Written by Don Ratzlaff Wednesday, 14 May 2008 06:51
The Hillsboro City Council approved contracts of the sale of city-owned commercial property to two separate developers during a special meeting Monday.
Three lots were sold in the newly platted Hillsboro Business Park to JKC, LLC. The property reportedly will be used by Midway Motors of McPherson to build a new a automobile dealership. Midway Motors recently acquired Irv Schroeder Country Motors in Hillsboro.
City Administrator Larry Paine said the city had received a check for $123,246.50 for the purchase and development of the property, which was identified as lots 1, 2 and 3 in the new development.
Meanwhile, the council also approved the sale of two lots in Hillsboro Heights to the Vada M. Reimer Trust for the price of $20,000.
The two lots, located between Country Haven Inn and Sonic Drive-In, will be developed by Hillsboro businessman Albert Reimer for a recreational-vehicle business.
Both sales include a clause that the city can purchase back the respective properties at their sale price if development does not proceed within three years.
The contract with JKC, LLC, is contingent on the city developing the necessary streets and infrastructure within Hillsboro Business Park.
Asked what assurances the city has that the HBP property actually will be developed once the city spends the money for sewer, water and streets, Paine replied, “I’m not going to spend that money until I know they’re going in.”
Paine said it is his intent to begin steps to develop the business park “ahead of the game,” so that the work can begin when the developer needs it to happen.
Also at the special meeting, the council approved a resolution that would allow the city to pre-pay Westar Energy $64,000 for the coming month’s power bill.
The monthly pre-payment plan was agreed to through an interim contract between Westar and the Kansas Power Pool, which is a consortium of municipalities, including Hillsboro, that negotiates the purchase of energy with Westar and other suppliers.
Once the permanent contract between Westar and KPP is approved by all parties as well as the Federal Energy Regulation Commission, the city’s contracts will be billed on a consumption basis, as is the norm.
The council discussed the agreement at its May 6 meeting. Paine acknowledged then that he had never previously been part of a pre-payment arrangement with a utility during his career as a city administrator.
“I’m OK with it, but I’m looking at this with reservations,” he said at the meeting. “It’s unlike any other contract we’ve had.”
May 6 action
Also at the May meeting, the council approved a recommendation to award a bid for concrete work near the intersection of Grand and Washington streets to Vogts Construction of North Newton.
The bid of $46,850 includes curb, gutters and sidewalk around the northwest corner of the new housing project a being developed by Solomon Langley of California, as well as curb, gutter and sidewalk on the west side of Washington.
The project will be paid for by the three parties involved: Langley ($24,950),the city ($18,400) and Hillsboro Mennonite Brethren Church ($3,500), former owner of the properties.
The council also agreed to a property swap between the city and the Hillsboro Development Corp.
While recording the plat for the Hillsboro Business Park,the county assessor noticed that the southeast corner of the park was actually owned by HDC, not the city.
To solve the problem and unify ownership of the business park under one owner, the city and HDC agreed to trade properties within that area for mutual benefit.
HDC will issue a quit-claim deed on 1.24 acres in the business park plat, and the city will do the same for 1.84 acres of property just east of the plat to HDC.
The difference in size is about the right size for a street right of way that could become a continuation of East Orchard Drive.
At the meeting, the council also:
n approved a reimbursement to Hillsboro Community Medical Center via the Public Building Commission for the recent purchase of an $80,000 colonoscopy analysis machine. The state of the art, high-definition tool will greatly increase the view of the colon and make it easier to detect early polyps and problem areas, according to Mike Ryan, HCMC chief executive officer.
n approved the following invoices related to the city’s sewer lagoon project under construction east of Hillsboro: $23,696 to EBH & Associates for engineering, inspection and construction staking; and $222,9662 to APAC-Kansas for construction.