Lenexa has approved the tax increment financing project plan and redevelopment agreement for The Lofts at City Center.
The site for the development is located on an acre at the southeast corner of 87th Street Parkway and Renner Boulevard, in Lenexa City Center East Village. A final development plan approved in December shows the mixed-use, multifamily development will have a five-story apartment loft building with about 67 units and 10,000 square feet of office and structured and surface parking.
The eligible reimbursable TIF expenses total about $5.1 million, of which about $2.1 million are for the developer, REAL Property Group, and $3 million are for the city.
The tax increment generated from the project area will be used to reimburse the developer and Lenexa for TIF-eligible costs associated with the project, such as for site development, surface and structured parking and landscaping.
Chief Financial Officer Doug Robinson reported that the TIF increment generated from the project will be a conservative estimate of $3.8 million over the 20-year TIF term. The TIF increment plus other available funds are expected to be sufficient to pay for reimbursable expenses.
The developer is eligible for reimbursement up to 100 percent of the TIF increment for five years, 50 percent for three years, 45 percent for two years, and then 0 percent for the final 10 years. The city, on the other hand, will receive the balance of the TIF increment that the developer is not receiving: 0 percent for five years, 50 percent for three years, 55 percent for two years, and then 100 percent for the final 10 years.
The city’s TIF-eligible costs include land acquisition costs, special assessments associated with public streets and public parking structures.
Here is a rendering of the development:
Sean McLaughlin, Lenexa legal staff, said approval of the plans is the final stage in the process for the developer to receive tax increment financing.
The Lenexa council on June 18 unanimously approved the TIF project plan and redevelopment agreement. There was no public comment.
The disposition and development agreement includes several stipulations such as civic involvement during the TIF term, being a member of the Lenexa Chamber of Commerce, and making an annual contribution of at least 0.5 percent of the annual distribution of TIF revenues to the Lenexa Foundation.
The $14 million dollar project began April 22 and is expected to open in June 2020.