UPDATE 5/25/26 2:45 PM: Reader and Fort Scott Land Bank board member Michael Hoyt informed the Bourbon County Monitor on Monday afternoon that the current amount of the lien was discussed at Thursday night's Land Bank meeting, with the current total stated at the meeting as being $250,000 as of January 2026, with $30,000 in "special reoccurring fees". The Bourbon County Monitor is working to confirm the final number. The Land Bank meeting can be viewed here.
FORT SCOTT, Kan. — A recently discovered federal tax lien has thrown a wrench into the anticipated redevelopment of the historic Moody Building, leaving city leaders searching for solutions.
An Ownership Maze
City Attorney Bob Farmer informed the city commission on Tuesday that the building's current owners — believed to be B/R Companies, a California-based developer — acquired the property via a quitclaim deed without obtaining title insurance, leaving them with an unresolved federal tax lien. The company shares leadership with the Legacy Healthcare Foundation, the California group that received ownership of Fort Scott's former Mercy Hospital building in 2022.
According to the most recent deed on file with the county, local attorney Gil Gregory transferred the building to Moody Building LLC on July 27, 2023 — the same day state records show the LLC was organized. State records list then-county commissioner Clifton Beth as the LLC's sole organizer. The LLC's status was listed as forfeited by the Secretary of State as of July 15, 2025, for failing to file required reports.
The deed transferring the building to Moody Building LLC was executed July 27, 2023, but the deed itself shows it was not filed and recorded by the county until March 28, 2024 — eight months later. Kansas law does not require deeds to be recorded within a specific timeframe.
In an email to the Bourbon County Monitor on Thursday, City Manager Brad Matkin said that while there has been "some confusion" over the ownership of the building, the city’s two primary contacts have been B/R Companies CEO Juan Banos and California-based attorney Troy Schell. Schell was identified as the Legacy Health Chairman of the Board in a press release published by FortScott.biz on May 6, 2023.
Matkin also told the Monitor that the city currently believes the lien dates back to 2016, and totaled $61,000 at that time, but is “probably more than that now.”
'Somebody Has to Make a Decision'
Farmer told commissioners that the developer initially blamed a title insurance error, but later admitted they had never obtained title insurance and had taken possession of the building solely through the quitclaim deed. Farmer then requested the commission's permission to contact the IRS.
"And with your indulgence, I would like permission to start tracking down that trail and seeing exactly what the dollar amount is that we can get out of because then somebody has to make a decision," Farmer said.
Farmer explained the economic impact of the decision the commission would need to make.
"Let's assume there is a dollar amount that's owed, actually owed. Then we have a developer that wants the property . . . I'm not permitted to say who that is," Farmer said. ". . . It might be cheaper to pay the lien as part of our economic development than tear the building down because tearing the building down is going to cost a fortune."
Matkin agreed with Farmer's assessment.
"I just know this is very important because not only is that buildings (sic) in jeopardy, you may lose the investor that wants it and you've got an alley that is blocked because of this building," Matkin said. "The hazard is the biggest thing though. That building's not getting any better every day, especially when it rains."
'We All Know Who Bought the Building'
Commissioner Tim Van Hoecke criticized the developer for what he described as a failure of basic due diligence.
"The most laughable, amazing thing about this is we all know who bought the building — allegedly big-time, high-rolling real estate developers that obviously didn't have anybody on their team that would check to see whether or not the building had a fricking lien on it or not before they bought it," Van Hoecke said.
Farmer said the situation fit a pattern he had seen many times in his years with the city.
"How many people have you known that…have rolled into town on the big white horse…and at the end of the day, we get what the horse leaves behind," Farmer said.
After a lengthy discussion, the commission directed Farmer to contact the IRS to explore the city’s options regarding the lien.
Both the deed to the Moody Building as well as the Articles of Organization for Moody Building LLC are linked below this article.
Barber Shop Collapse Risks
The city is facing a similar structural problem with the Fort Scott Barber Shop building at 118 E Wall Street. Matkin told the commission that after viewing the building with Codes Technician Leroy Kruger, he had invited the owners to attend the next commission meeting.
“I'm going to invite the owner to the next commission meeting and I honestly think we need to get something going with this building before it falls.” Matkin said.
Matkin told the Commission that while the owner had the building for sale for $60,000, he didn’t know if anyone was interested in purchasing it. Matkin said that while the damage to the building wasn’t as visible as the damage to the Moody Building, it might be “just as dangerous”, and told the commission that “we need to do something quickly”.
Other Action
In other action, the commission:
- Agenda and Consent Agenda: Approved the meeting agenda and consent agenda, which included a $497,094.40 in accounts payable and a liquor license renewal for Hole In the Wall Enterprises LLC.
- Executive Session: Recessed for 30 minutes under K.S.A. 75-4319(b)(4) to discuss IT infrastructure and security with USD 234 IT Department representatives. No action was taken; commissioners praised the shared IT services arrangement afterwards.
- Public Works Update: Director Tom Coffman announced the department is fully staffed with 18 employees. Crews are addressing weather delays and planning road and curb repairs.
- Historic Preservation Grant: Authorized the Historic Preservation Commission to apply for a $25,000 state grant to establish community design guidelines. The grant requires a 40% local match, which can be covered through in-kind administrative services.
- Gunn Park Dog Pound Proposal: Heard opposition from Parks Advisory Board representative Daniel Wilson regarding a proposal to relocate the dog pound to the Gunn Park caretaker's house due to noise and sanitation concerns. No formal action was taken.
- Alley Vacation Denial: Voted 4-1 to deny a petition by Daugherty Enterprises LLC to vacate an unmaintained public alley on East Wall Street, with Van Hoecke dissenting.
- Sewer Repair System Purchase: Approved the $15,023.64 purchase of a Quick Lock Point Repair System from Key Equipment to enable trenchless repairs of sanitary sewer mains.
- Digital Evidence Module Expansion: Approved a three-year contract expansion worth $39,364.00 with Omnigo QTel for a digital evidence and case management system for the police department.
- Police Fleet Lease-Purchase: Approved a five-year lease-purchase agreement through Union State Bank for $381,068.00 to acquire and outfit six new police vehicles.
- Davis Lift Station Payment: Authorized a progress payment of $187,166.14 to Jeff Asbell Excavating & Trucking Inc. for pipe installation at the Davis Lift Station.
- City Staffing and Infrastructure: Announced a new codes officer will begin training on June 1 ahead of an upcoming retirement. Officials also noted active discussions with the railroad for a potential industrial park spur line.
