When they met Tuesday, Leavenworth city commissioners were briefed on a proposal for the redevelopment of property at Sixth Street and Metropolitan Avenue.

When they met Tuesday, Leavenworth city commissioners were briefed on a proposal for the redevelopment of property at Sixth Street and Metropolitan Avenue.

The project would redevelop about 3.5 acres.

The developers are seeking incentives from the city in the form of tax increment financing.

Commissioners took no formal action during Tuesday's meeting, which was a study session. But Mayor Jermaine Wilson said there was a consensus among commissioners to move forward to continue to work with the developers.

"I think it's exciting for that part of town," Commissioner Mark Preisinger said of the project. "It will have a new look."

Preisinger was not in the commission meeting room Tuesday but he participated by telephone.

Justin Kaufmann, a principal with Cadence Real Estate, Overland Park, and Korb Maxwell, an attorney with the Polsinelli law firm, Kansas City, Missouri, discussed the proposed project with commissioners.

The project would include land that currently houses the Commander's Inn, 1118 N. Sixth St. and Armed Forces Bank, 615 Metropolitan Ave.

"We've had our eye on this property for quite some time," Kaufmann said.

He said there are no committed tenants at this point for the planned redevelopment, but there are interested parties.

Maxwell said developers have an idea of the types of businesses that would be located at the redeveloped site. These include an ATM, a higher end convenience store, a couple of restaurants and retail or office space.

"That could change or morph over time," Maxwell said.

He estimated that project will cost more than $7 million. This includes site acquisition and construction costs.

The site is already located in what has been designated as a tax increment financing district.

When a project utilizes tax increment financing, increases in property tax and sales tax revenues can be used to reimburse a developer. Money generated through the TIF program can be used for things such as land acquisition, site preparation and infrastructure, according to the Kansas Department of Commerce website.

Using the TIF program, the developers are seeking to utilize 100 percent of the incremental property tax revenue over a 20-year period as well as 50% of the incremental revenue from the city's sales tax generated as a result of the project, Maxwell said.

He said the developers also are requesting money from excess proceeds that have resulted from existing projects in the TIF district.

He estimated that the requested tax increment financing revenues for the project would total $2.7 million.

Maxwell said the developers also would seek to create a community improvement district, which would increase the sales tax for that area by 1.25%. He estimated that the CID sales tax would generate an additional $577,000 for the project.

Maxwell argued that the property would generate about $1.7 million in taxes for various taxing entities over 20 years if the site were to be left as it currently is. He argued the property will generate almost $9 million in taxes during the same period if it is redeveloped.

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