Independence approves controversial $1 billion warehouse, manufacturing development
The Independence City Council approved a controversial $1 billion plan to remake hundreds of acres of farmland into a sprawling industrial park.
Riverside-based NorthPoint Development plans to bring 21 new warehouse, logistics and manufacturing buildings to its new Eastgate Commerce Center off of Little Blue Parkway in eastern Independence.
The City Council voted 4-2 to award millions in incentives to NorthPoint, a prolific developer of warehouse and distribution facilities across the Kansas City metro and the country.
While some neighbors and concerned residents fiercely opposed the development, others framed it as a once-in-a-generation opportunity to bring sorely needed economic development to a city that has not benefited from the types of major commercial and industrial projects that have sprouted up across other cities in the metro.
For years, Independence city leaders have sought to recruit commercial and industrial development to boost not just the local economy, but also the municipal electric utility. Experts have indicated a dearth of commercial customers as a factor in higher-than-average electric rates for residential customers of Independence Power & Light.
“I ran for mayor to grow the city,” said Mayor Rory Rowland, who was sworn in last month. “There’s not going to be any opportunity better than this opportunity to grow our city and move it forward.”
NorthPoint Development
While NorthPoint has disclosed none of its anticipated tenants, it has pledged to create 5,000 jobs with an annual payroll of $180 million. Those figures indicate an annual average wage of $36,000.
The council approved a 20-year tax abatement on the project, a sales tax exemption for construction materials and reduced permitting costs. The company will receive an 85% property tax break for 12 years, followed by an 81% abatement for eight years. The city also plans to create a new community improvement district, a special tax that will help pay for certain infrastructure improvements at the complex.
City leaders did not answer The Star’s questions about the total value of incentives being awarded.
Brent Miles, a founding NorthPoint partner, said the firm could have qualified for more incentives under Independence policy. And he told council members that the terms of the agreement were more favorable to Independence than other recent NorthPoint agreements with Liberty, Belton and the Port Authority of Kansas City.
“You would get more revenues on a bigger project,” he said.
Residents oppose project
Opponents said they had gathered more than 1,000 signatures on a petition aimed at blocking the development. Residents objected to the traffic, noise and environmental consequences of the project, which will disrupt a portion of the city that’s been largely undisturbed by development.
Erin Binney said the development will impact migratory birds by destroying wetlands and wooded areas at the site, which is also home to a bald eagle nest.
“Bringing in industrial warehousing complexes will have a huge environmental impact on everything from light pollution from the buildings to noise and air pollution from the influx of semis and traffic,” she said.
Binney and others urged the company to redevelop among the many blighted areas in town rather than building new.
“We need to start fixing what is broken and run down rather than destroying these beautiful areas,” Binney said.
Council members decide
Council members Mike Steinmeyer and Brice Stewart opposed the development agreement with NorthPoint. Steinmeyer said he feared the massive development would not generate enough new revenue to cover the costs of road improvements and maintenance, fire, water, sewer and police.
“I am not against development,” Steinmeyer said. “I’m just for development that makes good economic sense for our city.”
Steinmeyer unsuccessfully sought to delay the vote on the project for a month to renegotiate with the company.
But his concerns were not shared by a majority of the council, which is short one member since the April 12 death of council member Karen DeLuccie.
“The benefits far outweigh the concerns of this development,” said newly elected at-large council member Jared Fears.
Before commenting, Fears announced he had asked a city attorney to consider whether his relationship with the Community of Christ church posed a conflict of interest. Aside from being a longtime member of the church, Fears worked for the Independence-based organization for 28 years. The church will benefit from the development through land sales.
“None of those relationships pose a conflict of interest,” attorney Jeremey Cover said.
Property taxes and schools
Because the property is currently agricultural, it produces hardly any property tax revenue for the city, county or school districts.
NorthPoint’s project area encompasses more than 1,200 acres. But the company has committed to setting aside 250 acres as protected green space with two new trail heads a dog park and other recreational features.
Even with a steep discount on property tax, NorthPoint estimates it will pay nearly $135 million in taxes over the life of its 33-year agreement with the city. Without the development, the company says that land would generate less than $500,000 over that time frame.
Much of those new taxes will flow to the Fort Osage R-I school district, which pushed the council to approve the deal.
“This is not about us. I may be dead and buried by the time this is finished,” said school board president Floyd Hawkins. “But it’s about our future, its about our kids. It’s about kids that haven’t even been born yet.”
Hawkins is a retired teacher in the school district, which relies largely on residential property taxes. He said the school district has been looking for ways to promote industrial development that could boost tax revenues since the 1970s.
“If Independence continues to run from development and doesn’t seek ways to increase revenue, I don’t know how we survive,” he said.
This story was originally published May 2, 2022 at 10:37 PM.
