The Lenexa City Council on Tuesday night unanimously approved a development agreement for The Yard, an estimated $15 million mixed-use office, restaurant and outdoor-entertainment development planned for the southeast corner of 87th Street Parkway and Renner Boulevard in Lenexa City Center East Village.
The council had approved The Yard’s final plan at its Aug. 21 meeting. The development is planned to occupy about 1.5 acres of a roughly 2.6-acre section of city-owned land and contain 44,000 square feet in a four-story, L-shaped building with two stories of office space on top of a two-story parking garage, and two levels of retail and restaurant space.
The Yard’s outdoor patio space will be integrated with the restaurants and will include pickleball and shuffleboard courts, multiple gathering spaces and seating, a firepit, restrooms and a host station. The Lenexa Planning Commission recommended approval of the project’s final plan at its Aug. 6 meeting, and city staff also recommended approval of it and the development agreement approved Tuesday.
Scott Anderson of CRQ Development is the project’s lead developer. He said Aug. 24 that he hoped to break ground early next year and complete the project by the summer of 2020.
- City Administrator Eric Wade said in a memo and an address to the council Tuesday that the development’s financing, pending council approval, would include:
- A 20-year, tax-increment financing (TIF) agreement that would yield $4.4 million in reimbursements for the developer and the city for eligible expenses, divided as follows:
• The developer would get 100 percent of the increment of new tax revenue generated by the • development for the first year.
• 90 percent for the second and third years
• 80 percent for the fourth and fifth years
• 60 percent for the sixth through 10th years
• 40 percent for the 11th through 15th years
• The city would receive the entire increment for the 16th through 20th years.
- A 2-percent community improvement district (CID) retail sales tax, with 1.2 percent of the tax revenue going to the city and 0.8 percent to the developer as reimbursement for eligible costs.
- Industrial revenue bonds (IRBs) to be issued by the city for the developer to finance the project’s construction and exempt the developer from sales tax on construction materials.
- An economic development grant of $2.5 million from the city to the developer contingent on the developer building the project’s public parking garage and $500,000 for the outdoor entertainment area.
City Center East Village, on the east side of Renner and the south side of 87th Street Parkway, includes the B.E. Smith Building, Hyatt Place Hotel and Convention Center and Ignite restaurant.