‘Reverse Robin Hood syndrome’: Overland Park Council approves $200M tax break deal
Neighbors have fought the deal for more than five years.
But as Monday night’s Overland Park City Council meeting extended into Tuesday, residents learned they finally lost the battle — just barely. After four hours of discussion, the City Council approved a $200 million tax incentive deal for the redevelopment of the Brookridge Golf Course, northeast of Interstate 435 and Antioch Road.
Council members previously voted down the $2 billion development deal, which includes turning a portion of the golf course into luxury apartments, retail and offices. But after midnight early Tuesday, the City Council voted 8-4 — one vote shy of the nine required “yes” votes to approve the deal. It was pushed through after Mayor Carl Gerlach cast the deciding vote.
“I will never vote for a project that puts our budget or city services at risk. Prior iterations of Brookridge did exactly that,” Councilman Chris Newlin said. “Tonight we have in front of us a totally different story. This is not a giveaway.”
The latest version of the deal includes $200 million in tax incentives provided to the developer through tax increment financing and a community improvement district, as well as a sales tax exemption on construction materials.
The developer will receive reimbursement of new property taxes created by the project, up to $158.5 million over 20 years. And the developer could receive up to $46.5 million from an extra 1.5% sales tax on the site.
A portion of the tax breaks would fund streets, parking and infrastructure improvements. And Council members in favor of the project touted the “pay-as-you-go” model for incentives, saying it protects the city from any risk, unlike previous versions of the deal.
If the developer finishes street work and the first, 317-unit apartment building by the end of 2023, for example, the developer could be reimbursed $15 million in incremental property taxes. The cap on reimbursements would continue to grow to $158.5 million as the 317 apartments, 700,000 square feet of office space and 70,000 square feet of retail are completed.
But around 25 residents spoke against the project. Many are concerned about flooding on the golf course becoming worse, the lack of affordable housing in Overland Park and the use of tax dollars for private development.
“We have to make sure we’re subsidizing viable projects, which this one is not,” Councilwoman Gina Burke said. “If we did decide to incentivize and give the money as they are requesting, and the project does fail, we will in turn have to pour more money into this area because it will become blighted. I am firmly against this.”
Councilman Faris Farassati, a frequent voice against tax breaks for private development, called this deal “un-American” and a “reverse Robin Hood syndrome.”
“This project can be built based on the finances by the developer, at the scale that those finances allow. Whatever economic prosperity that brings to us, we will see,” he said. “I do not find this in any shape deserving even a penny of tax incentives.”
As part of the deal, Developer Chris Curtin would reduce the 27-hole golf course to nine or 18 holes. The project includes a 45-acre park and an outdoor event space, in addition to commercial development.
The developer also agreed to work with the U.S. Green Building Council to earn LEED Zero certification, promising buildings will be powered by renewable energy — one part of the agreement that led many to say they support the deal.
The first phase of the project, called “The Village,” totals $591 million. The development of retail, restaurants, apartments and offices should coincide with road improvements at the corner of 103rd Street and Antioch Road. The second phase includes a parking garage, retail, apartments and a hotel.
John Petersen, an attorney representing the developer, highlighted the anticipated growth in property tax dollars as a benefit to the city, county and schools. He expects the development to help transform the area.
“It’s about having a development that isn’t all about just vehicular opportunities, but also pedestrian opportunities,” Petersen said. “With Brookridge, we feel like we’ve got a bit of a clean canvass. We can paint a picture that fits within (the nearby College Boulevard corridor).”
Scott Hamblin, who won election in November and will replace Councilman Rick Collins, criticized the city for pushing the deal through a little more than one month before new City Council members take office.
This story was originally published December 3, 2019 at 12:51 PM.
