City Commission Approves Addendums to Housing Development Agreements

At Monday's City Commission Meeting, Commissioners discussed Resolution 23-8161 - Development Agreement Addendum with Southview Estates LLC for Clarification Regarding Development Agreement Standards. Resolution 23-8162 - Development Agreement Addendum with Building Kansas LLC for Clarification Regarding Development Agreement Standards.

Background: Concerns around compliance were originally raised on July 17, 2023 when staff received notice from Commissioner Trent Davis that a citizen had reached him by phone over the weekend regarding compliance with the South View Estates Development Agreement.

On September 25, 2023 the City Commission reviewed data and heard staff reports and testimony in response to compliance concerns regarding South View Estates, LLC and their Development Agreement. Findings by Staff showed that there are homes within the South View Estates Subdivision that are less than the size required by the Development Agreement. Ten single-family homes were found to be less than the required 1,100 sq ft (10 to 25 sq ft off) and 14 town homes were less than 1,000 sq ft (60 sq ft off).

After much discussion during the meeting and an executive session, the City Commission directed staff to work with Bond Counsel to draft an addendum to the Development Agreement. The City Commission noted that the addendum should reflect the language in the staff report around clarifying the definition of "Finished Square Feet." Additionally, the Commission wanted the undersized units noted and accepted within the addendum while also making it clear that it would not be acceptable for any future units.

Current Request:
Staff has worked with Bond Counsel to develop an addendum to the Development Agreement as directed.

Building Kansas, LLC (Aero Plains Subdivision) has a similar RHID Development Agreement with the same definition of "Finished Square Feet." Staff is suggesting a similar addendum and companion Resolution to add the same definition clarification to the Building Kansas, LLC Development Agreement.

Additionally, it should be noted that neither this addendum nor any previously adopted amendments to the South View Development Agreement, as reviewed by Bond Counsel, constitute a substantial change to the Development Plan. As per K.S.A 12-5246(b) and 12.5247(b), "Any substantial change to the Development Plan shall be subject to the same procedure for public notice and hearing as required for the initial establishment of the district." and "Further, a request from a developer to be released from any obligations agreed to and embodied in the Development Plan would constitute substantial change and be subject to notice and public hearing." Bond Counsel has confirmed that the South View Development Plan: (1) does not require that purchasers of units within the South View RHID be owner occupants, and (2) that unit sizes are a suggested range of sizes. Therefore, approval of the amendments has not resulted in any substantial change to the South View Development Plan and approval is not subject to notice and public hearing requirements.

The motion to approve Resolution No. 23-8161 adopting an addendum to the South View Estates, LLC RHID Development Agreement was approved 3-0. Mayor Hoppock and Commissioner Ryan both recused themselves.

The motion to approve Resolution No. 23-8162 adopting an addendum to the Building Kansas, LLC RHID Development Agreement was approve 4-0. Mayor Hoppock recused himself.