Council approves franchise fee, bond sale resolution and other routine items; sets public hearing on mall CID

Council members approved several ordinances and resolutions at the April 15 Hutchinson City Council meeting, including a franchise-fee ordinance with Black Hills Energy, authorization to proceed with the sale of 2025 general obligation bonds, and a funding agreement with the mall owner. Council also set a public hearing for May 6 on a proposed Community Improvement District (CID) for Hutchinson Mall Phase 2.

Why it matters: The actions advance financing and administrative steps for city projects and private development that could affect infrastructure funding and downtown/economic development plans. The council’s approvals give staff authority to proceed with bond issuance, finalize a franchise agreement and accept a developer-funded agreement as the CID process moves toward a public hearing.

What the council approved

- Consent agenda: The council approved the consent agenda by motion and roll call vote (see vote record below). The consent agenda covered routine administrative items listed on the meeting packet.

- Ordinance: Franchise fee for transportation of natural gas by Black Hills Energy — approved. City Attorney Paul Brown summarized the ordinance as an update of prior language with no change to rate or term. Council approved the ordinance by roll-call votes (Richardson, Garza, Fast, Meggers and Mayor Goss recorded as “Yes” on the roll call included in the minutes).

- Resolution: Authorizing sale of general obligation bonds (Series 2025A tax-exempt and Series 2025B taxable) — approved. Finance Director Angela Richard told council the bonds would fund multiple capital projects (Woody Seat Phase 2, city hall safety improvements, 30th Avenue reconstruction, city hall boiler, fire station preemption, LEC elevator repair) and that staff expects to advertise, obtain a Moody’s rating and accept bids with an anticipated sale in late May and closing in late June.

- Resolution: Public hearing on advisability of a Community Improvement District (CID) for Hutchinson Mall Phase 2 — council set a public hearing for May 6 at 5:30 p.m. The resolution authorizes publication of the notice and staff will present a development agreement and more details at the May 6 meeting.

- Contract/funding agreement: Council approved a funding agreement between Rockstep Hutchinson LLC (the mall owner/developer) and the City of Hutchinson that covers payment of the city’s costs for legal and administrative work related to the CID and development agreement. Staff recommended approval and the council voted to authorize the mayor to sign.

Votes at a glance (as recorded in the meeting transcript)

- Consent agenda: Motion to approve the consent agenda and authorize the mayor to sign. Motion moved (unnamed council member), seconded (unnamed council member). Roll call recorded: Richardson — Yes; Garza — Yes; Bass — Yes; Chambers — Yes; Magers — Yes; Goss — Yes. Outcome: Approved.

- Ordinance (Black Hills Energy franchise fee): Motion to approve the ordinance charging a franchise fee for transportation of natural gas by Black Hills Energy and authorize the mayor to sign. Motion moved (unnamed council member), seconded. Roll call recorded: Richardson — Yes; Garza — Yes; Fast — Yes; Meggers — Yes; Goss — Yes. Outcome: Approved.

- Ordinance (KDHE loan agreement amendment No. 1): Motion to approve an ordinance authorizing Loan Agreement Amendment No. 1 between the City of Hutchinson and the Kansas Department of Health and Environment (KDHE) — discussed in detail and then approved by council (see separate article on wastewater funding). Motion moved (unnamed council member), seconded (Richardson). Roll call recorded in the transcript includes Richardson — Yes; Garza — Yes; Bass — Yes; Chambers — Yes; Goss — Yes. Outcome: Approved.

- Resolution (sale of GO bonds Series 2025A/2025B): Motion to approve resolution authorizing the sale of $5,270,000 general obligation bonds, Series 2025A, and $1,065,000 general obligation bonds taxable Series 2025B and authorize the mayor to sign. Motion moved (unnamed council member), seconded. Roll call recorded: Richardson — Yes; Garza — Yes; Fast — Yes; Meggers — Yes; Magers — Yes; Goss — Yes. Outcome: Approved.

- Resolution (CID public hearing for Hutchinson Mall Phase 2): Motion to approve a resolution setting a public hearing on advisability of a CID for Hutchinson Mall Phase 2 on May 6, and authorize the mayor to sign. Motion moved (unnamed council member), seconded. Roll call recorded: Richardson — Yes; Garza — Yes; Fast — Yes; Magers — Yes; Goss — Yes. Outcome: Approved; hearing set for May 6, 2025 at 5:30 p.m.

- Funding agreement (Rockstep Hutchinson LLC): Motion to approve a funding agreement between Rockstep Hutchinson LLC and the City of Hutchinson and authorize the mayor to sign. Motion moved (unnamed council member), seconded. Roll call recorded: Richardson — Yes; Garza — Yes; Fast — Yes; Meggers — Yes; Goss — Yes. Outcome: Approved.

What comes next: Staff will proceed with the bond sale steps (rating, advertise bids, accept bids at the May 20 council meeting and close late June) and will prepare the CID development agreement and related documentation for the May 6 public hearing. The city will also execute the funding agreement with the mall owner to reimburse the city’s documented costs as described by staff at the meeting.

Ending note: Several items heard at the meeting were informational (spring cleanup, murals and signage discussion); those topics and additional substantive discussions appear in separate articles from this meeting’s minutes.