Topeka council tables Lawrence Bay RHID after heated public comment and legal concerns

The Topeka City Council on Tuesday voted to table consideration of a Reinvestment Housing Incentive District application for the Lawrence Bay subdivision, citing legal risks, unpaid taxes and concerns about proposed concessions to the developer.

Braxton Copley, deputy city manager, told the council the applicant, L.B. Lots LLC, seeks to establish an additional RHID covering roughly 105 lots and that the developer—s proposed deal terms would cover past-due real-estate taxes and pay a discounted present value of future specials while asking the city to convey land around a pond that includes a dam and a public sidewalk.

That conveyance, Councilman Neil Dobler said, raises immediate concerns because the city holds tax-exempt bonds tied to improvements at the pond. "I can't support this," Dobler said during debate, adding he was unwilling to convey the property to a private entity or forgive past-due specials on the west lots without a far more detailed, draft agreement.

During the public-comment period, residents and builders criticized the proposed terms. Resident Danielle Twemno said the resolution effectively would waive a statutory requirement that property owners not be delinquent on taxes or special assessments, and called the request "problematic" and inconsistent with the RHID's intent to support modest, workforce housing. "We're wasting taxpayer dollars entertaining this," she said.

Builder Chuck Deltmire, identifying himself as Deltmire Homes, said the lots could be worth about $50,000–$65,000 each and objected to using an RHID as a mechanism for what he called a bailout of a developer who had not paid specials. "He—s paying less than I think we discounted him 60% as to what he's paying," Deltmire said.

Other council members raised related issues: several lots cited in the application are part of county foreclosure actions, and council members said they would not send a recommendation to the state while foreclosure remained pending. Councilwoman Villalba DiBialka said she would not support the application, objecting to waiving the delinquency requirement. Councilman Spencer Duncan said he was "not comfortable sending something to the state that's on the foreclosure action."

Given the breadth of concerns, the council voted to table the RHID application until the second meeting in December (Dec. 9). The motion to table was made by Councilman Neil Dobler and seconded by Councilman Spencer Duncan. The vote was 7 in favor and 2 opposed (Councilwoman Hiller and Deputy Mayor Kahl voted no).

The city manager—s office and staff said tabling would permit staff to discuss clarified deal terms with the developer, remove any request to convey pondland and address delinquent taxes and foreclosure matters before the governing body sends any recommendation to the Kansas Department of Commerce.

The council did not approve the RHID application; it only set a new target date for staff to return with revised terms and legal clarifications.