Commission approves 5th Amendment to Kaw River Bridge CID reimbursement order

The Economic Development & Finance standing committee approved a 5th Amendment to the Kaw River Bridge Cooperative and Development Agreement that changes the order of priority for reimbursements from the Community Improvement District (CID).

Todd LaSalle, outside counsel, summarized the amendment: the developer (Flying Trust/Flying Trust-related entity) would receive an initial $100,000 reimbursement for bridge-strengthening costs; the Unified Government would defer the industrial revenue bond (IRB) closing fee and receive that fee from future CID proceeds once sufficient funds are collected (LaSalle said the IRB fee would be paid when there is about $58,000 in CID money available). LaSalle explained the new order of priority would then pay the developer an additional near-$75,000, then reimburse the UG for scaffolding/sealant costs (about $146,000), then ultimately return the UG's $2,000,000 investment plus interest before any remaining CID funds go to the developer.

Commissioners asked about whether the reordering reduced UG revenues; LaSalle and staff emphasized this is a reordering rather than a reduction, and the only new element is the IRB fee deferral. Commissioner Davis moved to approve the resolution and Commissioner Pacheco seconded. Roll call returned a 6–0 vote in favor and the motion carried.

"The only thing that is new here is the deferral of the IRB fee," LaSalle said during his presentation. Staff and counsel also noted that CID-eligible costs must be used for allowable items and that the bridge and related infrastructure remain subject to those constraints.