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Lenexa OKs extra 1% sales tax at City Center retail, dining spot

Customers going to shop or dine at the Central Green building at Lenexa City Center can soon expect to pay an extra 1% sales tax on whatever they purchase there.

On Tuesday, the Lenexa City Council approved a community improvement district sales tax for the Central Green MXD project, encompassing the multi-story building at the northeast corner of 87th Street Parkway and Penrose Lane, overlooking the city’s 11-acre Central Green Park.

Central Green CID details:

  • The new CID will last for 22 years, likely beginning this October, according to city documents.
  • The extra 1% sales tax will make the full sales tax for purchases made in that building come to 10.35%, including general city sales tax and taxes set by other entities.
  • Special CID taxes are not uncommon in and around City Center, with most of those districts in the area adding a 1% surcharge. Restaurant Row, planned across 87th Street Parkway, has a 2% CID sales tax.
  • The Central Green project is eligible for up to $2 million in development reimbursements through the CID, but city attorney Sean McLaughlin said it’s more likely to see half of that, bringing in an estimated $1 million over the life of the CID.
Lenexa has approved a special sales tax district for the Central Green building in its City Center area roughly six years after the building was first authorized and a few years after it was completed. This sets up an 1% sales tax for food and goods purchased in this community improvement district for 22 years, beginning most likely in October.
Lenexa has approved a special sales tax district for the Central Green building in its City Center area roughly six years after the building was first authorized and a few years after it was completed. This sets up an 1% sales tax for food and goods purchased in this community improvement district for 22 years, beginning most likely in October. Photo via Lenexa city documents.

Central Green project’s history goes back to 2017

  • The multi-million dollar development itself was first approved in 2017 and covers roughly 65,000 square feet.
  • This is the second set of incentives the council has approved for development on that spot.
  • The first round, approved in 2017, brought the development into the roughly 400-acre City Center TIF district and offered up to $8 million in industrial revenue bonds for the building’s construction.
  • Over the life of the TIF district, the project is eligible for an estimated $4 million in reimbursements, according to city documents from 2017.
  • Construction started in 2018 and wrapped up in early 2019.
Central Green as envisioned in 2017, could house restaurants, offices and retail. Today, it has the Sierra Grill restaurant and a collection of office spaces filled.
Central Green as envisioned in 2017, could house restaurants, offices and retail. Today, it has the Sierra Grill restaurant and a collection of office spaces filled. Image via Lenexa city documents.

Central Green building is filling up

  • These days the building is home to Sierra Grill, a French-inspired American steakhouse.
  • Yaeger Architecture, AgriSompo, Renaissance Infrastructure Consulting and Edward Jones Investments also have offices in the building.
  • Below the building is a parking structure.
  • The Central Green building is on the north side of the Lenexa City Center, which features several different types of housing density, retail and other commercial establishments. 

More Lenexa City Center news: ​​New infrared sauna opens in Lenexa City Center

About the author

Kaylie McLaughlin
Kaylie McLaughlin

👋 Hi! I’m Kaylie McLaughlin, and I cover Overland Park and Olathe for the Johnson County Post.

I grew up in Shawnee and graduated from Mill Valley in 2017. I attended Kansas State University, graduating with a bachelor’s degree in journalism in 2021. While there, I worked for the K-State Collegian, serving as the editor-in-chief. As a student, I interned for the Wichita Eagle, the Shawnee Mission Post and KSNT in Topeka. I also contributed to the KLC Journal and the Kansas Reflector. Before joining the Post in 2023 as a full-time reporter, I worked for the Olathe Reporter.

Have a story idea or a comment about our coverage you’d like to share? Email me at kaylie@johnsoncountypost.com.

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