The city of Lenexa has decided to terminate a TIF development agreement with Renner Housing LLC in City Center over the company’s failure to acquire necessary financing or the property to build Renner 87 Flats at City Center.
The mixed-use project, officially titled “Project Plan 4C,” would have been located in the City Center Redevelopment TIF District. It included 250 multi-family units and about 10,000 square feet of retail on 7 acres in the northeast corner of Renner Boulevard and West 87th Street Parkway.
The city council had approved the disposition and development agreement in December 2018. The city amended the agreement in April to allow the developer more time, but the developer failed to acquire the property and financing for the project by the deadline set out in the agreement: June 28, 2019.
The agreement included provisions that terminated the TIF deal automatically, but the Lenexa city council on Tuesday unanimously approved a resolution affirming the agreement was no longer valid. There was no discussion or public comment.
The development agreement allowed for a 20-year tax increment financing plan and reimbursement of those TIF funds. The TIF plan would have allowed Renner Housing to receive 100 percent of the tax increment for the next 12 years and then 50 percent for the following year for construction-related costs.
The proposed resolution does not terminate the TIF Project Plan 4C, but the city reserves the right to terminate it in the future, according to city documents. Any future TIF reimbursement or other incentives will be subject to the city council’s approval.
Total TIF-eligible reimbursements included $13.5 million, of which about $9.5 million were private for Renner Housing and $4 million were public for Lenexa.
City staff confirmed the developer has received no TIF funds for the Renner 87 Flats project. However, the project plan for the site is active, and the city could move forward with another developer on the project plan if another company makes plans to develop the site in the same way.
Another TIF development agreement is required before anyone can receive public incentives for the project.
Additionally, Lenexa had approved issuing $20 million in industrial revenue bonds to finance construction costs. That agreement was repealed as well under termination of the development agreement.
