Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Consideration of a First Amendment to the Real Estate Contract between the City of Olathe, Kansas and CB Olathe Holdings, LLC.
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Consideration of a First Amendment to the Real Estate Contract between the City of Olathe, Kansas and CB Olathe Holdings, LLC.
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Summary:
On April 14, 2025, the City entered into a real estate contract with CB Olathe Holdings, LLC (Attachment A) setting forth the terms under which the City would convey certain property to the buyer at the northwest corner of Santa Fe Street and Kansas Avenue. The buyer is proposing to develop the property and the adjacent property they already own for purposes of a Char Bar restaurant.
The proposed amendments to the real estate contract (as set forth in the 1st Amendment to Real Estate Contract [Attachment B]) are summarized as follows:
1) The City would contract for asbestos remediation work in the existing building on the property, and that such work be performed prior to Buyer commencing construction on their project.
2) The Buyer would be required to commence construction (including obtaining a building permit, engaging a contractor(s) for the full scope of work of the Project, and commencing a continuous program of construction/renovation of the building on the Property) by April 1, 2026.
Also on tonight’s agenda is a public hearing and an ordinance creating a Community Improvement District over the entire project site. The City Council will conduct a public hearing and consider adopting a resolution of intent to issue industrial revenue bonds to finance the project at a later date. Both the CID and IRB actions will be made pursuant to the Development Agreement dated May 19, 2025 (Attachment C).
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Financial Impact:
The Developer’s investment would result in increased tax revenues to the City.
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Action Needed:
Approve the First Amendment to the Real Estate Contract between the City of Olathe, Kansas and CB Olathe Holdings, LLC.
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Attachment(s):
A: Real Estate Contract
B: First Amendment to Real Estate Contract
C: Development Agreement