Focus Area: Legal
Staff Contact: Ron Shaver
Subject: Ordinance a TIF District at the northeast corner of Santa Fe Street and Mur Len Road.
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title:
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Public hearing and consideration of Ordinance No. 24-36 establishing a redevelopment district at the northeast corner of Santa Fe Street and Mur Len Road pursuant to K.S.A. 12-1770 et seq.
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Summary:
On July 24, 2024, the City received an application (Attachment A) from Rosebud Partners, LLC (“Rosebud”) for creation of a tax increment financing (TIF) redevelopment district (Indian Creek Crossing) pursuant to K.S.A. 12-1770 et seq. (the “TIF Act”). The proposed TIF district would be located at the northeast corner of Santa Fe Street and Mur Len Road. Rosebud has also submitted a petition to create a Community Improvement District (CID) pursuant to K.S.A. 12-6a26 et seq. A resolution to provide notice of a public hearing to create the CID will be scheduled for consideration by the governing body at a later date.
The proposed redevelopment district plan included with the application includes acquisition of real property, demolition of certain existing improvements, and the development and redevelopment of property within the district, including: the redevelopment and improvement of certain real property within the City generally located at the northeast comer of the intersection of 135th Street and S. Mur-Len Road, to consist of a retail development containing approximately 115,000 square feet of retail/commercial uses, including entertainment, restaurant, retail, office, medical office, and/or other similar, related or appurtenant uses, along with all associated site work, infrastructure, utilities, storm water control, access, street improvements, landscaping, lighting, parking facilities, and any other items allowable under K.S.A. 12-1770 et seq., as amended.
On August 6, 2024, the governing body adopted Resolution No. 24-1035 providing for the notice of a public hearing to consider creation of the TIF district on September 17, 2024. After the public hearing is conducted, the governing body would consider adoption of an ordinance (Attachment B) to create the TIF district. The ordinance memorializes the following findings of the governing body:
(a) due notice of the public hearing was made in accordance with the TIF Act.
(b) the real property within the proposed TIF District does not contain any real property that was not designated in the notice of public hearing given as required by the Act and Resolution No. 24-1035.
(c) based on the Blight Study (included with the application), the Redevelopment District is an eligible area for being designated as a redevelopment district pursuant to the Act because the real property is in an area within the City that constitutes a “blighted area” and is therefore an “eligible area” under the TIF Act.
(d) the conservation, development or redevelopment of the Redevelopment District is necessary to promote the general and economic welfare of the City.
At a later date, the governing body would consider adoption of an ordinance to adopt a TIF project plan and approve a redevelopment agreement.
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Financial Impact:
Total investment in the Indian Creek Crossing project is anticipated to be over $26.4 million, of which approximately $16.12 million would be eligible for reimbursement from TIF and CID proceeds. The developer has proposed to be reimbursed up to $7 million from TIF and CID proceeds, or approximately 26.5% of total redevelopment project costs.
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Action Needed:
Conduct the public hearing. Approve Ordinance No. 24-36 establishing a redevelopment district pursuant to K.S.A. 12-1770 et seq.
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Attachment(s):
A: TIF Application
B: TIF Ordinance