Overland Park approves public financing for apartments in Metcalf 108 project

Public financing for the Metcalf 108 project in Overland Park was approved at Monday’s regular city council meeting.

The tax increment financing project plan was approved in a 9-3 vote, the exact number needed to pass. Councilmembers Scott Hamblin, Jeff Cox and Tom Carignan voted in dissent.

The project, located at Interstate 435 and Metcalf Avenue, has been in the works since 2017 when a redevelopment district was approved there with a plan that considered building a new hotel and office building.

The Staybridge Suites was the hotel constructed at the site, but the developer was unable to find a tenant for the potential office building. Earlier this year, the development was redesigned to be a seven-story, 220-unit apartment building with retail and office space included.

At Monday’s meeting, the council approved the public financing aspect of the project, which includes tax increment financing, the creation of a community improvement district and economic development revenue bonds.

The project will receive up to $11.5 million from the tax increment financing reimbursement, up to $1 million from the 1% community improvement district sales tax, and $17 million in economic development revenue bond financing for sales tax exemption on construction materials and equipment for the project.

According to city documents, the total project cost is about $67.5 million, and none of the public financing will be used for the Staybridge Suites.

The plan says that 10% of the housing will be attainable for those who make 60% of the median household income.

Cox said at the meeting that he didn’t support the funding because he doesn’t agree with the increasing amount of dense apartment complexes in the city.

Hamblin was concerned about the change in the development and how it was originally supposed to be a gateway to Overland Park with a large glass office building.

“An apartment complex doesn’t really say gateway to Overland Park to me. And it truly is in a position of such great value in real estate. Do we really need to incentivize it?” Hamblin said.

Mayor Curt Skoog said the former 435 Overland Park Place Hotel located at the site was an eyesore for the community and needed to be demolished after it closed in 2016, even if the original office building did not get built there.

“It’s ended up now being apartments with commercial on the first floor, and this is well within the expectations of what I had on the project,” Skoog said.