ShawneeDispatch.com

Though some expressed doubts that the development was worthy of an economic incentive, the Shawnee City Council Monday approved the city’s first tax increment financing district.

A 34-acre area in the 6100 block of Pflumm Road will be the first such district for Shawnee, allowing developers to keep property taxes generated from the increase in value as the land is developed to help cover development costs. Now, the city will move on to consider approval of the details of the proposed Cobblestone Development in the district, but not everyone was on board with the idea of creating the district, considering Cobblestone was to be a mostly residential development.

“I just cannot bring myself to be in favor of a TIF for residential,” Council member Neal Sawyer said. “If we let one (pass), I don’t see how this (governing) body or the city is going to be able to say in the future, ‘Oh, that was a special deal.’”

Bryan Kidney, city finance director, explained to the Council the action it was taking Monday was to approve that the area in question was eligible to become a Tax Increment Financing, or TIF, district according to state statute. The Council also would decide if the development proposed in the district would promote general and economic welfare in the area.

Kidney explained that the details of the development intended for the district, including the street layout, building designs and proposed land swap for a portion of Pflumm/ Bichelmeyer Park, would be considered at a later date.

The Cobblestone Development is proposed to include villa-style homes for seniors, some retail space along Pflumm Road and a senior independent living facility. Six existing homes and duplexes along Pflumm will have to be razed for the development, but most of the land in the district is vacant.

The city hired an outside consultant to determine if the area meets state requirements for TIF eligibility, and the consultant found that the area could be considered a conservation district, an area that was not yet blighted, but had several factors in place that could lead to blight. The developer’s representatives explained evidence that the proposed district included dilapidated or deteriorated structures, illegal use of individual structures, structures below code and inadequate facilities.

The Council was to consider if the proposed development would be a benefit to the city, as it would bring 70,000 square feet of commercial space, 100,000 square feet in a senior independent living facility, up to 345 new residents and 68 new jobs between the retail space and senior facility.

There were those who questioned the propriety of a TIF for the area, however. During the period for public comment, Shawnee resident John Foudray, who said he has professional experience working with TIFs, said he had gone through the information and didn’t think he’d ever seen such “skinny” evidence in support of a TIF district.

He said he didn’t see any extreme costs to develop the land usually involved in TIFs, and he cautioned the city to act carefully when giving TIFs to infill developments.

“What I’m concerned about is what’s being redeveloped here? Is it for vacant ground?” he said. “I don’t think it really goes with the intent of the state statute… On face value, this is not an extremely difficult development.”

Other residents who live along Pflumm also said they didn’t consider the area blighted. But representatives for the developer emphasized that they weren’t claiming the area was blighted, rather that it had the potential for blight.

Sawyer said he was not in favor of the development because so much of it was residential, and the city shouldn’t approve something that relies on a property value increase given the current state of the real estate market.

But Mayor Jeff Meyers said he saw the development could be a great benefit to the city, and most of the Council agreed. Council member Frank Goode made the motion to approve creation of the district, seconded by Council member Cheryl Scott.

The creation of the district was approved 5-2, with Council member Michelle Distler and Sawyer voting in opposition. Council member Dawn Kuhn was absent from the meeting because she was representing the city at the League of Kansas Municipalities’ annual conference in Wichita.

The county and the Shawnee Mission School District now have 30 days to oppose creation of the district, and then the city will move on to considering approval of the development itself. Carol Gonzales, city manager, said she expected a public hearing on the development before the end of the year.

In other business, the Council:

• Accepted the final report from the 2008 Parks and Recreation needs assessment.

• Approved a resolution to execute a special warranty deed for release documents for the 1998 bonds for the Hampton Inn, 16555 Midland Drive.

• Conducted a public hearing to consider issuance by the city of $11.08 million principal amount of multifamily housing revenue refunding bonds for the Pinegate West Apartments project.

• Approved a resolution of support for a new state comprehensive transportation program.

• Awarded a $24,910 contract for engineering study services related to the 70th Terrace and Flint Street storm drainage improvements to Black & Veatch Corporation.

• Approved a resolution declaring it necessary to appropriate private property for the purpose of bridge replacement in the 21900 block of 43rd Street and authorizing a survey of the land to be acquired; and passed an ordinance authorizing the acquisition of the land by condemnation.

• Heard the mayor make a proclamation for Jim Newman, municipal court bailiff, in recognition of his retirement after 13 years.

• Heard the mayor make a proclamation for the Great Plains 4-H Club of Shawnee.

• Approved 6-1 semimonthly claims totaling $12,392,164; Council member Kevin Straub voted in opposition, citing travel expenses of which he did not approve.