As key dates in the approval process for the Mission Chateau development approach, we’ve gotten a number of questions about the relative size of the development and about its impact on Prairie Village city finances. We’ll try to delve into a bit of detail on these issues in the coming weeks, starting today with a look at how much revenue the project would be expected to produce for the city.
First, a bit of background: In 2013, the city’s finance department estimated approximately $22.5 million in revenues. The city in recent years has struggled to fund planned park improvements and recommended road maintenance given its current revenue stream, but the council has rejected proposals to establish additional revenue sources to fund such activities.
So how much additional revenue would the Mission Chateau project — which would be the largest development in Prairie Village in at least two decades — likely generate for the city? Approximately $112,000 in city property taxes, and $14,236 in stormwater utility fees, according to estimates from the Prairie Village City Administrator’s office. Those estimates assume that the expected total construction cost of the project, $50 million, would be relatively close to the final appraised value of the property.
Because the Mission Valley property as it now stands is no longer owned by the school district or a non-profit, it does currently generate property tax for the the city. In the 2012 tax year, Mission Valley generated $18,757.31.
So should Mission Chateau be built as currently proposed, it would probably represent a net revenue gain to Prairie Village of around $107,000 per year — or, put another way, it would increase the city’s annual revenue by about .5 percent.
(Here’s a look at a “drive-by” video of the proposed project that Tutera presented at the Planning Commission two weeks ago:)