The Olathe City Council on Tuesday approved up to $12.5 million in incentives and a development plan for a $65 million mixed-use development anchored by tournament-style soccer fields.
The council held a public hearing at its regularly scheduled Tuesday meeting and then unanimously approved a development agreement with Ridgeview Equities on a large-scale development at the southwest corner of Kansas 10 and Ridgeview Road.
The project is expected to lead to another significant soccer-anchored, mixed-use development in the Kansas City metro area, joining others finished or underway in Grandview, Overland Park, Wyandotte County and Kansas City.
Ridgeview Equities, a business entity tied to developer Michael Christie, proposed building nine soccer fields, surrounding commercial retail development and two hotels — either a Marriott or Hilton — on a 37-acre site.
The plan will receive tax increment financing, which captures new property and economic activity taxes generated by a project to finance eligible development costs. It also will get a community improvement district, which charges an additional 1 percent sales tax within the project to pay for project costs, and a sales tax exemption on construction-related materials.
All told, the incentives add up to no more than $12.5 million, or just shy of 20 percent of the overall investment from the project. None of the incentives requires any city debt guarantee.
Olathe’s development agreement would hold Christie to several commitments.
“They think they’re all easily attainable,” said Pete Heaven, an attorney representing Ridgeview Equities.
The soccer complex is required to host no fewer than 10 “stay-and-play” tournaments that generate at least 18,000 room nights at Olathe hotels each year.
Ridgeview Equities has a deal with Heartland Soccer Association, a youth soccer administrator, to operate the soccer complex. The tournaments are to begin play in 2019.