May 5 marked a new era for Overland Park, Kansas as its governing body unanimously approved creation of the City’s first-ever TIF (Tax Increment Financing) district for firm client Tri-Land, Properties, Inc. to support redevelopment of Cherokee South Plaza.  The City agreed to provide Tri-Land with $3.5 million to support the development, with the funds coming from the increased property and sales tax revenues that the revitalized center will generate.

 

For years, in contrast to most of the other towns in metropolitan Kansas City, the City refused to consider using TIF to support redevelopment. The City's 18 months of negotiations with Tri-Land changed that. "We have had a very good partner in Tri-Land," the City's finance manager reported to the City Council before the vote. "They have been forthcoming with every single thing that we have asked for."

 

Tri-Land's $23 million redevelopment plan for the 118,000-square foot community shopping center calls for demolishing obsolete anchor buildings, adding more than 25,000 square feet of new retail space and giving the project a whole new look and feel. The project features redesigned building exteriors, high impact lighting and extensive landscaping, including outdoor patios, tree-lined walkways and generous public spaces beyond what is found in typical community shopping centers.

"Cherokee South was built in the 1960s and had already long outlived its life cycle when we purchased it in 2004," says Tri-Land founder and President Richard F. Dube.  "What we didn't know at the time was that the City would soon implement a comprehensive set of development guidelines that would require significantly more expensive design features and materials than what Tri-Land had planned for this redevelopment. We chose to approach this as an opportunity rather than a problem.” 

 

Tri-Land proposed to give the City a development that would exceed even the City's new requirements, if the City would agree to partner with Tri-Land by giving some TIF assistance. “We knew the City hoped to use this project as the first step in revitalizing Overland Park's older, northern neighborhoods, where Cherokee South is located. We were willing to assume the responsibility of standard-bearer in that process." says Dube.

 

"Tri-Land's 30-year track record of repositioning under-utilized, underperforming retail properties, as well as its expertise in forging partnerships with municipal governments and community organizations, were clearly major factors in the City's decision to entrust its first TIF subsidy to Tri-Land," says BWMS partner Jeffrey D. Warren. "Since Tri-Land's inception, our firm has provided the many legal services needed to implement Tri-Land's challenging undertakings. We have seen close-up how Tri-Land has consistently delivered on its commitments to its investors, the tenants in its centers, and the communities served by its projects. It's no surprise to us that Tri-Land won the confidence and support of Overland Park despite intense media scrutiny. Our firm is delighted to be playing a key role in the effort." 

 

Tri-Land is a full-service real estate company based in Westchester, Illinois, that acquires, develops, leases and manages shopping centers.  In the past decade alone, Tri-Land has developed, leased and managed more than 5.6 million square feet of retail space in 30 properties located in eight states. The company currently owns and manages more than 2.8 million square feet of retail space in 16 shopping centers, ranging in size from 60,000 to 750,000 square feet. Its diverse portfolio includes projects in New York, Milwaukee, Chicago, Kansas City, Minneapolis, Atlanta, Indianapolis and Merrillville, Indiana. For more information, please contact Jeff Warren at (312) 840-7020 or jwarren@burkelaw.com.