Kansas has paid millions to acquire properties in path of I-70 viaduct

The Kansas Department of Transportation paid nearly $4.4 million and nearly $4 million, respectively, to buy properties formerly owned by Let’s Help Inc. and TFI LLC in the future path of the Polk-Quincy Viaduct.

Those amounts were well above the appraisal values Shawnee County determined of $1,698,400 for the former Let’s Help property at 200 S. Kansas Ave. and $583,000 for the former TFI property at 129 S.E. Quincy, said David Hale, KDOT’s communications coordinator.

But those properties “had unique considerations that other properties may not, and thus they cost more to acquire,” Hale told The Capital-Journal on Friday.

KDOT still needs to acquire four buildings in viaduct’s path

KDOT provided The Capital-Journal contracts free of charge sharing details of its purchases of the two properties. KDOT since early last year has been acquiring properties in the future path of the viaduct, which runs through downtown Topeka.

“KDOT makes every effort to negotiate these items fairly with respect to property owners and the Kansas taxpayers,” Hale said. “If we cannot negotiate a price, then we proceed to eminent domain and allow court-appointed appraisers from the community to determine the appropriate price.”

The department has reached settlements to acquire 28 of the 36 tracts needed for the viaduct project, Hale said.

KDOT needs four remaining buildings. Shawnee County Appraiser’s Office records show it has yet to finalize agreements with the following owners:

• First Avenue Leasing LLC, 101 S.W. Tyler.

• Team Kansas Inc., 116 S. Kansas Ave.

• Ryder Truck Rental, 600 S.W. 2nd and 631 S.W. 1st.

Here’s how much KDOT paid for two key properties

The contracts KDOT released to The Capital-Journal show it agreed to pay:

• $4,395,553 to the longtime Topeka charity Let’s Help Inc. for property it owned at 200 S. Kansas Ave., under terms of a contract dated Nov. 30, 2022.

• $3,975,702.39 to TFI, a foundry and iron business, for property it owned at 129 S.E. Quincy under terms of a contract dated May 31.

Why does KDOT sometimes pay more than appraisal value?

Hale explained why KDOT paid Let’s Help and TFI considerably more than their appraisal values.

Appraisal determines the property’s “fair market value,” which is what a well-informed buyer and a well-informed seller would accept at an open market, he said.

When a KDOT project impacts property owners, it is KDOT’s responsibility to compensate them fairly for the value of the buildings and property involved, as well as any “quantifiable impacts to the owners, their business and/or the property that will be remaining,” Hale said.

“We also consider any other compensation due to the property owner because of the impact the project has on the property,” he said.

Why did TFI get almost $4 million when it was displaced?

KDOT initially offered $1.18 million for its building and property to TFI but ended up paying $3,975,702.39, Hale said.

“TFI had extra high garage doors, special ventilation, compressed air pipes, a mono-rail capable of 1-ton lifts and an air compression room, among others,” he said. “TFI wanted to make sure the location they moved to would keep their campus as intact as possible. This new location was partially unfinished and so part of the compensation was bringing the new location up to code.”

The total cost KDOT paid to lessen the impacts of the Polk-Quincy project on TFI totaled $2,345,702.39, Hale said.

“An additional $450,000 was paid because the acquired property is no longer a part of a whole property and the remaining portion of the property has been devalued,” he said.

KDOT also paid the $1.18 million it had offered for the building and property, the purchase contract said.

It indicated TFI’s new site was at 200 S.W. Jackson.

Why did Let’s Help get almost $4.4 million when it was displaced?

KDOT originally offered Let’s Help $2,099,000 for the building and property it sits on, Hale said.

In assessing what would be fair compensation for Let’s Help, KDOT took into consideration the charity’s needs regarding dry food storage, security systems, fire suppression systems, classrooms, clothing storage and commercial laundry, as well as a dining hall and office space, Hale said.

“Certain items like kitchen equipment, commercial refrigeration and freezer units were not considered personal property and became items that were negotiated,” he said. “Let’s Help’s original location contained warehouse space for forklifts, loading docks for donations, deliveries and pickups. The new location would need them as well.”

Jennifer Loeffler, executive director of Let’s Help, a Topeka charity since 1969, announced plans last January to renovate and then relocate in early 2024 to a building at 245 S.W. MacVicar Ave., which was vacant at the time.

“The new location and building will allow Let’s Help to continue to serve the citizens of the community with modernized spaces, greater flexibility and improved energy efficiency,” Loeffler said that day.

The total cost KDOT paid to lessen the impacts of the Polk-Quincy project on Let’s Help totaled $2,296,553, Hale said.

“This, combined with the $2,099,000 offer for new land and building, put our total to $4,395,553, which is the total cost KDOT paid for Let’s Help’s property,” he said.

What did KDOT pay for some other key properties?

Other contracts obtained by The Capital-Journal show KDOT paid the following:

• $1,298,305 to Shawnee Woodwork Inc., which owned properties containing buildings in the 100 block of S.W. Van Buren and 100 block of S.W. Harrison. Those buildings have since been razed.

• $1,100,000 to Paul Properties, which owned property not containing buildings in the 100 block of S. Kansas Avenue.

• $900,000 to the Steven J. Mohan Trust, which owned property containing a building at 121 S. Kansas Ave. That building has since been razed

• $650,000 to Piping Contractors of Kansas Inc., which owned property containing a building at 115 S.W. Jackson. That building has since been razed.

Some property owners being displaced say KDOT isn’t being fair

KDOT hasn’t been offering fair amounts for properties in the viaduct’s future path, The Capital-Journal was told June 1 by Tom Lemon, an attorney representing Team Kansas, and Eric Duncan, chief financial officer of Torgeson Electric, which leases properties owned by First Avenue Leasing in the future viaduct’s path.

KDOT still hasn’t reached agreements to acquire the Team Kansas and First Avenue Leasing properties.

The Capital-Journal also made contact June 1 with Jon Haas, president of the HME Group of Cos., of which TFI is a member. Haas had signed the contract to sell with KDOT the previous day.

“The KDOT representatives have been good to work with and have gone the extra mile to make sure we are able to maintain our business operations in downtown Topeka while making room for the new viaduct,” he said.

More: Commercial properties in viaduct project’s path face unfriendly relocation costs in ‘seller’s market’

What will the viaduct project do?

The viaduct project seeks to improve safety by replacing and flattening out Interstate 70’s sharp curve near S.E. 3rd Street by moving to the north much of the highway that currently runs to the west of that curve.

The curve was created when KDOT in 1963 built the viaduct, an aging, elevated four-lane segment of I-70 that runs between S.W. Polk and S.E. Quincy streets.

Overall costs are estimated to total about $300 million for the project, with Topeka’s city government paying about $27 million of that.

Actual replacement of the viaduct is set to begin in 2025.

Contact Tim Hrenchir at threnchir@gannett.com or 785-213-5934.

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