he Ellsworth City Council is moving forward

Ton the Krizek Park detention basin.

At Monday’s meeting of the council, after a 20-minute executive session to discuss matters pertaining to attorney-client privilege (issues dealing with Krizek Park), the council approved a letter written by City Attorney Melissa Miller regarding the Krizek Park detention basin legal action.

“The basics of the letter talk about the high mountain the city would have to climb if it took legal action,” Mayor Dan Finnegan said. “The net gain for taxpayers doesn’t even come close to the cost. We are committed to being transparent, and as a result, we are following through with this letter, as promised. We’re excited to begin this new phase.”

Finnegan said the letter will be posted on the city website and on the city’s Facebook page.

In other business:

• Approval was given to conduct a public hearing at 5 p.m. Monday, Nov. 27, at city hall to discuss adding the following property to the TIF Redevelopment District: All of Block 27 in Blake’s Addition to the City of Ellsworth and all of Block 28 in Blake’s Addition to the City of Ellsworth lying west of the right-of-way of K-156 Highway, currently known as the Veteran’s Memorial Hospital, which is located south of Third Street between Third Street and Second Street and east of Kingsley Street between Kingsley Street and Webb Street in the City of Ellsworth.

As part of that addition, Section 2 of the district plan would be amended to include raze and removal of structures, environmental remediation and site preparation.

• Approval was given to the city to disperse $120,000 to Oak Creek Chiropractic to an escrow account at First Bank Kansas contingent upon approval by the city’s bond counsel Kevin Cowan, and that the disbursement from that account follow based on receipts, ect., with the understanding that the remaining balance will be returned to the TIF fund.

Before the council acted, however, Curt Glaser of First Bank Kansas clarified several points. First, he said Oak Creek Chiropractic is applying for a Small Business Administration loan for longer term financing, not construction financing.

Second, it is not collateral. “Basically, I just need to show the money is being dispersed to her (Dr. Lindsey Voeltz of Oak Creek Chiropractic) and I can’t wait until the end of the project,” Glaser said. “It needs to come at an earlier date.”

Originally, the council was asked to consider a request to utilize Tax Increment Financing (TIF) funds to assist in the financing. However, after conducting a legal review, Miller, in consultation with Cowan, determined the request was not in the best interest of the city.

The key issue was the proposed use of TIF funds as collateral for a loan to finance the construction of a building. It was determined that utilizing TIF funds as collateral for construction financing does not align with the permitted uses outlined in the Kansas TIF statutes. That is why Glaser gave the clarifications he did while addressing the council.

Council President Wayne Scritchfield said $120,000 is the maximum the city will distribute if it receives receipts for work done inside the city right-of-way. He noted a cost break down of work performed is needed to show that the $120,000 is the appropriate amount to distribute.

Scritchfield said he doubted if the work Oak Creek Chiropractic plans in the city right-of-way would amount to $120,000.

“I am afraid if we allocate $120,000, the receipts are not going to show and she is going to have to give a bunch of that money back,” he said.

“If we wait for the receipts, it’s going to be at the end of the project and not at the front,” Glaser said. “That’s why I originally asked that the funds could be shown as being held in escrow.”

“So, where do we go from here,” Finnegan asked.

City Administrator Dustin Stambaugh said that Oak Creek Chiropractic and First Bank Kansas should stick to the original approval by the city council.

Stambaugh said the city is still waiting on the plans as requested, and will not release the funds to Oak Creek Chiropractic until they are received.

Miller said she will call Cowan and confirm whether or not the city can hold the funds in escrow and then pay out of the escrow account in order to show the funds are available.

• Approval was given was given to a request by Patrick Hammel of the Ellsworth Golf Course to purchase a Buffalo Turbine from Van Wall Equipment for $10,075.

• Consideration of Resolution 2023-09, establishing city equipment rates for property mitigation, was placed on hold so Stambaugh and Miller can do more research on the matter.

• Approval was given to rebuild and update the city’s three billboards in town.

• Approval was given to contract with Brad Waller of Benesch to conduct the engineering for the snow removal equipment building at the Ellsworth Airport at a cost of $99,485. The city will make monthly payments until it receives its annual $150,000 grant disbursement from the Federal Aviation Administration.

• Approval was given to allow Ronnie Tenbrink of the Ellsworth Recreation Department and Stambaugh to waive fees at their discretion for the use of tables and chairs for public events.

The next regularly scheduled meeting of the Ellsworth City Council is at 5:30 p.m. Monday, Nov. 13, at city hall.