Developers request incentives for ‘ultra-accessible’ amusement park project in Olathe

More details for an “ultra-accessible” entertainment and youth athletic district proposed by members of the Hunt family in Olathe are starting to take shape.

The project — proposed at the corner of 119th Street and Renner Boulevard — comes from Loretto Properties, a development company run by Lamar Hunt, Jr., and his son-in-law, James Arkell. They want to use the Kansas Sales Tax and Revenue, or STAR, bond economic development tool, as well as some local incentives.

On Monday, the Olathe Planning Commission voted 9-0, finding that the planned Olathe Gateway STAR bond district development conforms with PlanOlathe, the city’s existing comprehensive plan.

The commission also voted 8-1, finding that the associated tax increment financing district plan conforms. Commissioner Tony Bergida cast the no vote, voicing skepticism in his questions earlier in the meeting that the project met the threshold for the intent of a TIF district.

The first phase of the development centered on the southwest corner of the intersection dubbed Olathe Gateway would cover about 64 acres and include an amusement park that is fully accessible and a 5,000-seat multi-sport complex.

“This particular development has a real opportunity to invigorate this corner,” City Attorney Ron Shaver said, noting past plans for this area of the city haven’t panned out.

What are STAR bonds?

• STAR bonds are designed to support development that will spur “major entertainment or tourism destinations,” according to the Kansas Department of Commerce.
• The debt accrued from the bonds issued to develop a project — along with interest — is then meant to be paid back over time with state and local sales taxes from within the project’s boundaries.
• STAR bond districts are usually in effect for 20 years.

Olathe STAR bond project to cost $320M in first phase

In addition to the sports arena and 18-acre amusement park called Michael’s Wonder World that will be the centerpieces of the project, Loretto is also proposing a 150-room hotel and sites for retail and dining.

A medical office building called a Multi-Assistance Center, which would offer a range of health, support and a myriad of other services for individuals who have disabilities, is planned, too.

Arkell and Hunt, Jr., drew inspiration for the project from Arkell’s son Michael, who was born with a genetic condition that requires him to use a wheelchair and a feeding tube.

The first phase comes with an estimated price tag of $320 million, per city documents.

In a previous interview wit the Post, Arkell estimated that they would request about $54 million through the STAR bond incentive. However, the project plan documents presented to the planning commission put the STAR bond proceed value at $79.2 million.

An additional $90.2 million in development costs could be eligible for reimbursement through the Olathe Gateway TIF district, according to the developer’s estimate. (The project plan anticipates just $23.4 million would actually be reimbursed through the TIF district.)

Plus, another $10 million in revenue could reimburse the developer with a proposed Community Improvement District, another incentive.

The developer has also requested Olathe divert a portion of its transient guest tax revenue from the planned hotel to help pay for the project and about $5 million in other unspecified city funds.

The arena and amusement park are expected to attract an average of 725,000 visitors each year, and open in time for the 2026 World Cup.

Though a portion of the property on the northeast corner of the intersection at 119th and Renner is included in the STAR bond district, there are so far no clear plans for that 69-acre site, Arkell has said.

City council to set key dates for Olathe Gateway project

Next steps:

• While city leaders have so far voiced support for the Olathe Gateway STAR bond project, it’s by no means a done deal.
• City staff and the developer are still negotiating the development agreement, which will require city council approval.
• In early 2025, the city council will also vote on an ordinance that would, if approved, set up the issuance of the STAR bonds.
• Before then, the city will likely have many more public discussions related to the project, and is obligated to hold some public hearings along the way.
• Additionally, an associated zoning amendment and revised preliminary site development plan for the project are expected to work their way through the city’s planning process soon.

Keep reading: Olathe moves ahead with STAR bond district for ‘ultra-accessible’ amusement park, sports arena