EXHIBIT A
CITY OF OLATHE
TRANSPORTATION DEVELOPMENT DISTRICT
PETITION PROCEDURE
TDD Petition Procedures
1. PETITION:
Submission. The Transportation Development District Petition form, policies, and procedures are available from the City’s Strategic Financial Management Department or City Clerk’s office. Not less than two (2) paper copies and one (1) electronic copy of the completed Petition should be submitted to the TDD Committee together with the required Petition fee. The completed Petition shall be submitted to the City Clerk of the City of Olathe with copies to the Director of Resource Management, City of Olathe, 100 E. Santa Fe, P. O. Box 768, Olathe, Kansas 66061.
Petition Fee. Each Petition shall be accompanied with a non-refundable Petition fee made payable to the City of Olathe. The Petition fee will be used by the City to pay the costs incurred by the City in the review of the Petition. The City has established a Petition fee and has established a policy for reimbursement of additional costs as outlined in Section 5 of the TDD Policy. In the event that costs for third-party services incurred by the City exceed the fee collected, the Petitioner will reimburse the City for such additional cost prior to final consideration of the Petition by the City Council. The Petitioner shall be required to pay all additional costs such as those set forth in section 5 of the TDD Policy.
Preliminary Determination of Completeness. Upon submission, the Petition will be reviewed by the TDD Committee to determine if it is complete under the Staff Review guidelines described below. If the Petition is incomplete or if additional information is needed, the Petitioner will be notified in writing that the Petition is not complete and the reasons will be stated referring to the specific criteria that are not met, including, but not limited to, additional information required and/or financial, legal, planning, and development concerns.
Requests for Proposals. The City may initiate a Request for Proposals for a redevelopment project. The fees shown above are for both City-initiated and non-City initiated redevelopment projects. The City reserves the right to modify, reduce, or waive the above fees if a TDD project is determined to be in the best interest of the City. Upon the filing of a complete Petition that is non-City initiated, the City reserves the right to cause a public notice to be inserted in a newspaper of general circulation in the City or on the City’s website requesting proposals for development in the proposed Transportation District.
2. STAFF REVIEW:
Review of the Petition will be conducted by the City’s TDD Committee (which includes, but is not limited to, members of the City Manager’s Office, Legal, Resource Management, and Public Works departments), and if necessary by other City staff, the City’s Financial Advisor, Bond Counsel, and any other outside consultant deemed necessary for review of the Petition. Initial review time will be approximately 30 days from the date the completed Petition is submitted to the City. However, more or less time may be required for particular Petitions. Upon receipt of a complete Petition and after review by the City’s TDD Committee, the TDD Committee shall forward a recommendation to the City Council for consideration. The recommendation of the City’s TDD Committee may be approved, denied, or amended by the City Council. Petitioners will be notified of the City’s TDD Committee forwarding the Petition to the City Council for consideration at a Council study session and a regular Council meeting.
Petitions that are determined to be incomplete or do not conform to the City’s TDD policy will not be forwarded to the City Council. Petitioners will be notified of the determination that the Petition will not be forwarded and should be modified before being considered in the future.
The following is a list of additional information which may be requested by the City’s TDD Committee. The TDD Committee may request any or all of this information prior to consideration of a Petition for creation of a TDD by the Governing Body in connection with the TDD Committee’s evaluation of the Petition and determination of whether the Petition is complete and conforms to the City’s TDD Policy:
A. Describe the proposed Economic Development Project and associated Transportation Project, including the size and scope, phasing and anticipated timing of the Economic Development Project and associated Transportation Project. Specifically outline residential development, if any, to be included in the Economic Development Project.
B. State the need and justification for TDD assistance and the type and amount of assistance being requested by providing the following information:
1. An Economic Development Project proforma containing assumptions for TDD assistance, including a revenue worksheet which estimates the sales taxes and/or special assessment revenues to be generated within the Transportation District, as well as internal rate of return with and without public assistance.
2. An explanation of how but for TDD assistance, this Economic Development Project will be unable to proceed due to extraordinary economic conditions.
3. Substantiation that alternative methods of financing have been thoroughly explored as well as why TDD assistance is necessary.
C. Provide an outline of the costs associated with the development of the proposed Economic Development Project and related parcel or parcels located within the Transportation District under the criteria described in Section 3 (Developer Contribution & Cost Allocation) of the City’s TDD Policy. Identify in the outline those costs proposed to be funded with TDD financing and the proposed payback time frame (provide a debt service schedule showing rates and assumptions). The information shall include interest rates and all assumptions.
D. Discuss the condition(s) that would qualify the proposed Transportation District as an eligible area as defined within the City of Olathe TDD Policy.
E. Discuss and document information used to describe the market feasibility of the Economic Development Project. Provide copies of any formal feasibility or comparable studies.
F. Provide a traffic study detailing any projected traffic impact increase on the City that is based upon the Economic Development Project.
G. Describe the impacts of the proposed Economic Development Project on existing and proposed infrastructure and services including, but not limited to: water, sanitary sewer, storm water, solid waste, and streets where not otherwise described. Please note that where available, City services shall be utilized.
H. Identify the property within the Transportation District that is currently in the control of the Petitioner via ownership or option, and who will own the property if not the Petitioner. If under option, note the option expiration date.
I. Attach a letter from a financial institution indicating that the Petitioner has sufficient financial resources to obtain the private financing for the Economic Development Project.
J. State whether the property to be included in the Transportation District is currently zoned for the proposed use. If not, describe what zoning change(s) will be required.
K. Describe whether the proposed Economic Development Project or Transportation Project will result in the relocation of residential, commercial, industrial or public facilities. If so, discuss the nature of any anticipated relocations.
L. Identify any proposed tenants of the Economic Development Project. Have leases been negotiated or signed? What type of lease is contemplated?
M. Briefly describe the “economic and quality of life” benefits of the proposed Economic Development Project to the City.
N. In no more than three pages provide relevant information on the Petitioner’s background and development experience. Include resumes of key individuals assigned to the project as well as other projects completed including location and contact persons from local governments and bank references. Also include a copy of the development company’s organizational structure.
O. Identify the Petitioner’s consultants involved or proposed to be involved in the project noting relevant experience on similar projects (i.e., civil engineer, land use planner, Petitioner’s legal counsel, Petitioner’s financial advisor).
3. DEVELOPMENT CONSIDERATION:
The City Council may desire to hold one or more study sessions before any public hearing is held. During this period the Petitioner may be required to submit additional information as requested and/or appear before the City Council to present information regarding the Petition. The City Council will make all findings and determinations required by the TDD Statute (K.S.A. 12-17,140, et. seq.).
The City Council conducts hearings and other requirements as prescribed by state law. The proposed developer prepares a Petition pursuant to Kansas law and City requirements. The cost of all studies shall be paid by the Petitioner and should be prepared by a professional consultant having a favorable reputation for the preparation of such studies. The studies shall be submitted to the City in a timely manner for review by staff prior to any City Council meetings or study sessions. Additionally, consideration of the Petition shall adhere to the requirements of the TDD Policy and may require additional studies as necessary. The City’s TDD Committee reviews the Petition and submits it to the City Council with comments. The City’s TDD Committee makes no assurances, promises or guarantees as to the determinations of the City Council after a Petition is forwarded to the City Council for consideration.
The City Council reviews and discusses the Petition during Council study sessions. At a regular Council meeting, the City Council considers an Ordinance making necessary findings and creating the Transportation District setting forth the boundaries thereof, authorizing the proposed Transportation Projects, approving the maximum costs thereof, levying the Transportation District sales tax, imposing any special assessments, and approving the method of financing the same. Authorization of the issuance of bonds or reimbursement of eligible costs may also be considered at this time.
After approval of all elements required to be submitted in the Petition and creation of the Transportation District, but prior to reimbursement of eligible Transportation Project improvements and/or issuance of TDD Sales Tax Revenue Bonds or TDD Special Assessment Revenue Bonds, the City and Petitioner shall prepare a Development or Redevelopment Agreement. Additional requirements and costs, as needed, may be included in the Redevelopment Agreement.
4. NOTIFICATION / PUBLICATION RESPONSIBILITIES:
Legal notices and mailings to taxing districts and property owners shall be prepared or caused to be prepared, delivered, and mailed by the City pursuant to state law. Copies of certifications of mailing, signed delivery certifications, or other proofs of notifications shall be forwarded to the City Clerk. The City shall also prepare or cause to be prepared any Notices of Public Hearings to be published and forward to the City Clerk for publication in a timely manner as required by state law. The Petitioner is responsible for all costs associated with publications, mailings, certifications, delivery, and preparation of notices. The City shall be reimbursed for any expenses associated with Petition and the TDD formation process.
5. OTHER COSTS OR EXPENSES:
Petitioner shall reimburse the City for all reasonable documented, out-of-pocket expenses incurred in connection with the TDD including attorney’s fees, financial advisor fees, and any consultant fees. Said reimbursements to the City shall be deemed “reimbursable expenditures” which may be included in the costs of issuance when TDD bonds are issued.