Shawnee City Council to take up a pair of large development projects at Monday meeting

A developer plans to construct a pair of medical facilities in Shawnee that it wants to lease to Veterans Affairs, which is expected to bring about 50 high-paying jobs to the western Johnson County suburb.

The Shawnee City Council on Monday night will take up a development agreement with Highlands Development to pursue a medical facility project near 68th Terrace and Anderson Street. The project’s two buildings would cover a combined 42,000 square feet of new construction with a combined value of $18.5 million.

Ryan Locascio, a facility manager for the Kansas City VA Medical Center, said the VA is working with Highlands Development on a lease for the smaller of the two buildings, a 12,000-square-foot structure worth about $2.5 million. Locascio said in an e-mail that the VA would provide primary care, phlembotomy, mental health and telemedicine services.

Highlands Development is planning a second facility, a 30,000-square-foot building worth $16 million, that it also wants to lease to the VA. But Locascio said the VA has not given an award to any vendor or developer, “so that facility is still pending until further actions are taken.”

Highlands Development wants a $300,000 reimbursement from Shawnee’s economic development fund to cover costs associated with developing on a site with a substantial rock base. Under a proposed agreement, the developer would need to keep the buildings at least 80 percent leased for five years in order to obtain the reimbursement.

Shawnee on Monday night will also consider a funding agreement to explore whether a new mixed-use project called Bellmont Promenade is eligible for tax incentives.

Legacy Development, a real estate firm led by Dan Lowe, is proposing a development at the southwest corner of Shawnee Mission Parkway and Maurer Road that would consist of a 190,000-square-foot stretch of retail space, 25,000 square feet of additional pad sites and 40,000 square feet of office and retail space.

Legacy Development is seeking tax increment financing, which captures new property and sales taxes generated by a development to pay for certain project costs, and a community improvement district, which adds additional sales taxes within a development that can be used to defray project costs.

Dave Claflin, a spokesman for Legacy Development, said that although pre-leasing interest at the proposed Bellmont Promenade is high, the firm had no tenants to announce.

Steve Vockrodt: 816-234-4277, @st_vockrodt