The Commerce Bank property at the northwest corner of Johnson Drive and Roe Ave. will be developed without the use of a Community Improvement District.
Commerce and the City of Roeland Park are planning to split the cost of making changes to the intersection that will allow left turns out of not only the Commerce Bank owned property, but also from the land on the northeast corner of the intersection which is owned primarily by Roeland Park. Mission also owns a piece of the northeast corner and the two cities have been discussing strategies to develop that land. The Commerce property is directly across the street from the Mission Gateway project which has a new proposal expected to start down the review process later this month.
A traffic cut across Roe north of the Johnson Drive intersection will increase the value of both properties by allowing left turns from commercial development on those sites. It is estimated that the bank and city will each pay about $55,000 to make the changes. Commerce has said that several potential development partners passed on the parcel because of the lack of a left-turn exit.
The city had agreed to front the Commerce share of the project and be reimbursed over the course of up to 20 years from additional sales tax generated by retailers in the CID. Commerce is planning to sell a portion of its three-acre property for other retail use as well as build a branch bank.
Interim City Administrator Mark Pentz said Monday that Commerce had decided to forgo the use of a CID because its fees to set up the district would run about $25,000. The new agreement proposed to the city council is that Commerce pay its share of the intersection when it sells the land or by the end of 2016, whichever comes first.
“It’s really more to the city’s benefit because we get our money back sooner,” Pentz told the council. “This to me was good news.”
Commerce bought the property from the city in 2012 with a stipulation that it be developed by early 2014. The bank has received several extensions on that deadline and has been paying $5,000 to the city for each six-month extension. With the new agreement, the council is expected to again extend the deadline to March 2016 and take another $5,000 payment to compensate for delayed tax revenue.