Hallbrook North — a $765 million development of high-rise office buildings plus a hotel, child care building and apartments proposed near State Line Road and Interstate 435 — got a unanimous thumbs up from the Leawood City Council on Monday night.
The development by VanTrust Real Estate is the largest to date proposed for Leawood, said City Administrator Diane Stoddard. It comes with a $125 million ask for a variety of incentives, which councilmembers also appeared to view favorably.
As Monday’s meeting ended, councilmembers also unanimously voted to move forward on the incentives by establishing a redevelopment district. Actions and public hearings on the specific incentives will follow in the next couple of months.
Hallbrook North is envisioned as a densely populated work and living space in an area that encompasses 34 acres at the northwest corner of State Line Road and College Boulevard. The site’s northern boundary is Interstate 435, and Leawoof Dog Park is at its western edge.
The development would consist of 11 buildings with 1.48 million square feet to be constructed. The linchpin is a 12-story, 444,000-square-foot office building designated as an office headquarters.
Although an official announcement has not yet been made, the insurance brokerage firm Lockton was mentioned at the meeting as a likely tenant.
Julie Gibson, chief of marketing for Lockton, attended the meeting and told councilmembers that the company’s growth has made it necessary to find new space for the Kansas City-based company, which now resides on the Country Club Plaza.
“We’re looking for a long-term home where we can continue to invest in our associates and in our clients and make meaningful contributions to our communities,” she said, calling Hallbrook North “a special site.”
“The decision that you’re considering tonight really is getting us one step closer to making that long-term decision in our next chapter of growth,” she said.
What else is included in the project?
Other buildings proposed as part of the project include:
- An expansion of the headquarters with eight stories and 258,000 square feet
- A hotel with 145 rooms and six stories
- Two multifamily residential buildings with 225 units each
- A child care center
- Three retail or restaurant buildings
- Another office building
- A corporate retreat center
The project would be built in two phases. Some 3,673 below-ground and structured parking spaces are planned.
Four of the buildings require deviations from Leawood’s ordinance limiting height in a mixed-use district to 90 feet. Those buildings are the office headquarters at 200 feet, the phase 2 office expansion at 140 feet and the two apartment buildings, each at 120 feet.
Councilmembers said the proximity to the interstate highway made the height more acceptable.
“If we’re going to build anything this tall anywhere in Leawood, it belongs along 435 in my opinion,” Councilmember Lisa Harrison said.
Nearby residents raise flooding worries
The city council discussed the particulars of traffic patterns, but stormwater management and persistent backyard flooding in the area drew the most attention of the commenters who spoke during the public hearing.
Nicholas Dixon and Albert Ray told the city council their backyards flood routinely whenever heavy rains fall and Indian Creek is running high. They were concerned that the development would exacerbate the problem.
That was echoed by Rich Lumpkin and Keith Petite, who showed phone pictures and video of backyards in the area north of the interstate flooding. Another speaker said sometimes water rises quickly to five feet in her backyard.
Judd Claussen, of Phelps Engineering, later responded to those concerns, telling councilmembers that the project wouldn’t worsen the residents’ existing flooding problems. Developers plan to move the stormwater out quickly rather than catch it in a detention basin, which experts said could make the flooding worse, he said.
Another resident, Sharon Jankowski, was more concerned about the noise and potential disruption at the project, which is near her home.
“It is huge, and it is going to affect all the neighborhoods in that area,” she said of the development. “Please use some caution, and please involve the neighbors.”
Of the nine people who spoke, one expressed no reservations. That was Stephanie Meyer, president of the Leawood Chamber of Commerce.
The project comes with financing incentives
The city council approved the rezoning to mixed-use before moving on to consider setting up a taxing district for the incentives.
The incentive package may include $88.7 million in tax increment financing, which draws on property tax increases that come with a development’s improvements in property values.
The proposal is for 95% of the TIF money captured to go to the developer and 5% to the city.
A community improvement district would impose a special sales tax of no more than 2% within the district, to raise an estimated $5.6 million. Also, a hotel guest tax within the district would raise $16.1 million.
The developer is also asking for economic development revenue bonds that would save $14.6 million in sales tax on certain building expenses, such as construction materials and furniture.
Councilmembers approved the taxing district unanimously with relatively little discussion, and they were enthusiastic in their praise of the development overall.
Councilmember Mary Larson called the development “transformational” and “a landmark entrance to Leawood.”
Councilmember Julie Cain reflected on how the city has grown from a “tiny village” and said the project will help the city continue to grow.
“Leawood doesn’t play checkers, it plays chess,” she said.
The next steps involve public hearings and action on the specifics of the incentive package. The TIF plan is scheduled for review by the Leawood Planning Commission on Oct. 28.
Other development news just down the highway: Overland Park advances $280M incentive package for Black & Veatch HQ redevelopment
