On the agenda: Ottawa meeting — data center (Jan 7)

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OTTAWA CITY COMMISSION

REGULAR MEETING AGENDA

Wednesday, January 7, 2026 - 7:00 pm

Ottawa City Hall - 101 S. Hickory

In accordance with Kansas Open Meetings Act (KOMA), the
meeting can be viewed live on Channel 23, via Facebook Live or listened to by dialing: 1-312-626-6799 and entering meeting
ID 979 6273 3505#. To view on YouTube: https://www.youtube.com/
@ottawaksgov
If you need this information in another format or require a
reasonable accommodation to attend this meeting, contact the
City’s ADA Coordinator at 785-229-3621. Please provide advance
notice of at least two (2) working days. TTY users please call 711.

I.

CALL TO ORDER

II.

ROLL CALL ______ Allen

III.

WELCOME

IV.

PLEDGE OF ALLEGIANCE

V.

INVOCATION

VI.

PUBLIC COMMENTS

______ Clayton

Citizens may in person, via Zoom or submit comments (300 words
or less) for the City Commission to be read during public
comment or during discussion on an agenda item.
To submit your comment or request the meeting Zoom link to give
a public comment, email [email protected]
no later than 4:00 pm on January 7, 2026; all emails must include
your name and address. Participants who generate unwanted or
distracting noises may be muted by the meeting host. If this happens, unmute yourself when you wish to speak.

______ Crowley

______ Skidmore

______ Van Leiden

Subject to the above restrictions, persons who wish to address the City Commission regarding items
on the agenda may do so as that agenda item is called. Persons who wish to address the City
Commission regarding items not on the agenda and that are under the jurisdiction of the City Commission may do so at this time when called upon by the Mayor. Comments on personnel matters
and matters pending in court or with other outside tribunals are not permitted. Speakers are limited
to three minutes. Any presentation is for information purposes only. The Governing Body will take
comments under advisement.
VII.

APPOINTMENTS, PROCLAMATIONS, RECOGNITIONS, AND NOMINATIONS

VIII. CONSENT AGENDA
A. Minutes From December 17, 2025 Meeting (Pp. 3-7)
B. 2026 Cereal Malt Beverage License Application—Pizza Time (P. 8)
C. Agenda Approval
Motion: _____________
IX.

Second: _____________

Vote: _____________

DECLARATION
At this time, I’d like to give the Commissioners a chance to declare any conflict or communication
they’ve had that might influence their ability to consider today’s issues impartially.

X.

UNFINISHED BUSINESS

XI.

NEW BUSINESS

A. Public Hearing on Reinvestment Housing Incentive District (RHID) Development Plan and RHID
District for Woodridge Estates — Assistant Director McCurdy (Pp. 9-73)
Comment: This public hearing is to consider the adoption of a RHID Development Plan and establishment of a RHID District for the Woodridge Estates project.
Open: _____________

Closed: _____________

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B. Ordinance Adopting Reinvestment Housing Incentive District (RHID) Development Plan, Establishing RHID, and approving Development Agreement for Woodridge Estates —Assistant Director McCurdy (Pp. 9-73)
Comment: This ordinance adopts the RHID Development plan, formally establishes the RHID District boundaries for the Woodridge Estates project, and authorizes execution of the associated Development Agreement.
Motion: _____________

Second: _____________

Vote: _____________

C. Resolution Defining Depository Institutions and Authorized Signers — Assistant Director
McCurdy (Pp. 74-76)
Comment: Updates authorized signers by removing one signer and reflecting a legal name
change for another.
Motion: _____________

Second: _____________

Vote: _____________

D. Commission Board/Commission Assignments for 2026 — Clerk Scherman (Pp. 77-78)
Comment: Review and discussion of City Commission board and commission assignments for
the 2026 calendar year.
Motion: _____________

Second: _____________

Vote: _____________

E. Kansas Municipal Energy Agency (KMEA) Board Appointment Director 1 — Clerk Scherman
(Pp. 79-81)
Comment: Discussion and consideration of the Kansas Municipal Energy Agency (KMEA) Board
Appointment for Director 1.
Motion: _____________

Second: _____________

Vote: _____________

F. Kansas Municipal Gas Agency Board Appointment Director — Clerk Scherman (Pp. 82-84)
Comment: Discussion and consideration of the Kansas Municipal Gas Agency (KMGA) Board
Appointment for Director.
Motion: _____________
XII.

COMMENTS BY CITY MANAGER

XIII.

COMMENTS BY GOVERNING BODY

XIV.

ANNOUNCEMENTS
A.
January 14, 2026
B.
January 21, 2026
C.
January 21, 2026
D.
January 28, 2026

Second: _____________

Vote: _____________

City Commission Meeting - 4:00 pm, City Hall
City Commission Meeting - 10:00 am, City Hall—Cancelled
KMU Day at the Capitol, Cyrus Hotel, Topeka
City Commission Meeting - 4:00 pm, City Hall

XV. EXECUTIVE SESSION
Motion: I move that the Commission recess into executive session to engage in privileged and confidential communication with the board’s attorney, pursuant to the attorney client privilege exception,
K.S.A. 75-4319(b)(2). The open meeting will resume in this room at __________ p.m.
XVI. ADJOURN

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Regular Meeting Minutes
City Hall
Minutes of December 17, 2025
The Governing Body met at 10:00 a.m. on this date for the Regular City Commission Meeting, with
the following members present and participating: Mayor Clayton, Mayor Pro Tem Crowley,
Commissioner Skidmore and Commissioner Van Leiden. Commissioner Allen was absent. Mayor
Clayton called the meeting to order.
Mayor Clayton welcomed the audience, led the Pledge of Allegiance to the American flag, and gave
the invocation.
Public Comments
No public comments were received.
Appointments, Proclamations, Recognitions, Nominations, and Public Hearings
Presentation of a check from the Mayor’s Christmas Tree Fund to ECKAN
The Governing Body received a generous donation of $2,000 from the Cosentino family as a passthrough donation to assist those in need in Ottawa. The Commission selected ECKAN to receive the
donation. Teresia Templeton from East Central Kansas Economic Opportunity Corporation (ECKAN)
accepted the donation and thanked the Governing Body for their support.
Consent Agenda
Mayor Pro Tem Crowley moved to approve the consent agenda, seconded by Commissioner Van
Leiden. The consent agenda included the minutes from the December 10, 2025 Regular Meeting,
November 2025 Finance Monthly Report, Partner Agency Reports from November 2025, 2026 Cereal
Malt Beverage Applications, and approval of the Regular Meeting agenda. The motion was considered
and upon being put, all present voted aye. The Mayor declared the consent agenda duly approved.
Declaration
No declarations were made.
Unfinished Business
New Business
Snow Removal Plan
Director Welsh presented an overview of the City’s 2025/2026 Winter Weather Preparation and Snow
Removal Procedures, outlining the City’s approach to providing 24/7 response during winter weather
events to maintain safe and passable streets. He explained that the procedures are updated annually
and highlighted key components of the plan, including pre-treatment through anti-icing salt brine
applied up to 72 hours in advance of storms, plowing operations that typically begin at approximately
two inches of accumulation, and coordinated use of Public Works, Parks, Utilities, and contracted
resources as needed. Director Welsh reviewed the priority routing system for emergency routes,
arterials and collectors, residential streets, and sidewalks, and discussed updates specific to the Central
Business District, including windrowing on Main Street and expanded overnight snow hauling to
minimize business disruption. He also addressed de-icing and salting practices, noting temperature
considerations and limited salting in residential areas to intersections only. Director Welsh stated that
December 17, 2025

Unofficial Until Approved
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City of Ottawa
Regular Meeting Minutes
December 17, 2025
Page 2

winter weather operations are funded through existing operational budgets and no additional financial
or legal considerations are needed for this information update.
Appointment of Interim City Manager
City Attorney Finch addressed the Commission and welcomed those present to the final City
Commission meeting of 2025, noting that City Manager Silcott was participating remotely and that
this marked his final meeting with the Governing Body. Mr. Finch thanked Mr. Silcott for his service,
particularly highlighting his contributions to the City’s strategic framework and the added strategic
dimension he brought to City operations.
City Attorney Finch outlined the upcoming transition process, explaining that with Mr. Silcott’s
departure, the City has begun the search for a new City Manager. He reviewed the anticipated
timeline, including entering into executive session to review a pool of candidates, receiving and
narrowing candidate information in January, selecting finalists, and conducting interviews in early
2026. Following interviews, an offer would be extended and a contract negotiated, noting that the
transition period could take up to 60 days. He estimated that the new City Manager would likely begin
service in mid to late March 2026.
City Attorney Finch explained that during the interim period, the City will still need day-to-day
operational authority, particularly during the first quarter of 2026. He noted that while the Commission
sets overarching policy, it is customary for senior staff to be appointed as Interim City Manager during
such transitions. He asked the Commission to consider appointing an Interim City Manager to ensure
continuity of operations.
Commission discussion followed regarding approaches used by other municipalities, including
whether interim responsibilities are handled internally or through an external appointment, and how
the duration of the vacancy influences that decision. City Attorney Finch noted that staff had contacted
the League of Kansas Municipalities to explore the availability of retired City Managers, but none
were available at this time. Commissioners discussed workload considerations for senior staff, the
temporary nature of the position, and the importance of maintaining effective working relationships
during the transition. It was noted that the City Attorney has extensive institutional knowledge and is
already involved in many day-to-day operational matters.
Commissioner Skidmore made a motion, seconded by Mayor Pro Tem Crowley, to appoint City
Attorney Finch as Interim City Manager. The motion was considered and upon being put, all present
voted aye. The Mayor declared the motion duly approved.
Update from Lightfield Energy
City Attorney Finch introduced the item and provided background on the Proximity Park purchase
agreement with Lightfield Energy, noting that the agreement was approved in the prior year and
included established timelines and an inspection period. He explained that while the overall length of
the contract had not changed, certain internal deadlines were adjusted earlier in 2025 and the current
inspection period was set to expire at the end of the week. Lightfield Energy has requested additional
time due to the complexity of the project. Andy Talbert of Lightfield Energy joined the meeting via
Zoom to provide an update.

December 17, 2025

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Unofficial Until Approved

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City of Ottawa
Regular Meeting Minutes
December 17, 2025
Page 3

Mr. Talbert addressed the Commission and provided an overview of the Proximity Park project,
including the broader vision for a technology and AI-focused campus and its long-term potential
benefits for the City of Ottawa and Franklin County. He discussed national trends related to AI
development and data centers, emphasizing the increasing demands for power and water and the
importance of ensuring that the project does not burden the City’s existing infrastructure. Mr. Talbert
stated that Lightfield Energy has been working closely with City staff through regular coordination to
better understand local processes and infrastructure limitations.
Mr. Talbert explained that Lightfield Energy is pursuing a “bring your own power and water”
approach, including the development of a privately funded power generation facility. He noted that
design of the power plant is approximately 50 percent complete and that additional work is underway
to secure natural gas supply and comply with Kansas energy incentive requirements, including
coordination with the Kansas Municipal Energy Agency. He also discussed challenges related to water
availability and explained that Lightfield Energy is exploring private solutions, including the potential
development of a separate water treatment facility to support the project while creating additional
long-term capacity and redundancy for the community.
Commission discussion followed regarding water demand, infrastructure capacity, project timelines,
and the importance of ensuring that the project is privately financed and does not negatively impact
existing City services. Commissioners acknowledged the complexity of the project, the evolving
regulatory and market conditions surrounding AI development, and the significant investment
Lightfield Energy has made to date. City staff provided additional context on power and water
considerations, and appreciation was expressed for the work of Utilities staff in evaluating technical
options.
City Attorney Finch summarized the request before the Commission, explaining that staff was
recommending a short pause in the current contract timeline to allow for additional due diligence and
review. He noted that the inspection period under the existing agreement would expire on December
18, 2025, and that a 30-day extension would provide the Commission and staff time to evaluate
options and determine whether to accept, counter, or reject a revised proposal.
Commissioner Skidmore made a motion, seconded by Commissioner Van Leiden, to authorize staff to
negotiate and execute a 30-day extension of the current contractual deadlines between the City of
Ottawa and Lightfield Energy for further review and due diligence. The motion was considered and
upon being put, all present voted aye. The Mayor declared the motion duly approved.
City Manager Comments
City Attorney Finch provided operational highlights and updates to the Commission. He reported that
Public Works crews have continued tree trimming efforts on the southwest side of town between 1st
and 7th Streets and have removed two trees at Highland Cemetery. He also noted that repairs have
begun at the intersection of Davis and Industrial Road.
City Attorney Finch provided an update on recent Kansas Department of Transportation (KDOT)
grants, explaining that traffic safety and traffic design improvements require engineered solutions in
compliance with the Manual on Uniform Traffic Control Devices (MUTCD). He noted that traffic
counts, engineering analysis, and consultant involvement are necessary before improvements can be
implemented and that grant-funded traffic projects often have longer timelines and may involve
December 17, 2025

3

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City of Ottawa
Regular Meeting Minutes
December 17, 2025
Page 4

multiple intersections. He also referenced materials awarded through the High Risk Urban Roads
(HRUR) Program.
Bob Crowell, Utility Services Supervisor reviewed the recently implemented automated utility phone
payment system, outlining how the system works and explaining that payments made through the
automated phone option are posted immediately, compared to traditional payments that may process
on a later date. The benefits of 24/7 availability and immediate posting were discussed. In response to
Commission questions, it was noted that since implementation on December 9, 2025, the City has
processed 36 automated payments. Commissioners requested that information about the service be
added to the City’s website and included as a note on utility bills, and staff indicated those options
would be explored.
City Attorney Finch reviewed current open positions within the City, provided an overview of
upcoming meetings and calendar items, and noted that there is no estimated occupancy timeline
available at this time for the Hidden Lakes development. He concluded his comments by wishing the
Commission, staff, and community a Merry Christmas.
Governing Body Comments
Commissioner Van Leiden thanked City staff for their work throughout the year and extended Merry
Christmas and New Year’s wishes. Commissioner Skidmore acknowledged a recently approved grant
and thanked staff for their work, noting appreciation for the reason for the season. Mayor Clayton
extended Merry Christmas wishes and thanked the citizens and City staff who work every day,
particularly recognizing snow crews working overnight and employees working on holidays, including
Utilities, Streets, Fire, and Police, so the community can safely enjoy the season.
Announcements
A. December 24, 2025 – City Commission Meeting – 4:00 pm, City Hall – Cancelled
B. December 31, 2025 – City Commission Meeting – 4:00 pm, City Hall – Cancelled
C. January 7, 2026 – City Commission Meeting – 7:00 pm, City Hall
Executive Session
Recess
Mayor Pro Tem Crowley made a motion, seconded by Commissioner Skidmore, to recess into
executive session for a period of 60 minutes to discuss personnel matters of non-elected personnel for
the purpose of reviewing applicants, pursuant to K.S.A. 75-4319(b)(1). The open meeting will resume
in this room at 12:15 p.m. The motion was considered and upon being put, all present voted aye. The
Mayor declared the meeting duly recessed.
Reconvene
Mayor Pro Tem Crowley made a motion, seconded by Commissioner Van Leiden, to reconvene into
open session. The motion was considered and upon being put, all present voted aye. The Mayor
declared the meeting duly reconvened at 12:15 p.m.

December 17, 2025

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Unofficial Until Approved

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City of Ottawa
Regular Meeting Minutes
December 17, 2025
Page 5

Adjournment
There was no further business before the Governing Body, the Mayor declared the meeting duly
adjourned at 12:16 p.m.
Melissa Scherman, City Clerk

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Agenda
Item:
VIII.B
City of Ottawa
City Commission Meeting
January 7, 2026
TO:
SUBJECT:
INITIATED BY:
AGENDA:

Mayor and City Commission
2026 Cereal Malt Beverage License Application – Pizza Time
City Clerk
Consent Agenda

Recommendation: The City Commission reviewed the initial CMB applications on December
3, 2025, and December 17, 2025. Since that time, an additional CMB application has been
received. It is recommended that the City Commission approve the 2026 Cereal Malt Beverage
license application for Pizza Time.
Background: CMB is defined in K.S.A. 41-2701, as amended, and includes beer containing no
more than 6% alcohol by volume when sold by a retailer licensed under the Kansas Cereal Malt
Beverage Act. There are two types of CMB licenses:
•
•

Enhanced Cereal Malt Beverage (off-premise): Permits the sale of enhanced CMB in
original, unopened containers, not for consumption on the licensed premises.
Enhanced Cereal Malt Beverage (on-premise): Permits the sale of CMB for use or
consumption on the licensed premises and not for resale.

Analysis: The Kansas Department of Revenue updated its CMB license issuance process
effective September 1, 2025. Applicants must now obtain a State CMB Stamp from the Kansas
Alcoholic Beverage Control (ABC) Division before applying to the City Clerk’s Office. The City
will issue the CMB Retailer License only after verifying the State Stamp and confirming all local
requirements are met.
CMB applications for 2026 have been reviewed and approved by the Police Department and City
Attorney, with no grounds for denial. The updated procedure ensures that each applicant has met
both State and City requirements for licensure.
For Consumption on the Premises: (Renewals)
•
Pizza Time: 208 S. Main St.
Financial Considerations: As outlined in the Municipal Code, Section 4-310, License Fees are
as follows:
•
General Retailer (On-Premise): $200 per calendar year
Legal Considerations: The licensing process is governed by K.S.A. 41-2701 et seq. and is
subject to the Kansas Alcoholic Beverage Control regulations.
Recommendation/Action: It is recommended that the City Commission approve the 2026
Cereal Malt Beverage application for Pizza Time.

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Agenda Item: XI.A-B
City of Ottawa
City Commission Regular Meeting
January 7, 2026
TO:
SUBJECT:

INITIATED BY:
AGENDA:

Mayor and City Commission
XI.A Public Hearing: Reinvestment Housing Incentive District
Development Plan and Establishing RHID District (Woodridge Estates
Reinvestment Housing Incentive District)
XI.B Ordinance Establishing a Reinvestment Housing Incentive District
within the City, and Adopting a Plan for the Development of Housing and
Public Facilities in such District, and Making Certain Findings in
Conjunction Therewith (Woodridge Estates Reinvestment Housing
Incentive District)
Director of Finance and Bond Counsel
New Business

Recommendation: Hold Public Hearing on the Reinvestment Housing Incentive District Plan
(Woodridge Estates Reinvestment Housing Incentive District).
After the close of the Public Hearing, consider an Ordinance Establishing a Reinvestment
Housing Incentive District within the City, and Adopting a Plan for the Development of Housing
and Public Facilities in such District, and Making Certain Findings in Conjunction Therewith
(Woodridge Estates Reinvestment Housing Incentive District.
Background: The City of Ottawa received an Economic Incentive Application from Legacy
Homes of Ottawa LLC, requesting the establishment of a Reinvestment Housing Incentive
District (RHID) for the development of thirteen for-sale single-family homes to be located at
1001 E. Wilson St.
The State of Kansas RHID Act allows eligible costs to include 1) infrastructure including streets,
sewer, water, stormwater, sidewalks, and electric utilities; or 2) upper floor living in downtown
areas; or 3) vertical construction costs where utility infrastructure has been in existence for at
least 10 years or the existing lot(s) have been subject to special assessments. This project is
eligible under the third criteria of the Act.
On July 16, 2025, the City Commission passed Resolution 1986-25, determining the need for
housing within the City of Ottawa and setting forth the legal description of the proposed
Reinvestment Housing Incentive District for Woodridge Estates. The resolution and request were
submitted to the Kansas Department of Commerce, and a confirmation letter was received on
August 14, 2025, supporting the creation of the Woodridge Estates Reinvestment Housing
District.
On December 3. 2025, the City Commission passed Resolution 2001-25 determining that the
City is Considering Establishing a Reinvestment Housing Incentive District within the City and

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Adopting a plan for the Development of Housing and Public Infrastructure in such Proposed
District, Establishing the Date and Time of a Public Hearing on such matter, and Providing for
Notice of such Public Hearing (Woodridge Estates Reinvestment Housing District). This set the
Public Hearing to be held on January 7, 2026, at 7:00 p.m. at City Hall, 101 S. Hickory St.,
Ottawa, Kansas.
Project Description: The proposed project is for the development of the vacant lot located at
1001 E. Wilson St. into 13 single-family homes, proposed as 1,064 to 1,400 sq ft for sale
properties. The proposed starting market price for these units will be $212,000 to $265,000. This
subsection of for-sale homes falls within the parameters of housing needs as outlined in the 2025
Housing Study commissioned by the Franklin County Development Council, which states that in
the next five years, the city of Ottawa will need an additional 34 new homes in the price range of
$200,000-$274,999.
Project History: The Woodridge Estates Project began the planning process in the Spring of
2025.
Below is a list of how the project has progressed:
• August 28, 2025: Preliminary Plat approved by Planning Commission.
• November 12, 2025: Final Plat approved by Planning Commission.
• December 3, 2025: City Commission approved the final plat by Resolution 2000-25
Analysis: The process for incentive consideration is set as follows:
 June, 2025





o
o

o

But-For Analysis conducted by financial advisory firm, Baker
Tilly, LLC
July 14, 2025
Economic Incentive Review Committee met to discuss request
July 16, 2025
City Commission determined the need for the creation of a
Reinvestment Housing Incentive District through Resolution 198625 and submitted request for approval to the Kansas Department of
Commerce
Dec. 3, 2025
City Commission approved a Resolution defining the proposed
Development Plan with intent to establish a district and set a public
hearing.
January 7, 2026 City Commission Action Step 3: Hold public hearing
January 7, 2026 City Commission Action Step 4: Consider Ordinance adopting
the Development Plan, establishing the district, and approving
the Development Agreement
February 6, 2026* End of 30-day protest period for Board of Education and Board of
County Commissioners

Items notated with an * are subject to approval of each prior City Commission Action Item.
The proposed Development Plan includes the following information:
• Property Ownership: Legacy Homes of Ottawa, LLC
• Proposed development of the vacant lot located at 1001 E. Wilson St.

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•
•
•
•

Current assessed valuation of the property is $12,758
Housing Facilities:
o 13 single-family for sale properties (1,064 to 1,400 sq ft)
Public infrastructure improvements
A financial feasibility study is provided as an exhibit to the Development Plan

Financial Considerations: The statutorily required feasibility study for the Woodridge Estates
RHID has been prepared with financial information for the project provided by the developer,
estimates assessed valuation at completion of the project and provides a maximum pay-as-yougo reimbursement amount for the proposed project as a guidepost for City consideration in
negotiating final terms with the Developer.
Information provided in the feasibility study and confirmation of eligible cost estimates related
to public infrastructure support the recommended and negotiated maximum reimbursement of
$576,000, plus interest on private loans secured by the Applicant to finance eligible project costs,
accepted by the Developer. The Development Plan is provided as Attachment XI.B.1.
The Development Agreement outlines the Incentive terms:
• Agreement between the City of Ottawa, KS, and Legacy Homes of Ottawa, LLC
• RHID Reimbursable cap of $576,000 plus interest on private loans secured by the
Applicant to finance eligible project costs
• Terms are the RHID shall expire on the earlier of January 7, 2046, or reimbursement
having met the reimbursable cap.
• Pay-as-you-go financing – all ad valorem taxes must be paid, and the increment
generated from the project will be reimbursed back to the developer annually.
• City will earn 2.5% Administrative fee
Legal Considerations: The proposed Ordinance has been prepared by Bond Counsel Gilmore
Bell, the City’s Bond Counsel, reviewed by City Attorney Finch, and approved as to form. This
Ordinance adopts the proposed RHID Development Plan, establishes the Woodridge Estates
RHID District within the established boundaries, and approves the proposed Development Plan.
If this Ordinance is approved, this action authorizes the Mayor to execute the Development
Agreement (attachment XI.B.3).
Recommendation/Actions: It is recommended that the City Commission hold the Public
Hearing. At the close of the Public Hearing, it is recommended that the City Commission
consider:
1. Take action at the January 7, 2026, Commission meeting to:
“Approve an Ordinance Establishing a Reinvestment Housing Incentive
District within the City, and Adopting a Plan for the Development of
Housing and Public Facilities in such District, and Making Certain Findings
in Conjunction Therewith (Woodridge Estates Reinvestment Housing
Incentive District)” or
2. Refer item XI.B to a future regular meeting for continued deliberations.

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Attachments:
XI.B.1
Development Plan – Woodridge Estates Reinvestment Housing Incentive District
XI.B.2
Ordinance Establishing a Reinvestment Housing Incentive District within the
City, and Adopting a Plan for the Development of Housing and Public Facilities
in such District, and Making Certain Findings in Conjunction Therewith
(Woodridge Estates Reinvestment Housing Incentive District)
XI.B.3
Development Agreement – Woodridge Estates Reinvestment Housing Incentive
District

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DEVELOPMENT PLAN
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT
IN THE CITY OF OTTAWA, KANSAS
JANUARY 7, 2026

91749356.3

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DEVELOPMENT PLAN INTRODUCTION
On July 16, 2025, the Governing Body of the City of Ottawa, Kansas (the “City”) adopted Resolution No.
1986-25, that found and determined that:
1. There is a shortage of quality housing of various price ranges in the City despite the best efforts of
public and private housing developers;
2. The shortage of quality housing can be expected to persist and that additional financial incentives
are necessary in order to encourage the private sector to construct or renovate housing in the City;
3. The shortage of quality housing is a substantial deterrent to the future economic growth and
development of the City; and
4. The future economic well-being of the City depends on the Governing Body providing additional
incentives for the construction or renovation of quality housing in the City.
Based on these findings and determinations, the Governing Body proposed the establishment of a
Reinvestment Housing Incentive District within the City pursuant to the Kansas Reinvestment Housing
Incentive District Act (K.S.A. 12-5241 et seq.).
Following the adoption of Resolution No. 1986-25, such Resolution was published once in the official
newspaper of the City, and a certified copy of such Resolution was submitted to the Secretary of Commerce
(“Secretary”) for approval of the establishment of the Reinvestment Housing Incentive District in the City,
as required by K.S.A. 12-5244(c).
On August 14, 2025, the Secretary provided written confirmation, approving the establishment of the
Reinvestment Housing Incentive District (the “District”).
DEVELOPMENT PLAN ADOPTION
K.S.A. 12-5245 states that once the City receives approval from the Secretary for the development of a
Kansas Reinvestment Housing Incentive District, the Governing Body may adopt a plan for the
development or redevelopment of housing and public facilities within the proposed district.

DEVELOPMENT PLAN
As a result of the shortage of quality housing within the City of Ottawa, Kansas, the City proposes this
development plan (the “Development Plan”) to assist in the development of quality housing within the City.
1. The legal description and map of the proposed district are attached as Exhibits A and B hereto.
2. The assessed valuation of all real estate within the District for 2025 is approximately $12,750 on
land and $0 on all improvements, as listed on Exhibit C, attached hereto.
91749356.3

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3. The names and addresses of the owners of record for the real estate within the District is:
Owner of Real Property:

Legacy Homes of Ottawa LLC
1305 S. Elm Street
Ottawa, KS 66067

4. The housing and public facility project that are proposed to be constructed include the following:
The housing and public facility project (the “Project”) will include the
development of 13 single-family homes located at the northwest corner of North
Milner Street and East Wilson Street. The homes have planned square footages
ranging from 1,065 square feet to 1,400 square feet. The Project is expected to
include land acquisition (the “Land”) and the construction and extension of certain
public infrastructure improvements, including, but not limited to, the following
anticipated improvements: site preparation, construction of interior streets and
roadway, street grading, paving, curbing, guttering, and surfacing, storm sewer,
sanitary sewer, underground water, gas and electric services and connections,
sidewalks, signage, and related improvements located within the boundaries of the
District (collectively, the “Public Improvements”).
5. The names, addresses, and specific interests in the real estate in the District of the developer (the
“Developer”) responsible for development of the housing and public facilities are:
The Developer and owner of property in the District will be:
Legacy Homes of Ottawa LLC1
1302 S. Elm Street
Ottawa, KS 66067
6.

The Governing Body of the City does not expect to receive any contractual assurances from the
Developer guaranteeing the financial feasibility of specific projects within the District; provided,
however, that the City and the Developer expect to enter into a Development Agreement (the
“Development Agreement”) which, as supplemented and amended from time to time, is expected
to include a project construction schedule, a description of projects to be constructed, financial
and other obligations of the Developer, and financial and administrative obligations of the City.

7. Baker Tilly Municipal Advisors, LLC, has conducted an analysis to determine whether the public
benefits derived from the District will exceed the costs and that the income from the District,
together with other sources of revenue, will be sufficient to pay for the Land acquisition and Public
Improvements to be undertaken in the District. The analysis estimates the available property tax
revenues that will be generated from the District, less existing property taxes and certain
unavailable property tax revenues, to determine the revenue stream available to support
reimbursement to the Developer for all or a portion of the costs of financing Land acquisition and
the Public Improvements. The estimates indicate that the revenue realized from the Project, together
with other available sources of revenue, will be adequate to pay the costs of Land acquisition and
the Public Improvements.

91749356.3

2

01.07.26 Regular Mtg Pkt Page #15

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EXHIBIT A
LEGAL DESCRIPTION OF PROPOSED
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

Lots 1 and 2, Block 6, Riverview Addition to the City of Ottawa, Franklin County, Kansas (3.6 Acres),
Section 25, Township 16, Range 19E1
A replat of this property has been approved by the governing body of the City of Ottawa, Kansas, but not
yet recorded as of the date of this resolution. As a result of the replat, the legal description for the property
described above is now:
1

Lots 1-13 and Tract A, Woodridge Estates, a replat of Lots 1 and 2, Block 6, Riverview Addition to the
City of Ottawa, Franklin County, Kansas

91749356.3

A-1

01.07.26 Regular Mtg Pkt Page #16

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EXHIBIT B
MAP OF PROPOSED RHID BOUNDARIES FOR THE
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

The proposed District contains tax parcel ID number: 030-087-25-0-10-04-005.00-0.

601303.20072\DEVELOPMENT PLAN

B-1

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EXHIBIT C
2025 ASSESSED VALUATION
Parcel ID
030-087-25-0-10-04-005.00-0
Total

601303.20072\DEVELOPMENT PLAN

2025 Assessed Value
(Land)
$ 12,758
$ 12,758

2025 Assessed Value (Improvements)
$ 0.00
$ 0.00

C-1

01.07.26 Regular Mtg Pkt Page #18

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EXHIBIT D
COMPREHENSIVE FINANCIAL FEASIBILITY ANALYSIS
[ATTACHED]

601303.20072\DEVELOPMENT PLAN

D-1

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Woodridge Estates
Reinvestment Housing Incentive District
Financial Feasibility Study

Prepared for the City of Ottawa, Kansas

November 10, 2025
01.07.26 Regular Mtg Pkt Page #20

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Contents

Executive Summary .................................................................................................................................... 1
Purpose ........................................................................................................................................................ 2
The Woodridge Estates RHID .................................................................................................................... 3
Expenditures ............................................................................................................................................... 4
Revenues ..................................................................................................................................................... 5
Conclusion ................................................................................................................................................... 8

This information should not be construed as a recommendation or an offer of services. The commentaries provided are opinions of Baker Tilly Municipal
Advisors, LLC and are for informational purposes only. While the information is deemed reliable, Baker Tilly Municipal Advisors, LLC cannot guarantee its
accuracy, completeness, or suitability for any purpose and makes no warranties with regard to the results to be obtained from its use, or whether any expressed
course of events will actually occur. Past performance does not guarantee future results.
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP, a tax and advisory firm. Baker
Tilly Advisory Group, LP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and
independent legal entities. © 2025 Baker Tilly Advisory Group, LP.

01.07.26 Regular Mtg Pkt Page #21

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Executive Summary
The City of Ottawa, KS (the “City”) retained Baker Tilly Municipal Advisors (“BTMA”) to review the financial
feasibility of providing public financial assistance to Legacy Homes of Ottawa (the “Applicant”) for
development of the Woodridge Estates subdivision (the “Project”). Woodridge Estates will include 13
newly constructed single-family homes and will be located at the northwest corner of North Milner Street
and East Wilson Street in Ottawa, Kansas.
The Applicant requests public financial assistance for the Project to make the homes affordable, which the
City defines as initially priced between $212,000 and $265,000. The Applicant seeks up to $576,000, plus
interest (the “Eligible Project Costs”), via a 20-year, 100% property tax redirection (the “Incentive”)
through the establishment of a Reinvestment Housing Incentive District (“RHID” and “District”). RHID
revenues will fund Eligible Project Costs - including land acquisition, infrastructure and sitework - to
enable the Applicant to meet the City’s home affordability goals.
This Comprehensive Feasibility Analysis evaluates whether the public benefits derived from the District
will exceed the costs and whether the RHID income, together with other sources of funding, will be
sufficient to fund the District public improvements.
BTMA reviewed the Applicant’s pro forma and the underlying assumptions regarding Project financing,
construction costs and revenues. BTMA determined that the proposed District’s revenues plus Applicant
contributions equal or exceed the RHID Eligible Project Costs.

Project Description

Construction of 13 single-family homes
resulting in an estimated 16,272 sq ft of
single-family residential development

Eligible Project Costs

Up to $576,000 in land, infrastructure and
site preparation costs, plus interest

Anticipated Revenue

The District is anticipated to generate
$1,139,827 in gross revenues, supporting
$522,589 in Eligible Project Costs at a net
present value rate of 7.5%

Conclusion

District revenues plus Applicant
contributions are sufficient to support the
Eligible Project Costs

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Purpose
On July 16, 2025 the City Commission of Ottawa,
Kansas adopted Resolution No. 1986-25, making the
findings and determinations required to establish the
Woodridge Estates Reinvestment Housing Incentive
District pursuant to sections 12-5241 through 12-5252 of
the Kansas Statutes (the “Act”). The Kansas Secretary
of Commerce subsequently approved the findings by
letter dated August 14, 2025.
Upon the Secretary of Commerce’s approval of the
findings, the Act requires that the City hold a public
hearing and adopt a Development Plan which must
include, among other elements, a Comprehensive
Financial Feasibility Study. This report is the
Comprehensive Financial Feasibility Study (the “Study”)
for the proposed Woodridge Estates Reinvestment
Housing District.
As required by the Act, this Study considers the
following:
•

Whether the District’s benefits exceed its costs, and

•

If the District income, together with other sources of
funding, will be sufficient to fund the public
improvements to be undertaken in the District.

Reinvestment Housing Incentive Districts
(RHIDs) in Kansas
RHIDs are an incentive tool created by state
statute to encourage single- and multi-family
development and renovation in areas
experiencing a shortage of housing. Within
the RHID geographic area, the incremental
increase in property taxes resulting from
new or renovated housing is made available
to reimburse eligible project costs. These
costs include public infrastructure and, in
certain circumstances, construction or
renovation of buildings.
Upon RHID creation, the total assessed
valuation of all taxable real estate within the
district is determined. This valuation is
referred to as the district's “Base-Year
Assessed Valuation.” Over the life of the
district, the property taxes attributable to the
Base-Year Assessed Valuation are annually
collected and distributed to the appropriate
taxing jurisdictions. As new development
occurs within the RHID, the total assessed
valuation of the district in any given year will
exceed its Base-Year Assessed Valuation.
The real property taxes attributable to this
increase in valuation above the Base-Year
Assessed Valuation are the incremental
revenues utilized to pay RHID eligible
project costs. RHIDs may redirect up to
100% of the incremental increase in property
taxes for a period not to exceed 25 years.
RHIDs may finance eligible costs through
the issuance of special obligation bonds, in
which case RHID revenue is used to pay
bond debt service. Most commonly,
developers privately finance the RHID
eligible project costs and are reimbursed
over time, with interest, from incremental
revenues – an approach commonly referred
to as “pay-as-you-go” financing.

2

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The Woodridge Estates RHID
The Woodridge Estates RHID site is located at the northwest corner of North Milner Street and East
Wilson Street and has a commonly known address of 1001 East Wilson Street, Ottawa, KS 66067. The
site is approximately 3.6 acres and is located south of North Milner Street from Lincoln Elementary
School.

RHID Boundary

(Source: Franklin County AIMS)
The Applicant proposes the construction of 13 single-family homes at the Project site. The Project
includes land acquisition, site preparation, infrastructure, and vertical construction of the homes. The
Applicant plans to construct three home models which vary by size and price as described in the following
table.
Model

# Units

Bedrooms

Baths

Garage

Gross Square Feet

Model A

6

3

2

Yes

1,708

Model B

4

3

1

No

1,065

Model C

3

3

2

No

1,204

In total, 13 units will be constructed, constituting 18,120 square feet.

3

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Expenditures
The Project sources and uses are detailed in the following table.
Sources

Amount

Private

RHID

% of Project Total

$1,805,946

$1,805,946

—

68.62%

Equity

$250,000

$250,000

—

9.50%

RHID

$576,000

—

$576,000

21.88%

Total:

$2,631,946

$2,055,946

$576,000

100.00%

Amount

Private

RHID

% of Project Total

$250,000

—

$250,000

9.50%

Hard Costs

$2,231,696

$2,056,008

$175,750

84.79%

Soft Costs

$100,250

—

$100,250

3.81%

Contingency

$50,000

—

$50,000

1.90%

$2,631,946

$2,056,008

$576,000

100.00%

Private Debt

Uses
Land

Total:

The District will reimburse up to $576,000 of Eligible Project Costs, plus interest, on private loans secured
by the Applicant to finance Eligible Project Costs. Should District revenues be insufficient to fund the
Applicant’s Eligible Project Costs, plus interest, the Applicant will fund the difference through private debt
and/or equity.
The Applicant anticipates that the homes will be constructed and sold over a 4-year period starting in
2026 and ending in 2029 as described in the following table.
Year

Model Type Constructed

Units Constructed

Units Sold

2026

Model A – 3
Model B – 1
Model C – 1

5

0

2027

Model A – 1
Model B – 2
Model C – 1

4

5

2028

Model A – 1
Model B – 2
Model C – 1

4

4

2029

N/A

0

4

Total:

N/A

13

13

4

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Revenues
Assessed Value
Per Franklin County’s 2025 assessment, the appraised value of the District area is $106,320. At the
11.5% assessment rate established in state statute, the District Base-Year Assessed Value is $12,758.
Over the 3 years of home construction, approximately $2,982,906 in appraised value will be added to the
Project area. This increase in appraised value represents 92% of the total sale prices for the 13 homes. At
the recommendation of the Franklin County Appraiser, a discount of eight percent is applied to home sale
prices to reflect the difference between the market sale price and appraised value.
In RHID years 1 through 3, the increase in the incremental assessed value is primarily the product of
Project construction. When construction ends in RHID year 4, assessed value increases are based
entirely upon an estimated 3% annual increase in home values. BTMA is using a 3% growth factor based
on historical analysis of home value growth in Ottawa over the past 5 years. Five comparable homes in
Ottawa were identified, and their assessed value growth from 2021 to 2025 ranged from 4% to 9%, with
the average annual growth of 7%. To better mirror long-term economic trends and control for the recent
surge in residential valuation outpacing inflation, BTMA estimates future growth at 3% annually for the
RHID term.
Per a term sheet signed between the City and the Applicant, the Applicant is permitted to increase home
sale prices in accordance with the schedule below. This price escalation and the Applicant’s estimated
construction timeline have been utilized to estimate assessed valuation growth.
Model

Year 1

Year 2

Year 3

Year 4

Year 5

Model A

$263,000

$276,939

$291,617

$307,072

$323,347

Model B

$212,000

$223,236

$235,068

$247,526

$260,645

Model C

$222,000

$233,766

$246,156

$259,202

$272,940

The difference between the RHID’s Base-Year Assessed Value and the post-construction assessed value
represents the incremental assessed value. The following table summarizes the estimated District
appraised and assessed values and resulting incremental assessed values.

RHID
Year

Assess
& Tax
Levy
Year

Tax
Distribution
Year

Base
Appraised
Value

Base
Assessed
Value

Appraised
Valuation

Assessed
Valuation

Incremental
Assessed
Value

1

2026

2027

$106,320

$12,758

$1,125,620

$129,446

$129,446

2

2027

2028

$106,320

$12,758

$2,089,398

$240,281

$240,281

3

2028

2029

$106,320

$12,758

$3,079,356

$354,126

$354,126

4

2029

2030

$106,320

$12,758

$3,171,737

$364,750

$364,750

5

2030

2031

$106,320

$12,758

$3,266,889

$375,692

$375,692

6

2031

2032

$106,320

$12,758

$3,364,896

$386,963

$386,963

7

2032

2033

$106,320

$12,758

$3,465,843

$398,572

$398,572

8

2033

2034

$106,320

$12,758

$3,569,818

$410,529

$410,529

9

2034

2035

$106,320

$12,758

$3,676,913

$422,845

$422,845

5

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RHID
Year

Assess
& Tax
Levy
Year

Tax
Distribution
Year

Base
Appraised
Value

Base
Assessed
Value

Appraised
Valuation

Assessed
Valuation

Incremental
Assessed
Value

10

2035

2036

$106,320

$12,758

$3,787,220

$435,530

$435,530

11

2036

2037

$106,320

$12,758

$3,900,837

$448,596

$448,596

12

2037

2038

$106,320

$12,758

$4,017,862

$462,054

$462,054

13

2038

2039

$106,320

$12,758

$4,138,398

$475,916

$475,916

14

2039

2040

$106,320

$12,758

$4,262,549

$490,193

$490,193

15

2040

2041

$106,320

$12,758

$4,390,426

$504,899

$504,899

16

2041

2042

$106,320

$12,758

$4,522,139

$520,046

$520,046

17

2042

2043

$106,320

$12,758

$4,657,803

$535,647

$535,647

18

2043

2044

$106,320

$12,758

$4,797,537

$551,717

$551,717

19

2044

2045

$106,320

$12,758

$4,941,463

$568,268

$568,268

20

2045

2046

$106,320

$12,758

$5,089,707

$585,316

$585,316

Property Tax Rates
Each year, the then-current property tax rates will be applied to the incremental assessed value to
determine the annual District revenue. For taxes levied in 2024 and payable in 2024/2025, the total
District-applicable property tax rate is 160.570 mills. It is assumed that the District will redirect 100% of
eligible taxes and that tax rates will remain constant throughout the District’s 20-year term. The following
table identifies the eligible and ineligible property tax levies.
Property Tax
Mills (2024/2025)

Ineligible
(2024/2025)

Eligible
(2024/2025)

USD 290 - Total

23.580

0.000

23.580

USD 290 General

20.000

20.000

0.000

USD 290 Bond & Interest #1

16.420

0.000

16.420

USD 290 Recreation Commission

6.000

0.000

6.000

Ottawa City

44.640

0.000

44.640

Franklin County

47.150

0.000

47.150

Frontier Extension #11

1.280

0.000

1.280

State of Kansas*

1.500

1.500

0.000

160.570

21.500

139.070

Jurisdiction

Total:

* The State of Kansas 1.5 mill property tax was eliminated beginning in 2025.
Projected RHID Property Tax Revenue
The annual incremental assessed value, multiplied by the then-current eligible property tax levies,
produces the annual District revenue. The table below summarizes the estimated annual District revenue
net of the City’s 2.5% administrative fee. The total estimated gross revenue over the 20-year District term

6

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is $1,139,827. The total present value is estimated at $522,589 using a discount rate of 7.5%, which
represents the Applicant’s assumed private loan interest rate.

RHID
Year

Assess &
Tax Levy
Year

Tax
Distribution
Year

Incremental
Assessed
Value

Total
District Tax
Rate (in
mills)

Total
Projected
RHID Revenue

RHID
Revenue
Paid to
Applicant

1

2026

2027

$129,446

139.070

$16,228

$15,822

2

2027

2028

$240,281

139.070

$31,642

$30,851

3

2028

2029

$354,126

139.070

$47,474

$46,287

4

2029

2030

$364,750

139.070

$48,951

$47,728

5

2030

2031

$375,692

139.070

$50,473

$49,211

6

2031

2032

$386,963

139.070

$52,041

$50,740

7

2032

2033

$398,572

139.070

$53,655

$52,314

8

2033

2034

$410,529

139.070

$55,318

$53,935

9

2034

2035

$422,845

139.070

$57,031

$55,605

10

2035

2036

$435,530

139.070

$58,795

$57,325

11

2036

2037

$448,596

139.070

$60,612

$59,097

12

2037

2038

$462,054

139.070

$62,484

$60,922

13

2038

2039

$475,916

139.070

$64,411

$62,801

14

2039

2040

$490,193

139.070

$66,397

$64,737

15

2040

2041

$504,899

139.070

$68,442

$66,731

16

2041

2042

$520,046

139.070

$70,549

$68,785

17

2042

2043

$535,647

139.070

$72,718

$70,900

18

2043

2044

$551,717

139.070

$74,953

$73,079

19

2044

2045

$568,268

139.070

$77,255

$75,323

20

2045

2046

$585,316

139.070

$79,626

$77,635

Gross Revenue

$1,139,827

Net Present Value at 7.5%

$522,589

7

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Conclusion
It is estimated that the Woodridge Estates RHID will generate $1,139,827 in gross revenues. These
revenues are sufficient to reimburse approximately $522,589 in Eligible Project Costs, plus interest, at an
assumed discount rate of 7.5%. As the assumed Eligible Project Costs are $576,000, approximately
$53,410 will be paid from the Applicant’s private sources. As such, we find that the District’s benefits will
likely exceed its costs, and that District income, together with other sources of funding, will be sufficient to
fund the public improvements to be undertaken in the District.

8

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ORDINANCE NO. ___
AN ORDINANCE OF THE CITY OF OTTAWA, KANSAS, ESTABLISHING A
REINVESTMENT HOUSING INCENTIVE DISTRICT WITHIN THE CITY AND
ADOPTING A PLAN FOR THE DEVELOPMENT OF HOUSING AND PUBLIC
FACILITIES IN SUCH DISTRICT, AND MAKING CERTAIN FINDINGS IN
CONJUNCTION THEREWITH (WOODRIDGE ESTATES REINVESTMENT
HOUSING INCENTIVE DISTRICT).
WHEREAS, K.S.A. 12-5241 et seq. (the “Act”) authorizes any city incorporated in accordance
with the laws of the state of Kansas (the “State”) with a population of less than 60,000 to designate
reinvestment housing incentive districts within such city; and
WHEREAS, prior to such designation the governing body of such city shall conduct a housing
needs analysis to determine what, if any, housing needs exist within its community; and
WHEREAS, after conducting such analysis, the governing body of such city may adopt a
resolution making certain findings regarding the establishment of a reinvestment housing incentive district
and providing the legal description of property to be contained therein; and
WHEREAS, after publishing such resolution, the governing body of such city shall send a copy
thereof to the Secretary of the Kansas Department of Commerce (the “Secretary”) requesting that the
Secretary agree with the finding contained in such resolution; and
WHEREAS, if the Secretary agrees with such findings, such city may proceed with the
establishment of a reinvestment housing incentive district within such city and adopt a plan for the
development or redevelopment of housing and public facilities in the proposed district; and
WHEREAS, the City of Ottawa, Kansas (the “City”) has an estimated population of under 60,000
and therefore constitutes a city as the term is defined in the Act; and
WHEREAS, a Residential Demand Analysis, dated March 2025 (the “Analysis”), has been
prepared, a copy of which is on file in the office of the City Clerk; and
WHEREAS, Resolution No. 1986-25, adopted by the governing body of the City (the “Governing
Body”), made certain findings relating to the need for financial incentives for the construction of quality
housing within the City, declared it advisable to establish a reinvestment housing incentive district pursuant
to the Act and authorized the submission of such Resolution and the Analysis to the Kansas Department of
Commerce in accordance with the Act; and
WHEREAS, the Secretary of the Kansas Department of Commerce, pursuant to a letter dated
August 14, 2025, authorized the City to proceed with the establishment of a reinvestment housing incentive
district pursuant to the Act; and
WHEREAS, the City has caused to be prepared a plan (the “Plan”) for the development or
redevelopment of housing and public facilities in the proposed Woodridge Estates Reinvestment Housing
Incentive District (the “District”) in accordance with the provisions of the Act; and
WHEREAS, the Plan includes:
601303.20072\ORDINANCE ESTABLISHING DISTRICT

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1.
The legal description and map required by K.S.A. 12-5244(a);
2.
The existing assessed valuation of the real estate in the proposed District listing the land
and improvement values separately;
3.
A list of the names and addresses of the owners of record of all real estate parcels within
the proposed District;
4.
A description of the housing and public facilities project or projects that are proposed to be
constructed or improved in the proposed District, and the location thereof;
5.
A listing of the names, addresses and specific interests in real estate in the proposed District
of the developers responsible for development of the housing and public facilities in the proposed
District;
6.
The contractual assurances, if any, the Governing Body has received from such developer
or developers, guaranteeing the financial feasibility of specific housing tax incentive projects in the
proposed District;
7.
A comprehensive analysis of the feasibility of providing housing tax incentives in the
proposed District as provided in the Act, which shows that the public benefits derived from such
District will exceed the costs and that the income therefrom, together with all public and private
sources of funding, will be sufficient to pay for the public improvements that may be undertaken
in the District.
WHEREAS, the Governing Body of the City has heretofore adopted Resolution No. 2001-25,
which stated that the City is considering establishing the proposed District and adopting the proposed Plan
pursuant to the Act, set forth the boundaries of the proposed District, provided a summary of the proposed
Plan, called a public hearing concerning the establishment of the proposed District for January 7, 2026, and
provided for notice of such public hearing as provided in the Act; and
WHEREAS, a public hearing was opened and held on January 7, 2026; and
WHEREAS, upon and considering the information and public comments received at the public
hearing, the Governing Body of the City hereby deems it advisable to establish the proposed District and
to adopt the proposed Plan; and
WHEREAS, the Governing Body also deems it necessary and advisable to authorize and approve
a Development Agreement (the “Development Agreement”), by and between the City and the developer of
the project to be developed in the Woodridge Estates Reinvestment Housing Incentive District.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY
OF OTTAWA, KANSAS:
Section 1.
Findings. The Governing Body hereby finds that notice of the public hearing
conducted January 7, 2026, was duly made in accordance with the provisions of the Act.
Section 2.
Creation of Reinvestment Housing Incentive District. A Reinvestment Housing
Incentive District is hereby created within the City in accordance with the provisions of the Act, which shall
consist of the following described real property:
Lots 1 and 2, Block 6, Riverview Addition to the City of Ottawa, Franklin County, Kansas
(3.6 Acres), Section 25, Township 16, Range 19E1
A replat of this property has been approved by the governing body of the City of Ottawa,
Kansas, but not yet recorded as of the date of this resolution. As a result of the replat, the
legal description for the property described above is now:
1

601303.20072\ORDINANCE ESTABLISHING DISTRICT

2

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Lots 1-13 and Tract A, Woodridge Estates, a replat of Lots 1 and 2, Block 6, Riverview
Addition to the City of Ottawa, Franklin County, Kansas
The District’s boundaries do not contain any property not referenced in Resolution No. 2001-25,
which provided notice of the public hearing on the creation of the District and adoption of the Plan.
Section 3.
Approval of Development Plan. The Plan for the development or redevelopment
of housing and public facilities in the District, as presented to the Governing Body this date, is hereby
approved.
Section 4.
Other Governmental Units. If, within 30 days following the conclusion of the
public hearing on January 7, 2026, any of the following occurs, the Governing Body shall take action to
repeal this Ordinance:
(a)
The Board of Education of Unified School District No. 290, Franklin County, Kansas
(Ottawa) determines by resolution that the District will have an adverse effect on such school district; or
(b)
The Board of County Commissioners of Franklin County, Kansas, determines by
resolution that the District will have an adverse effect on such county.
Section 5.
Development Agreement. The Development Agreement is hereby approved in
substantially the form presented to the Governing Body this date, and the Mayor and City Clerk are
authorized and directed to execute such documents, with minor changes as may be approved by the City
Attorney.
Section 6.
Further Action. The Mayor, Interim City Manager, Finance Director, City Clerk,
and other City officials and employees, including the City Attorney, and Gilmore & Bell, P.C., are hereby
further authorized and directed to take such other actions as may be appropriate or desirable to accomplish
the purposes of this Ordinance.
Section 7.
Effective Date. This Ordinance shall be effective upon its passage by the
Governing Body, execution by the Mayor, and publication one time in the official City newspaper.
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PASSED by the Governing Body of the City of Ottawa, Kansas, and SIGNED by the Mayor, on
January 7, 2026.

(SEAL)

Mayor

ATTEST:

City Clerk
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DEVELOPMENT AGREEMENT
WOODRIDGE ESTATES
REINVESTMENT HOUSING INCENTIVE DISTRICT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is entered into effective as of January
__, 2026 (the “Effective Date”), by and between the CITY OF OTTAWA, Kansas, a municipal
corporation of the State of Kansas (“City”), and LEGACY HOMES OF OTTAWA LLC, a Kansas
limited liability company (“Developer”). The City and the Developer are each a “Party” and collectively
the “Parties.”

RECITALS

A.
Developer has acquired certain real property located within the boundaries of City and
described on Exhibit B attached hereto and incorporated herein by reference (the “Property”).
B.
Developer desires to develop the Property into approximately 13 single-family homes
located at the northwest corner of North Milner Street and East Wilson Street, with planned square footages
ranging from 1,065 square feet to 1,400 square feet (“Woodridge Estates Project”), all as more fully
described herein.
C.
City has determined that the construction of the Woodridge Estates Project will foster the
economic development of City and surrounding area of Franklin County, Kansas.
D.
Pursuant to K.S.A. 12-5241 et seq. (the ”RHID Act”), the City has the authority to
designate a reinvestment housing incentive district and to adopt a plan for development or redevelopment
of housing and public facilities in such reinvestment housing incentive district.
E.
Pursuant to the RHID Act, the Developer has requested the creation of a reinvestment
housing incentive district containing the Property, with all or a portion of the real property tax increment
generated from such district to be used to reimburse the Developer for RHID Eligible Expenses (as defined
below) of the Woodridge Estates Project.
F.
Pursuant to the RHID Act, the Governing Body of the City adopted Resolution No. 198625, in which the Governing Body made certain findings pursuant to the RHID Act, relative to the need for
housing in the City and declaring an intent to establish a Reinvestment Housing Incentive District in the
City.
G.
Pursuant to the RHID Act, the Governing Body of the City caused a certified copy of such
Resolution to be submitted to the Kansas Department of Commerce for approval, and the Kansas Secretary
of Commerce, in a letter dated August 14, 2025, agreed with the findings of the Governing Body of the
City as contained in such Resolution and approved the City’s ability to establish a Reinvestment Housing
Incentive District in the City.
H.
The Governing Body of the City adopted Resolution No. 2001-25 on December 3, 2025,
which called for a public hearing on January 7, 2026, to consider the adoption of the Development Plan
(the “Development Plan,” as attached hereto as Exhibit A), and the designation of a Reinvestment Housing
District over an area comprised of the Property (the “RHID”).

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I.
The Governing Body of the City opened the public hearing on January 7, 2026, and
following such public hearing, City passed Ordinance No.
on the same date (the “RHID
Ordinance”), adopting the Development Plan and designating the RHID.
J.
The Parties are authorized to enter into this Agreement and to complete the responsibilities
set forth herein with respect to the Woodridge Estates Project.

NOW, THEREFORE, in consideration of the foregoing and in consideration of the
mutual covenants and agreements herein contained, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
ARTICLE I
DEFINITIONS AND RULES OF CONSTRUCTION
Section 101. Incorporation of Recitals. The parties acknowledge and agree that the
Recitals set forth above are hereby incorporated as though more fully set forth herein.
Section 102. Definitions. Capitalized words used in this Agreement shall have the
meanings set forth in the Recitals to this Agreement or shall have the following meanings:
hereof.

“Agreement” means this Agreement as may be amended in accordance with the terms
“City” means the City of Ottawa, Kansas.

“City Administrative Fee” means an amount equal to 2.5% of the RHID Increment
collected for the preceding calendar year which fee is in addition to payment by the Developer of
the City Expenses.
“City Expenses” means the reasonable outside expenses actually incurred by the City
(with commercially reasonable supporting documentation) in connection with the proceedings
creating the RHID, approving the Development Plan and implementing this Agreement, including,
but not limited to, financial, legal, accounting or engineering consultants and appraisal fees, if any.
“Developer” means Legacy Homes of Ottawa LLC, a Kansas limited liability company,
and its lawful successors and assigns.
“Development Plan” means that plan for development of the RHID produced by the City
and the Developer and available for public inspection, as further described in Exhibit A hereto.
“Event of Default” means an event of default as defined in Section 802 of this Agreement.
“Permitted Delays” means any delay by a party performing its respective obligations
hereunder, as a result of a condition or event outside the reasonable control and through no fault
of the party so delayed, excluding conditions or events relating to the economic resources of such
party or of other parties, it being the intent of this Agreement to construe the terms “Permitted
Delays” to mean events such as natural disasters, fires, epidemics, failure of suppliers or
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subcontractors to perform in accordance with contractual obligations, and similar acts beyond the
control of the parties and does not include failure of a party to obtain necessary financing, a
business decision to delay or withdraw resources to a project, or similar acts related to monetary
circumstances.
“Reimbursable Project Costs Cap” means reimbursement from RHID Increment in an
amount not exceeding the lesser 22% of the total cost of the Woodridge Estates Project or
$576,000, such amount being calculated exclusive of actual financing costs and interest amounts
described in the definition of RHID Eligible Expenses, City Administrative Fees and City
Expenses.
“RHID” means the Woodridge Estates Reinvestment Housing Incentive District
containing within its boundaries the real property legally described on Exhibit B and depicted
on Exhibit C, each as attached hereto.
time.

“RHID Act” means K.S.A. 12-5241 et seq., as amended and supplemented from time to

“RHID Eligible Expenses” means actual expenses related to the RHID Project,
including actual financing costs and interest on amounts Developer was loaned to finance and pay
for other RHID Eligible Expenses from a third party in an arms-length transaction, and including
City Expenses related thereto, to the extent such expenses are permitted pursuant to the RHID Act
and provided such expenses (except for the City Administrative Fee and City Expenses) reflect the
Developer's actual costs to construct the Woodridge Estates Project. RHID Eligible Expenses shall
expressly exclude soft costs such as, without limitation, developer fees, loan origination fees,
contractor fees and overhead, legal expenses, insurance, operating costs, marketing costs, travel
costs, brokers' commissions, or the value of any work self-performed by Developer. RHID Eligible
Expenses shall also include the costs for site preparation, including site work and landscaping.
“RHID Fund” means the Woodridge Estates Reinvestment Housing Incentive District
Fund created pursuant to Section 302(a) hereof.
“RHID Increment” means real property taxes produced from that portion of the current
assessed valuation of real property within the RHID in excess of an amount equal to the total
assessed value of such real property on the effective date of the establishment of the RHID, less
such real property taxes attributable to mill levies which, pursuant to State law, cannot be used to
finance improvements under the RHID Act.
“RHID Project” means the portion of the Woodridge Estates Project financed with RHID
Increment.
“RHID Term” shall have the meaning set forth in Section 302(c) of this Agreement.
“Special Counsel'' means Gilmore & Bell, P.C., Wichita, Kansas, or such other firm of

attorneys selected by the City with expertise in reinvestment housing incentive district financing in the
State.
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“State” means the State of Kansas.
“Woodridge Estates Project” means the construction of approximately 13 single-family
homes located at the northeast corner of North Milner Street and East Wilson Street, with planned
square footages ranging from 1,065 square feet to 1,400 square feet, together with all related
improvements.
Section 102. Rules of Construction. The following rules of construction shall apply
in construing the provisions of this Agreement except as otherwise expressly provided or unless
the context otherwise requires:

A.
The terms defined in this Article and throughout the Agreement include the plural
as well as the singular.
B.
All accounting terms not otherwise defined herein shall have the meanings assigned
to them, and all computations herein provided for shall be made, in accordance with generally
accepted governmental accounting principles.
C.
All references herein to “generally accepted governmental accounting principles”
refer to such principles in effect on the date of the determination, certification, computation or
other action to be taken hereunder using or involving such terms.
D.
All references in this Agreement to designated “Articles,” “Sections” and other
subdivisions are to be the designated Articles, Sections and other subdivisions of this Agreement
as originally executed.
E.
The words “herein,” “hereof' and “hereunder” and other words of similar import
refer to this Agreement as a whole and not to any particular Article, Section or other subdivision.
F.
The Article and Section headings herein are for convenience only and shall not
affect the construction hereof.
ARTICLE II
DEVELOPMENT STRUCTURE
Section 201. Scope of Agreement. This Agreement applies to the development of the
Woodridge Estates Project utilizing RHID Increment and other funds available to the Developer.
Section 202. Overview of Development. Subject to the terms of this Agreement, the
parties agree that the Developer shall cause the Woodridge Estates Project to be completed
pursuant to this Agreement, and the Developer shall bear the costs of the development of the
Woodridge Estates Project. Upon satisfaction of the conditions set forth herein, the City will
reimburse the Developer for RHID Eligible Expenses for the RHID Project.
Section 203. Modification of Improvements. The Woodridge Estates Project described
herein shall only be materially amended or modified (i) with the prior written consent of the City,
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which consent shall not be unreasonably withheld and which shall be granted so long as the
proposed amendment or modification is consistent with the general spirit and intent of this
Agreement, (ii) with an appropriate reduction in the incentives provided to Developer if the scope
of such improvements is materially reduced, and (iii) in full compliance with applicable law.

ARTICLE III
FINANCING
Section 301. Project Costs, City Expenses and City Administrative Fee. The Developer
shall be responsible for the costs of the Woodridge Estates Project, which costs shall not be an
obligation of the City. City Expenses shall be due and payable within 30 days after the City
provides the Developer with an invoice therefor. City Expenses and the City Administrative Fee
shall be paid from RHID Increment pursuant to Section 302 of this Agreement; provided that if
the RHID Increment then on deposit is insufficient to pay City Expenses due, the Developer shall
advance funds to pay the City Expenses. To the extent the Developer has advanced funds to pay
the City Expenses, such amounts may be reimbursed from the RHID Increment in accordance with
Section 302 of this Agreement and such reimbursements shall not be counted against the
Reimbursable Project Costs Cap.
Section 302.

RHID Financing.

(a)
RHID Fund. Pursuant to the RHID Act and subject to all applicable laws, the
policies and procedures of the City and approval by the Governing Body of the City, the City
shall establish the RHID Fund as a segregated fund within the treasury of the City, which shall
be held and administered by the City in accordance with this Agreement and the RHID Act.
Revenues collected from the RHID Increment received by the City shall be deposited in the RHID
Fund and shall not be commingled with any other funds of the City.
Reimbursement of RHID Eligible Expenses. Except as otherwise set forth herein
or as required by the RHID Act, all RHID Increment shall be available for and dedicated to pay
RHID Eligible Expenses for the RHID Project for the duration of the RHID Term or until the City's
obligations under this Agreement have been satisfied, whichever is first, and shall be utilized to
reimburse the Developer for RHID Eligible Expenses paid by the Developer and/or the City
Administrative Fee and City Expenses, according to the procedures set forth herein, in the
following order of priorities:
(b)

First, to pay or reimburse the City for the City Administrative Fee and any City Expenses
not paid by the Developer; and
Second, to reimburse the Developer for RHID Eligible Expenses paid by the
Developer.

(c)
Term. The RHID Term shall commence on the Effective Date and expire on the
earlier of: (i) the date Developer has been reimbursed for RHID Eligible Expenses in the amount
of the Reimbursable Project Costs Cap; or (ii) when the City has released all RHID Increment
amounts that have been collected for 20 years after the date of the RHID Ordinance ((i) and (ii),
collectively, the RHID Term), unless the City takes the appropriate actions required by law to
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terminate the RHID or amend the RHID Term. Except as provided herein or as required by law,
the City shall not, under any circumstances without the written consent of the Developer, terminate
the RHID or amend the RHID Increment or reduce the RHID Term in a manner which would
adversely impact or impair the ability of the Developer to be reimbursed for RHID Eligible
Expenses.
(d) “Pay As You Go” RHID Financing. Any RHID Increment available to the
Developer for payment of RHID Eligible Expenses shall be by reimbursement to the Developer
for RHID Eligible Expenses paid by the Developer, and no special obligation bonds shall be issued
to advance funds for payment of such expenses.
ARTICLE IV
ELIGIBLE EXPENSE REIMBURSEMENT PROCEDURES
Section 401.

Reimbursement of Eligible Expenses.

(a)
Disbursement Times. Except as provided herein, the City agrees to disburse RHID
Increment in accordance with Section 302 of this Agreement within 45 days of receipt of such
RHID Increment by the City; provided, the City is not obligated to disburse RHID Increment if
less than $10,000 has been received and is on deposit in the RHID Fund (unless such disbursement
is the final disbursement of RHID Increment, in which event all RHID Increment will be disbursed
in accordance with the terms hereof regardless of the amount).
(b)
Submission of Certification of Expenditures. The Developer shall submit to the
City's Director of Finance a Certification of Expenditures (in substantially the form attached to
this Agreement as Exhibit D, or other form approved by the City) signed by the Developer, with
supporting documentation identifying the RHID Eligible Expenses for which the Developer seeks
reimbursement, including reference to the specific line item on Exhibit D to which each such
expense relates, provided that any actual financing costs and interest on amounts Developer was
loaned to finance and pay for other RHID Eligible Expenses from a third party in an arms-length
transaction shall be certified as a separate expense in Certifications of Expenditures and provided
further that RHID Eligible Expenses for such actual interest shall not be calculated or reimbursed
on a compound basis. The supporting documentation shall be copies of invoices reflecting
amounts billed, copies of checks, evidence of wire transfer or other payment of cash by the
Developer for such expenses, lien waivers or other evidence that no mechanic's liens exist with
respect to the construction of the RHID Project for which reimbursement is sought, and such other
documentation as the City shall reasonably request.
(c)
Details of Certification; City Right to Perform Due Diligence. Each Certification
of Expenditures shall contain a certification by the Developer that each RHID Eligible Expense
submitted for reimbursement is an eligible expense, that such expense has been incurred by the
Developer, and that such expense has not been previously submitted for reimbursement hereunder.
The City reserves the right to have its engineer or other agents or employees inspect all work in
respect of which a Certification of Expenditure is submitted, to retain an outside accountant,
engineer or attorney to evaluate and assist with processing Certifications of Expenditures for
compliance with this Agreement, to examine the Developer's records and other records relating to
all RHID Eligible Expenses to be paid, and to obtain from such parties such other information as
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is reasonably necessary for the City to evaluate compliance with the terms hereof. Developer
hereby agrees to pay all actual and verifiable third-party expenses incurred by the City pursuant to
this subsection (c), which expenses shall be City Expenses.
(d)
Certification of Expenditures. The City shall either accept and certify or reject
each Certification of Expenditures within 60 days after the submission thereof. If the City
determines that any cost identified as a RHID Eligible Expense is ineligible for reimbursement,
the City shall so notify the Developer in writing within said 45-day period, identifying the
ineligible cost and the basis for determining the cost to be ineligible, whereupon the Developer
shall have the right to identify and substitute other costs of the RHID Project as RHID Eligible
Expenses, as applicable, with a supplemental Certification of Expenditures. The City may also
request such additional information from the Developer as may be required to process the
requested certification and the time limits set forth in this paragraph shall be extended by the
duration of time necessary for Developer to respond to such request by the City. The City's
identification of any ineligible costs shall not delay the City's approval of the remaining costs on
the Certification of Expenditures that the City determines to be eligible.
(e)
Conditions Precedent. As a condition precedent to disbursement of RHID
Increment to the Developer, the Developer must (i) not be, in the sole judgment of the City, in
material default under this Agreement (subject, however, to any applicable cure period), (ii) be
current on the payment of all taxes to the State and its political subdivisions, including the
City,(iii) have submitted a Certification of Expenditure for an RHID Eligible Expense, along with
reasonable documents of such expenditure, and (iv) the expense identified in the Certification of
Expenditure must be one that has occurred and for which the Developer is seeking reimbursement.
If funds are available for disbursement in the RHID Fund but the conditions set forth in this
paragraph have not, in the reasonable judgment of the officer or agent of the City charged with

disbursing such funds, been met, the City shall provide written notice of such failure to the appropriate
party (a “Condition Failure Notice”) within 30 days of receipt of such RHID Increment and shall retain the
funds that would have otherwise been disbursed to such party. If the condition(s) are met to the reasonable
satisfaction of such officer or agent of the City within 30 days from the date of the Condition Failure Notice,
the disbursement that was withheld shall be promptly made. In the event a party disagrees in good faith
with the determination of such officer or agent of the City, such party may appeal the determination to the
Governing Body of the City by providing written notice to the City Clerk within 10 days of the end of the
30-day period, and the retained funds shall not be disbursed until the Governing Body directs the
disbursement. Such notice of appeal shall reasonably describe the basis for such appeal. The City agrees
to conduct a public hearing on such appeal within 60 days of receipt of such notice and to provide the party
requesting such appeal with not less than 10 days written notice of the hearing date, time and location. The
determination of the Governing Body with respect to the disbursement shall be final. Any determination
by the officer or agent of the City or by the Governing Body under this Section 401 that funds should not
be disbursed shall apply as to that particular disbursement only and shall not impair or in any manner affect
future disbursements.

Section 402. Effect of Reimbursement if Termination. Notwithstanding anything
herein to the contrary, if this Agreement has been terminated in accordance with its terms, the City
shall have no obligation to reimburse the Developer for any RHID Eligible Expenses following
the termination of this Agreement regardless of when the expense was submitted to the City.
ARTICLE V
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DEVELOPMENT OF THE PROJECT; TIMING AND APPROVALS
Section 501. Development of the Project. The Developer agrees to pursue
construction of the Woodridge Estates Project in accordance with the requirements of this
Agreement and all City zoning, subdivision regulations, and building requirements applicable
thereto. Notwithstanding any other provision of this Agreement to the contrary, but subject to
Permitted Delays, if construction of the Woodridge Estates Project, including the RHID Project,
is not substantially completed by December 31, 2028, as evidenced by a certificate of occupancy
for all residential units included in the Woodridge Estates Project, the City may elect to terminate
this Agreement if, on or before 30 days after the City's written notice to Developer of such default,
Developer has not cured such default. The provisions of Section 80l(b) of this Agreement relating
to the ability to cure default shall not apply to the City's option to terminate pursuant to this Section.
Section 502. Project Approval. The Developer shall submit to the City all engineering
and construction plans as required by the construction codes adopted by the City for the Woodridge
Estates Project. Whenever this Agreement requires the Developer to submit plans, drawings or
other documents to the City for approval, the City shall use its standard procedures for review and
approval of such submissions so as to not unduly hinder or delay the Woodridge Estates Project;
provided, however, that the City may issue permits for the construction of dwelling units prior to
the completion of site improvements, and provided, further, that no certificate of occupancy shall
be provided for any dwelling unit until site improvements are completed.
Section 503. Insurance and Indemnification.
(a)
Indemnification. The Developer agrees to defend, indemnify and hold the City,
its officers, agents and employees, harmless from and against all liability for damages, costs, and
expenses, including attorney fees, arising out of any claim, suit, judgment, or demand to the extent
resulting from the negligent and/or intentional acts or omissions of the Developer, its contractors,
subcontractors, agents, or employees in the performance of this Agreement. The Developer
shall give the City written notice of any claim, suit, or demand which may be subject to this
provision at the earliest feasible date.
(b)
Insurance. Not in derogation of the indemnification provisions set forth herein,
the Developer shall, at its sole cost and expense, throughout the term of this Agreement (to the
extent the Developer has not sold the Woodridge Estates Project, or any portion thereof, to third
parties), insure and keep insured any vertical structures built in the RHID against direct loss or
damage occasioned by fire, flood, and extended coverage perils through insurers with a Best's
rating of no less than “A-” and/or that is reasonably acceptable to the City and without coinsurance. The insurance shall be for an amount that is not less than the full replacement cost of
such structures.
Section 504. Federal, State and Local Laws. The Developer agrees to abide by, and
the Woodridge Estates Project shall be completed in conformity with, all applicable federal, state,
and local laws and regulations.
Section 505. Nondiscrimination. The Developer, for itself and its successors and assigns,
agrees that throughout the RHID Term:
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(a)
Developer shall observe the provisions of the Kansas Act Against Discrimination
(K.S.A. 44-1001 et seq.) and shall not discriminate against any person in the performance of work
under the Agreement because of race, religion, color, sex, national origin, ancestry or age;
(b)
In all solicitations or advertisements for employees, Developer shall include the
phrase, “equal opportunity employer,” or a similar phrase to be approved by the Kansas Human
Rights Commission (the “Commission”);
(c)
If Developer fails to comply with the manner in which Developer reports to the
Commission in accordance with the provisions of K.S.A. 44-1031 and amendments thereto,
Developer shall be deemed to have breached the Agreement and it may be canceled, terminated
or suspended, in whole or in part, by the City;
(d)
If Developer is found guilty of a violation of the Kansas Act Against Discrimination
under a decision or order of the Commission which has become final, Developer shall be deemed
to have breached the Agreement and it may be canceled, terminated or suspended, in whole or in
part, by the City; and
Developer shall include the provisions of Sections 505(a) through (d) above in
every contract, subcontract or purchase order so that such provisions will be binding upon such
contractor, subcontractor or vendor.
(e)

Developer further agrees that throughout the RHID Term, Developer shall abide by the
Kansas Age Discrimination in Employment Act (K.S.A. 44-1111 et seq.) and the applicable
provisions of the Americans with Disabilities Act (42 U.S.C. 12101 et seq.) as well as all other
federal, state and local laws, ordinances and regulations applicable to the Woodridge Estates
Project and to furnish any certification required by any federal, state or local laws, ordinances and
regulations applicable to the Woodridge Estates Project.
Section 506. City and Other Governmental Permits. Before commencement of
construction or development of any buildings, structures or other work or improvement, the
Developer shall, at its own expense, secure or cause to be secured any and all permits which may
be required by the City and any other governmental agency having jurisdiction as to such
construction, development, or work.
ARTICLE VI
REAL ESTATE TAXES
Section 601. Agreement to Pay Taxes and Assessments; Right to Protest. The
Developer agrees that it shall (to the extent the Developer has not sold the Woodridge Estates
Project, or any portion thereof, to third parties) pay taxes and assessments for the Woodridge
Estates Project promptly on or before the due date of such tax bills. The Developer shall have the
right to pay said taxes under protest in accordance with applicable law and agrees to provide

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prompt written notice to the City if it elects to pay said taxes under protest or of any appeal of real
estate taxes or valuation of any property within the RHID by the County Appraiser.
ARTICLE VII
USE, ASSIGNMENT, SALE AND LEASE
Section 701. Use Restrictions. The allowable uses on the Property and within the RHID
will be subject to the lawful zoning power of the City and will not be subject to use restrictions
solely by virtue of this Agreement.
Section 702. Restriction on Transfer. There shall be no restriction in the sale,
transfer or leasing of the Property within the RHID.
Section 703. Transfer of Obligations. The rights, duties and obligations hereunder of
the Developer may be assigned, in whole or in part, to another entity, subject to the approval of
the Governing Body of the City. Any proposed assignee shall have qualifications and financial
responsibility, as reasonably determined by the Governing Body, necessary and adequate to fulfill
the obligations of the Developer under this Agreement. Any proposed assignee shall, by
instrument in writing, for itself and its successors and assigns, and expressly for the benefit of the
City, assume all of the obligations of the Developer under this Agreement and agree to be subject
to all the applicable conditions and restrictions to which the Developer is subject. The City shall
notify the Developer within 45 days of receipt by the City of a written request to approve a
proposed assignment under this Section of its approval or disapproval. All written requests for
approval of a proposed assignment shall include a description of the qualifications and financial
resources of the proposed assignee and the form of a proposed assignment and assumption
agreement. If the City elects to disapprove a requested assignment, it will include in its notice to
the Developer the basis for the disapproval. The Developer shall not be relieved from any
obligations set forth herein unless and until the City specifically agrees to release the Developer.
The Developer agrees to record the assignment in the office of the register of deeds of Franklin
County, Kansas, in a timely manner following the execution of such agreement.
Notwithstanding anything herein to the contrary, the Developer may, upon prior written notice to
the City (and without the need for the City's approval), assign this Agreement to an entity that is
more than 50% owned or controlled by the Developer; provided such entity assumes in writing
all obligations of the Developer under this Agreement.
Section 704. Assumption of Obligations. The parties' obligations pursuant to this
Agreement, unless earlier satisfied, shall inure to and be binding upon the heirs, executors,
administrators, successors and assigns of the respective parties as if they were in every case
specifically named and shall be construed as a covenant running with the land, enforceable against
the purchasers or other transferees as if such purchaser or transferee were originally a party and
bound by this Agreement. Notwithstanding the foregoing, no tenant of any part of the RHID shall
be bound by any obligation of Developer solely by virtue of being a tenant; provided, however,
that no transferee or owner of property within the RHID shall be entitled to any rights whatsoever
or claim upon the RHID Increment, except as specifically authorized in writing by the Developer
and as provided in this Agreement.
Section 705. Change of Ownership. The Developer shall promptly provide written notice
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to the City of any change in the owners/members owning/comprising more than 50% of such
entity.
ARTICLE VIII
BREACH, DEFAULTS AND REMEDIES
Section 801. Breach. Any noncompliance by the Developer or City with the provisions
of this Agreement, including the time limits and the manner for the completion of the Woodridge
Estates Project as herein stated, except for Permitted Delays, shall constitute a breach of this
Agreement and the breaching party shall be granted an opportunity to cure as provided in Section
802 prior to such breach being deemed an “Event of Default” as defined in Section 802.
Section 802. Event of Default-General. The following events shall constitute an
“Event of Default” under this Agreement:
(a)
Subject to the extensions of time set forth in Section 807, failure or delay by either
party to perform any term or provision of this Agreement, after receiving written notice and failing
to cure, as set forth in subsection (b) below, constitutes an Event of Default under this Agreement.
A party claiming a breach (claimant) shall give written notice of breach to the other party,
specifying the breach complained of.
(b)
The claimant shall not institute proceedings against the other party, nor be entitled
to damages if the Developer or the City within 14 days from receipt of such written notice, with
due diligence, commences to cure, correct or remedy such failure or delay and shall complete such
cure, correction or remedy within 30 days from the date of receipt of such notice or, if such cure,
correction or remedy by its nature cannot be effected within such 30 day period, such cure,
correction or remedy is diligently and continuously prosecuted until completion thereof. In the
event the breaching party refuses or is unable to cure, correct or remedy such breach within the
time limits stated in this subsection, then such failure shall be deemed an Event of Default and
the nonbreaching party shall be entitled to the remedies set forth in Section 803.
Section 803.

Remedies on Event of Default.

(a)
Whenever any Event of Default by Developer shall have occurred and be
continuing, subject to applicable cure periods, the City may take one or more of the following
remedial steps:
(i)
compel specific performance (except for performance of the construction of the
Woodridge Estates Project);
(ii)
withhold or apply funds from the RHID Fund to such extent as is necessary to
protect the City from loss and/or to ensure that such portions of the Woodridge Estates Project that
the City deems are in the best interest of the City are successfully implemented in a timely fashion;
(iii) refuse to approve any further reimbursements for RHID Eligible Expenses and
make any disbursements until such Event of Default is cured by Developer;
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(iv)

pursue any remedy at law and in equity; and/or

(v)

terminate this Agreement.

(b)
The City may pursue any available remedy at law or in equity by suit, action,
mandamus or other proceeding to enforce and compel the specific performance of the duties and
obligations of the Developer as set forth in this Agreement (except for specific performance of
the construction of the Woodridge Estates Project), to enforce or preserve any other rights or
interests of the City under this Agreement or otherwise existing at law or in equity and to recover
any damages as provided by State law incurred by the City resulting from such Developer default.
(c)
Whenever any material Event of Default by the City shall have occurred and be
continuing, subject to applicable cure periods, the Developer shall have the right, but not the
obligation to:
(i)

terminate this Agreement; and/or

(ii)

pursue any remedy at law or in equity.

(d)
The Developer may pursue any available remedy at law or in equity by suit, action,
mandamus or other proceeding to enforce and compel the specific performance of the duties and
obligations of the City as set forth in this Agreement, to enforce or preserve any other rights or
interests of the Developer under this Agreement or otherwise existing at law or in equity and to
recover any damages as provided by State law incurred by the Developer resulting from such City
default.
(e)
Except as otherwise expressly stated in this Agreement, the rights and remedies of
the parties are cumulative, and the exercise by either party of one or more of such rights or remedies
shall not preclude the exercise by it, at the same or different times, of any other rights or remedies
for the same default or any other default of the other party. No waiver made by either party shall
apply to obligations beyond those expressly waived. Any delay by either party in instituting or
prosecuting any such actions or proceedings or otherwise asserting its rights under this Section
shall not operate as a waiver of such rights or limit them in any way.
Notwithstanding any termination of this Agreement by the Developer as permitted herein,
the Developer shall continue to be liable for all City Expenses, only to the extent such City
Expenses are incurred through the date of termination of this Agreement.
Section 804.

Acceptance of Service of Process.

(a)
In the event that any legal action is commenced by the Developer against the City,
service of process on the City shall be made by personal service upon the City Clerk or in such
other manner as may be provided by law.
(b)

In the event that any legal action is commenced by the City against the Developer,

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service of process on the Developer shall be made to:
Legacy Homes of Ottawa LLC
1305 S. Elm Steet
Ottawa, KS 66067

Section 805. Rights and Remedies are Cumulative. Except as otherwise expressly stated
in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either
party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or
different times, of any other rights or remedies for the same default or any other default by the
other party.
Section 806. Inaction Not a Waiver of Default. Any failures or delays by any party in
asserting any of its rights and remedies as to any default shall not operate as a waiver of any default
or of any such rights or remedies, or deprive either such party of its right to institute and maintain
any action or proceedings which it may deem necessary to protect, assert or enforce any such rights
or remedies.
Section 807. Permitted Delays. Notwithstanding anything in this Agreement to the
contrary, any Permitted Delays by a party performing its respective obligations hereunder shall
not render such party in default or breach hereof (or give rise to any other party's exercise of rights
or remedies hereunder, including, without limitation, the City's termination of this Agreement) and
shall result in automatic good faith extensions of any starting or completion dates affected thereby,
provided such delayed party continues to exercise good faith and due diligence in attempting to
resolve the cause of any such delay and to continue to perform hereunder.
ARTICLE IX
GENERAL PROVISIONS
Section 901. Time of Essence. Time is of the essence of this Agreement. Each party to
this Agreement will make every reasonable effort to expedite the subject matters hereof and
acknowledges that the successful performance of this Agreement requires its continued
cooperation.
Section 902. Amendment. This Agreement, and any exhibits attached hereto, may be
amended only by the mutual consent of the parties, upon official action of the City's Governing
Body approving said amendment, and by the execution of said amendment by the parties to this
Agreement or their successors in interest.
Section 903. Immunity of Officers, Employees and Members. No personal recourse
shall be had for the payment of the cost of the RHID Project or for any claim based thereon or
upon any representation, obligation, covenant or agreement in this Agreement against any past,
present or future owner, officer, manager, member, employee or agent of a party to the Agreement,
under any rule of law or equity, statute or constitution or by the enforcement of any assessment or
penalty or otherwise, and any liability of any such officers, members, directors, employees or
agents is hereby expressly waived and released as a condition of and consideration for the
execution of this Agreement. Furthermore, no past, present or future owner, officer, manager,
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member, employee or agent of a party to this Agreement shall be personally liable to the City, the
Developer or any successor in interest, for any default or breach by the City, Developer or any
successor in interest.
Section 904. Right of Access. For the purposes of assuring compliance with this
Agreement, representatives of the City shall have the right of access to the Woodridge Estates
Project, without charges or fees, at normal construction hours during the period of construction for
purposes strictly related to this Agreement, including, but not limited to, the inspection of the work
being performed in constructing the improvements. Such representatives of the City shall carry
proper identification, and shall not in any manner impair, hinder or interfere with the
construction activity; provided, however, nothing herein is intended to limit or restrict rights the
City has to inspect or otherwise have access to the Woodridge Estates Project in the performance
of its governmental role.
Section 905. No Other Agreement. Except as otherwise expressly provided herein, this
Agreement and all documents incorporated herein by reference supersedes all prior agreements,
negotiations and discussions, both written and oral, relative to the subject matter of this Agreement
and is a full integration of the agreement of the parties.
Section 906. Severability. If any provision, covenant, agreement or portion of this
Agreement, or its application to any person, entity or property, is held invalid or unenforceable in
whole or in part, this Agreement shall be deemed amended to delete or modify, in whole or in part,
if necessary, the invalid or unenforceable provision or provisions, or portions thereof, and to alter
the balance of this Agreement or the Development Plan in order to render the same valid and
enforceable. In no such event shall the validity or enforceability of the remaining valid portions
hereof be affected.
Section 907. Amendment to Carry Out Intent. If any prov1s1on, covenant, agreement
or portion of this Agreement, or its application to any person, entity or property, is held invalid,
the parties shall take such reasonable measures including but not limited to reasonable amendment
of this Agreement to cure such invalidity where the invalidity contradicts the clear intent of the
parties in entering into this Agreement.
Section 908. Governing Law and Venue. For any claims arising out of this
Agreement, performance or non-performance under this Agreement, and for any request or
demand for damages resulting from the breach or default under this agreement, the sole and
exclusive venue for litigation shall be the District Court in Franklin County, Kansas or the
U.S. District Court for the District of Kansas in Kansas City, Kansas. This Agreement shall be
governed by and construed in accordance with the laws of the State of Kansas without regard to
conflict of laws principles. In the event litigation is filed by one party against another to enforce
its rights under this Agreement, the prevailing party, as determined by the Court's judgment, shall
be entitled to reasonable attorneys' fees and litigation expenses for the relief granted, to the extent
permitted by law.
Section 909. Notice. All notices and requests required pursuant to this Agreement shall
be in writing and shall be sent as follows:
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To the City:
Ms. Melissa Sherman, City Clerk
City of Ottawa
Ottawa City Hall
101 S. Hickory Street
Ottawa, KS 66067
With copy to:
Mr. Kevin M. Cowan, City Special Counsel
Gilmore & Bell, P.C.
One Main Place
100 N. Main, Suite 800
Wichita, KS 67203
To the Developer:
Mr. George Ogle
Legacy Homes of Ottawa LLC
1305 S. Elm Street
Ottawa, KS 66067
With copy to:
__________
__________
or at such other addresses as the parties may indicate in writing to the other either by
personal delivery, national recognized overnight courier (e.g., FedEx), or by registered mail, return
receipt requested, with proof of delivery thereof. Mailed notices shall be deemed effective on the
third day after mailing; all other notices shall be effective when delivered.
Section 910. Not a Partnership. The provisions of this Agreement are not intended to
create, nor shall they in any way be interpreted or construed to create, a joint venture, partnership,
or any other similar relationship between the parties.
Section 911. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same agreement.
Section 912. Recordation of Agreement. The parties agree to execute and deliver a
memorandum of this Agreement in mutually acceptable form for recording in the real property
records of Franklin County, Kansas.
Section 913. Consent or Approval. Except as otherwise provided in this Agreement,
whenever consent or approval of either party is required, such consent or approval shall not be
unreasonably withheld.
Section 914. Survivorship. Notwithstanding the termination of this Agreement,
Developer's obligations with respect to Section 503(a), Section 903 and any other terms and
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conditions which by their nature should survive termination, shall survive the termination of this
Agreement.
Section 915. Incorporation of Exhibits. The Exhibits attached hereto and incorporated
herein by reference are a part of this Agreement to the same extent as if fully set forth herein.

Section 916. Cash Basis and Budget Laws. The right of the City to enter into this
Agreement is subject to the provisions of the Cash Basis Law (K.S.A. §§10-1100 et seq.), the
Budget Law (K.S.A. § 79-2935 et seq.), and other laws of the State. This Agreement shall be
construed and interpreted in such a manner as to ensure the City shall at all times remain in
conformity with such laws.
Section 917. Reporting. The Developer agrees to timely provide the City sufficient
information to comply with the economic development incentive reporting requirements enacted
by the State of Kansas in Chapter 54 of the 2025 Session Laws of Kansas, which became effective
on July 1, 2025.

[Remainder of Page Intentionally Left Blank]

601303.20072\DEVELOPMENT AGREEMENT

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IN WITNESS WHEREOF, City and Developer have caused this Agreement to be executed in
their respective names and City has caused its seal to be affixed thereto, and attested as to the date first
above written.

CITY OF OTTAWA, KANSAS
(SEAL)

By:

Mayor

ATTEST:

By:

City Clerk

ACKNOWLEDGMENT
STATE OF KANSAS
COUNTY OF FRANKLIN

)
) SS:
)

The foregoing instrument was acknowledged before me this ___ day of January, 2026, by Zach
Clayton, Mayor of the City of Ottawa, Kansas.
Notary Public

(SEAL)

Typed Name of Notary Public

My Appointment Expires:

601303.20072\DEVELOPMENT AGREEMENT

(Development Agreement Signature Page)

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LEGACY HOMES OF OTTAWA LLC

By:
Name: George Ogle
Title:
_________
“TENANT”
ACKNOWLEDGMENT
STATE OF KANSAS
COUNTY OF FRANKLIN

)
) SS:
)

The foregoing instrument was acknowledged before me this ___ day of January, 2026, by George
Ogle, _____________ of Legacy Homes of Ottawa LLC, a Kansas limited liability company.
Notary Public

(SEAL)

Typed Name of Notary Public

My Appointment Expires:

601303.20072\DEVELOPMENT AGREEMENT

(Development Agreement Signature Page)

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EXHIBIT A
DEVELOPMENT PLAN

[see following pages]

601303.20072\DEVELOPMENT AGREEMENT

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DEVELOPMENT PLAN INTRODUCTION
On July 16, 2025, the Governing Body of the City of Ottawa, Kansas (the “City”) adopted Resolution No.
1986-25, that found and determined that:
1. There is a shortage of quality housing of various price ranges in the City despite the best efforts of
public and private housing developers;
2. The shortage of quality housing can be expected to persist and that additional financial incentives
are necessary in order to encourage the private sector to construct or renovate housing in the City;
3. The shortage of quality housing is a substantial deterrent to the future economic growth and
development of the City; and
4. The future economic well-being of the City depends on the Governing Body providing additional
incentives for the construction or renovation of quality housing in the City.
Based on these findings and determinations, the Governing Body proposed the establishment of a
Reinvestment Housing Incentive District within the City pursuant to the Kansas Reinvestment Housing
Incentive District Act (K.S.A. 12-5241 et seq.).
Following the adoption of Resolution No. 1986-25, such Resolution was published once in the official
newspaper of the City, and a certified copy of such Resolution was submitted to the Secretary of Commerce
(“Secretary”) for approval of the establishment of the Reinvestment Housing Incentive District in the City,
as required by K.S.A. 12-5244(c).
On August 14, 2025, the Secretary provided written confirmation, approving the establishment of the
Reinvestment Housing Incentive District (the “District”).
DEVELOPMENT PLAN ADOPTION
K.S.A. 12-5245 states that once the City receives approval from the Secretary for the development of a
Kansas Reinvestment Housing Incentive District, the Governing Body may adopt a plan for the
development or redevelopment of housing and public facilities within the proposed district.

DEVELOPMENT PLAN
As a result of the shortage of quality housing within the City of Ottawa, Kansas, the City proposes this
development plan (the “Development Plan”) to assist in the development of quality housing within the City.
1. The legal description and map of the proposed district are attached as Exhibits A and B hereto.
2. The assessed valuation of all real estate within the District for 2025 is approximately $12,750 on
land and $0 on all improvements, as listed on Exhibit C, attached hereto.
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3. The names and addresses of the owners of record for the real estate within the District is:
Owner of Real Property:

Legacy Homes of Ottawa LLC
1305 S. Elm Street
Ottawa, KS 66067

4. The housing and public facility project that are proposed to be constructed include the following:
The housing and public facility project (the “Project”) will include the
development of 13 single-family homes located at the northwest corner of North
Milner Street and East Wilson Street. The homes have planned square footages
ranging from 1,065 square feet to 1,400 square feet. The Project is expected to
include land acquisition (the “Land”) and the construction and extension of certain
public infrastructure improvements, including, but not limited to, the following
anticipated improvements: site preparation, construction of interior streets and
roadway, street grading, paving, curbing, guttering, and surfacing, storm sewer,
sanitary sewer, underground water, gas and electric services and connections,
sidewalks, signage, and related improvements located within the boundaries of the
District (collectively, the “Public Improvements”).
5. The names, addresses, and specific interests in the real estate in the District of the developer (the
“Developer”) responsible for development of the housing and public facilities are:
The Developer and owner of property in the District will be:
Legacy Homes of Ottawa LLC1
1302 S. Elm Street
Ottawa, KS 66067
6.

The Governing Body of the City does not expect to receive any contractual assurances from the
Developer guaranteeing the financial feasibility of specific projects within the District; provided,
however, that the City and the Developer expect to enter into a Development Agreement (the
“Development Agreement”) which, as supplemented and amended from time to time, is expected
to include a project construction schedule, a description of projects to be constructed, financial
and other obligations of the Developer, and financial and administrative obligations of the City.

7. Baker Tilly Municipal Advisors, LLC, has conducted an analysis to determine whether the public
benefits derived from the District will exceed the costs and that the income from the District,
together with other sources of revenue, will be sufficient to pay for the Land acquisition and Public
Improvements to be undertaken in the District. The analysis estimates the available property tax
revenues that will be generated from the District, less existing property taxes and certain
unavailable property tax revenues, to determine the revenue stream available to support
reimbursement to the Developer for all or a portion of the costs of financing Land acquisition and
the Public Improvements. The estimates indicate that the revenue realized from the Project, together
with other available sources of revenue, will be adequate to pay the costs of Land acquisition and
the Public Improvements.

91749356.3

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EXHIBIT A
LEGAL DESCRIPTION OF PROPOSED
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

Lots 1 and 2, Block 6, Riverview Addition to the City of Ottawa, Franklin County, Kansas (3.6 Acres),
Section 25, Township 16, Range 19E1
A replat of this property has been approved by the governing body of the City of Ottawa, Kansas, but not
yet recorded as of the date of this resolution. As a result of the replat, the legal description for the property
described above is now:
1

Lots 1-13 and Tract A, Woodridge Estates, a replat of Lots 1 and 2, Block 6, Riverview Addition to the
City of Ottawa, Franklin County, Kansas

91749356.3

A-1

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EXHIBIT B
MAP OF PROPOSED RHID BOUNDARIES FOR THE
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

The proposed District contains tax parcel ID number: 030-087-25-0-10-04-005.00-0.

601303.20072\DEVELOPMENT PLAN

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EXHIBIT C
2025 ASSESSED VALUATION
Parcel ID
030-087-25-0-10-04-005.00-0
Total

601303.20072\DEVELOPMENT PLAN

2025 Assessed Value
(Land)
$ 12,758
$ 12,758

2025 Assessed Value (Improvements)
$ 0.00
$ 0.00

C-1

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EXHIBIT D
COMPREHENSIVE FINANCIAL FEASIBILITY ANALYSIS
[ATTACHED]

601303.20072\DEVELOPMENT PLAN

D-1

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Woodridge Estates
Reinvestment Housing Incentive District
Financial Feasibility Study

Prepared for the City of Ottawa, Kansas

November 10, 2025
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Contents

Executive Summary .................................................................................................................................... 1
Purpose ........................................................................................................................................................ 2
The Woodridge Estates RHID .................................................................................................................... 3
Expenditures ............................................................................................................................................... 4
Revenues ..................................................................................................................................................... 5
Conclusion ................................................................................................................................................... 8

This information should not be construed as a recommendation or an offer of services. The commentaries provided are opinions of Baker Tilly Municipal
Advisors, LLC and are for informational purposes only. While the information is deemed reliable, Baker Tilly Municipal Advisors, LLC cannot guarantee its
accuracy, completeness, or suitability for any purpose and makes no warranties with regard to the results to be obtained from its use, or whether any expressed
course of events will actually occur. Past performance does not guarantee future results.
Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly Advisory Group, LP, a tax and advisory firm. Baker
Tilly Advisory Group, LP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and
independent legal entities. © 2025 Baker Tilly Advisory Group, LP.

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Executive Summary
The City of Ottawa, KS (the “City”) retained Baker Tilly Municipal Advisors (“BTMA”) to review the financial
feasibility of providing public financial assistance to Legacy Homes of Ottawa (the “Applicant”) for
development of the Woodridge Estates subdivision (the “Project”). Woodridge Estates will include 13
newly constructed single-family homes and will be located at the northwest corner of North Milner Street
and East Wilson Street in Ottawa, Kansas.
The Applicant requests public financial assistance for the Project to make the homes affordable, which the
City defines as initially priced between $212,000 and $265,000. The Applicant seeks up to $576,000, plus
interest (the “Eligible Project Costs”), via a 20-year, 100% property tax redirection (the “Incentive”)
through the establishment of a Reinvestment Housing Incentive District (“RHID” and “District”). RHID
revenues will fund Eligible Project Costs - including land acquisition, infrastructure and sitework - to
enable the Applicant to meet the City’s home affordability goals.
This Comprehensive Feasibility Analysis evaluates whether the public benefits derived from the District
will exceed the costs and whether the RHID income, together with other sources of funding, will be
sufficient to fund the District public improvements.
BTMA reviewed the Applicant’s pro forma and the underlying assumptions regarding Project financing,
construction costs and revenues. BTMA determined that the proposed District’s revenues plus Applicant
contributions equal or exceed the RHID Eligible Project Costs.

Project Description

Construction of 13 single-family homes
resulting in an estimated 16,272 sq ft of
single-family residential development

Eligible Project Costs

Up to $576,000 in land, infrastructure and
site preparation costs, plus interest

Anticipated Revenue

The District is anticipated to generate
$1,139,827 in gross revenues, supporting
$522,589 in Eligible Project Costs at a net
present value rate of 7.5%

Conclusion

District revenues plus Applicant
contributions are sufficient to support the
Eligible Project Costs

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Purpose
On July 16, 2025 the City Commission of Ottawa,
Kansas adopted Resolution No. 1986-25, making the
findings and determinations required to establish the
Woodridge Estates Reinvestment Housing Incentive
District pursuant to sections 12-5241 through 12-5252 of
the Kansas Statutes (the “Act”). The Kansas Secretary
of Commerce subsequently approved the findings by
letter dated August 14, 2025.
Upon the Secretary of Commerce’s approval of the
findings, the Act requires that the City hold a public
hearing and adopt a Development Plan which must
include, among other elements, a Comprehensive
Financial Feasibility Study. This report is the
Comprehensive Financial Feasibility Study (the “Study”)
for the proposed Woodridge Estates Reinvestment
Housing District.
As required by the Act, this Study considers the
following:
•

Whether the District’s benefits exceed its costs, and

•

If the District income, together with other sources of
funding, will be sufficient to fund the public
improvements to be undertaken in the District.

Reinvestment Housing Incentive Districts
(RHIDs) in Kansas
RHIDs are an incentive tool created by state
statute to encourage single- and multi-family
development and renovation in areas
experiencing a shortage of housing. Within
the RHID geographic area, the incremental
increase in property taxes resulting from
new or renovated housing is made available
to reimburse eligible project costs. These
costs include public infrastructure and, in
certain circumstances, construction or
renovation of buildings.
Upon RHID creation, the total assessed
valuation of all taxable real estate within the
district is determined. This valuation is
referred to as the district's “Base-Year
Assessed Valuation.” Over the life of the
district, the property taxes attributable to the
Base-Year Assessed Valuation are annually
collected and distributed to the appropriate
taxing jurisdictions. As new development
occurs within the RHID, the total assessed
valuation of the district in any given year will
exceed its Base-Year Assessed Valuation.
The real property taxes attributable to this
increase in valuation above the Base-Year
Assessed Valuation are the incremental
revenues utilized to pay RHID eligible
project costs. RHIDs may redirect up to
100% of the incremental increase in property
taxes for a period not to exceed 25 years.
RHIDs may finance eligible costs through
the issuance of special obligation bonds, in
which case RHID revenue is used to pay
bond debt service. Most commonly,
developers privately finance the RHID
eligible project costs and are reimbursed
over time, with interest, from incremental
revenues – an approach commonly referred
to as “pay-as-you-go” financing.

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The Woodridge Estates RHID
The Woodridge Estates RHID site is located at the northwest corner of North Milner Street and East
Wilson Street and has a commonly known address of 1001 East Wilson Street, Ottawa, KS 66067. The
site is approximately 3.6 acres and is located south of North Milner Street from Lincoln Elementary
School.

RHID Boundary

(Source: Franklin County AIMS)
The Applicant proposes the construction of 13 single-family homes at the Project site. The Project
includes land acquisition, site preparation, infrastructure, and vertical construction of the homes. The
Applicant plans to construct three home models which vary by size and price as described in the following
table.
Model

# Units

Bedrooms

Baths

Garage

Gross Square Feet

Model A

6

3

2

Yes

1,708

Model B

4

3

1

No

1,065

Model C

3

3

2

No

1,204

In total, 13 units will be constructed, constituting 18,120 square feet.

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Expenditures
The Project sources and uses are detailed in the following table.
Sources

Amount

Private

RHID

% of Project Total

$1,805,946

$1,805,946

—

68.62%

Equity

$250,000

$250,000

—

9.50%

RHID

$576,000

—

$576,000

21.88%

Total:

$2,631,946

$2,055,946

$576,000

100.00%

Amount

Private

RHID

% of Project Total

$250,000

—

$250,000

9.50%

Hard Costs

$2,231,696

$2,056,008

$175,750

84.79%

Soft Costs

$100,250

—

$100,250

3.81%

Contingency

$50,000

—

$50,000

1.90%

$2,631,946

$2,056,008

$576,000

100.00%

Private Debt

Uses
Land

Total:

The District will reimburse up to $576,000 of Eligible Project Costs, plus interest, on private loans secured
by the Applicant to finance Eligible Project Costs. Should District revenues be insufficient to fund the
Applicant’s Eligible Project Costs, plus interest, the Applicant will fund the difference through private debt
and/or equity.
The Applicant anticipates that the homes will be constructed and sold over a 4-year period starting in
2026 and ending in 2029 as described in the following table.
Year

Model Type Constructed

Units Constructed

Units Sold

2026

Model A – 3
Model B – 1
Model C – 1

5

0

2027

Model A – 1
Model B – 2
Model C – 1

4

5

2028

Model A – 1
Model B – 2
Model C – 1

4

4

2029

N/A

0

4

Total:

N/A

13

13

4

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Revenues
Assessed Value
Per Franklin County’s 2025 assessment, the appraised value of the District area is $106,320. At the
11.5% assessment rate established in state statute, the District Base-Year Assessed Value is $12,758.
Over the 3 years of home construction, approximately $2,982,906 in appraised value will be added to the
Project area. This increase in appraised value represents 92% of the total sale prices for the 13 homes. At
the recommendation of the Franklin County Appraiser, a discount of eight percent is applied to home sale
prices to reflect the difference between the market sale price and appraised value.
In RHID years 1 through 3, the increase in the incremental assessed value is primarily the product of
Project construction. When construction ends in RHID year 4, assessed value increases are based
entirely upon an estimated 3% annual increase in home values. BTMA is using a 3% growth factor based
on historical analysis of home value growth in Ottawa over the past 5 years. Five comparable homes in
Ottawa were identified, and their assessed value growth from 2021 to 2025 ranged from 4% to 9%, with
the average annual growth of 7%. To better mirror long-term economic trends and control for the recent
surge in residential valuation outpacing inflation, BTMA estimates future growth at 3% annually for the
RHID term.
Per a term sheet signed between the City and the Applicant, the Applicant is permitted to increase home
sale prices in accordance with the schedule below. This price escalation and the Applicant’s estimated
construction timeline have been utilized to estimate assessed valuation growth.
Model

Year 1

Year 2

Year 3

Year 4

Year 5

Model A

$263,000

$276,939

$291,617

$307,072

$323,347

Model B

$212,000

$223,236

$235,068

$247,526

$260,645

Model C

$222,000

$233,766

$246,156

$259,202

$272,940

The difference between the RHID’s Base-Year Assessed Value and the post-construction assessed value
represents the incremental assessed value. The following table summarizes the estimated District
appraised and assessed values and resulting incremental assessed values.

RHID
Year

Assess
& Tax
Levy
Year

Tax
Distribution
Year

Base
Appraised
Value

Base
Assessed
Value

Appraised
Valuation

Assessed
Valuation

Incremental
Assessed
Value

1

2026

2027

$106,320

$12,758

$1,125,620

$129,446

$129,446

2

2027

2028

$106,320

$12,758

$2,089,398

$240,281

$240,281

3

2028

2029

$106,320

$12,758

$3,079,356

$354,126

$354,126

4

2029

2030

$106,320

$12,758

$3,171,737

$364,750

$364,750

5

2030

2031

$106,320

$12,758

$3,266,889

$375,692

$375,692

6

2031

2032

$106,320

$12,758

$3,364,896

$386,963

$386,963

7

2032

2033

$106,320

$12,758

$3,465,843

$398,572

$398,572

8

2033

2034

$106,320

$12,758

$3,569,818

$410,529

$410,529

9

2034

2035

$106,320

$12,758

$3,676,913

$422,845

$422,845

5

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RHID
Year

Assess
& Tax
Levy
Year

Tax
Distribution
Year

Base
Appraised
Value

Base
Assessed
Value

Appraised
Valuation

Assessed
Valuation

Incremental
Assessed
Value

10

2035

2036

$106,320

$12,758

$3,787,220

$435,530

$435,530

11

2036

2037

$106,320

$12,758

$3,900,837

$448,596

$448,596

12

2037

2038

$106,320

$12,758

$4,017,862

$462,054

$462,054

13

2038

2039

$106,320

$12,758

$4,138,398

$475,916

$475,916

14

2039

2040

$106,320

$12,758

$4,262,549

$490,193

$490,193

15

2040

2041

$106,320

$12,758

$4,390,426

$504,899

$504,899

16

2041

2042

$106,320

$12,758

$4,522,139

$520,046

$520,046

17

2042

2043

$106,320

$12,758

$4,657,803

$535,647

$535,647

18

2043

2044

$106,320

$12,758

$4,797,537

$551,717

$551,717

19

2044

2045

$106,320

$12,758

$4,941,463

$568,268

$568,268

20

2045

2046

$106,320

$12,758

$5,089,707

$585,316

$585,316

Property Tax Rates
Each year, the then-current property tax rates will be applied to the incremental assessed value to
determine the annual District revenue. For taxes levied in 2024 and payable in 2024/2025, the total
District-applicable property tax rate is 160.570 mills. It is assumed that the District will redirect 100% of
eligible taxes and that tax rates will remain constant throughout the District’s 20-year term. The following
table identifies the eligible and ineligible property tax levies.
Property Tax
Mills (2024/2025)

Ineligible
(2024/2025)

Eligible
(2024/2025)

USD 290 - Total

23.580

0.000

23.580

USD 290 General

20.000

20.000

0.000

USD 290 Bond & Interest #1

16.420

0.000

16.420

USD 290 Recreation Commission

6.000

0.000

6.000

Ottawa City

44.640

0.000

44.640

Franklin County

47.150

0.000

47.150

Frontier Extension #11

1.280

0.000

1.280

State of Kansas*

1.500

1.500

0.000

160.570

21.500

139.070

Jurisdiction

Total:

* The State of Kansas 1.5 mill property tax was eliminated beginning in 2025.
Projected RHID Property Tax Revenue
The annual incremental assessed value, multiplied by the then-current eligible property tax levies,
produces the annual District revenue. The table below summarizes the estimated annual District revenue
net of the City’s 2.5% administrative fee. The total estimated gross revenue over the 20-year District term

6

01.07.26 Regular Mtg Pkt Page #66

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is $1,139,827. The total present value is estimated at $522,589 using a discount rate of 7.5%, which
represents the Applicant’s assumed private loan interest rate.

RHID
Year

Assess &
Tax Levy
Year

Tax
Distribution
Year

Incremental
Assessed
Value

Total
District Tax
Rate (in
mills)

Total
Projected
RHID Revenue

RHID
Revenue
Paid to
Applicant

1

2026

2027

$129,446

139.070

$16,228

$15,822

2

2027

2028

$240,281

139.070

$31,642

$30,851

3

2028

2029

$354,126

139.070

$47,474

$46,287

4

2029

2030

$364,750

139.070

$48,951

$47,728

5

2030

2031

$375,692

139.070

$50,473

$49,211

6

2031

2032

$386,963

139.070

$52,041

$50,740

7

2032

2033

$398,572

139.070

$53,655

$52,314

8

2033

2034

$410,529

139.070

$55,318

$53,935

9

2034

2035

$422,845

139.070

$57,031

$55,605

10

2035

2036

$435,530

139.070

$58,795

$57,325

11

2036

2037

$448,596

139.070

$60,612

$59,097

12

2037

2038

$462,054

139.070

$62,484

$60,922

13

2038

2039

$475,916

139.070

$64,411

$62,801

14

2039

2040

$490,193

139.070

$66,397

$64,737

15

2040

2041

$504,899

139.070

$68,442

$66,731

16

2041

2042

$520,046

139.070

$70,549

$68,785

17

2042

2043

$535,647

139.070

$72,718

$70,900

18

2043

2044

$551,717

139.070

$74,953

$73,079

19

2044

2045

$568,268

139.070

$77,255

$75,323

20

2045

2046

$585,316

139.070

$79,626

$77,635

Gross Revenue

$1,139,827

Net Present Value at 7.5%

$522,589

7

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Conclusion
It is estimated that the Woodridge Estates RHID will generate $1,139,827 in gross revenues. These
revenues are sufficient to reimburse approximately $522,589 in Eligible Project Costs, plus interest, at an
assumed discount rate of 7.5%. As the assumed Eligible Project Costs are $576,000, approximately
$53,410 will be paid from the Applicant’s private sources. As such, we find that the District’s benefits will
likely exceed its costs, and that District income, together with other sources of funding, will be sufficient to
fund the public improvements to be undertaken in the District.

8

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EXHIBIT B
RHID LEGAL DESCRIPTION
WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT
Lots 1 and 2, Block 6, Riverview Addition to the City of Ottawa, Franklin County, Kansas (3.6 Acres),
Section 25, Township 16, Range 19E1
A replat of this property has been approved by the governing body of the City of Ottawa, Kansas, but not
yet recorded as of the date of this resolution. As a result of the replat, the legal description for the property
described above is now:
1

Lots 1-13 and Tract A, Woodridge Estates, a replat of Lots 1 and 2, Block 6, Riverview Addition to the
City of Ottawa, Franklin County, Kansas

601303.20072\DEVELOPMENT AGREEMENT

B-1

01.07.26 Regular Mtg Pkt Page #69

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EXHIBIT C
RHID MAP

WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

The RHID is comprised of the area highlighted on the map above.

601303.20072\DEVELOPMENT AGREEMENT

C-1

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EXHIBIT D
CERTIFICATION OF EXPENDITURES

Date: _______________
Certificate No. _______
Governing Body of the
City of Ottawa, Kansas
In accordance with the Development Agreement for the Woodridge Estates
Reinvestment Housing Incentive District effective as of January ___, 2026 (the “Agreement”),
between the City of Ottawa, Kansas (the “City”), and Legacy Homes of Ottawa LLC, a Kansas
limited liability company (the “Developer”), the Developer hereby certifies, with respect to all
payment amounts requested pursuant to this Certificate to be reimbursed to the Developer, as
follows:
1.
To the best of my knowledge, all amounts are RHID Eligible Expenses (as
defined in the Agreement) that are reimbursable to the Developer pursuant to the Agreement
and the RHID Act (as defined in the Agreement).
2.
All amounts have been advanced by the Developer for eligible expenses
requested in the Certification and represent the fair value of work, materials or expenses.
3.
No part of such amounts has been the basis for any previous request for
reimbursement under the Agreement.
The Developer further certifies that the Developer is in compliance, in all material
respects, with all further terms of the Agreement.
The total amount of reimbursement requested by this Certification is $
which amount is itemized on Exhibit 1 attached hereto and which Exhibit 1 includes
page(s), is incorporated herein by reference and has been initialed by the authorized
representative of the Developer who signed this Certificate.
LEGACY HOMES OF OTTAWA LLC
By:
Name:
Title:

601303.20072\DEVELOPMENT AGREEMENT

D-1-1

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Date: _______________

Certificate No. _______
$_______________

Amount of eligible expenses requested by this
Certification No. ___

$_______________

Amount of eligible expenses for this
Certification No. ___ Disapproved

$_______________

Amount of eligible expenses for this
Certification No. ___ Approved

CITY OF OTTAWA, KANSAS
By:
Name:
Title: Finance Director

601303.20072\DEVELOPMENT AGREEMENT

D-1-1

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EXHIBIT l TO
CERTIFICATION OF EXPENDITURES
(WOODRIDGE ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT)
PAGE ___OF ___
Date: _______________
Certificate No. _______
Description of Expense (attach additional supporting documentation)
Amount of Expense

$______________
$______________
$______________
$______________
$______________
Total Expenses

$______________

________
Initials of Developer

601303.20072\DEVELOPMENT AGREEMENT

D-1-1

01.07.26 Regular Mtg Pkt Page #73

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Agenda Item: XI.C
City of Ottawa
City Commission Meeting
January 7, 2026
TO:
SUBJECT:

Mayor and City Commission
Resolution Defining Depository Institutions for Idle Funds held by the City of
Ottawa, Kansas
INITIATED BY: Rebekah McCurdy, Assistant Finance Director
AGENDA:
New Business
Recommendation: Review, comment, and consider the attached resolution defining depository
institutions for idle funds held by the City of Ottawa, Kansas.
Background: According to Kansas Statute 9-1401, the governing body of any municipal
corporation shall designate the banks, savings and loans associations, and savings banks which
shall serve as depositories of the governing body’s funds and the officer(s) having the custody of
such funds. On January 17th, 2024, Resolution 1953-24 was approved at the regular City
Commission meeting. Resolution 1953-24 defined approved depository institutions for idle funds
held by the City of Ottawa, KS, and outlined the list of approved signers for all City of Ottawa
financial accounts.
Analysis: The resolution presented today is intended to repeal and replace Resolution 1953-24 to
remove one authorized signer and one minor change related to a legal name change for one
authorized signer. The proposed resolution accomplishes the requirements outlined in K.S.A. 91401.
Financial Considerations: The proposed resolution includes authorizations for the designated
signers of:
A. Exercise all of the powers listed in the resolution.
B. Open any deposit or checking account(s) in the name of this corporation.
C. Endorse checks and orders for the payment of money and withdraw or transfer funds on
deposit with these Financial Institutions. The number of authorized signatures required for
this purpose is two.
D. Borrow money on behalf and in the name of this association, sign, execute, and deliver
promissory notes or other evidence of indebtedness.
E. Enter into a written lease for the purpose of renting, maintaining, accessing, and terminating
a Safe Deposit Box in these Financial Institutions. The number of authorized persons required
to gain access and to terminate the lease is two.
Legal Considerations: The proposed resolution has been reviewed and approved as to form by
the City Attorney.
Recommendation/Action: It is recommended the City Commission consider:
1. Take action at the January 7, 2026, Commission Meeting to:

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“Approve the presented Resolution Defining Depository Institutions for Idle Funds
held by the City of Ottawa, Kansas”; or
2. Refer Item XI.C to the following regular meeting for continued deliberations.
Attachments:
XI.C. 1. Resolution defining depository institutions for idle funds held by the City of Ottawa,
Kansas.

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RESOLUTION NO. _______
A RESOLUTION DEFINING DEPOSITORY INSTITUTIONS FOR IDLE FUNDS HELD
BY THE CITY OF OTTAWA, KANSAS.
BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF OTTAWA,
KANSAS:
Section 1. All banks within the corporate city limits of Ottawa, Kansas, as well as the Municipal
Investment Pool of the State of Kansas, shall be named as acceptable depository institutions for
funds held by the City of Ottawa, Kansas.
A. The Financial Institutions, as described above, are designated as depository institutions for
the funds of the City of Ottawa.
B. All transactions, if any, with respect to any deposits, withdrawals, rediscounts, and
borrowings by or on behalf of this association with these Financial Institutions prior to the
adoption of this resolution are hereby ratified, approved, and confirmed.
C. Any of the persons named below, so long as they act in a representative capacity as agents
of this City, are authorized to make any and all other contracts, agreements, stipulations
and orders which they may deem advisable for the effective exercise of the powers
indicated below, from time to time with these Financial Institutions, concerning funds
deposited in these Financial Institutions, moneys borrowed from these Financial
Institutions or any other business transacted by and between this association and these
Financial Institutions are subject to any restrictions stated below.
Section 2. The persons listed below (subject to any expressed restrictions) are authorized to:
A. Exercise all of the powers listed in this document.
B. Open any deposit or checking account(s) in the name of this corporation.
C. Endorse checks and orders for the payment of money and withdraw or transfer funds on
deposit with these Financial Institutions. The number of authorized signatures required for
this purpose is two.
D. Borrow money on behalf and in the name of this association, sign, execute, and deliver
promissory notes or other evidence of indebtedness.
E. Enter into a written lease for the purpose of renting, maintaining, accessing, and
terminating a Safe Deposit Box in these Financial Institutions. The number of authorized
persons required to gain access and to terminate the lease is two.
1.
2.
3.
4.

Blaine B. Finch, City Attorney
Melanie D. Landis, Finance Director
Michelle D. Stegman-Jacobson, Human Resources Director
Rebekah S. McCurdy, City Treasurer

Section 3. This resolution shall be effective after its adoption and shall supersede any prior
Resolution in conflict therewith.
Approved and adopted this ________ day of January 2026.
_________
Zachary Clayton, Mayor
ATTEST:
______
Melissa Scherman, City Clerk

01.07.26 Regular Mtg Pkt Page #76

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Agenda Item: XI.D
City of Ottawa
City Commission Meeting
January 7, 2026
TO:
SUBJECT:
INITIATED BY:
AGENDA:

City Commission
Commission Board Assignments for 2026
City Clerk Scherman
New Business

Recommendation:
Review list of current City board assignments below and make a determination of who will sit on
these boards as Commission Representative in 2026.
Background:
Early each year the Commission reviews the list of City Boards and Commissions to determine
who will be their representative on the board for that year. The list of 2025 assignments are
below.
Airport Advisory Board – Mayor is Ex Officio:
First Tuesday – 5:30 pm
City Hall 2nd Floor Conference Room
Current: Commissioner Allen
New: _________________
Chamber of Commerce – Traditionally the Mayor Pro-Tem:
Second Tuesday
7:30 am Chamber of Commerce
Current: Mayor Clayton
New: __________________
Franklin County Development Council – Traditionally the Mayor:
First Tuesday – 7:30 am
Chamber of Commerce
Current: Commissioner Allen
New: __________________
Kansas Municipal Energy Agency:
New: _________________
Library Board – Mayor is Ex Officio:
Fourth Monday – 6:00 pm
City Hall Study Session Room
Current: Commissioner Allen
New: __________________
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Neighborhood Revitalization Program Review Committee:
As necessary
Current: n/a
New: __________________
Ottawa Main Street Association:
Second Monday – 6:30 pm
Current: Mayor Clayton
New: _________________
Ottawa Memorial Auditorium Advisory Board – Ex Officio:
Third Tuesday – 12:00 pm
Auditorium
Current: Mayor Pro Tem Crowley
New: _________________
Prairie Paws Animal Shelter:
Fourth Tuesday – 6:30 pm
Prairie Paws conference room
Current: Commissioner Skidmore
New: _________________
Recommendation/Action:
It is recommended the City Commission review the list of board assignments for one of the
following courses of action:
•
•

Take final action at the January 7, 2026 Meeting.
Refer to the Wednesday, January 14, 2026 meeting for continued deliberation and
consideration.

Attachments: None

01.07.26 Regular Mtg Pkt Page #78

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Agenda Item: XI.E
City of Ottawa
City Commission Meeting
January 7, 2026
TO:
Mayor and City Commission
SUBJECT:
Kansas Municipal Energy Agency (KMEA) Board Appointment Director 1
INITIATED BY:
City Clerk
AGENDA:
New Business
Recommendations: It is recommended that the City Commission review and appoint a representative
to the Kansas Municipal Energy Agency (KMEA) Board of Directors Director 1 position, with an
unexpired term effective from January 7, 2026, through April 30, 2027.
Background: The Governing Body biennially selects representatives for the KMEA Board of
Directors 1 and 2 positions. On March 27, 2024, the Governing Body approved the appointment of
David Hunsaker to the Director 2 position, with his term expiring on April 30, 2026. The completed
certificate was submitted to KMEA by the City Clerk on March 28, 2024.
Analysis: The current representatives for the City of Ottawa on the KMEA Board are:
Director-1
Director-2
Alternate *

Sara Caylor
David Hunsaker
Jeff Oleson

Term Exp. Date
04/30/2027
04/30/2026
Permanent

As part of the appointment process, KMEA provides the following guidelines:
• Directors must reside within the territory served by the City’s electric utility or be a city
employee.
• Directors serve two-year terms. Alternates may serve for a specified term set by the Governing
Body or be appointed on a permanent basis.
• Each Member is entitled to one Director vote, which is cast by Director 1 if present. If
Director 1 is absent, Director 2 may vote. The Alternate may vote if neither Director is present
unless otherwise prohibited by the Governing Body.
• The Governing Body is encouraged to appoint an individual with knowledge of the City’s
electric system.
• Directors should be available to attend Board of Directors meetings, which are typically held in
the spring and fall in Wichita, KS.
Financial Considerations: There is no financial impact associated with this appointment.
Legal Considerations: The appointment is governed by KMEA Article V, Sections 5.1 through 5.7.
Recommendations/Actions: It is recommended the City Commission appoint a representative to the
KMEA Board of Directors – Director 1 position:
• Take Final Action at the January 7, 2026, Regular Meeting:
“Motion to appoint a representative to the KMEA Board of Directors, Director 1 position.”
• Refer the item to a future meeting for further deliberation.
Attachments:
XI.E.1 KMEA Bylaws Expert Article V (Board of Directors)
XI.E.2 KMEA Director-1 Certificate

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EXCERPT OF BYLAWS OF KANSAS MUNICPAL ENERGY AGENCY
ARTICLE V
BOARD OF DIRECTORS
Section 5.1. Selection of Directors. The property and business of the Agency shall be managed by the Board of
Directors of the Agency. The Board of Directors shall consist of two (2) Directors for each Member, provided that there
shall be not less than seven (7) Directors. The Directors shall be selected by the governing bodies of the Members. In the
event that the number of Members is less than seven (7), each Member shall be represented by the number of Directors
which would constitute a Board of Directors of not less than seven (7) Members, provided that each Member shall select
the same number of Directors. Each Member must designate the two (2) Directors as “Director-1” and “Director-2”.
The term of each Director shall be for a period of two (2) years except that the initial term of a number equal to
one half of the Directors, comprised of those individuals designated as Director-2, shall be selected to a term of one (1)
year. Any Director selected by a Member may be removed at any time by the Member selecting the Director.
Each Director so selected shall (a) reside within the territory served by the electric utility of the selecting Member;
or (b) be an employee of the selecting Member. Each Director shall meet all other requirements of the Act and the
Agreement. Any such selection (other than a replacement selection) shall occur prior to the annual meeting of the
Agency. Written evidence of selection shall be forwarded by the City Clerk or other authorized official of the Member
to the Agency in writing prior to the annual meeting. Each Director shall continue in office until a successor is selected
in accordance with this Article V.
Section 5.2. Voting Powers. Each Member shall be entitled to one Director vote on the Board of Directors which
shall be equal to the vote of every other Member. Such vote shall be cast on behalf of the Member by Director-1 of such
Member, if present; if such Director-1 is not present then by Director-2. Other than actions required in Article XII hereof,
all actions of the Board of Directors shall be made upon affirmative vote of a majority of the Directors entitled to vote and
voting on such action.
Section 5.3. Compensation. Except as may be specifically authorized by the Board of Directors, no Director
shall receive payment from the Agency for any time spent in attending meetings of the Board of Directors or
otherwise conducting business of the Agency. To the extent that funds are available, the Board of Directors, the
Executive Committee, or the General Manager may authorize payment of expenses for travel in connection with the
business of the Agency for other than meetings of the Board of Directors pursuant to the Act.
Section 5.4. Vacancies. In the event of a vacancy on the Board of Directors the appropriate Member shall select
an individual to fill such vacancy for the remainder of the term in accordance with the same procedure as set forth for
the selection of the initial Director. Written evidence of selection shall be provided to the Agency before voting
privileges will take effect.
Section 5.5. Removal or Resignation. A Director may be removed only by the governing body of the
Member selecting such Director. Any Director may resign by providing notice to the governing body of the Member the
Director represents. The governing body shall certify to the Agency such removal or resignation of a Director.
Section 5.6. Successor Director. Upon removal or resignation of a Director, a successor Director will be selected
by the governing body in the same manner as the original Director was selected, and the successor Director will
be certified by the governing body to the Agency in the same manner as the original Director was certified. The
successor Director shall serve for the remainder of the unexpired term of the original Director, subject to the rights of the
governing body and such successor Director under Section 5.5 of these Bylaws.
Section 5.7. Alternates. Each Member shall designate an Alternate or Alternates for the Director in the same
manner as the Directors are designated. In the event any Director is unable to attend a meeting, any duly
appointed Alternate may substitute at the meeting of the Board of Directors for such Director. The Member shall provide
the Agency with written notification of the selection of such Alternate or Alternates. In the event neither Director
designated by the Member is present, the Alternate may vote on behalf of such Member unless the governing body
of the Member has specifically prohibited the Alternate from voting on the Member’s behalf. If more than one Alternate
is designated by the Member, the governing body shall specify in its designation the order in which the Alternates shall
have voting rights on behalf of the Member.

01.07.26 Regular Mtg Pkt Page #80

Adopted by the Board of Directors July 3, 2019

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CERTIFICATE – DIRECTOR-1 (UNEXPIRED TERM)
KANSAS MUNICIPAL ENERGY AGENCY
BOARD OF DIRECTORS
This certificate duly documents the appointment of a Director-1 to fill an unexpired term on the Board
of Directors of the Kansas Municipal Energy Agency (KMEA) as provided for in Article V, Section 5.6 of
KMEA’s Bylaws.
I, the undersigned City Clerk of the City of _____________________, Kansas, a member of KMEA, do
hereby certify that at a meeting of the City Governing Body duly held on the _____ day of
________________, _____; and
Name:

Title:

Address:
City:

State:

Office Phone:

Zip Code:

Cell Phone:

Fax:

Email Address:
who (a) resides within the territory served by the City’s electric utility; or (b) is an employee
of the City, was appointed to fill an unexpired term on the KMEA Board of Directors; the term to
begin immediately upon execution of this Certificate and end on April 30, _____.
2027
I further certify that the foregoing appointment is reflected in the official Minutes of the Governing Body
of the City for the meeting on the date indicated above.
This certificate is given this _____ day of ________________, _____.

__________________________
City Clerk
____________________, Kansas
Return completed certificate to:
KMEA, 6300 West 95th Street, Overland Park, KS 66212
Email: [email protected] Fax: 913-677-0804

01.07.26 Regular Mtg Pkt Page #81

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City of Ottawa
City Commission Meeting
January 7, 2026
TO:
SUBJECT:
INITIATED BY:
AGENDA:

Agenda Item: XI.F

Mayor and City Commission
Appointment of KMGA Director
City Clerk
New Business

Recommendation: Approve the appointment of David Hunsaker as the Director representing the
City of Ottawa on the Kansas Municipal Gas Agency (KMGA) Board of Directors for a unexpired two-year term ending August 31, 2027.
Background: The Kansas Municipal Gas Agency (KMGA) is governed by a Board of Directors
composed of one Director and one Alternate appointed by each Member City’s governing body,
as outlined in Article V of KMGA’s Bylaws. Directors serve a two-year term. Alternates may act
in the absence of the Director and must also be certified in writing.
The City of Ottawa has historically participated in the KMGA and has previously appointed
representatives in accordance with KMGA bylaws. The term of the City’s current Director, Brian
Silcott, expires on August 31, 2027. Due to Brian Silcott leaving the City of Ottawa on
December 31, 2025, a new person needs to fill the unexpired term that expires August 31, 2027
Analysis: The appointment of David Hunsaker as Director ensures continuity in the City’s
representation. Jeff Oleson has served as the Alternate for several years and continues to be
available to fulfill duties when necessary.
The governing body is required to officially certify the appointment via resolution or formal
Commission action. The signed certification will be submitted to KMGA upon approval.
Financial Considerations: There are no direct financial impacts associated with this
appointment. Travel expenses for participation in KMGA-related activities are eligible for
reimbursement if authorized by the Board.
Legal Considerations: The appointment is in compliance with Article V of the KMGA Bylaws.
A certificate of appointment must be signed by the City Clerk following Commission approval
and returned to KMGA.
Recommendation/Action: It is recommended the City Commission:
•
•

Approve the appointment of David Hunsaker as Director for the City of Ottawa to the
Kansas Municipal Gas Agency Board of Directors for the term ending August 31, 2027.
Refer the item to a future meeting for further deliberation.

Attachments: XI.F.1 KMGA Director Appointment Certificate
XI.F.2 KMGA Bylaws – Article V Excerpt

01.07.26 Regular Mtg Pkt Page #82

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CERTIFICATE – DIRECTOR (UNEXPIRED TERM)
KANSAS MUNICIPAL GAS AGENCY
BOARD OF DIRECTORS
This certificate duly documents the appointment of a Director to fill an unexpired
term on the Board of Directors of the Kansas Municipal Gas Agency (KMGA) as provided
for in Article V, Section 5.6 of KMGA's Bylaws.
I, the undersigned City Clerk of the City of _____________________, Kansas, a member of KMGA,
do hereby certify that at a meeting of the City Governing Body duly held on the _____
day of ________________, _____;

Name:

Title:

Address:
City:
Office Phone:

State:

Zip Code:

Cell Phone:

Fax:

Email Address:

was appointed to fill an unexpired term on the KMGA Board of Directors; the term to begin immediately
2027
upon execution of this Certificate and end on August 31, _____.
I further certify that the foregoing appointment is reflected in the official Minutes of the Governing Body
of the City for the meeting on the date indicated above.
This certificate is given this _____ day of ________________, _____.

__________________________
City Clerk
____________________, Kansas
Return completed certificate to:
KMGA, 6300 West 95 Street, Overland Park, KS 66212
Email: [email protected] Fax: 913-677-0804

01.07.26 Regular Mtg Pkt Page #83

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EXCERPT OF AMENDED AND RESTATED BYLAWS OF KANSAS MUNICIPAL GAS AGENCY
ARTICLE V
BOARD OF DIRECTORS
Section 5.1. Selection of Directors. The property and business of the Agency shall be managed by the Board
of Directors. The Board of Directors shall consist of one (1) Director for each Member, provided that there shall be
not less than three (3) Directors. The Directors shall be selected by the governing bodies of the Members. In the
event that the number of Members is less than three (3), each Member shall be represented by the number of
Directors that constitutes a Board of Directors of not less than three (3) Directors, provided that each Member shall
select the same number of Directors. No Director may represent more than one Member. Each Member may
designate an Alternate for any Director selected by certifying same in writing to the Agency prior to the participation
of such Alternate at any meeting of the Board.
The term of each Director shall be for a period of two (2) years except that the initial term of a number equal
to one half of the Directors shall be selected to a term of one (1) year. The Directors selected to the initial one (1)
year term shall be those Directors representing the Members selected at the first Board meeting in a random
drawing from a complete list of Members. Any Director selected by a Member may be removed at any time by the
Member selecting the Director. Written evidence of selection or removal shall be forwarded by the Clerk or other
authorized official of the Member to the principal office of the Agency in writing prior to any meeting of the Agency
or the Board of Directors. Each Director shall continue in office until a successor is selected in accordance with this
Article.
Section 5.2. Voting Powers. Each Member shall be entitled to one vote which shall be equal to the vote of
every other Member. Such vote shall be cast on behalf of the Member by its Director or, if such Director is not
present, by its duly authorized Alternate. All actions of the Board of shall be made upon affirmative vote of a
majority of the Directors voting on such action, unless otherwise provided in the Agreement or these Bylaws.
Section 5.3. Compensation. Except as may be specifically authorized by the Board of Directors, no Director
shall receive payment for any time spent in attending meetings of the Board of Directors or otherwise conducting
business of the Agency. The Board of Directors, the Executive Committee, or the General Manager may authorize
payment of expenses for travel in connection with the business of the Agency.
Section 5.4. Vacancies. In the event of a vacancy on the Board of Directors the appropriate Member shall
select an individual to fill such vacancy for the remainder of the term in accordance with the same procedure used to
select the original Director. Written evidence of selection shall be provided to the Agency before voting privileges
will take effect.
Section 5.5. Removal or Resignation. A Director may be removed only by the governing body of the
Member selecting such Director. Any Director may resign by providing notice to the governing body of the Member
the Director represents. The governing body shall certify to the Agency such removal or resignation of a Director.
Section 5.6. Successor Director. Upon removal or resignation of a Director, a successor Director will be
selected by the governing body in the same manner as the original Director was selected, and the successor Director
will be certified by the governing body to the Agency in the same manner as the original Director was certified. The
successor Director shall serve for the remainder of the unexpired term of the original Director, subject to the rights of
the governing body and such successor Director under Section 5.5 of these Bylaws.
Section 5.7. Alternates. In the event a Director is unable to attend a meeting, the corresponding Alternate
may substitute at the meeting of the Board of Directors for such Director. The Member shall provide the Agency with
written notification of the selection of its Alternate. This Alternate shall be entitled to participate in any discussion of
matters before the Board of Directors, and shall be entitled to vote for the Director represented unless such
Alternate is specifically prohibited from voting by action taken by the Member.
Adopted by the Board of Directors May 11, 2011

01.07.26 Regular Mtg Pkt Page #84