HUTCHINSON, Kan. — The Hutchinson City Council will discuss the bonding of the demoltion project for the Atrium Hotel at their meeting Tuesday.
According to agenda documents, the City of Hutchinson will incur certain demolition expenses related to the demolition of an unsafe and dangerous structure, the Atrium, prior to closing on the bonds.
This project is different in that the city is not creating a capital asset, but instead removing one. Charter Ordinances allow the creation of capital assets. In order to bond this project, counsel advised the city to use Home Rule.
The Ordinance before the council approves the project and bonding costs up to $1,200,000. If the costs are less than that, the city does not have to bond the full amount.
The project costs include the bid awarded to Kansas Concrete LLC and an estimated contingency.
If the City Council adopts this Ordinance, the City will be able to pay certain expenses prior to the issuance of bonds. This project will be bonded separately as it will likely be taxable general obligation bonds.