The first phase of AdventHealth’s new campus at Lenexa City Center could be eligible for as much as $9 million in private reimbursements over the next 20 years, though city staff signaled it would likely only receive half of that.
On Tuesday, the Lenexa City Council voted unanimously to include the AdventHealth City Center project in the already-existent City Center tax increment financing, or TIF, district, and approve the development agreement for the site.
Last week, work on the health campus officially began at the corner of Renner Boulevard and 87th Street Parkway with a formal groundbreaking, though dirt-moving has been happening at the site for months.
Lenexa predicts AdventHealth will get half its eligible reimbursement
- The first phase of work will technically be eligible for about $9 million in private reimbursement through the City Center TIF district, city attorney Sean McLaughlin said.
- However, city projections show it’s only likely to pull in about $4.5 million over the 20-year term of the incentive agreement.
- TIF districts work by turning over tax revenues earned from increased property value — called increments — to a third party to cover or reimburse costs incurred in the development of a specific project or wider area. They usually come with 20-year terms.
- The low reimbursement expected for this phase comes from some tax exemptions provided to health care providers, McLaughlin said.
- In this case, no increments will be generated off the hospital because it’s already exempt from property taxes, according to city documents.
AdventHealth City Center campus expected to have four phases
- The first phase currently underway is expected to take two years and includes the centerpiece 244,000-square-foot, five-story hospital building and a three-story medical office building.
- The full campus is expected to take roughly two decades to build and will ultimately cover about 25 acres.
- When complete, the campus will have the hospital, several thousand square feet of medical services and wellness spaces, plus a skilled nursing and assisted living facility, according to plans.
- Later phases will need to come before the Lenexa City Council for additional approval. Future incentives for those phases are also likely to be considered down the line.
Dig deeper: AdventHealth breaks ground on new Lenexa City Center campus
