In March 2025, Community Associations Institute filed an amicus curiae brief in the Kansas Court of Appeals in Stonegate Motorplaza Condominium Association, Inc. v. HP Motorplaza. The brief supported a condominium association in a dispute over a developer’s rights to undeveloped property.
The case addressed an important question: When a developer fails to develop designated condominium property within the seven-year period allowed by Kansas law, does the remaining land become common property owned by all condominium owners or can the developer retain individual ownership?
On Oct. 30, the Supreme Court of Kansas denied the developer’s request for review, leaving the favorable court of appeals decision in place. This outcome preserves an important victory for the condominium association and its members.
Background: A Development Plan That Was Never Finished
Stonegate Motorplaza is a condominium community in Johnson County, Kan., featuring garage-style condominium units designed to store and display specialty vehicles, including race cars and collector cars.
In July 2015, developer HP Motorplaza recorded a condominium declaration outlining plans to develop approximately 40 acres in phases. The plan included several buildings, garage units, amenities, and common areas. It also designated certain undeveloped portions of the property as “convertible” or “expandable” land, allowing the developer to add condominium units and facilities in the future.
Although the developer constructed some buildings and units, it never completed development of the remaining property.
Under the Kansas Apartment Ownership Act, a developer generally has seven years from the original recording of the declaration to exercise certain rights to convert or expand designated condominium property. After that period expires, development rights cannot be exercised.
The seven-year deadline passed without the developer completing the required steps to develop the remaining land.
The Legal Dispute: Who Owns the Undeveloped Land?
The association filed a lawsuit seeking a declaratory judgment confirming that the developer’s rights had expired and the remaining property—Lots 1, 4, and 5, and Tract B—was permanently part of the condominium’s common area owned collectively by unit owners.
The district court ruled in favor of the association and granted summary judgment. The developer appealed.
The Kansas Court of Appeals also ruled in the association’s favor on the central issue involving the convertible land, concluding the developer failed to exercise its development rights within the statutory seven-year period. As a result, the land became common property of the condominium owners rather than remaining in the developer’s individual ownership. The developer then sought review by the Supreme Court of Kansas.
Why This Decision Matters
The case highlights the importance of understanding how state condominium laws affect undeveloped property and reserved development rights.
Under K.S.A. 58-3115a, designated convertible land remains common area until properly converted, subject to the statutory seven-year deadline. Similarly, K.S.A. 58-3111.13(c) provides the right to expand a condominium automatically expires seven years after the original declaration is recorded.
The dispute centered on what happens when those deadlines pass. The developer argued that losing its development rights did not mean losing ownership of the property. The association maintained the property remained a common area belonging to condominium owners.
The courts’ rulings reinforce the importance of statutory deadlines and the language used in condominium declarations. For community associations, developers, and attorneys, the case serves as a reminder that decisions made when drafting and recording condominium documents can have lasting consequences for property ownership and development rights.
The decision also may provide valuable guidance for community associations in other states that have adopted the 1977 version of the Uniform Condominium Act.
CAI’s Role in Supporting Community Associations
CAI is proud to support the association through its amicus curiae program. The program allows CAI to advocate for legal issues affecting community associations and the industry.
CAI extends its sincere thanks to Todd Billy, Esq., CCAL, of Sandberg Phoenix in Clayton, Mo., for drafting the thoughtful and successful arguments on behalf of the community association industry. Billy is a fellow in CAI’s College of Community Association Lawyers.
To learn more about CAI’s amicus curiae program supporting community associations, visit CAI’s Amicus Curiae Briefs webpage.
