Council approves TIF, IRB and CID grant for RISE City Center East project

The Lenexa City Council voted unanimously to approve incentive agreements for the RISE City Center East development, a multi-story mixed-use project the city described as “9 plus story” with approximately 122 residential units, 7,000 square feet of office and retail space and a roughly 2,500-square-foot rooftop restaurant.

City staff summarized the financing package before the vote. "The private reimbursements up to $8,000,000 and the public reimbursements up to $4,000,000 with a projected TIF revenue over the 20 years of $8,200,000," staff said during the presentation. Staff also recommended issuance of industrial revenue bonds (IRBs) of approximately $21,000,000 to provide a sales-tax exemption and explained the city would remain the property owner under a long-term lease while the developer repays land costs via TIF receipts.

Mayor Julie Sayers called five separate motions covering the ordinance approving the TIF project plan, the disposition and development agreement, a resolution of intent to issue up to $21,000,000 in IRBs, a City Center East CID grant agreement and an amended and restated development agreement adding a new development partner. All five motions passed by voice vote.

Staff told the council the CID grant under consideration was a pay-as-you-go grant tied to CID sales-tax receipts; Sean (city staff) said the city projects it could receive "approximately up to 600,000" in CID funds for City Center East. Council members asked whether TIF administrative fees would count against reimbursement caps; staff responded the "admin fees come off the top" and do not count against either total. Council members also pressed the developer—s question about building height; staff said final height (9 to 11 stories) was still under discussion and the developer may return with final plans in the next month or two.

The council—s approvals include an amended development agreement that adds CB RISE LLC as a partner in the project; staff characterized the change as a restatement of terms previously approved during the preliminary plan stage. No members of the public spoke during the public hearing before the votes.

What happens next: staff and the developer will continue refining final plans; council members were told the final plan could return to the council in June or July or be routed back to the planning commission for additional review if needed.