Wednesday, February 17, 2010

City moves ahead on redevelopment district

A public hearing has been set for 7 p.m. on April 6 to establish an economic redevelopment district north of town. The property is off Skyline Road.
The plan could result in a Tax Increment Finance District, but after the city commission meeting Tuesday, City Manager Steve Archer said there are many different types of financial packages that could be used. The establishment of a redevelopment district does not automatically mean it will be a TIF.
After the public hearing the city may adopt a measure creating the district. At that time the county, USD School district 470 or Cowley College, can file papers saying such a district might harm them financially, and thus block its creation.
Later, if a company wants a TIF district, the city would have to accept it and the other entities in the area would again have an opportunity to block it.
City commissioners say the district is needed to develop the local economy.
Commissioner Jean Snell said the city should approach the other governing bodies and discuss the district, so that it will not be blocked.
Mayor Jay Warren said “it is important to be proactive now,”
He noted that jobs are needed, and a district like this could help.
“We need to get people back into this area,” he said.

Read the rest of the commission story here:

22 comments:

  1. I have my doubts that the other governing bodies are going to ok this. I think if it was written for instustry and not retail then they would be all for it. What the economy needs is more places for people to make money and not more places for people to spend it. If this is a good place to open a retail business, then they will come here anyway. What business does not want to make money. Speaking of that I hope this does not bring up the old ACI is a non-profit story again. I think we all have read enough about that. Propaganda with at least 2 front page stories in the Traveler spreading the lie was enough. If you are non profit Mr. Patton, then just have a copy of your paperwork in the paper to say so. If not, stop stretching the truth. Profit is Profit.

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  2. Why do people dislike ACI so much?
    They are a "non profit" organization. This does not mean they cannot make a profit.
    The money they make goes back into trying to develop more properties.
    Im just curious as to why there is such distrust and anger towards them??

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  3. I guess I feel the way I do because of the whole "non profit" issue being shoved down our throats. James, they are not non profit. If they would they would have tax breaks and papers to prove it. Just because you are not drawing funds from an account at a specific time, does not make you non profit. I may not draw money out of my personal business account for several months at a time. Does that make me non profit? They are accumulating assets. The banker on their board can verify that. I have no problem with people trying to better the town. I am not the type that wants to keep this town small. I would love growth, but I want it done the right way. I do not want bad growth hidden behind a facade of a non profit martyr campaign like they tried to do before. They want to tell people that they are a "group of investors using their investment to build profit to expand Arkansas City they way they think it should be without CURRENTLY paying out any royalties to their members. I am for that. Well that is unless I find out they have meetings or Christmas Parties and such and use the profit to pay for them.

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  4. Well tell me what ACI has done lately that hasn't been on the coat tails of the City!
    Or
    With the prospect of using the City's (taxpayer) money! (Even the suggestion of the OMB and the use of the surplus from the Hospital building
    fund with a rental agreement from the hospital!)
    Gee, its a for profit Hospital and new - why would you want to leverage it with that type development/contract from the start?
    If you go back to the old blog - there were even notes from a Commission meeting where ACI wanted to use the City for Bonds (better ratings) to build their current warehouses! However, I think it was a smart move to capatilize on the needed storage required by Rubbermaid! But, they weren't in the City!
    So, as an economic development arm of the City it appears they simply want to use the City to their advantage!
    Why wouldn't you want to use the taxpayers dollars to reduce your risk and improve your investment?

    If they increase the share price of their stock they are they still a non profit?
    Or
    They just don't have to pay taxes until its sold as shares or liquidated!

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  5. Btw: Before you think I am 100% negative on ACI!
    I am not - they have had a number of businesses on their complex!

    Nothern Contours, Rubbermaid, The Stother Field evelator company expansion (which was short in duration), the Company who did the in house supply for Future Beef, The fiutre beef daycare center, The meter company, the soap company the toy company and maybe some I don't even know!
    They have tried to bring business to the area!

    So, Here's one thing you need to resolve - why are businesses choosing to locate in the County?

    If there is a legitimate course for development of the Goff Industrial Complex or even elsewhere it should benefit the City! If the City is involved! Not just through water/sewer sales but through jobs/growth!

    So, your gonna have to weigh that investment if made by the City against any possible return!
    AND
    Who retains control of the property!

    In other words the City should own and develope the property!

    But, you can bet that won't happen at a fair market price based on current County Valuations!

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  6. The city cannot own and develop property according to state statute. That is why they had to form a public building commission to build the hospital.
    That is why they have to use ACI.
    Also, remember, ACI was not choosing to be in the county, they asked to be annexed into the city.

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  7. through jobs/growth!

    should have been through jobs/growth and taxes!

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  8. JJ,

    Don't tell Winfield they just bought private property and added onto their Industrial Park for the Rubbemaid Leased Warehouse/Schwans and now BTR Robotics.

    They bought the land and developed it!

    They don't own the businesses or their property!

    But, that prime development ground which is in Wheat that has been annexed in to AC. Still belongs to ACI!
    They just want the taxpayer to improve it!

    And

    Unless I'm uniformed the City can't own the Hospital for Liability reasons!

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  9. Here's the point on the Hospital! The half cent sales tax was issued to help insure the Hospitals success!
    I don't recall hearing anywhere that is was to be tied or possibly leveraged to any other/additonal development!
    Maybe the surplus of the building fund should be left alone! (maybe even given back to the City?) Never happen what was I thinking!

    and of course:

    You can straighten me out if I'm off track!

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  10. On the hospital. Does look like its coming in under budget. If there is some money left over it will likely be used for the medical office building.
    That isn't really a "other or additional" development. Originally they were combined, but were separated at some point.
    Money wont be returned, but it could be that the bonds could be paid off earlier or that the sales tax could actually end earlier.

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  11. The statement I read was that the Hospital was redesigned to be smaller with that space to be included in the Medical Office Building and leased by the Hospital!

    Again some clarification please?

    I am going to make you work ;)

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  12. So JJ,

    How much did the the redesign contribute to the building fund surplus?
    I do believe that they have gotten better and more competitive bids as the result of the economy.
    How much rent will they have to pay for the space in the MOB? (If that is the plan?)
    Who is developing the MOB?
    If Mr. Kuhn proposed the half cent sales tax as a means of insuring the Hospital could make it payments? How might the current change effect their ability to make that payment!

    When Mr. Snell says WE are going straight into the development of the MOB! How many hats does
    he wear?

    Not saying I disagree but just asking?

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  13. How much did the redesign contribute to building fund surplus?

    It really didnt. after the redesign, you start over with new estimates.
    You are right, the better bids are a result of the bad economy.
    >>>
    How much rent for space in the MOB?
    Dont know on that one. I think its all going to be in the same pot? Im not sure the hospital will be renting space in the MOB. but if they do, they will be paying themselves.
    >>
    Who develops the MOB.?
    I think the public building commission, which is who is developing the hospital. At one time they were one in the same. They were separated to make it more affordable. Not sure that changes who does what.
    >>
    If Mr. Kuhn proposed ....
    He didnt propose it The hospital proposed te half cent sales tax as a means to make sure they could make ends meet. It was Kuhn that proposed separating the two. that saved some money, but at that point they started over, so that didnt impact the savings on the bids.
    >>>
    When Snell says We are going straight into development of the MOB ...
    I think he was using the editorial "We" and i think he said .. we WOULD LIKE TO go straight into the MOB.
    He is the city's member of the hospital board.
    He doesnt have control over it.

    Thats my take on it.

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  14. It really didnt. after the redesign, you start over with new estimates.

    But wern't the bonds already sold!
    Did they adjust them by that amount when they did the redsign?

    How much rent for space in the MOB?

    Won't the MOB be financed separately and developed by ACI/Building Commision? Well at least the amount over and above the Surplus of the building fund?
    Then rented to the doctors and the hospital?

    Is all the financing required on the complex to be accomplished through the original Bonds issued?

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  15. after the redesign, you start over with new estimates.
    But wern't the bonds already sold!
    >>>
    no
    bonds were sold later.
    the redesign was basically just taking out the MOB.
    >>

    How much rent for space in the MOB?

    >>
    dont think thats been determined yet?
    >>>

    >>>
    Won't the MOB be financed separately and developed by ACI/Building Commision? Well at least the amount over and above the Surplus of the building fund?
    >>
    Yea, but ACI is different than the building commission..
    >>


    Then rented to the doctors and the hospital?
    >>
    yes
    >>


    Is all the financing required on the complex to be accomplished through the original Bonds issued?

    >
    no. i could be wrong, but i think the bonds finally sold did not include the MOB part. and theres not telling what future development might be..
    the original bonds only financed what is being built now, at least hthats my understanding

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  16. Wonder what Buckskin Joe would think about all of this drama?

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  17. Old Buckskin might want to know how space that was included and financed in the original and modest building plan got moved to another development! One developed and financed by another party and then has to pay rent for that same space? (If thats the plan?)
    But he's dead so somebody thats alive will have to ask!

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  18. Buckskin would have figured out how to make a good profit off this deal already, and would have the townspeople thanking him for having done so.
    :)

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  19. Buckskin would have figured out how to make a good profit off this deal already,

    Well lets hope that making a profit on a private building development and making the Hospital profitable are the same plan!

    I am not saying it isn't!

    But before they run with the ball too far!

    What are the dynamics in the area that have significantly changed regarding population, age/income and even insurance that can support a "Field of Dreams"?

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  20. The dymanics are that we have a declining population, and fewer jobs.
    Something has to be done to reverse the pattern.

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  21. Here's the thing that gets me. It is now being openly talked about that ACI is actively involved in the deal to build the MOB.

    Why doesn't anyone have a problem with that?

    It isn't even a conspiracy any more. I swear. They control friggin everything. They have all of their henchmen or idealogical friendlies on the Hospital board. They control the comission. On and on. Now, they get rent forever for this MOB they are going to build. Is this all a sick game?

    Has anyone seen the new redisign? It is the dam ugliest thing I've ever seen. They will call this a "new" hosptial but when people driving by siee it they will have know idea it is new because it looks like it was built in the 70's. I wouldn't go there out of principle because it looks like a turd clinic out in western ks in the middle of nowhere. the 5x revised original plans they woere looking at based off of in oklahoma was way better looking. anyone who thinks this is goign to be like newton is crazy. too bad we don't have enough poeple with cahones to complain about it and force them to come up with something attractive. even new schools are better looking and more functional.

    kuhn wanted them separated to save money because you don't have to pay as much per sqft on the mob part as you do the medical space but he put together along with dottie a plan for one building with one roof and a firewall in between. it would ahve gotten it all done at once and under budget. then the hosp board yayhoos would dn't know jack about running a hospital mucked it up and made it so expensive they it could no longer be afforded and that plan got scrapped and i would have to guess it was due to a combination of they ddin't want to do anything that kuhn and dottie suggested AND they wanted to make sure aci got a piece of the pie and the only way to do that was to take the kuhn/dottie plan and ruin it by making it too big and force the mob to be built separately and later.

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  22. The hospital board has no power...the power is in the city commission. Anything done by the hospital board has to be approved by the city. The board can make suggestions but they only operate as figureheads. Attacking them and saying they are ideologically tied with ACI is not the case...look at the city commission and you will see (for better or worse) who is with the ACI. There are many on the board not in with ACI but their ideas are not approved by the City Commission...in fact, they are ignored. The City blames lots on the board but the reality is that they can override anything they want to change...that was all set up with the last commission and this one has done nothing to upset the law.

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