Construction of a new multi-million-dollar multi-sport complex is set to begin this fall at the Bluhawk development in south Overland Park following the approval of several tax incentives.
Driving the news: The Overland Park City Council on Monday voted to issue up to $55 million in state-approved Sales Tax and Revenue (STAR) bonds to aid in the construction of the Bluhawk Sports Park near West 159th Street and U.S. 69 Highway.
- The council also approved the issuance of up to $113.6 million in Economic Development Revenue Bonds for the facility, with approximately $83.5 million of those bonds going towards financing the first phase of construction.
- Under the state’s STAR bond statute, cities can issue the bonds for projects with commercial, entertainment or tourism value deemed to be a “statewide and regional destination” once completed.
- The debt raised by the bonds is then supposed to be paid back over a set period of time using sales tax generated by the development.
- In total, the development has roughly $168.6 million in total bond issuance supporting the financing for construction.
The details: With the help of STAR bonds, developers Price Brothers Management Co. plans to construct a 435,000-square-foot multi-sport complex in two phases.
- The first phase of the project, estimated at $85 million, includes the construction of 240,000 square feet of the complex, which will have an ice rink, four basketball courts, indoor multi-purpose turf field, fitness center and other related amenities, like food services and locker rooms.
- For phase two, the complex is set to add a second ice rink space and four additional sports courts for basketball, volleyball and pickleball. Total cost estimate for phase two were not made public at Monday’s meeting.
Background: In June 2021, the Overland Park City Council approved a STAR Bond Project plan, which included the multi-sport athletic facility and 670,000 square feet of retail, restaurant and other types of commercial uses.
Council’s discussion: While the tax incentive received a majority of support from the council in a 9-2 vote, a few on the council argued the tourism aspect of STAR bonds did not make sense for a sports complex.
- “This is a local sports complex,” said Councilmember Faris Farassati. “I have difficulty believing… that a bunch of volleyball and basketball courts is such a rarity in the city of Overland Park that we’re going to get regional travelers to come over here.”
- Councilmember Melissa Cheatham said she voted in favor of the incentives because the city had already committed to the Bluhawk project.
- “I think it’s our obligation as a city to carry out our end of the deal on this project,” Cheatham said. “There’s been substantial investment already. Things are underway, so I’m not going to get in the way of any completion of the deal that’s underway.”
What’s next for the multi-sport complex at Bluhawk?
Overland Park Deputy City Manager Kristy Stallings said construction of the complex is anticipated to begin this fall, with the first phase of the development expected to open in spring 2024.
- The initial steps of construction for the complex have already begun, including gathering of construction materials and site preparation.
- The second phase of the project will begin after additional retail development generates enough revenue to support a second series of bonds, Stallings said.
