Developers of the former CenturyLink site in Overland Park have begun the process of getting tax incentives for construction of a third office building.
The Overland Park City Council will likely consider a tax abatement and sales tax breaks in February for the third of three office buildings to go up at Nall Avenue and Interstate 435. The 10-story CenturyLink building formerly at that address was imploded in 2017.
Developer Overland One LLC intends to put a four-story, 108,000-square-foot office building on the space, along with a 386-car garage. If approved the construction would start next summer, said David Rezac of Van Trust Real Estate, on behalf of the development company.
The developer has asked for a 10-year, 25 percent property tax abatement for the $37 million project, as well as economic development revenue bonds to exempt construction equipment and furnishings from sales tax. The sales tax savings for the developer would amount to $2.1 million, with about $263,600 coming out of the city’s share of potential sales tax. The council’s Finance Administration and Economic Development committee directed staff to draw up the papers for full council consideration and a public hearing.
Earlier at the same committee meeting, developers for a project just down the road reported difficulties finding office tenants in a changing market. The committee gave approval for that project, at Interstate 435 and Metcalf Avenue, an extra two years on its deadlines.
The third building at Overland One would be erected on spec, a rarity in the office real estate market. But Rezac said leasing has gone well on the first two buildings. He said he expects both buildings to be 100 percent occupied within the next four or five months.
Part of that has been due to the continued success of wealth management company Creative Planning. That company expanded so quickly that it needed more space than the first building.