The developer of a new mixed-use project on the northeast corner of Lenexa City Center has received the city’s permission to receive TIF funds to cover construction costs.
The Lenexa council in its Dec. 18 meeting approved in a 7-0 vote a TIF agreement and redevelopment plan for the Renner 87 Flats project, a multi-story apartment loft building with about 250 units and 10,000 square feet of retail space. The project will be located on 7 acres at the northeast corner of 87th Street Parkway and Renner Boulevard.
There was no comment from the audience during the public hearing and no discussion from the council.
The TIF (tax increment financing) agreement allows the developer, Renner Housing LLC, to receive 100 percent of the tax increment for the next 12 years and then 50 percent for the following year for construction-related costs such as land acquisition, site development (grading, stormwater, water mains, utility costs in the right of way), surface and structured parking, sidewalks, landscaping, lighting and other site amenities, and interest.
In general, terms of the agreement with Renner Housing allow Lenexa to receive 100 percent of the TIF increment in the area until the city is reimbursed for $445,235 in special assessments associated with the 87th Street Special Benefit District. Lenexa has prepaid those funds for the property according to a participation agreement between Renner Development Company LLC and Lenexa on Nov. 20, 2007.
Likewise, until the end of the 20-year TIF term, Lenexa will be entitled to receive 100 percent of the TIF increment from the Project Plan 4C area for reimbursement of its public TIF-eligible costs, including land acquisition, development of public parking structures and infrastructure improvements to the 87th Street and Interstate 435 interchange.
Total TIF-eligible reimbursements include $13,514,994, of which approximately $9,514,994 are private for Renner Housing and $4 million are public for Lenexa.
The TIF agreement requires the developer to begin the project by April 1, 2020, with the intention of completing it by Dec. 31, 2021 (the city administrator can extend these dates by up to 60 days). Additionally, Renner Housing must pay all project-related fees and comply with all city codes, including property maintenance. Also, Renner Housing must be a dues-paying member of the Lenexa Chamber of Commerce, make an annual contribution to the Lenexa Foundation earmarked for public art (contributing at least 0.5 percent of the annual distribution of TIF revenues for artworks), and annually sponsor at least one city festival, event or program.
The Lenexa council also agreed in a 7-0 vote to approve an application from Renner Housing to issue up to $20 million in industrial revenue bonds for the construction of the project. Renner Housing had requested that the industrial revenue bonds receive a sales tax exemption on the construction materials for the project.
Editor’s note: This story has been updated to reflect the accurate length of the TIF (tax increment financing) agreement, which allows Renner Housing LLC to receive 100 percent of the tax increment for the next 12 years — not 10 years, which was a typo in the Lenexa Dec. 18 city memo — and then 50 percent for the following year for construction-related costs.