Town Talk: Bowersock project hits bump; Chestnut still undecided on campaign; Audience member creates stir at City Hall
News and notes from around town:
• It hasn’t been the best of weeks for a proposed project to build a new hydroelectric power plant on the north bank of the Kansas River. Lawrence-based Bowersock Mills & Power Company has been trying to sell $25 million worth of bonds this week. The timing hasn’t been great because it has been one weird week for the bond market. Interest rates have spiked, in part, because projects all over the country are trying to issue bonds tied to various federal stimulus programs before they expire at the end of the year. The result? Bowersock leaders have had to raise the ceiling on potential interest rates for the bonds from 8.5 percent to 10 percent. The company went to the City Commission on Tuesday to seek approval on the interest rates for the bonds to rise. The city is involved because technically the city is issuing the bonds, but the bonds are structured in a way so the city is not financially backing the bonds.
Sarah Hill-Nelson, an owner of Bowersock, said the company is still holding out hope that it will find a buyer for the bonds before the end of the year. Hill-Nelson, though, said if a bond buyer isn’t found, the company would continue to try to keep the power plant project alive by seeking other means of financing.
• City commissioners also agreed to adjust a pair of ground leases for city property along the river where the new Bowersock plant would be built on the north side and where a portion of the existing plant is on the south side. Commissioners agreed to allow four 10-year extensions to be added to the north bank lease and six 10-year extensions to be added to the south bank lease. The extension will allow Bowersock to lease the properties until April 2137. Commissioners though did insert a clause into the lease that allows for the rental rate to be adjusted to a fair market value prior to any of the extensions being executed. Hill-Nelson said the leases had to be adjusted because it became clear during financing discussions that Bowersock needed to have leases for the property that coincided with the expected lifespan of the power plant.
• For those interested in City Commission process, an important change was made at Tuesday’s meeting. The commission changed its quorum from four members to three. The quorum is the number of members that must be present for the commission to vote on matters. The commission since the early 1990s has had a quorum of four because that legally allowed two commissioners to have a private conversation about city business without violating the Kansas Open Meetings Act.
So now you may be asking: Will that practice still be allowed. The answer is yes, two commissioners still will be able to legally have a private conversation about city business. That’s because the Kansas Legislature several years ago changed the Kansas Open Meetings Act to make it legal for two members on a five-member commission to have a conversation, regardless of the quorum.
There’s also been some question about how the change in quorum would affect an odd situation with a request for incentives for a building project underway at the southwest corner of Ninth and New Hampshire streets. Two commissioners have abstained from a preliminary vote on that matter, which leaves just three commissioners to vote on the issue. But the city’s legal staff said it isn’t clear whether those two commissioners could continue to be counted as part of the quorum. If they weren’t counted as part of the quorum, the city commission — prior to this change — wouldn’t have enough members to consider the issue. City Manager David Corliss said the issue didn’t have an impact on his recommendation to change the quorum. Instead, the smaller quorum will give the city more flexibility to pay bills, handle payroll and conduct other necessary functions when two commissioners are absent.
• In the latest news from the City Commission election front, Commissioner Rob Chestnut told me that he’s still undecided on whether he will seek re-election. Town Talk reported earlier this month that Chestnut was once again considering a run for the commission after he was not chosen to serve as Gov.-elect Sam Brownback’s budget director. Then speculation over the last few days has been that Chestnut has decided not to run. Chestnut said a run is still possible, but he likely would not make a decision until after Jan. 1. The filing deadline is noon Jan. 25.
• An unusual moment also took place at Tuesday’s City Commission meeting. A member of the audience, Jim Davidson, was asked to leave commission chambers by a Lawrence police officer. Davidson was asked to leave after he was ruled out of order by vice-mayor Aron Cromwell, who was filling in for absent Mayor Mike Amyx. Davidson got up during an unrelated agenda topic and began asking Cromwell why the public wasn’t allowed to comment on two previous agenda items — the Northeast Sector plan and proposed Environmental chapter for Horizon 2020.
Cromwell and City Manager David Corliss said the commission didn’t hold a public hearing on the issues because it instead wants to have a study session with the County Commission on the issues. After that study session, full public hearings will be held. Davidson then began questioning whether the commission was violating the Kansas Open Meetings Act. Cromwell assured him they weren’t, and Corliss began to explain the law in more detail when Davidson began to speak over Corliss. Corliss asked Davidson if he was through with his comments. Davidson stared at Corliss and said “Yes, are you?” At that point, Cromwell declared Davidson’s conduct inappropriate. A Lawrence police officer then asked Davidson to step out in the lobby for a conversation. Davidson said he did not want to leave the meeting. At that point, the commission took a five-minute recess. The police officer was heard to tell Davidson that he was disrupting the meeting and that was against the law. Davidson then picked up his coat and left.
The commission has regularly had a uniformed police officer at its meetings since a 2006 incident when a member of the crowd made a threatening gesture toward a speaker.
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