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Project Profile: Tallgrass Creek Project

Tallgrass Creek Project

photo credit: Limited Offering Memorandum, November, 30, 2006.

Location

City of Overland Park, Kansas

Project Sponsor / Borrower

City of Overland Park

Program Areas

Value Capture

Mode

Local Road

Description

In 2006, the City of Overland Park created a Transportation Development District to finance transportation improvements related to the development of Tallgrass Creek, a privately-owned retirement community. The 65-acre development district is bounded by 139th Street to the south, Metcalf Avenue to the east, and Highway US 69 to the West.

The city capitalized on a 2005 state law permitting municipalities to establish special assessments or a transportation development district sales tax to finance transportation infrastructure. A transportation development district may only be created after the governing body of the municipality receives a petition signed by the owners of all the land area within the proposed district. The municipality may issue bonds backed by the special assessment to finance infrastructure improvements.

In 2006, the City issued limited special assessment bonds to fund infrastructure improvements, establish a reserve fund, and pay costs related to the issuance of the bonds. The infrastructure improvements included enhancements to streets, parking lots, storm sewers, traffic signals, street lights, and sidewalks, and bike trails. The bonds are repaid from the proceeds of a special assessment levied on real property within the district.

The 139th Street, the bike trail, and the storm sewer improvements have been conveyed to the city. The remaining improvements have been conveyed, pursuant to a lease, to Tallgrass Creek, Inc. a non-profit entity that holds a 20-year lease from the landowner to maintain and operate the development.

In March 2017, the city approved redemption of the bonds prior to their maturity and terminated the special assessment district pursuant to a petition signed by all landowners of record.

Cost

$11.75 million (estimated total public infrastructure costs)

Funding Sources

Special Assessment Bonds - $14.95 million (principal) from which the infrastructure costs were estimated to be paid ($11.63 million initial deposit and the balance from interest)

Project Delivery / Contract Method

Not Available

Private Partner

Kansas Campus, LLC wholly owned by Erickson Retirement Communities, LLC, the developer

Project Advisors / Consultants

Kutak Rock LLP - Bond Counsel

Stone & Youngberg LLC - Underwriter

To the Developer

  • NSA Architects - Architect
  • V3 Companies - Engineer
  • Hitchcock Design Group - Landscape Architect
  • Peridian Group - Local Civil Engineer
Lenders

Bondholders

Duration / Status
  • Construction complete
Financial Status / Financial Performance

Closed

Innovations
  • The city capitalized on private investments to spur economic growth and improve transportation related infrastructure.
Related Links / Articles

Termination of the Special Assessment

Contacts

Not available

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