Cherokee South redevelopment progressing

Redevelopment efforts have gone into full swing at the Cherokee South Plaza Shopping Center.

Recessionary factors caused delays in revamping the Overland Park center, but ground was broken on the redevelopment phase in October.

The project developers, Tri-Land Properties Inc., originally had hoped work on the center could be completed by this winter, but summer 2010 now is the goal.

As with so many development projects, this one could not get started on time because, Tri-Land officials say, it took longer than expected to secure financing.

While the redevelopment work has been slowed, there has been considerable activity at the center site southwest of 95th Street and Antioch Road. In fact, a new 15,000-square-foot Walgreen’s drugstore on the corner of the intersection is nearly finished, and its grand opening is expected in mid January.

The $20.7 million redevelopment and the $1.7 million drugstore construction project got a boost from tax incentives.

Overland Park granted almost $3.5 million in Tax Increment Financing, or TIF bonds. The financing tool allows a development to pay some of its project costs with property and sales tax proceeds derived from new or improved buildings.

This was the first project for which Overland Park had granted TIF bonds. But city officials agree the incentive will be used more in the future.

The city has adopted a long-range redevelopment strategy for the Metcalf Avenue corridor, and city officials say realizing the goals of that Vision Metcalf plan probably is not likely unless tax incentives are offered.

The city commissioned a feasibility study of the proposed Cherokee South redevelopment and determined that it would not be financially feasible without the assistance provided by the TIF designation.

Tri-Land has several tenants already lined up for the 118,000-square-foot center once the redevelopment work is completed. Among the companies are Hallmark, H&R Block, the Paul Mitchell School and several other local and regional retailers and service providers.

The most recent tenant signing was with Jimmy John’s Gourmet Sandwiches, which will offer a drive-through service.

Tri-Land Executive Vice President of Acquisitions Hugh Robinson said negotiations with more potential tenants are under way. The recession has made many companies hesitant to commit to new stores and locations, but Robinson said Tri-Land has noted more interest lately among tenant prospects.

The center also will include outdoor patios, tree-lined walkways, sidewalk planters and public spaces for neighborhood use.

In announcing that the redevelopment work was getting under way, Robinson said, “We are excited that construction has officially begun on this great project. Cherokee South has been a community resource for years, and we are looking forward to delivering an improved destination with many upgrades and additional retail offerings.”

Most of the retail space at the original center was constructed in the early 1960s.

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