City Commission

Regular Meeting Minutes City Hall Minutes of December 18, 2024 The Governing Body met at 10:00 am on this date for the Regular City Commission Meeting with the following members present and participating to wit: Mayor Allen, Mayor Pro Tem Clayton, Commissioner Caylor, Commissioner Crowley and Commissioner Skidmore. Mayor Allen called the meeting to order. Mayor Allen welcomed the audience and led the Pledge of Allegiance to the American flag. Sam Renfro from His Way Ministries gave the invocation. Consent Agenda Commissioner Crowley moved to approve the consent agenda, seconded by Mayor Pro Tem Clayton. The agenda included the minutes from December 4, 2024 Regular Meeting, December 9, 2024 Special Call Meeting, December 11, 2024 Regular Meeting, the November 2024 Financial Report, Project Updates and the revised Regular Meeting agenda. The motion was put to a vote, and all present voted in favor. The Mayor declared the consent agenda duly approved. Public Comments Public comments were received during the items below. Executive Session Recess Commissioner Caylor made a motion, seconded by Commissioner Crowley, to recess into executive session for a period of 10 minutes, resuming at 10:18 am with City Attorney Blaine Finch, City Manager, Finance Director and Bond Counsel present for the purpose of attorney/client consultation. The justification for the closed session is to engage in confidential and privileged communication with the board’s attorney by K.S.A. 75-4319(b)(12). The motion was considered and upon being put, all present voted aye. The Mayor declared the meeting duly recessed. Reconvene Commissioner Caylor made a motion, seconded by Mayor Pro Tem Clayton, to reconvene into open session. The motion was considered and upon being put, all present voted aye. The Mayor declared the meeting duly reconvened at 10:18 a.m. Consider a Purchase and Sale Contract for 300+ Acres Commonly Known as Proximity Park with Lightfield Energy, LLC. The Governing Body heard from City Attorney Finch who reviewed a purchase and sale contract for 300+ acres commonly known as Proximity Park between the City of Ottawa and Lightfield Energy, LLC. The following items were discussed: • The Purchase and Sale Contract between the City of Ottawa and Lightfield Energy LLC outlines the terms for the sale of approximately 300 acres in Proximity Park for $5.3 million. • The agreement includes a $50,000 earnest money deposit, a 180-day due diligence period, and a 270-day entitlement period for securing approvals such as zoning, permits, and a 10-year tax abatement, which shall not exceed 75%. It is understood that while the agreement permits the purchaser to seek up to a 75% abatement, the City is not obligated to provide or approve the maximum abatement requested. December 18, 2024 1 City of Ottawa Regular Meeting Minutes December 18, 2024 Page 2 • The City commits to providing clear title, environmental compliance, and necessary cooperation. • Lightfield Energy agrees to pursue a Development Agreement and comply with all performance obligations. • Closing will occur within 90 days after the entitlement period, contingent on meeting all conditions. • The agreement includes protections for the City, such as remedies for default, environmental indemnities, and restrictions on assignment to ensure the development aligns with the City’s strategic goals. The Governing Body heard from Billy Sorensen and Andy Talbert representing LightField Energy, LLC who described the project and answered questions from the Governing Body. Commissioner Skidmore made a motion, seconded by Commissioner Caylor, to authorize the Mayor, City Manager, and City Attorney to finalize and execute the purchase and sale contract with Lightfield Energy, LLC. The motion was considered and upon being put, all present voted aye. The Mayor declared this agreement duly approved. Appointments, Proclamations, Recognitions, Nominations and Public Hearings Presentation of Checks from the Mayor’s Christmas Tree Fund to ECKAN and Hope House The Governing Body received a generous donation of $2,000.00 from the Cosentino family as a passthrough donation to assist those in need in Ottawa. The Commission selected two agencies to receive funds from the donation. Crystal Anderson from East Central Kansas Economic Opportunity Corporation (ECKAN) and Michelle Graf from Hope House accepted the donation and thanked the Governing Body for their support. Public Hearing on RHID Development Plan and RHID District for Fairway Vista This public hearing has been called to consider the adoption of an RHID Development Plan and the establishment of an RHID District for the Fairway Vista project. Mayor Allen opened the public hearing at 10:46 am. Tyler Ellsworth, Kutak Rock, provided an update on the development project. The request includes adopting the Reinvestment Housing Incentive District (RHID) Development Plan, establishing the RHID district, and approving the development agreement for Fairway Vista. Mr. Ellsworth discussed the following: • The RHID project is for seven vacant lots to be developed into 14 townhomes with 3 bedrooms and 2 bathrooms each, addressing rental housing needs identified in the 2023 Residential Demand Analysis. • The Secretary of Commerce has approved the establishment of the RHID for this area, where infrastructure has existed for more than 10 years. • The agreement outlines eligible expenses and reimbursement terms, with a cap of $425,000 in ad valorem increment reimbursements or reimburse to end by December 31, 2036, whichever occurs first. • The development agreement stipulates that only eligible project expenses will be reimbursed, December 18, 2024 2 City of Ottawa Regular Meeting Minutes December 18, 2024 Page 3 and tax payments must remain current. The Mayor closed the public hearing at 10:50 am. Ordinance adopting RHID Development Plan and establishing RHID District for Fairway Vista The Governing Body heard from Tyler Ellsworth, Kutak Rock, who reviewed an ordinance seeking approval of the Reinvestment Housing Incentive District (RHID) Development Plan, the establishment of the RHID District, and the Development Agreement for Fairway Vista. Mayor Pro Tem Clayton made a motion, seconded by Commissioner Crowley, to approve this ordinance. The motion was considered, and upon being put, all present voted aye. The Mayor declared this ordinance duly approved, and the ordinance was duly numbered Ordinance No. 4154-24. Declaration No declarations were made. Unfinished Business Ordinance ratifying Ordinance 4145-24 (Premier Auto TIF) The Governing Body heard from Tyler Ellsworth, Kutak Rock, who reviewed an ordinance seeking approval of the amended TIF Project Plan and the Second Amended Restated Development Agreement for the Premier Auto Project Plan in the South Hwy 59 TIF District. Mr. Ellsworth explained that the amendments were necessary to address unforeseen cost overages incurred during Phase I of the project, requiring an increase in the TIF cap by $573,000. He highlighted that the original TIF cap of $2.2 million, set over 15 years through 2037, had been updated based on an amended feasibility study prepared by Ehlers Financial Advisors. This study verified the increase in eligible costs and demonstrated that the revised TIF cap remains feasible within the existing 15-year timeframe. The ordinance also ratified prior approvals made under Ordinance No. 4145-24, ensuring compliance with statutory requirements. Commissioner Caylor made a motion, seconded by Mayor Pro Tem Clayton, to approve this ordinance. The motion was considered, and upon being put, all present voted aye. The Mayor declared this ordinance duly approved, and the ordinance was duly numbered Ordinance No. 4155-24. Ordinance Regulating Camping and Storage of Personal Property in Public Space and Right of Way City Manager Silcott presented an ordinance aimed at regulating camping and the storage of personal property in public spaces and rights-of-way within the City of Ottawa. This ordinance is designed to protect public infrastructure, maintain community aesthetics, and support economic development by ensuring public spaces remain accessible and safe for all residents and visitors. The ordinance prohibits camping in designated public areas such as parks, public infrastructure, and within commercial and industrial zones. Additionally, it restricts the storage of personal property in these areas, allowing city officials to issue 24-hour pre-removal notices. Public comment was received by Albert Harris, 232 S. Main and Brett Stanselow, 218 S. Maple, in opposition to the proposed ordinance and recommended collaborating to work on improvements. December 18, 2024 3 City of Ottawa Regular Meeting Minutes December 18, 2024 Page 4 Commissioner Crowley made a motion, seconded by Commissioner Caylor, to approve this ordinance. The motion was considered, and upon being put, all present voted aye. The Mayor declared this ordinance duly approved, and the ordinance was duly numbered Ordinance No. 4146-24. New Business Review of Monthly Reports for November 2024: The Governing Body reviewed the November 2024 Monthly Reports with community support organizations. Request for Approval of 2025 Funding Agreements The Governing Body reviewed the 2025 funding agreements with Prairie Paws Animal Shelter, Ottawa Main Street Association, Franklin County Development Council, and Elizabeth Layton Center and discussed the following: • Prairie Paws Animal Shelter funding for 2025 is $62,400 • Ottawa Main Street Association funding for 2025 is $42,000 • Elizabeth Layton Center funding for 2025 is $7,097 • Franklin County Development Council funding for 2025 is $67,593 Commissioner Skidmore made a motion, seconded by Commissioner Caylor, to approve the 2025 funding agreements. The motion was considered and upon being put, all present voted aye. The Mayor declared this agreement duly approved. Ordinance Levying a Transient Guest Tax City Manager Brian Silcott presented an ordinance authorizing the levy of a 6% Transient Guest Tax (TGT) in the City of Ottawa. The ordinance is the final step in a process initiated by the City Commission in September 2024, beginning with the adoption of a charter ordinance enabling the City to levy a TGT of up to 9%, as allowed under Kansas Constitution’s Home Rule provisions. Following publication and a 61-day protest period ending December 9, 2024, with no valid petitions submitted, the ordinance was prepared to establish the tax rate at 6%. Mr. Silcott explained that the 6% rate aligns with Franklin County's existing TGT rate, ensuring Ottawa remains competitive within the regional tourism market. The tax will provide a dedicated revenue stream for projects enhancing Ottawa’s appeal to visitors. These include tourism infrastructure, cultural programs, and event hosting capabilities. By adopting this tax, the City will support tourism growth and economic development while adhering to fiscal responsibility principles, ensuring the financial burden falls on those directly benefiting from Ottawa's hospitality services. Mayor Pro Tem Clayton made a motion, seconded by Commissioner Caylor, to approve this ordinance. The motion was considered and upon being put, passed with the following vote: Commissioner Crowley aye, Mayor Pro Tem Clayton aye, Commissioner Skidmore nay, Commission Caylor aye, and Mayor Allen aye. The Mayor declared this item duly approved and the ordinance was duly numbered Ordinance No. 4157-24. City Manager Comments City Manager Silcott provided an overview of the tentative agenda items for the upcoming City Commission meeting and events happening in the community. December 18, 2024 4 City of Ottawa Regular Meeting Minutes December 18, 2024 Page 5 Governing Body Comments Commissioner Caylor highlighted the significance of today's celebration, recalling the groundbreaking in 2017 and the vision exercise that shaped Proximity Park. She noted the park's fulfillment within its first decade and thanked voters who passed the 2015 sales tax to support its build-out, emphasizing that it couldn’t have been achieved without their support or the partnership with the County. Commissioner Crowley expressed pride in the progress made, calling it a great day for the City of Ottawa and a pivotal moment that future generations will see as integral to the community. He acknowledged the contributions of Roc Em LLC and Victory Dodge, whose financial commitments have elevated the community, setting the stage for a bright future. Commissioner Skidmore praised the Proximity Park project for creating regular-paying jobs and gradually building up employment numbers. He also thanked the City Manager, staff, City Attorney, and Derrick Brown for their hard work. Mayor Pro Tem Clayton reflected on the park’s journey, having been involved from the beginning during his time in IT at the County. He appreciated the uniqueness of Ottawa's full-spectrum development and recognized the potential for data centers to benefit surrounding businesses. Mayor Allen concluded by celebrating the exciting progress in Ottawa, noting that the year ended with a bang and looking forward to the future. Announcements A. December 25, 2024 City Commission Meeting – 4:00 pm, Cancelled (City Hall Closed) B. January 1, 2025 City Commission Meeting – 7:00 pm, Cancelled (City Hall Closed) C. January 8, 2025 City Commission Meeting – 4:00 pm, City Hall Adjournment There was no further business before the Governing Body, the Mayor declared the meeting duly adjourned at 12:13 pm. /s/ Melissa Reed Melissa Reed, City Clerk December 18, 2024 5