Council delays decisions on two Old Town retail leases after questions on taxes, parking and lease structure

The Wichita City Council on Tuesday voted unanimously to defer action on proposed amendments to leases for two city-owned retail spaces in Old Town at 307–309 and 303 North Mead, citing unanswered questions about property taxes, parking revenues, lease structure and whether the city should move from modified gross leases toward triple-net arrangements.

Council requested staff return with detailed comparables, a history of property-tax payments on the properties, the status of about $75,000 in parking-related receipts the city has not yet transferred to the parking fund and options for converting to a triple-net lease. The council set a date-certain return for April 1.

Councilmembers pressed Real Estate Administrator John Philbrook and city staff for clearer accounting after reports that the properties had paid roughly $75,000 in parking receipts since 2018 that had not been shifted into the parking fund. “Knowing that the parking fund is so short on money, I just am curious,” Councilmember Ballard said, asking whether the receipts could be transferred immediately. City staff confirmed the monies are recorded as receivable and said an internal transfer could be made.

Council members also questioned the lease form’s lack of annual escalators and whether shifting to a triple-net framework (tenant pays property taxes, insurance and common-area maintenance) would be appropriate. Vice Mayor Johnston and others said triple-net terms could insulate taxpayers from rising commercial costs; staff said many of the leases were inherited from the original Old Town master-lease structure and converting would require drafting a new lease form and additional negotiation with tenants and the property manager, Landmark Commercial Real Estate.

Speakers in public comment urged council scrutiny. Twila Purity, a resident who reviewed the lease, urged annual escalators and clearer rules on insurance and common-area maintenance. Former councilmember Doug Ballard raised concern about late tax payments and late fees. City staff said property taxes are paid from rent receipts but acknowledged several tax bills remain unpaid for 2024 and that the city pays by halves in December and May.

Mayor Wu moved that staff return to the negotiating table and defer action; the council later set April 1 as the date-certain return. The motion carried 7–0.

The deferral will allow staff to collect market comparables, provide a full accounting of property-tax and parking receipts tied to Old Town properties, and draft options for lease structures before the council votes again.

Councilmembers said they expect staff to share the requested materials with the full council in advance of the April meeting so members and the public can review them.