City moves forward on subdivision
Two resolutions for the public infrastructure of the St. Joseph Subdivision, Planning Commission appointments, and a third-quarter financial report were part of the agenda at the regular meeting of the city commission on Wednesday.
The city intends to develop a new residential subdivision on land donated to the Concordia Land Bank and located near the intersection of West 11th Street and Highland Drive, the former site of the hospital.
The establishment of this new residential subdivision was included in the FY2023 Capital Improvement Program (CIP). The city was awarded a Moderate Income Housing (MIH) grant from the Kansas Department of Commerce to address a shortage of moderate-income homes in Concordia, which also included the use of Rural Housing Incentive District (RHID) to pay for anticipated bonds to be issued to construct the public infrastructure to serve these new homes.
The city of Concordia took title to the property on August 1, 2023, following the demolition of the former hospital building. This property ownership was then transferred to the Concordia Land Bank effective September 5, 2023.
The Planning Commission approved the preliminary and final plats of the St. Joseph Subdivision during their October 3, 2023 meeting. The city commission accepted the final plat during their October 18, 2023 meeting. Campbell & Johnson Engineers, P.A. completed design work for the public infrastructure to serve the St. Joseph Subdivision, and are soliciting bids to construct the streets, water, sanitary sewer, and storm sewer improvements. Sidewalks are included in the cost of public infrastructure but will be built with the construction of each spec home to avoid costly re-work.
A bid letting is expected at the end of November, with the city commission considering bids at their December 6, 2023 meeting.
The next step in the process is to secure financing for the public infrastructure improvements. City staff has been consulting with bond adviser Piper Sandler regarding this project and wants to continue working with them to finance the above-noted improvements.
By unanimous vote, the city commission approved a financial services agreement with Piper Sandler and payment of associated fees per the agreement.
Piper Sandler will consult with and advise the city, establish and execute a plan of financing, as well as other duties associated with these tasks. This agreement will be effective for notes and bonds issued during 2023, 2024, and 2025.
In exchange for these services, Piper Sandler will receive compensation between $15,000-$60,000, depending on the number of bonds issued, and also receive compensation between $10,000-$45,000 depending on the amount of general obligation temporary notes issued.
The commission then approved Resolution 2023-2166 which authorizes and provides for the construction of certain capital improvements for the St. Joseph Subdivision, and Resolution 2023-2167 that authorizes the offering for sale of general obligation temporary notes, Series 2023, of the city of Concordia.
Resolution 2023-2166 authorizes the improvements and the issuance of general obligation bonds in
the amount of $1,410,000 to pay the costs of the improvements.
Resolution 2023-2167 authorizes the issuance of $1,340,000 in City of Concordia, Kansas, General Obligation Temporary Notes, Series 2023. The Notes will consist of fully registered notes in the denomination of $5,000 or any integral multiple thereof.
The Issuer (City of Concordia) reserves the right to increase or decrease the total principal amount of the Notes or the schedule of principal payments depending on the purchase price and interest rates bid and the offering prices specified by the successful bidder.
The calendar of events for the general obligation temporary notes is: November 7, 2023, a conference call with the rating agency; November 14, 2023, receive the note rating; November 15, 2023, distribute the preliminary official statement; November 17, 2023, distribute first draft of note resolution and legal documents; November 28, 2023, the Note Sale at 11 a.m.; December 6, 2023, present the results of the note sale at the city commission meeting and vote to adopt the note resolution; on December 7 – 20, 2023, distribute the final official statement, prepare the closing memorandum, apply for DTC eligibility, and submit the transcript to the attorney general; December 21, 2023, close the note issue.
In other action, commissioners approved the appointment of Darren Hill and Troy Leduc for another three-year term on the Planning Commission.
Commissioners also approved adding the property located at 504 East 10th Street into the demolition program. This house was condemned by the City on July 5, 2023, and the property was accepted into the demo program in September. However, the previous owner, Everett Ford, sold the property at a later date to Larry Eubanks.
Eubanks solicited two bids for demolition, the lowest being $9,750 from Gillespie's Company of Sterling, Kansas. The demo program policy allows for a maximum reimbursement of $4,000 from the City.
City finance director Amber Farha reported that, as of the third quarter of 2023, the city is ahead of its budget expectations for sales tax. The city budget for sales tax for the year 2023 is $1,970,000. Sales tax as of the third quarter of 2023 is $1,771,417.48. This is $81,643.08 more than the same time in 2022, which reported $1,689,774.40.
Farha noted that when the City collects sales tax, it is actually for sales two months prior to the month it is received. This means that collections for the third quarter are for the months of May 2023 to July 2023.
The commissioners then met in executive session for fifteen minutes. No further action was taken.
The commission meeting adjourned at 6:13 p.m.