Governing body approves Sunflower Crossing redevelopment plan, TIF and CID for South Topeka site
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Summary
The governing body approved the Sunflower Crossing tax increment finance (TIF) project plan, a development agreement with BHI Development Inc. and a 1% community improvement district (CID) to reimburse up to $1.88 million over a capped term; staff said the total project cost is estimated at $16 million.
The governing body voted to adopt the Sunflower Crossing redevelopment project plan and related financial incentives, approving a development agreement with BHI Development Inc. and an ordinance to create a 1% community improvement district (CID) for the South Topeka site.
Deputy City Manager Braxton Copley summarized the project as three buildings at the northwest corner of Topeka Boulevard and Kansas Avenue — a QuickTrip convenience store to be third-party owned, a 3,500-square-foot retail box, and a 6,500-square-foot build-to-suit restaurant or retail space. Staff estimated total project costs at $16,000,000, with a maximum TIF reimbursement of $3,380,000 and a maximum CID reimbursement of $1,880,000. The CID was presented as a 1% sales-tax increment, capped at a 22-year term with an anticipated CID commencement date of Jan. 1, 2027.
Ben Biggin, attorney with Polsinelli representing the applicant DHL Development, clarified the proposed CID distribution: roughly $500,000 would be assigned to the QuickTrip lot to assist horizontal construction costs, with the balance directed to BHI Development. City staff also described contract safeguards in the development agreement, including requirements for updated construction-cost estimates, letters of intent or leases prior to key contract milestones, and a proportional clawback provision if pad-site sales exceed estimates.
Council members asked technical questions about the difference between a "retail box" and other retail uses and sought assurance that the build-to-suit space would produce sales tax revenue. After discussion, Councilman Duncan moved approval and Councilman Dobler seconded. The motion passed on roll call (council recorded a majority yes vote as the motion carried).
The development agreement and CID ordinance both passed; staff noted that the CID reimbursement would be split to support QuickTrip financing and the developer's expenses, and the agreement includes clawback language intended to protect the city's incentive exposure.
Next steps: the city will proceed under the adopted agreements and monitor the developer's compliance with LOI/lease requirements and construction-cost reporting as specified in the development agreement.
