September 23, 2008 – Bonner, Wichita continue working with Christie
A sagging economy apparently has delayed a Christie Development Associates, LLC project at Bonner Springs, but city leaders remain optimistic that the retail development eventually will come to fruition.
Christie officials had looked at a 50-acre site in Bonner Springs for a retail complex with an anchor store that has not yet been announced to the public, community and economic development director Marcia Ashford said in a telephone interview this morning.
“We had even formed a TIF (tax increment financing) district,” Ashford said. “It just came down to whenever they got all their figures in for site development costs, it was not going to work out.”
Christie now is looking at a different site, containing about 15 to 17 acres.
“They’ve been a very professional group to work with. They’ve been very acceptable and up front with us, too,” Ashford said. “… So, we’re pleased that they’re still interested in Bonner Springs and wanting to develop there.”
The original retail development was to have been in an area near residential and commercial properties, similar to one under consideration now in Emporia. Nearby homeowners in Emporia have objected to the proximity of a major national retailer near the upscale residential area.
“But in our case, our residential subdivision is not having any issues with it,” Ashford said. “They’ve (Christie’s) told them they’ll do some nice buffering. …”
Houses near the planned development are “for the community, nice houses,” she said. “They start around $250,000-ish up to $325,000.”
Ashford said that the economy and the foundering housing market had affected progress on the development, though she anticipates a Christie project will come to fruition.
“I think a lot of retailers are really cutting back and kind of in a wait-and-see mode,” she said. “We’re hoping that 2009 opens things up a little bit more and the … entire economy turns around. I think that’s everybody’s hope.”
In Wichita, one retailer — Home Depot — has canceled plans for a project at 47th Street South and Broadway, according to a June 29, 2008, article by business columnist Carrie Rengers in the Wichita Eagle.
The article stated that the sinking economy had caused Home Depot to close 15 stores and not move forward with plans for 50 new ones.
The store planned in Wichita was one of those canceled. It too was a project of Christie Development Associates, LLC, of Overland Park.
Christie is buying back the 135,000 square feet of space from Home Depot, the Eagle reported, and Home Depot was to repay the $2.4 million in TIF money that had been associated with the project.
Home Depot received the TIF approval from the city to tear down the former Checkers and Big Lots buildings and clean up the area, which formerly was an oil field.
Wichita’s director of urban development, Allen Bell, was quoted in the article as describing the property as a worn-out old shopping center “and that’s one of the reasons why we have this kind of financing vehicle.”
“The money came in the form of nonrecourse bonds that are property-tax-driven revenue bonds,” the Eagle article stated. “That means if a building isn’t built and there are no taxes to collect, the investors who bought the bonds don’t have any recourse to get their money back.”
Dave Christie, president and founder of Christie Development Associates, LLC, was quoted as saying Home Depot had no obligation to pay off the bonds, other than moral and ethical issues.
“Home Depot is writing a check for a lot of money to pay the bonds off so nobody is stuck with a project that doesn’t work,” the Eagle quoted Christie as saying.