By Jerry LaMartina
The Lenexa City Council will hold a May 15 public hearing to consider whether to approve a redevelopment tax-increment financing project plan for a proposed Home2 Suites by Hilton hotel and office project on the southwest corner of Rosehill Road and 96th Terrace.
The project would comprise renovation of a two-story, roughly 19,000-square-foot office building and related improvements in a first phase, and construction of a four-story, 99-room Home2 Suites hotel and related improvements in a second phase. The roughly 5.63-acre site of the proposed project is within the I-35 and 95th Street TIF District.
The council unanimously approved holding the hearing as part of its consent agenda at its Tuesday night meeting. The Lenexa Planning Commission approved the final plan for the proposed office redevelopment and recommended rezoning and the preliminary plan for the hotel at its Monday night meeting. City staff also recommended approval for the project.
The developer is KWB LLC, owner of KWB Hotels, based in Sioux Falls, S.D.
The increment of new tax revenue from the improved property would be used to reimburse the developer for eligible costs up to 50 percent of the TIF increment for up to 10 years, starting with full valuation for the office component. If the hotel is completed on schedule, then the developer would be entitled to reimbursement with up to 100 percent of the TIF increment for the balance of the 10 years.
For the second 10 years of the 20-year TIF term, the city would be entitled to 100 percent of the TIF increment and any balance from the project’s second phase as reimbursement for city funds spent on public infrastructure related to the I-35 and 95th Street interchange construction.
TIF is public financing tool by which a developer of a blighted property is reimbursed for eligible development and infrastructure costs using the increment of new property or sales tax revenue generated by the development. Consideration of TIF is made using the “but-for” principle, which means considering whether a development wouldn’t be financially feasible but for TIF.