Cozy Inn Appeal Charges Reduced to Exactly $50,000 After $9,898 Adjustment

City accounting records initially showed $59,898 in charges specifically labeled for the appeal before a later entry reduced the total to the amount presented to commissioners.

City of Salina accounting records show legal charges specifically labeled as part of the Cozy Inn appeal initially totaled $59,898 before a later $9,898 adjustment reduced the net total to exactly $50,000.

That amount matches the estimate presented to city commissioners when they authorized the appeal.

City Manager Jacob Wood has not responded to questions seeking an explanation of the adjustment, how it was calculated or whether any appeal-related expenses were recorded under other accounting descriptions.

Appeal Approved Dec. 16

The City Commission authorized the Cozy Inn appeal on Dec. 16, 2025.

Commissioners were told the appeal could cost up to $50,000, with another $20,000 possible if oral argument occurred.

As of July 26, no oral argument had occurred or been scheduled. Under the estimate presented to commissioners, the additional $20,000 should not yet apply.

City accounting records show $120,769.52 in Cozy Inn-related legal charges posted after Dec. 16. However, the records provided to Salina311 through a Kansas Open Records Act request do not establish that all of those charges were for the appeal.

The records show only that the payments were posted after the City Commission approved the appeal. Some may have covered work performed earlier in the original case.

Appeal-Labeled Charges Reached $59,898

The accounting records show four Fairfield & Woods charges specifically labeled as appeal expenses:

Jan. 22: $4,660.50, labeled “12/31/25 Appeal”

Feb. 19: $11,696, labeled “01/31/26 Appeal”

March 19: $40,000, labeled “02/28/26 Appeal”

April 30: $3,541.50, labeled “03/31/26 Appeal”

The February, March and April entries also referenced the Tenth Circuit appeal.

Together, the four charges totaled $59,898, which was $9,898 more than the $50,000 estimate presented to commissioners.

June Adjustment Reduced Total to $50,000

On June 29, the city posted a negative $9,898 entry associated with Fairfield & Woods.

The earlier charges used monthly labels such as “12/31/25 Appeal” and “02/28/26 Appeal.” The later adjustment used the period label “2026 Appeal” and the comment “Cozy Inn Appeal.”

The adjustment reduced the appeal-labeled total from $59,898 to exactly $50,000.

The records do not explain:

-Why was the $ 9,898 adjustment made

-How the amount was calculated

-Which earlier charge was adjusted

-Whether the adjustment was connected to the $50,000 estimate presented to commissioners

-Whether it represented a refund, billing correction, fee limit or reclassification

The records also do not establish that the $9,898 was later resubmitted under another description.

Questions Sent to City Manager

Salina311 emailed Wood on July 13 and asked the city to explain the appeal accounting.

The questions included:

-Why the $9,898 adjustment was issued and how it was calculated

-Whether the adjustment was connected to the approximately $50,000 estimate presented to commissioners

-Whether any appeal-related expenses were entered under another accounting description

-Who determines how Cozy Inn legal invoices are categorized

-Whether the $50,000 estimate covered all appeal work other than oral argument

-Whether the appeal remains within the amount presented to commissioners

Salina311 sent follow-up emails July 17 and July 21.

On July 24, Salina311 informed Wood that the questions had been pending for 11 days and provided a 5 p.m. deadline for answers or a statement.

Salina311 also called Wood’s office, left a voicemail and spoke with his executive assistant, Holly McGuinness. McGuinness said she would tell Wood that Salina311 was following up on the questions.

As of July 26, Wood had not responded or provided a statement.

Total Cozy Inn Legal Spending

The city accounting spreadsheet reviewed by Salina311 shows $840,110.87 in total Cozy Inn-related legal expenses through June 29.

Using the commission’s Dec. 16 appeal decision as the dividing point, the records show:

Posted before Dec. 16, 2025: $719,341.35

Posted after Dec. 16, 2025: $120,769.52

Total legal spending: $840,110.87

The $120,769.52 posted after Dec. 16 should not automatically be considered the cost of the appeal.

The KORA records do not identify all of those later charges as appeal expenses. They establish only that the payments were posted after the appeal was approved.

An invoice paid after Dec. 16 may have included work performed before the appeal decision. Salina311 is continuing to seek clarification about which later charges were connected to the appeal and which involved work on the original case.

The records specifically identify $50,000 in net appeal-labeled charges after the June adjustment.