The Bourbon County Commission convened on December 23, 2024, to address significant issues surrounding tax exemption applications and the county's policies regarding economic development. The meeting highlighted concerns over the tax abatement application submitted by California Legacy Healthcare for a property formerly known as Mercy Hospital.

The discussion began with a review of the lack of standardized procedures for tax exemption applications in Bourbon County. It was noted that California Legacy Healthcare had submitted their application on March 11, 2024, seeking tax exemption under Kansas statute KSA 79-201b, which allows for exemptions for hospitals and similar facilities. The property in question was donated to Legacy Healthcare in November 2022, with the expectation of developing an acute care hospital. However, the building has not operated as such since its closure in February 2018, and Legacy has not paid property taxes for 2023 and 2024, amounting to approximately $400,000.

Concerns were raised regarding the timing of the application and the lack of prior discussion among the commissioners about the tax abatement. Questions were posed about who was aware of the application and whether it was appropriate to approve a tax exemption for a property that had not fulfilled its intended purpose. The Kansas Department of Revenue's guidelines for tax exemptions were referenced, emphasizing the need for public notice, hearings, and a thorough cost-benefit analysis before approval.

The meeting also touched on the broader implications of the county's dealings with Legacy Healthcare, with some commissioners expressing frustration over the financial impact on the community. The discussion concluded with a call for more diligent research and oversight in future business agreements to prevent similar situations.

Overall, the meeting underscored the need for clearer policies and procedures regarding tax exemptions in Bourbon County, as well as the importance of transparency and community benefit in economic development initiatives.