Based on available information, there is no explicit agreement that fully releases Jim Klausman or his company, Klaton Real Estate, from the responsibility to pay taxes on properties in the Lauren’s Bay subdivision in Topeka, Kansas. Instead, the records show negotiations, partial payments, and tax incentive arrangements that address back taxes and special assessments for specific lots, while Klausman remains liable for significant outstanding amounts on other properties. Below is a detailed summary of the relevant agreements and their implications, with citations to the sources.
- Negotiations and Partial Payment Agreements for 16 Lots:
- Agreement Details: In 2025, the Topeka City Council approved an agreement with Klausman for 16 lots in Lauren’s Bay. Klausman agreed to pay $2.25 per square foot, totaling $525,333, of which $102,000 was applied to outstanding special assessments. This payment exceeded the $423,000 in past-due special assessments for these lots, and Klausman also committed to paying back taxes on these properties.
- Tax Incentives: As part of this agreement, the city approved the creation of a Community Improvement District (CID) and pursued a Reinvestment Housing Incentive District (RHID) for these 16 lots. The CID spreads out the cost of special assessments over 20 years, reducing the monthly cost from approximately $300 to $185 per lot. This arrangement was designed to make the lots more marketable by lowering the financial burden, not to exempt Klausman from tax responsibilities.
- Implication: This agreement does not release Klausman from tax obligations but restructures them to facilitate payment and development. Klausman remains responsible for both the agreed payments and ongoing taxes.
- Outstanding Taxes and Assessments on Other Lots:
- Klausman, through various companies, owns 140 lots in Lauren’s Bay, with the agreements above covering only 16. For the remaining 124 lots, he owes $7,274,816 in general back taxes, penalties, and uncollected special assessments, plus $3,617,629 in future special assessments.
- There is no evidence of any agreement waiving these obligations. Instead, the city has extended negotiation deadlines (e.g., to March 31, 2025) to reach a resolution. If no agreement is reached, Klausman must donate the lots to the city’s land bank by June 30, 2025.
- CoreFirst Bank & Trust’s Involvement:
- CoreFirst Bank & Trust is mentioned as owning 68 parcels in Lauren’s Bay in 2015, but there is no direct evidence linking the bank to any specific agreement with Klausman or the city that exempts him from tax responsibilities.
- CoreFirst has been involved in other Topeka projects, such as taking ownership of Heartland Park Topeka and owning a branch in the Kansan Towers building (purchased by Klausman’s group in 2015). However, these activities do not indicate a tax exemption deal for Lauren’s Bay.
- No records show CoreFirst acting as a guarantor or intermediary in Klausman’s tax negotiations with the city for Lauren’s Bay.
- City Council Discussions and Concerns:
- Council members, notably Christina Valdivia-Alcalá, raised concerns about perceived preferential treatment for Klausman due to his influence, but the approved agreements still require him to pay significant sums.
- The city council has emphasized that ad valorem property taxes (which Klausman owes to multiple entities, not just the city) cannot be waived under state law, ensuring he remains liable for these taxes.
- No Exemption Found: The agreements with Klausman focus on restructuring payments and offering tax incentives to encourage development, not absolving him of tax responsibilities. The significant outstanding debt on the 124 lots and the requirement to pay back taxes on the 16 lots contradict any claim of a full exemption.
- CoreFirst’s Role Unclear: While CoreFirst has a historical stake in Lauren’s Bay, no source confirms their involvement in a deal that lets Klausman avoid taxes. Their ownership of parcels in 2015 suggests they may have had financial interests, but this does not equate to a tax exemption agreement.
- Potential Gaps: The sources do not provide the full text of the agreements, only summaries. If a specific “Kora” request refers to a unique document or deal not covered in public reports, it may require a Freedom of Information Act (FOIA) request to the City of Topeka for primary documents.
- Proof Provided: The cited sources (,,,,) detail the agreements and ongoing obligations, showing no exemption from tax responsibility.
- Limitations: Without access to the exact “Kora” request or internal city documents, I cannot confirm the absence of a obscure agreement. However, the public record strongly suggests Klausman remains liable for taxes, with negotiated terms to manage payments.
- All agreements between the city, Jim Klausman (or Klaton Real Estate), and CoreFirst Bank & Trust regarding Lauren’s Bay tax obligations.
- Specific documents referencing any tax exemptions or releases for the 16 lots or other properties in the subdivision.
- Negotiations and Partial Payment Agreements for 16 Lots:
- Agreement Details: In 2025, the Topeka City Council approved an agreement with Klausman for 16 lots in Lauren’s Bay. Klausman agreed to pay $2.25 per square foot, totaling $525,333, of which $102,000 was applied to outstanding special assessments. This payment exceeded the $423,000 in past-due special assessments for these lots, and Klausman also committed to paying back taxes on these properties.
- Tax Incentives: As part of this agreement, the city approved the creation of a Community Improvement District (CID) and pursued a Reinvestment Housing Incentive District (RHID) for these 16 lots. The CID spreads out the cost of special assessments over 20 years, reducing the monthly cost from approximately $300 to $185 per lot. This arrangement was designed to make the lots more marketable by lowering the financial burden, not to exempt Klausman from tax responsibilities.
- Implication: This agreement does not release Klausman from tax obligations but restructures them to facilitate payment and development. Klausman remains responsible for both the agreed payments and ongoing taxes.
- Outstanding Taxes and Assessments on Other Lots:
- Klausman, through various companies, owns 140 lots in Lauren’s Bay, with the agreements above covering only 16. For the remaining 124 lots, he owes $7,274,816 in general back taxes, penalties, and uncollected special assessments, plus $3,617,629 in future special assessments.
- There is no evidence of any agreement waiving these obligations. Instead, the city has extended negotiation deadlines (e.g., to March 31, 2025) to reach a resolution. If no agreement is reached, Klausman must donate the lots to the city’s land bank by June 30, 2025.
- CoreFirst Bank & Trust’s Involvement:
- CoreFirst Bank & Trust is mentioned as owning 68 parcels in Lauren’s Bay in 2015, but there is no direct evidence linking the bank to any specific agreement with Klausman or the city that exempts him from tax responsibilities.
- CoreFirst has been involved in other Topeka projects, such as taking ownership of Heartland Park Topeka and owning a branch in the Kansan Towers building (purchased by Klausman’s group in 2015). However, these activities do not indicate a tax exemption deal for Lauren’s Bay.
- No records show CoreFirst acting as a guarantor or intermediary in Klausman’s tax negotiations with the city for Lauren’s Bay.
- City Council Discussions and Concerns:
- Council members, notably Christina Valdivia-Alcalá, raised concerns about perceived preferential treatment for Klausman due to his influence, but the approved agreements still require him to pay significant sums.
- The city council has emphasized that ad valorem property taxes (which Klausman owes to multiple entities, not just the city) cannot be waived under state law, ensuring he remains liable for these taxes.
- No Exemption Found: The agreements with Klausman focus on restructuring payments and offering tax incentives to encourage development, not absolving him of tax responsibilities. The significant outstanding debt on the 124 lots and the requirement to pay back taxes on the 16 lots contradict any claim of a full exemption.
- CoreFirst’s Role Unclear: While CoreFirst has a historical stake in Lauren’s Bay, no source confirms their involvement in a deal that lets Klausman avoid taxes. Their ownership of parcels in 2015 suggests they may have had financial interests, but this does not equate to a tax exemption agreement.
- Potential Gaps: The sources do not provide the full text of the agreements, only summaries. If a specific “Kora” request refers to a unique document or deal not covered in public reports, it may require a Freedom of Information Act (FOIA) request to the City of Topeka for primary documents.
- Proof Provided: The cited sources (,,,,) detail the agreements and ongoing obligations, showing no exemption from tax responsibility.
- Limitations: Without access to the exact “Kora” request or internal city documents, I cannot confirm the absence of a obscure agreement. However, the public record strongly suggests Klausman remains liable for taxes, with negotiated terms to manage payments.
- All agreements between the city, Jim Klausman (or Klaton Real Estate), and CoreFirst Bank & Trust regarding Lauren’s Bay tax obligations.
- Specific documents referencing any tax exemptions or releases for the 16 lots or other properties in the subdivision.