Link

Social

Embed

Disable autoplay on embedded content?

Download

Download
Download Transcript

[CALL TO ORDER]

[00:00:09]

THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS.

ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

JENNIFER, WOULD YOU PLEASE CALL ROLL? THANK YOU, MAYOR.

[APPROVE MINUTES]

THANK YOU. UNDER THE MINUTES THIS EVENING, STAFF HAS REQUESTED THAT WE PULL THE JULY 16TH DRAFT MINUTES FROM THIS AGENDA FOR REVIEW.

WE WILL HAVE THOSE PRESENTED ON A FUTURE MEETING DATE, BUT WE DO HAVE THE DRAFT MINUTES FOR THE JULY 2ND CITY COUNCIL MEETING.

DO I HAVE A MOTION TO APPROVE? MOTION BY BILL. SECOND BY CRAIG.

ALL IN FAVOR? MINUTES ARE APPROVED.

JENNIFER. ANY MODIFICATIONS THIS EVENING? NONE THIS EVENING.

THANK YOU.

[APPOINTMENT]

THIS EVENING WE HAVE AN APPOINTMENT BEFORE YOU FOR THE PARKS AND REC ADVISORY BOARD AT A VACANCY WITH THE DEPARTURE OF MISS NATALIE AQUINO BRECK.

AND BEFORE YOU IS THE RECOMMENDATION FOR SARAH HANSON, WHOSE MEMO WAS IN YOUR MEETING PACKET.

SARAH IS HERE JOINING US TO SAY HELLO.

DO I HAVE A MOTION TO APPROVE THE APPOINTMENTS? MOTION BY BILL.

SECOND BY, WAS THAT CHRIS? ALL IN FAVOR? AYE, AYE. WELCOME, SARAH.

THANK YOU. OKAY.

[PRESENTATIONS]

TONIGHT WE HAVE A COUPLE OF PRESENTATIONS.

WE HAVE MID-YEAR REPORT FROM THE CONVENTION VISITORS BUREAU AND THE ECONOMIC DEVELOPMENT COUNCIL.

START WITH JULIE.

HELLO. MAYOR SAYERS AND COUNCIL MEMBERS, JULIE STEINER WITH THE LENEXA CVB.

HAPPY TO BE HERE WITH MY SECOND REPORT TO YOU FOR 2024.

SO STARTING OFF WITH HOTELS.

AS FAR AS HOTELS GO, BUSINESS HAS BEEN PRETTY STEADY.

AND FROM THE GUEST TAX CHART THAT I INCLUDED ON MY REPORT, YOU CAN SEE THAT IT IS CONTINUED TO INCREASE STEADILY.

AND WHILE WE DON'T REALLY GET ANY SPECIFIC DATA ON WHAT THAT TYPE OF BUSINESS IS, WE DO KNOW THAT BUSINESS TRAVEL HAS BEEN CONTINUING TO COME BACK SINCE 2021.

WE DID GET A FEW PIECES OF INFORMATION FROM SOME OF OUR PROPERTIES.

THE SPRINGHILL SUITES CONTINUES TO GROW BUSINESS AND REVENUE YEAR OVER YEAR.

IN 2024, THEY ARE RUNNING AN AVERAGE OF 80% OCCUPANCY.

THEY ADDED 12 NEW GUEST ROOMS, A PROCESS THAT WAS HALTED BY THE PANDEMIC.

AND OF COURSE, ACROSS THE STREET, THE BUILDING PROCESS ON THEIR SISTER PROPERTIES IS FINALLY GETTING UNDERWAY.

SO I KNOW WE'RE ALL EXCITED ABOUT THAT.

FOR THE TWO SISTER PROPERTIES AT 95TH STREET, WHICH ARE CANDLEWOOD SUITES.

THEY HAVE BEEN RUNNING AN AVERAGE OF 69.5% OCCUPANCY THIS YEAR, WHILE THE HOLIDAY INN NEXT DOOR IS ABOUT 73.5 AND THE OVERALL US OCCUPANCY RATE IS LOW 60S.

SO EVEN THOUGH THOSE ARE, THAT'S DATA FROM ONLY A FEW OF OUR PROPERTIES.

IT'S NICE TO KNOW THAT THAT WE'VE GOT SOME THAT ARE WELL ABOVE THAT AVERAGE.

MOVING ON TO SOME MORE GENERAL INFORMATION, OUR CVB ADVISORY COUNCIL, WHICH IS MADE UP OF THE NON-VOTING BOARD THAT'S MADE UP OF MOSTLY HOTEL REPRESENTATIVES BUT INCLUDES SOME OTHER COMMUNITY STAKEHOLDERS LIKE COUNCILMAN NIX.

WE ARE GOING TO BE MEETING NEXT ON AUGUST 19TH, AND OUR GUEST SPEAKER IS THE EXECUTIVE DIRECTOR OF THE HOTEL AND LODGING ASSOCIATION OF GREATER KANSAS CITY, WHO WILL BE SHARING SOME RESULTS FROM THEIR WAGE AND BENEFIT SURVEY OF METRO AREA HOTELS.

I CONTINUE TO SERVE ON THE LENEXA HISTORICAL SOCIETY BOARD, SO A COUPLE UPDATES FROM LHHS INCLUDE WORKING ON A WALKING TOUR OF OLD TOWN WHICH WOULD FEATURE SIGNIFICANT BUILDINGS AND HOMES.

SOME OF THE IDEAS WERE KIND OF THINKING ABOUT OUR HIGHLY VISIBLE QR CODES AT CERTAIN BUSINESSES OR SOME OF THE HOMES THAT ARE 100 PLUS YEARS OLD. THAT WILL TELL THE STORIES OF THOSE RESIDENCES SO THAT PEOPLE CAN KIND OF YOU KNOW, DO THAT TOUR ON THEIR OWN.

AND ALSO, LHHS IS PARTNERING WITH KANSAS HUMANITIES ON THREE LUNCH AND LEARNS THIS FALL THAT WE'RE GOING TO BE A SPONSOR FOR.

SO LOOKING FORWARD TO THOSE AS WELL.

AND THEN FINALLY INTO SPORTS TOURISM, OUR 435 SPORTS PARTNERSHIP, WHICH WORKS TO BRING AND KEEP BUSINESS IN THE AREA, IS CURRENTLY WORKING WITH TOP GUN SPORTS, WHICH IS A BASEBALL AND SOFTBALL TOURNAMENT ORGANIZER THAT BRINGS A LOT OF BUSINESS TO THE AREA.

OF COURSE, INCLUDING USING HOTEL ROOMS. AND THIS IS OUR FIRST PROJECT AS A PARTNERSHIP.

AND WE HOPE THAT BY COMBINING OUR RESOURCES, WE CAN KEEP THIS GROUPS TOURNAMENT BUSINESS IN OUR AREA.

THREE AND TWO BASEBALL HAS A NEW PARTNERSHIP WITH PERFECT GAME SPORTS.

[00:05:03]

THIS SHOULD PROVIDE A STRONGER REVENUE SHARE FOR THREE AND TWO AND ENABLE THE CLUB TO MAKE ENHANCEMENTS TO THE BALLPARK.

AS YOU KNOW, THERE'S AN ITEM ON TONIGHT'S AGENDA THAT, IF PASSED, WOULD MEAN A NEW PARTNERSHIP WITH THE CITY OF LENEXA AS WELL.

THREE AND TWO WAS INCORPORATED OFFICIALLY IN 1951, SO THAT MEANS 73 YEARS OF BEING PART OF OUR COMMUNITY.

ACCORDING TO MULTIPLE TOURISM SOURCES, SPORTS TOURISM HAS BEEN AND WILL CONTINUE TO BE ONE OF THE INDUSTRY'S FASTEST GROWING SECTORS.

AND WE HAVE SEEN THAT WITH YOUTH SPORTS IN OUR COMMUNITY.

AND A COUPLE OF YEARS, WE'LL SEE A BIG CHUNK OF THAT WITH THE WORLD CUP.

STILL DON'T THINK WE KNOW WHAT'S GOING TO HIT US.

SO INTERESTING TO LEARN ABOUT THAT.

BUT THAT'S IT FOR ME.

I DON'T KNOW IF YOU HAVE ANY QUESTIONS.

I TRY TO ANSWER QUESTIONS FOR JULIE.

GREG. ALL RIGHT.

YOU KNOW, BEFORE THE PANDEMIC, WE WERE LOOKING AT VARIOUS AND SUNDRY SWIM COMPETITIONS IN THE AQUATIC CENTER.

HAS THAT BUSINESS COME BACK? YEAH. YOU KNOW, THERE ARE I THINK WE WERE SPECIFICALLY LOOKING AT A NATIONAL TOURNAMENT THAT WAS ACTUALLY NBC WAS INVOLVED, AND WE STARTED GETTING INVOLVED WITH THE PROPOSAL FOR THAT, AND WE HAD SOME HELP SINCE WE'VE NEVER HAD TO DEAL WITH THAT BEFORE.

I KNOW THERE HAVE BEEN SOME REGIONAL TYPE TOURNAMENTS, BUT BECAUSE, YOU KNOW, THEY GO THROUGH THE SCHOOL DISTRICT SCHEDULE AND THEN THE COUNTY SCHEDULING WE'RE NOT REALLY, WE HAVEN'T BEEN INVOLVED IN ANYTHING.

SO I HAVEN'T SEEN ANYTHING, CERTAINLY NOT ON THE, YOU KNOW, TELEVISED ON NBC LEVEL, BUT I THINK THEY'RE THEY'VE BEEN PRETTY STEADILY HOLDING SOME, SOME DECENT REGIONAL TOURNAMENTS OR MEETS.

THANK YOU. BILL.

THANK YOU JULIE.

I KNOW A WHILE BACK, YOU INVITED A LOT OF US TO MEET AND HEAR FROM THE DIRECTOR OF THE WORLD CUP.

YEAH. AND NOW WE HAVE A NEW ONE.

EVERYTHING THAT YOU KNOW OF.

EVERYTHING MOVING POSITIVE.

AND WE'RE GOING TO PULL THIS OFF.

I THINK THAT THAT PERSON THERE, SHE'S BEEN THERE THIS WHOLE TIME AND HAS BEEN INVOLVED.

SO THERE'S, YOU KNOW, THERE'S THIS INSTITUTIONAL KNOWLEDGE.

I DON'T REALLY KNOW ANY MORE THAN YOU DO.

THE ONLY THING I'VE SEEN RECENTLY, WHICH I THINK CAME OUT LAST YEAR, WAS ON VISIT CASEY'S WEBSITE, THERE WAS A KIND OF A PRESS RELEASE ABOUT FALSE ABOUT WATCHING OUT FOR COMPANIES, ORGANIZATIONS CALLING HOTELS, TRYING TO MAKE LIKE EARLY ROOM BLOCKS, KIND OF POSING AS AN ORGANIZATION THAT THEY WEREN'T, AND THAT AS OF NOW, NONE OF THAT SHOULD BE HAPPENING.

AND SO, IT'S KIND OF A SCAM THAT'S GOING ON, I GUESS.

BUT OTHER THAN THAT, THERE'S NO OFFICIAL I MEAN, WE DON'T HAVE ANY OFFICIAL WORD ON ANYTHING AS FAR AS WE KNOW.

IT'S MOVING ALONG, AND I KNOW THE PREVIOUS SECRETARY OF TRANSPORTATION FOR KANSAS IS NOW INVOLVED WITH THE TRANSPORTATION PART OF IT, WHICH I THINK WAS THE AREA THAT WE WERE WE GOT THE LOWEST SCORE ON.

YEAH. SO THAT'S REALLY GOING TO BE INTERESTING TO SEE.

THAT'S JULIE LORENZ.

YEAH. JULIE LORENZ.

YES. YEAH. GOOD. THANK YOU.

ALL RIGHT. AND THEN EXCITING TO SEE WE'VE GOT SOME MOVEMENT ACROSS THE STREET.

WE'RE GOING TO START DIGGING SOON.

VERY EXCITING NEW HOTELS.

SO THAT'S GREAT. THANK YOU.

THANK YOU SO MUCH FOR YOUR SUPPORT I APPRECIATE IT OKAY.

UP NEXT. GOOD EVENING EVERYBODY ASHLEY SHERROD REPRESENTING THE LENEXA ECONOMIC DEVELOPMENT COUNCIL.

SO GLAD TO BE WITH YOU TONIGHT TO PRESENT THE SECOND OF OUR SEMIANNUAL ECONOMIC DEVELOPMENT REPORTS, WHERE TONIGHT I'D LIKE TO FOCUS ON A MID-YEAR RECAP, AND THEN MAYBE A LOOK AHEAD TO THE SECOND HALF OF 2024.

AND JUST TO BEGIN WITH, A BRIEF MID-YEAR OUTLOOK, I THINK WE ALL RECOGNIZE THE FIRST HALF OF 2024 WAS REALLY EXPECTED TO SEE THE NATIONAL ECONOMY STRUGGLE IN THE WAKE OF THE SERIES OF REALLY AGGRESSIVE INTEREST RATE HIKES BY THE FEDERAL RESERVE.

YOU MIGHT RECALL THERE WERE 11 INCREASES OVER 2022 AND 2023.

BUT BY AND LARGE, THE NATIONAL ECONOMY WAS MUCH MORE RESILIENT THAN WAS EXPECTED.

AND ULTIMATELY, THERE, THE GROSS DOMESTIC PRODUCT HAS BEEN GROWING AT A RATE FASTER THAN PREDICTED IN THE LABOR MARKET, WAS ACTUALLY SHOWING SIGNS OF EASING UP AND MODERATING INTO BETTER BALANCE THAN WHAT WE WERE SEEING THE LAST TIME THAT WE GOT TOGETHER.

SO, IN SHORT, THE FIRST HALF OF THE YEAR, CONSUMERS HAVE BEEN SPENDING AND BUSINESSES HAVE BEEN INVESTING.

OPTIMISTIC SIGNS, ECONOMISTS WOULD SAY, OF A SOFT LANDING IN ACTION AS WE LOOK TO MOVE INTO THE SECOND HALF OF THE YEAR.

BUT IF YOU FOLLOW THE NEWS, YOU MAY HAVE SEEN THE NATIONAL JOBS REPORT THAT WAS RELEASED LAST FRIDAY AFTER I SUBMITTED MY WRITTEN REMARKS FOR TONIGHT.

HAS SOMEWHAT CLOUDED THAT OPTIMISM A LITTLE BIT WITH A GREATER THAN ANTICIPATED SLOWDOWN IN THE LABOR MARKET.

RAISING SOME CONCERN THAT THE US ECONOMY MAY FINALLY BE FALTERING A LITTLE BIT UNDER THE WEIGHT OF THOSE INTEREST RATE HIKES WHICH HAVE BEEN KEPT HIGHER THAN REALLY

[00:10:03]

MOST PEOPLE EXPECTED THEM TO BE ELEVATED THIS LONG AND SOME ARE SAYING MAYBE TOO LONG.

SO THAT'S CALLED INTO QUESTION A LITTLE BIT.

NOW, WHAT THINGS ARE GOING TO LOOK LIKE ECONOMICALLY FOR THE SECOND HALF OF THE YEAR? OBVIOUSLY, A RATE CUT IN SEPTEMBER IS CONSIDERED LIKELY, AND THE JOBS REPORT MADE THAT EVEN MORE LIKELY AND PROBABLY A BIGGER CUT IN SEPTEMBER THAN MAYBE WAS ORIGINALLY BEING LOOKED AT.

BUT RATE CUTS ONCE MADE, THEY'RE STILL GOING TO TAKE SOME TIME TO BE FELT.

THE REASON I MENTION THIS IS BECAUSE IT MATTERS IN THIS CURRENT ENVIRONMENT WHEN BORROWING IS MORE EXPENSIVE, AND COSTS ARE HIGHER AND FINANCING IS HARD TO COME BY.

BUSINESSES AND COMMERCIAL REAL ESTATE INVESTORS ARE BEING INCENTIVIZED TO WAIT FOR MORE FAVORABLE CONDITIONS.

AND INSTEAD OF BUILDING TO FOCUS INSTEAD ON PRESERVING THEIR LIQUIDITY BOTH IN CASE THEY NEED IT FOR FUTURE NEEDS OR THEY HAVE A FUTURE OPPORTUNITY, AND ALSO JUST TO TAKE ADVANTAGE OF HIGHER RETURNS.

AS A RESULT, SOMETHING THAT WE'RE SEEING NATIONWIDE IS THAT NEW CONSTRUCTION PIPELINES ACROSS THE US HAVE BEEN DECLINING FOR ALL COMMERCIAL PROPERTY TYPES THE HIGH CONSTRUCTION COSTS.

AND THAT REFERS NOT ONLY TO MATERIALS WHICH ARE STILL ELEVATED IN MANY CASES, BUT ALSO THE LABOR SIDE OF IT.

AND THE HIGH COST OF CAPITAL AND FINANCING HAVE MANY COMMERCIAL REAL ESTATE OWNERS AND INVESTORS MOSTLY WAITING ON THE SIDELINES.

SO AS THIS FLOW OF NEW INVENTORY IS SLOWING DOWN THEY'RE STARTING TO PREDICT THAT WE MAY SEE TIGHTENING VACANCY RATES AND THEN HIGHER LEASE RATES AS WELL.

THERE'S A COUPLE OF OTHER IMPORTANT TRENDS THAT WE'RE WATCHING THAT COULD INFLUENCE THE ECONOMY AND REAL ESTATE MARKETS IN THE SECOND HALF OF THE YEAR.

ONE, I WOULD JUST MENTION ONGOING WORLD CONFLICTS AND THE UPCOMING US PRESIDENTIAL ELECTION.

CREATE UNCERTAINTY.

THERE'S WARS IN UKRAINE AND THE MIDDLE EAST, TENSIONS WITH CHINA, US POLITICS HAVE REALLY BEEN IN FLUX.

AND I THOUGHT THIS WAS INTERESTING TO LEARN THAT OVER 70 COUNTRIES ARE SET TO HOLD ELECTIONS IN 2024, WHICH IS THE HIGHEST NUMBER EVER.

AND EXPERTS PREDICT GLOBAL UNCERTAINTY IS GOING TO REMAIN HIGH THROUGH THE END OF THE YEAR.

THIS IS IMPORTANT BECAUSE THAT KIND OF UNCERTAINTY CAN LEAD TO MARKET VOLATILITY, CAUSED SUPPLY CHAIN INTERRUPTIONS AND IMPACT, CONSUMER CONFIDENCE AND SPENDING, ALL OF WHICH CAN HAVE AN IMPACT ON THE ECONOMY.

THE LAST ONE I WOULD JUST MENTION IS THAT OUR REGIONAL LABOR MARKET REMAINS TIGHTER THAN THE NATIONAL AVERAGE.

OUR KANSAS CITY REGIONAL UNEMPLOYMENT RATE REMAINS BELOW THE NATIONAL AVERAGE, WHICH AFTER LAST FRIDAY'S JOBS REPORT TICKED UP FROM 4.1% TO 4.3%, WHEREAS IN KANSAS CITY IT CONTINUES TO BE DOWN AROUND 3.2% AND IN JOHNSON COUNTY, CLOSER TO 2.8%.

THERE ARE CONCERNS THAT LACK OF AVAILABLE LABOR.

COULD RESTRICT OUR REGIONAL ECONOMIC GROWTH.

SO THAT'S KIND OF AN OVERVIEW OF THE ECONOMIC PICTURE THAT WE'VE SEEN AND WHAT WE MAY BE LOOKING AT THE SECOND HALF OF THE YEAR.

BUT IN ADDITION TO THAT, I THOUGHT IT MIGHT BE HELPFUL TO HAVE JUST SOME BRIEF INSIGHT INTO SOME OF THE KEY REAL ESTATE MARKETS AND WHAT THOSE LOOK LIKE MID-YEAR.

OVERALL, THE COMMERCIAL REAL ESTATE OUTLOOK IS PROJECTED TO BE STABLE TO POSITIVE, WHICH IS GOOD NEWS.

JUST LOOKING FIRST AT THE INDUSTRIAL MARKET, WHICH IS OF COURSE VERY IMPORTANT TO LENEXA.

THE INDUSTRIAL MARKET IS SOLID.

THERE'S A THRIVING NATIONAL RETAIL SECTOR WHICH RELIES ON MANUFACTURING, WAREHOUSING, DISTRIBUTION AS WELL AS THERE'S BEEN THE RENEWED NATIONAL FOCUS ON RESHORING, WHICH IS REALLY INCREASED DEMAND FOR INDUSTRIAL PROPERTIES.

AND THAT'S EXPECTED TO CONTINUE NATIONALLY THROUGH THE SECOND HALF OF 2024 AND BEYOND.

BUT LIKE ALL THE OTHER COMMERCIAL PROPERTY SECTORS, THE PIPELINE OF INDUSTRIAL PROPERTY CONSTRUCTION HAS BEEN SHRINKING, WHICH IS PROJECTED COULD START TIGHTENING VACANCIES IN THE SECOND HALF OF 2025.

BUT LOOKING CLOSER TO HOME, KANSAS CITY'S INDUSTRIAL MARKET CONTINUES TO BE ROBUST.

WE CONTINUE TO BE ONE OF THE TOP 15 INDUSTRIAL MARKETS IN THE COUNTRY, WHICH IS GREAT BECAUSE ANYBODY WHO'S CONSIDERING A PROJECT LIKE THAT, WE'RE PROBABLY GOING TO BE ON THEIR LIST TO TAKE A LOOK AT.

JUST A COUPLE OF INTERESTING TREND NOTES.

SMALLER SCALE ACTIVITY, ESPECIALLY UNDER 100,000FT², IS AMONG THE MOST IN DEMAND.

AND THAT'S SOMETHING WE'VE GOT SOME OF THAT STOCK.

IT'S OCCUPIED. BUT THAT IS SOME OF AMONGST OUR INDUSTRIAL AND THE NEW INDUSTRIAL CONSTRUCTION HAS BEEN SHIFTING AWAY FROM THE LARGE SCALE SPECULATIVE DEVELOPMENT THAT WE SAW.

YOU KNOW, PEOPLE BUILDING 800,000 SQUARE FOOT SPECULATIVE WAREHOUSES, KIND OF A BUILD IT AND THEY WILL COME AND IT'S TRENDING MUCH MORE TOWARDS BUILD TO SUIT PROJECTS AND SPEC BUILDINGS THAT HAVE SIGNIFICANT PRE-LEASE SPACE IN THEM.

SO NOT LEAVING IT TO CHANCE WHEN THEY'RE BUILDING IT, THEY KNOW WHO'S GOING TO BE IN IT, BY AND LARGE.

[00:15:02]

TURNING TO THE OFFICE MARKET MY REPORT, THE OUTLOOK IS NOT AS ROSY.

CHALLENGES AND QUESTION MARKS CONTINUE WITH OWNERS AND TENANTS STILL LEARNING TO NAVIGATE THIS NEW WORLD AND THE MARKET LITERALLY HAVING TO EVALUATE ITSELF ESSENTIALLY ASSET BY ASSET.

OFFICE VACANCY RATES ARE AT A HISTORIC HIGH.

NATIONALLY, IT ROSE TO 19.6% BY THE END OF 2023, BREAKING THE PREVIOUS RECORD OF 19.3.

IN KANSAS CITY, LOOKING AT A SAMPLING OF TOP REAL ESTATE FIRMS. THEIR OFFICE VACANCIES RANGED IN SECOND QUARTER 2024 BETWEEN 17.5% AND 21.7, WITH THE JOHNSON COUNTY SUBMARKET JUST DOING SLIGHTLY BETTER THAN THAT.

WITH NO WAY TO FORECAST HOW HIGH VACANCIES ULTIMATELY COULD RISE.

REALLY, THE FUTURE OF THE OFFICE MARKET REMAINS VERY UNCLEAR.

LIKE THE OTHER TYPES OF CONSTRUCTION, PIPELINE, OFFICE CONSTRUCTION KEEPS DECLINING.

2024, THAT PIPELINE IS ON TRACK TO HIT ITS LOWEST POINT IN MORE THAN A DECADE.

BUT WHAT'S INTERESTING IS THE UPSIDE OF THE DECLINE IN THE PIPELINE IS THAT SOME BELIEVE THIS DECLINE COULD HELP THE OFFICE MARKET MORE BROADLY, RECOVER BY GIVING EXISTING BUILDINGS TIME TO STABILIZE AND REBUILD THEIR OCCUPANCY WITHOUT SO MUCH COMPETITION FROM NEW CONSTRUCTION.

WHETHER THAT HAPPENS REMAINS TO BE SEEN, BUT THAT IS A THOUGHT THAT'S OUT THERE.

I CAN TELL YOU FROM BOTH DATA AND ANECDOTALLY, TALKING WITH BROKERS, THE FLIGHT TO QUALITY THAT YOU KEEP HEARING ABOUT IS REAL, AND IT'S RESHAPING THE OFFICE MARKET. THEY SAY EMPLOYERS ARE WILLING TO PAY AS MUCH AND EVEN MORE FOR LESS SPACE IN THE MOST ATTRACTIVE BUILDINGS, IN THE MOST ATTRACTIVE LOCATIONS BECAUSE NEW CONSTRUCTION WITH ITS DECLINING PIPELINE, PROBABLY ISN'T GOING TO BE ABLE TO FULLY MEET THE DEMAND FOR QUALITY SPACE.

REALLY, THE DRIVE AND THE OFFICE MARKET IS THERE'S GOING TO BE A REAL IMPETUS TO TRY TO UPGRADE EXISTING BUILDINGS AND ADD THE KINDS OF AMENITIES AND QUALITY THAT PEOPLE ARE LOOKING FOR.

UNFORTUNATELY, THAT MAKES THE FUTURE LESS CLEAR FOR OFFICE STOCK THAT ARE OLDER BUILDINGS THAT ARE NOT SUITABLE FOR IMPROVEMENTS, OR WHO HAVE OWNERS WHO ARE EITHER UNWILLING OR UNABLE TO MAKE THOSE INVESTMENTS, OR, FOR WHATEVER REASON, BUILDINGS THAT ARE JUST OBSOLETE.

WHAT HAPPENS WITH THOSE? THAT'S WHY I SAY IT'S REALLY AN ASSET BY ASSET KIND OF REVIEW IN THE OFFICE MARKET RIGHT NOW.

I ALSO WANTED TO JUST TOUCH BRIEFLY ON THE RETAIL MARKET BECAUSE I THINK THERE'S BEEN A LITTLE BIT OF A NARRATIVE GIVEN THE RISE OF ONLINE SHOPPING THAT TRADITIONAL RETAIL IS IN PERIL.

BUT THE NATIONAL RETAIL SECTOR IS GENERALLY PERFORMING REALLY WELL IN 2024, HELPED BY GAINS IN INCOME AND EMPLOYMENT THAT ENCOURAGE CONSUMER SPENDING.

LOCALLY, OUR KANSAS CITY REAL ESTATE FIRMS REPORT DEMAND FOR RETAIL SPACE AMONG MAIN CORRIDORS THAT HAVE EXCELLENT VISIBILITY AND STRONG TENANCY.

IS HIGH, AND THAT AVAILABILITY IS LIMITED.

AND IT'S BEEN INTERESTING TO ME TO WATCH THE WAYS THAT RETAIL HAS BEEN ADAPTING AND NOT SOLELY IN RESPONSE TO E-COMMERCE, WHICH REMAINS ONLY ABOUT 15% OF RETAIL SALES.

FOR EXAMPLE, A REPORT FROM JP MORGAN NOTES THAT THE RISE OF THE HYBRID WORK SCHEDULE IS INFLUENCING CONSUMERS TO SHOP MUCH CLOSER TO HOME, AND SO THEY'RE FINDING NEIGHBORHOOD AND COMMUNITY SHOPPING DEVELOPMENT AND URBAN AND SUBURBAN RESIDENTIAL AREAS IS CONSISTENTLY PERFORMING WELL, ESPECIALLY IF IT HAS SERVICES LIKE A GROCERY, PERSONAL SERVICES AND CASUAL DINING.

IF THAT SOUNDS FAMILIAR INTERESTINGLY ENOUGH, BIG BOX RETAILERS ARE ALSO CREATING NEW, SMALLER CONCEPT STORES THAT CAN FIT INTO MORE DENSELY POPULATED LOCATIONS.

SO, IT'S JUST INTERESTING TO WATCH ALL THE DIFFERENT WAYS RETAIL IS ADAPTING.

AND IN SHORT, THE RETAIL MARKET IS PROJECTED TO CONTINUE TO PERFORM WELL AS THE MARKET SAYS, IT'S SEEING RETAIL TENANTS RIGHT SIZE THEIR SPACE, REALLY REFINE THEIR SITE SELECTION AND TUNE MORE INTO CONSUMER PREFERENCES.

BUT TURNING TO OUR OWN COMMUNITY, WHICH IS REALLY WHAT WE'RE HERE TO TALK ABOUT TONIGHT, I'M PLEASED TO SAY THAT EVEN IN TODAY'S CHALLENGING ECONOMIC ENVIRONMENT, LENEXA CONTINUES TO GENERATE SIGNIFICANT GROWTH AND INVESTMENT.

LENEXA TOTAL PERMITTED COMMERCIAL CONSTRUCTION.

YEAR TO DATE THROUGH JUNE IS MORE THAN $123 MILLION.

AND IF YOU ADD THE CITY'S NEW RESIDENTIAL DEVELOPMENT THAT CLIMBS TO MORE THAN $271 MILLION YEAR TO DATE THROUGH JUNE, WHICH TOPS THE SAME YEAR OVER YEAR PERIOD IN 2023.

YOU'RE AWARE OF THE NOTABLE COMMERCIAL PROJECTS RELEASED IN THE FIRST HALF OF 2024? JUST MIGHT REMIND YOU OF SOME OF THOSE.

THE ADVENT HEALTH MEDICAL OFFICE BUILDING, THEIR PRAIRIE STAR CAMPUS, DID A REMODEL OF THEIR CARDIO SUITE, THE $27 MILLION DATA BANK ADDITION

[00:20:04]

REMODELS AT THERMO FISHER AND SAM'S CLUB, AND ALSO SIGNIFICANT TENANT FINISHES INCLUDING KIEWIT BUILDING THREE.

BUDDY TECHNOLOGY, THE MINT.

I'VE LISTED THEM ALL OUT THERE FOR YOU.

IT'S NICE TO SEE COMMERCIAL REAL ESTATE OWNERS ARE ALSO INVESTING IN THE FUTURE OF THEIR BUILDINGS.

INCLUDING CROWN FOUR, WESTBROOK RUN, AND THE QUIVIRA SQUARE SHOPPING CENTER.

AND I THINK THIS WAS JUST AN IMPORTANT NOTE THAT I WANTED TO MAKE.

AS WE TALK ABOUT WHAT'S BEEN HAPPENING, DEVELOPMENT IN THE CITY CENTER AREA RECEIVES A LOT OF ATTENTION AND IN MANY CASES, RIGHTLY SO, WITH SOME OF THE FUN, COOL PROJECTS THAT HAVE BEEN HAPPENING HERE.

BUT FOR 2024 CONSTRUCTION, THERE REPRESENTS ABOUT 20% OF LENEXA TOTAL PERMITTED DEVELOPMENT YEAR TO DATE THROUGH JUNE.

IN SHORT, THINGS ARE HAPPENING IN LENEXA AND THEY'RE HAPPENING ALL OVER.

IT'S NOT JUST IN ONE PART OF THE CITY, AND I'D LOVE TO TALK ABOUT THAT WITH PEOPLE.

EAST AND WEST, NORTH AND SOUTH.

THERE'S GOOD THINGS HAPPENING AND WE LOOK FORWARD TO MUCH MORE TO COME.

THE PIPELINE OF PENDING COMMERCIAL BUILDING PERMITS IS MORE THAN 214 MILLION, INCLUDING THE ASEAN RESIDENTS IN PROJECT THAT WE'VE ALL BEEN EAGERLY ANTICIPATING, THAT'S PREPARING TO BREAK GROUND.

IN ADDITION, THERE ARE HUNDREDS OF THOUSANDS OF SQUARE FEET OF NEW DISTRIBUTION AND INDUSTRIAL SPACE WERE APPROVED THIS YEAR FOR THE SANTA FE COMMERCE CENTER, READY TO ATTRACT NEW COMPANIES TO OUR CORPORATE COMMUNITY.

AND I CAN SAY THE FIRST HALF OF THE YEAR HAS SEEN A STEADY FLOW OF NEW ATTRACTION OPPORTUNITIES, AND LENEXA CONTINUES TO BE VERY COMPETITIVE.

WE ARE REGULARLY IN THE HUNT.

OUR REAL ESTATE OPTIONS AND COMMUNITY ARE IN SITE VISITS AND MEETINGS WITH SITE LOCATION CONSULTANTS, AND WE'RE HERE TO HELP THEM EXPERIENCE WHAT LENEXA HAS TO OFFER FIRSTHAND.

LOVE TO GET THEM INTO THE CITY AND SHOW THEM AROUND.

BUT WITH THE NATIONAL ATMOSPHERE THAT HAS CAUSED MANY ATTRACTION PROJECTS TO HIT PAUSE THE TREND IN OUR DEAL FLOW HAS CONTINUED TO SHIFT TOWARD MORE ORGANIC DEVELOPMENT.

OUR LENEXA BUSINESSES OR BUSINESSES THAT ARE ALREADY IN THE REGION WHO ARE READY TO GROW OR RELOCATE, AND THEY'RE LOOKING AT OUR CITY FOR THEIR NEXT OPPORTUNITY.

EVERY WEEK I RECEIVE AND RESPOND TO EMAILS AND PHONE CALLS THAT AFFIRM COMPANIES SEE POTENTIAL AND VALUE IN DOING BUSINESS HERE, AND I WOULD BE REMISS IF I DIDN'T SAY THE CREDIT FOR THAT LIES WITH WHAT YOU, YOUR PREDECESSORS, THE CITY'S PROFESSIONAL STAFF AND DEDICATED PRIVATE SECTOR PARTNERS THAT LONG PREDATE ME HAVE TAKEN DECADES OF VISION AND COMMITMENT TO BUILD.

I'M NOT YET ABLE TO SHARE DETAILS ABOUT MUCH OF THIS ACTIVITY BECAUSE THOSE PROJECTS ARE STILL IN MOTION.

BUT I CAN TELL YOU, WE'RE ADDING JOBS AND INVESTMENT, AND I LOOK FORWARD TO SHARING MORE AT MY NEXT REPORT.

SO IN CONCLUSION, IN THE FIRST HALF OF 2024 HAS BEEN FULL FOCUSED ON PROVIDING SUPPORT TO DEVELOPMENT STAKEHOLDERS, WORKING WITH OUR PARTNERS TO AGGRESSIVELY PURSUE PROJECTS, FACILITATING SITE VISITS, MARKETING OUR COMMUNITY AND ULTIMATELY MY FAVORITE CELEBRATING PROJECTS AND PEOPLE AT RIBBON CUTTINGS AND GROUNDBREAKINGS.

AS I LOOK AHEAD TO THE SECOND HALF OF 2024, WE HAVE ACTIVE PROJECTS, WE'RE WORKING A FLOW OF NEW OPPORTUNITIES AND WE'RE ALWAYS HUSTLING FOR MORE.

IT'S TRULY A PRIVILEGE TO SERVE AS THE FRONT LINE ADVOCATE, SERVING OUR EXISTING BUSINESSES AND DEVELOPMENT COMMUNITY WHILE WORKING ALONGSIDE AN EXCELLENT CITY STAFF TO ATTRACT NEW INVESTMENT, JOBS AND AMENITIES FOR OUR LENEXA CITIZENS.

AS JULIE SAID, WE SINCERELY APPRECIATE YOUR SUPPORT AND CLOSE PARTNERSHIP, AND OUR STAFF WORKS HARD EVERY DAY TO CONTINUE TO EARN IT.

WITH THAT THANK YOU AGAIN, AND I'M HAPPY TO ANSWER ANY QUESTIONS.

QUESTIONS? GREG.

OH, HANG ON ONE SECOND, GREG.

I DON'T HAVE A QUESTION.

AND THIS WILL MAKE YOU CRY.

YOUR DAD WOULD BE REALLY PROUD OF YOU.

THANK YOU VERY MUCH, COUNCILMAN.

DENNY. THAT THAT WARMS ME.

WARMS MY HEART, JOE.

THAT'S A TOUGH ONE TO FOLLOW.

YEAH, WELL, LET'S LEAVE IT AT THAT.

LET'S JUST LEAVE IT AT THAT AND GOOD NIGHT.

JUST CAN YOU GIVE US ANY UPDATE ON HOW PANASONIC IS GOING, IF THERE'S ANY EXPECTED OR UNEXPECTED IMPACTS TO LENEXA SO FAR? AS FAR AS I KNOW, THEY ARE ON SCHEDULE TO GO AHEAD AND OPEN IN 2025.

AND I THINK SOME OF THOSE IMPACTS REMAIN TO BE SEEN.

I THINK THERE'S A LOT OF QUESTION ABOUT WHAT IT MIGHT MEAN IN TERMS OF WORKFORCE, AND THAT'S SOMETHING THAT THEY'RE STARTING TO RAMP UP.

I THINK RIGHT NOW, A LOT OF THEIR WORKFORCE, THEY ARE BRINGING IN FROM OUTSIDE, YOU KNOW, COMING FROM OVERSEAS AND COMING IN.

SO I DON'T THINK THAT WE'VE REALLY HIT IN TERMS OF THE ON THE GROUND.

I DO THINK THAT WILL START RAMPING UP IN THE SECOND HALF OF 2024 AS THEY PREPARE FOR THE OPENING, AND SO THAT'S SOMETHING I'M VERY AWARE OF.

I JUST REMIND PEOPLE I UNDERSTAND IN TERMS OF PEOPLE IN AND PRESSURE ON WAGE THAT IS A 24-HOUR

[00:25:09]

FACILITY. AND SO, THEY WILL BE WORKING THREE SHIFTS.

SO, IT'S NOT LIKE THEY NEED 4000 PEOPLE FROM 9 TO 5.

THERE'S A SECOND AND THIRD SHIFT, AND THERE WILL BE PEOPLE THAT THAT WILL NOT BE ATTRACTIVE TO THEM, OR THEY WON'T BE ABLE TO WORK THAT SECOND AND THIRD.

SO, IT'S SOMETHING I'M WATCHING.

BUT I THINK THOSE IMPACTS REMAIN TO BE SEEN IN TERMS OF WORKFORCE.

AND THAT'S ONE OF THE MAIN THINGS I'M WATCHING.

OBVIOUSLY, IT'S TRANSFORMING DESOTO ALREADY.

AND I THINK WE'RE SEEING SOME OF THAT, YOU KNOW, ON THE HOUSING TOO.

THANK YOU. THANK YOU FOR BRINGING THE GOOD NEWS.

IT'S ALWAYS GREAT TO HEAR.

EXCELLENT. THANK YOU SO MUCH.

I WANT TO RECOGNIZE ONE MORE SET OF GUESTS.

WE HAVE A COUPLE OF SCOUTS WITH US THIS EVENING.

YOU MAY NOT HAVE BEEN BRIEFED THAT YOU GET EMBARRASSED AT LENEXA CITY COUNCIL MEETINGS BY ASKING TO STAND UP.

PLEASE STATE YOUR NAME AND WHAT BADGE YOU'RE WORKING ON THIS EVENING, PLEASE.

EXCELLENT.

WELL, GOOD LUCK WITH THAT.

THANK YOU FOR JOINING US THIS EVENING.

AND FEEL FREE TO SNEAK OUT AT ANY TIME.

[CONSENT AGENDA]

NEXT IS THE CONSENT AGENDA.

WE HAVE FOUR ITEMS ON THE ON TONIGHT'S CONSENT AGENDA.

THE MATTERS LISTED IN THE CONSENT AGENDA ARE ROUTINE AND APPROVED COLLECTIVELY WITH NO SEPARATE DISCUSSION.

ANY ITEM ON THE CONSENT AGENDA MAY BE REMOVED BY A MEMBER OF THE GOVERNING BODY OR THE AUDIENCE.

IN THE EVENT A LINE ITEM IS REMOVED FROM THE CONSENT AGENDA, IT WILL BE PLACED ON THE REGULAR AGENDA.

ANYONE WISH TO REMOVE AN ITEM FOR DISCUSSION? SEEING NONE, I'LL ENTERTAIN A MOTION TO APPROVE ITEMS ONE THROUGH FOUR, ONE THROUGH FOUR ON THE CONSENT AGENDA.

SECOND MOTION BY JOE, SECOND BY CHELSEA.

ALL IN FAVOR? AYE.

CONSENT AGENDA IS APPROVED.

[5. Ordinance approving a Transient Guest Tax Grant for the 3&2 Baseball Club of Johnson County, Inc.]

ONE ITEM THIS EVENING IN NEW BUSINESS.

ITEM FIVE IS AN ORDINANCE APPROVING THE TRANSIENT GUEST TAX GRANT FOR THE THREE AND TWO BASEBALL CLUB OF JOHNSON COUNTY, INCORPORATED.

MAYOR. YES.

THANK YOU. BILL WILL BE ABSTAINING FROM THE DISCUSSION OF THIS ITEM THIS EVENING.

I'VE GOT MYSELF IN A STRANGE PLACE HERE.

GIVE ME JUST A SECOND.

THERE WE GO. IT WAS ONE OF THOSE MOMENTS WHERE YOU HIT THE BUTTON AND YOU'RE NOT SURE IF YOU'RE GOING TO RESTART THE WHOLE SYSTEM OR YOU'RE GOING TO GET TO WHERE YOU WANT TO GO. SO FORTUNATELY, I GOT TO WHERE I WANTED TO GO.

THANK YOU, MAYOR. MEMBERS OF THE COUNCIL, BECKY YOCHAM, CITY MANAGER.

I'M PLEASED TO BE HERE TONIGHT TO RECOMMEND APPROVAL TO YOU, ALL OF A PROPOSED TRANSIENT GUEST TAX GRANT AGREEMENT TO 3&2 BASEBALL OF JOHNSON COUNTY.

OUR TIMING IS GOOD, BECAUSE JULIE GAVE YOU SOME FACTS ABOUT 3&2 BASEBALL DURING HER REPORT.

BUT JUST A FEW MORE LISTED THERE FOR YOUR INFORMATION.

FOUNDED IN 1951 AND LOCATED IN LENEXA SINCE 1964.

THEY MAINTAIN NINE FIELDS WHICH ARE WEST OF THE NATIONAL GUARD ARMORY AT ABOUT 87TH STREET PARKWAY AND RIDGEVIEW, AND ARE ONE OF THE LARGEST ATTRACTIONS IN OUR COMMUNITY.

REALLY THREE AND TWO BASEBALL HAS BEEN A FIXTURE IN LENEXA FOR A LONG TIME.

SERVING OUR KIDS AND THE KIDS FROM THE COUNTY AND THE REGION.

AND IN THAT PROCESS BEING A GOOD CORPORATE CITIZEN AND CORPORATE PARTNER AS WELL.

THEY GENERATE NEARLY 5000 ANNUAL ROOM NIGHTS.

AND HAVE AN ANNUAL ATTENDANCE AT THEIR FACILITIES OF 1.2 MILLION PEOPLE.

IN RECENT YEARS, THEY HAVE EXPERIENCED MORE COMPETITION FROM NEWER PUBLIC AND PRIVATE FACILITIES, AND SO ARE REALLY COMMITTED TO REINVESTING IN THEIR PROPERTY TO MAKE SURE THAT THEY STAY COMPETITIVE AND CONTINUE TO SERVE OUR KIDS AND THE KIDS OF JOHNSON COUNTY, AS THEY HAVE FOR SO MANY YEARS.

SOME OF THOSE THERE ARE MANY PROPOSED IMPROVEMENTS THAT THEY'RE WORKING ON.

AND, AND THERE'S A REPRESENTATIVE FROM THREE AND TWO WHO WILL SPEAK TO YOU NEXT THAT MIGHT GO INTO THAT A LITTLE BIT MORE DETAIL.

BUT FOR OUR PURPOSES, THE PROPOSED IMPROVEMENTS THAT WE ARE INTERESTED IN ASSISTING WITH IS THE INSTALLATION OF ARTIFICIAL FIELD TURF ON SIX OF THE FIELDS HERE IN LENEXA. THE BENEFITS OF THESE IMPROVEMENTS ARE TO DECREASE WEATHER CANCELLATIONS, REDUCE THEIR MAINTENANCE COSTS PROVIDE A HIGHER QUALITY PLAYING FIELD FOR THEIR CUSTOMERS, AND MAKE THEM A MORE DESIRABLE LOCATION TO HOST TOURNAMENTS AND GAMES, WHICH ULTIMATELY DRAWS MORE PEOPLE TO LENEXA AND IS GOOD FOR THE COMMUNITY AS WELL. AS, YOU KNOW, WE COLLECT A TRANSIENT GUEST TAX OF 8% ON ALL HOTEL AND MOTEL ROOM NIGHTS IN OUR COMMUNITY.

[00:30:01]

THOSE FUNDS ARE RESTRICTED FUNDS.

SO, BY CITY CODE, AS YOU CAN SEE TRANSIENT GUEST TAX MAY ONLY BE EXPENDED FOR PURPOSES THAT SUPPORT CONVENTIONS AND TOURISM AND ACTIVITIES AND ORGANIZATIONS WHICH ENCOURAGE INCREASED HOTEL OCCUPANCY AND ECONOMIC DEVELOPMENT.

IN MY OPINION, THE MISSION OF THREE AND TWO BASEBALL FITS REALLY VERY SQUARELY RIGHT INTO THE PURPOSES OF OUR TRANSIENT GUEST TAX FUNDS.

AND WE'RE VERY FORTUNATE BECAUSE AS OF JUNE 30TH OF THIS YEAR, WE HAD A HEALTHY RESERVE BALANCE OF $2.8 MILLION IN OUR TOURISM AND CONVENTION FUND, WHICH IS FAR IN EXCESS OF THE RESERVE POLICY TARGET FOR THIS FUND, WHICH IS ACTUALLY MORE IN THE NEIGHBORHOOD OF $100,000.

SO WE'RE DOING WELL THERE.

AND THESE ARE RESTRICTED FUNDS THAT WE CAN ONLY USE FOR THESE VERY NARROW PURPOSES.

SO WE'VE BEEN WORKING WITH THREE AND TWO TO DEVELOP A GRANT AGREEMENT BY WHICH THE CITY WOULD GRANT A TOTAL OF $1.4 MILLION IN TRANSIENT GAS TAX FUNDS TWO, THREE, AND TWO OVER FIVE YEARS IN EQUAL INSTALLMENTS OF $280,000.

THE FIRST PAYMENT WOULD BE MADE WITHIN SIX MONTHS FOLLOWING COMPLETION OF THE FIELD TURF PROJECT THAT WE DISCUSSED A MOMENT AGO, AND THEN ON OR ABOUT EACH ANNIVERSARY THEREAFTER FOR THE NEXT FOUR YEARS AFTER THAT.

THE PROJECT WOULD BE COMPLETED NO LATER THAN DECEMBER 31ST OF 2025.

I THINK MR. CHALKE WILL TELL YOU THAT THEY WILL PLAN TO BE COMPLETED SOONER THAN THAT.

AND THE OTHER CONDITION FOR RECEIVING THIS GRANT EACH YEAR IS THAT THREE AND TWO MUST STILL BE OPEN AND OPERATING, MUST STILL BE A GOING CONCERN IN OUR COMMUNITY AND FULFILLING THEIR MISSION HERE. SO WE'RE REALLY PLEASED WITH THIS.

LIKE I SAID, THREE AND TWO HAS BEEN A GREAT PARTNER TO THE CITY AND WE FEEL VERY GOOD ABOUT THE USE OF THE TRANSIENT GUEST TAX FUNDS FOR THIS PURPOSE.

SO, WE'RE RECOMMENDING APPROVAL OF THE TRANSIENT GUEST TAX AGREEMENT, WHICH YOU MUST DO BY ORDINANCE AS INCLUDED IN YOUR PACKET.

JEFF CHALK IS THE EXECUTIVE DIRECTOR OF 3&2, AND HE'S HERE THIS EVENING, LIKE TO SAY A FEW WORDS.

AND WHEN HE'S DONE, MYSELF AND SHAWN WOULD BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE.

GOOD EVENING. HI THERE.

HOW ARE YOU? WONDERFUL.

THANK YOU. GOOD, BECKY, THANKS FOR THE SETUP THERE.

APPRECIATE IT. MAYOR SAYERS AND CITY COUNCIL MEMBERS.

IT'S A PLEASURE TO BE HERE TO TALK ABOUT THIS TONIGHT.

WE REALLY APPRECIATE THE OPPORTUNITY TO TALK ABOUT THIS PROJECT THAT WILL REALLY TRANSFORM THREE AND TWO ORGANIZATION WITH THE TURF.

AS BECKY MENTIONED, THE GROWING COMPETITION WITH OTHER FACILITIES THAT ARE EITHER MUNICIPALLY OWNED OR TAX SUPPORTED THAT WE GO UP AGAINST, OR PRIVATE INVESTORS AND OTHER FACILITIES AROUND KANSAS CITY ARE REALLY STARTING TO TAKE PART OF OUR MARKET SHARE, AND PEOPLE OUT OF THE CITY OF LENEXA TO SOME OTHER SURROUNDING COMMUNITIES.

AND SO THIS PROJECT WOULD BE REESTABLISH THE DESIRE OF FOLKS WHO, PARTICULARLY IN THE SPRING SEASONS WHEN WEATHER BECOMES A FACTOR AND PEOPLE ARE OPTING TO GO TO TURF FACILITIES VERSUS NATURAL FACILITIES LIKE WHAT WE HAVE.

WE'RE STARTING TO SEE A LITTLE BIT OF THOSE SLIP AWAY IN THE SPRING AND THE LATE FALL COME BACK IN THE.

BUT THEY DO RETURN IN LATER MAY, JUNE AND JULY.

SO TRYING TO REBUILD THAT.

SHE MADE A LOT OF MY POINTS FOR ME ALREADY, BUT WE HAVE YOU KNOW, MORE THAN 500 LEAGUE TEAMS PARTICIPATE AT 3&2 IN THE SPRING, SUMMER AND FALL SEASONS WITH MORE THAN 2500 TEAMS THAT PLAY ON WEEKENDS WITH US OVER ABOUT 27 TO 29 WEEKENDS THROUGHOUT THE SUMMER AND FALL.

SHE ALSO MENTIONED THAT, YOU KNOW, WE'VE GOT MORE THAN 1.2 MILLION VISITORS THAT COME INTO BOTH OF OUR FACILITIES DURING OUR SEASON.

THE AS BECKY ALSO MENTIONED, THIS WOULD COVER SIX OF OUR NINE FIELDS.

I'M ALSO EAGER TO LET YOU KNOW, TOO, THAT THE SHAWNEE MISSION SCHOOL DISTRICT HAS PLEDGED SUPPORT OR HAS PLEDGED FUNDING TO TAKE CARE OF THE THREE OTHER FIELDS TO FOR THE TOTAL OF NINE THAT ARE AT OUR AT OUR LENEXA COMPLEX, SHAWNEE MISSION SCHOOL DISTRICT, AND 3&2 HAS HAD A PARTNERSHIP SINCE BACK TO 1973.

AND THEY WOULD LIKE TO ALSO TURF THE INFIELDS THAT THE HIGH SCHOOL KIDS PLAY ON IN THE SPRING SEASON AS WELL.

SO THAT'LL REALLY THIS WILL REALLY SIGNIFICANTLY TRANSFORM THE LENEXA COMPLEX FOR NOT ONLY TOURNAMENT OPERATIONS, BUT ALSO THE OUR LEAGUE RECREATIONAL YOUTH FROM T-BALL ALL THE WAY THROUGH HIGH SCHOOL.

SO THAT'S WHAT I GOT.

THANK YOU SO MUCH. THANK YOU VERY KINDLY.

QUESTIONS FOR THE TEAM MARK.

MY FIRST QUESTION WAS GOING TO BE THE OTHER THREE FIELDS.

WHAT IS THE FIELD OUT WEST?

[00:35:03]

IS THERE ANY IS THAT WITH THE DE SOTO SCHOOL DISTRICT? IS THERE PARTNERSHIP OUT THERE? WE DO HAVE A PARTNERSHIP WITH THE DE SOTO SCHOOL DISTRICT.

THAT FACILITY SITS IN THE CITY OF SHAWNEE, AND WE HAVE 18 FIELDS AT THAT LOCATION.

SHAWNEE. THAT'S RIGHT. YEAH. OTHER QUESTIONS? CHRIS. YEAH. HI.

PROJECTED INCREASE IN THE NUMBER OF VISITORS.

YOU KNOW, WHEN YOU MAKE THESE IMPROVEMENTS, YOU KNOW, YOU GET 1.2 THIS, YOU GET 1.2 MILLION VISITORS.

HOW WHAT PROJECTED INCREASE? YOU KNOW, I WOULD PROBABLY PROJECT HALF AS MUCH AGAIN WITH A NUMBER OF TEAMS THAT WERE NOT GETTING IN THE SPRING AGAIN AND EXTENDING THE SEASON THROUGH YOU KNOW, PROBABLY, YOU KNOW, ANOTHER 3 OR 400,000.

WE'VE GOT THAT DATA FROM WE RECENTLY WERE GIVEN SOME LED SCOREBOARDS THAT WE CAN PRODUCE ADS ON BETWEEN INNINGS AND WHATNOT.

AND THE GROUP THAT GAVE THOSE TO US DID SOME GEOFENCING AND ANALYTICS OF ATTENDANCE AND WHATNOT AND POINTED TO THOSE FIGURES.

SO IT'LL BE INTERESTING TO SEE WHAT THAT WHAT THAT BEARS.

OKAY. AND HOTEL NIGHTS OR OCCUPANCY.

ANY PROJECTIONS ON THAT? NOT REALLY AT THIS POINT IN TIME, USUALLY BECAUSE IN THE SPRINGTIME THE MOST OF THOSE MOST OF THE TEAMS ARE COMING FROM REGIONAL, NOT SO MUCH FURTHER AWAY.

BUT AS WE GET INTO THE, INTO THE EARLIER MAY TIME PERIOD AND ON THROUGH, THEN YOU'LL START TO SEE THOSE CREEP BACK UP AGAIN, LIKE SHE SAID, 5000 ROOMS THERE AND SOME OF THOSE, A LOT OF THOSE ARE GO UNREPORTED TO US.

WE WORK WITH A COUPLE OF SERVICES THAT HELP USHER TEAMS INTO THE HOTELS, BUT A LOT OF THOSE OTHER TEAMS OPT TO NOT USE THAT SERVICE AND JUST GO GET THEM ON THEIR OWN.

SO WE DON'T REALLY KNOW WHAT THAT REPORTED REPORTABLE NUMBER WOULD BE.

OKAY. THANK YOU.

YES, SIR. OBVIOUSLY, WE THINK IT'S A WONDERFUL USE TO BRING YOU BACK INTO COMPETITIVE.

CERTAINLY A LONG TIME, YOU KNOW, TRUSTED FACILITY IN LENEXA.

WE'RE HAPPY TO HELP TO BRING YOU INTO YOUR NEXT GENERATION.

VERY GOOD. THANK YOU. THANK YOU FOR BEING HERE.

OKAY. WITH THAT.

NEED A MOTION TO APPROVE THE ORDINANCE APPROVING THE TRANSIENT GUEST TAX GRANT FOR THREE AND TWO.

BASEBALL CLUB OF JOHNSON COUNTY.

SECOND MOTION BY CHELSEA.

SECOND BY MELANIE. ALL IN FAVOR? AYE. ORDINANCE PASSES.

THANK YOU. ANY COUNCIL MEMBER REPORTS THIS EVENING?

[COUNCILMEMBER REPORTS]

NO. OKAY.

MARK? YES, PLEASE.

I JUST WANTED TO COMMENT ABOUT 3&2 AND BEING IN THIS AREA FOR SO LONG, I HAD OLDER BROTHERS PLAYED OUT THERE AND IT'S BEEN PROBABLY SIX YEARS OLD, 60 YEARS AGO SINCE THEN.

BUT AND I REMEMBER PLAYING OUT THERE, MY SONS REMEMBER PLAYING OUT THERE AND I HOPE TO HAVE MY GRANDKIDS PLAYING OUT THERE.

THANK YOU. EXCELLENT.

THAT'S THE PLAN. OKAY.

[STAFF REPORTS]

WE'VE GOT A COUPLE.

JUST ONE STAFF REPORT THIS EVENING.

NATE WITH THE QUARTERLY FINANCIAL REPORT.

THANKS, MAYOR. WHILE, NATE'S MAKING HIS WAY UP AND PULLING UP HIS REPORT.

I DID WANT TO JUST GIVE YOU ONE OTHER REAL QUICK REMINDER THAT WE WILL HAVE YOUR BUS TOUR NEXT TUESDAY.

WE'LL MEET AT THE JUSTICE CENTER AT 3 P.M.

TO BOARD THE BUS.

AND WE'LL CONCLUDE BACK AT THE JUSTICE CENTER WITH A QUICK TOUR AND DINNER TOGETHER NEXT TUESDAY.

SO, WE LOOK FORWARD TO THAT.

GOOD EVENING, MAYOR AND COUNCIL.

NATE BLOOM WITH THE FINANCE DEPARTMENT.

AS THE MAYOR MENTIONED, I HAVE A SECOND QUARTER FINANCIAL REPORT FOR YOU.

ALTHOUGH WE HEARD A WONDERFUL ECONOMIC UPDATE, SO I CAN CUT OUT HALF OF MY REPORT.

SO, I'LL BE BRIEF TONIGHT.

FOR THOSE OF YOU THAT ARE NEW TO THIS REPORT, IT IS UNAUDITED AND PRESENTED ON A CASH BASIS.

WE HAVE FIVE KEY INDICATOR AREAS LISTED THERE ON THE SLIDE.

WE ALSO HAVE A RATING SCALE THAT'S COLOR CODED.

GREEN OBVIOUSLY MEANS GOOD.

WE DO HAVE A FEW YELLOW IN THIS REPORT.

IN TOTAL, OUR KEY REVENUE SOURCES HAVE INCREASED 1.2 MILLION, OR 2% COMPARED TO 2023.

AND ALL OF OUR EXPENDITURES ARE WITHIN BUDGET FOR FISCAL YEAR 24.

AND YOU CAN SEE THE YELLOW HIGHLIGHTS THERE.

THEY CENTER AROUND THE COUNTYWIDE SALES TAX, THE CITY'S PORTION OF THE COUNTYWIDE SALES TAX.

THERE ARE CITIES WITHIN JOHNSON COUNTY THAT HAVE SEEN 5 TO 6% DECREASE IN THEIR SALES TAX REVENUE.

AND SINCE IT IS A COUNTYWIDE SALES TAX THAT IMPACTS OUR REVENUE AS WELL.

SO, YOU CAN SEE THE COUNTY'S SALES TAX IS DOWN 3% AND THE USE TAX IS DOWN 2%.

POSITIVE NEWS.

THE CITY'S SALES TAX IS PROJECTED AS TRENDING POSITIVE.

WE'RE JUST A LITTLE BIT LESS THAN A 1% DECREASE FOR THE YEAR.

JULY CAME IN REALLY GOOD.

SO, WE'RE ACTUALLY POSITIVE ON THE CITY SIDE.

[00:40:03]

AND THEN COMPENSATING USE TAX IS NOW POSITIVE THROUGH JUNE FOR THE FIRST TIME THIS YEAR.

WE'RE ALSO SEEING SOME DECREASES IN FRANCHISE TAXES FOR ELECTRIC.

EVERGY DID CUT RATES IN THE METRO AREA.

AND THEN WE'RE SEEING SOME DECREASE IN THE USAGE.

SO THAT IS DOWN 8% OVER 2023.

AND THEN FRANCHISE FEES FOR GAS HUGE DECREASE LAST YEAR I LOOKED BACK AT LAST YEAR IN JUNE WE WERE UP 31%.

SO, A HUGE INCREASE LAST YEAR WE ARE DOWN 25%.

THROUGH THE FIRST HALF OF THIS YEAR WE ARE KEEPING AN EYE ON THAT.

EVEN THOUGH WE HAD THE LARGE INCREASE LAST YEAR, WE HAVE BEEN CONSERVATIVE IN OUR REVENUE ESTIMATING, SO WE ARE PROJECTED TO BE RIGHT AROUND BUDGET.

YOU CAN SEE THE DOLLAR VALUE FOR EACH OF THOSE CHANGES IN OUR KEY REVENUE SOURCES.

AND I'LL JUST HIGHLIGHT THE FRANCHISE TAX REVENUES FOR GAS THERE.

WE ARE DOWN $375,000.

SO A LITTLE BIT OF AN IMPACT TO OUR BUDGET FOR FISCAL YEAR 24.

REALLY NOTHING TO REPORT ON THE EXPENDITURE SIDE.

WE'RE STILL WELL WITHIN BUDGET AND ALL OF OUR FUNDS.

THERE'S REALLY NO ABNORMAL ACTIVITY FOR THE FIRST HALF OF THE YEAR.

OUR RESERVE POLICY INDICATORS, YOU CAN SEE GENERAL FUNDS AT 53%.

DEBT SERVICE FUND IS 112%.

JUST A REMINDER.

THIS IS THE PEAK OF OUR FUND BALANCE FOR THE YEAR BECAUSE WE'VE RECEIVED THE SECOND HALF OF JOHNSON COUNTY'S DISTRIBUTION FOR OUR PROPERTY TAX REVENUE.

AND THAT WILL BE SPENT DOWN OVER THE NEXT SIX MONTHS.

REC CENTER FUND. WE HAVE STARTED PURCHASING SOME EQUIPMENT OVER THERE.

I THINK IT WAS OVER 300,000.

SO THAT WILL BE COMING OUT OF THAT RESERVE NUMBER AS WELL.

SO YOU'LL SEE THAT GO DOWN.

BECKY'S TALKED A LITTLE BIT ABOUT THE TOURISM AND CONVENTION FUND.

ONE OTHER ITEM THAT'S NOT ON THIS SLIDE, BUT I WANTED TO BRING TO YOUR ATTENTION.

IT IS IN YOUR AGENDA PACKET, AN EXHIBIT E RESERVE BALANCES BY FUND.

YOU'LL NOTICE THE RISK MANAGEMENT FUND.

AS OF 630, THE BALANCE IS JUST OVER 900,000.

OUR MINIMUM RESERVE TARGET IS 1.4 MILLION.

CALCULATED IN THAT FUND. WE HAVE SOME ONGOING LITIGATION THAT WE'VE MADE SOME PAYMENTS OUT OF THE RISK MANAGEMENT FUND FOUR.

WE WILL BE RECEIVING SOME REVENUE IN THAT FUND TO BRING THAT BALANCE UP.

BUT I DO ANTICIPATE THAT FINANCE WILL BE MAKING A TRANSFER FROM THE GENERAL FUND TO THE RISK MANAGEMENT FUND OF ABOUT 250,000 TO BRING THAT BALANCE UP IN 2024.

SO, I WANTED TO MAKE THE COUNCIL AWARE OF THAT TRANSFER.

DEBT MANAGEMENT INDICATORS REALLY NO CHANGE.

WE WILL BE ISSUING SOME BONDS LATER THIS FALL, BUT THEY'LL HAVE A MINIMUM OR MINIMAL IMPACT TO BOTH OF THESE RATIOS.

I EXPECT THEM TO BE GREEN THROUGHOUT THE REMAINDER OF THE YEAR.

OUR INVESTMENT INDICATORS AS OF 6:30, BOTH THE SHORT TERM AND LONG-TERM PORTFOLIOS WERE GETTING JUST OVER 5% YIELD.

AS YOU KNOW, THIS CHANGES DAILY.

SO IT'S A SNAPSHOT IN TIME AS OF 6:30, WE'RE SLIGHTLY BEHIND THE BENCHMARK.

REMEMBER IN THE FIRST QUARTER, WE WERE AHEAD OF THE BENCHMARK.

BUT WE'RE TRACKING PRETTY CLOSE.

AND THEN ASHLEY SHARED, A LOT OF THESE ECONOMIC INDICATORS ARE ALL GREEN.

WE ARE AHEAD OF WHERE WE WERE IN 2023 AND THE AVERAGE FOR THE LAST FOUR YEARS.

IN EACH OF THOSE INDICATOR AREAS, IF YOU REMEMBER, LAST YEAR WE HAD RECORD REVENUE FROM BUILDING PERMITS, AND WE'RE EXCEEDING THAT BY 80,000 SO FAR THIS YEAR.

SO LOOKING PRETTY GOOD.

TAKE THAT BEN.

I KNOW I WENT THROUGH THAT PRETTY FAST.

IS THERE ANY QUESTIONS.

ALL RIGHT. ANY QUESTIONS FOR NATE? OKAY. THANK YOU FOR THE GOOD NEWS.

THAT WILL CONCLUDE THE RECORDED PORTION OF THIS EVENING'S AGENDA.

NEXT.

* This transcript was compiled from uncorrected Closed Captioning.