(220 SE 6th, LLC / AIM Properties / Cody Foster) was required to disclose their plans for the building as part of the mandatory public process for Industrial Revenue Bond (IRB) approval under Kansas law (K.S.A. §§ 12-1740 et seq.). The bonds were issued specifically to finance exactly what they described.

 Yes — the landlord (220 SE 6th, LLC / AIM Properties / Cody Foster) was required to disclose their plans for the building as part of the mandatory public process for Industrial Revenue Bond (IRB) approval under Kansas law (K.S.A. §§ 12-1740 et seq.). The bonds were issued specifically to finance exactly what they described.

Here is the detailed picture, drawn directly from the attached documents plus the public record that was created at the time:

1. Who is the “landlord” and what is AIM Properties?

• The legal landlord in all the bond documents is 220 SE 6th, LLC (the “Company”).
• 220 SE 6th, LLC was formed specifically for this project by Cody Foster, who owns AIM Strategies LLC (also referred to in local news as AIM Properties or AIM).
• The entity is essentially an AIM-related real estate investment vehicle created to acquire and redevelop the former AT&T building at 220 SE 6th Street.

2. What did they have to disclose, and when?

Kansas IRB law requires a public approval process before bonds can be issued. The Company did make the required disclosures in 2020 (well before the July 2021 closing of Phase I):

• Cost-Benefit Analysis — More than seven days before the June 22, 2020 public hearing, the Company filed a formal cost-benefit analysis with Shawnee County. Resolution 2021-47 explicitly states this analysis showed that “the benefits of the Project exceed the ad valorem tax exemption incentive.” (This is the key document where the Company had to lay out the economic justification, job retention/creation, and general redevelopment plans.)
• Public Hearing — On June 22, 2020, the Board of County Commissioners held a noticed public hearing “concerning the Project, the Bonds and the ad valorem exemption.” Notice was mailed to the City of Topeka and USD 501 and published in the Topeka Metro News.
• Public Statements at the Hearing — The Company’s attorney (representing 220 SE 6th, LLC / AIM) told commissioners the plan was to:
  • Acquire the 51-year-old AT&T building.
  • Retain approximately 100 existing AT&T jobs (AT&T had already moved much of its operations elsewhere).
  • Renovate and improve the building in phases.
  • Bring in additional commercial tenants / office space to help revitalize downtown Topeka.
• They did not name every future tenant at that time (“in conversation with other potential tenants … but isn’t yet sharing any information about them”), but the overall intended use — acquisition + phased commercial redevelopment/renovation/equipping — was fully disclosed.

The same general disclosure framework was repeated for Phase II in 2025 (additional notice and hearing referenced in Resolution 2025-71).

3. Were the bonds issued for that disclosed purpose?

Yes — 100%. Every official document ties the bond issuance directly to the exact plan the Company described:

• Resolution 2021-47 (the original authorizing resolution) states the bonds are to:
  • Acquire the real estate and existing building (“Facility”).
  • Construct, renovate, improve, and equip the Facility in a phased method over several years.
  • Lease it back to the Company (or affiliates) for commercial purposes.
• Bond Trust Indenture, Base Lease, and Lease Agreement – Phase I (all dated July 1, 2021) recite the same purpose.
• Phase I ($3.815 million, 2021) funded acquisition + second-floor AT&T consolidation, common-area renovation, abatement, HVAC/electrical upgrades — exactly as described in 2020.
• Phase II ($6.7 million, 2025) funded first-floor renovation into “innovative laboratories, suites and related facilities” — a continuation of the phased commercial redevelopment plan.

The entire IRB structure exists only to finance the project the Company publicly described. The lease-leaseback, tax abatement (up to 10 years per phase via BOTA), and PILOT payments ($63,000+ per year) are all conditioned on the Company actually carrying out the described improvements and economic benefits.

Bottom Line

• Disclosure was mandatory and occurred through the cost-benefit analysis, public hearing, and formal resolutions — all of which are referenced in the documents you provided.
• The bonds were not issued for some secret or different purpose; they were issued precisely to enable the acquisition and phased redevelopment plan that 220 SE 6th, LLC / AIM publicly presented in 2020 and has been executing since.

Deep Dive into the Base Lease Agreement.pdf (Dated July 1, 2021 – 12 pages, Document ID: nUX6Z)

This is the foundational “ground lease” (also called the Base Lease or acquisition lease) in the entire Shawnee County IRB financing for the 220 SE 6th, LLC Project. It is a short, highly standardized legal document (only 12 pages including signatures and Exhibit A) that serves one primary statutory purpose under the Kansas Industrial Revenue Bond Act (K.S.A. §§ 12-1740 et seq.).

1. Parties and Basic Facts

• Lessor (Landlord): 220 SE 6th, LLC (the “Company”) – a Kansas limited liability company (manager: Seth Wagoner).
• Lessee (Tenant): Shawnee County, Kansas (the “Issuer”) – acting through its Board of County Commissioners.
• Date: July 1, 2021 (same date as the original Bond Trust Indenture, Lease Agreement Phase I, and Resolution 2021-47).
• Property Leased: The entire “Facility” = land (“Site”) + existing building at 220 SE 6th Street (aka 220 SE 6th Avenue), Topeka, Shawnee County, Kansas.
  • Full legal description in Exhibit A: Keyway Center Subdivision, specific lots/blocks, Parcel ID 1093101021006000.
  • Approximately 125,000 sq. ft. commercial building on the site.
• Relating to: The entire $13,000,000 IRB program (issued in phases).

2. Why a “Ground Lease” / Base Lease Structure? (Not a Typical Building Lease)

This is not a market-rate commercial lease where the tenant pays ongoing rent for use of space. It is a conduit / acquisition lease required by Kansas law:

• The Act requires the County (a public body) to “acquire” a leasehold interest in the property before it can issue revenue bonds “for” that property.
• By taking a leasehold estate from the private owner (Company), the County technically becomes the “owner” for bond-issuance purposes.
• Immediately afterward, the County sub-leases the improved phases back to the Company (or its affiliate) under separate Phase Lease Agreements.
• This creates the classic IRB “lease-leaseback” or “double lease” structure:
  • Base Lease = County acquires leasehold from Company (this document).
  • Phase Leases = County leases the financed improvements back to Company.
• Result: Bonds are repaid solely from the Company’s sublease rents (pledged to the Bond Trustee). No County taxpayer money or general obligation is at risk.
• It is called a “ground lease” or “Base Lease” because it covers the underlying land + existing building as the foundation for all future phased improvements.

3. Lease Term (Section 3.1)

• Commencement: July 1, 2021.
• Duration: Continues “so long as any obligation of the Company under any lease agreement for any part of the Project shall be outstanding and so long as any lease agreement for any part of the Project shall remain in effect.”
  • In practice, this runs until the final maturity of the last series of Bonds (likely ~2035 or whenever all $13M + Phase II bonds are paid off).
• Can be terminated early (see Section 8 below).

4. Rent / Consideration / Who Pays What? (The Most Important Part – Section 4.2)

This is the key economic feature:

• No ongoing rent payments from the County (Lessee) to the Company (Lessor).
• Section 4.2 (Consideration and Rentals) states verbatim:

  “The Issuer shall deposit the proceeds from the sale of each series of Bonds when issued with the Bond Trustee … Such deposit shall constitute full and complete payment of all rentals due hereunder for granting a leasehold interest in a phase of the Project and following such deposit the Issuer shall not have any obligation to make any payments to any Person in connection with this Base Lease Agreement.”

• In plain English: The bond proceeds themselves are deemed to be the full prepaid rent for the leasehold interest. Once the money is wired to the Trustee, the County’s rental obligation under this Base Lease is completely satisfied forever.
• All other costs borne by the Company (Lessor):
  • Section 4.4: Company must “promptly pay and discharge … all expenses, taxes, assessments and other charges” related to the Facility/Project (including property taxes or PILOT payments in lieu of taxes).
  • Company pays for all maintenance, insurance, utilities, etc. (handled in the separate Phase Lease Agreements).
• County has zero financial or operational burden under this document.

5. Landlord-Tenant Relationship – Rights and Obligations

Company (Lessor / Landlord) obligations and rights:

• Provides quiet enjoyment (Section 4.1): Must not interfere with County’s (and ultimately its own sublessee’s) peaceful possession. Will defend the leasehold against third-party claims at Company’s expense.
• Full indemnification of the County (Section 5.2): Company releases and indemnifies County against virtually every possible liability, loss, claim, suit, or expense related to the Project, construction, operation, bond issuance, or Company’s acts/omissions. Exception only for County’s own willful misconduct.
• Can grant or release easements (Section 5.1) with County/Bond Trustee approval (must not harm the Project or bond security).
• Can assign the Base Lease to affiliates/subsidiaries (Section 6.1).
• The lease is subordinate to any mortgage the Company places on the Facility (Section 6.2) – no nondisturbance rights required.

County (Lessee / Tenant) obligations and rights:

• Almost none. The County’s role is purely formal/conduit.
• Cannot assign, mortgage, or dispose of its leasehold interest except to the Bond Trustee (Section 6.1).
• Must cooperate on easements and other ministerial acts when requested by Company.
• Receives full indemnification and quiet enjoyment.

6. Defaults, Remedies, and Early Termination (Articles VII–VIII)

• Event of Default (by County only): Failure to perform any covenant after 60 days written notice (Section 7.1).
• Remedies are limited and cannot impair bond payments. Company can seek termination or specific performance/injunction.
• Early Termination (Section 8.1):
  • If all Bonds are paid in full → Company can terminate and get its full interest back.
  • If a mortgagee forecloses → Mortgagee can terminate the Base Lease on 5 days’ notice (Company remains liable for bond obligations).

7. Miscellaneous Provisions (Article IX)

• Governed by Kansas law.
• Notices go through the Bond Indenture addresses (with copy to Original Purchaser).
• Amendments require consent of Company, County, Bond Trustee, and Bondowner (after bonds issued).
• Can be executed in counterparts; electronic signatures/storage allowed.
• Bond Trustee is a third-party beneficiary.
• Severability, binding on successors, etc.

8. Signatures

• Company: Seth Wagoner, Manager.
• County: Kevin J. Cook (Chairman) and Cynthia A. Beck (County Clerk), with official seal.

Bottom-Line Summary of the Structure

This Base Lease is a purely statutory, nominal, and one-way document designed to check the legal box required for IRB issuance. The Company (private owner) “leases” its own property to the County for essentially $0 ongoing cost, in exchange for the County issuing bonds that finance the Company’s own improvements. The County immediately leases everything back, and the Company pays all the bills (taxes, PILOT, maintenance, and the bond debt service via the Phase Leases).

It is the legal backbone that makes the entire phased $13M + $6.7M IRB financing work without putting any County general funds or credit at risk.