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Governing body approves developer agreement, RHID application and CID hearing notice for Lawrence Bay amid council concern
Summary
The Topeka governing body on March 18 approved a developer agreement, forwarded a reinvestment housing incentive district application to the Kansas Department of Commerce and set a public hearing for a community improvement district tied to portions of Lawrence Bay.
The Topeka governing body on March 18 approved a developer agreement with L.B. Lots LLC, authorized submission of a reinvestment housing incentive district (RHID) application to the Kansas Department of Commerce and set a public hearing on a proposed community improvement district (CID) tied to parts of the Lawrence Bay subdivision.
Supporters said the negotiated deal will deliver immediate funds to retire past-due special assessments on 16 lots and restructure remaining assessment debt to make monthly payments more comparable to nearby properties. Deputy City Manager Braxton Copley told the council the developer agreed to place funds in escrow — $2.25 per square foot for the 16 lots — with about $423,000 earmarked to pay outstanding past-due specials in full and roughly $102,000 to reduce principal on future specials that would be bonded and spread over 20 years.
The measure matters because many lots in Lawrence Bay have long-standing unpaid taxes and special assessments tied to development before the 2008 downturn, and several council members said the city otherwise would have lost collections at prior tax sales. City staff and the developer framed the agreement as recovering money for the city that would otherwise have been forfeited in a tax-sale process.
Debate focused on whether the package gives too much benefit to the developer and whether the city has adequately pursued other collection remedies. Council members asked for fuller public disclosure of the total unpaid taxes and specials for all lots owned by entities tied to the developer; staff said that information was provided to council before the meeting. Several council members — including Councilmember Valdivia Acala and Councilmember Banks — said they were frustrated by delays in receiving related documents and by the complexity of the developer's ownership structure. Public speakers also criticized the deal and urged the city to use foreclosure and land bank tools instead.
The council approved the developer agreement by a roll-call vote that produced seven yes votes and the motion carried. The RHID application was forwarded to the Kansas Department of Commerce by the same margin; council later adopted a resolution setting the CID hearing and notice for the Lawrence Bay Community Improvement District, which also carried after roll-call votes (the CID hearing resolution carried with six yes votes per the city record). Councilmembers who opposed the motions cited concerns about equity, prior city and county handling of assessments, and the appearance of preferential treatment for a single developer.
City staff said the RHID/CID steps are iterative: Commerce reviews the RHID application, the state conducts its review, and, if Commerce approves, the city will perform a financial analysis and a “but-for” test required by statute before final RHID approval. If the developer deal is not approved, staff said the 16 lots would be conveyed to the city's land bank under prior resolution terms.
The council directed staff to proceed with the procedural steps outlined in the agreements and to continue providing requested data to the public and council members.
Votes at a glance: developer agreement — approved (7 yes); RHID application forwarded to Kansas Department of Commerce — approved (7 yes); CID hearing resolution — approved (6 yes).
