Lenexa on Tuesday gave the okay to final plans for a new medical office building to be operated by the Department of Veterans Affairs.
Located at the northeast corner of 113th and Thompson Avenue in the Southlake Business Park, the Johnson County Veterans Administration Medical Center will be a one-story 31,000 square foot medical office facility.
City documents note the project is to begin early this year with completion in spring 2021.
The city also approved issuing up to $15 million in industrial revenue bonds and a 10-year 50% property tax abatement and related payment in lieu of taxes (PILOT) agreement to help the private developer with construction costs for the project. The building will be leased to the federal government for use as a VA site.
Councilmember Tom Nolte asked for clarification on the issuance of industrial revenue bonds an property tax abatement for construction materials. Curtis Petersen, an attorney representing the developer, said that the city is granting the issuance of bonds, which includes a sales tax exemption on construction materials; however, the city also approved the property tax abatement.
City leaders did allow a deviation from the minimum building setback requirement for the southeast corner of the building; the deviation allows six motorcycle parking spaces instead of four spaces for vehicles.
“It is the VA’s experience at similar sites that there are users who are motorcycle riders,” city staff noted in a memo.
The city council voted 7-0 to approve final plans, bond issuance and PILOT agreement for the project. Councilmember Corey Hunt was absent.