This does not reflect the majority viewpoint of the JoCo BOCC
October 14, 2024
Well, Chairman of the BOCC, Mike Kelly, seems to never disappoint in the crushing of a certain commissioner’s opinion or question in our weekly business meetings and agenda review.
In the October 10th Agenda Review yours truly asked our chief legal counsel to opine as to whether or not the Board could renegotiate the terms of our 2020 contract with VanTrust, the master developer at New Century, concerning the payment in lieu of taxes (PILOT, or tax rate) and the ground lease terms.
Since 2020 the PILOT/tax rate has been frozen at 30 cents per sq. ft. for property taxes for 10 years with an annual increase cap of 1.5%. I love these corporate welfare SWEET deals!!!
However, my query was kiboshed by Chairman Kelly who stated, “ . . . I’d ask that legal not do work on behalf of one particular commissioner, instead see if it is the will of the board….” to ask for such an opinion.
So, as 3rd District Commissioner, according to Chairman Kelly, I cannot ask our chief legal counsel whether or not the decision handed down by the Kansas Supreme Court in 2021 in the JAYHAWK RACING PROPERTIES LLC. V. CITY OF TOPEKA does or does not give the BOCC the right to renegotiate our contract.
WOW!!! I get so confused as to who the BOCC is representing, YOU or BIG CORPORATE interests…seems to be the later.
The master development contract needs to be renegotiated because again the tax rate has been frozen since 2020. Our income rate has not increased in the past 4 years, but our costs have skyrocketed, making cash flow extremely questionable. A comparison with Olathe proves my point.
As stated, Johnson County is offering a tax rate of 30 cents per sq. ft. while our next-door neighbor, Olathe, their tax rate is 83.5 cents per sq. ft. for the exact same type of warehouse development. Olathe’s tax rate is 270% higher than Johnson County’s.
Ok, Olathe’s financial model indicates the need for an 83.5 cent per sq. ft. tax rate. However, Johnson County’s model indicates that a 30 cent per sq. ft. tax rate works just fine and dandy.
Me thinks there is trouble in someone’s math.
From The City of Olathe: “$0.30 PILOT is insane for Johnson County. Our (Olathe) PILOT is closer to $.835 instead of $.82, fixed subject to review annually. We (Olathe) review our tax abatement policy annually in the fall.”
As you know, I do not support this corporate welfare, which is Economic Fascism; however, Olathe’s PILOT is 270% higher than Johnson County’s. Olathe’s PILOT is reviewed annually, Johnson County’s is NOT. And Olathe has a tax abatement policy, Johnson County DOES NOT.
I leave you to ponder and wonder if Chairman Kelly’s opinions and actions are swayed by working in the real estate division of the law firm, Husch Blackwell, of which he is a partner.
