Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Agreement regarding City-owned property in the Kansas Bioscience Park.
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title:
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Consideration of a Real Estate Contract and Development Agreement with K-State Olathe Innovation Campus, Inc., and VTRE Development, LLC.
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Summary:
This item was presented as a discussion item at the November 21, 2023, City Council meeting.
On September 20, 2007, the City entered into a Development Agreement with Kansas State University-Olathe Innovation Campus, Inc. (“KSU-Olathe”) and the Kansas Bioscience Authority (“KBA”) regarding the development of the Kansas Bioscience Park. As part of that agreement, KSU-Olathe and the KBA were deeded certain real property to be used for A) construction of the KSU-Olathe campus and KBA Venture Accelerator Building in the Bioscience Park, and B) the sale (at no cost) of portions of the land to bioscience companies for expansion of their operations in Olathe.
In 2019, the undeveloped portions of the KSU-Olathe and (former) KBA property were deeded back to the City. Since that time, the City has worked with the Olathe Chamber of Commerce to attract bioscience companies to expand their businesses within the Bioscience Park.
On March 16, 2021, the City entered into a real estate contract with Integris BioServices, LLC (d/b/a/ KCAS). KCAS acquired 6 acres from the City (north of the KSU-Olathe building) and was granted a right of first refusal within 7 years on an adjoining 5.5 acres north of that property for future expansion needs. KCAS subsequently constructed their biomedical research headquarters on the land conveyed by the City.
On December 7, 2021, the City entered into a real estate contract with Artio Medical, Inc. for an approximately 18.02 acre portion of a 30.82 acre tract at the northwest corner of the Bioscience Park owned by the City. Artio later chose not to proceed with its project and the contract was terminated. That land is still owned by the City.
City staff has negotiated the attached Real Estate Contract and Development Agreement (the “Contract”) with KSU-Olathe and VTRE Development, LLC (“Van Trust”). KSU-Olathe intends to lease a facility from Van Trust which would be constructed on an approximately 10.95 acre tract of land owned by the City within the Bioscience Park which lies north of the former KBA Venture Accelerator Building (now owned by Panasonic) at the northwest corner of S. Valley Road and S. Clay Blair Boulevard.
KSU-Olathe is interested in partnering with Van Trust to develop a commercial office building to be used for bioanalytical testing, advanced manufacturing, and laboratory purposes related to various animal health and food safety initiatives undertaken already by KSU-Olathe in their existing educational research building. Van Trust has constructed similar science and technology-based buildings for various clients throughout the country.
As with the KCAS project, the acquisition would require the Van Trust building to be constructed in accordance with the 2007 Development Agreement as well as the City’s Unified Development Ordinance.
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Financial Impact:
Van Trust would be responsible to pay the remaining special assessments levied against the 10.95 acre tract (currently $306,312.08, which would be prorated at closing).
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Action Needed:
Approve the Real Estate Contract and Development Agreement with K-State Olathe Innovation Campus, Inc., and VTRE Development, LLC.
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Attachment(s):
A. KOIC & VTRE Real Estate Contract & Development Agreement