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Consultant: proposed KTA interchange could spur development but won’t fully pay for itself
Summary
A consultant presented to Topeka's public‑works committee estimates that a new KTA interchange at 20th/9th & California could generate development worth roughly $63 million over time but that projected tax revenues would not be sufficient to fully bond the estimated $18–19 million construction cost.
A consultant presented to the Topeka public‑works/PI committee that a proposed Kansas Turnpike Authority (KTA) interchange at 20th/9th and California could create development opportunities but would not generate enough tax revenue on its own to fully finance construction.
"If this development program was built today, it'd be worth about $63,000,000," said Andy Feaster, principal with Development Strategies, describing the consultant's baseline market scenario. He said that development could translate to roughly $1,700,000 in annual property tax revenue and about $1,800,000 in annual sales tax from retail and hotel uses, but those revenues would be phased over about 25 years.
Feaster said the study modeled two scenarios: a "market likely" case (development that would occur without the interchange) and an "interchange driven" case (auto‑oriented uses attracted by improved traffic and visibility). He cautioned that interchanges alone are not guaranteed to create broad new economic activity and noted physical constraints in the study area, including flood zones and challenging topography, that limit developable land.
On financing, Feaster reported a 25‑year net present value of approximately $16,000,000 in incremental revenues and estimated a theoretical maximum bondable amount of about $13,000,000 after reserves — short of the $18–19 million construction estimate discussed by staff. "That’s the maximum amount," he said, and added that developer incentives such as CID or TIF districts could divert increment away from paying bonds.
Council members pressed staff on feasibility. Councilman Neil Dobler said he read the conclusions as cautionary: "This doesn't look like a great proposition…we're not gonna be able to pay for the interchange with the future revenues that are generated, particularly if we give incentives of any kind for development." Staff and the consultant replied that the project is currently placed in the city's CIP in 2030 and that the gap opens the possibility of partnerships — with KTA, Shawnee County or private developers — or using city bonding based on the city's credit rather than strictly revenue‑backed bonds.
Councilwoman Sylvia Ortiz asked which of three previously studied locations was the recommended alignment; staff and the consultant said the selected location is at 20th/9th and California to take advantage of existing streets and reduce new road construction. Staff noted an additional KTA gantry would be required but that cashless tolling reduces the need for long approach roads and lowers some costs.
No formal action or vote was taken on the interchange at the meeting. Staff emphasized the project remains in an early stage, is listed in the CIP (placeholder year 2030), and that further outreach and partnership development would be required before financing or construction decisions.
Next steps: staff said committee members can convey support or concerns to KTA and Shawnee County as part of early partnership discussions and that the city will continue to update the governing body as financing options or developer interest evolve.
