DALLAS — A petition drive to block Topeka, Kansas' purchase of a distressed auto race track is facing a court challenge from city officials.
Topeka Mayor Larry Wolgast and other city officials gave depositions Oct. 30 in the legal challenge to a petition that has already been validated by Shawnee County officials.
The City Council voted in August to issue $6 million of Sales Tax and Revenue Bonds to buy the track and expand the tax-increment finance district that services the debt.
The city issued $5.1 million of general obligation bonds in 2005 to partially finance redevelopment of the privately owned track and another $10.4 million in STAR bonds in 2006 for the project.
Tax revenues from the original STAR district support the bonds. However, the revenues have fallen short of the amount needed for debt service and must be made up by other city tax revenues, according to report prepared for the city by the accounting firm Douthett & Co.
If no changes were made to the district's boundaries, Topeka taxpayers would be on the hook for about $8.8 million from 2015 through 2025, according to the report.
The city estimates that expanding the district would increase incremental revenues over that time period to nearly $18 million, which would be sufficient to pay debt service on the existing bonds and an additional $6 million of STAR bonds.
After the council voted 9-1 to issue the new debt, citizens launched a petition drive that collected 3,587 valid signatures, more than the 2,132 required to put the matter on the ballot.
City officials are now challenging the validity of the petition in court.
"The purpose of the filing is to receive a judicial determination regarding the validity of the petition so the process can move forward," city communications and marketing director Suzie Gilbert said in a press release.
Heartland Park Topeka was built in 1988 as a city owned facility. In 2002, the management company filed for bankruptcy, leaving $1.2 million in debt. In 2003, a company called Jayhawk Racing bought the track and the management agreement.
The case is pending in Shawnee County State District Court.
