Independence TIF commission hears proposal for 54,000‑sq. ft. Wally's travel center; developers seek about $8.6M in incentives

The Independence Tax Increment Financing Commission on Nov. 12 heard a presentation from Wally’s representatives on a proposed redevelopment of the former Kmart site at the Northeast quadrant of Nolan Road and I‑70 into a 54,000‑square‑foot travel center.

Bond counsel David Martin and developer representatives said the $52–53 million project would include an approximately 54,000 sq. ft. store with about 10,000 sq. ft. of retail, 84 fueling positions and an anticipated 16–20 electric vehicle charging stations. Developer representatives told the commission the site’s redevelopment includes roughly $10 million in off‑site traffic and interchange improvements that are a primary driver of the requested public assistance.

The developers asked the commission to recommend a package of public incentives that, combined, would be capped at about $8.6 million (plus financing costs). The financing package the developers presented combines tax increment financing (TIF) capture, a proposed Transportation Development District (TDD) that would levy 1% additional sales tax on Wally’s sales, and use of a Chapter 100 sales‑tax exemption on construction materials estimated to save the operator roughly $2.3 million. Presenters emphasized the request would not include a city pledge or other city‑backed guarantee; they said the developers would accept underwriting risk and that private debt and equity would supply roughly 84% of the project capital stack.

"This is not a city‑backed, developer‑backed guarantee," Kurt Peterson, the project’s real‑estate finance representative, told commissioners, saying the capital stack leaves the city’s credit off the hook. "The risk is on them, not on the taxing jurisdictions and specifically not on the city."

The development team presented a cost‑benefit analysis showing an aggregate net present value benefit to taxing jurisdictions of roughly $33 million over a 20‑year period and projected the incentive flows would be repaid within about 14 years under current assumptions. Peterson and bond counsel said the TIF capture would split the increment (everything over the base) roughly 50/50 between the taxing jurisdictions and the developer’s reimbursement stream in keeping with the TIF statute’s surplus mechanism.

Wally’s CEO Michael Rubinstein described local hiring, training and community partnerships as part of the project, saying the operator expects to create about 200 permanent jobs and about 150 construction jobs. "We invest in our people and their training," Rubinstein said, adding the company's blended wage for those permanent positions would average about $25 per hour when accounting for managers, hourly staff and benefits.

Developers also disclosed a change from materials previously circulated: an additional CID (community improvement district) that had been anticipated in earlier drafts will not be added on top of the existing Nolan Road CID. Peterson said removing the extra CID reduced the incentive cap by roughly $2 million and that the project team will file a formal amendment and corrected exhibits to reflect that change.

Commissioners questioned the team about payoff timing and underwriting assumptions, and the developer said an underwriter has run initial revenue and bond projections and the financing appears to check out in the current market, but cautioned that bond market conditions can change before closing.

The TIF Commission formally accepted exhibits offered by counsel into the record for the hearing. The commission did not vote to approve the TIF plan at the meeting; instead it voted to continue the public hearing so the amended plan and corrected cost‑benefit exhibits can be filed and circulated. The commission approved a motion to reconvene the hearing on the proposed revised plan on Monday the "20 fourth" at 10:00 a.m. (staff said formal notice and the updated exhibits would be filed before that date).