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[00:00:03]

>> PLEDGE OF ALLEGIANCE, PLEASE.

[CALL TO ORDER]

>>

>> BEFORE WE START OUR AGENDA THIS EVENING,

[Additional Item]

I WOULD LIKE TO INVITE OUR CITY CLERK, JENNIFER MARTIN, TO THE STAGE FOR A VERY SPECIAL RECOGNITION.

I HAD TO SNEAK IT IN ON HER CAUSE SHE HOLDS THE KEYS TO THIS AGENDA.

[LAUGHTER] JEN, GO AHEAD.

>> SURPRISE.

>> SURPRISE. YES. JEN RECENTLY COMPLETED ALL THE REQUIREMENTS NEEDED FOR THE DESIGNATION OF MASTER MUNICIPAL CLERK, WHICH IS AWARDED BY THE INTERNATIONAL INSTITUTE OF MUNICIPAL CLERKS, THE PROFESSIONAL ASSOCIATION WHICH SHE IS AN ACTIVE MEMBER.

IIMC GRANTS THIS DESIGNATION ONLY TO MUNICIPAL CLERKS WHO COMPLETE DEMANDING EDUCATION REQUIREMENTS, HAVE A RECORD OF SIGNIFICANT CONTRIBUTIONS TO THEIR LOCAL GOVERNMENT, COMMUNITY, AND STATE.

HERE TODAY, WITH US TO FORMALLY BESTOW THIS PROFESSIONAL DESIGNATION UPON JEN IS LANA MCPHERSON, RETIRED CITY CLERK FOR OUR NEIGHBORS IN DE SOTO AND A RECENT PAST PRESIDENT OF IIMC.

LANA, IF YOU WOULD PLEASE DO THE HONORS.

>> THANK YOU, MAYOR.

>> [INAUDIBLE]

>> I HAVE THE TITLE IN KANSAS OF BEING CLERK MOM BECAUSE I WAS THE OLDEST ONE IN MY CLASS MANY YEARS AGO.

BUT IT HAS BEEN A TRUE JOY TO WATCH THIS GIRL REALLY GO TO TOWN AND EARN HER CMC AND HER MASTER MUNICIPAL CLERK.

AND I'M SURE THAT ALL OF YOU ARE AWARE OF HOW HARD SHE'S WORKED, HOW MANY HOURS SHE'S PUT IN JUST TO GET THAT IIMC REQUIRES LIKE A WHOLE LOT OF 60 HOURS.

NOT ONLY OF MUNICIPAL WORK, BUT ALSO IN CHURCH AND COMMUNITY, WHICH I KNOW SHE'S VERY INVOLVED IN ALL OF THOSE THINGS.

I WANTED TO TELL YOU THAT IN IIMC, WHICH IS INTERNATIONAL, WE HAVE NINE COUNTRIES REPRESENTED IN OUR INTERNATIONAL ORGANIZATION.

OVER 15,000 MUNICIPAL CLERKS WORLDWIDE, AND OF THOSE MMCS, ONLY 1,446 INTERNATIONALLY, 1,417 IN THE UNITED STATES AND ONLY 31 IN THE STATE OF KANSAS, AND YOU HAVE ONE OF THEM.

YES. IT'S EXCITING, ISN'T IT? AND THOSE NUMBERS ARE TODAY FROM IIMC.

I CHECKED THIS MORNING JUST TO MAKE SURE I HAD IT RIGHT, SO I AM JUST VERY PROUD OF JEN.

BUT I'M ALSO HERE TO TELL YOU HOW MUCH IT MEANS TO A CITY CLERK TO HAVE A MAYOR GOVERNING BODY AND STAFF THAT SUPPORT CONTINUING EDUCATION.

BECAUSE WE ALL KNOW THAT ANY CITY'S BEST ASSETS ARE ITS EMPLOYEES.

THAT IS YOUR HUMAN CAPITAL, AND WHEN YOU HAVE TO TRAIN A NEW PERSON, IT COSTS A WHOLE LOT OF MONEY.

SO WE'RE VERY HAPPY THAT YOU HAVE SUPPORTED JEN AND IT'S A GREAT PLEASURE FOR ME AS HER CLERK MOM AND AS A PAST PRESIDENT OF IIMC TO PRESENT HER WITH HER MASTER MUNICIPAL CLERK.

[APPLAUSE]

>> I'M GOING TO JUST GET THE MAYOR IN THERE AND PUT THERE.

>> THANK YOU SO MUCH.

>> SHE'S ONE IN A MILLION TO US.

>> YES.

>> THANK YOU FOR BEING HERE.

>> MY PLEASURE.

>> TAKE CARE.

>> THANK YOU.

>> SINCE I AM NOW THE RETIRED CLERK, I AM GOING TO VAMOOSE AND LET YOU HAVE YOUR COUNCIL MEETING. THANK YOU ALL.

IT'S BEEN A GREAT PLEASURE, AND I DID WANT TO SAY ONE THING, WHICH I HAD TOLD MIKE EARLIER, LENEXA HAS ALWAYS BEEN ON THE CUTTING EDGE, AND HERE I AM OVER HERE IN A LITTLE SMALL TOWN DE SOTO.

BUT YOU HAVE A HISTORY IN THIS COMMUNITY OF REALLY REACHING OUT TO THE SURROUNDING CITIES AND ENCOURAGING NOT ONLY THE CITY CLERKS LIKE ME, BUT SOME OF THE OTHER EMPLOYEES AS WELL.

I KNOW OUR STREET DEPARTMENT IN DE SOTO WORKED VERY CLOSELY WITH SOME OF THE GUYS IN YOUR STREET DEPARTMENT, PUBLIC WORKS DEPARTMENT.

REALLY APPRECIATE THAT.

BUT WHEN I STARTED IN 1998,

[00:05:01]

SANDY HAUL WAS YOUR CITY CLERK, AND THEN MARY SUE FRYE AND THEN DAVID BRYANT ARE ALL THE PEOPLE THAT I HAVE BEEN IN CONTACT WITH HERE, AND THEN OF COURSE, JEN.

THERE'S JUST A LONG HISTORY AND I HOPE YOU WILL CONTINUE TO SUPPORT JEN BECAUSE, YOU KNOW WHAT, KANSAS ONLY HAD TWO IIMC PRESIDENTS AND I THINK IT'S TIME FOR SOMEBODY ELSE TO STEP UP.

SO IT'S GOING TO TAKE A LOT OF WORK ON HER PART AND IT'S GOING TO TAKE A LOT OF SUPPORT AND ENCOURAGEMENT FROM ALL OF YOU AND FROM STAFF.

BUT THANK YOU AGAIN FOR THIS WONDERFUL OPPORTUNITY AND PLEASURE.

>> THANK YOU, LANA. [APPLAUSE] WE DON'T SAY VAMOOSE ENOUGH IN THIS ROOM.

>> [LAUGHTER] YES, MAYBE VAMOOSE.

WITH THAT, JENNIFER, WOULD YOU PLEASE CALL THE ROLL?

>> THANK YOU, MAYOR. COUNCIL MEMBER CARLIN.

>> PRESENT.

>> COUNCIL MEMBER EITERICH IS ABSENT.

COUNCIL MEMBER CHARLTON.

>> HERE.

>> COUNCIL MEMBER NICK.

>> HERE.

> COUNCIL MEMBER ARROYO.

>> HERE.

>> COUNCIL MEMBER WILLIAMSON.

>> PRESENT.

>> COUNCIL MEMBER DENNY.

>> PRESENT.

>> COUNCIL MEMBER HERRON.

>> PRESENT.

>> MAYOR SAYERS IS PRESENT AND PRESIDING.

>> THANK YOU. UP FIRST IS THE APPROVAL OF THE JANUARY 16TH, 2024 MEETING MINUTES.

[APPROVE MINUTES]

MAY I HAVE A MOTION, PLEASE?

>> I MOTION.

>> SECOND.

>> MOTION BY CRAIG, SECONDED BY MELANIE. ALL IN FAVOR.

>> AYE.

>> MOTION PASSES.

TONIGHT WE HAVE ONE PROCLAMATION THAT I'VE BEEN ASKED NOT TO READ,

[PROCLAMATIONS ]

BUT WE'LL EMBARRASS OUR ENGINEERS ANYWAY BY SAYING IT IS NATIONAL ENGINEERS WEEK, FEBRUARY 18TH THROUGH 24TH.

WE APPRECIATE EVERYTHING THAT YOU DO IN THE DESIGN AND CONSTRUCTION OF OUR INFRASTRUCTURE AS IT'S ONE OF OUR MOST IMPORTANT INVESTMENTS.

SO THANK YOU, TIM AND ALL OF OUR ENGINEERS.

[APPLAUSE] TONIGHT WE HAVE A COUPLE OF PRESENTATIONS FROM

[PRESENTATIONS]

THE LENEXA ECONOMIC DEVELOPMENT COUNCIL AND THE CONVENTION AND VISITORS BUREAU.

ASHLEY, CAN WE HAVE YOU UP FIRST OR JULIE, DO YOU WANT TO GO FIRST?

>> I TRADITIONALLY GO FIRST.

>> OKAY.

>> I'LL JUST GO. WELL, HELLO, MAYOR AND COUNCIL MEMBERS.

I'M JULIE SEINER HERE WITH MY FIRST REPORT FOR 2024 WITH THE LENEXA CONVENTION AND VISITORS BUREAU.

I DID WANT TO SAY REAL QUICK THAT THE REPORT I SENT FOR YOUR PACKETS HAD A LOT MORE DETAIL ABOUT SOME THINGS THAT I NORMALLY INCLUDE.

BUT FOR THE BENEFIT OF OUR THREE NEW COUNCIL MEMBERS, I THOUGHT I WOULD INCLUDE SOME BACKGROUND ON SOME OF THE THINGS THAT WE DO.

I WON'T NECESSARILY COVER THOSE TONIGHT.

BUT I'D BE HAPPY TO ANSWER ANY QUESTIONS.

I'M GOING TO START OFF WITH HOTELS.

I PROVIDED A FEW YEARS WORTH OF GUESS TAX FOR COMPARISON.

THESE ARE THE NUMBERS FROM THE KANSAS DEPARTMENT OF REVENUE.

YOU CAN SEE NUMBERS HAVE CONTINUED TO CLIMB AND OF COURSE I'M STILL INCLUDING 2019, AND 2021 JUST SO WE CAN SEE THE CHANGES THAT WERE MADE THERE DURING THE PANDEMIC AND HOW WE'VE COME OUT OF THAT, AND I THINK I'M GOING TO KNOCK THOSE OFF PRETTY SOON SO WE CAN JUST MOVE AHEAD AND NOT KEEP THINKING ABOUT THAT.

BUT NUMBERS WERE GOOD.

HOTEL BUSINESS OVER THE LAST COUPLE OF YEARS HAS REALLY BOUNCED BACK.

GROUP TRAVEL IS BACK ALMOST TO 2019 LEVELS, AND BUSINESS TRAVEL WAS PRETTY GREAT LAST YEAR FOR A FEW OF OUR PROPERTIES, AND THAT WAS THE LAST CATEGORY TO COME BACK AFTER COVID.

SO JUST IN GENERAL, WE HAVE 13 HOTELS, SOON TO BE 15 WHEN WE GET OUR NEW HOTELS ACROSS THE STREET THERE, AND THEY RANGE FROM BUDGET TO UPSCALE, SO THEY DON'T ALL COMPETE AGAINST EACH OTHER.

IT'S CALLED A COMPETITIVE SET, AND LENEXA HOTELS ARE NOT A COMPETITIVE SET.

THEY CATER TO VERY DIFFERENT DEMOGRAPHICS, SO IT'S HARD TO COMPARE THEIR BUSINESS.

THEY JUST HAVE DIFFERENT TYPES OF BUSINESS.

SO IT'S A BIT APPLES TO ORANGES.

BUT USUALLY I GET MOST OF MY INFORMATION FROM OUR NEWER HOTELS AND THE ONES THAT HAVE MEETING SPACE.

AS EVERYONE KNOWS, WORLD CUP IS COMING, CAN'T ESCAPE THAT, AND WE HAD OUR KANSAS CITY DATES ANNOUNCED RECENTLY, AND SO I THOUGHT I'D JUST SHARE A LITTLE INFORMATION HOTEL WISE BECAUSE THAT IS MY FOCUS.

IN THE KC METRO AREA, FIFA HAS CONTRACTED WITH 35 HOTELS.

MOST OF THESE PROPERTIES RANGE FROM DOWNTOWN TO THE PLAZA, AND THERE'S A FEW LARGER PROPERTIES IN THE SUBURBS BUT I DON'T KNOW WHAT THEY ARE AND I DON'T KNOW WHETHER THEY TELL US.

RIGHT NOW THEY HAVE 5,500 ROOMS CONFIRMED ON THOSE, THE PEAK NIGHTS, THE BIGGEST NIGHTS, THE NIGHTS OF MATCHES, AND I THOUGHT IT WAS INTERESTING THESE CONTRACTS GET SIGNED WITHOUT ROOM RATES, AND NOW THAT THERE'S A SCHEDULE, THEY'LL START NEGOTIATING THOSE.

I THOUGHT THAT WAS PRETTY INTERESTING.

THEN OF COURSE, ALL OF THE HOTELS NOT IN THE FIFA BLOCK, WHICH IS PRETTY MUCH EVERYBODY, IT'S EVERYBODY ELSE CAN START GETTING LEADS AND START BOOKING.

[00:10:03]

BUT IT'S AN INTERESTING, CONFUSING SITUATION BECAUSE MOST HOTELS DON'T TAKE BOOKINGS FARTHER THAN 6-12 MONTHS OUT AND SO YOU COULDN'T BOOK ANYWAYS.

BUT I THINK SOME HOTELS WILL CLOSE BOOKINGS SO THAT IT'S NOT GOING TO BE A FREE FOR ALL BECAUSE THEY'LL BE LOOKING FOR MEDIA OR SPONSORS TO COME IN AND BOOK A LARGE NUMBER OF ROOMS AND CONFIRM THOSE AND PREPAY FOR THOSE.

AS MANY PEOPLE AS WE'RE EXPECTING TO COME TO THE AREA, WE JUST DON'T KNOW EXACTLY WHAT'S GOING TO HAPPEN BUT THEY'RE COMING, AND I THINK ESPECIALLY CITY CENTER WOULD BE A REALLY FUN PLACE, AND I WOULD IMAGINE ALL OF OUR HOTELS HERE FOR SURE WILL BOOK UP, AND HOPEFULLY IT'LL BE A FUN PARTY.

BUT MOVING ON TO PARTNERSHIPS, I INCLUDED A LIST OF ALL OF THEM IN MY REPORT.

THERE'S QUITE A FEW. WE'VE GOT PARTNERSHIPS IN KANSAS FOR PRETTY MUCH EVERY CATEGORY OF TRAVEL THAT'S POSSIBLE.

I JUST WANTED TO TOUCH ON THE NEWEST ONE THAT JUST FORMED LAST YEAR IS CALLED 435 SPORTS.

AS YOU KNOW, YOUTH SPORTS IS A HUGE INDUSTRY AND WE'RE JUST GOING TO START WORKING TOGETHER.

SO BETWEEN ALL OF OUR DIFFERENT SPORTS FACILITIES AND ALL OF OUR HOTEL ROOMS, IF WE'RE WORKING TOGETHER, WE CAN TRACK SOME EVENTS AND RETAIN SOME THAT MIGHT BE LOOKING AT GOING ELSEWHERE.

SO WORKING TOGETHER ON THAT, LIKE I SAID, THAT'S FAIRLY NEW.

THEN I ALSO WANTED TO MENTION THAT LAST YEAR I JOINED THE BOARD OF THE LENEXA HISTORICAL SOCIETY.

SO THAT'S BEEN SOMETHING NEW, LEARNING A LOT THERE.

THERE'S A LOT OF GREAT ENERGY ON THAT BOARD TALKING ABOUT SOME INTERESTING IDEAS, SO I'M LOOKING FORWARD TO CONTINUING ON WITH THAT.

THEN AS FAR AS MARKETING, MUCH OF THAT HAPPENS VIA SOCIAL MEDIA OR THROUGH OUR PARTNERS.

WE DON'T DO A LOT OF PRINT ADS AND, WE DON'T ADVERTISE NATIONALLY OR IN A BIG SPLASH LIKE THAT, SO WE ARE DOING A LITTLE BIT WITH THE PARTNERS, A LITTLE BIT OF PRINT, MOSTLY ONLINE.

WE ARE ON INSTAGRAM AND THAT'S THE BEST PLATFORM FOR US BECAUSE IT'S SO VISUAL AND THAT'S REALLY THE BEST WAY TO MARKET SOMETHING LIKE A CVB.

WE HAVE 761 FOLLOWERS UP FROM 681 LAST YEAR, AND THEN WE'VE ALSO, THROUGH ONE OF OUR PARTNERSHIPS, WHICH IS CASEY DESTINATIONS, WE'VE GOT 421 FOLLOWERS, AND WE'VE BEEN WORKING WITH SOME LOCAL INFLUENCERS WHO HAVE PARTNERED WITH US, AND THEY DO A GREAT JOB OF EXPANDING THAT REACH.

SO WE JUST WOULD LIKE TO KEEP GROWING THERE.

LAST YEAR, I RECEIVED A $5,000 KANSAS TOURISM MARKETING GRANT THAT SUPPORTED OUR NEW DIGITAL LENEXA VISITORS GUIDE.

WE'RE NOT GOING TO DO A PRINTED GUIDE ANYMORE, IT'S JUST NOT THE DEMAND FOR THAT, AND THIS WAY WE'RE ABLE TO MAKE CHANGES, WHICH WE KNOW WE ALREADY HAVE TO MAKE CHANGES ON THAT.

BUT THAT'S GIVEN ME THE SPARK TO THINK A LITTLE BIT MORE ABOUT WHAT OTHER GRANTS I COULD GET FOR SOME PROJECTS WE'RE THINKING OF.

I KICK MYSELF, I SHOULD HAVE ASKED FOR MORE THAN 5,000 SO I'M GOING TO PUSH FORWARD AND LOOK INTO SOME MORE.

THEN FINALLY, I WILL BE MEETING NEXT WEEK AT THE MINT, WHICH IS THE NEW EVENT SPACE ON 95TH STREET, AND JUST GOING OVER THERE TO CHAT WITH THEM.

THEY'RE MEMBERS OF THE CHAMBER AND THEY WANT TO GET INVOLVED, AND THAT'LL BE A NICE NEW EVENT SPACE FOR US TO PROMOTE.

OTHER THAN THAT, THAT IS ALL I HAVE FOR YOU, BUT I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

>> ANYTHING FOR JULIE? YES, DON.

>> CAN YOU MAKE IT EASY ON ME? [LAUGHTER]

>> [INAUDIBLE] [LAUGHTER]

>> MAYBE MIKE CAN ANSWER THIS, BUT WHAT WAS THE OUTCOME OF THE REQUEST OF THE STATE OF KANSAS TO HELP WITH THE WORLD CUP?

>> I DON'T THINK THAT THERE'S AN OUTCOME YET.

I THINK THEY CAME IN ASKING FOR MORE THAN GOVERNOR KELLY WAS PLANNING ON MAYBE GIVING.

BUT I DON'T THINK THERE'S ANY FINAL WORD ON THAT.

>> CORRECT.

>> YEAH.

>> YEAH.

>> THERE'S NOT ANY FINAL WORD ON THAT YET.

JUST A PRESENTATION WAS MADE TO SENATE AND HOUSE COMMITTEE ON THE ASK, BUT THERE HASN'T BEEN A FINAL DETERMINATION ABOUT WHAT KANSAS WILL APPROPRIATE FOR THE WORLD CUP.

>> WELL, I DID WANT TO SAY IN CLOSING THAT I SO APPRECIATE YOUR SUPPORT, THE SUPPORT OF THE GOVERNING BODY AND OF THE STAFF.

I KNOW OF OTHER TOURISM RELATED ORGANIZATIONS IN KANSAS THAT DON'T HAVE THE SUPPORT AND HAVE TO FIGHT THEIR WAY THROUGH THINGS.

SO I'M VERY APPRECIATIVE OF ALL YOU DO TO SUPPORT ME AND TO MAKE A GREAT CITY. SO THANK YOU.

>> THANK YOU, JULIE. ASHLEY.

[00:15:01]

>> WELL, GOOD EVENING, MAYOR AND GOVERNING BODY.

I'M ASHLEY SHERARD, APPEARING ON BEHALF OF THE LENEXA CHAMBER OF COMMERCE AND LENEXA ECONOMIC DEVELOPMENT COUNCIL.

I'M ALSO PLEASED TO BE HERE TONIGHT TO PRESENT THE FIRST OF OUR ECONOMIC DEVELOPMENT REPORTS FOR THE YEAR AS WE PARTNER ON OUR MUTUAL GOAL OF BENEFITING OUR LENEXA BUSINESSES AND RESIDENTS BY CONTINUING TO ATTRACT INVESTMENT JOBS AND NEW AMENITIES TO OUR COMMUNITY.

MY REPORT TONIGHT IS GOING TO FOCUS ON A REVIEW OF 2023 AND A LOOK AHEAD TO 2024.

IN THE INTERESTS OF TIME, I'LL TRY TO FOCUS ON HIGHLIGHTS OF THE REPORT THAT'S IN YOUR PACKET.

TO BEGIN, I DO THINK IT'S IMPORTANT TO JUST LOOK BACK AT THE CONTEXT AROUND DEVELOPMENT AND INVESTMENT IN 2023 BECAUSE IT WAS REALLY A YEAR OF MIXED ECONOMIC SIGNALS THAT I DO THINK THAT WE SAW PLAY OUT IN DEVELOPMENT.

MANY ECONOMIC GROWTH INDICATORS LIKE THE NATIONAL GDP AND MONTHLY JOB CREATION REPORTS WERE MUCH MORE POSITIVE THAN WAS PROJECTED.

DEFYING THE EXPECTATIONS OF ECONOMISTS, AS YOU KNOW, THAT WERE PREDICTING A RECESSION IN 2023.

SO THAT WAS GOOD NEWS, BUT ALL THAT GOOD NEWS SEEMED TO BE SHADOWED THROUGHOUT THE YEAR BY CONDITIONS THAT MADE MANY OF US WONDER WHETHER THOSE POSITIVE INDICATORS COULD REALLY BE TRUSTED OR BELIEVED.

YOU MIGHT REMEMBER, INFLATION SPIKE TO 9% IN 2022, THAT REMAINED ELEVATED IN 2023.

INCREASING COSTS, KEEPING THAT RECESSION FEAR GOING, AND IMPORTANTLY, RAISING INTEREST RATES.

IN FACT, IN 2020, AND 2023, IT'S HARD TO BELIEVE.

BUT THE FEDERAL RESERVE ACTUALLY RAISED INTEREST RATES 11 TIMES, TRYING TO COOL OFF INFLATION.

AT THE SAME TIME, CREDIT CONDITIONS WERE REALLY TIGHTENING.

THAT WAS PARTLY DUE TO TIGHTER FEDERAL REGULATIONS IN THE WAKE OF THE HIGH PROFILE COLLAPSES OF THE REGIONAL BANKS, STARTING WITH SILICON VALLEY BANK.

THAT HAPPENED OVER THE COURSE OF JUST A FEW WEEKS IN 2023, ALTHOUGH TO ME IT SEEMS MUCH LONGER AGO THAT THAT HAPPENED.

BUT BANK REGULATORS STARTING TO TIGHTEN REGULATIONS AROUND CREDIT, AND THEN ALSO PARTLY DUE TO FINANCIAL INSTITUTIONS THEMSELVES WHO GOT WORRIED ABOUT GROWING DELINQUENCIES ON THEIR BOOKS AND GOT MORE CONSERVATIVE WITH THEIR INTERNAL CREDIT CRITERIA.

THIS CREDIT CRUNCH REALLY CAUSED BUSINESSES TO DELAY HIRING, DELAY GROWTH, DELAY PLAN PROJECTS, AS THEY WORRIED JUST ABOUT MANAGING THEIR OWN COSTS.

PRICES FOR OUR CONSTRUCTION MATERIALS, THINGS LIKE STEEL, WOOD, AND CONCRETE, THAT SKYROCKETED AS MUCH AS 20% DURING THE PANDEMIC, HAPPILY STABILIZED IN 2023.

BUT THEY REMAIN ELEVATED COMPARED TO THOSE PRE PANDEMIC COSTS, KEEPING NEW CONSTRUCTION EXTREMELY EXPENSIVE, AND THE SCARCITY OF CONSTRUCTION LABOR JUST ADDS ADDITIONAL UPWARD COST PRESSURES FOR CONSTRUCTION.

THE SUPPLY CHAIN IMPROVED, BUT ISSUES ALSO PERSISTED.

MATERIAL SCARCITY, LINGERING BACKLOGS, AND WE ALL KNOW ABOUT INCREASING FUEL AND FREIGHT PRICES, EXTREME WEATHER EVENTS, GLOBAL TENSIONS ESPECIALLY WITH CHINA AND IN THE MIDDLE EAST, AND PORT CONGESTION, ALL OF IT CONTRIBUTED TO DISRUPTIONS AND LONG LEAD TIMES, AND THE LABOR MARKET ALSO REMAINED IN A STATE OF FLUX IN 2023, WITH CONSEQUENCES FOR THE ECONOMY, AGING WORKER DEMOGRAPHICS, TOO FEW JOB SEEKERS.

THERE WERE 8.8 MILLION UNFILLED JOBS NATIONWIDE IN 2023.

WE'RE SEEING EVOLVING INDUSTRY TRENDS AWAY FROM THE GOODS PRODUCING SECTORS.

WE'RE SEEING MUCH MORE EMPLOYMENT GROWTH AND SERVICE PRODUCING SECTORS, AND THAT'S LEADING TO CHANGES IN NEEDED SKILLS MUCH MORE FREQUENTLY THAN WHAT WE'VE SEEN IN THE PAST.

WHAT SKILLS THAT USED TO CHANGE OR EVOLVE, MAYBE OVER A DECADE IS NOW HAPPENING EVERY ONE TO THREE YEARS.

SO WHAT DOES ALL THIS ADD UP TO? JUST A YEAR REALLY MARKED WITH A LOT OF UNCERTAINTY.

OUR REGIONAL PERSPECTIVE REALLY REFLECTED A LOT OF THOSE NATIONAL TRENDS.

ON THE ONE HAND, KANSAS, I THOUGHT THIS WAS INTERESTING, EXPERIENCED SOME OF THE GREATEST STATE GDP GROWTH IN THE NATION IN 2023.

IN SECOND QUARTER WE WERE SECOND IN THE NATION.

IN THIRD QUARTER, WHICH IS THE MOST RECENT INFORMATION WE HAVE, WE ACTUALLY TOOK THE TOP SPOT IN THE COUNTRY 9.7% STATE GDP GROWTH, COMPARED TO 4.9% AVERAGE NATIONALLY, AND I'D LIKE TO SAY TEXAS WAS NUMBER 2 BEHIND US, AT 7.7%.

MORE GOOD NEWS, KANSAS CITY, OUR INDUSTRIAL SECTOR WAS AMONG THE COUNTRY'S TOP MARKETS FOR NET ABSORPTION,

[00:20:05]

WHICH IS A MEASURE OF SQUARE FEET OCCUPIED VERSUS VACANCY, PUTTING US 12TH IN THE NATION.

SO THAT WAS A VERY STRONG SECTOR FOR US, BOTH IN OUR REGION AND IN LENEXA.

BUT LIKE THE REST OF THE COUNTRY, OUR REGION ALSO SAW DEMAND IN THE OFFICE SECTOR GENERALLY REMAIN SOFT EVEN THOUGH WE'RE SEEING MORE WORKERS RETURNING TO WORK IN PERSON [NOISE] WITH OFFICE VACANCIES REACHING THEIR HIGHEST RATES IN AT LEAST A DECADE.

VACANCY RATES DID VARY FROM FIRM TO FIRM, GEOGRAPHICALLY, FROM LIKE CENTRAL BUSINESS DISTRICT TO THE SUBURBS AND BY CLASS OF OFFICE.

BUT I'VE SEEN RATES ANYWHERE FROM 17% UP TO 26% EVEN SOMETIMES TICKING A LITTLE BIT HIGHER THAN THAT.

BY THE WAY OF COMPARISON, IN 2019, PRE-PANDEMIC KANSAS CITY'S OFFICE VACANCY RATE STOOD CLOSER TO 11-14%, SO NOT INSIGNIFICANT.

THE IMPACT OF LARGE COMPANIES WITH NEWLY HYBRID WORKFORCES SCALING BACK THEIR OFFICE SQUARE FOOTAGE OBVIOUSLY HAS BEEN WELL DOCUMENTED.

REAL ESTATE FIRMS REPORT AVERAGE GIVE BACK IN THE RANGE OF 15-30% CONSISTENTLY.

SO AGAIN, NOT INSIGNIFICANT, BUT I FOUND IT INTERESTING THAT THE SOFT OFFICE MARKET, IT WASN'T ACROSS THE BOARD.

DEMAND FOR CLASS A OFFICE SPACE, WHICH IS CONSIDERED THE HIGHEST QUALITY, HAS REMAINED STRONG LOCALLY AND EVEN NATIONALLY, AND WE'LL TALK A LITTLE BIT MORE ABOUT WHY THAT IS AS WE GET ONTO TRENDS WE'RE SEEING IN 2024.

THE HIGH CONSTRUCTION COST AND HIGH INTEREST RATES IMPACTING BOTH BUILDERS AND BUYERS, HELPED DEPRESS NEW HOME BUILDING ACTIVITY IN THE SALINE COUNTY KANSAS CITY METRO TO NEW LOWS.

NEW SINGLE FAMILY HOUSING PERMITS FOR THE KANSAS CITY REGION FELL IN 2023 TO THEIR LOWEST POINT IN A DECADE, DOWN 19% FROM 2022'S TOTAL.

HIRING WAS ALSO A CHALLENGE.

OUR REGIONAL UNEMPLOYMENT RATE WAS WELL BELOW THE NATIONAL AVERAGE, HOVERING AROUND 3.2%.

IN JOHNSON COUNTY, IT WAS JUST 2%.

WE ALL KNOW HIRING IS IMPORTANT TO PRODUCTIVITY AND GROWTH, AND WHEN YOU'VE GOT 2% UNEMPLOYMENT, THAT'S A DIFFICULTY.

SO A LOT OF HEADWINDS, A LOT OF BACKGROUND NOISE.

BUT DESPITE THAT, DEVELOPMENT IN LENEXA PROVED TO BE RESILIENT AND ACTUALLY THRIVED IN 2023, REALLY RIDING A WAVE OF MOMENTUM THAT'S BEEN YEARS IN THE MAKING FROM ONGOING REDEVELOPMENT ON THE CITY'S EAST SIDE LIKE THE MINT EVENT SPACE, ALL THE WAY TO BREAKING GROUND ON LENEXA'S FAR WEST FOR NEW RESIDENTIAL DEVELOPMENT, TO PROJECTS UP AND DOWN RENNER BOULEVARD.

WE SAW CONTRACTORS, CRANES, DIRT MOVING IN EVERY CORNER OF LENEXA, WHICH IS EXTREMELY EXCITING TO ME.

IT WAS ACROSS THE BOARD, EAST TO WEST, NORTH TO SOUTH.

AS YOU ALREADY KNOW, BY YEAR'S END, LENEXA SET A NEW TOTAL DEVELOPMENT RECORD OF MORE THAN $663 MILLION, 42% HIGHER THAN ITS PREVIOUS RECORD SETTING YEAR IN 2018.

UNBELIEVABLE WITH THE HEADWINDS THAT WE SAW IN 2023.

IT WAS AN EXCEPTIONALLY STRONG YEAR FOR COMMERCIAL GROWTH, WHICH REPRESENTED $463 MILLION OF THAT TOTAL, 321 MILLION OF IT IN NEW CONSTRUCTION.

YOU'RE ALREADY FAMILIAR WITH THE NOTABLE COMMERCIAL PROJECTS IN 2023 THAT SIGNIFIED NEW CONSTRUCTION, EXPANSIONS, RENOVATIONS, PROJECTS LIKE THE ADVENTHEALTH AT CITY CENTER, THE KIEWIT K3 OFFICE BUILDING, STANDARD BEVERAGES, NEW OFFICE AND DISTRIBUTION FACILITY, THE WATERONE HEADQUARTERS REMODEL, LENEXA SMART STORAGE, RESTAURANT ROW PHASE 1, AND ON AND ON AND ON.

IN ADDITION, THE HUNDREDS OF THOUSANDS OF SQUARE FEET AND NEW DISTRIBUTION AND LIGHT INDUSTRIAL SPACE HAVE COME ONLINE IN LENEXA OVER THE PAST FEW YEARS CONTINUED TO ATTRACT NEW COMPANIES TO OUR CORPORATE COMMUNITY.

FOR EXAMPLE, 346,000 SQUARE FEET OF NEW INDUSTRIAL SPACE, THAT WAS COMPLETED IN 2023 IN ONE OF OUR BUSINESS PARKS, IS ALREADY FULLY LEASED TO NINE TENANTS, INCLUDING SOURCING, FURNITURE OPTIONS, AND FACILITY SOLUTIONS GROUP.

ALTHOUGH NOT OUR MAIN FOCUS WITH THE EDC LENEXA'S RESIDENTIAL DEVELOPMENT IN 2023 ALSO EXCEEDED 2022'S TOTAL WITH THE REFLECTIONS MULTIFAMILY DEVELOPMENT, WHICH IS THE FIRST NEW MULTIFAMILY DEVELOPMENT I BELIEVE SINCE 2020 HELPING BOOST RESIDENTIAL VALUATION MORE THAN 50% OVER 2022.

HOT IN ALL AREAS.

BY ANY MEASURE, 2023 WAS A HUGE YEAR FOR LENEXA.

IN RECENT YEARS,

[00:25:01]

JUST FROM AN EVERYDAY ECONOMIC DEVELOPMENT ACTIVITY PERSPECTIVE, WE'VE REALLY SEEN THE TREND IN OUR DEAL FLOW MOVING MORE TOWARDS ORGANIC DEVELOPMENT AND AWAY FROM THE RFI PROCESS WHERE WE HAVE THE SECRETLY NAMED PROJECTS, THOSE ARE STILL IMPORTANT, BUT WE'RE SEEING LESS OF THAT AND MORE OF THEIR ORGANIC DEVELOPMENT.

BUT IF WE JUST LOOK AT OUR RFI REQUESTS FOR 2023, OUR PROSPECT PIPELINE REALLY GAINED STEAM MORE TOWARDS THE END OF THE YEAR.

THE MAJORITY OF THOSE PROJECTS, NOT SURPRISINGLY, FOR THE ASSETS OUR COMMUNITY HAS IN TERMS OF TRANSPORTATION OR IN THE MANUFACTURING SECTOR, SOME IN WAREHOUSE DISTRIBUTION.

BUT WE ALSO SAW A FEW OFFICE PROJECTS START TO REAPPEAR, WHICH WAS VERY WELCOME NEWS TO SEE.

OUR REAL ESTATE OPTIONS AND OUR COMMUNITY ARE IN SITE LOCATION, CONSULTANTS, VISITS AND MEETINGS.

WE CLOSED OUT 2023 STRONG WITH A NUMBER OF ACTIVE PROJECTS THAT WE'RE IN THE HUNT FOR, WHICH IS VERY EXCITING FOR ME.

LOOKING AHEAD TO 2024, LENEXA IS ALREADY WELL-POSITIONED FOR ANOTHER VERY GOOD YEAR.

THE CITY STARTED THE YEAR WITH AN EXPECTED $254 MILLION ALREADY IN THE PIPELINE.

WE HAVE ACTIVE PROJECTS THAT WE'RE WORKING AND A STEADY PACE OF NEW OPPORTUNITIES.

LET ME TELL YOU, THIS YEAR IS STARTING OFF HOT.

IN JUST THE PAST FEW WEEKS, OUR RELATIONSHIPS WITH OUR ECONOMIC DEVELOPMENT PARTNERS HAVE ALREADY PROVIDED VALUABLE OCCASIONS TO MARKET OUR COMMUNITY.

THE KANSAS DEPARTMENT OF COMMERCE EUROPE TEAM, WHO IS BASED IN FRANKFURT, GERMANY AND THEY ARE CHARGED WITH MARKETING FOREIGN INVESTMENT IN KANSAS TO GERMAN, SWISS, AND AUSTRIAN COMPANIES, AS WELL AS COMMERCE'S WEST COAST AND CENTRAL STATES REPRESENTATIVES ALL MADE SITE VISITS TO LENEXA AND EXPERIENCED FIRSTHAND WHAT OUR CITY HAS TO OFFER.

JUST A LITTLE MORE ON THE EUROPE TEAM, THEY ACTUALLY STAYED IN LENEXA AND WE HAD A VERY PRODUCTIVE MEETING.

THEY GOT A WINDSHIELD TOUR AS THEY WENT AND THEY ACTUALLY TOURED LENEXA BUSINESS.

A LOT OF GREAT FACETIME WITH THEM.

I THOUGHT YOU MIGHT BE INTERESTED IN SEEING AN EXAMPLE OF THE KINDS OF COLLATERAL THAT WE CUSTOMIZE AND PRODUCE TO HELP LEAD CONVERSATIONS WITH FOLKS LIKE THAT.

AT THE END OF MY REPORT, YOU'LL FIND JUST A SAMPLE OF WHAT WE PRODUCE FOR THE EUROPE TEAM AND YOU'LL SEE WE PUT THINGS IN KILOMETERS, WE PUT THINGS IN EUROS.

WE REALLY PLAYED TO THE TYPE OF ASSETS LENEXA HAS FOR THE TYPES OF SMALL AND MEDIUM-SIZED BUSINESSES THAT THE EUROPE TEAM IS REALLY AIMED AT THAT THEY FOCUS ON.

LAST WEEK, I HAD THE OPPORTUNITY TO ACCOMPANY THE KANSAS CITY AREA DEVELOPMENT COUNCIL CEO AND PRESIDENT TIM COWDEN, AS WELL AS MY COUNTERPART FOR THE CITY OF KANSAS CITY, MISSOURI, TO NEW YORK.

WHERE THE THREE OF US HELD A SERIES OF MEETINGS WITH EAST COAST-BASED SITE LOCATION INFLUENCERS, BUILDING RELATIONSHIPS, PROMOTING THE ADVANTAGES OF OUR COMMUNITY, OF OUR REGION, OF OUR STATE.

GREAT SET OF MEETINGS AND IT GOT THEIR ATTENTION WHEN I SAID THAT WE HAD DONE $663 MILLION OF TOTAL DEVELOPMENT FOR A SUBURBAN COMMUNITY OF 60,000.

WHILE THERE I GOT WORD THAT WE HAVE A SITE VISIT IN A COUPLE OF WEEKS FOR A POTENTIAL DISTRIBUTION PROJECT.

THINGS ARE HAPPENING.

THERE ARE ADDITIONAL REASONS FOR OPTIMISM AS WE MOVE FORWARD INTO 2024.

INFLATION IS PREDICTED TO CONTINUE TO DECELERATE.

THE FEDERAL RESERVE IS EXPECTED TO CUT INTEREST RATES OVER THE NEXT 12 YEARS.

HOPEFULLY, THE ECONOMIC UNCERTAINTY IS GOING TO FADE AS WE MOVE THROUGH THE YEAR.

THAT BEING SAID, THERE ARE STILL IMPORTANT TRENDS THAT WE'RE GOING TO BE WATCHING IN 2024 THAT MAY IMPACT THE DEVELOPMENT MARKET AND THE GROWTH ENVIRONMENT.

THE FIRST ONE I WOULD MENTION, BECAUSE I REFERENCED IT BEFORE, HYBRID WORK IS EVOLVING BACK TO MORE MANDATED TIME IN THE OFFICE, WHICH MEANS THE OFFICE SECTOR IS EXPERIENCING WHAT THEY'RE CALLING A FLIGHT TO QUALITY.

AS EMPLOYERS ARE REALLY FOCUSED ON AMENITY RICH CLASS A SPACE TO HELP MOTIVATE EMPLOYEES TO RETURN TO THE OFFICE.

DESPITE THE SOFT MARKET, MODERN BUILDINGS WITH ABSOLUTELY PREMIUM AMENITIES, THE HIGHEST QUALITY AND THE BEST LOCATIONS ARE ATTRACTING TENANTS.

THAT'S GREAT NEWS FOR YOUR CLASS A OWNERS AND BROKERS.

BUT THE OFFICE SECTOR AS A WHOLE, WE BELIEVE, IS GOING TO CONTINUE TO FACE UNCERTAINTY.

OWNERS ARE TRYING TO FIGURE OUT WHAT TO DO IF THEY'VE GOT VACANCIES AND THEY'RE CHALLENGED BY THIS FLIGHT TO QUALITY.

IF YOU HAVE AN OLDER BUILDING OR A CLASS B BUILDING, WHAT DO YOU WANT TO DO WITH THAT OR DO YOU WANT TO GET CREATIVE ABOUT THE FUTURE OF THAT PARTICULAR FACILITY? TENANTS ARE STILL TRYING TO DETERMINE HOW MUCH SQUARE FOOTAGE THAT THEY THINK THEY'RE GOING TO ACTUALLY NEED.

[00:30:02]

THERE'S A LOT OF SHORT TERM LEASES THAT WERE SIGNED DURING THE PANDEMIC THAT ARE EXPIRING, AND THEY'RE TRYING TO FIGURE OUT HOW MUCH ARE THEY GOING TO SIGN ON FOR.

IT'S REALLY GIVING AN EDGE TO SPACES AND BUILDINGS THAT WILL ALLOW THEM TO GROW OR CONTRACT OVER THE COURSE OF A LEASE, AND SO THAT'S PROBABLY GOING TO BECOME MORE A PART OF A DESIGN, THAT KIND OF FLEXIBILITY.

THIS IS ONE THAT I'VE REALLY NOTICED IN OUR DEAL FLOW.

POST PANDEMIC, THERE'S BEEN A REAL FOCUS ON RESHORING AND BUILDING UP DOMESTIC PRODUCTION CAPACITY.

THOSE SHORTAGES THAT WE EXPERIENCED REALLY REVEALED THE NEED TO DO THAT.

WE'VE SEEN A REAL SHIFT IN ECONOMIC DEVELOPMENT TO VERY LARGE INDUSTRIAL PROJECTS.

MOST PROJECTS THAT COME ACROSS WE'VE GOT AN OPTION FOR, BUT I'M SEEING A LOT THAT WANT 100 ACRES, 300 ACRES, 500 ACRES AND THERE'S $1 BILLION OF CAPITAL INVESTMENT.

I THOUGHT IT WAS MAYBE THE PANASONIC EFFECT, BUT WE'RE SEEING A LOT OF THAT IN THE KINDS OF DEALS THAT ARE COMING DOWN THE PIPELINE.

THESE LARGER PROJECTS, RAPID EXPANSION AND INCREASED USE OF TECHNOLOGY, THERE'S JUST GROWING DEMAND FOR POWER THAT'S REALLY PUSHING OUR POWER INFRASTRUCTURE TO ITS LIMITS AND THAT'S REALLY ACCELERATING THE DISCUSSION ABOUT INVESTING IN THAT INFRASTRUCTURE.

THAT'S CERTAINLY SOMETHING THAT WE'RE SEEING PLAY OUT TODAY IN THE LEGISLATURE.

THEN NEW FEDERAL REGULATIONS COULD HAVE MAJOR ECONOMIC IMPACTS FOR BUSINESS.

WHILE THE OVERALL LABOR MARKET WILL REMAIN TIGHT, 2024 IS PROJECTED TO SEE LESS WORKFORCE CHURN.

THEY'RE SAYING THE GREAT RESIGNATION IS BECOMING THE BIG STAY.

EMPLOYERS ARE DOING MORE TO TRY TO PROACTIVELY HANG ON TO EMPLOYEES THAT THEY THINK WOULD BE VERY DIFFICULT TO REPLACE, AND EMPLOYEES ARE RETHINKING LEAVING AS THERE IS MORE INCENTIVE TO STAY.

BUT EVEN MORE, YOU'RE SEEING IN THE NEWS, MAJOR CORPORATE LAYOFFS, AND THEY'RE WORRIED ABOUT LEAVING AND THEN BEING LOWEST IN SENIORITY IN THEIR NEW OFFICE ENVIRONMENT.

HOPEFULLY THE LABOR MARKET, ALTHOUGH TIGHT, ISN'T GOING TO BE THE FRENZY KIND OF THAT IT WAS OR THAT WE'VE SEEN THE LAST COUPLE OF YEARS.

JUST IN CONCLUSION, IT'S A HYPER COMPETITIVE ENVIRONMENT FOR ECONOMIC DEVELOPMENT, BUT LENEXA CONTINUES TO STACK UP VERY WELL.

IT'S A PRIVILEGE TO SERVE AS YOUR FRONT LINE ADVOCATE SERVING OUR EXISTING BUSINESSES AND OUR DEVELOPMENT COMMUNITY AND WORKING ALONGSIDE WHAT IS ABSOLUTELY A TOP NOTCH CITY STAFF.

I SINCERELY APPRECIATE YOUR SUPPORT, YOUR CLOSE PARTNERSHIP, AND REST ASSURED THAT WE WORK EVERY DAY TO CONTINUE TO EARN IT.

THANK YOU AND I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.

>> QUESTIONS FOR ASHLEY.

THAT WAS A LOT OF INFORMATION.

THANK YOU SO VERY MUCH FOR SELLING US WELL AND COLLECTING IT ALL FOR US FOR PRESENTATION.

>> THANK YOU.

>> NEXT IS THE CONSENT AGENDA.

[CONSENT AGENDA]

SEVEN ITEMS ON TONIGHT'S CONSENT AGENDA.

ALL MATTERS LISTED WITHIN THE CONSENT AGENDA HAVE BEEN DISTRIBUTED TO EACH MEMBER OF THE GOVERNING BODY FOR REVIEW, ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED ON BY ONE MOTION WITH NO SEPARATE DISCUSSION.

IF A MEMBER OF THE GOVERNING BODY OR THE AUDIENCE DESIRES TO SEPARATE DISCUSSION ON AN ITEM, THAT ITEM MAY BE REMOVED FROM THE CONSENT AGENDA AND PLACED ON THE REGULAR AGENDA.

ANY ITEMS FOR DISCUSSION? HEARING NONE, I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA.

>> MOTION MOVED.

>> SECOND.

>> MOTION BY JOE, SECOND BY MARK. ALL IN FAVOR?

>> AYE.

>> MOTION IS APPROVED.

JUST ONE BOARD RECOMMENDATION THIS EVENING THAT HAS BEEN CONTINUED.

ITEM NUMBER 8 IS A CONSIDERATION OF A REZONING AND PRELIMINARY PLAN KNOWN AS THE SANTA FE COMMERCE CENTER FOR AN INDUSTRIAL DEVELOPMENT LOCATED AT THE NORTHEAST CORNER OF SANTA FE TRAIL DRIVE AND LAKEVIEW AVENUE HAS BEEN CONTINUED TO THE FEBRUARY 20, 2024 CITY COUNCIL MEETING.

ITEM NUMBER 9 IS PUBLIC HEARING THAT HAS ALSO BEEN CONTINUED.

CONSIDERATION OF A RIGHT-OF-WAY VACATION OF LAKEVIEW AVENUE NORTH OF SANTA FE TRAIL DRIVE AND SOUTH 113TH STREET HAS BEEN CONTINUED TO THE FEBRUARY 20, 2024 CITY COUNCIL MEETING.

ITEM NUMBER 10 IS CONSIDERATION OF RIGHT-OF-WAY VACATION OF OAK STREET

[10. Consideration of a rights-of-way vacation of Oak Street between Pflumm Road and Haskins Street for the Lenexa Old Town Activity Center a. Public hearing to consider a request to vacate rights-of-way b. Ordinance vacating the rights-of-way]

[00:35:04]

BETWEEN PFLUMM ROAD AND HASKINS STREET FOR THE LENEXA OLD TOWN ACTIVITY CENTER, WHICH WE BROKE GROUND ON THIS EVENING. MIKE.

>> GOOD EVENING, MAYOR, COUNCIL.

MIKE NOLAN, ASSISTANT CITY MANAGER.

NO, I AM NOT STEPHANIE KISLER OUR PLANNING MANAGER, [LAUGHTER] WHO WOULD USUALLY BE PRESENTING THESE THINGS BUT SHE PRESENTED ME WITH AN AWESOME SLIDE DICK THAT I CAN HELP YOU UNDERSTAND THIS.

THIS IS A VERY IMPORTANT PART OF THE PROJECT, ALTHOUGH A VERY SMALL ONE.

IT'S VACATING THE ORIGINAL TOWN PLATS OAK STREET RIGHT-OF-WAY ON THE SOUTH ENTRANCE TO THE FUTURE LENEXA OLD TOWN ACTIVITY CENTER.

YOU'LL BE CONDUCTING A PUBLIC HEARING FIRST AND THEN CONSIDERING AN ORDINANCE VACATING THE RIGHT-OF-WAY.

JUST TO ORIENT YOU NORTH IS UP, EAST IS TO THE RIGHT.

THE AREA IN RED IS THE AREA OF OAK STREET RIGHT-OF-WAY THAT IS PROPOSED TO BE VACATED.

AS YOU CAN SEE, IT DOESN'T GO THE FULL WAY OF OLD OAK STREET.

THERE IS STILL SOME PUBLIC RIGHT-OF-AWAY IN FRONT OF THE TRIAX BUILDING JUST EAST OF PFLUMM ROAD, BETWEEN HASKINS AND WHERE THE SENIOR CENTER PARKING LOT TERMINATES NOW.

THIS IS A LITTLE BIT OF A CLOSER VIEW OF WHAT THAT LOOKS LIKE, BUT I WANTED TO SHOW YOU WHAT THE LENEXA OLD TOWN ACTIVITY CENTER BUILDING FUTURE FOOTPRINT IS GOING TO LOOK LIKE AND WHY WE NEED TO VACATE THIS RIGHT-OF-AWAY IS BECAUSE WE ARE ACTUALLY GOING TO BE BUILDING PART OF OUR STRUCTURE IN THAT.

STATE LAW SETS OUT FOUR CRITERIA FOR VACATING RIGHT-OF-WAY.

THE FIRST OF WHICH IS THAT LEGAL NOTICE HAS BEEN GIVEN BY PUBLICATION, WHICH WE PUBLISHED ON JANUARY 16 IN THE LEGAL RECORD THAT NO PRIVATE RIGHTS HAVE BEEN INJURED.

ALL THE UTILITIES THAT WERE LOCATED IN THIS RIGHT-OF-WAY WERE NOTIFIED AND WE DIDN'T HEAR ANY OBJECTIONS.

I WILL NOTE THAT IN YOUR COUNSEL PACKET THERE WAS INDICATION WE ARE WORKING WITH AT&T.

THERE'S ALSO A PRIVATE EASEMENT ALONG THIS AREA, AND SO WE'RE WORKING WITH THEM THROUGH A SEPARATE PROCESS TO VACATE THAT PRIVATE EASEMENT.

THEY HAD NO OBJECTIONS THERE, AND THEY HAVE CONSENTED TO THE VACATION, THAT THE PUBLIC WILL SUFFER NO INJURY OR INCONVENIENCE.

THIS HAS NOT BEEN A THROUGH STREET IN A REALLY LONG TIME, AND SO WE DON'T THINK THAT THE PUBLIC WILL SUFFER ANY INCONVENIENCE AND HOPEFULLY, WITH THE NEW FACILITY THERE, THEY'LL BE WELCOMED EVEN BETTER THAN WE HAVE IN THE PAST.

THAT IN JUSTICE TO THE PETITIONER, WHICH IS THE CITY ITSELF, THE VACATION SHOULD BE GRANTED AND ITS STAFF'S OPINION THAT WE SHOULD GRANT THIS RIGHT-OF-WAY VACATION SO THAT WE CAN CONSTRUCT THE PROJECT.

IF THERE ARE ANY QUESTIONS, I'D BE HAPPY TO STAND FOR THEM.

>> ANYTHING BEFORE WE OPEN THE PUBLIC HEARING? I WILL NOW OPEN THE PUBLIC HEARING.

IF THERE IS ANYONE WHO WISHES TO SPEAK ON THIS ITEM, PLEASE COME FORWARD, SIGN AND STATE YOUR NAME AND ADDRESS FOR THE RECORD.

SEEING NONE, I WILL MAINTAIN A MOTION TO CLOSE THE PUBLIC HEARING.

>> MOTION MOVED.

>> SECOND.

>> MOTION BY CRAIG, SECOND BY BILL. ALL THOSE IN FAVOR?

>> AYE.

>> PUBLIC HEARING IS CLOSED.

IS THERE ANY OTHER DISCUSSION? SEEING NONE, I WILL ENTERTAIN A MOTION TO APPROVE THE ORDINANCE VACATING THE RIGHTS-OF-WAY.

>> MOTION MOVED.

>> SECOND.

>> [LAUGHTER] MOTION BY CHELSEA, SECOND BY MELANIE. ALL IN FAVOR?

>> AYE.

>> MOTION PASSES.

>> THANK YOU.

>> YOU'RE WELCOME. THANK YOU, MIKE.

WE HAVE NO NEW BUSINESS THIS EVENING.

ARE THERE ANY COUNCIL MEMBER REPORTS? EVERYBODY HAS BEEN GOOD? OKAY. BECKY, ANYTHING FROM STAFF THIS EVENING?

[STAFF REPORTS]

>> THE ONLY THING I HAVE THIS EVENING, MAYOR, IS THAT WE WILL NOT HAVE A COMMITTEE OF THE WHOLE MEETING ON FEBRUARY 13.

WE'LL SEE NEW COUNCIL MEMBERS AT THEIR ORIENTATION NEXT WEEK, BUT WE'LL SEE THE REST OF YOU BACK HERE ON THE 20TH.

>> HAPPY VALENTINE'S DAY.

THIS WILL END THE RECORDED PORTION OF THE EVENING.

* This transcript was compiled from uncorrected Closed Captioning.