OVERLAND PARK, Kan. — Plans are now in motion to create a new massive mixed-use development featuring apartments, retail and office space in Overland Park.
Monday the Overland Park City Council approved a redevelopment plan for the construction of a seven story mixed-use development to be built at the corner of 108th Street and Metcalf Avenue.
Metcalf 108 Redevelopment Investors intend to create a seven-story building that would include 1,773 square feet of retail space on the ground floor and 9,934 square feet of office space on the second and third floors. The top four floors would be dedicated to 220 apartments, ranging from studio to two-bedroom units.
“I think the project is in line with Vision Metcalf, achieves above average environmental performance and is the first project to make any sort of progress toward our need for housing,” Councilmember Melissa Cheatham said.
In 2017, the city established the Metcalf 108 Tax Increment Financing (TIF) District that covers approximately 4.4 acres located at the northeast corner of I-435 and Metcalf Avenue. Later that year the council approved an agreement with the developer to demolish the former 435 Overland Park Place Hotel and construct a new Staybridge Suites hotel in its place.
The new apartment complex and retail space will be built to the west of the existing Staybridge Suites hotel. Based on a feasibility study, the mixed-use project is expected to generate roughly $11.5 million in TIF revenue over a 20-year period.
In addition to the TIF financing, the city will issue $17.1 million in Federally Taxable Private Activity Revenue Bonds to support the project and grant the developer sales tax exemption for construction materials.
The council also approved the creation of a Community Improvement District (CID) on the property. The new CID will collect an additional 1% sales tax on purchases made within the district to reimburse the developer up to $ 1,052,000 for improvements. Rent at the proposed apartment complex would not be subject to the 1% sales tax .
Curt Peterson with Polsinelli spoke on behalf of the developer Monday night. Peterson said with the financing approved, construction on the project is expected to begin sometime in October.