A large mixed-use development in De Soto aims at alleviating housing concerns for workers and families near the new Panasonic electric vehicle battery plant.
At a meeting last month, the De Soto City Council discussed an Economic Incentive Application from Lawrence-based Williams Management LLC for a $250 million, 78-acre mixed-use development that will include multifamily residential units and commercial retail space. No action was taken by the council.
The development is planned for a site along the southwest side of 95th Street, a half-mile west of Lexington Avenue.
The project is in response to the Panasonic plant
Adam Williams, owner of Williams Management, said there is a need for housing in De Soto, especially with expectations that the $4 billion, 300-acre facility will employ an estimated 4,000 employees.
“I’m not sure many people were looking at De Soto for development prior to Panasonic,” he said. “Now that it’s been announced and with the activity that’s there, I think it’s going to do nothing but grow the area, and we want to be a part of that.”
De Soto Mayor Rick Walker expects employees at Panasonic will be a mixture of local residents and commuters living outside the city. Regardless of where they’re coming from, he said the need for housing is something that’s been weighing on the city.
“There’s been a lot of residential pressure for (housing), even before the Panasonic announcement,” he said. “(Panasonic) has heightened it.”
At last month’s city council meeting, Williams provided a preliminary sketch of the 1-million-square-foot development.
It will feature about 800 housing units, including one- and two-bedroom apartments, housing for older adults and townhomes. If approved, it would be built in four phases, with an anticipated completion date of 2030.
Developers are asking for tax abatements
At the same city council meeting, Williams submitted a request for a 100% property tax abatement for the first five years and 50% for the following five years, as well as industrial revenue bonds to support a sales tax exemption for the cost of construction materials.
Without the tax abatements, the project would have a tough road ahead, Williams stated in the application.
“Due to the cost of land, labor and materials the project will not (have the) cash flow without the assistance of a tax abatement,” Williams stated.
The request matches the city’s incentive plan, Walker said.
“We understand that it’s a difficult construction market with labor and material costs escalating, and borrowing costs are not cheap,” he said. “In order to encourage (developers) to start that project now, we are willing to offer some incentives to offset those higher construction costs.”
Incentives will be considered later
Williams Management will now work with the city to submit a formal proposal for the incentives.
Williams said the hopes are that it will be approved, and the project can move forward and help alleviate some of the demand for housing in the area.
“I think there’s a need for housing across the country in general. Kansas City and the surrounding areas are no different,” he said. “Projects like Panasonic are just going to increase that amount of pressure.”
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