, 2015.

Adjourn – Commissioner Dedeke moved to adjourn the meeting. Commissioner Gasbarre seconded the motion and was unanimously approved.

Meeting Adjourned Time: 7:50 p.m. Minutes taken by City Clerk Karen J. Logan, MMC

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