Cerner Corp. has completed the purchase of the property needed for its planned $4.3 billion office development at Interstate 435 and Bannister Road in south Kansas City.
The acquisition of the 237-acre Three Trails property that includes the site of the former Bannister Mall was completed last week, according to city officials. The office development, when fully built out over 10 years, would be the largest in the area, surpassing the Sprint headquarters in Overland Park.
“This seals the deal,” Kansas City Councilman John Sharp said Monday. “Everyone in south Kansas City I’ve talked to has been very enthusiastic about the project.
“People keep asking, ‘Will this really happen?’ and now Cerner has purchased the property. We can say it’s going to happen.”
The North Kansas City-based health care technology giant ultimately plans to build a phased, 4.5 million-square-foot campus that’s expected to employ 15,000 people when completed in 2024. Cerner employs more than 9,000 people in the metropolitan area.
The $4.3 billion redevelopment plan that includes a $1.63 billion tax incentive package was approved by the city in October.
The Three Trails property had been owned by an entity, Cerner Property Development, controlled by Cerner’s top executives, CEO Neal Patterson and vice chairman Cliff Illig. The transaction called for Cerner Corp. to buy the property from the development entity.
A Cerner spokeswoman declined to comment Monday, saying a press event was expected to be held next week to discuss the Three Trails development.
Documents filed with the Missouri Development Finance Board last summer estimated the cost of the Three Trails property transaction at $44.2 million.
Construction of the first phase of the Cerner office development is expected to begin in 2014. The first phase is expected to include 578,500 square feet of office space in two buildings, and a service center. About 2,260 jobs are expected to be created in the first phase, according to documents filed with the city.