Olathe City Council Meeting: August 18, 2026 - IRB Approvals, Starfish SUP, and Budget Overview

The Olathe City Council met on Tuesday, August 18, 2026, at 7:00 PM at City Hall. The meeting included public hearings on industrial revenue bonds (IRB) for three manufacturing facilities, approval of a special use permit for the Starfish Project Foundation after extensive debate and a protest petition, adoption of a new ordinance concerning interference with first responders (the HALO law), and a presentation on the proposed 2027 budgets and capital improvement plans. Key votes included a 6-1 approval of the Starfish special use permit with additional stipulations and a 5-2 passage of the HALO ordinance.

Consent Calendar

• Approved 13 routine items (A through M) as presented on a single motion, passed 7-0.

Public Comments & Testimony

• Two individuals signed up to speak during General Issues and Concerns of Citizens, but neither was present when called.

Discussion Items

• Industrial Revenue Bonds (IRB) for Manufacturing Facilities (Items 3A, 3B, 3C):
  • Resolution 26-1070 (Master Resolution) approved 7-0 for a project of three buildings totaling 1.5 million square feet on 118.08 acres at 167th Street and Lone Elm Road.
  • Resolutions 26-1071 (Building 2, 500,000 sq ft on 40.23 acres) and 26-1072 (Building 1, 500,000 sq ft on 37.63 acres) were each approved 7-0 after closed public hearings with no speakers.
• New Business A – Ordinance 26-42 (Char Bar IRB): Authorized issuance of up to $10,521,660 in taxable IRBs for CB Olathe Holdings LLC to construct a 26,271-square-foot commercial facility (Char Bar) at 200 West Santa Fe. Passed 7-0.
• New Business B – Special Use Permit for Starfish Project Foundation (Resolution 26-1075):
  • The applicant sought a special use permit for community food and personal support services at a former Aldi location (southwest of 135th and Brome). The Planning Commission had recommended denial 5-3. A valid protest petition (42% of eligible land area) raised the required approval vote to six.
  • Staff (Planning and Development Manager Kim Hollingsworth, Chief Development Engineer Charlie Love, Police Chief Mike Butod) presented data on traffic, public safety, and calls for service at prior Starfish locations. They recommended approval with stipulations including a two-year permit and a final site development plan.
  • Applicant LaVerne Fields (board vice president) emphasized the need for the facility, the building's suitability with 130+ parking spaces and a loading dock, and commitment to being a good neighbor. He noted that less than 5% of clients are unhoused.
  • Council debated concerns about neighborhood character, traffic, and security. Councilmember Bacchus moved to approve staff recommendation plus two additional stipulations (a site management/security plan and a six-month compliance report). Councilmember Felter offered friendly amendments requiring a complaint and incident log, exterior lighting/security cameras, a traffic/parking management plan, a local manager, and a good neighbor committee. These were accepted.
  • Vote: 6-1 in favor (Mayor Bacon dissenting, citing potential negative impact on nearby homeowners).
• New Business C – Ordinance 26-43 (HALO Law) – Interference with First Responders:
  • This ordinance added a new section to the Olathe Public Offense Code, mirroring state law, making it an offense to knowingly approach or remain within 25 feet of a first responder after being warned, under specified circumstances.
  • Council debated First Amendment concerns, with Councilmembers Schoonover and Denalt opposed, arguing it was unnecessary and potentially unconstitutional. Supporters (including Chief Butod and Deputy Attorney Amanda Stanley) noted it provides local control and allows citation instead of arrest. Passed 5-2 (Schoonover and Denalt dissenting).
• New Business D – Ordinance 26-44 (Traffic Ordinance): Annual update to the traffic code. Passed 7-0.
• Planning Session – 2027 Budget and Capital Improvement Plan (CIP) Overview:
  • Budget Manager Clara Bernard presented the proposed 2027 budgets for the Recreation Fund (including a $1.5 million general fund transfer), Street Maintenance Sales Tax Fund (projecting $18.1 million in transfers, with a target OCI of 80), Park Sales Tax Fund ($32.5 million five-year CIP, 85% from sales tax), and Tourism and Development Fund (proposed increase of $200,000 for chamber contracts).
  • Key projects highlighted: Black Bob Bay renovation ($1.5M), Olathe Girls Softball Complex restroom/concession ($1M), Prairie Center Park Phase II ($2.9M in 2028), Cedar Creek Trail ($2.5M), Mill Creek Pool and Splash Pad ($4.5M, final $500K in 2027), and a new dog park (four potential sites under consideration).
  • Chamber CEO Tim McKee noted a proposed addition of a downtown-focused staff member and highlighted recent successes including FIFA watch party attendance of 6,500 and the "Goal Olathe" logo award.

Key Outcomes

• Resolution 26-1070 (Master IRB): Passed 7-0.
• Resolution 26-1071 (Building 2 IRB): Passed 7-0.
• Resolution 26-1072 (Building 1 IRB): Passed 7-0.
• Ordinance 26-42 (Char Bar IRB): Passed 7-0.
• Resolution 26-1075 (Starfish SUP): Approved 6-1 with additional stipulations (site management/security plan, six-month report, complaint log, lighting, traffic plan, local manager, good neighbor committee).
• Ordinance 26-43 (HALO Law): Passed 5-2 (Councilmembers Schoonover and Denalt dissenting).
• Ordinance 26-44 (Traffic Code): Passed 7-0.
• Budget and CIP: Presentation given; public hearing scheduled for September 8, 2026, at 5:30 PM, with adoption set for September 15, 2026.
• Next Meeting: September 8, 2026, 5:30 PM for revenue neutral rate and budget public hearing.