Olathe — Oz Entertainment Co. wants more flexibility in how it develops the theme park, but some county officials want strict regulations to protect surrounding property.
Local zoning regulations in Johnson County could become a stumbling block in developing the proposed Wonderful World of Oz theme park.
Johnson County commissioners spent about 90 minutes Thursday discussing a set of draft regulations for conditional-use permits that would apply to resort and entertainment developments.
Although the Oz Entertainment Co. suggested the draft regulations were too strict and could interfere with the financial feasibility of the project, at least two commissioners said they wanted the regulations written as tightly as possible.
"These are our proposed (conditional-use permit) regulations, not Oz's proposed regulations," Commissioner Johnna Lingle said.
Thursday's discussion centered around two issues. One was a provision that only allows a conditional-use permit to be issued for up to 10 years, unless the county commission agrees to a longer duration. The other involves how tightly the county should write regulations, especially about limits on lighting and noise that might disturb surrounding residents.
Ken Becker of Salomon Smith Barney, the bond underwriter for the project, said he was concerned the regulations only allow for a conditional-use permit to be issued for up to 10 years because the company hopes to finance the project with 30-year sales tax and property tax bonds.
"The length of this period would cause a serious problem for the financing of the project," Becker wrote. "Any investor putting funds at risk for 30 years will want to know that the underlying asset will be revenue producing for this period of time and not subject to having the conditional-use permit renewed within 10 years."
Don Jarrett, chief counsel for the county, said the county could grant Oz a permit for longer than 10 years, but he advised that under no circumstances should it issue a permit for longer than 30 years.
Most of Thursday's work session focused on proposed limits on noise and lighting.
Mike White, a partner in the law firm of Polsinelli White Vardeman & Shalton, which represents Oz in the real estate deal, sent a letter to commissioners arguing that the draft rules were written for the same standard that would apply to typical urban commercial districts, where the goal is to protect adjoining property owners from nuisances.
But the Oz theme park, he said, would be located far outside the urbanized portions of Johnson County -- at the former Sunflower Army Ammunition Plant near Desoto.
At least one commissioner, Doug Wood, appeared ready to relax the proposed standards to give Oz Entertainment more flexibility in developing the theme park, while Commission Chairman George Gross gave little indication of his preferences.
Depending on which way Gross leans, the issue could set up an even split on the commission because the fifth commissioner, Gary Anderson, has abstained on all votes and discussions related to Oz.
Anderson is an attorney with Gilmore and Bell, which is serving as bond counsel to the Kansas Development Finance Authority for the Oz project.
The KDFA board is scheduled to get its own presentation this morning on how Oz intends to finance the development.
Oz is asking the state to issue $272 million in bonds for the project that would be repaid with the new sales and property tax revenues that would be generated in the redevelopment district.
-- Peter Hancock's phone message number is 832-7144. His e-mail address is phancock@ljworld.com.
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