At Monday's City Commission Meeting, commissioners deliberated on granting authorization to the Mayor for the execution of a Transferee Agreement with The Hive Salon and Spa, LLC, in collaboration with Salina2020, Inc.
The City of Salina, in partnership with the master developers Salina2020, has embarked on an intricate funding arrangement to revitalize downtown Salina. This initiative employs a diverse range of financing tools for agreed-upon projects and incentive structures, as outlined in the formalized Development Agreement and Supplemental Agreement between the involved parties.
Under the terms of these agreements, and in their capacity as the Master Developer, Salina2020 has actively coordinated with The Hive Salon and Spa at 119 South Santa Fe. Their collaborative efforts have resulted in a recommendation for the approval of New Business Tax Increment Financing (TIF) funding totaling $157,253, accompanied by an annual interest rate of 5%. This financial support is proposed to be disbursed over a 16-year term, in alignment with the estimated total project cost of $559,217.47.
The Development Agreement, Supplemental Agreement, and individual Transferee Agreements establish distinct funds with dedicated sources and predefined uses. Payments to approved projects are contingent upon a pay-as-you-go basis, ensuring disbursement only when sufficient funds are available. A project priority system has also been instituted to allocate funds among projects in case of insufficient available funds in any given year.
The pay-as-you-go provisions safeguard that funding responsibility remains confined to the accessible and segregated TIF or CID funds, without imposing any additional fiscal burden on the City of Salina.
As part of the ongoing allocation of New Business TIF funds, the City Commission has already authorized disbursements to several projects:
- Barolo Grille: $125,000
- Grass Roots Development: $296,750
- The Yard: $250,000
With these allocations, the total approved funds amount to $671,750, leaving the current New Business TIF Fund balance at approximately $1,675,000.
The motion for funding The Hive Salon and Spa was unanimously passed with a 5-0 vote as proposed, marking a significant step forward in the downtown redevelopment initiatives.
