By LESLIE EIKLEBERRY
Salina Post
During a special meeting Wednesday afternoon, the Salina City Commission gave its approval for staff to submit to the state BASE grant applications related to proposed housing projects.
Building a Stronger Economy (BASE) grants are "intended to be spent quickly with the goal of funding projects that will have an immediate economic impact," according to a memo to commissioners from Deputy City Manager Jacob Wood. Money for the BASE grants comes from the federal American Rescue Plan Act. The BASE grants require a 25-percent match. Only three grant applications may be submitted by a single entity.
The three housing-related projects for which the city plans to submit BASE grant applications are as follows.
Drever Housing Development
Applicant: City of Salina
Project cost: $315 million
Grant request: $65 million
While the maximum amount for which an entity can apply is $25 million, the city plans to ask for $65 million.
"We are going to request $65 million as an ask for this. We've had a lot of conversations with the lieutenant governor and our local delegation and while the $25 million is the max for this grant, we are going to go ahead and submit the project as a whole. That was kind of the way that they recommended that we do it. And we'll see how that comes out," Wood told commissioners during the meeting today.
The proposed local match from the city is $1 million. That would come from American Rescue Plan Act funds that the city has already set aside, Wood said. Additionally, Saline County has committed $1 million to the project, he added.
"The rest of the local match will be from the developer. The developer's going to put some cash in, and then they're also requesting that local businesses, you know, submit or invest in this project as well," Wood said. "It's a pretty diverse set of capital stack that we would need to make this project move."
The project is slated for two locations: the area around Menard's in southwest Salina and the area on W. Crawford where the Ambassador Hotel & Conference Center, Value Inn, and former Western Sizzlin' are located.
The area around Menard's would include 1,300 new units comprised of 950 multi-family units, 150 cottage homes, and 200 active adult 55+ apartments. Additionally, the area would be anchored by a new satellite YMCA facility that would provide daycare from 7 a.m.-10 p.m., according to an image Wood shared with the commissioners.
The area on W. Crawford Street would include 500 new residences, made up of 100 junior one-bedroom residences, 338 micro-unit studio apartments, and 62 old hotel rooms in the Value Inn that would be converted to micro-unit studio apartments.
Holmes Road Improvements
Applicant: City of Salina
Project cost: $10.8 million
Grant request: $8.1 million
Wood said this project involves a three-mile section of Holmes Road from Country Club Road south to E. Magnolia Road. The work would include installing water and sewer lines and a new, improved street, he said. This work would make available 1,264 acres of land for housing development.
The proposed city match for this project is $2.7 million. Wood said the city would have several options for funding the $2.7 million.
Commissioner Bill Longbine questioned how much of the Holmes Road area was in the county and not within the city. Wood acknowledged that most of that area was not within the city limits.
"This corridor is identified in our comprehensive plan as our future growth area for the foreseeable future as it relates to residential, so while it's not in the city limits at the moment, it's anticipated that that's where our growth would occur and we'd annex it in as needed," said City Manager Mike Schrage.
Schrage explained that the work on this project would be backbone infrastructure that would spur housing development in the Holmes Road area.
Aero Planes Housing Development
Applicant: City of Salina
Project cost: $33 million
Grant request: $4.5 million
The Aero Planes project is proposed for the land to the southwest of the proposed Drever project around Menard's, Wood said. Phase 1 would include 112 residential units.
The amount of the local match should the grant be awarded, would be covered by the developer, Wood said.
City assistance with additional grant requests
Commissioners also were asked to approve assistance with two other BASE grant applications, which they did. Those are as follows.
Northside Industrial Park Wastewater and Rail Realignment
Applicant: Salina Community Economic Development Organization Project cost: $5.2 million
Grant request: $3.9 million
This project is located on E. North Street, north and northeast of Lakewood Park. Wood said that part of the project would be to move a railroad spur, which mainly is used to store railcars. By moving the spur, the land to the north of the industrial park would be opened up for development and would be better connected to the current industrial park. Another component of the project would be to realign a sewer line that angles off across the industrial park, which also would open up additional land for development.
Although the economic development organization is applying for the grant, the city is being asked to cover at least part of the match portion, which would be $1.3 million. Schrage said that should the grant be awarded, the city could negotiate with private entities to share the cost of the match portion.
"If we got the grant award, similar to what we talked about before, we're not necessarily obligated to take it. That would be the point that we'd have to negotiate some cost-sharing among the benefitting parties and treat it like an economic development prospect going forward," Schrage said.
Additionally, the city will be writing a letter of support for the grant being awarded.
University housing
Applicant: Saline County
Project cost: $16 million
Grant request: $11 million
Wood said that this project is a consortium with K-State Salina and Kansas Wesleyan University. Both universities, he said, are in need of additional student housing and have plans for increasing their housing. The universities would cover the local match portion should the grant be awarded.
"This isn't something we would have to support financially. Saline County this morning had a special meeting where they discussed this and they are going to submit that application," Wood said.
The city will be providing a letter of support to be submitted with this BASE grant application.