Archive for Friday, April 27, 2001

Oz study ordered by commission

April 27, 2001

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— After some minor tweaking, the Johnson County Commission on Thursday launched its own study of Oz Entertainment Co.'s development plan for the former Sunflower Army Ammunition Plant near DeSoto.

The independent review is expected to take three to four months, after which the commission will vote whether to endorse the $861 million project.

Since November, commissioners have twice deadlocked, 2-2, stalling the project. One member of the five-person commission, Gary Anderson, has declared a potential conflict of interest and refrains from voting on Oz-related issues.

Dave MacGillivray, a consultant with Springsted, a public finance company in Overland Park, will oversee the review.

The study, expected to cost between $80,000 and $100,000, was approved last month after Commissioners Susie Wolf and Annabeth Surbaugh said they doubted many of the figures cited by Oz officials.

Designed by Surbaugh, the study is aimed at giving the county an independent analysis of the company's attendance projections, the county's costs and risks, and project's financial feasibility.

MacGillivray said he plans to contract with several experts, none of whom will have affiliation with the proposed Wonderful World of Oz theme park or its major contractors.

Oz officials said they welcomed the study.

"We think the commissioners are doing a great job of protecting the county's interest, and we're pleased to work with them in resolving certain issues in a businesslike manner," Oz chairman Robert Kory said.

Commission members agreed to MacGillivray's request that steps be taken to protect from lawsuits the experts hired to dissect the Oz-financed studies.

"A lot of money has been spent privately on this," MacGillivray said, adding, "There is some fear of litigation."

John Petersen, a Kansas City attorney representing Oz, said that was fine with Oz as long as the hired experts were qualified.

"My client has an obligation to protect his shareholders," Petersen said.

Surbaugh proposed that Oz pay for the study if, upon its completion, the commission endorses the project.

"I object to that," Commissioner Doug Wood said. "If this is going to be independent then it's going to be independent." Surbaugh's proposal failed.