Community Improvement District - Corinth Square Shopping Center

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Project Info

Corinth Square EntryOn April 2, 2010, CSN Retail Partners, LLC submitted a petition for the establishment of a Community Improvement District at the Corinth Square Shopping Center. Lane4 Property Group, representing CSN Retail Partners LLC, also submitted the necessary application materials as required in Council Policy CP059 – City Assistance and Redevelopment Projects.

The City Council approved the establishment of a Community Improvement District (CID) at the Corinth Square Shopping Center on September 20, 2011. The Corinth Shopping Center CID will collect an additional 1% sales tax effective January 1, 2011. The additional 1% will be in effect for a maximum of 22 years.  This current sales tax rate at Corinth Square Shopping Center is 9.375%.

Corinth Square Southeast PlazaAs part of the Corinth Square Shopping Center CID, the City Council and CSN Retail Partners LLC signed a Development Agreement which establishes the allowable uses of the additional sales tax funds.  Under the Agreement the Developer is  required to start at least one Signature Project within 2 years from the approval of the Agreement.  The Signature Project must be completed within 5 years. The developer must complete another CID project within 5 years of the completion of the last CID project or within 2 years after the full reimbursement of the last completed project.

The Corinth Square Signature Projects are limited to redevelopment of the former Tippin’s building (Project A1: Lot E) or façade improvements to the main Corinth Square Buildings (Project A2). Both projects include improvements to the area around the main buildings. This includes enhanced pedestrian walkways, new irrigation system, new permanent planters, benches, trash receptacles, bike racks, and increased landscaping.  The developer is eligible for reimbursement of allowable project costs associated with these two Signature Projects. 

The Development Agreement also allows for the reimbursement of costs associated with the construction of a multi-use trail along on the south side of Somerset Drive.  The trail project is a City of Prairie Village project and will be constructed with the reconfiguration of Somerset Drive in the summer of 2011. See the Somerset Drive Project Page for more information.

Additional reimbursable target projects in the Corinth Square CID are Project B (Town Square), Project C (Buildings C, D & G Modifications), and Project D (Other Corinth Square Redevelopment). See Exhibit C of the Development Agreement for more information regarding the allowable projects.  In addition to target projects, the developer is also eligible for tenant incentive and improvement projects as outlined in the Development Agreement.

The City has approved one amendment to the Corinth Square Shops Community Improvement District Development Agreement.  On November 21, 2011, the City Council voted to approve an Amendment to modify Exhibit C to include Project B2: Johnny's and Project B3: Lot H - Arby's.  Click Here for a copy of the amendment.

How is the Additional 1% CID Sales Tax Collected and Used

At the time of each purchase, an additional 1% sales tax is collected by the retailer and sent to the Kansas Department of Revenue.  The Kansas Department of revenue then distributes the additional 1% to the City of Prairie Village which deposits the funds in a separate account.  The CID proceeds can only be used for items as outlined in the Development Agreement.

The City of Prairie Village holds all funds collected by the CID until the developer requests reimbursement for an allowable expense (i.e. signature project, target project, or tenant projects).  The City then reviews the reimbursement request to ensure that it was an eligible expense and has been completed.  Upon the completion of the project, the City would then reimburse the developer for any eligible expenses.     

The Developer is reimbursed on what is called a "pay as you go" basis.  This means the Developer only receives funds based on the amount of cash in the Corinth Square Shops CID Fund. The City is under no obligation to issue bonds for any project costs. If the City Council decides it is in the best interest of the City to issue bonds, it may do so, however, the decision to issue bonds is entirely up to the City Council.

How much Revenue has the CID generated?

The 1% CID sales tax collection began on January 1, 2011.  The State of the Kansas collects the CID sales tax from the respective merchant and then remits the sales tax on a monthly basis. The CID sales tax is collected and placed in the Corinth Square Shops CID fund. At the time the Corinth Square Shops CID was established, it was estimated the CID would generate between $400,000-$450,000 per year. The actual amount will vary from year to year depending on the actual sales within the CID.

The chart below provides a graphic representation of the monthly CID sales tax collected. Please note the graph starts on March 2011, because sales tax receipts are received two months after which they are collected from the retail establishment. This allows each retailer time to file the sales tax report and processing time for the Kansas Department of Revenue.

 

The chart below shows the yearly Prairie Village Shops CID sales tax revenue received by the City from the Kansas Department of Revenue.

How much has been spent on Developer CID projects and associated costs?

All of the Corinth Square Shops CID funds received from the Kansas Department of Revenue are held in a separate fund administered by the City. Under the Development Agreement the Developer submits reimbursement requests related to the approved projects. Project costs include both soft costs (attorney fees, application fees, design fees, etc.) and hard costs (actual construction costs). A percentage of Tenant Improvement Projects may also be eligible for reimbursement based on additional requirements outlined in the Development Agreement (See page 2 of the Development Agreement).

Under the Development Agreement the Developer may also submit for reimbursement of interest from the time the expense occurred to when the expense is reimbursed with CID funds. The interest is simple interest based on prime plus an additional 2%. Tenant Improvement Projects are not eligible for interest reimbursement.

The chart below contains the approved Developer Reimbursement Requests. A copy of the approved request can be viewed by clicking on the document link below.

Developer Corinth Square Shops CID Reimbursement Requests Approved Amount
Developer Reimbursement Request #1 10/13/2011 $136,398.05
Developer Reimbursement Request #2 02/25/2012 $97,489.47
Developer Reimbursement Request #3 10/04/2012 $79,985.70
Developer Reimbursement Request #4 03/12/2013 $1,034,940.94*
Developer Reimbursement Request #5 08/12/2013 $1,700,193.30**
Developer Reimbursement Request #6 08/21/2013 $631,983.55**
Developer Reimbursement Request #7 12/24/2013 $381,141.51**
Developer Reimbursement Request #8 05/05/2014 $46,399.70**
Developer Reimbursement Request #9 06/16/2014 $70,857.33**
Developer Reimbursement Request #10 09/29/2014 $14,378.00**

*Partial payment was made because there currently are not sufficient funds in the Corinth Square Shops CID Fund.

**Reimbursement request has been submitted, reviewed, and approved for payment, but funds are not currently available for reimbursement.  Payments will be made as sales tax revenues are received in the CID Fund.

Does the City of Prairie Village receive any Corinth Square Shops CID funds?

Under the Developer Agreement the City receives CID funds for an annual administration fee, reimbursement of legal and technical assistant costs, and reimbursement of costs associated with the construction of a public trail along Somerset Road.

The annual administration fee is used to offset costs the City incurs related to the tracking of CID funds, administration of CID projects including review of the Developer Reimbursement Requests and ensuring construction is completed according to the approved plans. From time to time, the City incurs costs associated with legal review of documents and is also eligible for reimbursement of these costs.

The Annual Administration fee is calculated on a percentage basis of 2.5% of the net CID sales tax received from the Kansas Department of Revenue. The Annual Administration fee cannot exceed $20,000 per year.

Under the Development Agreement the City may also submit for reimbursement of interest from the time the expense occurred to when the expense is reimbursed with CID funds. The interest is simple interest based on prime plus an additional 2%.

The chart below summarizes the City reimbursement requests which have been approved and paid with the Prairie Village Shops CID funds.

City Corinth Square Shops CID Reimbursement Requests Approved Amount
2011 Annual Administration Fee 03/08/2012 $10,754.59
2012 Annual Administration Fee 02/21/2013 $11,113.08
2013 Annual Administration Fee 12/31/2013 $11,935.45
City Reimbursement Request #1 06/04/2013 $4,271.68

Finally, under the terms of the Development Agreement $125,000 has been identified for the construction of a public trail along Somerset Road. To establish funds for construction, $50,000 per year is set aside until the $125,000 balance is reached. The City will then use these funds to construct the trail and any unused funds will be returned to the Corinth Square CID Fund for use for CID Developer Projects.

The chart below summaries the allocation of funds under the Trail provision of the Development Agreement. The City has not submitted for reimbursement of any trail related costs at this time. Once the construction of the trail has been completed and the project costs are finalized the City will request reimbursement from the funds shown below.

Somerset Trail CID Funds Approved Amount Balance
2011 Trail Annual Allocation 03/08/2012 $50,000 $50,000
2012 Trail Annual Allocation 02/21/2013 $50,000 $100,000
Trail Expenses 1/10/2014 $50,978.87 $49,021.23
2013 Trail Reimbursement 12/31/2013 $49,021.23 $0
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Updates

June 12, 2013 - The Hen House Renovations are complete.  A ribbon cutting ceremony was held on June 12th.  The Project Page Information has been updated to include information on Revenue Generated, Developer Reimbursements, and City Reimbursements.

August 15, 2012 - Lane4 Property Group continues to make improvements to Corinth Square.  The entrances on Mission Road have been consolidated into one central entrance.  The southwest and northwest plazas will be complete in the coming weeks.  The main center improvements are expected to be completed this fall.  With the completion of the main center improvements, improvements to the Hen House Grocery store will begin.  Hen House Improvements include façade improvements and interior upgrades.  The interior upgrades are not funded through the CID.

February 27, 2012 - If you have not noticed, the former Tippins building demolition has been completed.  Construction of the new CVS building will begin in the coming weeks.  Construction is anticipated to be completed for an August 2012 opening of the CVS.  The CVS project is not funded with Community Improvement Funds.

There will be a lot of activity at the Corinth Shopping Center this spring and summer with two additional projects getting underway.  The first will be parking lot improvements.  This will involve consolidation of the two entrances along Mission Road into a single centered entrance, new lighting and landscaping.  The second project will be façade improvements for the main building.  The façade improvements will be completed by this fall.  These two improvements are being funded with Community Improvement Funds.

All of this construction will cause some inconvenience, so please continue to patronize the Corinth merchants.  Once the construction is complete, Corinth Square will have a brand new look to enjoy for years to come.  Check out the design plans.

September 14, 2011 - At their September 6th meeting, the Planning Commission approved with conditions the site plan, sign standards and the preliminary and final plats for the Corinth Square Improvements. Improvements will begin in spring 2012.

August 24, 2011 - Lane4 submitted plans for major improvements to Corinth Square as part of the CID.  Improvements include: facade improvements to the main building and Hen House, reducing the number of entrances on Mission Road from two to one, and landscaping improvements.  The Planning Commission will consider the plans at the September 6th meeting.  Staff report and Planning Commission Packet will be available on Friday, Sept. 2nd.