Developers of a cold storage facility under construction at the county’s New Century AirCenter got the go-ahead last week for a 10-year tax abatement to incentivize their investment in the roughly 291,000-square-foot building.
The Johnson County Board of Commissioners on Aug. 21 approved the abatement, which removes the facility from tax rolls except for up to 8% supporting school district capital outlays, and requires payments to be made in lieu of taxes. Those payments start at 46 cents per square foot Jan. 1 and accelerate at 2% a year after that.
Construction on the first phase of the project is substantially complete, and the lease on it has generated $478,058, said Bryan Johnson, director of the Johnson County Airport Commission. Eventually, developers have plans for a total of about 400,000 square feet.
Approval of the incentives for the $75 million project completes a step that began in 2023, when the commission approved its intent to issue industrial revenue bonds. The lease agreement for the 36-acre project at 27302 W. 159th St. was approved in 2023.
A key tenant at the new facility will be Upfield Group, which recently rebranded to Flora Food Group. The cold storage warehouse will be adjacent to Flora’s production plant, also on 159th Street. Flora is known for plant-based food brands such as “I Can’t Believe It’s Not Butter,” “Imperial” and “Country Crock.”
According to a release by developer CJ Logistics, Flora’s products will move to cold storage via an above-ground conveyor. That, plus rail service at the air center is expected to reduce the number of trucks needed and lower emissions, company officials said.
The first PILOT payment of $133,649 would happen in 2026, Johnson said.
Two speakers during public comments — Ben Hobert of Westwood Hills and Charlotte O’Hara of Overland Park — opposed the abatement saying companies don’t generally need tax breaks to make Johnson County attractive.
Hobert criticized the agreement, saying it lacked performance requirements for a specific number of jobs created.
Commissioners were generally supportive, noting that the incentives have been promised since 2023.
Johnson clarified that there is a performance agreement with the developer, but said it requires the company to share data about the number and salaries of employees, rather than require a set number of jobs.
Commissioner Shirley Allenbrand said the airport is an economic driver, with more than 5,000 jobs currently and another 500 by the end of the year. She and other commissioners also noted that the abatement still results in more tax revenue than if the site had remained agricultural land.
Development will also help the rural fire districts and ambulance service, Allenbrand said.
Commissioner Michael Ashcraft disagreed, saying that the incentives undermine the fire districts’ revenue stream and comparing agricultural land to industrial land was a “false argument.”
“The issue is, when this is developed, should it be fully responsible for its tax liability, or should it be given a break?” he said, adding that incentives are more appropriate for properties that are difficult and might not be developed otherwise.
Commissioners approved the incentives 6-1, with Ashcraft in dissent.
