Roeland Park agrees to sell land at Johnson Drive and Roe for construction of medical building

The Roeland Park city council on Monday approved an agreement to sell the 2.7 acre parcel of land for $1.2 million.

After years of work trying to identify a project that would be a good fit for the land, the Roeland Park City Council on Monday approved the sale of the vacant city-owned parcel at the northeast corner of Roe Ave. and Johnson Drive to a developer for the construction of a medical office building.

A 30,000 square foot medical office building will go up on the site.

The land sale agreement unanimously approved by the council calls for the sale of the 2.7 acre site to SMG Investments for $1.2 million. An exhibit attached to the sales agreement shows a rudimentary site plan calling for a two-story, 30,000 square foot building fronting Roe Blvd. and parking lots to the east with spaces for 129 vehicles. Yvette Guislane Crabtree, MD, president of Mission-based Sunflower Medical Group, said the plan was to develop a medical office building on the land.

The sales agreement does not include provisions for any tax incentives for the development of the property. City officials said they do not expect to receive applications for tax increment financing, community development district sales tax, industrial revenue bonds or any other public financing mechanisms.

The agreement also includes claw-back provisions if the buyer fails to meet the milestone dates set forth in the agreement, as well as a right-of-first-refusal if the buyer should decide to sell the property in the future.

The terms of the sales agreement approved this week call for vertical construction to begin within 90 days of closing, with the buyer required to “diligently prosecute to completion within twelve (12) months of the commencement of vertical construction.”

Roeland Park hired CBC Real Estate Group in 2017 to seek out potential buyers and projects for the land. The city had previously considered a mixed-use office project for the site, but the developer backed out of those discussions.

Ahead of the approval of the sales agreement, Councilman Tom Madigan asked how the city would use the proceeds from the sale, inquiring as to whether they could be allocated to parks improvements or the aquatics center, which the city just assumed ownership of. City Administrator Keith Moody noted that the proceeds were currently slotted to be delivered to the equipment reserve fund, which is the bucket of money from which the city could fund the development of a new public works headquarters. The city council will have the opportunity to discuss uses for the funds as it finishes up its 2020 budget planning in the coming weeks.