By Roxie Hammill
Developers of the big Promontory Redevelopment on the site of the old Glenwood Shopping Center have asked for less than expected in bonds for a sales tax break on construction materials. On Monday, the Overland Park City Council unanimously complied, authorizing $19.2 million in bonds rather than the planned $20.5 million.
The economic development revenue bonds are a tax incentive designed to help developers by exempting some costs of acquisition, construction, equipment and materials from sales tax.
This week the city council approved the bonds for two parts of the first phase of the Promontory project, along Metcalf Avenue between 89th and 91st streets. That part of the mixed-use project includes 420 units of multi-family housing and retail.
The city had planned on issuing bonds for up to $15 million for the first phase of the project, which included demolition of an existing building and construction of the residences on the north side of the property and pad sites and parking on the south side.
That amount was increased to potentially $20.5 million in 2016, when a portion of that phase was broken off and sold to Phoenix III, LLC. Arbor Development, LLC, still owns the part that includes pad sites and parking.
But both owners came in lower than the maximum amounts. The city council unanimously approved bonds of $15 million for the portion owned by Phoenix and $4.2 million for Arbor. Developers had asked for $15.5 million and $5 million, respectively.
That translates into an expected sales tax exemption of about $1.4 million for the Phoenix portion and $382,000 for the parking and pad sites. Of that the city would forego $168,750 for the residences and retail and $47,250 for the parking and pad sites.
City funds are not used to issue the bonds and the city has no financial obligation on them.
The first part of the Promontory has been under construction for the past year. The entire $97 million project will include more than 153,000 square feet of shops and restaurants, as well as the multi-family units, which have been billed as “luxury” apartments.
The Promontory is one of the biggest projects in an area along Metcalf that has been booming. Also in the offing are a Lowe’s store to the south and a major facelift for the Regency Park shopping center at 93rd Street and Metcalf Avenue.