The Unified Government’s Economic Development and Finance standing committee approved a letter of intent to reopen the former Merc grocery store under new management, okayed a $4.35 million workforce housing investment from Homefield, increased the industrial revenue bond cap for North Point Development and transferred emergency funds to a surging senior citizen rebate program during a Monday, Mar. 30 meeting that lasted over four and a half hours. Commissioner Carlos Pacheco (District 5) also introduced a new property tax relief proposal that would create circuit-breaker rebates for homeowners across the income spectrum.

All seven committee members were present: Chair Commissioner Melissa Bynum (at-large, District 1), Commissioner Jermaine Howard (District 1), Commissioner Bill Burns (District 2), Pacheco, Commissioner Chuck Stites (District 7), Commissioner Andrew Davis (District 8) and BPU Board Member David Haley.

High demand for senior rebate requires additional funding

Clerk Monica Sparks opened the meeting by presenting what she called “a good problem.” The senior citizen tax refund program, which provides utility, sales tax and property tax rebates to qualifying seniors, has seen explosive growth. Applications have jumped from about 700 in the 2023-2024 cycle to roughly 1,600 so far this year, with more than two weeks still remaining in the application period.

Sparks said the program had already processed $514 thousand in rebates and was projected to exceed its $620 thousand budget by about $147 thousand. Staff requested a $175 thousand transfer from the city general fund’s contingency reserves to cover the shortfall and anticipated additional applications. She attributed the surge partly to a new collaboration with the VITA volunteer income tax assistance program, which began referring eligible residents this year.

Budget Director Reginald Lindsey confirmed the transfer would be “a minimal hit” on the roughly $184 million city general fund budget.

Pacheco raised forward-looking questions, asking whether the program would need a built-in annual escalator. “At what point are we capping it?” he said. “Maybe somebody who’s done it for a few years in a row, and there’s a new applicant, maybe we say you can only do it so many times.”

Davis urged colleagues and the public to promote the program, calling it “one of the most accessible financial resources that can provide immediate relief” and noting that “it provides more relief than a reduction of the mill levy.”

The committee voted 7-0 to approve the transfer and fast-track it to the Apr. 2 full commission meeting.

North Point industrial revenue bond increase

The committee considered an amendment to the industrial revenue bond agreement for North Point Development’s Turner Logistics Center at I-70 and the Turner Diagonal. The amendment would increase the anticipated project cost from $155 million to $250 million, reflecting higher construction costs since the original 2019 agreement.

Chief Financial Officer Shelley Kneuvean explained that five of eight planned buildings are complete and fully leased, with 11 companies and roughly 2 million square feet of space. North Point has paid $679,422 in PILOT payments to the unified government. The next two buildings, at 304 thousand and 407 thousand square feet, would generate an additional $213 thousand annually in PILOT payments, compared to about $6,500 the vacant land currently produces.

Bond counsel Kevin Wempe of Gilmore & Bell law firm explained that industrial revenue bonds are “really just a vehicle for granting incentives,” providing up to 10 years of property tax abatement and sales tax exemption on construction materials. He emphasized that the $250 million figure represents total construction value for all eight buildings, not a sales tax exemption amount.

Greg Kindle of the Wyandotte Economic Development Council spoke in support, highlighting that North Point is the largest industrial developer in the country and that existing tenants include Orange EV, which now employs nearly 400 people. “This is the kind of signal you want, where you’ve got a developer who has already built five of the eight buildings and they want to invest more in our community,” Kindle said.⁵

A member of the public asked whether there were protections against the buildings being converted to a federal detention facility. North Point co-founder Brent Miles said the company does not sell or convert its industrial facilities and would support any restrictive language the commission wanted to add. Outside counsel confirmed that the existing development agreement already requires commission approval for any change of use or ownership.

The committee voted 7-0 to set a public hearing for Thursday, Apr. 16.

Santa Fe Grocers to reopen former Merc as United Market

In perhaps the evening’s most closely watched item, the committee approved a letter of intent with Santa Fe Grocers to manage and operate a full-service grocery store at 501 Minnesota Avenue, the site of the former Merc Co-op that closed in December. The store would operate under the name United Market.

Outside counsel Todd LaSala explained that the arrangement must be structured as a management agreement rather than a lease or sale because the building was financed with new market tax credits that have not yet unwound. Under the proposed terms, Santa Fe Grocers would handle all operations, including ordering inventory, hiring personnel and maintaining the store. The UG would remain responsible for structural and capital repairs.

Santa Fe plans to invest approximately $572,000 in renovations, including a full-service meat counter with butchers on staff, a scratch bakery with an oven, a dedicated produce cooler and two additional grocery aisles created by removing the existing seating area. The UG’s contribution would be $150,000 toward those improvements. After a one-year stabilization period, the operator would pay a $5,000 monthly occupancy fee, with three percent annual increases during renewal terms. The store would not carry alcohol, instead maximizing cooler space for dairy products.

Anthony Estrada, who would operate the store, told the committee he sees roughly $2 million in weekly shopping potential within a two-mile radius. He said approximately 34 percent of residents in the trade area currently have no designated grocery store and instead shop at multiple locations. Estrada, who previously managed the Sun Fresh store on 18th Street and is opening a United Market location in Kansas City, Mo., said the two stores would share staff and resources.

“I’m committed not to” raise prices to compensate for operating in an urban area, Estrada said. “I’d like to have the right items at the right price.” He said Associated Wholesale Grocers projects average weekly sales of about $145,000.

The store would accept EBT and SNAP payments, and if feasible, WIC. Operating hours would be 8 a.m. to 8 p.m. daily. Estrada committed to hiring locally, noting that at his 18th Street store roughly 90 percent of staff lived in the surrounding community.

Stites pressed on the $150,000 taxpayer contribution and the history of the previous Merc deal, which multiple commissioners acknowledged was unfavorable to the UG. “I don’t want this to be another bad deal,” Stites said. But he ultimately expressed support for the operator.

Pacheco ran the numbers aloud, calculating that Estrada is putting up 81 percent of the upfront risk between the renovations and the cost of stocking the store. “This is not just the best option we have, but actually a pretty good option,” he said.

Davis offered strong support, noting that without an operating store, the UG faces roughly $1.2 million in annual general obligation debt payments tied to the building’s original financing. Kneuvean confirmed those bonds do not retire until 2038. Davis said he wished the timeline to sell the property could be shortened from three years to two.

The letter of intent also contemplates an option for Santa Fe Grocers to purchase the building at fair market value after approximately two years, with the monthly occupancy fees credited against the purchase price. A 10-year deed restriction would require the property to remain a grocery store after any sale.

Several residents and a letter from Pastor Cedric Rowan urged the grocer to hold community listening sessions and stock culturally diverse, affordable products. Estrada said he is already conducting monthly community meetings on the Missouri side and committed to doing the same in Wyandotte County. He also described plans to sell goods to local churches and nonprofits at 10 percent above cost.

The committee voted 7-0 to approve the letter of intent and fast-track it to the Apr. 2 meeting.

Homefield to invest $4.35 million in workforce housing

Homefield, the developer of the entertainment district on the west side of Wyandotte County that includes the KCK Showcase Center, Atlas 9 and Margaritaville Resort, presented its plan to fulfill a community investment obligation in its development agreement. The company will invest $4.35 million in workforce housing over the next two years, aiming to build approximately 20 homes at a target price point of around $250,000.

Attorney Curt Peterson, representing Homefield, said the company’s owners have experience in residential development, concrete, asphalt and site work. He said they are looking for lots in Wyandotte County, with a preference for land bank parcels, and are open to partnering with local builders.

Peterson shared Placer AI data showing the Homefield sports facilities drew 425 thousand visits to the baseball complex and 345 thousand visits to the courts facility last year, with visitors traveling from across the region and spending at local hotels and restaurants.

LaSala cautioned the committee not to fixate on the number 20, noting that at $250,000 per home, 20 units would exceed the $4.35 million commitment. “I personally think the number 20 is dangerous,” he said. “I don’t think that’s going to be the number.”

Davis called the investment “a game changer,” noting that homes at that price point could generate roughly $100 thousand in ongoing annual property tax revenue across the UG, schools, library and community college. “I see this as something that we’ve needed to do for a while, which is take some of the wealth and the resources that we’ve seen on the west side and find a vehicle and a way to get it east of [I-635],” he said.

Howard sought clarity on where exactly the homes would be built. The development agreement specifies “downtown and historically urban areas of KCK,” which LaSala said encompasses multiple districts. Burns reminded the committee that “east of 635 also includes District 2. The committee agreed to require quarterly progress reports.

The committee voted 7-0 to approve and fast-track the resolution to the Apr. 2 meeting.

American Royal subcommittee formed

Bynum reminded the committee that the American Royal development agreement included a $5 million origination fee for local economic development, plus $1.3 million in annual payments after the bonds are retired. A subcommittee must meet within 60 days of the bond issuance to decide how to spend the initial $5 million.

Kneuvean clarified that the $5 million origination fee must be used for “economic development activity,” but the subsequent $1.3 million annual payments are classified as donations with broader permissible uses. “Your parameters are broader there,” LaSala told the committee.

The committee nominated and approved Stites to join Bynum on the subcommittee, which will also include the chair and one member of the Public Works and Safety committee plus the mayor. Pacheco recused himself from consideration, citing his wife’s due date of Apr. 10.

Pacheco introduces CARES property tax rebate proposal

In the meeting’s final discussion item, Pacheco presented a proposal called CARES, for Circuit-breaker Assistance for Resident Equity. The program would provide property tax rebates to homeowners through three triggers.

The first is an income protection rebate, which would apply when county property taxes exceed a set percentage of household income, such as 5 percent. The second is a valuation spike rebate for homeowners whose property assessments jump more than a threshold such as 10 percent in a single year. The third is a longtime homeowner protection rebate for residents who have owned their homes for 10 or more years, rebating a portion of their year-over-year county tax increase.

Pacheco said the program would deliver roughly $250 to $500 for most qualifying households, with a potential maximum of $1,000. He argued that circuit-breaker programs are superior to valuation caps, which he said “pick winners and losers,” or to eliminating property taxes entirely, which would require sales tax increases of 20 to 25 percent that would disproportionately burden lower-income families. He cited Philadelphia, Birmingham and Chicago as cities with similar programs.

Pacheco envisioned funding the rebates through development-driven revenue, as properties come off abatement and onto the full tax rolls.

Kneuvean noted that the Kansas legislature recently passed a bill imposing a three percent cap on property tax revenue growth for cities and counties, though it is expected to be vetoed. She said the veto session is set for Apr. 11.

Davis suggested the UG could approach other taxing jurisdictions, such as the school district, to partner on administering relief. He also questioned whether participants in existing senior rebate programs should be eligible for CARES, to prevent duplication.

Burns urged caution about expanding bureaucracy. “If we continue to have programs like this, we’re contributing to the wall of bureaucracy in this building, which is too thick right now,” he said.

Sparks noted the existing rebate program has been in place since 1972 and that her office already has income verification procedures that could potentially be adapted.

Bruce Draper, president of Churches United for Justice, spoke during public comment, calling the proposal “the only thing I’ve ever seen that is a Wyandotte County solution for a Wyandotte County problem that can be addressed here locally.” Resident Teresa Fazette also spoke in support, saying the middle class “is starting to shrink” under the weight of rising property taxes.

The item was for information only. Staff indicated further analysis would be forthcoming.

Other business

The committee approved a resolution authorizing the UG to amend its master equipment lease-purchase agreement with Banc of America. The resolution covers $9.9 million in vehicles and equipment, of which approximately $6.6 million is expected to be financed in 2026, including police cars, fire trucks, ambulances and other fleet vehicles. The vote was 7-0.

The committee deferred its fourth-quarter 2025 financial report, along with a presentation from UMB Bank on community reinvestment, to the May meeting. Bynum said the report was “too important” to rush through at the end of a long evening. Kneuvean said she would present the 2025 year-end report in May, followed by a first-quarter 2026 report in June.