ORDINANCE NO. 52-802 AN ORDINANCE OF THE CITY OF WICHITA, KANSAS ESTABLISHING THE HOTEL INDIGO COMMUNITY IMPROVE- MENT DISTRICT; AUTHORIZING THE MAKING OF CERTAIN PROJECT IMPROVEMENTS RELATING THERETO; AP- PROVING THE ESTIMATED COSTS OF SUCH PROJECT IMPROVEMENTS; LEVYING A 2.0% CID SALES TAX; PRO- VIDING FOR THE METHOD OF FINANCING THE SAME; AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT RELATING THERETO. WHEREAS, the provisions of K.S.A. 12-6a26 et seq., as amended, (the “Act”) set forth the procedure for the establishment of a community improvement district; and WHEREAS, pursuant to the Act, a petition (the “Petition”) was filed with the City Clerk of the City of Wichita, Kansas (the “City”), which Petition proposes the creation of a community improvement district (the “Hotel Indigo Community Improvement District”), the completion of a project therein consisting of redevelopment of certain property into a hotel facility, and associated financing and ad- ministrative costs, and other items eligible for reimbursement under the Act (the “CID Project”), provides the maximum cost of the CID Project, and proposes the imposition of a community improvement district sales tax in the amount of 2.0% (the “CID Sales Tax”); and WHEREAS, the Act provides that prior to creating a community improvement district, the City Council of the City (the “Governing Body”) shall, by resolution, direct and order a public hearing on the advisability of the creation of such community improvement district; and WHEREAS, the Governing Body adopted Resolution No. 25-321 (the “Resolution”) on July 15, 2025, directing that a public hearing on the proposed Hotel Indigo Community Improvement District be held August 19, 2025, and directing the City Clerk to provide for notice of such public hearing as set forth in the Act; and WHEREAS, the Resolution was published once each week for two consecutive weeks in the official newspaper of the City and notice of the hearing regarding the creation of the Hotel Indigo Community Improvement District was given to all property owners within the proposed Hotel Indigo Community Improvement District in accordance with the Act. NOW THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF WICHITA, KANSAS: Section 1. Creation of the Hotel Indigo Community Improvement District; Authorization of CID Project. The Governing Body hereby creates the Hotel Indigo Community Improvement District within the City and approves the boundaries thereof. A legal description of the property within the Hotel Indigo Community Improvement District is set forth in Exhibit A attached hereto. A map generally outlining the boundaries of the Hotel Indigo Community Improvement District is attached hereto as Exhibit B and incorpo- rated herein by reference. The Governing Body hereby finds and determines that it is advisable to authorize the CID Project described herein and as such authorizes the CID Project. Section 2. Maximum Cost of CID Project; No Special Assessments. The estimated cost of the CID Project is $41,015,094. The maximum cost of the CID Project expected to be funded from the CID Sales Tax, exclusive of administrative fees, is $2,500,000. Section 3. Method of Financing. The Project will be financed on a pay-as-you-go basis from revenues received from the imposi- tion the CID Sales Tax on the selling of tangible personal property at retail or rendering or furnishing services taxable pursuant to the provisions of the Kansas retailers’ sales tax act within the District. There will be no special assessments levied pursuant to the Act and there will be no bonds issued pursuant to the Act. Section 4. Imposition of CID Sales Tax. The Governing Body hereby imposes the CID Sales Tax within the Hotel Indigo Commu- nity Improvement District in an amount of 2.0% on the selling of tangible personal property at retail or rendering or furnishing services taxable pursuant to the Kansas retailers’ sales tax act within the Hotel Indigo Community Improvement District. The City Clerk shall cause all notices required by the Act to be given following passage of this ordinance. The CID Sales Tax will commence on the day set forth in the required documentation provided by the City to the Kansas Department of Revenue or as soon as may be imposed thereafter. The CID Sales Tax shall remain in effect for the maximum period provided for in the Act, or such period as may be required for payment from CID Sales Tax revenues of the maximum amount of costs approved for CID Project in Section 2, above, whichever is the lesser period. Section 5. Collection of the Sales Tax. The collection of the CID Sales Tax shall be made in the manner presented in the Act. Section 6. Segregation of the Sales Tax Revenues. All revenues derived from the collection of the CID Sales Tax shall be deposited into a special fund of the City to be designated as the Hotel Indigo CID Sales Tax Revenue Fund. Such revenues shall be used to pay the costs of the Project on a pay-as-you-go basis and related expenses. Section 7. Development Agreement. The City and signers of the Petition have negotiated a Development Agreement (the “Development Agreement”) relating to the CID Project, the development thereof, and the construction and payment of improvements related thereto. The Development Agreement is hereby approved in substantially the form presented to the Governing Body, with such changes or modifications as may be approved by the City Manager and as may be approved as to form by the City Attorney. The Mayor is hereby authorized to execute the Development Agreement and such other documents as may be necessary to implement the intent of this Ordinance and the Development Agreement, as may be approved by the City Manager and as may be approved as to form by the City Attorney, by and on behalf of the City and the City Clerk is hereby authorized to attest such signature. Section 8. Further Authority. The City shall, and the officers, employees and agents of the City, including Gilmore & Bell, P.C., the City’s bond counsel, are hereby authorized and directed to, take such action, expend such funds and execute such other docu- ments, certificates and instruments, as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect thereto. Section 9. Effective Date; Recording. This Ordinance shall take effect from and after its passage by the Governing Body, and its publication once in the official newspaper of the City. This Ordinance shall also be filed of record in the office of the Register of Deeds of Sedgwick County, Kansas. PASSED by the City Council of the City of Wichita, Kansas, on August 26, 2025. (SEAL) Lily Wu, Mayor ATTEST: ______________________ Deputy City Clerk APPROVED AS TO FORM: Jennifer Magaña, Director of Law and City Attorney EXHIBIT A LEGAL DESCRIPTION OF DISTRICT The following described property in the City of Wichita, Sedgwick County, Kansas: Lots 14, 16, 18 and 20, on Lawrence, now Broadway Avenue, in Greiffenstein’s Addition to Wichita, Sedgwick County, Kansas. Lots 22, 24 and 26, on Lawrence Avenue, now Broadway Avenue, in Greiffenstein’s Addition to the City of Wichita, together with that portion of vacated Lawrence Avenue, now Broadway Avenue, vacated by City of Wichita ordinance No. 140. Lots 28, 30, 32 and 34, on Lawrence Avenue, now Broadway Avenue, in Greiffenstein’s Addition to the City of Wichita, Sedgwick County, Kansas Unit 1, Unit 2, Unit 3, Unit 4, Unit 5A, Unit 5B, Unit 6, Unit 7 and Unit 8, in Petroleum Building, a Condominium located on Lots 28, 30, 32 and 34, on Lawrence Avenue, now Broadway Avenue, in Greiffenstein’s Addition to the City of Wichita, together with that portion of vacated Lawrence Avenue, now Broadway Avenue, vacated by the City of Wichita Ordinance No. 140, together with an undivided interest in the common areas and facilities as established by the Declaration of Office Condominium recorded as Doc.#/FLM-PG: 28810901. EXHIBIT B MAP OF DISTRICT