Gardner has advanced plans for the first phase of a new residential and commercial development proposed on the east side of Interstate 35.
The Gardner City Council on Monday unanimously accepted terms for the first phase of a development agreement for a new 58-acre mixed-use benefit district for Clare Crossing.
Located on the southeast corner of 175th Street and Clare Road, the $22.9 million development proposes bringing more than 250 townhomes and apartments as well as a travel center, hotel, restaurants, car wash, child care center and retail to the area.
Read more about the project here.
What’s in the development agreement
The development includes a 1% community improvement district (CID) sales tax on the commercial areas, to reimburse about $9.8 million in project eligible costs capped at 22 years, according to city documents.
It also includes $5 million in general obligation bonds for infrastructure improvements as part of a special benefit district, according to city documents. The bonds will be repaid through assessments levied on the land, while the assessments paid by the developer will be passed to third parties.
The land developer plans on a roughly $3.6 million contribution for its portion of off-site improvements and then will sell the buildable pad sites to third parties for commercial and residential development.
The proposed 27.5-acre commercial development includes:
- A travel plaza express center
- A hotel
- Four or five restaurants with drive-thru options
- A car wash
- A child care facility
- About 41,500 feet of additional retail space
The 18-acre residential side of the development, according to city documents, will consist of approximately 255 townhomes and apartments with two and three bedrooms. Additional neighborhood amenities will include a clubhouse, a pool, a dog park, a playground, enhanced landscaping and an internal walking path.
The remaining 12.5 acres of the project is for stormwater and public infrastructure.
City road improvements for the area include:
- Right-in, right-out access at Clare Road and Claremont Court, and 175th Street and Clare Crossing Drive
- Full access at the Clare Road and 177th Street intersection and 175th Street and Harmony Road
- Traffic signal at 175th Street and Harmony Road
Early construction is expected to begin late this year.
Below is a video recording of the meeting. Discussion of Clare Crossing begins at 30:39.
Project had been on the table “for a while”
Tom Kaleko, principal adviser with Baker Tilly, said the project had “been on the table” for a while. The Gardner Planning Commission approved the project January 2024 and the Johnson County Board of Commissioners originally approved the rezoning and preliminary plan in March 2024, due to its proximity to the New Century AirCenter.
Kaleko said that since that time, the original project cost of roughly $18.8 million increased by nearly $5 million, mostly due to a spike in costs for building the public infrastructure associated with the project. He added that’s why the incentive district is necessary, because it’s uncertain how much revenue the project could generate on its own.
“The most significant challenge to this project is the extremely high cost of public infrastructure,” Kaleko said. “We are building internal infrastructure. There is also a $3.5 million contribution to the external roads—that is just a huge burden, and so it is not surprising to us.”
Steve Shute, councilmember, shared his concerns about “the burden” the developer would be undertaking with the special assessments and how reimbursements would be handled.
“Is there a backstop on that?” Shute asked.
Rick McConnell, public finance attorney with Kutak Rock, said they also shared the same concerns.
“Our goal was to make sure we all just moved in baby steps together,” McConnell said, noting that the development agreement ensures protections are in place. “We are not obligated to build off-site roads until the money is there.”
McConnell said when it comes to the special benefit district he is “very cognizant” of cities getting stuck with debt.
“We want to make sure that doesn’t happen,” McConnell said, adding that the agreement allows some flexibility should the project evolve over time.
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