Developers of The Retreat on the Prairie, a mixed-use residential and commercial project coming to Ridgeview and K-10 Highway, will be able to tap into public financing to help pay for it.
Located on the northwest corner of K-10 and Ridgeview Road, the development comprises five retail buildings on 15 acres, along with five apartment buildings on about 25 acres.
The Lenexa City Council on Tuesday voted 7-0 to approve public financing for the development, including establishment of tax increment financing, or TIF, as well as a community improvement district.
Councilmember Tom Nolte recused himself from voting and discussion, citing a conflict of interest. There was no public comment during a hearing on the matter.
The Retreat on the Prairie includes construction of the following:
- About 373 apartment units in five buildings
- Internal clubhouse and other residential amenities
- Five commercial pad sites with 19,000 square feet dedicated to retail, restaurant and convenience uses in three buildings
- An 85,000-square-foot, 130-room hotel
- 38,500 square feet for office spaces
- Access roads, surface parking, sidewalks, landscaping and other site development
What’s in the tax increment financing package
Lane4 Property Group Inc., the developer, and the city of Lenexa are eligible to receive reimbursements for certain improvements made on the site of The Retreat on the Prairie.
Funds from the tax increment financing package come from property taxes that are generated on the site, which is part of the Ridgeview Mining TIF District. The city established this TIF district in 1997, according to city documents.
City staff estimate the TIF area for The Retreat on the Prairie will generate about $34.2 million in property taxes over the 20-year term.
Private improvements will be made on behalf of Lane4, and any TIF increment generated from the project will be used to reimburse Lane4 for TIF-eligible costs, for things like construction of commercial and residential portions of the project.
During the 20-year term of the tax increment financing plan, Lenexa is also entitled to receive the balance of the TIF-eligible costs for public improvements, which include things like right-of-way acquisition, asphalt pavement and sidewalks, curb and gutter, storm drainage and sewer extensions, and street lighting as well as public parks.
Pursuant to a development agreement between Lane4 and the city, Lane4 will receive 60% of the TIF revenues, while the city will receive the remaining 40%.
Private reimbursable TIF expenses are expected to be about $26.9 million, while public reimbursable TIF expenses are expected to be about $10 million.
The development agreement has some provisions, including those that say:
- Construction should start in 2023
- At least 200 multi-family units must be substantially complete by 2026
- Retail, office and hotel spaces must be substantially complete by 2025
- At least 50,000 square feet of retail must be substantially complete by 2029
What’s in the community improvement district
Meanwhile, the city has established a community improvement district (CID), which allows the developer to be reimbursed for CID-eligible costs associated with The Retreat on the Prairie.
The CID allows a 1% sales tax over a 22-year period, which is slated to begin July 1, 2023.
Lane4 will receive 100% of the CID revenues generated from the community improvement district, to reimburse those CID-eligible costs, up to a maximum of about $2.7 million.