Development

Schlitterbahn will go away, but developer plans white sand beach for new sports complex

Developers who plan to quickly start demolishing the remnants of the shuttered Schlitterbahn water park say they’ll add a new water feature unlike anything in the Kansas City area.

The Unified Government of Wyandotte County-Kansas City, Kansas, board of commissioners approved a development agreement Thursday evening with Homefield LLC. That company plans to build a 300-acre sports complex over the defunct water park in a yearslong effort that could cost as much as $400 million once retail stores, hotels, restaurants and apartments are added to the mix.

Homefield is run by Robb Heineman, a former CEO and current part-owner in Sporting KC, and Greg Cotton, a former chief operating officer and chief counsel for Sporting. The pair launched their Homefield youth sports company last year, acquiring two Elite Sports locations in Kansas City and Olathe.

While the development will center on youth sports, it also proposes building a man-made lagoon created by Crystal Lagoons, which has built public access beaches around the world. Heineman said the six-acre lagoon would feature white sand beaches, but have a sealed bottom and chemistry of a swimming pool.

He said it could host watersports like kayaking, paddle boarding and cliff diving, but also house beach bars and wedding venues.

“You’ll feel as though you’re very much anywhere other than in the middle of the prairie in Kansas,” Heineman told commissioners at a committee meeting earlier in the week. “It will be we think a real kind of ironic and great environment for people to hang out.”

The lagoon, he said, could be partially enclosed to allow for year-round use. That part of the project may use some of the existing water park’s pumps or other behind-the-scenes infrastructure, but much of Schlitterbahn will be demolished to make way for the wider development.

“We’re pretty much starting from fresh,” Heineman said. “Anything that’s vertical — slides, buildings — all that will be gone.”

Graphic
The Kansas City Star

The project proposes using $130 million in Kansas STAR bonds, a controversial incentive program that redirects sales taxes to help offset the cost of major projects.

With approval from the commission on Thursday, Heineman said work could begin soon. He hopes to open the venue by July 4, 2022.

“I would like and anticipate that demo would start in this calendar year,” he told The Star. “I’d like it if we’d start within the next couple of weeks.”

On Thursday evening, the project received approval from the board of commissioners, who were asked to fast-track the proposal.

Schlitterbahn, which did not open for the 2019 or 2020 seasons, has been plagued by litigation and financial problems since a 10-year-old boy died on the Verruckt waterslide in 2016.

So far, Heineman said the project has received commitments on $150 million worth of new developments for its first phase, though he expects it could grow to a $400 million project in the coming years.

As the cornerstone of the development, Homefield plans to build a $60 million indoor athletic venue, a $15 million outdoor baseball complex and a $15 million outdoor multi-sports outdoor complex.

The company’s aim is to improve the youth sports experience by infusing amateur athletics with the science, coaching and technology that are more common in professional sports. Homefield also seeks to create a more entertaining venue for parents and spectators, who can shop, grab a drink or a meal as kids practice or play.

Homefield has hired Paul Rivers, a longtime executive with the NBA’s Oklahoma City Thunder, as president to run its operations here. He said the Homefield portion of the development will center on youth sports memberships and tournaments. The public can access the lagoon by purchasing daily tickets or by visiting the businesses that may open up in its vicinity.

“It’s not an amusement park and, frankly speaking, it’s not your typical youth attraction,” Rivers said. “It’s unique in its own right. It’s experience-led.”

While billed as a “youth sports mecca,” the yet-to-be-named development is already garnering interest from auto dealers, a grocery store, retailers, restaurants and hotels. It will also feature an apartment complex and may land a luxury RV park.

Heineman said the project could create up to 1,200 permanent jobs.

Wyandotte County says it will offer no property tax incentives to the developers. But Kansas is preparing to issue $130 million more in STAR bonds in an area struggling to pay off its current bond debt.

The STAR bonds program was created to help build one-of-a-kind, regional tourist destinations. The bonds have helped to build the nearby Kansas Speedway, Village West and Children’s Mercy Park, home of Sporting KC. In 2013, the state issued $85 million in STAR bonds to help pay for improvements at Schlitterbahn.

But with no business at the shuttered park, those bonds are at risk of default, said Todd LaSala, a local attorney representing the unified government. Sales tax revenue from the new project is expected to pay off the outstanding debt on the water park.

“The water park is closed. So if nothing is done, the bonds are for certain in jeopardy,” Heineman said. “The Homefield project, which will open in 2022 and I have every belief in the world will be successful, takes the bonds out of that jeopardy.”

About $65 million is still owed on those bonds, said Robert North, chief counsel for the Kansas Department of Commerce.

The commerce department approves the use of STAR bonds. It has not formally approved the Homefield project, but has had discussions with the county and developer.

“There is nothing currently pending before Commerce, but Commerce is aware of the project and looks forward to bringing this exciting new concept to Kansas,” North said in a statement Thursday.

Homefiled will spend about $3 million to purchase about 71 acres of property owned by the Unified Government. The county will use proceeds of that sale to help pay off existing STAR bonds.

Commissioners on Thursday discussed — and even shouted about — the project for well over an hour.

But those conversations focused on one small portion of the project: a commitment from the developer to invest $3.75 million in new developments in downtown or urban parts of Kansas City, Kansas. Commissioners argued over language that would allow the county administrator to sign off on what projects would be eligible and sought to have more control over that process.

Still, most broadly supported the project. The development plan was approved by a 9-1 vote, with only Commissioner Gayle Townsend voting no.

“I think its a good investment into the community,” said Commissioner Tom Burroughs, “in an area that needs to be redeveloped.”

Kevin Hardy
The Kansas City Star
Kevin Hardy covers business for The Kansas City Star. He previously covered business and politics at The Des Moines Register. He also has worked at newspapers in Kansas and Tennessee. He is a graduate of the University of Kansas
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