Olathe to consider STAR bond incentives for new mystery sports facility, amusement park
The Olathe City Council will consider creating a STAR bond district to provide state tax incentives for a project that could include an athletic complex for both youth and professional sports, as well as an amusement park and other attractions.
The plan is in its early stages and light on details, being proposed by an unnamed developer. The City Council on Tuesday agreed to hold a public hearing at its Sept. 17 meeting to discuss establishing the STAR bond district on two large swaths of land, 63 acres at the southwest corner of 119th Street and Renner Boulevard, and another 69 acres on the northeast corner of the intersection.
STAR bonds — which stand for Sales Tax and Revenue — are 20-year bonds that are repaid with sales tax revenue generated by the projects. These bonds provide upfront dollars for projects intended to be unique tourist attractions drawing visitors from near and far.
Some lawmakers have criticized the program over the years when projects have failed to meet expectations. And some argue that the uses approved for the incentives have been stretched beyond the program’s original intent.
It is so far unclear how much STAR bond funding the Olathe project will seek from the Kansas Department of Commerce.
City documents show that at the southwest corner of 119th Street and Renner Boulevard, project plans could include the multi-sport facility, an amusement park, retail, restaurants, a hotel or residential buildings. At the northeast corner, documents list entertainment, retail, restaurants, residential and other commercial uses, without providing greater detail.
The project has been dubbed Olathe Gateway in city documents.
Cody Kennedy, spokesman for the city of Olathe, said the developer’s specific applications have yet to be made public as “there are still negotiations on financial parameters of the proposed project.”
The city, he said, “is proceeding with an aggressive timeline of a goal of adopting a STAR Bond Project Plan before the end of the year.”
And no, the project is not expected to include a pitch to bring over the Kansas City Chiefs or Royals to Johnson County, he said.
The Kansas Legislature earlier this year approved an aggressive plan to lure the teams to build new stadiums across the state line, after Jackson County voters in April rejected a stadium sales tax that would have guaranteed the teams remain in Kansas City. The plan allows STAR bonds to to pay for up to 70% of the cost of stadiums for one or both teams – up from the 50% in the current law.
If either team were to consider such a move, eyes have been on Wyandotte County, as Johnson County leaders have remained quiet on the idea.
Meanwhile Johnson County has seen growth in the arena of youth sports. Another STAR bond-backed project, Bluhawk in Overland Park, is expected to open its multi-sport mecca, with a hockey rink, basketball, bowling and zip lines, in October.
When $70 million in STAR bonds was approved a few years ago for the sports center and retail at Bluhawk, the Overland Park project beat out a competing proposal for a hockey arena in Olathe, which did not receive the state incentives amid speculation that the region could not support both projects.
Earlier this spring, another STAR-bond backed $60 million youth sports facility opened in western Kansas City, Kansas, as part of the broader Homefield Kansas City development in Wyandotte County.
For the proposed Olathe project, which would also require state approval, the council at a later date would consider approving a STAR Bond project plan and development agreement.
This story was originally published August 7, 2024 at 2:22 PM.
