The Grandview Tax Increment Financing Commission on Wednesday voted 9-1 to recommend approval of $61 million in TIF for a $300 million youth sports-anchored mixed-use development on the north side of Missouri Highway 150 between Byars and Kelley roads.
If approved by the Grandview Board of Aldermen on June 14, the TIF will become part of a $78 million public support package for the $234 million portion of Gateway Sports Village that excludes a residential development component consisting of a 250-unit multifamily development and 40 single-family homes.
The project is being developed by PG LLC, which includes former Kansas City Chiefs all-pro safety Deron Cherry; Shane Hackett, executive director of the Overland Park-based Heartland Soccer Association; and Kurt Pycior, a commercial builder and developer.
The development calls for 12 lighted artificial-turf soccer fields; an 86,000-square-foot fieldhouse; three hotels with a total of 540 rooms; and 334,000 square feet of mixed-use space, including 21,000 square feet of restaurants.
Ultimately, the developers also plan to incorporate additional commercial space and a water park into the sports village.
Construction of the first phase is scheduled to begin in July, with completion expected in June 2018. it will include the soccer field and 154,000 square feet of mixed-use development.
Grandview City Administrator Cory Smith said that 21,000 square feet of the first-phase mixed-use space could become either offices or apartments. The TIF Commission member representing Mid-Continent Public Library cast the only vote against TIF for the project because of a library policy against supporting incentives for projects that include (or might include) residential.
TIF diverts all new property tax revenue and 50 percent of new economic activity revenue generated by a project to cover eligible development expenses.
In addition to TIF, the city has approved a 1 percent community improvement district sales tax surcharge projected to bring in $8.9 million for the project over 27 years. Hotel and motel taxes will bring in an additional $8.1 million.
Smith said the the net present value of all incentive revenue to flow to the project over 27 years is $43 million. That represents a public financing investment of about 18.4 percent, Smith said.
The TIF vote for Gateway Sports Village follows approval earlier this year of incentives for Paragon Star, another youth sports-anchored development proposed in Lee’s Summit.
In March, the Lee’s Summit City Council approved $13 million in TIF for the $212 million first phase of that $400 million project at View High Drive and Interstate 470. The Paragon Star TIF approval followed the City Council passage of two other project incentives — transportation development district and community improvement district sales tax surcharges.
Rob reports on real estate and development.