Council approves 1% CID sales tax for redevelopment of Lenexa Point Shopping Center

Lenexa Point Shopping Center

The city of Lenexa on Dec. 17 agreed to establish a community improvement district that adds a 1% sales tax on all retail in the Lenexa Point Shopping Center.

The funds from the sales tax, which kicks in April 1, 2020 and will be in place for 22 years, are to be used for renovations and improvements to the aging shopping center on about 14 acres at the northwest corner of 87th Street Parkway and Maurer Road.

The property owners — HB Building LLC, Penn Properties Holdings LLC and Knewtson Properties LLC — applied for the CID.

The CID will be used to reimburse HB Building, which is also the developer, up to a maximum of $3.5 million for eligible costs associated with the project.

The project includes renovations to the building, improvements to the facade, tenant and building interior, environmental remediation, improvements to the parking lot and access drive areas, landscaping, site work, infrastructure improvements and updated signage.

The shopping center includes the Sprouts grocery store, Hops & Vines and Urban Air Adventure Park, the site of a former Sears Outlet store.

The shopping center was built in 1988.

Ahead of the vote, Councilmember Corey Hunt asked what mechanisms are in place to make sure that the developer is spending CID funds correctly while the community improvement district is in place. Sean McLaughlin, assistant city attorney, said the city’s codes and performance standards require specifications for improvements, and all reimbursed funds that get spent would have to be certified. The CID is set up with a pay-as-you-go mechanism.

After conducting a public hearing the Lenexa city council unanimously approved establishing the community improvement district. There was no public comment.