Northeast Joco

June 23, 2013

Renovation scrapped for HyVee at 123rd Street and State Line

Plans for interior work run up against city’s policy on Community Improvement Districts.

The HyVee at 123rd Street and State Line Road and the owners of its shopping center have walked away from plans to renovate the grocery store and the strip center, Leawood officials said.

Councilman Andrew Osman and City Administrator Scott Lambers said the owners withdrew because they wanted public money for interior renovations, which Leawood policy does not allow.

HyVee corporate spokeswoman Ruth Comer confirmed that the company had withdrawn its application for a Community Improvement District. A CID is a funding mechanism in which sales taxes are raised at a specific development to pay for improvements to the exteriors of the buildings.

“We decided to re-evaluate and maybe go in a different direction,” Comer said.

Leawood policy forbids any of the CID money to go toward improvements inside the stores.

The owners’ attorney, John Petersen, asked the city council a few weeks ago to “tweak” its policy to allow for interior renovations at the HyVee store — and to let HyVee charge its customers an extra one-half cent in sales tax — while allowing the owners of the rest of the shopping center to charge an additional one cent at the other stores for the renovations.

Osman warned the council about the owners’ withdrawal at the Leawood City Council meeting Monday.

“This could become a blighted area,” Osman said. “I’m saying this because of my expert knowledge of the real estate industry.”

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