A “flex tech” development at the former Indian Springs shopping center is on the agenda for the Unified Government Economic Development and Finance Committee at 5:30 p.m. tonight at City Hall.
An industrial revenue bond issue of $25 million is proposed for the development.
A 26.59-acre business park is proposed at the site, with about 350,000 square feet of “flex-tech” office and light industrial space, according to the UG agenda.
Lane 4 Property Group was in charge of redeveloping the former mall at 47th and State Avenue, which has been razed. The mall site is owned by the UG. A new entity, Axis Point Developers LLC, has been formed by principals of Lane4 and other partners for this project, according to the UG agenda.
Under the proposal, the UG would give the title of the property to the developer for $750,000. The UG would give a 75 percent tax abatement for 10 years for all “flex-tech” buildings through this target area, according to the agenda, which meet investment size and minority participation.
The first building would have more than 160,000 leasable square feet, according to the UG agenda and would be completed within two years of closing. If it didn’t meet the deadline, the net percentage tax abatement on the building would be reduced from 75 percent to 50 percent, according to agenda details.
The developer would agree to construct a minimum of 100,000 additional square feet in order to qualify for additional abatements in the second phase, agenda details stated.
According to UG agenda documents, the project is expected to create 150 temporary construction jobs and 350 full-time equivalent jobs.
During a 10-year period, the revenue received from the new development in lieu of taxes are estimated to be about $1.1 million.
In addition, the project is expected to generate about $1 million in sales taxes over 10 years in the “flex-tech” area, and utility revenue generated is estimated at $205,000.
With these proposed actions, the UG would terminate the Midtown Redevelopment District, issue $25 million in revenue bonds for Axis Point Investors and approve a development purchase agreement.
Earlier, the UG discussed the changes to Indian Springs in a meeting on Jan. 31. During the January meeting, UG officials stated the UG probably had spent $20 million over the years on Indian Springs, including a demolition cost of $2.5 million and a purchase price of $7.5 million, along with expenses for moving tenants. For information on the Jan. 31 meeting, visit http://wyandottedaily.com/ug-changes-direction-on-indian-springs-development/.
The meeting is scheduled to be held on the fifth floor of City Hall, 701 N. 7th St., Kansas City, Kansas, after the Neighborhood and Community Development Committee meeting.