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Tuesday, April 2, 2019
Overland Park council signals more tax breaks coming for CityPlace corporate campus

  

By: Katy Bergen

Source: https://www.kansascity.com/news/politics-government/article228724174.html

CityPlace developers may have yet to secure tenants for the second of four office buildings planned near U.S. 69 and College Boulevard.

But Overland Park City Council members, eager to attract businesses that pay higher rents and salaries, have already pledged tax breaks for the next phase of the mixed-use development under construction.

Council members approved a resolution Monday declaring the city’s intention to issue up to $30 million in economic development revenue bonds — which provide sales tax exemptions on construction materials — for the CityPlace Corporate Centre I building developed by Block Real Estate Services.

The resolution also authorized a 10-year, 25 percent property tax abatement for the proposed 125,912 square-foot office building. Of the four office buildings, this one is expected to be built closest to College Boulevard. Once the building is completed, its annual property taxes will increase from $11,500 to $90,000, city staff estimate.

The vote was 10-2, and several council members said the incentives would help draw tenants. Council members Faris Farassati and Gina Burke voted in opposition.

The city has also offered to increase that property tax abatement to 50 percent for tenants occupying at least 20,000 square feet and paying employees an average annual salary of $65,000. Any potential tenants currently based in Overland Park would need to show they would create 100 new jobs to be eligible for the additional abatement.

The incentives are contingent on several factors that have yet to be negotiated, including a payment in lieu of taxes agreement and a lease agreement between the city and developers. Overland Park would not be on the hook for repayment of the bonds, and city staff have reserved the right to approve tenants occupying more than 10,000 square feet of space.

Full Article: https://www.kansascity.com/news/politics-government/article228724174.html

Tags:    Kenneth G. Block   Aaron Mesmer   Office Space   Block Development Company   Block Construction Services   Commercial Real Estate   commercial real estate development   Commercial real estate investments   BRES   City Place   CityPlace