The Lenexa City Council advanced a measure Tuesday to consider approving tax-increment financing (TIF) plans for a new, six-story office building in City Center for construction and engineering company Kiewit Corp.’s regional headquarters, scheduling a public hearing for June 5.
The plans provide for a roughly 4-acre TIF district south of 89th Street and west of Renner Boulevard, which would help finance construction of the 168,000-square-foot building on an undeveloped parcel at the southeast corner of Penrose Lane and West 88th Terrace. It also would help finance expansion of an existing two-level parking garage, which has about 1,300 stalls and will have about 1,770 after the expansion, in addition to public, on-street parking.
The council approved the project’s final plan at its April 3 meeting. Kiewit spokesman Bob Kula said April 4 that 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 Omaha-based company 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 Kiewit’s regional headquarters campus in Lenexa and combined will contain about 372,000 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.