KCRag Forum

TIF sought to support Costco-anchored development in Northland
Jun 8, 2016, 1:03pm CDT

MD Management Inc. plans to seek tax increment financing to help cover $65 million worth of public infrastructure improvements needed to serve its Costco-anchored Platte Purchase development project in the Northland.
The Tax Increment Financing Commission of Kansas City's board on Wednesday voted to start the TIF process by approving a funding agreement that details costs the developer will pay the commission for services associated with the TIF plan.

MD Management plans to seek tax increment financing to cover $59 million of the estimated…
Jim Bowers, a White Goss PC attorney representing MD Management, said the developer will be seeking TIF reimbursement of $59 million for the infrastructure costs, which it will front the money. TIF allows new tax revenue generated by a project to be used to cover eligible development expenses.

The remainder of MD Management's $65 million in infrastructure costs is expected to be covered through city Public Improvements Advisory Committee funds and other public sources Bowers said.

In March, the city and MD Management announced that Costco Wholesale Corp. planned to build its first warehouse club in the Northland at the southeast corner of Missouri Highway 152 and North Platte Purchase Drive.

Bowers said dirt work for the new Costco would begin this month or next, with construction scheduled to start in August. Costco is planning to open the new location in spring of next year, he said.

Bowers said the Platte Purchase TIF area also encompasses the other three corners of M-150 and Platte Purchase Drive, where further retail uses are planned; 80 acres that MD Management has donated to the Platte County R-3 School District for two future schools; and a portion of the MD Management's planned Bittersweet Farms residential development.

The TIF area is located within the 14,000-acre portion of the Northland that Kansas City is helping to open up for development through a $43 million sewer expansion project.

"Kansas City promised our residents our investment in the Northland's water and sewer infrastructure would bring growth to this region," Second District City Councilman Dan Fowler said in March. "We are pleased to deliver on that promise with the announcement of the opening of Costco and the added economic benefits for our community and our schools."

News of the new Costco was not so good, however, for another developer.
Last year, the partnership working on redevelopment of the nearby Metro North Mall site at U.S. Highway 169 and Barry Road announced that they were attempting to land the Northland's first Costco as an anchor for that $187.5 million project.

grovester wrote:Politics. Downtown gets something, Northland wants something, East side wants something, etc.

Eon Blue wrote:I wonder what percentage of this store's sales will be cannibalized from the Midtown Costco?

Eon Blue wrote:The City Manager said on Twitter that part of the revenue is being used by the city to improve infrastructure north of the development.