Topeka City Council takes first steps toward giving Jim Klausman tax incentives
The Topeka City Council approved the first steps toward giving Jim Klausman new tax incentives.
During Tuesday's meeting, the council approved submitting findings related to the creation of a Reinvestment Housing Incentive District in Lauren's Bay to the Kansas secretary of commerce for review. Council members Christina Valdivia-Alcalá and David Banks voted no.
Assistant city manager Braxton Copley said this is the first step toward getting the RHID tax incentive approved.
In a city meeting Feb. 11, council members discussed whether they should allow 16 Lauren's Bay lots to be turned into an RHID. During the discussion, concerns were raised about opening themselves up to litigation by allowing developer Klausman tax incentives despite owing money to the city.
Klausman owns 140 of the Lauren's Bay lots through various companies. However, he is seeking tax incentives for just 16 of the lots. Lauren's Bay is located near S.W. 47th Street and Wanamaker Road, and is a neighborhood in the Auburn-Washburn school district.
In previous discussions, the city council has debated whether to give Klausman tax incentives or why they are negotiating paybacks with him in the first place.
Earlier in the evening, the council approved the negotiations with Klausman on how he would repay the owed money on the 16 lots. Part of the agreement was giving Klausman tax incentives for those lots.
The approved agreement between the Topeka administration and Klausman states Klausman will pay $2.25 a square foot for a total of $525,333, of which $102,000 would be applied to the current outstanding special assessments, according to city documents. These negotiations are for 16 of the lots and not for all his properties in Lauren's Bay.
Various companies owned by Klausman have 124 additional lots in the Lauren's Bay neighborhood. For all 124 lots, Klausman owes $7,274,816 between general back taxes, penalties and uncollected special assessments, which were for the city installing functional infrastructure when the land was first developed.
The future special assessments owed for all the lots total $3,617,629.
As part of Klausman's negotiations, he is asking for additional tax incentives through a Community Improvement District. Copley said one of the first steps toward approving the additional tax incentives is having a public hearing.
Those interested in weighing in on the CID can attend the hearing, which will take place during the April 8 city council meeting.
This article originally appeared on Topeka Capital-Journal: Jim Klausman is step closer to getting tax incentives for Topeka site
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