Committee approves development agreement light for Overland Park Regional Medical Center; EDRB resolutions of intent proposed

The committee recommended City Council approval of a development agreement with Midwest Division OPRMC LLC for phased renovations and additions to Overland Park Regional Medical Center and directed staff to advance a master resolution of intent and EDRB documentation.

Staff described two phases: Phase 1 (already underway) is approximately a $40 million reinvestment focusing on surgery, preoperative and post‑anesthesia care (about 9,000 sq ft new and 10,000 sq ft remodeled) with completion planned by Dec. 31 (staff said). Phase 2 is a larger ~$80 million expansion planned to begin around Dec. 31, 2027, adding approximately 65,000 sq ft (two new floors on the medical‑surgical tower), NICU renovation/expansion (~30,000 sq ft) and a rooftop helipad.

The development agreement is a “development agreement light,” staff said, because the only incentive being requested is sales‑tax exemption on construction materials and labor through EDRBs (Economic Development Revenue Bonds). Staff said the master resolution of intent would be for $60,000,000 total; the initial phase EDRBs would be approximately $22,800,000 and the second phase approximately $37,200,000 (bond counsel comments on timing/mechanics to be incorporated later).

Committee members asked whether the exemption would be retroactive; staff said the project exemption certificate issued by the Kansas Department of Revenue applies going forward, but there is a process for rebate of previously paid sales tax if the developer chooses to pursue it. Committee approved moving the item to Council 6-0.