bannister & i-435 tax increment financing planmall... · much of the existing mall would have...

D E V E L O P E R : C E R N E R P R O P E R T Y D E V E L O P M E N T

BANNISTER & I-435 TAX INCREMENT FINANCING PLAN

CITY OF KANSAS CITY, MISSOURI

2016 MEDFA Conference

REDEVELOPMENT AREA

HISTORY OF THE REDEVELOPMENT AREA

• The area was once the site of the Three Trails (Santa Fe, California, and Oregon Trails) and the Santa Fe Trail crossed the original property.

• Bannister Mall opened August 6, 1980. After nearly 27 years of operation, the mall closed on May 31, 2007.

• In 2002, the Three Trails TIF Plan proposed a regional retail center, featuring a Bass Pro Outdoor World at a cost of $83 million. Much of the existing mall would have been renovated.

• In 2007, the Plan was amended, instead proposing a $948 million, 3 phase mixed use plan, anchored by an 18,500 seat stadium to be used by the Kansas City Wizards.

Demolition of the mall began in 2009.

In 2011, the Plan was recast as an office and retail center called The Trails. The stadium was deleted.

• In 2013, the Bannister & I-435 TIF Plan was approved by the Council. It is the largest TIF in state history.

• The Plan calls for a $4.3 billion, over 4 million sf mixed-use office campus, consisting of office, daycare, retail, hotel, and data center space, along with parking and infrastructure on a 270+ acre site. Cerner plans to add $16,000 jobs.

• In addition, the Plan provides for a $6 million educational program and $2 million neighborhood program.

Public incentives approved:

•$774 million in TIF

•$317 million in SuperTIF

•$654 million in State supplemental TIF

• In addition, Cerner received a Mo Works incentive for new job creation.

PRIMARY REQUIRED FINDINGS

• But-for analysis - a finding that the area has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing.

• Cost-benefit analysis - a fiscal impact study on every affected political subdivision, and sufficient information from the developer to evaluate whether the project as proposed is financially feasible

• Blight, conservation, or economic development area

BUT FOR ANALYSIS

• Springsted conducted the but-for analysis for the TIF Commission, and concluded that, without public assistance, the project would realize a return of -7.89%. With assistance, the project is projected to realize a modest return of 3.81%.

COST BENEFIT ANALYSIS

• The cost benefit analysis, performed by Springsted, showed a positive impact on all taxing jurisdictions except the Metro Community Colleges.

STATUTORY BLIGHTING FACTORS

1. defective or inadequate street layout;

2. unsanitary or unsafe conditions;

3. deterioration of site improvements;

4. improper subdivision or obsolete platting;

5. the existence of conditions which endanger life or property by fire and other causes; or

6. any combination of such factors

BLIGHTING CONDITIONS

Because of the blighting factors, the area:

1. retards the provision of housing accommodations; or

2. constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use.

DETERIORATION OF SITE IMPROVEMENTS

UNSAFE CONDITION

DETERIORATING SITE IMPROVEMENTS

DEFECTIVE/INADEQUATESTREET LAYOUT

DEFECTIVE/INADEQUATE STREET LAYOUT

DETERIORATING SITE IMPROVEMENTS

DEFECTIVE/INADEQUATE STREET LAYOUT

A-1 MOTEL

CAPITAL INN

Numerous blighting factors

=

conclusion of blighting conditions

BLIGHTING FACTORS FOR THE MOTELS

• Motels used as residences

• Swimming pool that was partly uncovered, creating danger of drowning

• Bullet holes in windows

• Blood stains on towels

• Mud and grime in rooms

• Cockroaches and spiders

• Rat in a pillow

MORE BLIGHT

•Numerous failed health inspections

•Numerous failed fire inspections

•Motels operating without state lodging licenses

• Poor exterior maintenance overall

•One motel was landlocked

• Three homeless camps in the wooded areas behind the motels

AND MORE BLIGHT

•Murder on site

•1,400 calls for police service and 219 criminal activities since 2008

•Prostitution, illegal drug activity and rape of a prostitute by a police officer

•Bus stop for 17 students—motel was residence for 3 registered sex offenders

CONCLUSION

The existing blighting factors:

1. Retard the provision of housing accommodations (no development or growth in the area)

2. Constitute an economic liability (underutilization, lack of reasonable taxes, increased cost to public service providers)

3. Constitute a social liability (murder, prostitution, drug activity, robberies, assaults)

4. Constitute a menace to the public health, safety, morals, or welfare in its present condition and use (numerous unsafe conditions, crime)

RENDERING OF FIRST TOWERS

TOWER 1 UNDER CONSTRUCTION

TOWER 2 UNDER CONSTRUCTION

BOTH TOWERS UNDER CONSTRUCTION

CAMPUS RENDERING

bannister & i-435 tax increment financing planmall... · much of the existing mall would have...

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