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Lenexa approves TIFs, CID and development agreements for AdventHealth City Center expansion
Summary
The Lenexa City Council approved multiple incentives — two tax increment financing project plans, a community improvement district and development agreements — to support additional medical office, parking and mixed-use retail on the AdventHealth City Center campus.
The Lenexa City Council on a May 2025 consent and regular agenda approved tax-increment financing (TIF) project plans 3I and 3J, a 22-year community improvement district (CID) and related disposition and development agreements tied to expansion on the AdventHealth City Center campus.
The measures, presented by City Attorney Sean McLaughlin, provide public funding tools for a 65,000-square-foot medical office building and 465-stall parking garage (project plan 3I), plus a two-building mixed-use retail and office project (project plan 3J). Council also approved a 1.5 percent CID for the Village at City Center North retail/restaurant project and development agreements with Shawnee Mission Medical Center and CBAH LLC to implement the projects.
Council authorized city staff recommendations after public hearings and short presentations from the applicant. Sean McLaughlin, city attorney, said eligible private reimbursements under project plan 3I total up to $9,800,000 while projected TIF revenue over 20 years is $5,700,000, and that the developer must cover any gap between eligible costs and actual TIF receipts. "They have costs which are eligible under TIF law as well as our project plan to be reimbursed of up to $9,800,000. However, the revenue will only be 5.7 [million]," McLaughlin said.
The council record shows the city previously approved up to $22,600,000 in sales-tax-only industrial revenue bonds (IRBs) on the campus and that the new TIFs will operate on a pay-as-you-go basis, meaning developers receive only the TIF revenue that is actually generated over time.
Developer representatives described the retail and restaurant components planned for the two mixed-use buildings. Keith Kopakan of Kopakan Brooks told the council the project would include a first-to-market steakhouse and a 9,500-square-foot restaurant concept called "50 Fourth Street Grill," plus office space above the restaurants. He said leases were not fully signed yet. "We are requesting a 1 and a half percent CID," Kopakan said.
Council discussion referenced past incentives on City Center and Restaurant Row. Councilmember Courtney said she supports the concept but opposes the higher CID rate, saying the city historically limited CIDs to 1 percent. "I am not a huge proponent of CIDs... I wanted to be on record for voting no on this," Courtney said. That objection was recorded before the council voted; the ordinance and agreements passed despite the stated opposition.
Votes recorded in the meeting minutes: the ordinance approving TIF project plan 3I passed (motion moved by John Michael, second by Melanie). The disposition and development agreement (DDA) with Shawnee Mission Medical Center (item 15c) passed (motion by Melanie, second by Bill). Project plan 3J's TIF ordinance passed (motion by Mark, second by John Michael) and its DDA passed (motion by Bill, second by Mark). The ordinance approving the CID for the Village at City Center North passed (motion by Craig, second by Melanie) with at least one councilmember indicating opposition; the related development agreement with CBAH No. 1 LLC also passed (motion by Mark, second by Melanie).
The council directed no further changes in the meeting; staff recommended and the governing body approved the project plans and agreements as presented. Several speakers asked no members of the public spoke during the public hearings on these items.
The approvals authorize the city to pursue the stated project plans and execute the DDAs; they do not obligate immediate city spending beyond the frameworks approved. Projected TIF revenues are estimates tied to future tax increments and do not guarantee that the full eligible reimbursements will be paid — McLaughlin noted developers must finance any gap between eligible costs and actual TIF receipts. The developer said some parking-related costs are covered by the AdventHealth TIF while the CID proceeds would support the developer's retail/restaurant costs.
Looking ahead, the council approved the instruments that allow the projects to proceed and put the legal frameworks in place; the projects will move into implementation and private financing phases with scheduled construction items already underway on the campus.
