EXHIBIT A
CITY OF OLATHE
COMMUNITY IMPROVEMENT DISTRICT
PETITION PROCEDURE
CID Petition Procedures
1. PETITION:
Submission. The Community Improvement District Petition form, policies, and procedures are available from the City’s Resource 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 Economic Development 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 6 of the CID 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 6 of the CID Policy.
Preliminary Determination of Completeness. Upon submission, the Petition will be reviewed by the Economic Development 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 such consideration for a CID 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 Improvement District.
2. STAFF REVIEW:
Review of the Petition will be conducted by the City’s Economic Development 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 thirty (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 Economic Development Committee, the Economic Development Committee shall forward a recommendation to the City Council for consideration. The recommendation of the City’s Economic Development Committee is advisory and may be approved, denied, or amended by the City Council. Petitioners will be notified of the City’s Economic Development 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 CID 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 Economic Development Committee. The Economic Development Committee may request any or all of this information prior to consideration of a Petition for creation of a CID by the Governing Body in connection with the Economic Development Committee’s evaluation of the Petition and determination of whether the Petition is complete and conforms to the City’s CID Policy:
A. Describe the proposed Improvement Project, including the size and scope, phasing and anticipated timing of the Improvement Project. Specifically outline City facilities and residential development, if any, to be included in the Improvement Project.
B. State the need and justification for CID assistance and the type and amount of assistance being requested by providing the following information:
1. A project proforma containing assumptions for CID assistance, including a revenue worksheet which estimates the sales taxes and/or special assessment revenues to be generated within the Improvement District, as well as internal rate of return, both with and without public assistance.
2. An explanation of how but for CID assistance, this Improvement 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 CID assistance is necessary.
C. Provide an outline of the costs associated with the development of the proposed Improvement Project and related parcel or parcels located within the Improvement District under the criteria described in Section 4 (Developer Contribution & Cost Allocation) of the City’s CID Policy. Identify in the outline those costs proposed to be funded with CID 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 Improvement District as an eligible area as defined within the City of Olathe CID Policy.
E. Discuss and document information used to describe the market feasibility of the Improvement 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 Improvement Project.
G. Describe the impacts of the proposed Improvement 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 Improvement District that is currently in the control of the Petitioner(s) via ownership or option, and who will own the property if not the Petitioner(s). If under option, note the option expiration date.
I. Attach a letter from a financial institution indicating that the Petitioner(s) has sufficient financial resources to obtain the private financing for the Improvement Project.
J. State whether the property to be included in the Improvement District is currently zoned for the proposed use. If not, describe what zoning change(s) will be required.
K. Describe whether the proposed Improvement 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 commercial and or governmental tenants of the Improvement 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 Improvement Project to the City.
N. Provide any and all relevant information on the Petitioner’s background and development experience as it relates to the proposed Improvement Project. Include resumes of and contact information for 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 and provide contact information for 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 CID Act.
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 CID Policy and may require additional studies as necessary. The City’s Economic Development Committee reviews the Petition and submits it to the City Council with comments. The City’s Economic Development 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 Improvement District setting forth the boundaries thereof, authorizing the proposed Improvement Projects, approving the estimated costs thereof, levying the Community Improvement 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 Improvement District, but prior to reimbursement of eligible improvements and/or issuance of CID Sales Tax Revenue Bonds or CID 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 CID 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 CID 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 CID bonds are issued.