City Council

City of Olathe City Council 100 E. Santa Fe | Council Chamber Tuesday | August 3, 2021 | 7:00 PM 1. CALL TO ORDER Present: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson 2. BEGIN TELEVISED SESSION – 7:00 P. M. 3. PLEDGE OF ALLEGIANCE 4. PUBLIC HEARINGS A. Consideration of a Public Hearing on a request by BT 175 Phase I and BT 175 Future Phase, LLC for issuance of industrial revenue bonds and tax phase in for the development and construction of a 1,123,470 sq. ft. spec industrial warehouse facility under the Master Resolution for the 175th Commerce Centre West business park, located at the northwest corner of 175th Street and Hedge Lane. Economy Director, Dianna Wright, gave a short presentation regarding this project. Curtis Holland with Polsinelli and Ken Block with Block Real Estate Services, also presented information to the Council. Councilmember Brownlee asked about potential tenants. Mr. Block said they are working with a group to bring in tenants. Ms. Brownlee asked what the average wage would be, and Mr. Block said between the high 40's to high 60's. Ms. Brownlee asked if this was the average wage in Kansas and Mr. Block said he didn't know. Ms. Brownlee said she didn't think we should bring in jobs that were lower than the State average and Mr. Block said many times office jobs followed the warehouse once a company was established. Councilmember Campbell thanked Mr. Block for his presentation and asked for clarification regarding appraised value. Mr. Block said he believed using the appraised value from the County was inequitable and asked the Council to set a fixed rate to provide consistency. Page 1 of 9 City Council Meeting Minutes August 3, 2021 Councilmember McCoy said he believed this project would create jobs and opportunities. Councilmember Vogt asked again about the fixed rate PILOT and Mr. Block said at this time the City was at a different number than what he was proposing. He said the price per square foot should be used to set a realistic value. He said he believed there could be a compromise. Ms. Vogt asked what Pac Sun was paying and Mr. Block said $1.00 for 400,000 square feet. Ms. Vogt said Olathe is the place to be and the City has a lot to offer. She said it isn't just the tax abatements that bring growth to the City but the community itself. Ms. Vogt asked what the current vacancy is on Class A sites and Mr. Block said about 4%. Councilmember Brownlee asked who was at fault for the frustration with the assessed valuations and Mr. Block said even though it was the County, the City should be in control of what the incentive is and the current policy makes the City responsible. Councilmember Gilmore said the concept of the fixed PILOT was new to him. He said since this was something different from past incentives he didn't think it was something he was prepared to do on the fly. Mr. Block said he was asking the Council to approve what was on the agenda and then encourage staff to work with them to come to an agreement that would be satisfactory to everyone. Councilmember Vogt asked what would happen if staff couldn't come to an agreement. She said he was asking them to set policy which would require research and investigation. Mr. Block said he was not asking for anything different and past PILOTs had been negotiated at the staff level. Mr. Block said he was wanting to work toward a compromise and Ms. Vogt asked what would happen if they could not. Mr. Block said he didn't want to talk about that because he believed it would work. Ms. Vogt asked if it would come back to the Council once an agreement had been negotiated and City Manager, Michael Wilkes, said it would. Page 2 of 9 City Council Meeting Minutes August 3, 2021 Mayor Bacon asked more questions about the assessed valuation. He said he was ok with a PILOT, but the tricky part is the evaluation. Mr. Block said other cities were getting more competitive. Mayor Bacon said the proposal was $.30 lower than the current policy and the Council would have to wrestle with that. Mr. Block pointed out that this is a different product type. Mayor Bacon said there was a lot to consider. He asked if Mr. Block was ok with moving forward and Mr. Block said yes. Mayor Bacon said the council is always concerned with development and would be looking at the policy. Councilmember Campbell said he knew they had done PILOTs before but wondered if there had ever been any structured like this one. Economy Director, Dianna Wright, said they have done PILOTs that look similar. She reminded the Council that the abatement would also affect the County and the School District and depending on the final agreement, there might be a need for an additional public hearing. She also said they would run another cost benefit analysis. Councilmember Gilmore asked about the possibility of starting with an agreed amount with an increase each year. Ms. Wright said most do have an increase each year that is outlined in the performance agreement. Councilmember Campbell said he was ready to make a motion and stick to just the agenda items. He said he wants to stay competitive and believed looking at the policy was great advice but not ready to go beyond 50%. He said he thought October was a great time to evaluate the policies and wanted to have good data to look at. He asked if what was on the agenda was to approve a 50% abatement and Ms. Wright said yes. Councilmember Brownlee pointed out that neighbors had expressed concerns and she did not want to change policy because they were depending on the Council to remain faithful to that policy. Councilmember Vogt thanked Mr. Block for being at the meeting and Page 3 of 9 City Council Meeting Minutes August 3, 2021 said until the policy was looked at she wanted to stay at the 50% and she supported the items before them on the agenda. Mayor Bacon clarified that the agreements would expire in 10 years. Motion by Campbell, seconded by Vogt, to close the public hearing. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson B. Consideration of Resolution No. 21-1054 establishing a Master Resolution expressing intent to issue Industrial Bonds in one or more services and tax abatement on behalf of BT 175 Phase I and BT 175 Future Phase, LLC for the development and construction of six buildings in the 175th Commerce Centre West project, totaling approximately 3,600,000 square feet of industrial/warehouse flex space (northwest corner of 175th Street and Hedge Lane). Motion by Campbell, seconded by Vogt, to approve Resolution No. 21-1054. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson C. Consideration Resolution No. 21-1055 expressing intent to issue industrial revenue bonds and tax phase in on behalf of BT 175 Phase I and BT 175 Future Phase, LLC for the development and construction of a 1,123,470 sq. ft. spec industrial warehouse facility under the Master Resolution for the 175th Commerce Centre West business park, located at the northwest corner of 175th Street and Hedge Lane. Motion by Campbell, seconded by Vogt, to approve Resolution No. 21-1055. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson D. Consideration of Master Resolution No. 21-1056 on a request by BTM Land, LLC for issuance of industrial revenue bonds and tax phase in for the future development and construction of four building in the 175th Commerce Centre East project totaling approximately 2,624,586 sq. ft. of industrial/warehouse/flex office facilities (northeast corner of 175th Street and Hedge Lane). Motion by Campbell, seconded by Vogt, to approve Resolution No. 21-1056. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Page 4 of 9 City Council Meeting Minutes August 3, 2021 Absent: Mickelson 5. CONSENT AGENDA Mayor Bacon noted that staff had asked for item O to be removed and considered at a later date. Councilmember Gilmore asked for item A to be removed and considered separately. Motion by Campbell, seconded by Vogt to approve the Consent Agenda with the exception of items A and O. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson A. Consideration of approval of the City Council meeting minutes of July 20, 2021. Councilmember Gilmore asked for item A to be removed and considered separately because he was requesting some modifications to the minutes from the July 20, 2021 meeting. He asked that the item be tabled and considered at the next council meeting. Motion by Campbell seconded by Vogt, to table item A. Motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson B. Consideration of a new drinking establishment application for Black Agave Lounge Tequila Ortiz LLC and renewal drinking establishment applications for Rukma LLC, d/b/a Rajmahal Indian Restaurant; Apple Central KC LLC, d/b/a Applebee’s; Lin & Lu Group LLC, d/b/a Sake Restaurant. Approved C. Consideration of a Real Estate Contract for the purchase of 730 N. Chestnut; authorizing the Mayor to sign the Real Estate Contracts, and further authorizing the City Attorney or designee to execute the closing documents. Approved D. Request for the acceptance of the dedication of land for public easements and public street right-of-way for a final plat of Courts at Stonebridge, Third Plat (FP21-0030) containing 3 tracts on 9.79 acres; located in the vicinity of 168th Terrace and Mur-Len Road. Planning Commission approved this plat 9-0. Approved Page 5 of 9 City Council Meeting Minutes August 3, 2021 E. Request for the acceptance of the dedication of land for public easements and public street right-of-way for a final plat of Lakeshore Meadows, 3rd Plat (FP21-0031) containing 26 lots and five (5) tracts on 11.06 acres; located along the north side of 143rd Street at Houston Street. Planning Commission approved this plat 9-0. Approved F. Request for the acceptance of the dedication of land for public easements and public street right-of-way for a final plat of Stonebridge Manor, Third Plat (FP21-0032) containing thirty (30) lots and three (3) tracts on approximately 8.0 acres; located near Mur-Len Road and 169th Place. Planning Commission approved the plat 9 to 0. Approved G. Request for the acceptance of the dedication of land for public easements and public street right-of-way for a final plat of Olathe Health Quivira Campus (FP21-0033), containing one (1) lot and two (2) tracts on approximately 10.3 acres; located at the northwest corner of 151st Street and Quivira Road. Planning Commission approved the plat 9 to 0. Approved H. Consideration of 2021-2023 Agreement with USD 233 providing for School Resource Officers. Approved I. Consideration of 2021-2023 Agreement with USD 233 providing for a Police Resource Instructor in support of the 21st Century Public Safety program at Olathe West High School. Approved J. Consideration of updating an agreement with the Unified School District No. 233 to provide a Fire Resource Instructor in support of the 21st Century Public Safety program at Olathe West High School. Approved K. Consideration of Consent Calendar. Approved L. Consideration of bid and award of project to Crossland Heavy Contractors for construction of repairs to the Water Treatment Plant filter effluent pipe. Approved M. Consideration of award of contract to Crossland Heavy Contractors for the rehabilitation of the 111th St. Lift Station Project, PN 1-L-002-20. Approved N. Consideration of the renewal of the property lease agreement for Page 6 of 9 City Council Meeting Minutes August 3, 2021 storage of traffic operations equipment at 691 N. Lindenwood Drive. Approved O. Consideration of renewal of contract with Constellation NewEnergy - Gas Division, LLC for natural gas. Withdrawn at the request of staff. P. Consideration of renewal of contract with Mohawk for citywide carpet and flooring replacement. Approved Q. Consideration of renewal of contract with XentIT for purchasing of Trend Micro licenses for the Information Technology Department. Approved R. Consideration of renewal of contract with Dell Marketing L.P. for computer equipment. Approved S. Consideration of authorization and execution of renewal purchase agreement between Cartegraph Systems, LLC and the City of Olathe to maintain Cartegraph Operations Management System (OMS)© software as a service. Approved 6. NEW BUSINESS A. Consideration of Ordinance No. 21-35 regarding the PlanOlathe Comprehensive Plan Amendment of the Future Land Use Map (CPA21-0001). Planning Commission recommends approval 7 to 0. Motion by Campbell, seconded by Vogt, to approve Ordinance No. 21-35. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson B. Consideration of Ordinance No. 21-36 levying assessments to collect city expenditures for weed mowing and debris removal. Motion by Campbell, seconded by Vogt, to approve Ordinance No. 21-36. The motion carried with the following vote: Yes: Brownlee, Campbell, McCoy, Bacon, Vogt, and Gilmore Absent: Mickelson 7. NEW CITY COUNCIL BUSINESS Mayor Bacon announced that the City would be hosting the second Lake Olathe Triathlon on September 18th and encouraged anyone who was interested to Page 7 of 9 City Council Meeting Minutes August 3, 2021 register to participate. 8. END OF TELEVISED SESSION 9. GENERAL ISSUES AND CONCERNS OF CITIZENS None 10. CONVENE FOR PLANNING SESSION Reports are prepared for informational purposes and will be accepted as presented. There will be no separate discussion unless a Councilmember requests that a report be removed and considered separately. A. REPORTS 1. Report on selection of Workday as the Human Resource and Financial Management System replacement. Report accepted. B. DISCUSSION ITEMS 1. General Overview of the proposed 2022 Recreation Fund, Park Sales Tax Fund and Street Maintenance Sales Tax Fund budgets and 2022-2026 Capital Improvements Plan (CIP) for the Park Sales Tax Fund and Street Maintenance Sales Tax Fund. Jarrod Stewart, Budget Analyst, gave a presentation regarding the proposed budget. Councilmember Vogt, asked about the timeline for the Park Master Plan. City Engineer, Nate Baldwin, said they would have a RFQ sometime late this fall and the goal would be to have the master plan ready by the end of 2022. Councilmember McCoy asked if the 2022 allocation for trails was just the City or if the County would be collaborating with the City on these projects and contributing to the cost of construction. Tod Hueser, Parks Project Manager, said the allocation in the budget would fund a portion of the trail and said the County would be contributing once the project was completed. Mayor Bacon asked about a ropes course at Lake Olathe and Mr. Hueser said it was still in the conceptual stage. Mayor Page 8 of 9 City Council Meeting Minutes August 3, 2021 Bacon also asked about other things that might be considered to increase revenue at the lake and Mr. Hueser said they were considering renovating the stone house to be used as a small gathering space. Councilmember McCoy asked if any thought had been given to cabins to be available for renting. Mr. Hueser said the houses that are currently there would not be conducive to renting out as cabins. Mr. McCoy asked about the possibility of building a gazebo and Mr. Hueser said that was part of the future plans. Mr. McCoy asked if Eagle's Landing was rented often and Mr. Hueser said it was rented every weekend. Councilmember McCoy asked about the number of lane miles within the City. Infrastructure Deputy Director, Beth Wright, said there are 1300. Mr. McCoy asked if they were going to be able to touch all 1300 and Ms. Wright said by the end of the current street sales tax they would have treated approximately 70% of the roads in Olathe. She said there would be an additional report in January. Mayor Bacon said he didn't think there was a need for any additional budget workshops. 11. ADDITIONAL ITEMS Mayor Bacon invited everyone to attend the ground breaking event for the downtown library which has been scheduled for September 18th at 10:00 AM. 12. ADJOURNMENT Meeting was adjourned at 8:44 PM. Brenda D. Long City Clerk Page 9 of 9