Leawood will delay the start date of collection of a new 1% sales tax for the Ranch Mart North Community Improvement District at the corner of 95th Street and Mission Road until Oct. 1, 2021.
The Leawood City Council voted unanimously Monday night to delay collection of the CIDs sales tax from the original date of July 1, 2020. Trip Ross, a principal with Cadence Commercial Real Estate, the project’s developer, said earlier Monday that he had requested the delay in collecting the tax revenue so construction materials for the project would not be taxed under the CID.
“We want to capitalize on the redevelopment of the project when it’s completed,” Ross said.
Cadence represents the property’s owner, Bob Regnier, who is also president and CEO of the Bank of Blue Valley.
Work on the site has been underway for several months. Demolition of the bowling alley on the north side of the shopping center started almost a month ago, Ross said. The bricks in it are more than 100 years old and were reclaimed from another building. Care is being taken in the demolition to preserve the bricks for use in the redevelopment, giving them “a third life.” Interior demolition on the Ranch Mart North property started last October.
In early January, the council approved final development plans for Ranch Mart North, paving the way for major work to start. The council originally approved establishing the 1% CID in April 2019 to fund certain redevelopment costs for the project. The CID will increase the sales tax from 9.1% to 10.1% for purchases at stores in the shopping center north of 95th Street and will provide an estimated $13.45 million toward the total project cost of $47 million. The CID can stay in effect for up to 22 years.
The project’s scope as described on Cadence’s project website, which includes a “fly-through” video of the envisioned redevelopment, is as follows:
- Complete façade renovation of the entire center and interior remodel of Cosentino’s Price Chopper
- New two-story, mixed-use building with second floor office space above restaurants
- New pedestrian areas and connectivity to maximize safety
- Substantial plaza and event space
- Modern materials and architecture with lush landscaping
- Updated parking areas, islands and lighting
By city ordinance, the developer can request changing the effective date of the CID’s sales tax collection from Oct. 1, 2021, if it gives timely notice to the Kansas Department of Revenue. The developer is required to provide tenant names to the city and the DOR within the time required by the DOR so the agency can notify tenants within the CID when they must start collecting the tax. The developer also is required to provide ongoing updates on the tenant list to the city and the DOR.
Five councilmembers, including Ward 4 Councilman James Azeltine, who participated by phone, were present at Monday night’s meeting, which constituted a quorum. Ward 2 Councilmembers Mary Larson and Jim Rawlings and Ward 3 Councilman Chuck Sipple were absent.