2001 06 05 City Council Minutes

Please download to get full document.

View again

of 45
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Information Report
Category:

Engineering

Published:

Views: 3 | Pages: 45

Extension: PDF | Download: 0

Share
Related documents
Description
CITY COUNCIL PROCEEDINGS JOURNAL 173 JUNE 5, 2001 PAGE 234 MINUTES OF THE MEETING OF THE CITY COUNCIL Wichita, Kansas, June 5, 2001 Tuesday, 9:00 A.M. The Ci
Transcript
ty Council met in regular session with Mayor Knight in the Chair. Council Members Brewer, Fearey, Gale, Martz, Pisciotte, present. (Council Member Lambke absent) Chris Cherches, City Manager; Gary Rebenstorf, Director of Law; Pat Burnett, City Clerk; present. Rev. David McCann, Westwood Presbyterian Church, gave the invocation. The pledge of allegiance to the flag was participated in by the Council Members, staff, and guests. Minutes -- approved The minutes of the regular meeting of May 22, 2001, were approved 6 to 0. (Lambke absent) AWARDS AND PRESENTATIONS RECOGNITION McConnell Air Force Base was recognized for its contribution to the community. RECOGNITION Doug Mahin was presented a medallion. PROCLAMATIONS Proclamations previously approved were presented. UNFINISHED BUSINESS CONDEMNATIONS REPAIR OF DANGEROUS AND UNSAFE STRUCTURES – 637 SOUTH OSAGE AND 804 WES T HENDRYX. (District IV) Agenda Report No. 01-0572A. The dangerous and unsafe properties at 637 South Osage and 804 West Hendryx were first before City Council on May 1, 2001. No one appeared; the City Council adopted a resolution giving 10 days to start repairs or 10 days to complete demolition. On May 15, 2001, these properties changed ownership. The new owners have contacted Council Member Gale to request a re-hearing of the condemnation cases against the properties. On May 22nd, staff inspected the properties with the owners. The premises of both properties had been mowed and the properties were secure. Work was in progress on the exterior of 637 South Osage. As of May 24, 2001, the property taxes on both addresses were still delinquent. Pursuant to State Statute, required resolutions for the May 1, 2001 hearing were published twice, on March 24, 2001, and on March 31, 2001. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. CITY COUNCIL PROCEEDINGS JOURNAL 173 Motion -- -- carried JUNE 5, 2001 PAGE 235 Gale moved that the Resolutions declaring the buildings as dangerous and unsafe, but allowing 60 days (from June 5, 2001) to have the exterior of the buildings brought into Code compliance, be adopted. Such extension would be conditioned on the following: (1) all real estate taxes have been paid to date as of June 5, 2001; (2) the structures have been fully secured and will continue to be kept secured; and (3) the exterior premise is mowed and kept free of debris and is maintained during renovation. Failing any of the above, the City will proceed with condemnation, allowing 10 days to start demolition and 10 days to complete removal of the structures be adopted. Motion carried 6 to 0. (Lambke absent) RESOLUTION NO. 01-218 A Resolution finding that the structure located on Lots one and three on Osage Avenue, Glendale Addition to Wichita, Sedgwick County, Kansas, commonly known as 627 South Osage, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight RESOLUTION NO. 01-219 A Resolution finding that the structure located on Lots one and three on Osage Avenue, Glendale Addition to Wichita, Sedgwick County, Kansas, commonly known as 804 West Hendryx, Wichita, Kansas, is unsafe or dangerous and directing the structure(s) to be made safe and secure or removed, read. Gale moved that the Resolution be adopted. Motion carried 6 to 0. (Lambke absent) Yeas: Brewer, Fearey, Gale, Martz, Pisciotte, Knight NEW BUSINESS VIA CHRISTI IRB ISSUANCE OF HOSPITAL FACILITIES IMPROVEMENT AND REFUNDING REVENUE BONDS – VIA CHRISTI. (Districts II, III, and VI) Lisa Jones Industrial Analyst reviewed the Item. Agenda Report 01-0689. On April 17, 2001, the City Council approved a Letter of Intent to issue its Hospital Facilities Improvements and Refunding Revenue Bonds to Via Christi in the amount not-to-exceed $166 million. The proceeds of the proposed Bonds will be used to refinance the City’s outstanding Hospital Facilities Improvements and Refunding Revenue Bonds, issued to refinance improvements to St. Francis Regional Medical Center in 1992 and to finance new construction and equipment at Via Christi’s facilities in Wichita and in Pittsburg, KS. Via Christi is asking to increase the not-to-exceed amount in the Letter of Intent by an additional $17,000,000 in order to allow additional funds in the refinancing. The proposed amended amount is not-to-exceed $183,000,000. Via Christi is requesting the issuance of IRBs at this time. Via Christi Health System was formed in October of 1995 through the consolidation of the St. Francis Ministry Corporation of the Sisters of Sorrowful Mothers and the CSJ Health System of Wichita of the Sisters of St. Joseph of Wichita. During that same period, St. Francis Regional Medical Center and St. Joseph Medical Center were consolidated to form Via Christi Regional Medical Center. Via Christi Health System headquarters is located in Wichita at 929 N. St. Francis. Via Christi Health System now operates and manages five hospitals on six campuses, a rehabilitation center, five senior care facilities and 18 physician practices in three states. CITY COUNCIL PROCEEDINGS JOURNAL 173 JUNE 5, 2001 PAGE 236 Bond proceeds will be used to refinance outstanding Hospital Facilities Improvement and Refunding Revenue Bonds and in addition to finance the cost of purchasing, acquiring, constructing, furnishing, and equipping improvements to certain hospital facilities owned by Via Christi Health Systems located in Wichita and Pittsburg, Kansas. The City of Pittsburg and Crawford County have consented to the issuance of the bonds by the City of Wichita. Via Christi wishes to have all of their financings consolidated under one master bonding arrangement. An estimated analysis of the sources and uses of project funds is: SOURCES OF FUNDS Advance Refunding of 1992 Refunded Bonds Construction of Hospital Improvements St. Francis Campus St. Joseph Campus Mt. Carmel Total Refunded Bonds Furnishings, Machinery & Equipment St. Francis Campus St. Joseph Campus Mt. Carmel Cost of Issuance Total Improvements Total cost of Project $95,000,000 20,000,000 15,000,000 16,600,000 $146,600,000 $15,000,000 9,500,000 8,100,000 3,800,000 $ 36,400,000 $183,000,000 The firm of Hinkle Elkouri Law Firm, L.L.C. will serve as bond counsel in the transaction. Solomon Smith Barney, Inc. has agreed to underwrite the bonds. Via Christi agrees to comply with the Standard Conditions contained in the City’s IRB Policy. Via Christi agrees to pay all costs of issuing the bonds and agrees to pay the City's $2,500 annual IRB administrative fee for the term of the bonds. Via Christi does not request a property tax abatement in conjunction with the IRBs. The City Attorney's Office will review and approve the form of bond documents prior to the issuance of any bonds. The public hearing held in conjunction with this item satisfies the TEFRA Hearing requirement in the federal tax code for tax exempt bonds. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Fearey moved that the public hearing be closed; the amendment to the Letter of Intent for Hospital Facilities Improvement and Refunding Revenue Bonds to Via Christi Health System in an amount notto-exceed $183,000,000, subject to the Standard Letter of Intent Conditions, and the Agreement be approved; and the Ordinance be placed on first reading. Motion carried 6 to 0. (Lambke absent) -- carried ORDINANCE An Ordinance authorizing the City of Wichita, Kansas to issue its hospital facilities improvement and refunding revenue bonds (Via Christi Health System, Inc.) in the aggregate principal amount of not to exceed $183,000,000 for the purposes of refunding certain outstanding Hospital Revenue Bonds and constructing and equipping certain additions to existing hospital facilities; prescribing the form and authorizing execution of a bond indenture by and between the city and Intrust Bank, N.A., as Bond Trustee; prescribing the form and authorizing the execution of a Second Supplemental Restated and Amended Lease by and between Via Christi Regional Medical Center, Inc. and the City; prescribing the form and authorizing the execution of a Second Supplemental Sublease and Obligation No. 3A by and between the City and Via Christi Regional Medical Center, Inc.; prescribing the form and authorizing the execution of a First Supplemental Lease by and between the City and Mt. Carmel Medical Center, CITY COUNCIL PROCEEDINGS JOURNAL 173 JUNE 5, 2001 PAGE 237 Inc.; prescribing the form and authorizing the execution of a First Supplemental Sublease and Obligation No. 3B by and between the City and Mt. Carmel Medical Center, Inc.; prescribing the form and authorizing the execution of an Escrow Deposit Agreement by and among the City, Via Christi Health System, Inc., Via Christi Regional Medical Center, Inc. and Intrust Bank, N.A.; approving the form of Guaranty Agreement and Obligation No. 3AA by and between Via Christi Regional Medical Center, Inc. and the Bond Trustee; approving the form of Guaranty Agreement and Obligation No. 3BB by and between Mt. Carmel Medical Center, Inc. and the Bond Trustee; authorizing execution of a Tax Compliance Agreement by and among the Issuer, the Bond Trustee and Via Christi Health System, Inc.; prescribing the form and authorizing the execution of a Bond Purchase Agreement by and among the City, Via Christi Health System, Inc. and Salomon Smith Barney Inc., as purchaser of the 2001 Bonds, introduced and under the rules laid over. ENVISION IRB ISSUANCE OF INDUSTRIAL REVENUE BONDS – ENVISION, INC. (District III) Lisa Jones Industrial Analyst reviewed the Item. Agenda Report No. 01-0690. On November 17, 1998, City Council approved a three-year month Letter of Intent to issue Industrial Revenue Bonds in the amount not-to-exceed $6 million to Envison, Inc. The funds were used for the acquisition of 10.5 acres of land at Pawnee and Water and the construction of a new training and employment facility designed specifically for people with low vision or no vision. On March 16, 1999, City Council approved issuance of $4 million to Envision, Inc. The comp any is now requesting the City to issue its Industrial Revenue Bonds in the amount of $ 2,000,000. Envision’s current Wichita facility serves as corporate headquarters and manufactures a variety of products including paper towels, seal-closure plastic bags, tee-shirt plastic bags, specialty bags, plastic sheeting, high visibility belts, gun slings, and gun sling adapter kits (for U.S. Department of Defense). These products are manufactured by individuals who are blind or developmentally disabled and may otherwise not be main-streamed into the Wichita community. Envision also has facilities in Pittsburgh, KS and Kansas City. Envision will employ 95 blind or low vision individuals in the new IRB financed facility. The uses of bond proceeds are as follows: USES OF FUNDS Construction Costs Equipment and Furnishings Total cost of Project $1,426,733 573,267 $2,000,000 The tax-exempt Bonds will be purchased by Davidson Securities and publicly reoffered to investors. The firm of Hinkle Elkouri Law Firm, L.L.C., serves as bond counsel in the transaction. Envision, Inc., has complied with the City’s Letter of Intent Conditions. Envision, Inc., agrees to pay all costs of issuing the bonds and agrees to pay the City's $2,500 annual IRB administrative fee for the term of the bonds. Envision, Inc., does not request a tax exemption in conjunction with the expansion project. As a tax-exempt not-for-profit organization, property acquired by Envision is generally exempt fro m ad valorem taxation. Bond documents needed for the issuance of the bonds have been prepared by bond counsel for the project. The City Attorney's Office will review and approve the final form of bond documents prior to the issuance of any bonds. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Knight moved that public hearing be closed; the Ordinance authorizing the execution and delivery of documents for the issuance of Industrial Revenue Bonds in an amo unt of $2,000,000 be placed on first CITY COUNCIL PROCEEDINGS JOURNAL 173 -- carried JUNE 5, 2001 PAGE 238 reading; and the necessary signatures be authorized. Motion carried 6 to 0. (Lambke absent) ORDINANCE An Ordinance authorizing the city of Wichita, Kansas to issue its Industrial Revenue Bonds, Series V, 2001 (Envision, Inc.) in the aggregate principal amount of $2,000,000 for the purpose of providing funds to construct and equip additions to certain existing manufacturing, administrative, and technological facilities for the blind/visually impaired; prescribing the form and authorizing execution of a first supplemental trust indenture between the City and Intrust Bank, N.A., Wichita, Kansas, as Trustee; prescribing the form and authorizing execution of a First Supplemental Lease Agreement by and between the City and Envision, Inc.; approving the form of a Guaranty Agreement between Envision, Inc., as Guarantor, and Intrust Bank, N.A., Wichita, Kansas, as Trustee; prescribing the form and authorizing the execution of a Bond Purchase Agreement between the City, Envision, Inc., and Davidson Securities, a division of Gold Capital Management, Inc. as purchaser of the Series V, 2001 Bonds, introduced and under the rules laid over. FEIST IRB LETTER OF INTENT FOR INDUSTRIAL REVENUE BONDS – FEIS T PUBLICATIONS, INC. (District II) Ray Trail Director of Finance reviewed the Item. Agenda Report No. 01-0691. Feist Publications, Inc., is a successful publisher of telephone directories in Kansas, Oklahoma and Texas. Feist Publications started in Spearville, Kansas in 1978, and opened its first branch office in Wichita in 1985, and is currently located at 118 South Main. Feist Publications is requesting a Letter of Intent for Industrial Revenue Bonds in an amount not-to-exceed $5,500,000 for the purpose of financing the cost of acquiring, constructing and equipping a two-story corporate headquarter office building to be located at 3020 N. Cypress in northeast Wichita, near Webb Road and 29th Street North. Feist Publications is also requesting a 10-year property tax abatement for its new headquarters facility. There are nineteen directories covering trade area and metropolitan areas including Wichita, Oklahoma City, Lubbock, and Kansas City. These directories include white page and yellow page information. The directories are delivered free to each household and business in the area served. Revenues are generated from the sale of advertising in the yellow pages. Office are located in the metropolitan areas listed and also Spearville, KS. Feis t currently employs approximately 270 people in those offices and plans to add 200 new jobs over a 10-year period. CITY COUNCIL PROCEEDINGS JOURNAL 173 JUNE 5, 2001 PAGE 239 USES OF FUNDS Land Building Remodeling Costs Equipment Cost of Issuance Total cost of Project $ 600,000 3,000,000 1,500,000 300,000 100,000 $5,500,000 The proposed bond issue will finance the construction of a 48,000 sq. ft. building which will be constructed by local developer Casey Backrodt and leased to Feist Publications. Feist will initia lly occupy approximately 15,000 sq. ft. as its corporate headquarters and sublease the balance of the building to other non-retail, office tenants. It is Feist’s intention to gradually take over the entire building by moving customer-service and marketing functions to Wichita from other Feist offices, over a ten-year period. City staff and Feist Publications have negotiated the terms of a property tax abatement designed to abate the taxes only on property actually occupied by Feist. Under this arrangement, all bond-financed improvements will be subject to a 100% five-year abatement, plus a second five years subject to Council review and approval. Each year of the abatement period, Feist will pay the City a “payment-inlieu-o f-taxes” equal to the prorated amount of taxes that would have been due on the portion of the building not occupied by Feist, based on current appraised value and current tax rates. Wichita State University’s Center for Economic Development and Business Research is conducting a cost-benefit analysis of the impact the proposed project will have on state and local government revenues. The cost-benefit analysis is required by state law whenever a property tax exemption is being considered. The ratios of benefits-to-costs are as follows: State of Kansas City of Wichita Sedgwick County USD 375 3.88 to 1 2.25 to 1 1.80 to 1 1.46 to 1 The firm of Hinkle Elkouri Law Firm, L.L.C., will serve as bond counsel in the transaction. Froggatte & Company has agreed to underwrite the bonds. Feist Publication agrees to comply with the Standard Conditions contained in the City’s IRB Policy with the exception of the requirement that the IRB recipient use procedures for selection of contractors, subcontractors, engineers, architects and suppliers that do not exclude minority and women-owned businesses. The construction work had already begun before Feist approached the City to discuss IRBs and tax abatement. Feist Publication agrees to pay all costs of issuing the bonds and agrees to pay the City’s $2,500 annual IRB administrative fee for the term of the bonds. It is estimated that the proposed property tax abatement will save Feist Publications $37,600 per year. The City’s Attorney’s Office will review and approved the form of all bond documents prior to the issuance of any bonds. Mayor Knight Mayor Knight inquired if anyone wished to be heard and no one appeared. Motion -- Pisciotte moved that the public hearing be closed; the Letter on Intent to Feist Publications, Inc., for Industrial Revenue Bonds in an amount not-to-exceed $5,500,000, for a term of six-months, subject to the Standard Letter of Intent Conditions, and 100% five-plus-five year tax abatement with payment-inlieu-of taxes be approved; and the necessary signatures be authorized. Motion carried 6 to 0. (Lambke absent) -- carried CITY COUNCIL PROCEEDINGS JOURNAL 173 JUNE 5, 2001 PAGE 240 PARK WEST PLAZA LETTER OF INTENT FOR ASSISTED CARE AND INDEPENDENT LIVING FACILITY REFUNDING REVENUE BONDS – PARK WEST PLAZA, L.L.C. (District V) Ray Trail Director of Finance reviewed the Item. Agenda Report No. 01-0692. On September 19, 1995, the City Council approved issuance of Assisted Care Facility Revenue Bonds in the amount of $4.2 million to Park West Plaza, L.L.C. On September 9, 1997, City Council also approved issuance for Elderly Housing Revenue Bonds, in an amount not to exceed $3.5 million. Bond proceeds were used to construct and equip a 60-unit assisted living facility, a 24-unit special care assisted living facility, and 18 independent living units. Park West Plaza, L.L.C., wishes to refinance its outstanding bonds and is requesting City Council approval of a Letter of Intent to issue its Assisted Care & Independent Living Facility Refunding Revenue Bonds in an approximate amount of $7,000,000. Park West Plaza, L.L.C., is an assisted care facility, on an approximate 6-acre tract of land located at 505 N. Maize Road in west Wichita. The units range from 562 to 635 square feet and accommodate single or double occupancy. Park West Plaza provides dining services, housekeeping and linen service, security and safety features, numerous in-house social activities, and scheduled transportation. The special care assisted living section is staffed by a registered nurse to oversee the individualized care of each patient, including dressing, bathing, blood pressure monitoring, medication, supervision and assistance with mobility. The independent residential living consists o
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks
SAVE OUR EARTH

We need your sign to support Project to invent "SMART AND CONTROLLABLE REFLECTIVE BALLOONS" to cover the Sun and Save Our Earth.

More details...

Sign Now!

We are very appreciated for your Prompt Action!

x