goddard city council meeting star bond power point

Goddard City Council Meeting STAR Bond Power Point Presentations

Please note that the City did not start using power points until November 2013. City Council meetings before November 18, 2013 and the content provided here is an overview of the material contained within the agenda reports. For detailed information please refer to the specific agenda report the respective meeting’s agenda packets. Agenda Packets may be referenced through the City’s agenda center http://goddardks.gov/AgendaCenter or by clicking on the Transparency drop down menu, or by entering the meeting date into the webpage search box located at the top of each webpage.

November 18, 2013 G.1 STAR Bond Project Plan & Public Hearing April 21, 2014 G.1 STAR Bond Project Plan & Development Agreement Amendment #1 September 15, 2014 G.1 Community Improvement District Public Hearing G.2 Community Improvement District Ordinance G.3 Issuance of Up to $31 Million in STAR Bonds March 16, 2015 G.2 Goddard Destination Development STAR Bond Site Plan Approval G.3 Development Agreement Amendment #2 G.4 Resolution of Intent to Issue Construction Goods & Materials Sales Tax Exemption for Project January 4, 2016 H.5 Issuance of $3,160,000 in Temporary Notes for STAR Bond Site & Infrastructure Development February 1, 2016 H.1 Engineering Service Agreement with General Engineering Company GEC for STAR Bond Site Preparation & Development In Accordance with Amended Development Agreement H.2 Engineering Service Agreement with City Engineer Harlan Foraker (CED) to Inspect Construction of STAR Bond Site Improvements March 21, 2016 H.1 STAR Bond Development Agreement #3 May 16, 2016 H.4 STAR Bond Infrastructure Construction Bid Award H.5 STAR Bond Infrastructure Temporary Note Authorization totaling $770,000 (to be financed through STAR Bond property taxes or residual STAR Bond Issuance) June 6, 2016 G.1 Temporary Note Bond Sale totaling $770,000 December 4, 2017 STAR Bond Development Agreement #4

http://goddardks.gov/AgendaCenter

G.1 Conduct a Public HearingConsidering the Adoption of a STAR

Bond Project Plan

November 18, 2013

G.1 Background

• December 17, 2012, the City Council adopted Ordinance 736 creating a STAR Bond District in accordance with provisions of state statue K.S.A. 12-17,160 et seq.

• October 7, 2013 regular City Council meeting Resolution 13-08 was unanimously adopted. Resolution 13-08 established a STAR Bond Project Plan public hearing date of November 18, 2013 at 7pm.

G.1 Background (con’t)

• Upon the completion of a public hearing considering adoption of a STAR Bond project plan the next step in establishing a legal authority to use Sales Tax And Revenue (STAR) bond financing is the adoption of a STAR bond project plan.

• The STAR Bond project plan provides more detailed information on the proposed project and how STAR bond financing will be used.


• The STAR bond process is divided into two major components:

– the first is the establishment of a STAR bond district;

– the second is the approval of a STAR bond project plan.

• The STAR bond district was established with approval from the Secretary of Commerce on January 16, 2013.


• The second step in the overall process is the adoption of a detailed STAR bond project plan and feasibility study, which is prepared in concert with the Developer and submitted to the Goddard Planning Commission for a finding that the plan is consistent with the City of Goddard Comprehensive Plan.

• The Planning Commission unanimously found that the STAR bond project plan is consistent with the intent of the Goddard Comprehensive Plan.


• The City Council will consider adoption of the project plan at future meeting date in December 2013 or January 2014.

• The City Council adopts the project plan by ordinance.

• The STAR bond project plan and ordinance are then submitted to the Secretary of Commerce for final approval of the STAR bond project.

• After the Secretary’s approval is received, the project may begin and STAR bonds may be issued up to the amount specified by the Secretary of Commerce.


• Information on the STAR bond project plan has been posted on the City’s website, Channel 7, Facebook, and Twitter pages.

• A link to the City’s STAR Bond webpage has been published multiple times on each medium.

• The web addressed is located: http://www.goddardks.gov/starbond/

• The City’s main webpage www.goddardks.gov

http://www.goddardks.gov/starbond/

http://www.goddardks.gov/

G.1 Analysis

• The STAR bond project plan will be anchored by the Olympic Quality Natatorium (aquatic/swimming complex), which will be operated by the International Swimming Hall of Fame.

• 150 room Class A hotel with conference facility and water park.

• The anchor also includes 8 lighted baseball/softball fields and 8 lighted soccer/football fields.

• The project also includes: – a family entertainment center, – a dinosaur themed attraction and education park, – additional retail, dinning, and shopping opportunities

G.1 Analysis (con’t)

• When completed the STAR bond project is an estimated $160 million project.

• If constructed as planned the project will increase the assessed valuation of the City of Goddard and USD 265 by nearly $40 million.

• The increase will help provide a solid property tax base for schools, roads, public projects, and city and school district operations.

• The increase in tax revenue from the STAR bond district will not increase resident’s tax rates.

• The increase in assessed valuation will potentially help to reduce tax rates for residents and business.


• The project is the GAC multi-sport athletic complex will be the anchor of the Project.

• The GAC will feature: – an Olympic-style indoor aquatic center– outdoor pool area, – 4 outdoor soccer fields, – 4 baseball/softball fields (with the ability to add 2

additional fields) – Approximately 150-room full-service hotel and

conference center, which will be located adjacent to the aquatic center and sports fields.


• The GAC includes: – 50 meter competition pool– 50 meter warm-up pool– Integrated diving well for competitive and exhibition

spring board and platform diving events

• The support facilities includes – Locker and changing rooms – Retail shop– Swimming Hall of Fame traveling exhibit museum– Competitive Leadership training facilities, – Media support functions


• 1,200 spectator seat premier athletic venue operated by the International Swimming Hall of Fame, which will organize and host youth swimming competitions and events throughout the year.

• This unique destination tourism attraction will be a primary draw of visitor activity to the Project.


• The Project will feature two other family related tourism attractions: Jurassic Lands &Family Entertainment Center

• Jurassic Lands

– Jurassic Lands attraction featuring a dinosaur-themed family attraction that will be both educational and entertaining.

– Including an amphitheater, a fossil dig site, an expedition trail, and life-sized dinosaurs.


• Family Entertainment Center – Will provide more traditional “entertainment”

activities such as indoor and outdoor games and family restaurants.

– The Center is proposed to include arcade games, as well as other family entertainment components.

– These will be integrated with the restaurant components to provide an experience that will be enjoyable for visitors of all ages.


• Canyon Research Southwest, a qualified third-party consultant that has evaluated numerous public financing projects across the State of Kansas, prepared the STAR Bond Feasibility Study and is included as Exhibit G in the project plan.

• This study projects that when the project is fully complete an estimated 2.4 million visitors will visit the site


• STAR bond eligible costs that exceed the amount of actual STAR bond financing available will be funded by private debt and equity

• Prior to the issuance of any STAR bonds, the City and the developer will enter into a development agreement that stipulates the actual sources and uses of public and private funding on all projects


• Based on the Project Plan’s (1) Estimated Project Costs (2) Estimated STAR Bond Proceeds, and (3) private debt/equity and other financial incentives, the STAR Bond Proceeds are expected to pay for the Project Costs, as contemplated under the Act, when supplemented by private debt and equity.


• Estimated STAR Bond Project Costs: $159,291,770+/-

• Estimated STAR Bond Eligible Project Costs: $41,678,805 +/-

• STAR Bond Proceeds: $61,719,342+/-

• Private debt/equity (Total Costs less Eligible Costs): $117,612,965+/-

• For a detailed list of estimated project cost please refer to page 5 of the project plan. Detailed estimated costs eligible for reimbursement is located on page 6 of the project plan.

G.1 Financial

• Costs associated with the adoption of the STAR bond project plan will be paid from the Capital Improvement Fund Special Revenue Projects Legal Publications line item 90-520-6420

• All eligible costs of the City relating to the project will be reimbursed with STAR bond proceeds.

G.1 Financial (con’t)

• If the STAR bond project is approved at a future meeting date expenditures will later be transferred to the STAR bond project account

• Any STAR bond issued for this project will be special obligation bonds of the City, payable from the incremental sales tax revenue remitted by the Kansas Department of Revenue for payment of the bonds

• Should the City ever approve a local sales tax, only the portion contained within the district would be applied to the STAR Bond repayment

G.1 Ancillary Items

• Legal

– Approve as to Form

• Recommendations/Actions

– It is recommended the City Council conduct a public hearing on the adoption of a STAR bond project plan.

Conduct the Public Hearing

• Open the public hearing

• Receive public comment– Citizens may address the Governing Body to speak

for no more than three (3) minutes regarding the proposed project plan.

– The Public Hearing is not a question and answer session but a process for citizens address the Governing Body and to record their comments in the minutes.

• Close the Public Hearing

G.1 STAR BondProject Plan Adoption

&Development Agreement Authorization

April 21, 2014

City Liability

• The full faith & credit of the City is not used with STAR Bonds

• Local participation is subject to the City’s full faith and credit.

– For this project it is smaller than one component of one phase of a standard residential development.

Background

• December 17, 2012– Conducted a public hearing to establish a STAR Bond

District– Adopted Ord. 736 creating the district

• January 16, 2013– Sec. George approves the STAR Bond district

• October 7, 2013– Council adopted 13-08 setting a public hearing for Nov. 18,

2013 on the project plan

• November 18, 2013– Conducted a public hearing and received comments on the

project plan.

STAR Bond Information WebpageCreated in December 2012Updated When Appropriate

www.goddardks.gov/starbond/

Information also on Cox Channel 7

http://www.goddardks.gov/starbond/

Site Plan Concept

Project Plan Overview

STAR Bond District&

Phase I Development

Phase I is the hotel & conference center, natatorium, and ball fields.

Phase I Financial Overview

Total Project: $70.8 millionSTAR Bond Issue: $25.4 millionCity Contribution: $1.25 millionPrivate Equity: $44.15 million

Phase I STAR Bond Uses$29,831,688

• Land: $2,500,000• Infrastructure: $4,102,750• Construction Costs: 19,154,813

– Hotel – N/A– Aquatic Center - $17,804,813– Ball Fields – 1,350,000– 2 Pad Sites – N/A

• East Parcel Construction: N/A• Architecture & Engineering: $1,362,153• Legal & Accounting: N/A• Sales: N/A• Miscellaneous Costs: N/A• Contingency: $2,711,972Note: Any uses above the $25,400,000 will be private equity financing.

What’s This Get?

-- 150 room all suites hotel & conference center-- Olympic-style indoor aquatic center-- Outdoor pool area-- 4 baseball/softball fields-- Retail & restaurant opportunities for visitors & the community

Hotel, Convention, & Aquatic Center

Hotel Overview

150 Room All-Suites

Full Service Hotel with Restaurant

Conference Center

Aquatic Center/NatatoriumOverview

• 50 meter Competition Pool• 50 meter Warm-up Pool• Competition Diving Well

– Platform & Spring Board Diving Events– Water Polo Events

• Locker & Changing Rooms• Retail Shop• Competitive Leadership Training Facilities• Media Support Venues• 1200 Spectator Seating in the Premium Venue

Baseball/SoftballOverview

4 Tournament Quality fields

Venue Visitation

• Phase I is Projected to Attract 297,500 Visitors

– Aquatic Center & Ball Fields

• 262,500 visitors

– Hotel & Conference Center

• 35,000 visitors– Please note the Wichita metro has a need for additional hotel

room space

– At full build out visitors are projected to be more than 2.1 million visitors.

Phase I Jobs

• Construction Phase– 318 Construction Jobs– 528 Indirect Construction Jobs

• Full Time or Operational Jobs– Hotel & Conference Center

• 95 FTE Jobs

– Aquatic Center & Ball Fields• 15 FTE Jobs

• At Full Build Out– Walmart 190 FTEs– Restaurants 90 FTEs– Convenience Store 14 FTE’s

Development Agreement

Between City of Goddard

&

Goddard Destination Development, Inc.

Site Plan Concept

Master Developer

• Goddard Destination Development is the Master Developer for the western parcel

– The City will

• Facilitate construction

• Consult with the developer on – 3rd party development

– Proposed amendments to the project plan, bond documents, & use of STAR Bonds.

Development Schedule

– Infrastructure Improvements • Started by January 1, 2015

• Completed by January 1, 2016

– Construction Phase • Started by January 1, 2016

• Completed by January 1, 2017

– Other components – “Future Uses” at the Developer’s discretion.

– The Governing Body may request modifications to this schedule.

Other Responsibilities

• Comply with Goddard Municipal Code

– City zoning, planning, platting, & trade codes

• Dedicate any necessary right-of-way & easements at no cost to the City

• Carry insurance at least 100% replacement value w/ $500,00 max. deductible

• The City & Developer indemnify each other

Project Financing

• STAR Bond Issuance: $25,400,000• STAR Bonds Repaid Using State & Local Sales

Contributions– 6% Local Transient Guest Tax– Local Portion of County Sales Tax– 1% Community Improvement District

• See next slide

– 1% Local Sales Tax – Inside the District only, excludes the City At-Large (outside the STAR Bond District)• City calls the election by May 19, 2014 for vote during the

August primary

City Contribution

• 1% Community Improvement District– Will be used to repay the City’s local contribution– 22 year notes

• The City’s contribution– $1,250,000 for infrastructure improvements &

miscellaneous capital items– Water, Sewer, Storm Water Improvements do not go

against the debt limit– Roadways & other improvements do go against the debt

lid• Current debt lid is less than 9%• Projected debt lid would be less than 6%

STAR Bond Issuance

• City must comply with all statutory requirements

• 15 days reimbursement for costs

• STAR Bonds may be privately placed

• There is no City obligation for full faith and credit of the bonds.

– This excludes the City’s $1,250,000 contribution

Tenant Qualifications & Pre-approvals

– The Developer will consult with the City on retailers, restaurants, and/or destination attractions

• This will include a written description

– The City has 15 days to object to tenants within 15 days

– The City designates the City Administrator as the City Representative in this review process

Other Items

– Hotel Provisions

• The Hotel flag must be approved in writing by the City.

• The City must approve in writing the initial & any subsequent hotel operators

– City has access to all leases and agreements for tenants and leases

– Sales tax information will be provided to the City representative

– The developer shall pay all taxes and assessments

Other Items

– Assignability, Transfer, & Reorganization

• The City must approve any assignments and transfers

• The developer may undergo corporate reorganization as necessary

– Any litigation must occur within the State of Kansas

Financial

• Current Citywide Assessed Valuation

– $35,753,767

• Estimated Phase I Fiscal Impact (Generates)

– $50.3 million in Appraised Valuation

– $12.575 million in Assessed Valuation

– $377,970 in new property taxes (excludes Library millage)

• Projected Citywide Assessed Valuation

– $48,328,767

Legal Considerations

• The Bond Ordinance and Development Agreement

– Drafted by the City’s bond counsel, the law Firm Gilmore & Bell, P.C.

• The City Attorney has approved the documents as to form

Governing Body Questions

• For City Staff

• For the Developer

Motion:

• Waive the Reading of the Ordinance

– Voice Vote

• Consider the Ordinance the STAR Bond Ordinance adopting a STAR Bond Project Plan for STAR Bond District and Approving a Development Agreement

– Roll Call

G.1 CID Public Hearing

September 15, 2014

Background

• April 21, 2014 – Adopts Ord. 755

• STAR Bond Project Plan w/1% CID

• STAR Bond Development Agreement w/1% CID

• May 8, 2014– State Approves Project Plan w/1% CID

• August 22, 2014– City Received CID Petition for 1% tax

• August 25, 2014– Council Adopts R-14-13 calling a public hearing

Analysis / Actions

• Mayor Declares the Public Hearing Open

• Once recognized by the Mayor:

– Citizen’s May Address the Governing Body

– Comments Limited to 3 Minutes

• Mayor Declares the Public Hearing Closed

G.2 CID Ordinance

September 15, 2014

Background


• STAR Bond Project Plan w/1% CID• STAR Bond Development Agreement w/1% CID



• August 25, 2014– Council Adopts R-14-13 Calling a Public Hearing– Governing Body Conducts Public Hearing

Analysis

Analysis (con’t)

• 1% Sales Tax

– Special Revenue Fund: Goddard Olympic Park CID Sales Tax Revenue Fund

• Repay STAR Bond P&I and the City of Goddard for infrastructure

• Estimated Project Cost $64,042,315

• Additional 1% City Administrative Fee

• Estimated to Generate Ave. of $87,000/year

Analysis (con’t)

• Project Plan & Development Agreement

– Contain 1% CID Provision

• Project Plan in Paragraph C (pg12)

• Development Agreement in Section 5.08 (pg13)

Financial & Legal

• Financial Considerations

– Est. Average $87,000/yr.

• Legal Considerations

– Approve as to Form

– Ordinance Authored by City Bond Counsel

Recommendation

• Adopt the proposed ordinance

• MOTION:

– Waive the Reading of the Ordinance (Voice)

• MOTION:

– Adopt the Ordinance Establishing the Goddard Olympic Park CID; Authorizing the Projected Improvements & Levying a 1% CID Sales Tax (Roll Call)

Actions (If Adopted)

• ACTION:

– Mayor declares the ordinance duly passed

• ACTION:

– City Clerk numbers Ordinance #759

G.3 STAR Bond Issuance

September 15, 2014

Background


• STAR Bond Project Plan w/1% CID• STAR Bond Development Agreement w/1% CID



• August 25, 2014– Council Adopts R-14-13 Calling a Public Hearing– Governing Body Conducts Public Hearing

• September 15, 2014– CID Public Hearing Conducted– CID Created Levying 1% Sales Tax

Analysis

• Special Revenue Bond (Not GO Bond)

– The City’s “full faith & credit” is not at risk

• Authorizes Up To $31 Million in STAR Bonds

• Authorizes the Mayor, City Staff, & Retainers to perform the necessary actions to deliver the bonds IAW w/ State & Federal Laws

Financial

• STAR Bond Revenue Sources*

– 6.15% State Sales Tax

– 1% Sedgwick County Sales Tax

– 1% Local Sales Tax

– 6% Transient Guest Tax

– 1% CID – Western Portion of District

*Collected w/in STAR Bond District Only, Not City At-Large

Legal

• Will Take Effect Upon Publication

– Scheduled for October 2, 2014

• Documents Authored by Bond Counsel

– Reviewed by City Attorney & City Administrator

Recommendation

• Adopt the proposed ordinance

• MOTION:

– Waive the Reading of the Ordinance (Voice)

• MOTION:

– Adopt the Ordinance (Roll Call)

Actions (If Adopted)

• ACTION:

– Mayor declares the ordinance duly passed

• ACTION:

– City Clerk numbers Ordinance #760

G.2Consider a Site Plan

Goddard Destination Development

March 16, 2015


• Goddard Planning Commission made a recommendation to approve the Site Plan for the Goddard Destination Development.

• The Project is in the Goddard STAR Bond District

• It includes:– Crowne Plaza Hotel

– Sports Bar and Family Entertainment Center

– Aquatic and Wellness Center

– 4 Baseball/Softball Fields


• Project Consists of:

– Hotel

– Aquatic and Wellness Center

– Family Entertainment Center

– Sports Bar and Grill

– 4 Field Baseball/Softball Complex


• Project Team

– S&L Hospitality

• Founded in 2005 by Craig Stark and Eric Lund– Formerly of Great Wolf Lodges

– Prior experience developing and/or managing more than $800 million in hotels and resorts, indoor waterparks, high-end spas and a combined 92,000 square-feet of conference and meeting space.


• Site Information

– The property is owned by Goddard Destination Development, INC

– 108 acres

– Kellogg Frontage Road to the north

– Goddard Galleria Property to the east

– Pate Addition to the west and north

– Goddard Road to the west


• Site Information

– Zoned C-2 General Commercial

– Proposed Development Meets all Bulk Requirements

– Five Lots

• Lot 5 will house the Goddard Destination Development

• Lots 1, 2, 3, and 4 are for future development


• Site Information– Parking

• 690 Total Shared Parking• 4 Hotel Shuttle Bus Parking Stalls• 10 Bus Parking Stalls• 14 ADA Required

– Facility Access• A new entrance road with multiple lane access will be required for

the property. • Kellogg Drive south approximately 700’ • west approximately 500’ to the facility parking area.


• Building Information:

–23,564 square foot building footprint

–88,192 total square feet

–141 Total Guest Rooms on four stories

• 2nd Floor = 47 Rooms

• 3rd Floor = 47 Rooms

• 4th Floor = 47 Rooms

Goddard Destination Development• Building Setbacks: All setbacks meet or exceed existing

minimums

– North Side: 247’ from building to Kellogg Drive

– West Side: 102’ from property line to building

– East Side: Not Applicable

– South Side: Not Applicable

• Parking and Pavement Setbacks: All setbacks meet or exceed existing minimums

– North Side: 28’ from property line to parking

– West Side: 60’ from property line to pavement

– East Side: 25’ from property line to pavement

– South Side: Not Applicable

Goddard Destination Development– The Family Entertainment Center and Sports Bar

– Continued Building Materials Theme

• E.I.F.S

• Cast Stone

• Steel Roof Entry

• Aluminum Coping


• Aquatic and Wellness Center:

• Building Details:

– 72,376 square foot building footprint

– 96,521 square foot total building space

• Mezzanine viewing area and Wellness Center

– 8 lane Olympic Competition Pool that can be converted to:

• 23 lane Short Course

– Diving Pool

• 1 meter board (2)

• 3 meter board (2)


• Aquatic and Wellness Center:

– Therapy Pool

– Conference Meeting Room Area

• 4,400 Square Feet that can be quartered

• Shared with Hotel Facility

– 700 square foot Swimming Museum

– Seating Capacity for 940 visitors and 13 ADA seating areas plus additional bleacher seating

– Reserved Bus Parking Area

Goddard Destination DevelopmentBaseball/Softball Complex:

Four multipurpose fields for baseball and softball

Standalone concessions area

The developers fully intend on hosting tournaments 30 weeks out of the year if not more.

The fields will be able to accommodate all levels of softball and baseball from youth leagues to advanced high school teams.

Goddard Destination Development• 4 fields

– Turf Infields and Warning Track Area

– Spectator Bench Seating

– All fields will include lighting

– Championship Field to be 100% synthetic turf

Room for 4 Additional Fields in a Future Phase


• Contingent Items

– Landscaping

• A separate landscaping plan will be submitted. The plan is being designed based upon the Wichita/Sedgwick County Zoning Code Landscaping Plan. The plan and installation of all required landscaping will be required to be completed prior to issuing a certificate of occupancy. The developers are working to ensure that the existing tree row that borders the property and the Pate Addition is not harmed and have moved certain features to further ensure this goal.



– Site Lighting

• A complete schematic of lighting will be required to be submitted to staff before a certificate of occupancy is issued. Base on the location of all developed ground, it is anticipated that spillover will not be an issue.

• Ball Fields

– Musco Light – Structure Green



– Drainage

• A complete site drainage plan has been submitted and the City Engineer is in the process of review the document.

• The project proposes the use of 6 drainage detention and retention ponds

• Lots 1, 2, 3, and 5.

• Future development of Lot 4 will be required to provide their own stormwater management.

G.3 STAR Bond Development Agreement Amendment #2

March 16, 2015

G.3 Amend Development Agreement

• Background:– January 16, 2013

• STAR Bond District Created

– May 8, 2014• STAR Bond Project Plan & Development Agreement Approved

– September 23, 2014• Sales Tax and Special Revenue (STAR) Bonds Issued

– December 15, 2014• Development Agreement Amendment #1 for project timeline

– February 23, 2015• City increases contribution to the project • Staff notes development agreement amendment forthcoming

– February 26, 2015• City supports issuance of sales tax exempt IRBs


• Analysis:– Modifies Section 5.01

– Increases amount from $1.25million to $3million

– Clarifies city’s construction of interior roadway is separate from the $3million amount

– Adds Paragraph 2• States that cost is for infrastructure and other

necessary project costs

– Project Deadlines remain unchanged• Construction starts by May 1, 2015


• Financial:– Increases Cost by $1.75million

– Staff Recommends issuance of temporary notes with a 4-year term as soon as building permit is issued

– Utilize a portion of project’s property taxes for temp note payments• Estimated annual interest cost is $40,000-$45,000/yr

• Set aside a portion for principle retirement

– Take Additional Actions on • April 20th – Res. authorizing improvements & bond sale

• May 18th – Accept low bid & adopt bond sale ord.


• Legal:

– The document authored by City Bond Counsel Kevin Cowan and reviewed by City Attorney Tom Docking.

– The developers agree to the amendment.


• Recommendation:

– Authorize the Mayor to execute the agreement.

• Motion:

– Move to authorize the Mayor to execute the agreement. (Voice Vote)

G.4 IRB Resolution of Intent

March 16, 2015


• Background:– January 16, 2013

• STAR Bond District Created

– May 8, 2014• STAR Bond Project Plan & Development Agreement Approved

– September 23, 2014• Sales Tax and Special Revenue (STAR) Bonds Issued

– December 15, 2014• Development Agreement Amendment #1 for project timeline

– February 23, 2015• City increases contribution to the project

– February 26, 2015• City supports issuance of sales tax exempt IRBs


• Analysis:– Resolution authorizes an amount not to exceed

$55,500,000 in IRB’s.• Amount is expected to be significantly lower

– IRBs would authorize application of sales tax exemption• Sales Tax Exemption must be approved by State Court of Tax

Appeals

– Directs Mayor & Staff to take steps to proceed w/solicitation of bids for the issuance.

– The Council would consider an ordinance in April or May to finalize the issuance of the IRBs.


• Financial:

– Only direct cost is publication cost in the Times-Sentinel News.

• Legal:

– The City is not obligated with the issuance of IRBs

– Ordinance authored by City Bond Counsel Kevin Cowan and reviewed by City Attorney Tom Docking


• Recommendation:

– Adopt the resolution as presented.

• Motion:

– Move to adopt the proposed resolution as presented. (Voice Vote)

H.5 Issuance of Temporary Note for STAR Bond District Improvements

H.5 Issuance of Temp Note

Background:At the February 23, 2015 Special Meeting the City Council unanimously committed $3,000,000 to the STAR Bond project.


Background:• The City Council unanimously agreed to issue

$3,000,000 to augment the STAR Bond project at the February 23, 2015 meeting.

• This resolution will revoke and supersede the November 16th sale authorization resolution R15-04.


Analysis:• The resolution authorizes staff and the City’s

financial Advisor to solicit bids for the issuance of $3,160,000 in temporary notes for improvements within the STAR bond district.

• The additional $160,000 is the cost of capitalized interest and issuance fees. Bids will be due Monday, February 1, 2016.

• The temporary notes will mature February 1, 2017.


Analysis Continued:• The temporary notes will be converted into GO

bonds with payment from the City’s General tax levy within the Bond & Interest Fund.

• Temporary Note interest payments will be made semiannually on June 15th & December 15th in 2016 and 2017.

• Notes callable on February 1, 2017.• The temporary notes will be delivered to the

best bidder on February 10, 2016.


Analysis Continued:• The timing of this issuance should

coincide with the initial construction of the STAR bond improvement.

• Construction anticipated late this week or early next.

• Formal Groundbreaking to be scheduled soon.


Financial:Temporary Note Interest Payments will be made from the City’s Bond & Interest Fund.

Legal Considerations:Approved as to form, crafted by City Bond Counsel Kevin Cowan.


Recommendations/Actions:It is recommended the City Council: Approve the proposed resolution.

Motion: Adopt the proposed resolution. (VOICE)

H.1 Engineering Service Agreement

February 1, 2016

H.1 Background

• February 23, 2015 City Commits

– $3 million in infrastructure

– Interior Roadway Build

• January 19, 2016

– City issues temp notes for infrastructure contribution

H.1 Analysis

• Agreement with General Engineering Company (GEC)

• Total Cost/Amount Not To Exceed is $53,454.40

• 11,300 sq yds of asphalt roadway

• ¾ mile of roadway lane miles– Mistyped in agenda report as 1.5 lane miles

• 735 linear feet of sanitary sewer main

• 755 linear feet of 10” water main

• 920 linear feet of stormwater improvements

H.1 Analysis (con’t)

• February 1st -- ESA Approval• February 29th – Preliminary Design• March 28th – Final Design & Permitting• April 26th – Bid Opening• May 2nd – Award Bid/Construction Contract• May 23rd – Preconstruction Conference• May 31st – Begin Construction• July 15th – Substantial Completion• August 1st – Final Completion

H.1 Other Items

• Financial:– Financed through temp notes in Bond & Interest

Fund for design & construction.

– Issuance in late April to early May

• Legal- Approved as to form

• Recommendation:– Staff’s recommended action to the City Council

approve the Engineering Service Agreement as presented.

H.2 Engineering Service Agreement

February 1, 2016

H.2 Background

• February 23, 2015 City Commits

– $3 million in infrastructure

– Interior Roadway Build

• January 19, 2016

– City issues temp notes for infrastructure contribution

H.2 Analysis

• Agreement with Certified Engineering Design

• Total Cost/Amount Not To Exceed is $46,772.60

• Inspects all phases of construction, reviews designs, assists in the bid process, etc.

• Provides progress reports, including working days and work completed logs, test report records, reviews and recommends pay estimates, and certifies materials used, etc.


• February 1st -- ESA Approval• February 29th – Preliminary Design• March 28th – Final Design & Permitting• April 26th – Bid Opening• May 2nd – Award Bid/Construction Contract• May 23rd – Preconstruction Conference• May 31st – Begin Construction• July 15th – Substantial Completion• August 1st – Final Completion

H.2 Other Items

• Financial:– Financed through temp notes in Bond & Interest

Fund for design & construction.

– Issuance in late April to early May

• Legal- Approved as to form

• Recommendation:– Staff’s recommended action to the City Council

approve the Engineering Service Agreement as presented.

H.1 STAR Bond Development Agreement Amendment #3

March 21, 2016

H.1 Background

• Development Agreement

– Adopted April 21, 2014 w/ Ord. 755 (included project plan)

• Amendment #1

– Approved December 15, 2014

• Amendment #2

– Approved March 16, 2015

H.1 Background (cont.)

• Development Agreement

– Goddard Destination is Master Developer until April 21, 2018

– Project 150 hotel and natatorium

– Original Schedule

• Infrastructure: In place by 1/1/17

• Construction: Completed by 1/1/17

– Schedule May Be Amended As Needed (Sec. 3.04)

– Contribute $1,250,000 to Project


• Development Agreement – STAR Bond Issuance for natatorium, land, &

issuance costs $30,000,000

– STAR Bonds Issued September 29, 2014

– STAR Bonds Repaid By• State of Kansas Sales Tax 6.5%

• Sedgwick County Sales Tax (w/in STAR Bond Dst)

• City 1% Sales Tax

• City Transient Guest Tax 6%

• Community Improvement Dst Tax 1% (east parcel only)


• Amendment #1

– Pushed Infrastructure Start Date to May 15, 2015

• Delayed due to Local Sales Tax Election

– City Commits to finance access road

– City Commits to finance

• Amendment #2

– Increased Participation from $1.2M to $3M

H.3 Analysis

• Section 1.01 is Deleted & Amended to Read:

– “Hotel Project” means the hotel to be constructed as part of Phase I, consisting of a not less than 141 room all suites hotel with a flag approved by the City.

H.3 Analysis (cont.)

• Section 3.03 The First Sentence is Deleted & Replaced to Read:

– For a period of five (5) years beginning on the Effective Date, the Developer shall be deemed the “Master Developer” for the project.

H.3 Analysis

• Section 7.03A the Following Sentence is Added:

– The City hereby approves the Hotel flag of Crowne Plaza Hotel.

H.1 Ancillary Items

• Financial:

– There are no financial impacts associated with this action.

• Legal:

– Reviewed & approved as to form by City Attorney & Bond Counsel.

• Recommendation:

– Adopt the development agreement as presented.

H.4 STAR Bond DistrictInfrastructure Bid Award

May 16, 2016

H.4 Background

• April 21, 2014 City Council Unanimously Adopts Development Agreement (DA)

• DA contains a provision for up to $1.25 million for district infrastructure improvements.

• $1 million programmed for this in 2016 CIP

• Amount in addition to $3 million for the hotel & sports complex.

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CALL KANSASONE-CALL

1-800-344-7233

Requires M in. 3 Work Days

Not ice Before You Excav ate

EXISTING CONTOURS, TYP

EXISTING 12" WATERMAIN, TYP

EXISTING GAS LINE, TYPEXISTING TELEPHONE, TYP

EXISTING BOX CULVERTS

PROPERTY LINES, TYP

EASEMENT LINE, TYP

NOTE:LOCATION OF EXISTING UNDERGROUND UTILITIES

SHOWN ARE APPROXIMATE AND SHOULD BEFIELD

VERIFIED PRIOR TO CONSTRUCTION.

KELLOGGSTREET

FUTURE 6TH STREET

PROPOSED DEVELOPMENT,

BY OTHERS

PROPOSED STREET SEGMENTS

BIDDING DOCUMENTS

PROPOSED SANITARY SEWER LINE 2

PROPOSED WATERMAIN LINE 1

PROPOSED SANITARY SEWERLINE 1

PROPOSED WATER MAIN LINE2

GRAND SLAM WAY100'

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PROPOSED STORM LINE 2

EXISTING STORM SEWER, TYP


100'

EXISTING FENCE, TYP


EXISTING EDGE OF TREES, TYP

EARTHWORKQUANTITIES:

RAW CUT = 365 CU. YD. RAW FILL = 4910 CU. YD.

EXISTING 15" SANITARY SEWER, TYP

NOTES:

FINISHED GRADE TO EXISTINGGRADE

SOIL BORINGS INDICATE APPX. 4" OF TOPSOIL IN THE PROJECTAREA

http://www.generalengineering.net/

H.4 Analysis

• Bids solicited from 35 vendors.

• 3 bids received

• Project was solicited & bid as 1 project for streets & stormwater, water, sewer.

• Staff requests bid award & project budget authorization.

H.4 Analysis (con’t)VENDOR AMOUNT

APAC $587,268.62

Dondlinger $605,248.00

Cornejo & Sons $632,119.12


• Low Bid: APAC for $587,268.62

• Roadway (incl. stormwater): $481,760.12

• Water: $64,173.50

• Sewer: $41,335.00


• Staff Request a Project Budget of $756,250.

Item Cost

Construction $587,268.62

Engineering & Design $53,450

Inspection & Administration $46,780

Contingency 10% $68,750

H.4 Ancillary Items

• Financial: Administered in Fund 92 STAR Bond Fund

• Legal: Approve as to form

• Recommendation: Award the bid to APAC Shears Kansas for $587,268.62 & authorize a project budget of $756,250 as presented. (Voice)

H.5 STAR Bond DistrictInfrastructure Temp Note Project

AuthorizationMay 16, 2016

H.5 Background

• The City committed to the infrastructure improvement through the development agreement & STAR Bond agreement with Kansas State Department of Commerce.

H.5 Analysis

• Authorizes issuance of General Obligation temporary notes to construct Crowne Drive & Grand Slam Way, as well as water, sewer, and stormwater improvements.

• Total cost of improvements: $770,000 including issuance fees.

H.5 Analysis (con’t)IMPROVEMENT AMOUNT

Roadway & Stormwater $631,650

Sewer $84,150

Water $54,200

TOTAL $770,000

H.5 Ancillary Items


• Legal: Constructed by City Bond Counsel & Approved as form by City Attorney

• Recommendation: Adopt the resolution as presented. (Voice)

G.1 STAR Bond DistrictInfrastructure Temp Note Sale

June 6, 2016

G.1 Background

• The City committed to the infrastructure improvement through the development agreement & STAR Bond agreement with Kansas State Department of Commerce.

• May 16th Council adopted Res. 16-07 authorizing the project.

G.1 Analysis

• Authorizes staff and the City financial adviser to prepare a preliminary official statement to solicit bids for $770,000 of improvements, including issuance fees.

G.1 Analysis (con’t)IMPROVEMENT AMOUNT

Roadway & Stormwater $631,650

Sewer $84,150

Water $54,200

TOTAL $770,000


• Interest payments made on semi-annually on January 1st & July 1st of 2017 & 2018.

• The notes are to be retired on July 1, 2016.

• Council will consider bids at the June 20th

regular meeting.

G.1 Ancillary Items


• Legal: Constructed by City Bond Counsel & Approved as form by City Attorney

• Recommendation: Adopt the resolution as presented. (Voice)

G.1 STAR Bond D.A. #4

December 4, 2017

G.1 Background• STAR Bond District Approval January 2013• STAR Bond Project Plan Approval September 2013• Development Agreement Adopted April 2014

– 60,000 sq ft 50-meter pool w/ seating for 1200– 50-meter warm-up pool & diving well, & locker rooms– 4 softball/baseball fields– Hotel– Commercial Pad Sites (Phase II)

• Community Improvement District Created August 2014• Development Agreement Amendment #1 December 2014

– Infrastructure completed by January 1, 2016– Phase I construction completed by January 1, 2017

• Development Agreement Amendment #2 March 2015– City agrees to fund $3,000,000 for infrastructure & other costs

• Development Agreement Amendment #3 March 2016– Hotel project is a 141 all-suites Crowne Plaza hotel

• S&O, Inc. Ready to Proceed w/ Site Development• www.goddardks.gov/299/STAR-Bond

http://www.goddardks.gov/299/STAR-Bond

G.1 Analysis• Assigns Master Developer rights from Goddard Destination Development

to S&O, Inc for a period of five (5) years.• 100 room luxury IHG Holiday Inn deluxe suites and rooms with family bunk

beds• 43,000 sq ft aquatic center with 8 lane 25 meter indoor aquatic center

w/diving.• 600 spectactor seating and dressing/locker rooms• Indoor water park• 4 competition softball/baseball fields

– 1 Championship all turf field– 3 turf infields with grass outfields

G.1 Analysis• Old Chicago brand pizza grille & tap room• Construction on Phase I begins by April 1, 2018 with January 1,

2020 deadline• Phase 2 undertaken at developers discretion• City’s $3,000,000 contribution continues with priority of funding as

below:– Funding for 1 Turf outfield for the ballfield component – Kellogg Intersection Access (KDOT Project # 54-87 KA-4362-01) US-54

& Barber Drive– Any remaining funds to used to turf the remaining ballfields as

possible

G.1 Analysis

• Deletes Section 302(c) of the bond indenture agreement calling for June 2018 redemption

• Exhibit A includes a site plan concept

• Exhibit B provides a project budget and use of funds

G.1 Analysis

• Concept includes 15 retail outparcels

• 137,288 sq.ft mall development

• Korb Maxwell, Esq. legal counsel for the developer will kick-off the developer’s portion of the presentation.

S & O Investments, INC.

Who we are

S & O Investments, INC. Partners

Amro Samy

Cecil O’Brate

As of today, successfully created a hospitality trifecta with one

hotel, two franchise restaurants and one indoor waterpark. In

addition, the pair have conceptualized and completed two

single-family housing developments, two for-rent duplex

developments and a construction company. Their

investments, all based in Kansas, exceed 100 million.

Amro Samy

In addition to his partnership, Samy has one independent restaurant and two hotels

Samy has been awarded

Choice Hotels 2016 Premier Hotelier of the Year

Inn of the Year four years in a row

Choice Hotels Platinum Hotel Award five years

Choice Hotels Gold Hotel Award

Top Earning Old Chicago Franchises

Multiple state and local level awards

Cecil O’Brate

Cecil has multiple oil and agribusiness investments including a 3D seismic company and vast farming operations

Ingram's Magazine named Cecil one of the as 50 Kansans You Should Know in 2016

O’Brate Foundation

has contributed over 300 million in scholarships

Actively involved in Youth Entrepreneurs®

an engaging program that prepares students from low-income families for success in the workplace and in life

Projects

Clarion Inn and Conference Center

Complete Remodel

Samy’s Spirits and Steakhouse

Remodel & Concept Redesign

Sleep Inn & Suites

New Build

Projects

Pioneer Road Estates

Concept, Design & Build

Stone Creek Plaza

Purchase & Remodel of Commercial and

Retail Store Front

Old Chicago Pizza and Taproom-Garden City

Develop Property for Franchise

Projects

Old Chicago Pizza & Taproom- Manhattan, KS

New Build

Heritage Inn & Suites

Upscale Design and Build

Clarion Park Estates

Concept, Design and Build

Projects

Parrot Cove Indoor Waterpark

New concept build

Parrot Cove Indoor Waterpark 360

Parrot Cove Indoor Waterpark Website

http://www.gardencitykansasphotographer.com/parrotcove/Heritage Inn Parrot Cove Water Park.html

https://parrotcovewaterpark.com/

Ongoing Projects

Old Chicago Pizza & Taproom

Liberal, Kansas

Lawrence, Kansas

Salina, Kansas

Comfort Suites, Liberal

Parrot Cove Indoor Waterpark| Garden City, KS

Size: 32,500 SF | 8,000 SF of water

Water slides, Lazy river, Children’s pool, Water play structure, Arcade, Birthday

rooms, Concessions

Heritage Inn & Suites Hotel| Garden City, KS

Size: 64,000 SF

95 Guest rooms, Meeting rooms, Business center, Exercise room

Old Chicago Pizza & Taproom| Liberal & Lawrence, KS

Size: 5,700 SF

Family-friendly dining, Bar, Patio seating

Site Plan| Goddard, KS

Restaurant: Seating 250

Luxury Hotel: 100 room

Aquatic Center: 25m. Competition swim

pool with 600 spectator seats

Waterpark: Water features, pools & slides

Softball/Baseball Complex

Site Plan

Questions

G.1 Ancillary Items

• Financial: Total cost of item, was it budgeted, if not operating impact, and recommended cost center line item

• Legal: Approve as to form

G.1 Ancillary Items

• Recommendation: It is recommended the City Council adopt the proposed STAR Bond Development Agreement Amendment #4 as presented. (VOICE)