The City Council has approved two tax incentive packages for retail redevelopment projects.
When these projects are developed, there will be an increase in the value of the property. The increased site value and investment creates more taxable property, which increases tax revenues. The increased tax revenues are the "tax increment." TIFs dedicate the increased revenue to pay the debt to the city.
Additionally, of the incremental increase in new sales tax revenue from the projects, one-half of the sales tax also will be used to pay back this debt.
The city’s 1/8 cent sales tax for road improvements will remain intact and will not be used.
A TIF is designed to provide funding toward public improvements in partnership with private development in a distressed or underdeveloped area where development is not occurring.
Cherokee South Shopping Center ~ Approved May 2008
Tri-Land Properties sought $3.5 million in tax increment financing for its $23 million project on the southwest corner of 95th Street and Antioch.
The 11.6 acre retail site was originally built in the 1960s.
Improvements include demolition of the former Sun Fresh Supermarket, construction of a nearly 15,000 square-foot free-standing Walgreens, 10,000 square feet of new retail shops, an 1,800 square-foot free-standing building near 95th Street, complete renovation of the exterior, and total reconstruction of the parking lot with landscaping and brick pavers to update the look.
Tri-Land presented its final design plan, and it was approved, at the Oct. 13 Planning Commission meeting.
Demolition and site work is expected to start in November/December 2008, followed by construction of the new buildings and renovation of the current structure in the spring of 2009. The Walgreen's store is expected to open first.
Market Lofts Project ~ Approved July 2008
Paul Gohausen sought $1.5 million in tax increment financing for his $13 million project at 80th and Marty streets in Downtown Overland Park.
Improvements to the now-vacant site include construction of a four-story mixed-use building that will have one floor of commercial retail, three floors of condominium lofts and underground parking for 60 vehicles.
The TIF funding would be used to pay for eligible expenses such as land acquisition, site preparation, sidewalks, driveways, landscaping and utility relocations.
Construction of the Market Lofts is expected to start in October, dependent on bank financing.