A massive development aims to deliver 800 housing units in De Soto not far from Panasonic’s EV-battery plant and seeks incentives to make it happen.
Lawrence-based Williams Management has submitted a request for a tax abatement on a 78-acre mixed-use development along the south side of 95th Street, west of Lexington Avenue. The developer envisions a $250 million, 1 million-square-foot project blending multifamily housing with commercial and retail.
Although a final site plan has not been submitted, a preliminary sketch lays out plans to construct dozens of apartment buildings, a series of row houses, duplexes, townhomes and senior housing. The project also calls for commercial space in the site’s northeast corner along 95th Street.
If plans are approved, construction on the site could begin in August, with substantial completion expected in 2030.
The $4 billion, 4.7 million-square-foot Panasonic facility expects to start production in March 2025. The electric-vehicle battery plant expects to employ at least 2,500 full-time employees.
Multiple phases
Williams’ multiphase, predominantly residential development would begin with land acquisition and the construction of 240 apartments near the project’s center. Second-phase construction would begin the following year and add 240 apartments. A 130-apartment project would be developed in the third phase.
The fourth phase is expected to begin in the sixth year and include townhomes, duplexes and the senior housing component. Five commercial pad sites are slated to be developed in the sixth year along 95th Street at the northeast corner of the site.
The developer requests the issuance of industrial revenue bonds to support a sales tax exemption on construction materials for the site and a 10-year property tax abatement period. Williams has requested a 100% tax abatement for the first five years and 50% for the following five years.
The project also would rely on creating a new sewer line to serve the development. Williams Management has expressed interest in participating in the sewer benefit district proposed by Sunflower Redevelopment Group.
That benefit district would support constructing a five-mile sewer main that would connect roughly 2,850 acres of land generally south of 95th Street and west of Lexington Avenue to the pump station being installed at Panasonic’s electric-vehicle battery plant.
Due to the cost of acquiring the land, creating a benefit district for utilities and covering labor costs, the project is expected to have a negative cash flow without incentives, according to financial analysis from Columbia Capital Management LLC.
The developer will work with the city’s Finance Committee to bring a formal proposal back for City Council consideration.
More housing
Earlier this month, the City Council also received an incentive request from Overland Park-based Grata Development to support construction of a mixed-use project along Kansas Highway 10.
After discussions with the council last week, Grata President Travis Schram said the project has been withdrawn because it lacks viability without tax incentives. He sent KCBJ the following statement:
“This site has significant challenges including shallow limestone, steep topography, and sewers being nearly one mile away from the site. We are disappointed that the city wasn’t willing to focus more of their energy on providing some of the desperately needed housing and retail for the area. While we will be withdrawing our current application for incentives on this site, we believe that De Soto is a great community whose future depends on balancing population growth with the rapid growth of their industrial sector. As such, we hope to continue to explore opportunities with city leaders.”
Grata’s plan called for 350 multifamily housing units, 76 single-family homes and 33,700 square feet of retail on roughly 60 acres at the northeast corner of Kill Creek Road and K-10. The development team requested a host of economic incentives:
- Creating a 1.5% community benefits district over the retail portion.
- Approving a 10-year, 80% property tax abatement for the multifamily.
- Waiving excise taxes, sanitary sewer connection fees and water system connection fees.
- Waiving the building permit application fee for the multifamily.
The developer also sought a new special benefit district to create a utility line on the site. Currently, no sanitary sewer lines serve the project site. Grata asked the City Council to approve creating a special benefits district to build a 4,985-foot sanitary sewer main. The roughly $2 million project would connect existing lines near 84th Terrace and Valley Spring Drive to the south side of K-10.
