WU Board of Regents - June 26, 2006 Meeting
Special phone in meeting of the Washburn University Board of Regents, 11:00 a.m., June 26. Regents may call in or attend in person at Morgan Hall 204.
Special Meeting Agenda-Washburn University Board of Regents
SUBJECT: College Hill Redevelopment District
DESCRIPTION: Negotiations have been finalized with the developers of the College Hill Redevelopment Project regarding the sale of the two University owned properties, 1518 SW Washburn Ave. and 1510 SW 17th St., located in the Redevelopment district. The negotiated purchase price for the two properties are the appraised values: $200,000 and $118,000 respectively. Closing on the sale of the Washburn Ave property will occur after the University accepts the renovation work performed to make the premises the University is leasing at 1313 SW 21st suitable for occupancy as space for workshops, offices and storage.
The College Hill Redevelopment project is a tax increment bond financed project. The University has been requested to forego the sales tax revenues collected within the redevelopment district to be used to retire the bonded indebtedness. The University has been asked to adopt a resolution committing a portion of the sales tax revenue collected with in the redevelopment district. Like the resolution adopted by the Board of Commissioners of Shawnee County in support of the project, the University would, if proposed resolution below is adopted, forego that amount of sales tax revenues in the district which exceed those collected in the base year. There would be no diminution of sales tax revenues as a result of this resolution.
The building at 1313 SW 21st which has been leased to provide offices, shops and storage for the technical trade functions of Facilities Services is a shell requiring a build out of approximately 8,000 sq. ft. of interior space and some exterior storage (fencing). Bids were taken for that build out:
- Mohan Construction $214,000
- Bob Florence Construction $225,000
- First Management $214,900
FINANCIAL IMPLICATIONS: The sale of the two parcels excluding closing costs is $318,000. The cost of renovation of new space is $214,000.
RECOMMENDATION: President Farley recommends the approval of the sale of real estate to Washburn Lane Parkway, LLC as stated above and the adoption of the resolution pledging incremental sales tax revenues for the payment of principal and interest on the tax increment bonds issued for the College Hill Redevelopment Project as described above; accept the bid of $214,000 from Mohan Construction.
RESOLUTION
A Resolution pledging a portion of the University's sales tax revenues from the College Hill Redevelopment District for retirement of tax increment bonds issued by the city of Topeka
WHEREAS, Washburn University has been a participant in the redevelopment of the College Hill neighborhood and wishes to continue its support of the College Hill Redevelopment District by pledging a share of its sales tax revenues in the redevelopment district to retire the tax increment bonds issued for redevelopment;
NOW, THEREFORE, be it resolved by the Board of Regents of Washburn University:
- The geographical area of the College Hill Redevelopment District shall be as described in the city of Topeka City Council Resolution 7759 adopted March 22, 2006;
- Washburn University pledges, for use in the repayment of principal and interest on tax increment bonds issued by the city of Topeka, the incremental increase over the base tax year in the University's retailer's sale tax revenue collected from the taxpayers doing business in the College Hill Redevelopment District; and,
- This pledge of sales tax revenues shall remain in effect until the earlier of: a period of twenty (20) years from date of issuance of said tax increment bonds; payment obligations under said tax increment bonds have been fully satisfied; or revocation of this pledge.
- This resolution shall take effect upon its adoption.