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Commission approves Magnolia Hills Special Improvement District to fund Phase 1 improvements
Summary
The commission authorized a resolution and development agreement creating a special improvement district for Magnolia Hills Addition No. 3 Phase 1 to assess roughly $1.12 million in infrastructure costs to the benefit district, with property owners able to pay via lump sum or a 20-year assessment.
The Salina City Commission on Dec. 8 approved a resolution establishing a special improvement district (SID) to fund public improvements for Magnolia Hills Addition No. 3 Phase 1.
City engineer Jim Coarch told commissioners the developer estimate for construction was $860,767, with additional engineering, interest, contingency and bonding costs bringing the total assessed cost to approximately $1,119,974. Property owners in the benefit district may pay their share as a lump sum or elect a special assessment spread over a 20-year payment period that coincides with issuance of city general obligation bonds.
The proposed development agreement mirrors prior subdivision agreements: the developer contracts and constructs improvements to city standards and the city reimburses eligible costs. Coarch said staff reviewed the petition under prescribed Kansas statutes for sufficiency and feasibility and recommended approval. The commission passed the resolution and authorized the city manager to execute the development agreement (vote 4-0).
Next steps: staff will finalize the development agreement and return with final cost figures and bond details once actual construction bids and close-out costs are available.
