Olathe City Council Meeting - November 19, 2024

The Olathe City Council met on Tuesday, November 19, 2024, at 6:30 PM (live stream began at 7:00 PM) in the Council Chamber. All six present council members (Bacon, Vogt, Gilmore, Felter, Vakas, Essex) voted unanimously on all items; Councilmember Schoonover was absent. The meeting included proclamations, recognition of the new Teen Council, public hearings on two major economic development projects (Indian Creek Crossing and Olathe Gateway), approval of industrial revenue bonds, land acquisition for the I-35 & Santa Fe interchange project, and a traffic ordinance update. Council members also discussed a proposed letter to KDOT regarding the K-10 Lone Elm interchange and new speed feedback signs.

Consent Calendar

• Approved minutes of November 5, 2024.
• Approved renewal license(s) as recommended by the City Clerk.
• Approved travel authorization for Michael Wilkes.
• Approved the Consent Calendar (routine items).
• Approved a Professional Services Agreement with George Butler Associates, Inc. for traffic signal replacement.
• Approved Amendment No. 1 with Crossland Heavy Contractors for sewer interceptor construction.
• Approved Amendment No. 1 to the interlocal agreement with Water District No. 1 for water service area enlargement.
• Approved Supplemental No. 1 to the agreement with Johnson County for Black Bob Road improvements.
• Approved Engineer’s Estimate, bid acceptance, and contract award to Infrastructure Solutions, LLC for lift station replacements.
• Approved renewal of contract with Dr. Lindsey Crawford for veterinarian services at the animal shelter.

Public Comments & Testimony

• Shawn Wood, an Olathe resident (14426 South Village Drive), spoke on multiple public hearings:
  • On the Indian Creek Crossing Community Improvement District (CID) ordinance (Item A): He expressed opposition, stating the proposed 22-year payoff period did not meet the city's policy goal of a 10-year payoff and that the projected $1.7 million return over 22 years was less than the $2 million requested assistance.
  • On the Indian Creek Crossing TIF ordinance (Item B): He voiced opposition, reiterating that the 22-year period exceeded the city's 10-year payoff goal, noted the requested $5 million TIF would only generate $2.5 million in 10 years, and that the net present value at 22 years was $2.8 million.
  • On the Olathe Gateway CID ordinance (Item D): He expressed support, stating the project was of “community-wide importance” and justified the extended timeframe.
• No other public testimony was offered on Items C (STAR Bond) or E (TIF amendment).

Discussion Items

Special Business

• Recognition of 2024-25 Olathe Teen Councilmembers: Mayor Bacon and Teen Council Coordinator Liz Ruback introduced 25 teens representing nine high schools. Each received a certificate. The council had dinner with them earlier.
• Proclamation – Native American Heritage Month: Mayor Bacon read the proclamation; the scheduled guest was unable to attend. He also announced a future Smithsonian exhibit at Mahaffey Stagecoach Stop & Farm featuring local Native American stories.
• Proclamation – Small Business Saturday (November 30): Susie Carson from the Olathe Chamber introduced Brown Sugar owners Asia Lockett and Ebony Paul Harris. Mayor Bacon read the proclamation. Brown Sugar highlighted their literacy program “Sugar Cares.”

Public Hearings – Indian Creek Crossing Project

• City Attorney Ron Shaver presented two ordinances: a CID and a TIF for redevelopment at the northwest corner of Santa Fe and Mur-Len (115,000 sq ft, including a fitness facility, sports/entertainment venue, hardware store, convenience store, and expansion of Fire Station 4). The CID would levy a 1% sales tax for up to 22 years (starting October 1, 2025, not September 1 as originally written). Combined CID and TIF revenues up to $7 million. The TIF project plan required completion by June 30, 2026.
• Council approved both ordinances after public hearings (6-0).

Public Hearings – Olathe Gateway Project

• Ron Shaver described the $320 million project at 119th and Renner, including a 5,000-seat multi-sport arena, an ultra-accessible amusement park, retail, a 150-room hotel, a medical facility, and infrastructure. Up to $65 million in STAR bonds would be issued, funded by state and local sales taxes and transient guest taxes. Additional $29.3 million in TIF funds for Area 2 (up to 20 years). A CID for the western area would levy a 1% sales tax starting October 1, 2026. The developer must start construction by July 15, 2025. The total public incentive cap is about $104 million (33% public, 67% private). Anticipated 1,200 direct jobs, $68 million annual payroll, $130 million annual retail sales, and over 600,000 annual visitors.
• Council approved four related ordinances (STAR Bond Plan, CID, TIF amendment, and TIF project plan) after public hearings (6-0 each). Councilmember Felter noted the project’s focus on vulnerable populations.

New Business

• Ordinance 24-52 (Industrial Revenue Bonds): Authorized up to $71,594,289 in taxable bonds for Scannell Properties #717, LLC to build a 729,120 sq ft warehouse for General Mills Blue Buffalo brand on 57 acres near 159th and Clare Road. Approved 6-0.
• Resolution 24-1064 and Ordinance 24-53 (Land Acquisition for I-35/Santa Fe Interchange): Authorized a survey, description of condemned land, and acquisition for the $290 million interchange project (Santa Fe Corridor, Ridgeview to Mur-Len). City Attorney Shaver updated that some properties have been acquired, negotiations continue, tenant relocation assistance is being provided, and total takings are expected to be resolved in early 2025. Approved 6-0 each.
• Ordinance 24-54 (Traffic Ordinance Amendment): Updated Title 10 to align with state law and community needs. Approved 6-0.

New City Council Business

• Councilmember Vogt proposed sending a Council letter to KDOT regarding the K-10 Lone Elm interchange project, citing concerns about student safety (five nearby schools), lack of sound barriers on the south side (which the city might have to fund), drainage issues in Mill Street farms, and the need for KDOT to cover added costs. Councilmembers Felter, Gilmore, Vakas, and Essex supported the idea. Mayor Bacon directed staff to prepare a draft by December 3 for signatures.
• Councilmember Vogt noted new portable speed feedback signs (five in use by police) and expressed interest in obtaining more via grants. Chief Butaud confirmed they are cost-effective and used for data collection and enforcement.
• Councilmember Essex reminded about the municipal court food drive (donate $15 of food/toiletries for a $50 fine waiver) through November 22.
• Councilmember Felter praised the Teen Council. Councilmember Essex sent well wishes to absent Councilmember Schoonover (cancer journey).
• Mayor Bacon announced the Elevate Olathe Dream Big Visioning Open House on December 10 (5-8 PM at Embassy Suites) for public input on housing, transportation, and land use.
• Councilmembers wished everyone a Happy Thanksgiving.

Key Outcomes

• All votes were unanimous (6-0) with Councilmember Schoonover absent.
• Approved proclamations for Native American Heritage Month and Small Business Saturday.
• Approved Indian Creek Crossing CID (Ordinance 24-47) and TIF (Ordinance 24-48).
• Approved Olathe Gateway STAR Bond Project Plan and Development Agreement (Ordinance 24-49), CID (Ordinance 24-50), TIF amendment and project plan (Ordinance 24-51).
• Approved industrial revenue bonds for General Mills warehouse (Ordinance 24-52).
• Approved condemnation resolution (24-1064) and land acquisition ordinance (24-53) for I-35/Santa Fe project.
• Approved traffic ordinance amendment (24-54).
• Directed staff to draft a Council letter to KDOT regarding K-10 Lone Elm interchange concerns by December 3.
• Noted the start date correction for the Indian Creek Crossing CID sales tax from September 1, 2025 to October 1, 2025.
• No action taken on reports (Business Garage Authority IRB request accepted for information).
• The meeting adjourned at 8:28 PM.