A townhouse project in Lenexa’s hottest area has gone quiet for lack of action by the developer, North Village Fund LLC.
The Lenexa City Council recently decided to end its agreement with the developer for a project that would have built 61 townhomes with attached garages on 3.4 acres north of 87th Street Parkway on Penrose Lane.
The tax increment financing district created in 2015 remains in place, but it is not known whether the developer intends to submit a new plan.
The developer, Zach Henderson, was supposed to have started construction by December 2015, according to his agreement with the city. But when nothing was started by May 10, 2016, the city served notice of default.
According to city records, Henderson could have been given an extension on the timeline, but had not asked for one. The developer told city staff that the project was delayed because of difficulty getting private financing. Staff notes to the city council also mentioned a failure to properly maintain the property and pay real estate taxes on time. Those taxes were eventually paid.
The staff notes also mentioned the city “learned that (the developer) was also experiencing some internal partnership issues it was trying to work through.”
Multiple efforts were made to reach Henderson by email, phone and a personal visit, but after eventually indicating a willingness to talk about the project, he didn’t return follow-up requests.
Henderson and his wife, Jessica Spalding, were mentioned as Kansas City business up-and-comers a couple of years ago. The two were reportedly in their early 20s when they got into multi-family real estate development.
They gained notoriety for their youth and because they got into the business just as the recession sent real estate markets into a tailspin. In April 2016 Spalding was named one of Ingram’s magazine’s 40 Under 40.
Their Plutus Group family of development, management and construction companies has developed projects that include Maple Crest in Overland Park and Reghan Place in Shawnee. Plutus is the Greek god of wealth.