October 22, 2007

7:30 p.m.  

The Governing Body of the City of Edwardsville, Kansas met in regular session on Monday, October 22, 2007, at 7:30 p.m. in the City Hall Council Chambers.

The following Councilmember’s were present with Mayor Heinz Rodgers presiding:

 Chuck Adams                                    Craig Crider                                               
 Doug Danner                                    Patrick Isenhour
 Bob Lane

The following staff members were present:

                        Reed Walker, City Attorney

                        Michael Webb, Interim City Administrator

                        Phyllis Freeman, City Clerk

                        Cliff Lane, Fire Chief

                        Jim Moore, Interim Police Chief

MINUTES OF OCTOBER 8, 2007

Councilmember Lane moved to approve the minutes of October 8, 2007. Councilmember Isenhour seconded. 

Mayor Rodgers requested a roll call vote
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.  

STATEMENT OF BILLS - $62,997.31 

Councilmember Adams moved to approve the statement of bills in the amount of $62,997.31. Councilmember Crider seconded. 

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.

REQUESTS OR COMMENTS FROM THE PUBLIC 

John Kindred, Chairperson Edwardsville Cemetery Board gave an update on the African American cemetery. On November 5, 2007 a supervised crew from the Lansing Penitentiary will be at the cemetery hand cleaning the one acre square site. It is planned to fence the area once the clean up has been completed. Adjoining property owners will be notified. They plan to enter the cemetery from Edwardsville Drive. Mr. Kindred spoke with the church and city officials, it will benefit everyone. The entry will be a walking path only trying to stay off the cul-de-sac and the plan is to try to fix some of the headstones. There will not be any future burials. They will utilize the city’s chipper. This clean up project will take some time to complete.

Administrator Webb stated there is a 50 foot easement on the plat for the cemetery and the city signed off on the agreement for the crew from the penitentiary. 

Edith Leising 610 Edwardsville Drive asked now that Lloyd Beth is certified will he get the police chief job back?

Mayor Rodgers stated no.

Mrs. Leising stated she thought that when he was relieved of the chief position that he was promised the chief job when he was certified. Is he still going to be employed with Edwardsville? Her personal opinion is that if the man was told he would get his position back, he should get it back. If the intent was to never give him the position back or keep him on then why was he sent to be certified

Mayor Rodgers asked the members of the council if anyone had promised to give him the job back.

The members of council all indicated they had not promised the job back.

City Attorney Reed Walker stated that is a personnel matter that the Governing Body has no business discussing in public.

Mrs. Leising stated people have taken the elected officials for their word, if they don’t keep their word they may not get re-elected if they do run.

Councilmember Lane requested allowance for Tom Overby to speak regarding the trip to Topeka regarding the tower project.

Tom Overby, lead developer on the Kansas Landmark Tower project stated they met with the Secretary of Commerce regarding the 25% private equity funding in order to meet the guidelines for STAR Bonds. He spoke directly with the Secretary of Commerce regarding the Edwardsville application for STAR Bonds. Edwardsville’s application addressed every guideline, every regulation, and every requirement under the statutory authority of the state, which means STAR bond law. He addressed lending policies with the Secretary of State. At the end of this discussion the Secretary of State agreed with him 100%. That is to the credit of the City of Edwardsville in the completed application sent to the State. Norman Garr Legal Counsel for the development will be sending Mayor Rodgers a letter this week addressing the 25% equity in the form of cash. They ask the City Council respond to the states letter with the financial advisor opinions along with the letter from Norman Garr so that they can be done with STAR bonds one way or another. The Secretary of State will either approve the STAR bond application or rescind it.

Mr. Overby stated it is his personal opinion as the developer that the State of Kansas has given the City of Edwardsville a set of criteria that no other city has been given; they are giving bogus information in regards to the city; that was the information that was passed out this evening.

Mr. Overby directed the Governing Body to the last page of the information provided and stated there are 8 STAR Bond projects that have been approved by the State of Kansas. Not one of those projects have an equity line in it; it lists the financing that was done; STAR bonds; public money; private investment; equity was not done on any of the 8 STAR bond projects. The first letter in the information provided is a newspaper report that Mr. Overby feels is accurate from Mr. Monaco who is a spokesman from the State of Kansas. Mr. Monaco stated the state has asked the tower project to provide 25% equity and they have asked for 50% equity from everyone else. The other eight applicants were allowed close to 50% of the STAR Bond funds; public funds were counted which are General Obligation Bonds; private investment was included which is IRB’s or Industrial Revenue Bonds. The State of Kansas counted all those funds as private equity towards those projects. 50% STAR bonds and 50% other money for those projects. In the case of Edwardsville they are not counting the private activity bonds as private capital as was done and they are not accepting A.G. Edwards letter. He asked that the Council forget about the A. G. Edwards letter they will be bringing cash equivalent to the 25%. The IRB’s approved by the city upon STAR Bond approval. If the State does not give STAR bond approval they will turn their financing plan around and come back to Edwardsville for a private placement of the entire project cost.

Mr. Overby was very disappointed with the State of Kansas but pleased with the City of Edwardsville. Rules and guidelines should be uniform across the board.

Mr. Overby thanked the City Council and particularly Councilmember Crider for representing the city, the citizens and the developer. He will be back with information regarding the 25% private equity funding in cash.

Councilmember Crider stated he will continue to work for this project. He recently found out that Heartland Park in Topeka was awarded 50% STAR Bond funding. He was disappointed with the Secretary of Commerce when there was a letter of support from Jeff Boerger of the Kansas Speedway

Mayor Rodgers stated he also attended the meeting and pointed out that this project did not lack support. It became obvious at this time that the finances needed to be in place.

Councilmember Adams stated this is a great project and we are all excited about it. It seems that now it is all about the money.

Del Coleman, 13007 Riverview stated he had purchased land located in Edwardsville. He was told the city was eager to assist small businesses in locating here. When he discussed the land with Jim Denham he was told that Industrial Revenue Bonds would be issued for the site that he purchased.

Mr. Coleman stated he also spoke with Scott Anderson Bond Counsel for the city regarding IRB’s and felt that he was discussing the application and getting information in good faith. If he had known the intent is not applied to the ground he purchased he would not have bought it. He asked that the Economic Development Committee and the City Council do what is right; he has a quarter of a million dollars invested; he asked that the Council reexamine Resolution 2006-02.

Mr. Coleman stated he would not have applied but he was told it was available; it has inflicted financial damage for him if he is not able to utilize the IRB’s. He has asked for 50% abatement for 10 years possibly consideration for less of a percentage and less time may be considered.

Jim Denham, Leavenworth, Kansas stated he had received IRB’s on the property both on the east and west side of the entrance going into FedEx. He spoke with David Queen and Scott Anderson and stated his intent is to do what is in the best interest of the city.

Mr. Denham stated as written in Resolution 2006-02; Section 9 Authorization to Proceed allows him to proceed with marketing the property which he did with Mr. Coleman for a period of months. Section 10 Benefit of Resolution; this resolution will inure to the benefits of the City and the Companies. If IRB’s are not issued it is difficult to promote the city. He is under contract to build an 80 room hotel; the city should not change the rules in the middle of a project when he has over two million dollars of his own money invested in this project in this city. It would be to the city’s best interest to allow Mr. Coleman to develop; there is no other site in the city like he has right at I-435 & Woodend Road. There is a building on site and is ready to be constructed for Mr. Coleman and it would be in the city’s best interest to let him continue with this project.

Mr. Denham stated he acted upon several conservations he had with the previous Administrator to bring smaller business sites into Edwardsville. If the city rescinds the resolution it shows that the city is not interested in development in a good area in the city that could bring many more good projects to the city. Twenty-nine years in the business he has never had a city council rescind anything that they have approved before.

Mayor Rodgers asked Mr. Denham how much in revenue bonds have been issued to date on that property.

Mr. Denham stated none; his truck stop does not qualify for revenue bonds or ad valorem tax. Mr. Coleman’s project will; the hotel will; and he is working with another individual for a 10,000 square foot facility that will be north of Mr. Coleman’s site.

Councilmember Danner asked if he had any on going conservations with the administration after this resolution was passed.

Mr. Denham stated yes, several over a year; there were meetings with the city engineer, the city administrator and members of the council members in attendance.

OLD BUSINESS 

CONSIDERATION OF RECOMMENDATION OF DENIAL FROM ECONOMIC DEVELOPMENT COMMITTEE

REGARDING TAX ABATEMENT FOR LIGHT WAREHOUSE CONDOMINIUM PROPOSED ON A PORTION OF LOT 3, FEDEX FREIGHT SUBDIVISION 

Administrator Webb stated Mr. Coleman has applied for 10 year 50% tax abatement. The Governing Body sent this matter back to the Economic Development Committee to make them aware of Resolution 2006-02 and they met on October 18, 2007. The recommendation from the Economic Development Committee was to deny the abatement because there are not any known tenants to occupy the proposed building; the benefits out weight the cost; and this application does not meet the criteria for tax abatement. Other projects have been done that meets the required criteria.

Administrator Webb stated the City Council has the opportunity to approve and move forward or deny as recommended by the Economic Development Committee.

Mayor Rodgers stated he was present at the meeting held by the Economic Development Committee. Tax Abatement has not been done on speculative businesses. There are new businesses under construction that did not get tax abatement; there is a need for this type of project; it is unfair not allow this project IRB’s because it was not allowed in the past. It is a good project.

Councilmember Danner asked what alternatives does the city have.

Administrator Webb stated when the city issues Industrial Revenue Bonds there are payments in lieu of taxes; the project gets sales tax abatement on the building materials.

Administrator Webb asked Scott Anderson, Bond Counsel, Gilmore & Bell for his comments.

Scott Anderson stated yes that sales tax abatement can be issued for building materials.

Administrator Webb stated there is an origination fee, bond counsel fees, Board of Tax Appeals fees that are all paid by the applicant.

Councilmember Isenhour asked that in the agreement the city allows the land owner to market the property.

Administrator Webb stated it is a resolution of intent and that an ordinance must be adopted.

Councilmember Lane stated the resolution included Lots 2 & 3 in front of FedEx.  

Mr. Anderson stated it was known on Lot 2 what would be developed, it is not known what will be on Lot 3. Section 10 Benefit of Resolution clearly states city must give consent.

Councilmember Adams asked what the intention was. 

Councilmember Isenhour stated Mr. Denham received the IRB’s which allowed him to market the property on Lots 2 and 3 only.

Administrator Webb stated the resolution of intent allows for IRB’s after the project is known; the project must be worthy of tax abatement; typically a cost benefit analysis is completed as was done on Lot 2; estimated what may be developed on Lot 3 and that all applications are reviewed by the Economic Development Committee.

Mayor Rodgers stated tax abatement was allowed on the Mid-Point Corporate Centre project. An ordinance was adopted for Herff-Jones and the same for the others in the same development.  

Mayor Rodgers stated the Coleman project is not that different from Mid-Point.

After further discussion Councilmember Isenhour moved to not accept the recommendation from the Economic Development Committee. Councilmember Adams seconded.  

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.

Administrator Webb asked the Governing Body at what level does the Governing Body wish to issue the IRB’s.

Councilmember Isenhour moved to approve 10 year 50% tax abatement. Councilmember Adams seconded. 

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.

Scott Anderson stated he will start the preparation work for the IRB’s.

CONSIDER RESOLUTION 2007-20 RESCINDING

RESOLUTION 2006-02 REGARDING ISSUING

INDUSTRIAL REVENUE BONDS NOT TO EXCEED

$16,000,000 FOR THE BENEFIT OF INN CANAAN,

INC. OR ITS ASSIGNEES OR SUCCESSORS IN

INTEREST 

After a lengthy discussion Councilmember Adams moved not to rescind Resolution 2006-02. Councilmember Isenhour seconded.

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried. 

CONSIDER AUTHORIZING THE MAYOR TO ENTER

INTO INDEPENDENT CONTRACTOR AGREEMENT

FOR MUNICIPAL JUDGE SERVICES BY

MICHAEL MORONEY

Councilmember Isenhour moved to authorize Mayor Rodgers to move forward with the independent contractor agreement with Michael Moroney. Councilmember Danner seconded. 

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.

ADVISORY REPORTS 

CITY ADMINISTRATOR’S REPORT 

Administrator Webb reported:

There were issues that staff needed clarity on.

The advisor for the employee manual is scheduled for November 7^th & 8th to meet with teams from the fire, police and administration. MOU’s were sent to the advisors.

The Planning & Zoning Commission has been working on the city’s Comprehensive Plan, land use and zoning maps are being updated. Transportation, right-of-ways, water and sewer are items also being addressed.

Flood plain issues have been discussed with Bob Evans of Emergency Management. The Mitigation Plan is being completed by the State of Kansas. Once completed the state will notify Wyandotte County. It is estimated that $60 million dollars will be made available from the federal government. It has also been determined that Betts Creek is a tributary that runs through the city and under K-32 Highway. There are 3 box culverts that run under the railroad tracks; two smaller box culverts cause water to back up that needs to be addressed and one metal culvert.

CITY ATTORNEY’S REPORT 

No report at this time. 

CITY ENGINEER’S REPORT

A report will be given at the next council meeting.

COUNCIL AND MAYOR COMMENTS 

Councilmember Adams stated he had a press release from the Bruce R. Watkins Cultural Heritage Center & Museum announcing the 9^th Biennial Hall of Fame Induction Ceremony to be held November 10, 2007 at 2:00 p.m. At this ceremony they recognize African Americans that have been deceased for five years and who have made a significant contribution to the Greater Kansas City area. This year they are inducting Junius Groves, the Potato King. The ceremony is free and open to the public.

Councilmember Adams stated he read an article in the October 12, 2007 Kansan. He stated how upset he was when the media attacked his constituents. They can say what they want to about him he is an elected official but do not attack the people in this city. 

Councilmember Adams said the Kansan needs to write a public apology.

Mayor Rodgers state the Kansas League of Municipalities will be starting “Regional Suppers” for the northeast region. The next regional supper is scheduled for November 28^th at Olathe. Dinner starts at 6:00 p.m. and the meeting adjourns at 7:30 p.m. Councilmember’s interested in attending should notify Phyllis Freeman, City Clerk so that reservations will be made. 

Mayor Rodgers stated the list of Economic Development Committee members has been made available to the Governing Body along with the official policy of the EDC.

Mayor Rodgers stated there were work session topics covered that had EDC impute to establish a policy. 

Councilmember Adams recommended scheduling a retreat to address those issues and the discussion of long range planning for the city.

Administrator Webb recommended scheduling a Saturday work session after the holidays. 

EXECUTIVE SESSION

Councilmember Adams moved to go into executive session for 30 minutes until 10:00 p.m. for non-elected personnel appointment of police chief and acquisition of real estate relating to 110^th Street project. Councilmember

Danner seconded. 

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried. 

RECONVENE TO REGULAR SESSION

Mayor Rodgers reconvened regular session at 10:05 p.m. 

Mayor Rodgers recommended the appointment of Mark Mathies as Police Chief.

Councilmember Crider moved to approve Mayor Rodgers appointment. Councilmember Danner seconded. 

Mayor Rodgers requested a roll call vote.
Councilmember Crider, yes’
Councilmember Danner, yes
Councilmember Isenhour, yes
Councilmember Lane, yes
Councilmember Adams, yes
The motion was declared carried.

Councilmember Crider stated he is very satisfied with the professional service that has been provided by Chief Jim Moore. The remaining Councilmember’s agreed.

ADJOURNMENT 

Councilmember Isenhour moved to adjourn at 10:08 p.m. Councilmember Crider seconded.

Mayor Rodgers declared motion carried unanimously.

Phyllis Freeman

City Clerk