Lenexa has approved an amendment to a TIF plan for a new residential project in Lenexa City Center.
A new developer, 87 Renner LLC, plans to build a similar project to what the city council had approved in December 2018. The original project called for 250 multi-family units and 10,000 square feet of retail at the northeast corner of 87th Street Parkway and Renner Boulevard. It was never completed because Renner Housing LLC, the original developer, was unable to acquire the property and financing.
The city council on May 5 unanimously approved an amended TIF plan for the new project that updates the feasibility study, increases TIF eligible costs and adjusts the timeline for construction. The TIF increment generated from the project plan area will be used to reimburse the developer and the city for TIF eligible costs associated with the project.
City staff reported that no public hearing was required for the proposed amendment to the TIF project plan because it allowed only minor adjustments to the plan, and not a substantial change.
The TIF project plan’s 20-year term will not change, but the adjustments include lowering the TIF increment estimate from $10.5 million to $8.2 million, and increasing the TIF eligible costs from $13.5 million to $14.1 million. The amendment also includes increases in both public and private costs that rose slightly due to delays in construction.
87 Renner bought the property early this year, according to city documents. Mayor Mike Boehm thanked the Price Brothers, who is behind the 87 Renner development team, for investing in the city of Lenexa. The Lenexa city council will consider at a later date adopting a new development agreement that establishes terms for reimbursement of TIF eligible costs.
Private TIF reimbursable expenses for the developer include costs for land acquisition, site development, parking, landscaping and the like. Likewise, the city would be entitled to receive 100% of the TIF increment from the Project Plan 4C area for reimbursement of its public TIF eligible costs including land acquisition, public parking structures and infrastructure improvements to the 87th Street Parkway and I-435 interchange.
The city requires the project to begin by Dec. 31, 2021 and be completed by Dec. 31, 2023, although the city manager could extend either of those dates by 60 days.