EDGERTON, Kan. — Developers could soon break ground on a new retail center just south of Logistics Park in Edgerton.
On Tuesday, the Edgerton Planning Commission will discuss if a proposal to develop land near Homestead Lane fits within the city’s comprehensive plan.
In 2019, the city created the Homestead Lane Retail Tax Increment Financing District. On Sept. 9 this year, the Edgerton City Council approved a Development Agreement with Woodstone Properties, LLC to construct a project on the southwest corner of Homestead Lane and 199th Street within the District.
Woodstone Properties’ Project Plan B1 would develop roughly 42 acres of land to include:
- A new travel center (featuring a truck wash and truck maintenance facility)
- Two limited service hotels and a conference facility
- Three fast food restaurants
- One casual dining restaurant
- A convenience store
- Approximately 52,000 square feet of retail space
- Roughly 12,000 square feet of office space
The property is currently zoned C-2 (Heavy Service Commercial) and, according to city documents, fits the proposed mixed commercial retail uses.
The project is estimated to cost $98,290,548. The total development cost will be initially paid through a combination of developer equity and private financing.
If the final plan is approved, the development agreement includes the use of the multiple tax incentive programs including Tax Increment Financing (TIF), the issuance of Industrial Revenue Bonds (IRB), a Transient Guest Tax and the creation of a Community Improvement District (CID).
Tax Increment Financing
Tax Increment Financing (TIF) supports companies by refunding a portion of property taxes to help finance development. If the minimum development criteria is met, Woodstone Properties would be entitled to reimbursement of eligible costs from 50% of incremental property taxes for a 20-year period.
City reports plans incur approximately $8.5 million of TIF-eligible expenses related to construction and installation of publicly-owned infrastructure improvements which serve an intermodal transportation area.
Community Improvement District
The proposed project boundary would be considered a Community Improvement District (CID). The CID would establish a 1% sales tax that would be in place for a 22-year term. The revenue generated by the additional sales tax would be used to reimburse the developer for eligible project costs.
Industrial Revenue Bonds
Tax abatement will not be grating for the project. According to city documents, Industrial Revenue Bonds (IRB) will be issued to enable the developer to utilize a sales tax project exemption certificate.
Transient Guest Tax
Within the proposed project site, the city will impose a 6% surcharge on hotel rooms. The Transient Guest Tax (TGT) will be in place for 20 years. Under the development agreement, Edgerton will issue an annual economic development grant back to the developer equal to 50% of the TGT tax collected.
Once construction is complete on the truck stop, two hotels and at least three of the restaurants, Woodstone Properties will receive 75% of the annual TGT and the city will receive 25% for the remainder of the 20-year term.
If approved by the Planning Commission, the proposal will progress to the Edgerton City Council for a public hearing and final vote. If approved, the developer plans to break ground on the project in spring 2022.