Sterling Board Approves Development Incentives That Will Help Site Developer Kmart – Shaw Local
STERLING — City Council on Monday unanimously passed economic incentives for the developer who plans to spend $14 million to redevelop the former Kmart site in the East Lincolnway shopping corridor.
Chris Williams of Highlands Development LLC, of Kansas City, Missouri, purchased the long-vacant property at 2901 E. Lincolnway in 2020 for $1 million. It includes not only the Kmart building, but also two other mostly empty retail/office buildings.
Williams plans to redevelop the site into a mix of retail and retail space.
Highlands has already remodeled and leased part of the 50-year-old department store to the Department of Veterans Affairs, which moved its formerly VA outpatient clinic to 406 Ave. C to the new larger space in January.
Williams plans to turn the rest of the 100,000 square foot site into retail space that will include national junior box retailers, national restaurants and other local and regional tenants and has been in “active negotiations” with them.
The adoption of this package will move these negotiations forward and “help us cross the finish line”, he said on Monday.
The building, empty since 2014, requires major interior and exterior work.
In addition to the facade work, Highlands plans to redo the roof, make energy-efficient lighting and plumbing upgrades, completely redo the parking lot and landscaping, repair and replace concrete and sidewalks. damaged and possibly adding new buildings, among other things, he says in his redevelopment agreement with the city.
The deal was dependent on the city creating the Tax Increase Funding and Business Development District that includes the site.
“The city’s obligation under the proposed redevelopment agreement is to create finance and business development districts by tax increase,” city staff wrote.
“The agreement then provides that substantially all of the revenue from TIF and BDD will be used to reimburse the developer for costs incurred in redeveloping and improving the site from its current state.”
In addition, Highlands will receive a share of the 1% sales tax revenue collected from the site over the next 15 years – in most cases a 50-50 split, but in some cases with some of the retailers, 85 -15.
Passage was almost guaranteed – it’s a plan that has been in the works for East Lincolnway for some time and will help not only Highlands but other developers as well.
TIFs and BDDs are economic development tools that allow money collected from property taxes and other revenues within their boundaries to be used to reimburse developers who take over degraded or underdeveloped areas. -developed.