City of Olathe header
File #: G25-4839   
Type: Public Hearing Status: Passed
File created: 12/30/2024 In control: City Council
On agenda: 1/7/2025 Final action: 1/7/2025
Title: Public hearing and consideration of Ordinance No. 25-01 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. (Pizza 51 Project).
Staff Contact: Ron Shaver
Attachments: 1. A: Pizza 51 South CID Petition, 2. B: Pizza 51 South Development Agreement, 3. C: Pizza 51 South CID Ordinance

Focus Area: Legal

Staff Contact: Ron Shaver

Subject: Public hearing and Ordinance creating the Pizza 51 South Community Improvement District.

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Public hearing and consideration of Ordinance No. 25-01 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. (Pizza 51 Project). 

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Summary:

On November 14, 2024, the City received a petition for creation of the Pizza 51 South Community Improvement District (Attachment A).  The petition was submitted pursuant to K.S.A. 12-6a26 et seq. (the “Act”) and the City’s CID Policy.  The CID Petition is submitted in conjunction with a development agreement dated June 26, 2024 (Attachment B), for construction of a Pizza 51 South restaurant location at 200 S. Kansas Avenue.  The petition proposes that a 2% CID sales tax be levied within the CID. 

 

The proposed CID includes the following development:

 

construction and reconstruction of the approximately 1,672 square foot existing structure and addition of approximately 1,100 square feet for purposes of a family-friendly pizza establishment known as “Pizza 51 South” and other facilities or improvements associated with or incidental to such use generally located within and/or contiguous to any portion of the District; related soft costs of the Project; and the City’s administrative costs in establishing and maintaining the District, and other items collectively permitted to be financed within the District under the Act.

 

On December 3, 2024, the City Council adopted Resolution No. 24-1071, directing that a public hearing on the proposed CID be held tonight, declaring its intent to impose the CID sales tax, and requiring the City Clerk to provide for notice of the public hearing as set forth in the CID Act.

 

The Ordinance (Attachment C) creates the Pizza 51 South CID, authorizes the Project as described above, and authorizes the imposition of the CID sales tax within the CID beginning July 1, 2025 for up to 22 years.

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Financial Impact:

The estimated cost of the Pizza 51 South project is $736,173 that may be paid from the proceeds of the proposed CID sales tax.

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Action Needed:

Approve Ordinance No. 25-01 regarding the establishment of the Pizza 51 South Community Improvement District pursuant to K.S.A. 12-6a26 et seq.

 

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Attachment(s):

A: Pizza 51 South CID Petition

B: Pizza 51 South Development Agreement

C: Pizza 51 South CID Ordinance