Lenexa has approved a development agreement with AdventHealth, the next step for the healthcare organization to build a wellness campus at Lenexa City Center.
AdventHealth is under contract to purchase about 27 acres at the northwest corner of Renner Boulevard and West 87th Street Parkway, and the city council last month approved a preliminary plan for the property. The council also approved a special use permit to allow a hospital and helipad on site.
The development agreement sets forth the scope of the project and creates the framework for public financing mechanisms should they be used for the project. It also lays out the responsibilities of both the city and the developer related to the project.
City staff noted that a development agreement is required by city code because the project is larger than 20 acres. The development agreement is formally with Shawnee Mission Medical Center Inc., which has been doing business as AdventHealth Shawnee Mission for the past several months.
The development agreement is based on the approved preliminary plan that generally comprises of about 750,000 square feet of mixed-use development with a hospital and future medical-, wellness- and commercial-related uses as well as office, retail, restaurants, hotel and multi-family residential housing. The project also includes multiple parking structures and related infrastructure.
The project contemplates the use of public finance mechanisms, such as industrial revenue bonds, tax increment financing, community improvement district assistance, and a special benefit district. However, the development agreement merely sets up the framework for public financing but doesn’t commit any public finance incentives to the project. If public finance incentives are used for structured parking, a portion of the parking will be for public use.
Here’s a breakdown of the types of development for the project, which would be completed in multiple phases:
- 350,000 square feet of hospital use
- 215,000 square feet of medical services, wellness and fitness facilities
- 84,000 square feet of nursing home facilities
- 100,000 square feet of commercial and medical office buildings
- 30,000 square feet of retail
- At least 2,000 stalls of parking located in parking structures, surface parking lots and both on-street and off-street areas
The project would be constructed in four phases over multiple years, with the first phase set to begin June 1, 2021. The last phase would begin June 1, 2028.
The Lenexa council unanimously approved a development agreement with AdventHealth. There was no public comment.
Editor’s note: This story has been updated to correct an error. Shawnee Mission Medical Center Inc. is the healthcare organization’s legal name. The organization is merely doing business as AdventHealth Shawnee Mission as part of its new branding; it was not annexed by AdventHealth.