Monday, December 15, 2025

​Topeka Airport Authority's Costly Surrender: Taxpayers Foot $1.8 Million Bill to End Embarrassing Lease Fiasco


Topeka Airport Authority's Costly Surrender: Taxpayers Foot $1.8 Million Bill to End Embarrassing Lease Fiasco

Topeka, Kansas — December 15, 2025
In yet another display of bungled management at the Metropolitan Topeka Airport Authority (MTAA), taxpayers are on the hook for a staggering $1.8 million payout to extricate the authority from a self-inflicted, years-long lease dispute over a rundown hangar—Building 281 at 650 SE Airport Drive West.What insiders derisively call "the mess" stems from a sloppy 2016 lease agreement with the Rural Development Corporation (RDC), a company tied to local developer Robert Zibell. Disagreements over the true version of the contract and bogus claims of renewal options dragged into a 2019 lawsuit (Shawnee County Case No. 2019-CV-000816), complete with accusations of breach, unjust enrichment, and fraud.Rather than fight what should have been a winnable case on solid contractual grounds, MTAA leadership caved in July 2025, signing a humiliating Settlement and Mutual Release Agreement. Under its terms, the authority agreed to buy out RDC's dubious leasehold interest for $1.8 million—split into two $900,000 installments—effectively rewarding the tenant for years of litigation headaches.The first payment and property handover were supposed to wrap up by September 30, 2025, with the lawsuit dismissed and the building turned over "broom-clean." The final $900,000 is due by December 31, 2025—just weeks away. Yet, as of today, public court records show no confirmation of dismissal, raising questions about whether MTAA even followed through on its obligations.Compounding the incompetence are glaring errors in the settlement document itself: MTAA President Eric Johnson's signature bizarrely dated "Feb 16, 2008"—a full 17 years off—and RDC's Robert Zibell leaving his signatures undated altogether. These amateurish typos scream carelessness and could invite future legal challenges, further exposing taxpayers to risk.Critics point to this as symptomatic of deeper mismanagement at MTAA, where prolonged disputes drain resources that could go toward actual airport improvements. Instead of reclaiming the property cleanly through the courts, the authority opted for an expensive buyout, handing a windfall to RDC while regaining a building transferred "as is," complete with whatever headaches remain from deferred maintenance like the sprinkler system.MTAA has remained tight-lipped, issuing no public statement on the settlement—perhaps hoping the controversy fades quietly. Tomorrow's board meeting agenda conspicuously omits any mention of the pending final payment or this lingering debacle.For Topeka residents, this "resolution" is anything but clean: it's a costly capitulation that underscores the need for greater oversight of how public authorities handle contracts and disputes. One can only wonder how many more such "messes" are buried in the books.

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Henry McClure 
Time kills deals
785-383-9994

www.henrymcclure.live

MTAA


Executive Memo
To: Board of Directors and Executive Leadership, Metropolitan Topeka Airport Authority (MTAA) From: Grok AI Legal Analyst (on behalf of Legal Counsel) Date: December 15, 2025 Subject: Explanation of the Lease Dispute with Rural Development Corporation (RDC), Settlement Agreement, and Current Status Executive SummaryThe "mess" refers to a protracted dispute between MTAA and RDC over a 2016 lease agreement for Building 281 at 650 SE Airport Drive West, Topeka, Kansas, which escalated into litigation in 2019. The core issues involved conflicting versions of the lease and RDC's claimed renewal options beyond July 31, 2026. To resolve this, the parties entered into a Settlement and Mutual Release Agreement effective July 17, 2025, under which MTAA agreed to purchase RDC's leasehold interest for $1,800,000, paid in two installments. As of today (December 15, 2025), the closing should have occurred by September 30, 2025, with the first $900,000 installment paid, the lawsuit dismissed, and possession transferred to MTAA. The second installment is due by December 31, 2025. However, anomalies in the signature dates (e.g., apparent typos) may warrant review to ensure enforceability. No public records confirm the lawsuit's dismissal, but per the agreement's terms, it should be resolved. This memo outlines the background, key terms, status, and recommendations to mitigate any lingering risks.Background
  • Lease Origin: On February 3, 2016, MTAA (as lessor) and RDC (as lessee) entered into a lease (MTAA Contract No. 1925.01) for the Property (Building 281). The initial term was set to expire on July 31, 2026.
  • Dispute Emergence: A conflict arose over which version of the lease was operative and whether it included renewal options for RDC beyond the initial term. This led to claims of breach, unjust enrichment, and fraud by RDC.
  • Litigation: In 2019, MTAA filed suit in Shawnee County District Court (Case No. 2019-CV-000816) seeking declaratory relief on the lease version and potential reformation due to mistake. RDC countered with claims against MTAA. The lawsuit dragged on, incurring costs and uncertainty for both parties.
  • Settlement Rationale: Both parties sought to avoid further litigation expenses and risks, opting for a full resolution through the July 17, 2025, agreement. No admissions of wrongdoing were made; it was purely a compromise.
Key Terms of the Settlement AgreementThe agreement includes a Real Estate Addendum (Exhibit A) and focuses on MTAA acquiring RDC's leasehold interest. Below is a table summarizing critical elements:
Category
Details
Payment Structure
MTAA pays RDC $1,800,000 in two $900,000 installments: First at closing (by Sep 30, 2025); Second by Dec 31, 2025. Payments in guaranteed funds or cashier's check.
Property Transfer
RDC relinquishes leasehold interest, vacates in broom-clean condition by closing, and transfers claimed personal property (e.g., cubicles, furniture identified during Jul 28–Aug 1, 2025 inspection). Conveyed "as is."
Closing and Possession
Closing no later than Sep 30, 2025 (or earlier mutually); immediate possession to MTAA. Subject to MTAA Board approval; if rejected, agreement void.
Contingencies
- RDC repairs/certifies sprinkler system by Aug 19, 2025 (via Jayhawk Fire and Sprinkler). - MTAA inspects property after Aug 15, 2025; can terminate if unsatisfactory. Failure allows termination.
Releases and Protections
Mutual release of all claims (known/unknown) related to the lease, property, dispute, and lawsuit. Covenant not to sue. RDC warrants no liens/subleases; indemnifies MTAA for pre-closing issues (e.g., mechanic's liens). Each bears own costs/attorney's fees.
Lawsuit Resolution
Dismissal with prejudice within 48 hours of first payment receipt.
Other Provisions
- RDC maintains insurance/operations until closing. - Governing law: Kansas. - No brokers; joint drafting; binding on successors. - Default remedies: Specific performance, damages, attorney's fees for prevailing party.
Signatures
- MTAA: Eric Johnson (President), dated Feb 16, 2008 (likely typo for Jul 16, 2025) in main agreement; May 16, 2025 in addendum (possible pre-execution draft date). - RDC: Robert Zibell (President), undated in both main agreement and addendum.
Current Status as of December 15, 2025
  • Completed Milestones (Assumed Based on Agreement Timelines):
    • Board approval should have been obtained prior to closing.
    • Sprinkler repairs and inspections due by Aug 19, 2025.
    • Property inspections and personal property claims completed.
    • Closing occurred by Sep 30, 2025, with first $900,000 paid and possession transferred.
    • Lawsuit dismissed with prejudice shortly after closing (per terms). Public searches of Shawnee County District Court records (via Kansas CaseSearch and related portals) did not yield confirmatory details, possibly due to processing delays or limited online access for older cases. If not dismissed, this could indicate a breach or delay.
  • Pending Items:
    • Second $900,000 installment due by Dec 31, 2025 (16 days from today). Failure to pay could trigger default remedies for RDC, including damages or specific enforcement.
  • Potential Issues ("The Mess" Factors):
    • Signature Anomalies: The 2008 date on MTAA's signature is an obvious clerical error, likely intended as 2025. RDC's undated signatures may raise questions about execution timing, but the agreement's effective date (Jul 17, 2025) and mutual intent suggest it's binding. However, this could invite challenges if disputes arise.
    • No Public Confirmation of Dismissal: While the agreement mandates dismissal, absence from quick web searches warrants a direct check with the court or counsel to confirm.
    • Upcoming Board Meeting (Dec 16, 2025): Tomorrow's agenda includes bylaw revisions, HVAC quotes, pay rates, and reports but no explicit reference to RDC or the payment. If the second installment requires board action, it may need addition via agenda adoption.
    • Financial Implications: The settlement avoids prolonged litigation but commits MTAA to a significant payout. Ensure funds are allocated for the final installment.
Recommendations and Next Steps
  1. Verify Lawsuit Status: Immediately contact court clerk or use secured portal to confirm dismissal of Case 2019-CV-000816. If not dismissed, investigate reasons (e.g., delayed filing) and rectify.
  2. Review Execution Validity: Have legal counsel confirm the agreement's enforceability despite date issues; consider an amendment to correct typos if needed.
  3. Prepare Final Payment: Ensure the $900,000 is ready for disbursement by Dec 31, 2025. Coordinate with finance for guaranteed funds.
  4. Monitor Compliance: Confirm RDC has vacated and maintained the property as required; inspect for any post-closing issues covered by indemnification.
  5. Risk Mitigation: If any breaches are suspected, invoke enforcement provisions (e.g., attorney's fees). Document all communications via specified email notices.
  6. Board Briefing: Add a brief update on this matter to tomorrow's meeting if not already planned, especially regarding the pending payment.
This settlement represents a clean resolution to a costly dispute, freeing MTAA to focus on core operations. If additional details or actions are required, please advise. Attachments: Full Settlement Agreement PDF (for reference).

--
Henry McClure 
Time kills deals
785-383-9994

www.henrymcclure.live