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Topeka Development Corporation approves $291,086 to cover Hotel Topeka operating shortfall
Summary
The Topeka Development Corporation board on June 2 approved a $291,086 supplemental funding request to cover an operating shortfall at Hotel Topeka, contingent on the governing body approving a transfer of funds to the corporation; the board met in executive session under KSA 75-4319(b)(4) before the vote.
The Topeka Development Corporation board of directors on June 2 approved an additional funding request of $291,086 to cover operations and maintenance at Hotel Topeka, contingent on the governing body approving a transfer of funds to the corporation.
The funding request was presented after the board recessed into and returned from executive session. Kapila, a city staff member who presented the item, said, “we are sitting on a fund balance in our operating account of the hotel of 46,000. Contractually, we are obligated to maintain a balance of a hundred and 50,000 … we are facing a shortfall of $291,000.” Kapila asked the board to pass the resolution that would allow the city manager to authorize funding as needed for hotel operations under the city’s cash-basis rules.
The board met in executive session earlier in the meeting under the Kansas statute cited during the session, KSA 75-4319(b)(4), to discuss data related to financial affairs or trade secrets; the board said no action was taken during executive session and returned to open session to consider the funding item. The city attorney read the executive-session motion and the statute before the recess.
Councilman Duncan pressed for a more automatic process tied to the existing contract, saying, “I don’t know why we have to come vote for this every single time when we already have a contractual obligation that the city paid this base amount.” The city attorney and staff said the same resolution would also be on the City Council agenda the next day to address the contractual funding mechanism.
On a roll-call vote, six directors voted yes and three voted no. Directors voting no were Valdivia Acala, Ortiz and Banks. The board recorded the tally as six yes, three no, and the motion carried. The funding approval is explicitly contingent on the governing body (City Council) approving the transfer of funds to the Topeka Development Corporation; the transfer had not been completed at the time of the vote.
The action keeps Hotel Topeka funded for immediate operations pending the council-level transfer. The board did not adopt any additional policy changes during the open meeting; staff said the council resolution the following day would implement the authority described in the packet.
