Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Ordinance levying special assessments for the Hedge Lane, 171st Street to 167th Street project.
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title:
title
Consideration of Ordinance No. 26-13 levying special assessments on certain property to pay the costs of internal improvements in the City of Olathe, Kansas, as previously authorized by Resolution No. 22-1073 (Hedge Lane, 171st Street to 167th Street, PN 3-B-085-22); and providing for the collection of such special assessments.
Body
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Summary:
On October 4, 2022, the governing body approved Resolution No. 22-1073 (Attachment A), determining the advisability of improving Hedge Lane from 171st Street to 167th Street (PN 3-B-085-22), approving the estimated or probable cost of the improvements, and establishing the extent of the improvement district to be assessed for the cost of the improvements. The improvements were authorized to be assessed equally per square foot against all property within the Improvement District and paid 100% by the owners within the district.
The Ordinance (Attachment B) authorizes the levy of special assessments against certain property within the Improvement District. In accordance with an Annexation Agreement dated April 20, 2021 with the owner of the property subject to the assessments (now owned by Aspen Industrial Land Fund I, LLC), the ordinance also authorizes and provides for a delay in the commence of payment of special assessments in the amount of $735,892.13 until the earlier of ten (10) years from the date the ordinance takes effect or such time the property (or a portion thereof) is platted or developed (the “Deferral Period”). Assessments shall be due and payable in ten (10) annual installments beginning at the expiration of the Deferral Period relating to the property (or a portion thereof). Aspen has signed a waiver of assessment proceedings and consent to the assessments (Attachment C).
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Financial Impact:
Total project costs were $3,990,346.53. $2,944,416 of the project was reimbursed from a BASE Grant received by the City, and $310,038.40 was reimbursed by Heartland Coca-Cola pursuant to a Turn Lane Reimbursement Agreement dated January 16, 2024. The balance of the project cost will be financed by the City’s issuance of general obligation bonds. The bonds will be issued in the same par amount as the special assessments to be levied against the Aspen property.
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Action Needed:
Approve Ordinance No. 26-13 levying special assessments on certain property to pay the costs of internal improvements in the City of Olathe, Kansas, as previously authorized by Resolution No. 22-1073 (Hedge Lane, 171st Street to 167th Street, PN 3-B-085-22); and providing for the collection of such special assessments.
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Attachment(s):
A: Resolution No. 22-1073
B: Assessment Ordinance
C: Aspen waiver of assessment proceedings