On the agenda: Ottawa meeting — Flock camera (Oct 7)

OTTAWA CITY COMMISSION
Wednesday, October 7, 2026 - 7:00 pm

REGULAR MEETING AGENDA
Ottawa City Hall – 101 S. Hickory

In accordance with the Kansas Open Meetings Act
(KOMA), the meeting is open to the public and will be
held in person at City Hall. To view the meeting live online
please visit: https://ottawaks.portal.civicclerk.com/.

Citizens may attend in person or submit written
comments of 300 words or fewer for the record.
Written comments will not be read aloud during the
meeting. To submit a written comment, email
[email protected] no later than 4:00 p.m.
on October 7, 2026. All emails must include
your name and address.

If you need this information in another format or require a
reasonable accommodation to attend this meeting, please
contact the City’s ADA Coordinator at 785-229-3621. Please
provide advance notice of at least two (2) working days. TTY
users may call 711.

1. Call to Order
2. Roll Call ____ Clayton ____ Crowley ____ Allen ____ Skidmore ____ Van Leiden
3. Welcome
4. Pledge of Allegiance
5. Invocation – Chaplain John Holzhuter, Ottawa University
6. Consent Agenda
A. Minutes from September 23, 2026, Regular Meeting (Pp. 3-7)
B. Award of Services Contract - 2026 Sanitary Sewer CIPP Lining Project (Pp. 8-9)
C. Agenda Approval
Motion: __________

Second: __________

Vote: __________

7. Appointments, Proclamations, Recognitions and Nominations
A. Proclamation Recognizing October 4-10, 2026 as Fire Prevention Week (P. 10)
Comment: Since 1922, fire departments have actively supported Fire Prevention Week, making
it the longest running public health and safety observance on record. This year’s campaign focus
is “Charge into Fire Safety: Safe Charging Is a Superpower!” Fire Chief Dillon will accept the
proclamation.
B. Recognition of Jen Sharp for Contributions to the Ottawa Municipal Airport
Comment: The Governing Body will recognize the late Jen Sharp for her lasting contributions
to the Ottawa Municipal Airport, including her service on the Airport Advisory Board and her
role as co-founder of Aviation Explorers Post 8000.
8. Public Comments
All comments will be in accordance with the Public Comments Guidelines.
9. Declaration
At this time, I'd like to give Commissioners a chance to declare any conflict or communication they've
had that might influence their ability to consider today's issues impartially.
10. Unfinished Business
11. New Business

A. Public Hearing – Proposed South Haven Estates Reinvestment Housing Incentive District –
Assistant Director McCurdy (Pp. 11-61)
Comment: Conduct a public hearing to receive comments regarding the proposed South Haven
Reinvestment Housing Incentive District, related development plan and proposed development
agreement.
Open: ______________

Close: ______________

B. Consider Ordinance Establishing the South Haven Reinvestment Housing Incentive District
– Assistant Director McCurdy (Pp. 11-61)
Comment: Consider approval of an ordinance establishing the South Haven Reinvestment
Housing Incentive District, adopting the related development plan, and approving the development
agreement.
Motion: __________

Second: __________

Vote: __________

C. Sole-Source Award - 2026 Manhole Lining Project – Assistant Utilities Director Harn
(Pp. 62-63)
Comment: Consider approval of Midwest Infrastructure Coating LLC as the sole-source provider
for the 2026 Manhole Lining Project using the OBIC Lining System in the amount of $100,100.00.
Motion: __________

Second: __________

Vote: __________

12. Comments by City Manager
13. Comments by Governing Body
14. Announcements
A. October 14, 2026
City Commission Meeting – 4:00 pm, City Hall
B. October 21, 2026
City Commission Meeting – 10:00 am, City Hall
C. October 28, 2026
Study Session – 4:00 pm, City Hall
15. Executive Session
I move that the Ottawa City Commission recess into executive session for consultation with legal
counsel to discuss matters deemed privileged in the attorney-client relationship regarding pending
legal matters pursuant to the exception provided in K.S.A. 75-4319(b)(2) for a time not to exceed
_____ minutes. The open meeting will resume here in the Commission Chambers no later than _____
p.m.
16. Adjourn

Regular Meeting Minutes
City Hall
Minutes of September 23, 2026
The Governing Body met at 4:00 p.m. on this date for the Regular City Commission Meeting, with the
following members present and participating: Mayor Pro Tem Crowley, Commissioner Allen,
Commissioner Skidmore, and Commissioner Van Leiden. Mayor Clayton was absent at roll call.
Mayor Pro Tem Crowley called the meeting to order.
Mayor Pro Tem Crowley welcomed the audience and led the Pledge of Allegiance to the American
flag. Pastor Timothy Roth of Faith Lutheran Church gave the invocation.
Executive Session
Recess
Commissioner Allen made a motion, seconded by Commissioner Van Leiden, that the Ottawa City
Commission recess into executive session for consultation with legal counsel to discuss matters
deemed privileged in the attorney-client relationship regarding pending legal matters pursuant to the
exception provided in K.S.A. 75-4319(b)(2) for a time not to exceed 45 minutes. The open meeting
will resume here in the Commission Chambers no later than 4:50 p.m. The motion was considered and
upon being put, all present voted aye. Mayor Pro Tem Crowley declared the meeting duly recessed.
Reconvene
Commissioner Allen made a motion, seconded by Commissioner Skidmore, to reconvene into open
session. The motion was considered and upon being put, all present voted aye. Mayor Pro Tem
Crowley declared the meeting duly reconvened at 4:50 p.m.
Mayor Clayton joined the meeting via Zoom.
Consent Agenda
Commissioner Skidmore moved to approve the consent agenda, seconded by Commissioner Allen.
The consent agenda included the minutes from the September 16, 2026 Regular Meeting, the August
2026 Finance Monthly Report, Partner Agency Reports for August 2026 from Ottawa Main Street
Association and Ottawa Library, award of the South Sludge Pond Removal & Land Application 2026
services contract to Sandyland Environmental Services in the amount of $170,000.00, authorization to
purchase 34 computers from GHA in the amount of $26,350, and agenda approval. The motion was
considered and upon being put, all present voted aye. Mayor Pro Tem Crowley declared the consent
agenda duly approved.
Update on Proximity Park Land Sale Agreement
The Governing Body discussed the Proximity Park Land Sale Agreement with Lightfield Energy,
LLC. Discussion included the status of any incentive application, whether a development agreement
had been submitted or negotiated, and the timeline remaining before the October 30, 2026 closing
deadline.
Director Landis stated that the City had not received an incentive application or entered into related
incentive discussions. She reviewed the general incentive review process, including internal review,
outside analysis, review by the Economic Development Committee, involvement of other taxing
September 23, 2026

Unofficial Until Approved
1

City of Ottawa
Regular Meeting Minutes
September 23, 2026
Page 2

jurisdictions when applicable, a public hearing, and final consideration by the Governing Body.
City Attorney Finch stated that Lightfield had not signed a development agreement and that no draft
development agreement had been submitted. He explained that a development agreement for a project
of this size would typically include detailed project information, compliance with applicable federal,
state, and local requirements, utility-related provisions, community benefit provisions, incentive
obligations, and other requirements. City Attorney Finch stated that similar agreements can be lengthy
and may take significant time to negotiate after incentive terms are known.
The Governing Body discussed whether the closing conditions could be met before the October 30,
2026 deadline. Discussion included available options under the agreement.
Mayor Pro Tem Crowley made a motion, seconded by Commissioner Allen, based upon all the
information available, namely failure to apply for economic development incentives and to negotiate a
development agreement consistent with the purchaser’s disclosed plans and federal, state, and local
law, that the City, as seller, has determined in its reasonable discretion that certain seller closing
conditions cannot be met to its satisfaction prior to closing, and to direct staff to give written notice
terminating the contract under Section 8.D. The motion was considered and upon being put, all present
voted aye. Mayor Pro Tem Crowley declared the motion duly approved.
Following the vote, members of the Governing Body commented on the length of the process, the
amount of staff time involved, the importance of due diligence, the need for a development agreement,
and the desire to find the right future fit for Proximity Park.
Mayor Clayton left the meeting via Zoom at 5:11 p.m.
Public Comments
Public comments were given by:
• Scott Yeargain, Ottawa, spoke regarding the Proximity Park interlocal agreement with Franklin
County
• Carine Ullom, Ottawa, read testimony from Polly Shteamer regarding data centers
• Kelly Pinet, Ottawa, spoke regarding data centers
• Michael Lewis, 433 S. Poplar St., spoke regarding the Proximity Park contract
• Daniel Williams, Quenemo, spoke regarding Flock cameras
City Attorney Finch responded to comments regarding the Proximity Park interlocal agreement. He
stated that the interlocal agreement was entered into in 2014 and was not recorded with the Register of
Deeds or filed with the Secretary of State at that time. He stated that the agreement has since been
recorded with the Register of Deeds but has not been filed with the Secretary of State. City Attorney
Finch referenced Attorney General Opinion No. 88-37, which provides that failure to file an interlocal
agreement does not render the contract void or unenforceable when the agreement substantially
complies with other requirements of the act and has been subsequently acted upon or partially
performed by the parties. He stated that in this case, the agreement was approved by City resolution
and County resolution, reviewed by the Attorney General’s Office, and subsequently recorded with the
Register of Deeds. Based on that opinion, City Attorney Finch stated that failure to file the agreement
does not render the contract void or unenforceable and does not affect title or ownership of the
September 23, 2026

Unofficial Until Approved
2

City of Ottawa
Regular Meeting Minutes
September 23, 2026
Page 3

property. He noted that the agreement states the County will receive one-third of proceeds from any
sale and that this was the only portion of the agreement not fully acted upon.
Declaration
No declarations were made.
Unfinished Business
None.
New Business
Public Hearing – 2026 CDBG Blueprint to Build Application
Mayor Pro Tem Crowley opened the public hearing at 5:27 p.m.
City Manager Moddie presented information regarding the City’s proposed 2026 CDBG Blueprint to
Build application. He stated that the public hearing was part of the CDBG application process and did
not approve a final application, final design, construction contract, financing, or related resolutions.
City Manager Moddie reviewed Blueprint to Build requirements, including the use of pre-designed
blueprints, permitted minor modifications, site-specific final design activities, civil engineering, and
required facility components. He reviewed selection criteria, including consideration of site location,
alternative solutions, low and moderate-income benefit requirements, prior CDBG awards, and local
funding from private donations or foundation grants.
City Manager Moddie discussed the proposed Large Gym & Pool Community Center at Forest Park.
He noted that Forest Park is close to downtown and within the City’s general corridor, and he
referenced prior survey information from the school district, Ottawa Recreation Commission, and the
City showing interest in an indoor facility.
City Manager Moddie reviewed funding considerations, including that local funding is required for all
CDBG projects, no project can be funded entirely by grants, matching funds may come from private
sources, fundraising is encouraged, and at least 10 percent of the matching funds must be cash from a
local source. He stated that the public hearing notice identified an estimated project cost of
$10,750,000 and a proposed CDBG request of $4,000,000.
City Manager Moddie explained that the City is continuing to evaluate project scope, preliminary cost
estimates, financing structure, and possible adjustments to the concept. Discussion included potential
design modifications, including an additional pool lane, a small concessions area, lounge area in the
aquatics facility, and possible gymnasium adjustments. He noted that small, medium, and large design
modifications may be treated differently by Kansas Commerce and that major design changes could
impact project cost and future operational costs. Other potential project costs discussed included site
preparation, parking, street adjustments, utility relocation, dirt work, erosion control, and stormwater
management.
Public comments were received from:
• Gabrielle Uht, speaking on behalf of the Ottawa Swim Club, spoke regarding the need for at
least six swim lanes, and preferably eight lanes, to support year-round swim club operations
and larger meets.
September 23, 2026

Unofficial Until Approved
3

City of Ottawa
Regular Meeting Minutes
September 23, 2026
Page 4

•
•
•
•
•
•

•
•
•
•
•

Jeff Brewer, former swim team coach, spoke regarding swim meet requirements and possible
uses for the facility, including training, rehabilitation, special needs classes, and swim lessons.
Charles Buckallew, Ottawa Swim Club, spoke regarding the need for six to eight lanes to
support competitive swimming.
Michael Lewis spoke regarding continued application development, community input, special
needs accommodation, and whether the City should proceed if project details do not meet
community needs.
Kevin Leslie spoke regarding the Ottawa Recreation Commission facility, examples from
Osawatomie, the need for a heated pool, senior programming, social activities, and possible
alternate locations.
Renata Buckallew, Ottawa Swim Board President, spoke regarding keeping swim opportunities
in Ottawa and supporting high school and collegiate swimming opportunities.
Steve Geiss spoke regarding support for grant funding and an indoor pool while expressing
concern about losing the outdoor pool, staffing, and year-round operations.
Brenda Bluma spoke regarding competition lane needs, support for both indoor and outdoor
pools, and willingness to serve on a committee.
Greg Hernandez spoke regarding the CDBG prototype concept, pool lane needs, and the
proposed Forest Park location.
Greg Hazen spoke regarding accessibility, traffic, roads within Forest Park, possible ORC site
considerations, and the need to further evaluate the project before moving forward.
Kevin Leslie spoke again regarding project timing, use of Forest Park land, and amenities that
could draw people to Ottawa.
Brent Rodina, Keller Williams, spoke regarding support for a six-lane pool, a therapeutic pool,
and having services close to home.

There being no further comments, Mayor Pro Tem Crowley closed the public hearing at 6:28 p.m.
Commissioner Allen made a motion, seconded by Commissioner Van Leiden, to continue the 2026
CDBG Blueprint to Build grant application process. The motion was considered and upon being put,
all remaining members present voted aye. Mayor Pro Tem Crowley declared the motion duly
approved.
City Manager Comments
City Manager Moddie provided operational updates from City departments. Water Distribution
completed the Poplar Street water main replacement. Electric Distribution completed pole transfers at
7th and Olive streets and 7th and Hickory streets, supported the tractor show, car show, and Ottawa
University with banner installations, and Electric Production completed a maintenance run on Unit 4.
Streets completed concrete repairs on the 1300 block of Olive and patched 803 potholes. Parks
completed mowing across all properties and prepared park areas for the car show.
City Manager Moddie highlighted upcoming community events, including the Bad Astra Welcome
Party, Ladies Night Out, and Community Public Safety Academy registration. He also noted the
current City employment opportunity for Assistant Human Resources Director and reviewed tentative
items for the October 7, 2026 Regular Meeting.
September 23, 2026

Unofficial Until Approved
4

City of Ottawa
Regular Meeting Minutes
September 23, 2026
Page 5

Governing Body Comments
Members of the Governing Body commented on the future of Proximity Park and the importance of
considering development opportunities that are appropriate for the community and provide long-term
public benefit.
Mayor Pro Tem Crowley thanked staff for their work and acknowledged the public input received
during the process.
Announcements
A. September 30, 2026 – Study Session, 4:00 p.m., City Hall - Cancelled
B. October 7, 2026 – City Commission Meeting, 7:00 p.m., City Hall
C. October 14, 2026 – City Commission Meeting, 4:00 p.m., City Hall
Executive Session
Recess
Commissioner Skidmore made a motion, seconded by Commissioner Van Leiden, that the Ottawa
City Commission recess into executive session to discuss personnel matters of nonelected personnel
pursuant to the exception provided in K.S.A. 75-4319(b)(1) for a time not to exceed 10 minutes. The
open meeting will resume here in the Commission Chambers no later than 6:45 p.m. The motion was
considered and upon being put, all present voted aye. Mayor Pro Tem Crowley declared the meeting
duly recessed.
Reconvene
Commissioner Van Leiden made a motion, seconded by Commissioner Allen, to reconvene into open
session. The motion was considered and upon being put, all present voted aye. Mayor Pro Tem
Crowley declared the meeting duly reconvened at 6:43 p.m.
Adjournment
There was no further business before the Governing Body. Mayor Pro Tem Crowley declared the
meeting duly adjourned at 6:43 p.m.
Melissa Scherman, City Clerk

September 23, 2026

Unofficial Until Approved
5

Agenda Item: 6.B
City of Ottawa
City Commission Meeting
October 7, 2026
TO:
SUBJECT:
INITIATED BY:
AGENDA:

City Commission
Award of Services Contract - 2026 Sanitary Sewer CIPP Lining Project
Utilities Department
Consent

Recommendation: Approve the 2026 Sanitary Sewer CIPP Lining Project with Insituform Technologies
USA, LLC in the amount of $477,744.19, and authorize the City Manager to execute the
proposal/agreement and all necessary documents related to project completion.
Background: The Utilities Department has identified sanitary sewer mains for rehabilitation through
cured-in-place pipe (CIPP) lining. Insituform Technologies USA, LLC submitted a proposal dated
September 10, 2026, to rehabilitate 13,201 linear feet of 8-inch sanitary sewer using the Insituform®
CIPP process. The proposal is based on unit pricing established through Johnson County IFB 2024-069,
Sanitary Sewer Collection System Rehabilitation and Repair (CIPP/MH) Price Agreement, which was bid
on December 10, 2024. The proposed unit price is $36.19 per linear foot.
Analysis: The proposal includes pipeline cleaning of loose debris and normal deposits up to two inches,
installation of the CIPP liner in accordance with ASTM F1216, bypassing, dry-weather work, pre- and
post-installation internal video inspection, and standard insurance coverage. All labor, equipment,
material, supervision, and mobilization necessary to complete the Insituform® process under the stated
proposal conditions are included.
The proposed work and pricing are as follows:
Work Item
Quantity
8-inch x 6 mm sanitary sewer CIPP lining
13,201 LF

Unit Price
$36.19 / LF

Total
$477,744.19

The proposal excludes excavation point repairs for collapsed pipe or other obstructions that cannot be
addressed through conventional cleaning, repairs associated with collapsed sections, protruding taps or
lodged equipment, performance/payment bonding, special insurance, professional-engineer-stamped
documents, and weekend or holiday work. The City is responsible for providing access to all manholes,
required permits and tax-exemption documentation, an accessible hydrant for project water, and a
disposal site for sewer-cleaning debris. Any work outside the included scope would be handled separately
and only with City authorization.
Project Schedule: The proposal does not establish specific construction start and completion dates. Work
is proposed for dry-weather conditions and normal weekday working hours. Staff will coordinate the final
schedule with Insituform following authorization and execution of the agreement.
Financial Considerations: The adopted 2026 budget includes $500,000.00 for this sewer lining project.
The proposed contract amount of $477,744.19 is $22,255.81 below the budgeted amount. Funding for the
project will come from the Manhole and Pipe Lining (036-5-3602-760.00) line in the Wastewater
operational budget. The quoted amount covers the base CIPP scope identified in the proposal; excluded
point repairs or other additional work would require separate authorization and available budget authority.
Legal Considerations: The accepted Insituform proposal states that it constitutes the formal agreement
when signed. Prior to execution, staff will confirm compliance with applicable City procurement

requirements, insurance requirements, tax-exemption documentation, and any other contract conditions.
The proposal identifies performance/payment bonding as an additional cost if required. No extra work
outside the authorized scope should proceed without City approval.
Recommendation: Approve the 2026 Sanitary Sewer CIPP Lining Project with Insituform Technologies
USA, LLC in the amount of $477,744.19, and authorize the City Manager to execute the
proposal/agreement and all necessary documents related to project completion, subject to review and
approval of required insurance and contract documentation.

PROCLAMATION
WHEREAS, the City of Ottawa, Kansas is committed to ensuring the safety and security of all those living in
and visiting Ottawa; and
WHEREAS, fire is a serious public safety concern both locally and nationally, the presence of lithium-ion
batteries in many household devices introduce fire risk: and
WHEREAS, most rechargeable electronics used in homes daily, including smartphones, tablets, laptops, powertools, e-bikes, e-scooters, and toys, are powered by lithium-ion batteries, which if misused, damaged, or
improperly charged, can overheat, start a fire, or explode; and
WHEREAS, the Ottawa Fire Department and the National Fire Protection Association (NFPA) reports an
increase in battery-related fires, underscoring the need for public education on the safe use of lithium-ion
batteries and devices; and
WHEREAS, the way lithium-ion battery devices are charged can make a difference in helping prevent home
fires; and
WHEREAS, safe charging includes using the cord and charger that came with your device or one approved by
the manufacturer, charging on a hard, flat surface, watching for warning signs like devices that are very hot or
start to swell, unplugging them when fully charged, and charging larger devices like e-bikes outside and away
from exits; and
WHEREAS, Ottawa’s residents are encouraged to understand that safe charging means making smart choices
every time they plug in; and
WHEREAS, Ottawa Fire Department first responders remain dedicated to reducing the occurrence of home
fires and home fire injuries through prevention, safety education, and community outreach; and
WHEREAS, Ottawa’s residents who are responsive to public education measures are better able to take
personal steps to increase their safety from fire, especially in their homes; and
WHEREAS, the 2026 Fire Prevention Week theme, “Charge into Fire Safety. Safe Charging is a Superpower,”
serves to remind all residents that safe charging can help reduce the risk of fires in homes and communities.
THEREFORE, the Governing Body of City of Ottawa, does hereby proclaim the week of October 4-10, 2026, as

FIRE PREVENTION WEEK
and urges the citizens of Ottawa to learn about and practice safe charging habits.
Signed this 7th day of October 2026.

_________________________________________
Zach Clayton, Mayor

City of Ottawa
City Commission Regular Meeting
October 7, 2026
TO:
SUBJECT:

PREPARED BY:
AGENDA:

Agenda Item: 11.A-B

Mayor and City Commission
11.A Public Hearing: Proposed South Haven Estates Reinvestment
Housing Incentive District
11.B Ordinance Establishing the South Haven Estates Reinvestment
Housing Incentive District
Director of Finance and Bond Counsel
New Business

Recommendation: Hold a Public Hearing on the Reinvestment Housing Incentive District
(South Haven 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
(South Haven Estates Reinvestment Housing Incentive District).
Background: The City of Ottawa received an Economic Incentive Application from Premier
Home Development LLC requesting the establishment of a Reinvestment Housing Incentive
District (RHID) to develop twenty-three for-sale single-family homes at 916 W 17th Street.
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 Act's first and third criteria.
On August 27, 2025, the City Commission passed Resolution 1991-25, determining the need for
housing within the City of Ottawa and setting forth the legal description of the proposed RHID
for South Haven Estates. The resolution and request were submitted to the Kansas Department of
Commerce, and a confirmation letter was received on October 3, 2025, supporting the creation of
the South Haven Estates RHID.
On August 19, 2026, the City Commission passed Resolution 2020-26 determining that the City
is considering establishing a Reinvestment Housing Incentive District (RHID) within the City
and adopting a plan for the development of housing and public infrastructure, establishing the
date and time of a public hearing, and providing for notice of the hearing for South Haven
Estates Reinvestment Housing Incentive District. The Resolution set the Public Hearing to be
held on October 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
916 W 17th Street into twenty-three single-family homes, proposed as 1,504 to 2,479 sq ft forsale properties. The proposed market price for these units will be $350,000 to $500,000. This
subsection of for-sale homes falls within the parameters of housing needs as outlined in the 2025
Housing Study, which states that in the next five years, the City of Ottawa will need an
additional 86 new homes in the price range of $350,000-$449,999, and 54 new homes with a sale
price of $450,000+.
Analysis: The process for incentive consideration is set as follows:
 August 27, 2025 City Commission determined the need for the creation of a
Reinvestment Housing Incentive District through Resolution 199125 and submitted a request for approval to the Kansas Department
of Commerce
 October 3, 2025 City received approval by Kansas Department of Commerce for
establishment of RHID
 July, 2026
But-For Analysis/Feasibility Study conducted by City Staff
 August 17, 2026 Economic Incentive Review Committee met to discuss request
 August 19, 2026 City Commission adopted a Resolution defining the proposed
Development Plan, intent to establish a district, and set a public
hearing
o October 7, 2026 City Commission Action Step 3: Hold public hearing
o October 7, 2026 City Commission Action Step 4: Consider Ordinance adopting
the Development Plan, establishing the district, and approving
the Development Agreement
o Nov. 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: Premier Home Development, LLC
• Proposed development of the vacant lot located at 916 W 17th Street.
• Current assessed valuation of the property is $8,299
• Housing Facilities:
o 23 single-family for-sale properties (1,504 to 2,479 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 South Haven 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 estimated reimbursement
capacity of the 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 requested reimbursement of $1,345,575 by the Developer.
The Development Plan is provided as Attachment 11.B.1.
The Development Agreement outlines the Incentive terms:
• Agreement between the City of Ottawa, KS, and Premier Home Development, LLC
• RHID Reimbursable cap of $1,345,575
• Terms of the RHID: the district shall expire on the earlier of 2041, 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 a 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 South Haven 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 11.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 October 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 (South Haven Estates Reinvestment Housing
Incentive District)” or
2. Refer item 11.B to a future regular meeting for continued deliberations.
Attachments:
11.B.1
Development Plan – South Haven Estates Reinvestment Housing Incentive
District
11.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 (South
Haven Estates Reinvestment Housing Incentive District)
11.B.3
Development Agreement – South Haven Estates Reinvestment Housing Incentive
District

DEVELOPMENT PLAN
SOUTH HAVEN ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT
IN THE CITY OF OTTAWA, KANSAS
OCTOBER 7, 2026

91749356.3

DEVELOPMENT PLAN INTRODUCTION
On July 16, 2025, the Governing Body of the City of Ottawa, Kansas (the “City”) adopted Resolution No.
1991-25, 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. 1991-25, 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 October 3, 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 2026 is approximately $8,296 on
land and $0 on all improvements, as listed on Exhibit C, attached hereto.

91749356.3

1

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

Premier Home Development, LLC
108 N. Main Street
Ottawa, KS 66067

4. The housing and public facility project that are proposed to be constructed include the following:
Construction of 23 single-family homes for sale (the “Project”). The Project includes land
acquisition, site preparation, utilities extensions (the “Public Improvements”), permits, bank and
legal fees, appraisal fees, design fees, eligible construction expenses, loan interest, and vertical
construction of homes. The applicant plans to construct three home models, which vary by size and
price as described in the following table:

Model
A
B
C

# Units
6
6
11

Bedrooms Baths
3
3
5

2
2
3

Basement
N
N
Y

Garage

Y / 2 stalls
Y / 2 stalls
Y / 2 stalls

Square
Feet
1,504
1,635
2,479

Sale
Price
$350,000
$375,000
$500,000

In total, 23 units will be constructed, consisting of 46,103 square feet at a total construction cost
of approximately $8,151,040. The total estimated costs of the Project, including the foregoing
construction cost, is $10,390,040
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:
Premier Home Development, LLC
108 N. Main 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 related
to the District and incentives afforded under K.S.A. 12-5241 et seq. (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. The City has conducted an analysis, attached hereto as Exhibit D, 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, Public
91749356.3

2

Improvements and other eligible costs 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, Public
Improvements and other eligible expenses. 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, Public Improvements and other eligible expenses.

[REMAINDER OF PAGE LEFT BLANK]

91749356.3

3

EXHIBIT A
LEGAL DESCRIPTION OF PROPOSED
SOUTH HAVEN ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT
Lots 1-23, and Tract A, South Haven Estates,
a subdivision in the City of Ottawa, Franklin County, Kansas

91749356.3

A-1

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

601303.20074\DEVELOPMENT PLAN

B-1

EXHIBIT C
2026 ASSESSED VALUATION

Parcel ID
030-131-11-0-20-06-015.24-0
030-131-11-0-20-06-015.23-0
030-131-11-0-20-06-015.22-0
030-131-11-0-20-06-015.21-0
030-131-11-0-20-06-015.20-0
030-131-11-0-20-06-015.19-0
030-131-11-0-20-06-015.18-0
030-131-11-0-20-06-015.17-0
030-131-11-0-20-06-015.16-0
030-131-11-0-20-06-015.15-0
030-131-11-0-20-06-015.14-0
030-131-11-0-20-06-015.13-0
030-131-11-0-20-06-015.12-0
030-131-11-0-20-06-015.11-0
030-131-11-0-20-06-015.10-0
030-131-11-0-20-06-015.09-0
030-131-11-0-20-06-015.08-0
030-131-11-0-20-06-015.07-0
030-131-11-0-20-06-015.06-0
030-131-11-0-20-06-015.05-0
030-131-11-0-20-06-015.04-0
030-131-11-0-20-06-015.03-0
030-131-11-0-20-06-015.02-0
030-131-11-0-20-06-015.01-0

601303.20074\DEVELOPMENT PLAN

2026 Assessed Value
(Land)
$373.00
$337.00
$337.00
$337.00
$338.00
$338.00
$338.00
$338.00
$329.00
$320.00
$388.00
$349.00
$343.00
$379.00
$322.00
$325.00
$330.00
$336.00
$336.00
$336.00
$336.00
$337.00
$337.00
$457.00

C-1

2026 Assessed Value
(Improvements)
$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0$-0-

EXHIBIT D
COMPREHENSIVE FINANCIAL FEASIBILITY ANALYSIS
[ATTACHED]

601303.20074\DEVELOPMENT PLAN

D-1

South Haven Estates: RHID
Feasibility Study Completed by The City of Ottawa

Executive Summary
The City of Ottawa prepared this Feasibility Study in response to a request for an economic
incentive from Premier Home Development, LLC. The proposed project is the development of
South Haven Estates, a planned 23-single-family home subdivision.
The applicant has requested the formation of a Reinvestment Housing Incentive District (RHID)
to help fund this housing project. This RHID is a form of housing development assistance
allowed under the State of Kansas and offered by the City of Ottawa to help encourage
development. Specifically, the request is for up to $1,345,575 reimbursement through a 100%
property tax redirection for an undetermined number of years through the establishment of an
RHID related to public infrastructure costs.
This analysis considers whether the project would likely be undertaken in the current market
without the incentive requested and the length of time the project needs financial assistance. To
determine the likelihood, the estimated value of the return to the developer was considered
compared to returns for other incentive-supported housing developments that are being or have
been constructed within the City of Ottawa. To determine the length of time financial assistance
is needed, a series of financial calculations were performed using the project estimates provided
by the developer and market data.

Background
The project site is located at 916 W 17th St. The approximately 5.68-acre site is found southeast
of 17th Street and Osage Drive. The project is located close to Sunflower Elementary School and
amenities in the city, such as the Goppert Center and Ottawa Lake. The project site has access to
electric, water, and sewer utilities. The site was purchased by the applicant in January 2025.

In 2025, the applicant submitted the Pre-Application to the City of Ottawa related to the RHID
process. City Staff presented the development concept to the City Commission on August 27,
2025, as the first step in the RHID process (see Appendix A). The Commission recognized that
this development project fits within the housing needs outlined in the bi-annual Housing Study
for the City of Ottawa and sent the required letter of request to the Kansas Department of
Commerce on September 9, 2025; in response, the City received an approval letter dated October
3, 2025.
Within the Housing Study, this development fits within two sub-sections of housing: the need for
86 new homes for sale within the range of $350,000-$449,999 and the need for 54 new homes
for sale at the price point of $450,000+.
Description of Incentive Request
The applicant is requesting $1,345,575 in 100% property tax redirection through the creation of
an RHID, for an undetermined number of years.

Sections 12-5241 through 12-5256 of the Kansas Statutes, the Kansas Reinvestment Housing
Incentive District Act (RHID Act) provide a means for cities to finance public improvement costs
with incremental real estate taxes. The RHID Act is a financial incentive tool to encourage the
construction of single- and multi-family development in areas experiencing a shortage of
housing.
RHIDs redirect the incremental increase in property taxes resulting from the project to reimburse
eligible RHID costs. RHID eligible costs vary across projects, but for this proposed project,
eligible costs include land acquisition, site preparation, utilities extensions, permits, bank and
legal fees, appraisal fees, design fees, eligible construction expenses, and loan interest. The total
value of the RHID revenue, limited to the applicants’ eligible costs, is estimated to be
$1,345,575.
The Project
The applicant has proposed the construction of 23 single-family homes for sale. 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
A
B
C

# Units
6
6
11

Bedrooms Baths
3
2
3
2
5
3

Basement
N
N
Y

Garage
Y / 2 stalls
Y / 2 stalls
Y / 2 stalls

Square
Feet
1,504
1,635
2,479

Construction
Costs
$ 278,240
$ 302,475
$ 424,250

In total, 23 units will be constructed, consisting of 46,103 square feet at a total construction cost
of $8,151,040.
Sources and Uses for the Applicant’s request are detailed in the following table:
Sources
Private Debt
Equity
RHID
TOTAL:

Amount
$ 8,624,465
$ 420,000
$ 1,345,575
$10,390,040

Private
$8,624,465
$ 420,000

Uses
Land
Hard Costs
Soft Costs
Contingency
TOTAL:

Amount
$ 250,000
$ 8,757,498
$ 1,332,542
$
50,000
$10,390,040

Private

$9,044,465

$ 8,151,040
$ 843,425
$
50,000
$ 9,044,465

RHID

$1,345,575
$1,345,575
RHID
$ 250,000
$ 606,458
$ 489,117
$ 1,345,575

% of Project
Total
83.0 %
4.0 %
13.0 %
100.0%
% of Project
Total
2.4%
84.3%
12.8%
0.5 %
100.0%

Return Analysis
The applicant provided detailed revenue and expenditure estimates with satisfactory
documentation. A breakdown of costs is below:
Acquisition Costs
The applicant paid $250,000 for the 5.68-acre site. This equates to $44,014 per acre, or $1.01 per
square foot (PSF). The parcel is currently appraised at $69,160. This parcel is the result of a lot
split created by the purchase of this property by the developer. While limited comparable
properties are available, sales of similar properties in the last three years resulted in an average
per-acre price of $24,465, and a PSF of $0.56. Based on the land price provided, the cost per
single-family lot is approximately $10,870.
Construction Costs
The applicant’s construction estimates are based upon estimates gathered from local contractors
who will be completing the project. Budgeted expenditure documentation was provided by the
applicant.
Developer Fee
The Applicant’s pro forma includes a developer fee of $670,284, which equates to 6.5% of the
total project cost.
Soft Costs, Contingency, and Other Expenses
The Applicant provides a detailed overview of various soft costs. These include contingency,
engineering, permits, and other fees. Each of these components is less than 10.0 % of the total
Project cost. Expenses related to soft costs and contingency can vary widely, but the industry
standard for budgeting typically ranges between 5.0 % and 10.0%. The applicant’s soft costs and
contingency assumptions are considered reasonable as they fall within the industry standard
range.
Evaluate the Project’s Revenues
The expected project revenue sources are the sale of homes. The plan is to sell the 23 singlefamily homes over three years. Below is an approximate timeline.
Project Timeline:
Year
2026
2027
2028
2029
TOTAL

Home
Total
Infrastructure Construction Construction
$856,458

$856,458

$ 834,720
$3,073,820
$4,242,500
$8,151,040

$1,691,178
$3,073,820
$4,242,500
$9,007,498

Total Sales

Units
Constructed

Units
Sold

$ 700,000
$4,150,000
$5,000,000
$9,850,000

3
10
10
23

2
11
10
23

Home Sale Price
The estimated sale prices for each model are as follows:
Model
A
B
C

Bedrooms

Baths

3
3
5

2
2
3

Garages
Y / 2 stalls
Y / 2 stalls
Y / 2 stalls

Net Square
Feet

1,504
1,635
2,479

Estimated
Sale Price
$ 350,000
$ 375,000
$ 500,000

These models align with the Housing Needs Study for the City by fitting into two sub-sections of
housing: the need for 86 new homes for sale with a sale range of $350,000-$449,999, and the
need for 54 new homes with a sale price of $450,000+.
The home sale values supplied by the Applicant were compared with available homes on the
market at the drafting of this analysis. Comparables:
Address
Comparable A
Comparable B
Comparable C

Bedrooms

Baths

3
3
5

2
2
3

Garages
2
3
2

Net Square
Feet

1,400
1,655
2,479

Listed Price
$ 325,000
$ 389,500
$ 450,000

These comparables show the price suggestions are within an acceptable deviation.
Conclusion
According to the analysis (see Appendix B), the return on investment (ROI) for the developer
shows that, but for this incentive, this project would not be financially feasible. With no
incentive, this project shows a -5.2% ROI for the applicant.
While RHID incentives are eligible for up to 25 years, the But-For-Analysis, in Appendix C,
demonstrates this project has the capacity for repayment in 12-13 years. This report supports a
15-year period to account for any building or market delays. The Applicant’s $1,345,575 request
represents 13.0% of the total project costs of $10,390,040. The requested reimbursement would
generate a ROI of 7.8%.
If the calculations for this project included costs beyond infrastructure to include vertical
construction costs, the project would generate a ROI of between 17-25%, which is equivalent to
other incentive-supported housing projects under construction within the City of Ottawa,
Appendix C suggests the project could generate sufficient increment within 20 years.

Appendix A
RHID Incentive Process
Incentive Application Received

City Commission Action Step #1: Resolution to Establish RHID District presented for
consideration

City sends certified Resolution to the Secretary of Commerce for approval

Kansas Department of Commerce approves RHID creation

City prepares Feasibility Study

Economic Incentive Review Committee meets to discuss request.

City Commission Action Step #2: Consider Resolution defining Development Plan, creation
of district, and sets public hearing date.

City Commission Action Step #3: Holding public hearing.

City Commission Action Step #4: Consider Ordinance adopting the Development Plan,
establishing the district, and approving the Development Agreement

End of 30-day protest period for Board of Education and Board of County Commissioners

Appendix B
Return on Investment
Revenues

Scenario A

Scenario B

(without incentive)
$ 9,850,000

(with incentive)
$ 9,850,000
$ 1,345,575

Total Revenues

$ 9,850,000

$ 11,195,575

Total Project Expenses

$ 10,390,040

$ 10,390,040

Return on Investment
% of ROI

($ 540,040)
-5.2%

$ 805,535
7.8%

Home Sales
RHID Reimbursement

Scenario A: Revenues consist of only home sales with no RHID incentive reimbursement. The
ROI shown is -5.2%. Demonstrating the need for an incentive to make this project financially
feasible.
Scenario B: Revenues consist of both home sales and the RHID incentive reimbursement
request from the developer. This reimbursement increment would take approximately 12 years
for the project to generate. The ROI shown is 7.8%, which is less than other incentive-supported
housing projects within the City of Ottawa.

Appendix C
South Haven Estates RHID
Estimated Eligible Expenses
Estimated Total RHID Increment

$1,345,575
$3,513,753
Aggregate
2025/2026
Mill Levy

Property Tax
on Base
Value

Per
lot

158.427
158.427

$1,314.79

$57.16

Estimated
Value

Property
Class

Mill
Levy

Est.
Property
Tax

Less
Taxes on
Base

1
Parcel
$350,000.00
2
Parcel
$350,000.00
3
Parcel
$350,000.00
4
Parcel
$350,000.00
5
Parcel
$350,000.00
6
Parcel
$350,000.00
7
Parcel
$375,000.00
8
Parcel
$375,000.00
9
Parcel
$375,000.00
10
Parcel
$375,000.00
11
Parcel
$375,000.00
12
Parcel
$375,000.00
13
Parcel
$500,000.00
14
Parcel
$500,000.00
15
Parcel
$500,000.00
16
Parcel
$500,000.00
17
Parcel
$500,000.00
18
Parcel
$500,000.00
19
Parcel
$500,000.00
20
Parcel
$500,000.00
21
Parcel
$500,000.00
22
Parcel
$500,000.00
23
Parcel
$500,000.00
Estimated annual total
Estimated cumulative total

11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%
11.50%

158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427
158.427

$6,376.69
$6,376.69
$6,376.69
$6,376.69
$6,376.69
$6,376.69
$6,832.16
$6,832.16
$6,832.16
$6,832.16
$6,832.16
$6,832.16
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55
$9,109.55

$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16
$57.16

Land
Building
Total

Lot
No.

Current
Assessed Value
$
8,299
$
$
8,299

Less
Property
Annual
State levy for USD
Tax Less
Increment
Annual
20 Mills
Amount Not Eligible
Tax
Cumulative
$805.00
$805.00
$805.00
$805.00
$805.00
$805.00
$862.50
$862.50
$862.50
$862.50
$862.50
$862.50
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00
$1,150.00

Assumptions: 3 houses completed by December 2027 (appraised Jan 2028 for taxes collected in 2028/2029)
10 houses completed by December 2028 (appraised Jan 2029 for taxes collected in 2029/2030)
10 houses completed by December 2029 (appraised Jan 2030 for taxes collected in 2030/2031)
Constant AV per house
11.5% property class for assessed value
Constant mill levy based on 2026 levy
District created 2026

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902

$5,515
$11,029
$16,544
$22,058
$27,573
$33,087
$39,000
$44,912
$50,825
$56,737
$62,650
$68,562
$76,465
$84,367
$92,269
$100,172
$108,074
$115,976
$123,879
$131,781
$139,684
$147,586
$155,488

South Haven Estates RHID
Estimated Eligible Expenses
Estimated Total RHID Increment

Lot
No.
1
Parcel
2
Parcel
3
Parcel
4
Parcel
5
Parcel
6
Parcel
7
Parcel
8
Parcel
9
Parcel
10
Parcel
11
Parcel
12
Parcel
13
Parcel
14
Parcel
15
Parcel
16
Parcel
17
Parcel
18
Parcel
19
Parcel
20
Parcel
21
Parcel
22
Parcel
23
Parcel
Estimated annual total
Estimated cumulative to

Year 1
2027

2

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$5,515
$5,515
$5,515
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,544
$16,544

3

4

5

6

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$0
$7,902
$7,902
$7,902
$76,465 $155,488 $155,488 $155,488
$93,008 $248,496 $403,985 $559,473

7

8

9

10

11

12

13

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$714,962

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$870,450

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,025,938

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,181,427

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,336,915

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,492,404

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,647,892

Assumptions: 3 houses completed by December 2027 (appraised Jan 2028 for taxes collected in 2028/2029)
10 houses completed by December 2028 (appraised Jan 2029 for taxes collected in 2029/2030)
10 houses completed by December 2029 (appraised Jan 2030 for taxes collected in 2030/2031)
Constant AV per house
11.5% property class for assessed value
Constant mill levy based on 2026 levy
District created 2026

South Haven Estates RHID
Estimated Eligible Expenses
Estimated Total RHID Increment

Lot
No.

14

1
Parcel
$5,515
2
Parcel
$5,515
3
Parcel
$5,515
4
Parcel
$5,515
5
Parcel
$5,515
6
Parcel
$5,515
7
Parcel
$5,912
8
Parcel
$5,912
9
Parcel
$5,912
10
Parcel
$5,912
11
Parcel
$5,912
12
Parcel
$5,912
13
Parcel
$7,902
14
Parcel
$7,902
15
Parcel
$7,902
16
Parcel
$7,902
17
Parcel
$7,902
18
Parcel
$7,902
19
Parcel
$7,902
20
Parcel
$7,902
21
Parcel
$7,902
22
Parcel
$7,902
23
Parcel
$7,902
Estimated annual total $155,488
Estimated cumulative to $1,803,380

15

16

17

18

19

20

21

22

23

24

25

Total

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$1,958,869

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,114,357

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,269,846

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,425,334

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,580,822

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,736,311

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$2,891,799

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$3,047,288

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$3,202,776

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$3,358,264

$5,515
$5,515
$5,515
$5,515
$5,515
$5,515
$5,912
$5,912
$5,912
$5,912
$5,912
$5,912
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$7,902
$155,488
$3,513,753

$132,349
$132,349
$132,349
$126,834
$126,834
$126,834
$135,987
$135,987
$135,987
$135,987
$135,987
$135,987
$181,755
$173,853
$173,853
$173,853
$173,853
$173,853
$173,853
$173,853
$173,853
$173,853
$173,853
$3,513,753

Assumptions: 3 houses completed by December 2027 (appraised Jan 2028 for taxes collected in 2028/2029)
10 houses completed by December 2028 (appraised Jan 2029 for taxes collected in 2029/2030)
10 houses completed by December 2029 (appraised Jan 2030 for taxes collected in 2030/2031)
Constant AV per house
11.5% property class for assessed value
Constant mill levy based on 2026 levy
District created 2026

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 (SOUTH HAVEN 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 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. 1991-25, 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, pursuant to a letter dated October 3, 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 South Haven Estates Reinvestment Housing
Incentive District (the “District”) in accordance with the provisions of the Act; and
WHEREAS, the Plan includes:
1.

The legal description and map required by K.S.A. 12-5244(a);

601303.20074\ORDINANCE ESTABLISHING DISTRICT

1

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; and
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; and
WHEREAS, the Governing Body of the City has heretofore adopted Resolution No. 2020-26,
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 October 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 October 7, 2026; and
WHEREAS, upon reviewing 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 South Haven 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 October 7, 2026, was duly made in accordance with the provisions of the Act.
Section 2.
Creation of Reinvestment Housing Incentive District. The South Haven Estates
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 1-23, and Tract A, South Haven Estates, a subdivision in the City of Ottawa, Franklin
County, Kansas
The District’s boundaries do not contain any property not referenced in Resolution No. 2020-26,
which provided notice of the public hearing on the creation of the District and adoption of the Plan.

601303.20074\ORDINANCE ESTABLISHING DISTRICT

2

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 October 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 document, with minor changes as may be approved by the City
Attorney.
Section 6.
Further Action. The Mayor, 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.
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

601303.20074\ORDINANCE ESTABLISHING DISTRICT

3

PASSED by the Governing Body of the City of Ottawa, Kansas, and SIGNED by the Mayor, on
October 7, 2026.

(SEAL)

Mayor

ATTEST:

City Clerk
[BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]

601303.20074\ORDINANCE ESTABLISHING DISTRICT

(Certificate to Ordinance)

DEVELOPMENT AGREEMENT FOR ECONOMIC INCENTIVE
SOUTH HAVEN ESTATES
REINVESTMENT HOUSING INCENTIVE DISTRICT
THIS DEVELOPMENT AGREEMENT (“Agreement”) is entered into effective as of
October 7, 2026 (the “Effective Date”), by and between the CITY OF OTTAWA, Kansas, a
municipal corporation of the State of Kansas (“City”), and PREMIER HOME
DEVELOPMENT, 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 the South Haven Estates Project, as
defined herein, which includes approximately 23 single-family homes located in southwest
Ottawa, with planned square footages ranging from 1,500 square feet to 2,500 square feet (as more
fully described herein).
C.
City has determined that the construction of the South Haven 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 South Haven Estates Project.
F.
Pursuant to the RHID Act, the Governing Body of the City (the “Governing Body”)
adopted Resolution No. 1991-25, 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 October 3, 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.

601303.20074\DEVELOPMENT AGREEMENT

1

H.
The Governing Body of the City adopted Resolution No. 2020-26 on August 19,
2026, which called for a public hearing on October 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 Incentive District over an area comprised of the Property (as defined
below, the “RHID”).
I.
The Governing Body of the City opened the public hearing on October 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 South Haven 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 Premier Home Development, LLC, a Kansas limited liability
company, and its lawful successors and assigns.

601303.20074\DEVELOPMENT AGREEMENT

2

“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
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 $1,345,575.
“RHID” means the South Haven 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.
“RHID Eligible Expenses” means actual expenses related to the RHID Project, including
underlying costs of construction, including subcontractor profit included in construction contracts,
and 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 South Haven Estates Project. RHID Eligible
Expenses shall expressly exclude soft costs such as, without limitation, developer fees, , contractor
overhead, general conditions or markups that are not part of a third-party contract for installed
improvements, legal expenses unrelated to the establishment and administration of the RHID and
acquisition of land in the RHID, 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 South Haven 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.

601303.20074\DEVELOPMENT AGREEMENT

3

“RHID Project” means the portion of the South Haven Estates Project financed with
RHID Increment.
“RHID Term” shall mean the period commencing on the Effective Date and expiring 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 15 years after the date of the RHID Ordinance.
“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.
“South Haven Estates Project” means the construction of 23 single-family homes for
sale, including land acquisition, site preparation, utilities extensions permits, bank and legal fees,
appraisal fees, design fees, eligible construction expenses, loan interest, and vertical construction
of homes, with three home models, which vary by size and price as described in the following
table:
Model
A
B
C

# Units
6
6
11

Bedrooms Baths
3
2
3
2
5
3

Basement
N
N
Y

Garage
Y / 2 stalls
Y / 2 stalls
Y / 2 stalls

Square
Feet
1,504
1,635
2,479

Sale
Price
$350,000
$375,000
$500,000

“State” means the State of Kansas.
Section 103. 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.

601303.20074\DEVELOPMENT AGREEMENT

4

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 South Haven 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
South Haven Estates Project to be completed pursuant to this Agreement, and the Developer shall
bear the costs of the development of the South Haven 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 South Haven Estates Project described herein shall only be materially amended or
modified (i) with the prior written consent of the City, 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 South Haven 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.
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
601303.20074\DEVELOPMENT AGREEMENT

5

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.
(b)
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:
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 may be amended or terminated if City takes the appropriate
actions required by law to 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, including Section 601 of this
Agreement, 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
601303.20074\DEVELOPMENT AGREEMENT

6

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 Expenditures 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
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 45 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 Expenditures for an RHID Eligible Expense, along with
reasonable documents of such expenditure, and (iv) the expense identified in the Certification of
Expenditures 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

601303.20074\DEVELOPMENT AGREEMENT

7

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
DEVELOPMENT OF THE PROJECT; TIMING AND APPROVALS
Section 501. Development of the Project.
The Developer agrees to pursue construction of the South Haven Estates Project in
accordance with the requirements of this Agreement and all City zoning, subdivision regulation,
and building requirements applicable thereto. Notwithstanding any other provision of this
Agreement to the contrary, but subject to Permitted Delays, if construction of ten homes in the
South Haven Estates Project, including the portions of RHID Project related to such homes, is not
substantially completed by December 31, 2029, as evidenced by certificates of occupancy for such
homes, or if construction of all of the South Haven Estates Project, including all of the RHID
Project, is not substantially completed by December 31, 2030, as evidenced by a certificate of
occupancy for all homes included in the South Haven 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 802(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 South Haven 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 and City Community Development Department
601303.20074\DEVELOPMENT AGREEMENT

8

for review and approval of such submissions so as to not unduly hinder or delay the South Haven
Estates Project; provided, however, that the City, at the discretion of the City’s zoning
administrator, 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 South Haven 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 co-insurance. 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 South Haven Estates Project shall be completed
in conformity with, all applicable federal, state, and local laws and regulations.

Term:

Section 505. Nondiscrimination.
The Developer, for itself and its successors and assigns, agrees that throughout the RHID

(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;

601303.20074\DEVELOPMENT AGREEMENT

9

(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
(e)
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.
(f)
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 South Haven Estates
Project and to furnish any certification required by any federal, state or local laws, ordinances and
regulations applicable to the South Haven 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 South Haven
Estates Project, or any portion thereof, to third parties) pay taxes and assessments for the South
Haven 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 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.
Notwithstanding anything to the contrary herein, the City shall not distribute any portion of the
RHID Increment comprised of taxes paid under protest until the appeal of such taxes has
concluded.
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.
601303.20074\DEVELOPMENT AGREEMENT

10

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 to the City of any change in the
owners/members owning/comprising more than 25% 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 South Haven Estates Project as
herein stated, except for Permitted Delays, shall constitute a breach of this Agreement and the

601303.20074\DEVELOPMENT AGREEMENT

11

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
South Haven 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 South Haven 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 to
make any disbursements until such Event of Default is cured by Developer;
(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

601303.20074\DEVELOPMENT AGREEMENT

12

construction of the South Haven 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)
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,
service of process on the Developer shall be made to:
Premier Home Development, LLC
108 N. Main Street
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. 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.

601303.20074\DEVELOPMENT AGREEMENT

13

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, 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 South Haven Estates Project, without charges or fees, at normal
construction hours during the period of construction for purposes strictly related to this Agreement,

601303.20074\DEVELOPMENT AGREEMENT

14

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
South Haven Estates Project in the performance of its governmental role.
Section 905. No Other Agreement.
Relative to the subject matter of this Agreement, and 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, 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 provision, 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:
To the City:
Ms. Melissa Scherman, City Clerk
City of Ottawa
Ottawa City Hall
601303.20074\DEVELOPMENT AGREEMENT

15

PO Box 60
Ottawa, KS 66067
With copy to:
Mr. Kevin M. Cowan, City Special Counsel
Gilmore & Bell, P.C.
100 N. Main, Suite 800
Wichita, KS 67203
To the Developer:
Premier Home Development, LLC
108 N. Main Street
Ottawa, KS 66067
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 803(e) and any other terms and 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.
601303.20074\DEVELOPMENT AGREEMENT

16

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. §§10-1101 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 K.S.A.
74-50,226 et seq.
[Remainder of Page Intentionally Left Blank]

601303.20074\DEVELOPMENT AGREEMENT

17

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 October, 2026, by
Zach Clayton, Mayor of the City of Ottawa, Kansas.
Notary Public
Typed Name of Notary Public

(SEAL)
My Appointment Expires:

601303.20074\DEVELOPMENT AGREEMENT

(Development Agreement Signature Page)

PREMIER HOME DEVELOPMENT,
LLC

By:
Name:
Title:
“DEVELOPER”
ACKNOWLEDGMENT
STATE OF KANSAS
COUNTY OF FRANKLIN

)
) SS:
)

The foregoing instrument was acknowledged before me this ___ day of October, 2026, by
_____________, _____________ of Premier Home Development, LLC, a Kansas limited liability
company.
Notary Public
Typed Name of Notary Public

(SEAL)
My Appointment Expires:

601303.20074\DEVELOPMENT AGREEMENT

(Development Agreement Signature Page)

EXHIBIT A
DEVELOPMENT PLAN
[see following pages]

601303.20074\DEVELOPMENT AGREEMENT

A-1

EXHIBIT B
RHID LEGAL DESCRIPTION
SOUTH HAVEN ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT
Lots 1-23, and Tract A, South Haven Estates, a subdivision in the City of Ottawa, Franklin County, Kansas.

601303.20074\DEVELOPMENT AGREEMENT

EXHIBIT C
RHID MAP
SOUTH HAVEN ESTATES REINVESTMENT HOUSING INCENTIVE DISTRICT

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

601303.20074\DEVELOPMENT AGREEMENT

C-1

EXHIBIT D
CERTIFICATION OF EXPENDITURES

Date: _______________
Certificate No. _______
Governing Body of the
City of Ottawa, Kansas
In accordance with the Development Agreement for the South Haven Estates
Reinvestment Housing Incentive District effective as of October ___, 2026 (the “Agreement”),
between the City of Ottawa, Kansas (the “City”), and Premier Home Development, 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.
PREMIER HOME DEVELOPMENT,
LLC
By:
Name:
Title:

601303.20074\DEVELOPMENT AGREEMENT

D-1-

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

601303.20074\DEVELOPMENT AGREEMENT

D-2-

EXHIBIT 1 TO
CERTIFICATION OF EXPENDITURES
(SOUTH HAVEN 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

601303.20074\DEVELOPMENT AGREEMENT

D-3-

Agenda Item: 11.C

TO:
SUBJECT:
INITIATED BY:
AGENDA:

City of Ottawa
City Commission Meeting
October 7, 2026
City Commission
Sole-Source Award - 2026 Manhole Lining Project (OBIC Armor 1000)
Utilities Department
New Business

Recommendation: Approve Midwest Infrastructure Coating LLC as the sole-source provider for the
2026 Manhole Lining Project using the OBIC Lining System in the amount of $100,100.00, subject to
written confirmation that the quoted pricing remains valid, and authorize the City Manager to execute the
agreement, purchase order, and all necessary documents related to project completion.
Background: The Wastewater Collection Division uses trenchless rehabilitation to extend the useful life
of existing sanitary sewer infrastructure and address deterioration, corrosion, and sources of inflow and
infiltration without the disruption and cost associated with full excavation. The 2026 rehabilitation
program includes both sanitary sewer pipe lining and manhole lining funded through the same Manhole
and Pipe Lining account. For manhole rehabilitation, staff recommends use of the OBIC Armor 1000
lining system. OBIC Armor 1000 is a spray-applied flexible polymer coating designed to create a
seamless, waterproof protective membrane over properly prepared surfaces. The material cures rapidly
and is intended for wastewater environments where resistance to corrosion, chemicals, abrasion, impact,
and movement of the host structure is important. Typical applications include manholes, wet wells, pump
stations, secondary containment areas, tanks, and other municipal or industrial structures.
Analysis: OBIC LLC provided a certified-installer letter dated March 26, 2026, identifying Midwest
Infrastructure Coatings (MIC), Jefferson City, Missouri, as the exclusive licensed applicator of OBIC
Lining System materials for Kansas as well as Missouri, Arkansas, Northeast Texas, and Oklahoma.
OBIC states that its certified installers receive extensive training and are recertified annually for
application, quality, and safety standards. Based on the manufacturer certification, Midwest is the sole
authorized provider serving Kansas for installation of the specified OBIC lining system. The sole-source
justification is specific to the OBIC product. Other manhole rehabilitation products may be available in
the marketplace; however, competitive quotes from multiple authorized OBIC installers are not available
for Kansas. Midwest Infrastructure Coatings submitted a quote dated June 2, 2026, for the City's manhole
rehabilitation work. The quoted price is $100,100.00, consisting of $4,000.00 for mobilization and
$96,100.00 for installation of the OBIC Armor Multi-Layer Lining System. The quoted installation
pricing includes surface preparation, average leak-stoppage materials for minor concrete patching,
installation, and supervision.
Project Schedule: Following Commission approval and execution of the required documents, staff will
coordinate the final work schedule and selected manhole locations with Midwest Infrastructure Coating
LLC. The contractor requires application-truck access within 200 feet of the structures. The City will
coordinate any required access assistance, traffic control, bypass pumping, water source, permits, and
related site preparation identified in the proposal. Work sequencing will be coordinated around
wastewater flows, access, surface conditions, weather, and operational needs.
Financial Considerations: The adopted 2026 budget includes $600,000.00 in the Manhole and Pipe
Lining (036-5-3602-760.00) line in the Wastewater operational budget for the combined sanitary sewer
pipe lining and manhole lining program. Within that program, $500,000.00 was budgeted for sewer

lining. The 2026 Sanitary Sewer CIPP Lining Project is already slated for $477,744.19, leaving
$122,255.81 available in the combined account. Midwest Infrastructure Coatings' quoted amount for the
manhole lining project is $100,100.00, which would leave $22,155.81 remaining in the account after both
projects.
2026 Manhole and Pipe Lining Budget Summary
Budget / Commitment
2026 Manhole and Pipe Lining combined budget
Sanitary Sewer CIPP lining - Agenda Item 6.B
Available after sewer lining
Midwest Infrastructure Coatings manhole lining quote
Remaining after both projects

Amount
$600,000.00
($477,744.19)
$122,255.81
($100,100.00)
$22,155.81

Legal Considerations: The manufacturer's certified-installer letter should be retained with the
procurement record as documentation of the product-specific sole-source basis. Midwest Infrastructure
Coating LLC has provided certificates of insurance identifying the City of Ottawa as certificate holder.
The June 2, 2026 quote lists an expiration date of September 24, 2026; therefore, staff will obtain written
confirmation that the $100,100.00 quoted pricing remains valid before execution. Prior to issuance of a
notice to proceed or purchase order, staff will also confirm final scope, insurance, and contract
documentation and verify compliance with applicable City purchasing requirements.
Recommendation: Approve Midwest Infrastructure Coating LLC as the sole-source provider for the
2026 Manhole Lining Project using the OBIC Lining System in the amount of $100,100.00, subject to
written confirmation that the quoted pricing remains valid, and authorize the City Manager to execute the
agreement, purchase order, and all necessary documents related to project completion.