Lynne Hermansen
Special To The Gardner News
Several measures related to the Homestead Lane Retail District Redevelopment project at Homestead and I-35 were approved Nov. 18 night at Edgerton City Council.
The project will be 42 acres at the southwest corner of Homestead Lane and 199th Street for hotels, a conference center, travel center, restaurants, retail space and office space.
The 20 year agreement with Woodstone Properties for the $24.5 million private TIF Reimbursable Costs and $8.5 million public TIF Reimbursable Costs will be divided 50/50 between the city and developer for the first 15 years.
If the following conditions are not satisfied from years 16 through 20 the city will receive 100 percent of the TIF revenues from those four years, otherwise the revenues will continue to be split 50/50.
TGT Bump Conditions for the On the Go Travel Center, hotels, conference center and three restaurants.
Certificates of Occupancy for an additional 15,000 square feet of office, retail or restaurants by the end of year 15.
Scott Anderson, bond attorney, said it was a big project and the stipulations were the best he had ever seen in Johnson County.
“It’s done a good job of fallbacks,” he said. “If don’t have it all there by year 15 then year 16 the city gets 100 percent.”
Anderson said a lot of places were giving away a lot more.
Don Roberts, mayor, said most TIF agreements don’t have so many fallbacks.
“I am happy we get all that,” he said. “It tells me the developer is intent on making this happen, and we look forward to the partnership.”
In relation to the TIF District a Community Improvement District measure was passed for the Edgerton Crossing Woodstone project.
The city will receive one penny from the additional one percent sales tax added to the district.
The additional sales tax bump is for 22 years beginning in 2023.
Anderson said they had received a petition for the area to be designated as a CID development similar to the Travel On the Go project.
Roberts said he wanted to know how common CID projects are for cities.
Anderson said they were very common and used Olathe as an example.
“They have 14 to 15 districts the last 15 years,” he said. “There is a mixture of incentives and CIDs are a part of the mix of every project.”
Anderson said one percent is as high as Edgerton was willing to go to add to the normal sales tax except for fuel and alcohol sales.
“It doesn’t effect the city sales tax and goes straight to the general fund,” he said. “It’s the same on both sides of Homestead.”
Tim Gates, Gates Realty owner, said during the public hearing he fully supported the project.
Anderson said all CIDs are going to the developer as long as they have eligible incentives.
“I am glad to see something happening on the property,” he said. “I hope it actually happens this time.”
The city will also be levying a six percent transient guest tax on gross revenues from all the hotel and motel visits as part of the development project.
Anderson said the split of tax revenues will be split 50/50 for 20 years between the developer and the City.
If the travel center, two hotels with conference center and three restaurants are constructed prior to Jan. 1, 2029 the developer will receive 75 percent of the transient guest taxes.
The city will also be issuing industrial revenue bonds not to exceed $82 million to pay for the cost of the Edgerton Crossing Project with Woodstone Properties.
Anderson said the city will not be receiving property taxes per Kansas law, but only sales taxes.
“The developer doesn’t pay sales tax on project materials,” he said. “The issue is the individual series of bonds per buildings and or group of buildings.”
Anderson said a public hearing wasn’t required for the IRBs but a published notice was required.
The IRBs are like every IRB issued for the Logistics Park, he said.