A private developer’s attempt in obtaining an additional sales tax for capital improvements in Independence is tabled indefinitely.
Because of ongoing litigation, Noland Fashion Square Partners LLC’s petition to form a Community Improvement District at Noland Fashion Square along U.S. 40 and Noland Road is on hold. The Independence City Council unanimously voted Monday night to table the petition until further notice from city staff.
The CID, as a 1 percent jurisdictional sales tax increase, would have funded capital improvements at the shopping center, which two independent agencies have concluded is blighted.
Major tenants at Noland Fashion Square include Toys R-Us, Gordman’s, Olive Garden, Cinema 6, KC Discount Party Store, Brown’s Antiques and Catherine’s.
Bank of America v. Noland Fashion Square Partners LLC was filed on Oct. 19, just one week after a public hearing took place on the proposed CID.
City Counselor Allen Garner said the lawsuit was filed because of debt structure related to the shopping development, which has existed since 1987.
The developer had proposed $15 million of private investment with its CID petition, which included $12 million toward refinancing debt.
Because of the litigation, the Kansas City-based LANE4 Property Group was appointed the receiver.
By definition, a receiver is a person appointed to settle business affairs during a corporation’s reorganization.
“We are trying to get with the parties, sort everything back out and figure what needs to happen and what’s appropriate,” Garner said.
Jennifer Clark, Community Development Department director, said the receiver is responsible for making decisions associated with the property and that Noland Fashion Square Partners LLC cannot enter legal agreements like the proposed CID at this time.
A hearing is scheduled on the case for late January in Division 14 of Circuit Court.
“It cannot be executed even if it was approved at this point until the issues in the court order have been resolved,” Clark said. “Once they have been resolved, we can take it up again.”
City staff had recommended denial of the petition because “the market study does not indicate a demand for the supply; and the blight study does not provide substantial evidence to use public funds for privately owned facility.”
Centerpoint Medical Center Community Ice
Council members unanimously approved an emergency ordinance authorizing a corporate sponsorship agreement with Centerpoint Medical Center for the naming rights of the Independence Events Center’s community ice rink. Through a 10-year deal, the rink will be referred to as the Centerpoint Medical Center Community Ice.
