The Kansas Department of Commerce filed the suit against the city of Derby, Security Bank of Kansas City, and developers Dave Murfin, Rick Worner, and Rodney Steven II. State authorities contend the project violated Sales Tax and Revenue bond requirements, pointing to a city report indicating construction began in 2026 despite approvals granted four years ago. Developers argue that razing a barn and farmhouse in early 2023 satisfied the construction start mandate. Derby officials noted that while basic infrastructure like grading, roads, and sewers is largely finished, no above-ground structures currently exist on the site.
Key points
State law strictly requires public STAR bond financing to terminate if project constructi…: State law strictly requires public STAR bond financing to terminate if project construction fails to launch within two years of plan approval.
The state and developers dispute whether early site demolition qualifies as construction…: The state and developers dispute whether early site demolition qualifies as construction or if the statutory deadline was missed.
The project currently lacks vertical structures despite public reports indicating essenti…: The project currently lacks vertical structures despite public reports indicating essential preliminary ground and sewer infrastructure is nearly complete.
Sources checked by our analysis pipeline: 1
State officials in Kansas have filed a lawsuit to stop more public bond money from going to Derby Shores, a planned $160 million lagoon resort. The project still has no buildings above ground, four years after it was approved. The Kansas Department of Commerce filed the lawsuit this month in Sedgwick County District Court. It is asking the court to block any more bond payments and require a full account of the $35,285,000 in bonds already sold for the project. "More than four years after the project was approved and bonds were sold, it has not been built," the state said in its court filing. "Announced opening dates have come and gone."
The lawsuit names Derby Destination Development, a partnership made up of Dave Murfin, Rick Worner, and Rodney Steven II. Project trustee Security Bank of Kansas City and the city of Derby are also named as defendants, according to The Wichita Eagle. Derby city manager Kiel Mangus said local officials are still reviewing the lawsuit and waiting for the private developers to take action. "It is going to take…
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