By Jerry LaMartina
The Lenexa City Council approved the final plan Tuesday night for a new, six-story office building and expansion of an existing two-level parking garage in City Center for Omaha-based construction and engineering company Kiewit Corp.’s regional headquarters.
The new building will contain 181,680 square feet and will be built on an undeveloped parcel at the southeast corner of Penrose Lane and West 88th Terrace.
Kiewit spokesman Bob Kula said the building would cost about $43 million and the parking garage expansion about $7.5 million. JE Dunn is the project’s general contractor.
Kiewit expects to break ground on the project in the third quarter of this year and complete it by Jan. 1, 2020. The company intends to seek tax-increment financing for the project from the city at a later time.
Kiewit recently bought two adjoining buildings from Lexmark Properties at 89th and Renner for an undisclosed amount. These buildings, formerly the headquarters for Perceptive Software, and the new building will constitute its regional headquarters campus in Lenexa. Combined the campus will contain about 385,000 square feet.
The company anticipates adding another office building, from two to five stories high, on an additional lot on the site at an undetermined time. The lot will function in the meantime as a plaza and green space on the campus.
Kiewit has slightly more than 1,200 employees locally in four buildings totaling about 350,000 square feet, at 9401, 9701 and 9801 Renner Boulevard, and at 16095 W. 95th St. The company owns the building at 9701 Renner and leases the others. It expects to end the leases and sell the building it owns, Kula said.
The parking garage has about 1,300 stalls and will have about 1,770 after the expansion, in addition to public, on-street parking.
“We appreciate the support and involvement of Mayor Boehm and city officials during this important process for helping us pursue a potential new state-of-the-art campus in Lenexa,” the company said in a written statement. “With more than 1,200 construction, engineering and support employees already in the greater Kansas City area, Kiewit’s presence continues to expand, including adding more engineering talent this year to support our growing work in the power market. We look forward to continuing this process to secure a mutually beneficial agreement for the city, Kiewit and our employees.”
The Lenexa Planning Commission on Monday night unanimously recommended approval of the project, and city staff also recommended approval.
Kiewit also has offices in Alaska, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Iowa, Maryland, Massachusetts, Minnesota, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oregon, Texas, Utah, Virginia, Washington and Wyoming; Alberta, British Columbia, Newfoundland, Ontario and Quebec, Canada; and Mexico City.