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Posted on Wed, Oct. 28, 2009 10:17 PM
Parkinson says deal for Wizards and Cerner is state's best offer
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A $229.5 million incentive deal offered by Kansas earlier this month to lure the Wizards and Cerner to Village West is the final offer, the governor said Wednesday.
“We have gone as far as we can,” Gov. Mark Parkinson said.
A development team comprising OnGoal LLC, owner of the Kansas City Wizards, and Lane4Property Group is proposing a $414 million project that includes a major office development and a 18,500-seat stadium for professional soccer. Cerner Corp. has pledged to locate 4,500 new jobs in the office complex over the coming decade.
The development, however, depends on state and local tax incentives. Two weeks ago, the Kansas Department of Commerce offered $144.5 million in STAR bond assistance and $85 million in tax credits and cash incentives. The developers had sought $155 million in STAR bond help.
Last week, Robb Heineman, president of OnGoal, criticized the state’s offer in a posting at BigSoccer.com, saying it included unique restrictions.
“We’ve been working with our financial consultants and what’s been offered won’t allow us to sell bonds to build the project,” Heineman wrote.
Heineman could not be reached for comment about the governor’s statement.
Parkinson said it’s the best offer Kansas will make.
“We’re not willing to make an offer that is unfair or unreasonable to the taxpayers,” he said.
The high-stakes courtship began Sept. 9. That’s when OnGoal and Lane4 scrapped a development proposal for the site of the former Bannister Mall in favor of Village West.
Parkinson said that, based on projected revenues and benefits, the state would recoup its investment on the Cerner office complex in nine years and its investment in the soccer stadium in 20 years.
Any more investment and the state wouldn’t see a return for more than two decades, Parkinson said.
Parkinson was quick to say he still wants the project in Kansas.
To reach David Klepper, send e-mail to dklepper@kcstar.com. To reach Kevin Collison, send e-mail to kcollison@kcstar.com.
Posted on Wed, Oct. 28, 2009 10:17 PM
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