Overland Park committee urges next steps on 236 Metcalf TIF proposal after long discussion on parking, housing and sustainability

The Finance, Administration & Economic Development Committee on an evening meeting voted unanimously to direct staff to prepare a resolution to set a public hearing and to work with Hunt Midwest to develop a TIF project plan and redevelopment agreement for a proposed mixed‑use project on a 1.55‑acre site at Metcalf.

The developer, Hunt Midwest, proposes a single six‑story building with about 226 multifamily units, roughly 5,000 square feet of ground‑floor commercial space and three levels of below‑grade parking totaling about 340 stalls (292 reserved for residents and 48 open to the public). Staff told the committee the applicant is seeking roughly $15.49 million in reimbursable TIF and a related one‑percent CID and a sales‑and‑use tax exemption on construction materials; the TIF request would be paid out over 20 years. The committee’s action directs staff to set the statutory steps (a council resolution to set a hearing and subsequent project‑plan work) but is not a final council approval of incentives or of the project plan.

Why it matters: committee members said the proposal advances the city’s downtown redevelopment goals by adding housing and retail, but the project raises policy issues the committee must resolve before final approval — chiefly the developer’s request to receive 100 percent of the tax increment (staff policy target is 90 percent or below), a land‑reimbursement share of about 42 percent (policy target 25 percent), how resident parking will be managed, and whether the project will deliver attainably priced housing units or an alternative contribution toward housing attainability.

Project details and incentives: Kurt Peterson, representing Hunt Midwest, described the site and design, including three levels of underground parking and a courtyard/amenity deck above the garage. Peterson said the developer’s financial model requires 100 percent of the increment over 20 years to make the underground‑parking solution feasible; staff told the committee the policy target is 90 percent. The developer’s current preliminary sources/uses show about $15.5 million in TIF/CID/EDRB‑type incentives, which the developer allocates largely to the cost premium of underground parking. Staff also flagged an requested land reimbursement share of 42 percent against the policy target of 25 percent.

On sustainability and housing: the developer said it intends to pursue Green Globes one‑globe certification (a sustainability credential) and described the infill and parking‑efficiency benefits of building underground rather than adding stand‑alone parking structures. Asked about housing attainability, the developer said they could not make specific units rent‑restricted at levels the city’s attainability policy contemplates, given the project’s high construction costs tied to underground parking; instead they argued the project adds market housing in a walkable downtown location and increases overall housing supply. The committee asked staff and the developer to continue negotiating potential attainable‑housing approaches and to bring specific options back to the committee.

Parking and public access: committee members pressed the developer on how parking will be assigned and used. Hunt Midwest said its standard practice on comparable projects has been to include at least one parking stall per unit (generally included in rent) and to offer additional stalls for purchase or lease. The developer said 48 underground stalls would remain available 24/7 to the general public. Several council members said they want stronger assurances that resident parking will not crowd public on‑street spaces that serve downtown retail and events; others cautioned against prescriptive controls the city would impose on private parking management. The committee asked staff to work with the developer on parking management expectations as negotiations proceed.

Process and timing: staff explained that the committee’s vote starts the formal municipal steps: if the council sets a date (staff suggested a council resolution to set a February 3 date for a public‑hearing notice and a March 24 public hearing as possible dates), staff and the developer will complete the financial feasibility work, refine a project plan and draft a redevelopment agreement for committee and council consideration. A project plan approval would start the 20‑year TIF clock; the developer said it intends to close on the land in 2025 and anticipates a construction start in 2027 so as not to begin the TIF clock during the project’s pre‑construction period.

Committee guidance and outstanding questions: committee members asked staff and Hunt Midwest to return with more detail on: (1) how the city would measure the financial return from the 100 percent‑increment request; (2) potential alternatives or offsets to meet the city’s attainability goals; (3) certification or a firm sustainability commitment (staff suggested LEED Silver as an example standard to consider); and (4) explicit parking management measures to protect public on‑street parking and support downtown retail. The committee’s motion directs staff to negotiate those elements with the developer and return to the committee and council for formal decisions.

What was decided: the committee unanimously recommended that staff (a) prepare the council resolution to set the public hearing to consider creation of the proposed N‑036 Metcalf redevelopment district, and (b) proceed to negotiate the project plan and redevelopment agreement with Hunt Midwest for further committee and council review. The committee did not approve any TIF, CID or other reimbursements tonight; those would require future committee/council approvals.