The Lenexa city council has approved the transfer of rights to proceeds from a community improvement district sales tax at the Greystone South Plaza Shopping Center to the center’s new owner.
Lenexa in October 2013 approved the establishment of a community improvement district (CID) sales tax for the center, which is located at the northwest corner of 87th Street Parkway and Rosehill Road. The recipient of that CID-generated sales tax was Crossroads Operating Company LLC, described by the city as a Stephen Block entity in its Jan. 15 city memo.
Now, Crossroads is selling the property — except AutoZone, which owns its own lot — to Greystone One LLC, which is owned by Barry Pener and his son Piers Pener.
“As part of the sale of the Greystone shopping center, the Owner desires to assign all of its right, title and interest in the CID Agreement to Greystone One, LLC, including the right to receive the CID revenues,” the city memo reads.
The Lenexa council unanimously approved the CID agreement for the new owner. Mayor Michael Boehm recused himself from the vote, citing a potential conflict of interest based on a business relationship. There was no discussion.
With change in ownership and assignment of CID revenues, there is no change to the CID agreement except for a $400,000 decrease in the total eligible private CID reimbursable expenses, according to city records. Reimbursable expenses will drop from $1,817,857 to $1,406,231. State law only allows the interest on the construction of the improvements prior to the change in assignment to be eligible for reimbursement.
It’s not the first time a local commercial property owner has secured rights to a community improvement district revenue stream for a shopping center only to turn around and sell the property a few years later.
An ownership group led by the Cosentino family sold the Village Shops and Corinth Square for a gain of $47 million four and a half years after the city of Prairie Village approved a CID sales tax for those centers.