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Priceless TTHURSDAYHURSDAY Take One VOLUME 17, NUMBER 47 THURSDAY, APRIL 23, 2009 WINNER OF THE KANSAS GAS SERVICE 2006 KANSAS PROFESSIONAL 2006 KANSAS PROFESSIONAL WINNER OF THE KANSAS PRESS EXCELLENCE IN EDITORIAL WRITING COMMUNICATORS PHOTO ESSAY AWARD COMMUNICATORS EDITORIAL AWARD ASSOCIATION ADVERTISING AWARD Redevelopment Spin Editorial In 2003 the Chamber led an effort to downtown redevelopment project. At the By Jon A. Brake identify a developer that had the experi- same time, the City created a steering It is not what the City Commissioners ence and qualifications to undertake the committee to provide guidance in the were told; it is what they were not told redevelopment of both the North and creation of the conceptual master plan. that is the problem. Next week the South areas. In that effort the Chamber In 2004, after numerous steering com- Manhattan City Commission will have a interviewed a number of developers. mittee meetings, the steering committee work session and receive an up date on Based upon the 2000/2001 experience, recommended, and the City the Downtown Redevelopment project. the Chamber believed it was clear that Commission, along with the Manhattan This is the project where two older sec- the community would not accept a devel- Urban Area Planning Board, accepted the tions of the downtown area were taken oper that had no risk and was simply conceptual master plan. over by the City and a developer. The going to rely on the City to assemble and (Editor’s Note: The Free Press project has never progressed the way the finance land upfront. The Chamber attended these meetings and the one City Staff, the Developer Dial Reality or thought that the community would only point made time and time again was the experts had envisioned. Millions of support a developer at risk. The that the City should not build a “Big dollars and years into the project the Chamber interviewed a number of Box” strip mall. Citizens were told that number of business required to pay for regional developers with the capacity to the maximum building would be the project have not been signed to a accomplish the level of project envi- 30,000 to 35,000 sq. ft. At the time Dial contract. The City released a Memo to sioned and only one was willing to take gave out the name of Kohl's the Commission Tuesday that gives a the risk for this project in this market. Department Store as a possible anchor. history of the project. If the writer of the Dial Realty was recommended to the When Kohl's did not sign a contract it “history” ever leaves the warm and fuzzy City Commission by the Chamber. The put the project on hold for about a job at City Hall they can always take up City performed their due diligence with year. Dial has HyVee Grocery Store in fiction writing. The history does give a Springsted, the City’s financial advisor, another town and HyVee agreed to time line on the project but it does not and Dial Realty proved to be a reputable build in Manhattan but they needed a give a true account of what went on. The firm with assets, experience and the much larger building. Free Press is printing the complete report financial resources to complete the proj- The “no big box” pledge was replaced and giving an added editorial opinion ect. with a 79,000 sq. ft. building with room with Editors Notes. Here is the report: (Editor’s Note: At the time the for an additional 20,000 HyVee State of Downtown Chamber stated they had interview Grocery Store.) Redevelopment five companies. The Free Press ask for April 2009 but did not receive the names of the 2005 The 10 year process known as the other four companies.) In 2005, the City created a Downtown Redevelopment has pro- Redevelopment District pursuant to the gressed to a point in the spring of 2009 This is the former Kansas Electric building which the City did not buy but built around it. In 2003 and 2004, the City entered into TIF law. The TIF district included both whereby direction and decisions for per- pre-development agreements with Dial the North and South redevelopment manent financing (STAR and TIF resulted in the current status of the North developer approached the City, suggest- in this memo is that the City per- to perform certain functions including a areas. The creation of the TIF district bonds), the Discovery Center (master and South Projects. Following the his- ing that they could redevelop the north formed their due diligence with the financial and participatory role in the allowed several things to occur. First, it plan and programming), rezoning (South torical outline, this paper sets forth three area with large retail anchors such as City’s financial advisors, and the development of a conceptual master allowed the City to acquire property area to a PUD), and construction (sal- different possible scenarios which the Target and/or Home Depot; however, in Chicago Company proved to be a rep- plan. The pre-development agreement within the district, using eminent domain vage, demolition, South 4th Street, City could follow, related to the two order to do so they needed the City to utable firm. It was the Manhattan Free also envisioned Dial purchasing the Steel if necessary, in order to accomplish the water, sewer, storm water) relative to the Projects, from this point forward. The acquire all of the necessary property, Press that proved the company had & Pipe site in advance of a formal agree- Projects. Second, it allowed the differ- South Project Area are pending. Also, scenarios also attempt to point out the with no risk to them. In order for the started three other project and ment with the City, in advance of the ence between the local taxes, both sale at the same time, the North Project Area risks and impacts to the community for City to acquire the property, the City declared bankruptcy. It was the vote of establishment of a TIF district, and in and ad valorem, currently generated by continues to build out and retail stores each. needed to establish a Redevelopment the School Board that saved the City.) advance of finalizing the conceptual the property and local taxes generated by are scheduled to open in the summer and District pursuant to the TIF law. The master plan. the redevelopment (the “increment”) to fall. The North Housing is starting to HISTORY 1999 City actually entered into a development 2002 (Editor’s Note: Dial Reality could be used to finance public costs, including receive some attention and potential pro- In 1999 City Administration and citi- agreement with that developer, and Because the redevelopment of both the have purchased the Steel & Pipe site, the cost to acquire the property. Third, it posals are expected in the coming zen led committees began to study the attempted to establish a TIF district on north and south areas remained an impor- developed the property and been out gave the City the opportunity to also use months. potential of redeveloping the areas north two different occasions. In both tant issue to the community, in 2002 a of Manhattan within two or three the state’s share of sales taxes to finance There are several components of the and south of the Manhattan Town Center. instances the other local taxing jurisdic- private planning effort was led by the years. Dial Reality’s problem was certain public improvements through the North and South Projects that are linked, The “Downtown Tomorrow” plan was tions stopped the process before it ever Chamber of Commerce and Brent when the City of Manhattan got issuance of STAR bonds, if the state because of provisions in the respective adopted in 2000, which identified the really started. The TIF law allows either Bowman’s office, in combination with involved and expended the project. agreed. Development Agreements related to primary redevelopment areas along 3rd the County or the School District to pre- downtown merchants and community With the City running the project it those Projects, as well as because of and 4th Street, both north and south of vent the establishment of a leaders. Several conversations and meet- became larger, more expensive and 2006 practical and market factors. Decisions the existing mall. Redevelopment District by the City, if ings were held by the Chamber and extended the time line. Dial Reality is In 2006, the City and Dial Realty and/or progress in one area will have an they raise an objection within 30 days Bowman, gaining insight and direction the big winner in this project but what entered into a Final Development impact on the financing and timing in 2000 and 2001 after the City’s notice of intent to create as to how the parties involved in those should have been a small strip mall on Agreement for the North Project Area. another. In order to fully understand and In 2000 and 2001 the City reacted to a the District. During the 30 day veto peri- meetings thought the North and South the old Steel & Pipe property turned The agreement set forth the responsibili- realize these connections, a historical couple different, unsolicited private pro- od, in one instance Riley County took redevelopment areas should look, what into a $200 million project.) ties of Dial as the developer to construct outline is set forth below which identi- posals for redevelopment on the north action to stop the project, and in the they should contain, and how the City In 2003 the City engaged Brent retail and residential uses, along with fies the numerous actions, both public end of the study area.

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