Updated: Wednesday, March 25 at 3 p.m.
An incentive district to help cover the cost of apartments and retail at the site of a former downtown Overland Park Winstead’s hamburger joint is moving forward.
On Monday, the Overland Park City Council voted 11-0 to establish a tax increment financing (or TIF) district covering the vacant property at 8036 Metcalf Avenue and the existing UMB Bank building nearby.
Hunt Midwest, the developer, plans to build a six-story mixed-use building with about 225 apartment units, 5,000 square feet of retail space and a below-ground parking garage with some access for public parking.
Councilmember Logan Heley, who represents this portion of the city, called it a “very exciting project in downtown Overland Park,” adding that he’s happy to see “over 200 units of housing coming to this key part of our city.”
In a TIF district, tax revenues earned from increased property value go to a specified third party, like a developer, to reimburse costs incurred in the development of a specific project. For the 8036 Metcalf project, an estimated $15.5 million in reimbursement could go to the developer over the 20-year term of the district.
Later, the city council will also have to take action on other incentives planned for the project and adopt a project plan tied to the TIF district and a formal redevelopment agreement.
Councilmember Jeff Cox was absent from the meeting on Monday.
Original story, published Tuesday, Feb. 4:
Details for possible local economic development incentives for a planned apartment and retail mixed-use development in downtown Overland Park are taking shape.
On Monday, the Overland Park City Council unanimously voted to set a March public hearing date for the redevelopment district. Located at 8036 Metcalf Ave., the site was a former Winstead’s hamburger joint.
Scheduling the hearing is a key first step in forming a tax increment financing, or TIF, incentive district, but it does not guarantee its establishment.
“This is exciting, to move this forward,” Council President Holly Grummert said of the development, noting that it ties into the city’s visions for downtown Overland Park and housing goals.
8036 Metcalf to have apartments, retail
- Hunt Midwest, a Kansas City development firm in the Hunt family’s wider portfolio of businesses, wants to build a six-story mixed-use building featuring housing in the upper levels and retail shops on the ground floor.
- A total of about 225 apartments and 5,000 square feet of retail space are planned for the project.
- There is also public and private parking planned for under the building.
TIF district would include nearby UMB Bank building
Hunt Midwest intends to include both the former Windstead’s property at 8036 Metcalf as well as the neighboring UMB Bank building that also houses the Atomic Cowboy restaurant in a TIF district.
If the city allows it to eventually go forward, then the TIF district could be considered a redevelopment area because the bank building is at least 65 years old. (That UMB branch was renovated extensively a few years ago, but the original building remains.)
In a TIF district, tax revenues earned from increased property value — or increments — go to a third party to reimburse costs incurred in the development of a specific project. These districts are typically limited to 20 year lifespans and are in clearly defined geographic boundaries.
In the case of the proposed TIF covering 8036 Metcalf, an estimated $15.5 million in reimbursement could go to the developer over the 20-year term.
Some concerns about the project remain
- The vote sailed through the council Monday without much discussion. However, that’s not necessarily an indicator of easy passage ahead.
- At a Finance, Administration and Economic Development Committee meeting last month, several councilmembers were concerned about the lack of an affordable housing component in Hunt Midwest’s plan and a more concrete promise for a sustainable building.
- Even Grummert, who was positive about the development Monday, was worried in January about the parking plan for the project and its impact on downtown parking in general.
Next steps:
- The public hearing for the TIF district is set for March 24 during a regularly scheduled city council meeting.
- Down the line, the finance committee and then the city council will also need to consider a redevelopment agreement and a project plan tied to 8036 Metcalf Ave.
- Additionally, the city council has to consider forming an overlapping 1% Community Improvement District special sales tax and a sales tax exemption on construction materials, both of which Hunt Midwest has requested.
- If ultimately approved, developers hopt to start construction on the 8036 Metcalf project in 2027.
More on 8036 Metcalf: Overland Park clears plan for apartments on Metcalf site where Winstead’s once stood
