Part of the CityPlace mixed-use development in Overland Park will get more economic incentives than initially anticipated.
Earlier this week, the Overland Park City Council voted 11-0 to adopt a resolution of intent to issue up to $6.8 million more in revenue bonds for the fourth phase of the CityPlace Corporate Centre project.
Councilmember Sam Passer was absent from the meeting.
The vote on Monday follows an amended application from Block Real Estate — CityPlace’s developer — asking for more economic development revenue bonds. Block cited “excess costs” as the reason for the request.
CityPlace is a mixed-use development
- The project is on the southwest corner of College Boulevard and U.S. Highway 69.
- CityPlace kicked off formally in 2017 with a groundbreaking, but the development plans have changed a few times over the years.
- Today, CityPlace features office, apartments and retail elements.
Why is CityPlace asking for more incentives?
The extra bonds Block has asked for are going toward one of the phases of the CityPlace office development, located south of Switzer Road and west of US-69.
The building has a lease with health care technology firm WellSky Corporation, which sublets some of the space to Anderson’s Grain and IMA Financial Group.
Late last year, Overland Park signed off on nearly $52 million in bonds for this phase of the project, which was also tied to a 50% property tax abatement. However, that amount proved insufficient.
According to city documents, “enhanced tenant improvements, supply chain material costs, labor costs and inflation” all contributed to escalated costs.
With that in mind, the developer requested an additional $6.8 million in bonds.
Those additional bonds do not change the terms of the property tax abatement the city already reached with the developer in the past.
The amendment to the incentive agreement did require a public hearing, but there were no speakers.
Next steps:
- The resolution the city council adopted on Monday merely registers the city’s intent to eventually issue the additional bonds.
- Another city council action will be required for the bonds to be actually issued.
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