City approves incentives to turn vacant northeast JoCo building into 307 apartments

A decades-long vacant building in Mission may be brought back to life after the City Council approved incentives to help a developer construct a new apartment complex.

In 2022, Block Real Estate Services, LLC, submitted plans for construction of a five-story, 307-unit, multifamily development at the former J.C. Penney Call Center on the southeast corner of 56th Street and Foxridge Drive. The property currently has a one-story, 40,000-square-foot building that was built in 1970 and has been vacant for nearly two decades.

“The multi-family development project put forward by Block on this site not only addresses a blighted parcel, but should also serve as a catalyst for future redevelopment in Mission’s West Gateway area,” Mayor Sollie Flora said in a statement to The Star. “The project will add much-needed housing options to Northeast Johnson County and helps to further Mission’s goals relating to sustainable buildings.”

The City Council approved the $108 million project in September 2022, which features a mix of studio, one-, two- and three-bedroom apartments, an outdoor patio area with a pool, a game area and indoor areas that will include a lounge, workout facility, leasing offices and a multi-purpose room.

The project is designed to activate the surrounding street network, including pedestrian pathways, to connect to Broadmoor Park to the west, and to bring additional residents to patronize the retail and services located to the south, Flora said in her statement.

The developer came back this year to request public assistance from the city to help with the cost of things like improving the infrastructure, storm water and parking around the development.

“Mission’s independent financial advisor determined the project would not move forward absent a public-private partnership,” Flora said. “The approved Tax Increment Financing (TIF) will assist with extraordinary redevelopment costs, primarily site work including infrastructure, storm water, and the podium parking structure.”

The new apartments will be built in an area already designated as a TIF district, which means the developers can get access to some of the money from excess property tax revenue as the area increases in value to help with redevelopment costs.

In 2016, Dial Properties, based in Omaha, Nebraska, submitted plans to demolish the existing structure and build an assisted living and memory care facility, but plans never came to fruition. During that time, Dial submitted a TIF district application, which was approved in 2017.

“Because the underlying TIF District already existed, the steps for Council consideration of the request allowed for a more condensed timeline than if a new TIF District was being established,” according to the staff report.

The city estimates the district will generate about $18.4 million in TIF revenue over the next 20 years that would go toward reimbursing the developers for costs associated with infrastructure, parking and other aspects of the redevelopment. If the district generates more revenue than expected, the developers could be reimbursed for as much as $28 million, according to the redevelopment agreement.

Within its agreement, Block Real Estate must meet certain building sustainability standards, complete construction in a timely manner and maintain insurance or risk losing the contract.

“In supporting this project, our governing body saw the potential to promote growth in our community, advance Mission’s policy goals, and to significantly increase the revenues generated by this property,” she said.