Focus Area: Legal; Infrastructure
Staff Contact: Ron Shaver; Nate Baldwin
Subject: Ordinance authorizing payment of a court-appointed appraiser’s award and fees for the Santa Fe, Ridgeview to Mur Len Improvements Project [PN 3-C-025-18] in City of Olathe, Kansas v. Celebrate Holdings Olathe, et al.
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Consideration of Ordinance No. 25-24 authorizing payment by the City Treasurer of an eminent domain award and court-appointed appraiser’s fees for constructing and maintaining the Santa Fe, Ridgeview to Mur Len Improvements Project [PN 3-C-025-18], in the matter of City of Olathe, Kansas vs. Celebrate Holdings Olathe, LLC, et al. (JO-2025-CV-000959).
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Summary:
Project No. 3-C-025-18 was authorized by Resolution No. 24-1014 on April 2, 2024. This project will include the work along Santa Fe, a new interchange at I-35 and auxiliary lanes from Santa Fe to 119th Street. The estimate total cost for this project $199,277,737. This includes preliminary and final design, utility relocation, survey, staff time, land acquisition, construction, construction engineering and construction inspection.
On November 19, 2024, the City Council adopted Resolution No. 24-1064, authorizing a survey of land necessary to be acquired for the project. On April 1, 2025, the City Council adopted Ordinance No. 25-09, approving the survey and authorizing the filing of a petition for eminent domain in the Johnson County, Kansas District Court.
On April 16, 2025, Orrick & Erskine, L.L.P. filed the petition for eminent domain in the Johnson County, Kansas District Court on behalf of the City of Olathe involving 5 total takings (Tract 16 - Celebrate Dental, Tract 17 - Cirilla’s, Tract 20 - Pegasus Realty, Tract 46 - N & C Group, Tract 74 - Templo Christiano Aposento Alto, Tract 79 - Horochowski). On May 28, 2025, the Johnson County District Court approved the city’s petition conferring the City the power of eminent domain for the Project involving the tracts included with this matter. The Court appointed Rick Merker, John Moser, and Tom Scaletty as Court-appointed appraisers. The appraisers’ hearings were held on July 9 & 11, 2025.
Prior to the hearing, the City settled within City Council authorization on the acquisition of Tract 74 (Tempolo Christiano Aposento Alto).
On July 22, 2025, the Court-appointed appraisers filed their report with the District Court for Tracts 16 (1828 E. Santa Fe Street - Celebrate Dental), 17 (1848 E. Santa Fe Street - Cirilla’s), 20 (1948 E. Santa Fe Street - Pegasus Realty), 46 (2003 E. Santa Fe Street - N & C Group) and 79 (207 N. Lindenwood Drive - Horochowski. The appraisers awarded $2,700,000.00 for Tract 16, $930,000.00 for Tract 17, $1,285,000.00 for Tract 20, $540,000.00 for Tract 46, $220,000.00 for Tract 79 and $34,912.50 for the court-appointed appraisers' fees ($5,709,912.50 total).
Staff recommends accepting the award and fees and that the governing body approve the ordinance (Attachment A).
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Financial Impact:
Funding for the Project includes:
GO Bonds $40,000,000
KDOT (State) $65,211,939
KDOT (Federal) $94,065,799
Total $199,277,738
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Action Needed:
Approve Ordinance No. 25-24 authorizing payment by the City Treasurer of an eminent domain award and court-appointed appraiser’s fees for constructing and maintaining the Santa Fe, Ridgeview to Mur Len Improvements Project [PN 3-C-025-18], in the matter of City of Olathe, Kansas vs. Celebrate Holdings Olathe, LLC, et al. (JO-2025-CV-000959).
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Attachment(s):
A: Appraiser’s Award Ordinance