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The Bonner Springs City Council has unanimously approved a 20-year tax increment financing redevelopment project to take place on the northeast corner of Kansas Highway 7 and Kansas Avenue.

“It’s going to be quite significant for our community,” Community and Economic Development director Marcia Ashford said Monday during a public hearing prior to the council’s approval of the development agreement.

Phase I of the Bonner Springs Pointe redevelopment project will encompass 18.4 acres currently being occupied by two churches. The churches will be torn down to make room for six lots and 90,000 square feet of retail and commercial space. Not only is the project expected to bring with it an influx of people and sales tax revenue, it also will open up job opportunities by the hundreds. Approximately 550 jobs will need to be filled during the construction; about 225 permanent jobs are expected be created once Bonner Springs Pointe is up and running, developers say.

“This is going to be a great project, and it will benefit the city of Bonner Springs,” said Shawn E. Stewart, who is representing the developer of the project, KAVE Inc. of Liberty, Mo.

KAVE Inc. will be investing approximately $14 million in the project. Under the agreement with the city, $8 million in property taxes accrued on the development during 20 years will go back to the developer to cover any eligible expenses or special obligation bonds that may be issued throughout the process. The total sales tax generated over the 20-year period, however, is expected to be around $45 million, which will be divided between the city, Wyandotte County and state of Kansas. Bonner Springs anticipates collecting $9.9 million of the sales tax funds.

This project has been on the agenda since November of last year and council members noted how pleased they were to see it come to fruition.

“We’ve waited with baited breath,” said council member Jeff Harrington. “I’m very excited we have a TIF district that’s mutually beneficial.”

The site will include, among others, a Walgreens or other nationally recognized pharmacy and a dine-in and fast food restaurant. Construction plans have been approved, but Stewart said that KAVE, Inc. is still in the process of closing on the 18.4 acres, which must happen before actual construction can begin. Stewart is hopeful everything will be ready to go in the next few months.

“Our goal is to begin this spring,” said Stewart.

A possible phase II will be considered after 20 years depending on how successful the project is.

In other action, the council:

• Approved, 7-0, the minutes from the Jan. 12 meeting.

• Approved, 7-0, claims for city operations for Jan. 26.

• Approved, 7-0, public housing authority claims in the amount of $14, 454.10.

• Approved, 7-0, specifications for the purchase and installation of a new fence for Lion’s Park Ball Fields 2 and 3 and the authorization of city staff to start advertising for bids.

• Approved, 7-0, the use of city streets and facilities for Marble Days on May 2 and Tiblow Days on Aug. 20 to 22.

• Approved, 7-1, with Jerry Jarrett dissenting, a motion to accept an insurance renewal with a three-year rate guarantee from Arrowhead Public Risk for $153,548. This amount is $34,601 less than what was paid last year with the same insurance company.

• Approved, 7-0, a motion to participate in the MARC Community America remodeling loan program, which will provide home equity loans of up to 10 years in amounts of up to $30,000 at a fixed interest rate of 1.35 percent. The only cost to the city will be $250, all of which will go towards marketing and promotional materials for the program.

• Approved, 7-0, an agreement with KDOT to begin work on a major transportation enhancement project on Front Street. The project, which will also include a water line and sewer force main replacement, will cost approximately $808,359. KDOT will fund a maximum reimbursement amount of $500,000.

• Approved, 7-0, an ordinance and resolution authorizing commencement of condemnation proceedings to acquire right of way for a walking trail to be part of the Front Street improvements project. To move forward with this project, necessary easements will need to be obtained from property owners on the west side of 134th Street from Kansas Avenue south. Project Manager Mark Beets said he hasn’t been able to reach an agreement with the owners though he has been talking with them since 2007. Condemnation will proceed should he not be able to acquire easements.

• Approved, 7-0, purchase orders for Wilson & Company for pre-construction management for the Front Street improvements project in the amount of $15,000 and for the Bio-Solids Processing Facility in the amount of $20,000

• Heard City Manager John Helin report on possible state funding cuts, which may include elimination of the local share of the liquor tax. Helin said that, until the Legislature decides its course, the best thing for the city to do is stay calm.

“A lot of people out there are really nervous,” he said. “My recommendation is that we just wait and see, see what the Legislature does and then look at the numbers. I certainly don’t think we’re in a panic mode yet.”

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