The Lenexa City Council on Tuesday unanimously approved holding a Nov. 6 public hearing to consider a redevelopment tax-increment financing (TIF) project plan for the Vantage Point office project in the Mining TIF District which would allow the developer to receive as much as $26.7 million in reimbursements for eligible project costs.
The TIF project plan covers about 32.5 acres at the northwest corner of Renner Boulevard and 93rd Street, according to a Tuesday memo from Assistant City Attorney Sean McLaughlin to the council. The developer is VP Lenexa LLC, a subsidiary of Wichita-based Vantage Point Properties Inc.
Here’s a map of the project site that was in the council packet:
The project would include construction of three class-A office buildings of about 315,000 square feet combined; three buildings containing about 19,500 square feet combined for retail and restaurants; and associated site work, utilities and parking structures.
TIF is a 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 is given to whether a development wouldn’t be financially feasible but for TIF.
The TIF project plan also would allow the city to receive reimbursements for as much as $17 million for eligible costs for public streets and other infrastructure in the Mining TIF District. Final terms for eligible costs and other agreement details would be provided in a disposition and development agreement. Generally, those terms would include:
- The developer would be reimbursed with up to 100 percent of the TIF increment for 10 years for each building.
- After the first 10-year reimbursement period for the first office building, the developer would be reimbursed an additional 50 percent of the TIF increment for the first office building for five years to a maximum of $1 million for mine mitigation, amenities and public roads.
The Lenexa Planning Commission determined at its Monday meeting that the proposed plan was consistent with the city’s comprehensive plan. City staff recommended approving the resolution authorizing the Nov. 6 public hearing.