In a recent City Commission, officials deliberated on authorizing the Mayor to execute a Transferee Agreement involving 125 North Santa Fe, LLC and Salina2020, Inc.
The City of Salina, in collaboration with Master Developers Salina2020, has embarked on a multifaceted funding initiative to revitalize downtown Salina. This initiative employs a diverse range of financing tools for agreed-upon projects and incentive structures. The terms of this initiative are outlined in a formal Development Agreement and Supplemental Agreement between the City and Salina2020.
Following the stipulations in these agreements and in their capacity as Master Developers, Salina2020, as outlined in their supporting letter, has worked closely with the developers of Flippin' Fabulous at 125 North Santa Fe, 125 ½ North Santa Fe, and 127 North Santa Fe. They recommend the allocation of Existing Retail Improvements CID funding, amounting to $178,121, with an additional 5% annual interest. This payment is proposed to be disbursed over a 19-year term, in contrast to the estimated total project cost of $476,598.
The Downtown Redevelopment Agreement(s) Summary document provides a detailed account of the funding structure established by the Development Agreement and Supplemental Agreement. These agreements delineate various funds with dedicated sources and designated uses. Payment to approved projects is contingent upon the availability of funds, following a pay-as-you-go approach. In the event that funds are insufficient for all projects in a given year, a project priority system is in place for fund allocation.
The pay-as-you-go provisions ensure that funding responsibility is confined to the available and segregated Tax Increment Financing (TIF) or Community Improvement District (CID) funds without imposing additional fiscal obligations on the City of Salina.
As previously communicated, Flippin' Fabulous has formally requested $178,121 in Existing Retail Improvements CID funding, recommended by Salina2020. The proposed disbursement involves annual installments of $9,375, accompanied by interest.
Up to the current date, no allocations have been made from the Existing Retail Improvements CID fund. The existing fund balance for this category stands at approximately $220,000.
The motion garnered unanimous approval with a 5-0 vote.