Olathe City Council Meeting - December 3, 2024

The Olathe City Council met on Tuesday, December 3, 2024, at 7:00 PM in the Council Chamber. The meeting included appointments to advisory boards, three public hearings on industrial revenue bonds, approval of a consent agenda, new business related to the Black Bob Road improvement project, city council member comments, and later a planning session covering policy reviews and presentations. All votes were unanimous (6-0) with Councilmember Gilmore absent.

Consent Calendar

• Approved the City Council meeting minutes of November 19, 2024.
• Approved renewal license(s) as recommended by the City Clerk.
• Approved Resolution No. 24-1070 setting a public hearing for January 7, 2025, on a community improvement district for the 3rd Street Social project.
• Approved Resolution No. 24-1071 setting a public hearing for January 7, 2025, on a community improvement district for the Pizza 51 project.
• Approved Resolution No. 24-1072 defining the city boundary as of December 31, 2024.
• Accepted dedication of land for public easements for Living Hope Church of the Nazarene, Third Plat (two lots, one tract on ~24.75 acres).
• Accepted dedication of land for Asbury 4th Plat, Replat of Tract A (two lots on ~1.1 acres).
• Approved sign package for Heartland Coca-Cola Bottling facility on 116.83 acres at 17100 Hedge Lane.
• Approved Consent Calendar (routine items).
• Approved contract with Kaw Roofing & Sheet Metal, Inc. for roof replacement at City Hall.
• Renewed contract with Insco Industries, Inc. for pool painting and repair.
• Approved Med-Act License Agreements with Johnson County for use of space in Fire Stations 52 and 53.
• Awarded contract to ConvergeOne for annual VMWare subscription renewal.
• Approved 2025 Human Service Fund Allocation Recommendations.
• Approved 2025 Substance Use Continuum of Care Fund (SUF) Allocation Recommendations.

Public Comments & Testimony

• Jose Figuerua, an Olathe resident, spoke about his concerns regarding electric scooters.
• Gabriel Brown, an Olathe resident, spoke about homelessness.

Public Hearings

• A. Business Garage Authority IRB (Resolution No. 24-1067): The council held a public hearing for a $3,200,000 industrial revenue bond issuance for construction of a 33,000-square-foot speculative garage/flex office building at 15571 S Mahaffie St. No public comments were heard. The project is expected to generate 84 new jobs and $29.8 million in new wages over the 10-year abatement period. The city cost-benefit ratio is 6.59, with a payback period of two years. The Olathe School District has a ratio of 1.00 and a payback period of 10 years. Councilmember Felter asked about the school district ratio, and Economic Director Jamie Robichaud explained that the district only receives property tax revenue, not sales tax, extending the payback. Councilmember Schoonover asked about the facility type; it is a speculative warehouse facility. The public hearing was closed, and the resolution was approved unanimously.
• B. PT Property LLC (Pizza 51 South) IRB (Resolution No. 24-1068): The council held a public hearing for an industrial revenue bond and tax phase-in for redevelopment of an existing 1,715 sq ft building with a 1,690 sq ft addition, totaling 3,405 sq ft plus an 880 sq ft patio at 200 S Kansas Avenue. No public comments were heard. The project is expected to open mid-2025. The resolution was approved unanimously.
• C. 3rd Street Real Estate LLC (Third St Social) IRB (Resolution No. 24-1069): The council held a public hearing for an industrial revenue bond and tax phase-in for redevelopment of an existing 11,500 sq ft commercial building at 139 S Kansas Avenue (formerly the city's IT building). No public comments were heard. The project is expected to open later in 2025. The resolution was approved unanimously.

New Business

• A. Black Bob Road Improvement Project – Survey and Condemnation (Resolution No. 24-1073): The council approved a resolution authorizing a survey and description of land to be condemned for the Black Bob Road improvements from 153rd Terrace to 159th Street. The project will expand Black Bob to four lanes and improve pavement, curbs, sidewalks, etc. Approved unanimously.
• B. Black Bob Road Improvement Project – Land Acquisition (Ordinance No. 24-55): The council approved an ordinance approving an engineer's survey and authorizing land acquisition for the same project. Approved unanimously.

City Council Business

• Councilmember Felter thanked staff for the holiday lights around town.
• Councilmember Vogt reminded the public of the Elevate Olathe Dream Big Visioning Open House on December 10, 2024, from 5-8 PM at Embassy Suites on Ridgeview, to gather citizen input on the community's future vision.
• Councilmember Essex praised the holiday lights and noted the Mayor's Christmas Tree Lighting on Friday, December 6, 2024.
• Councilmember Schoonover expressed gratitude for support during his recent absence and his readiness to return to work.
• Mayor Bacon announced that a fundraiser at First Watch raised nearly $20,000 for the Mayor's Children's Fund. He also reminded about the Christmas Tree Lighting at Stagecoach Park on Friday, December 6, starting at 5:30 PM (lighting at 6:30 PM), with special guest Kansas City Chiefs Super Bowl champion Noah Gray. Donations can be made at OlatheCares.org.

Planning Session Discussion Items

• Report on proposed revisions to the City Council’s annexation policy (Policy PI-6): The report was accepted without discussion.
• Industrial Revenue Bond and Property Tax Abatement Policy Review: Economic Development Analyst Kaili Stowers presented. Councilmembers discussed wage thresholds (110% of Johnson County per capita salary, currently $56,000 at 100% based on 2022 data). Councilmember Vakas asked if $62,000 is a living wage. Councilmember Schoonover expressed concern about average wages being skewed by management salaries. Councilmember Felter worried about raising the bar too high and driving growth to other municipalities. Mayor Bacon noted competitiveness concerns. Council also discussed adding data centers to targeted industries; staff will report back. Councilmember Vogt suggested raising the commercial assessed valuation target to 40%.
• Discussion of the 2025 State Legislative Program: External Affairs Director Tim Danneberg presented. Councilmember Vakas asked about affordable housing; Danneberg provided clarifying answers.
• Presentation on the City of Olathe Emergency Operations Plan 2024-2028: Fire Chief Jeff DeGraffenreid presented. Councilmember Vakas asked about mutual aid with neighboring municipalities; Chief DeGraffenreid explained the level of assistance available.
• Fire Department Focus Area Update: Chief DeGraffenreid presented. Mayor Bacon asked about prepayment for fire trucks given 50-month delivery times; Chief DeGraffenreid explained funding mechanisms.

General Issues and Concerns of Citizens

• Two residents spoke: Jose Figuerua (electric scooters) and Gabriel Brown (homelessness).

Key Outcomes

• All resolutions and ordinances were approved unanimously (6-0) with Councilmember Gilmore absent.
• The public hearings for the three IRB projects were closed and resolutions approved.
• The consent agenda was approved in its entirety.
• The council discussed but did not vote on the IRB policy review, state legislative program, emergency operations plan, or fire department update; these were informational sessions.
• The meeting adjourned at 9:13 PM.