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Title:
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Public hearing and consideration of Ordinance No. 25-30 regarding the creation of a community improvement district and the levy of a community improvement district sales tax pursuant to K.S.A. 12-6a26 et seq. (the Olathe Station North CID).
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FOCUS AREA: Legal; Economy
STAFF CONTACT: Ron Shaver; Jamie Robichaud
SUBJECT: Public hearing and ordinance creating the Olathe Station North Community Improvement District.
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TITLE:
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Public hearing and consideration of Ordinance No. 25-30 regarding the creation of a community improvement district and the levy of a community improvement district sales tax pursuant to K.S.A. 12-6a26 et seq. (the Olathe Station North CID).
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SUMMARY:
On August 1, 2017, the City Council adopted Ordinance No. 17-39, establishing a Community Improvement District (CID) over the western portion of the Olathe Station shopping center (north of the AMC theater) (the Olathe Station CID). Beginning on January 1, 2018, an additional 1% sales tax has been levied on retail sales within the Olathe Station CID. Proceeds of that CID sales tax have gone to pay for fa?ade improvements to buildings, transportation and other public safety enhancements, new signage, lighting and landscaping within the CID.
On July 25, 2025, the City received a Community Improvement District (CID) petition (Attachment A) from Olathe Station North, LLC for creation of a CID over the northern portion of the Olathe Station shopping center between Strang Line Road and Black Bob Road, south of 119th Street (excluding the Target building). The Petition was submitted pursuant to the Kansas Community Improvement District Act (K.S.A. 12-6a26 et seq.) and the City's CID Policy. The petition proposes the levy of a 1% CID sales tax for up to 22 years.
The general nature of the proposed project is redevelopment and improvement of the property noted above as a first-class shopping center, including some or all of the following:
1. New Pad Sites;
2. Building fa?ade renovation;
3. New and redeveloped signage;
4. Public gathering areas with art displays;
5. Public safety improvements to the ingress/egress of Blackbob;
6. Enhanced lighting and landscaping; and
related soft costs of the Projects, and the City's administrative costs in establishing and maintaining the CID, and other items collectively permitted to be financed within the CID under the Act.
The petitioner anticipates commencing work in 2025 and being completed in 2026.
On August 5, 2025, the City Council adopted resolution No. 25-1067 calling and providing for the notice of a public hearing to consider creation of the CID on September 2, 2025.
The Ordinance (Attachment B) authorizes creation of the CID and approves the development agreement for the project (Attachment C).
If approved, the CID sales tax would begin being levied the calendar quarter after notice is provided to the Kansas Department of Revenue.
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FINANCIAL IMPACT:
Total investment in the project is anticipated to be $48,996,500, of which $7,575,000 would be eligible for reimbursement from CID proceeds per the petition.
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ACTION NEEDED:
Approve Ordinance No. 25-30 regarding the creation of a community improvement district and the levy of a community improvement district sales tax pursuant to K.S.A. 12-6a26 et seq. (the Olathe Station North CID).
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ATTACHMENT(S):
A. CID Petition
B. CID Ordinance
C. Development Agreement