Commissioner Mike Hoppock recused himself from this item

The Salina City Commission on Monday approved Resolution No. 25-8323, authorizing the creation of a Special Improvement District and a development agreement for Magnolia Hills Estates, Edition No. 3, Phase 1, located south of the Berkeley Family Recreation Area along Markley Road.

City Engineer Jim Kowach presented the item, noting that the action reflects continued residential growth on Salina’s east side. The subdivision has completed two phases, and Phase 3 now begins development near the midpoint between Markley Road and Holmes Road.

Project Cost and Assessment Details

The developer, Magnolia Hills Inc., submitted an estimated construction cost of $860,767.05. Additional costs include:

• Engineering fees, construction interest, and contingency: $173,000
• Bonding costs: $86,000

The total assessed project cost is $1,119,974.15.

Under the development agreement:

• The developer privately contracts and constructs all required public improvements to city standards.
• The City reimburses the developer for eligible costs, consistent with Kansas statutes and Resolution 18-7556.
• Assessments will be levied equally per square foot across the benefit district.
• Property owners may pay in full or over a 20-year special assessment period.

Attachments in the commission packet included the benefit-district map, development agreement, petition, engineering report, and resolution.

Holmes Road Discussion

Commissioners raised questions about how future development triggers improvements to Holmes Road, an east-west corridor that has long been identified for upgrades.

Staff clarified:

• Phase 3, Part 1 does not yet reach the threshold requiring Holmes Road improvements.
• One additional small phase to the south may still be eligible before Holmes Road upgrades become mandatory.
• A prior benefit district for Holmes Road may already include some of the lots involved, but staff will verify boundary details.
• A broader perimeter street policy discussion is expected in spring, with Holmes Road as a central issue.
• Commissioners noted that buyers should be informed if their future properties fall within any Holmes Road benefit district.

Public Comment

Two residents addressed the Commission:

Doug Remp

Raised concerns about how improvement costs are calculated and whether competitive bidding occurs when developers privately secure contractors. He noted that some homebuyers are surprised by special assessments and urged transparency.

Tony Johnson

Questioned whether Salina is experiencing true population growth, expressing concerns about sprawl and the financial burden placed on taxpayers through special assessments. Johnson also criticized perceived inequities in development incentives.

No additional public comments were offered.

Final Action

The Commission voted 4–0 to approve Resolution No. 25-8323 and authorize the City Manager to execute the development agreement with Magnolia Hills Inc.
Commissioner Mike Hoppock recused himself from discussion and voting.