The city of Mission has once again sent a default notice giving the developers of Mission Gateway 60 days to pay overdue property taxes or risk termination of their latest redevelopment agreement.
According to county tax records, Aryeh Realty LLC, a subsidiary of the Cameron Group, owes $447,700 in property taxes that were due May 10.
Those taxes have not been paid on six tracts of land making up the beleaguered project and interest is beginning to accrue.
“Timely payment of taxes has been a long-standing requirement in all the redevelopment agreements approved for the project, including the agreement approved in January, 2023,” said City Administrator Laura Smith in a statement emailed to the Post. “As such, the city continually monitors the payment of the taxes by the property owner and takes appropriate action where necessary.”
The New York-based developers have been late on paying local property taxes in past years (and Mission has issued default notices), but this latest missed payment comes as the long-troubled project’s future is in doubt after a bank moved to foreclose on the property last month.
Mission wants to meet with developers this month
According to terms of the latest redevelopment agreement for the project, which was approved by the city council earlier this year, New York-based Aryeh has 60 days to pay before further action is taken.
If that doesn’t happen, “the city can exercise all rights and remedies under the agreement, including termination,” the city’s statement said.
Mission Mayor Sollie Flora has called for a meeting with the developer at 6:30 p.m. Wednesday, May 24, to update the council on the situation.
Aryeh has been late on paying taxes before
For 2022, county real estate taxes were due December 20, but Aryeh had the option to pay half then and the rest by May 10, 2023.
The first installment was paid in full but about a month late.
It’s the second installment that is now late and has prompted the city to send its default notice.
Aryeh has been late on previous years’ tax payments, too.
For the 2021 taxes, two payments were made on December 30, 2021, and May 26, 2022. In the 2020 tax year, the payments came on May 15 and June 4, 2021.
Developer Matt Valenti of the Cameron Group did not return the Post’s calls for this story, and no other Aryeh officials could be reached.
There have been recent signs of serious trouble
The mixed-use development at the confluence of Johnson Drive, Roe Avenue and Shawnee Mission Parkway was once the location of the Mission Center Mall and has had a long history of setbacks since being purchased in 2005.
Construction of a parking structure and large entertainment complex came to a halt during the pandemic, and the prominent site has remained partially built and mostly inactive over the past three years.
In April, New York-based Metropolitan Commercial Bank sued Aryeh, a subsidiary of developer Cameron Group, for delinquent mortgage payments.
The suit alleges Aryeh defaulted on its obligations on a $26 million loan beginning with a deferred interest payment of $340,000 that was due November 1, 2022.
We’re on the fifth iteration of the Gateway plan
The foreclosure suit happened just a few months after the developer reached a revised agreement with the city of Mission.
The $268 million project was approved in January for a new redevelopment agreement that included a 2% special sales tax district and special obligation tax increment financing bonds to get construction started.
Those bonds came with the requirement that construction resumes within four months of the issuance of the bonds.
So far, the city has not issued any bonds for the project.
Roxie Hammill is a freelance journalist who reports frequently for the Post and other Kansas City area publications. You can reach her at roxieham@gmail.com.
