Manhattan commissioners approve resolution allowing Meadowlark Hills to pursue roughly $50 million in industrial revenue bonds

The Manhattan City Commission on March 4 voted 3-0 to adopt a resolution expressing support for a future issuance of industrial revenue bonds (IRBs) to finance a new independent-living building and related campus improvements at Meadowlark Hills.

The resolution, described by staff as an "intent to issue" measure, also authorizes the release of a Meadowlark-owned Riley County facility previously financed with IRBs and directs the mayor and city clerk to execute documents needed for that release. Mayor McCullough and Commissioners Opelt and Mota voted in favor; one commissioner recused. Bond counsel and city staff said the full bond issuance and an accompanying request for a sales-tax exemption would come back to the commission for later approval.

The measure matters because IRBs can allow nonprofits and other applicants to receive sales-tax exemptions on construction materials and, in some cases, property-tax abatements. Jason (city staff) told the commission the city acts as a conduit for IRBs and that the bonds are not debt of the city. Chris Nelson, chief financial officer for Meadowlark Hills, told the commission the new building would provide 43 independent-living units (most about 1,400 square feet, some starting at about 1,200 square feet), under-building parking, a clubhouse and community space and a wellness center that would house fitness classes, Parkinson’s and memory-program space and a certified "rock steady boxing" program.

"The new project that we wanna issue the new debt for, will be independent living units along with a wellness, portion of the building," Chris Nelson said during the presentation.

Public commenters pressed the commission on the fiscal tradeoffs of IRBs. Resident Joe Knop of 104 Oakwood Circle noted the potential sales-tax savings on construction and asked the commission to seek a payment back to the community. "10% of that is $2,700,000 savings," Knop said, illustrating his calculation of one component of the benefit. Gary Oles, another resident, urged the commission to consider a payment-in-lieu-of-taxes (PILOT) arrangement under the state IRB statute so Meadowlark would contribute toward local services it uses. City staff explained that any negotiated PILOT tied to property taxes would be routed through the county and distributed under the existing mill levy, meaning the city receives a portion (staff estimated around 12% of property-tax dollars) while schools and county entities receive the remainder.

Commission discussion also addressed quorum and voting thresholds. A commissioner asked whether a 2-1 vote would legally carry; city staff and bond counsel said they would confirm the applicable statute. The commission proceeded under the city’s rule that resolutions and other non-ordinance actions may be adopted by a majority of those present.

The resolution on the agenda identifies two distinct elements: (1) retaining tax-exempt status for two properties from a prior 2021 IRB action while releasing a third property, and (2) authorizing the process to issue roughly $50,000,000 in IRBs to finance the new 43-unit improvement on the Meadowlark campus. Staff said a request for a sales-tax exemption on construction materials would be filed separately when the bond issuance is taken up.

The commission approved the motion to adopt "Resolution No. 030425 determining the advisability of issuing industrial revenue bonds for a new Meadowlark Hills independent living facility and authorizing the release of the Riley County facility previously financed by industrial revenue bonds"; roll-call votes were recorded as Mayor McCullough — yes; Commissioner Opelt — yes; Commissioner Mota — yes. The motion carried 3-0 with one commissioner recused.

Next steps identified in the meeting: Meadowlark will return with a formal sales-tax-exemption request and the city will process the supplemental documents to release the identified Riley County property from the earlier IRB arrangement. The commission did not adopt final bond documents at this meeting; the resolution expresses intent and initiates the required public-hearing and documentation steps for a future issuance.

Details recorded at the hearing: the project description presented by Meadowlark; public comments urging negotiation of a PILOT payment; staff advisories on the allocation of any PILOT receipts through county mill-levy distribution; and city staff confirmation that IRBs are a conduit financing tool and not a direct city obligation.