The City of Parkville frequently receives questions and comments regarding the potential for development within Parkville’s city limits on properties near the intersection of I-435 and Route 45. The following webpage was created to respond to questions and provide a single source of accurate information about development prospects for this area. This webpage will be periodically updated as new information becomes available.
Last updated on June 22, 2016.
Frequently Asked Questions:
- Why is the City interested in development in this area?
- What does the City plan to build in this area?
- Are there any pending applications for development being considered in this area?
- Why did the City issue debt related to properties in this area, and what is the City’s current debt obligation related to the properties?
- What happens if/when assessments are not paid by property owners?
- What is a judicial foreclosure, and why did the City file foreclosure petitions on two of the properties?
- What is the status of the two judicial foreclosure proceedings?
- Will new sewer/street assessments be applied to existing homeowners to cover the City’s outstanding NID debt?
- Is the City doing anything to proactively encourage development in the area?
- What percent of the yearly NID assessments were paid by the property owners in 2016?
- What is the City’s strategy to cover the debt obligation in the event of assessment delinquencies?
- Will the City consider apartments or other multi-family housing in this area?
- Is multi-family housing a permitted use in this area?
- Is the City considering multi-family apartments as a way to retire the NID debt?
- Is there a better development concept for this area than multi-family housing?
- Would the City consider large lot residential development or other uses in lieu of multi-family housing?
- Did the City fund a study to evaluate apartment complexes?
- Are there improvements planned for Route 45?
- How can I stay informed about any future development proposals?
The Parkville corporate city limits extend west of I-435 and north of Route 152, so this area is part of the western entryway into Parkville. The City desires to accommodate appropriate development to support community growth and to aesthetically signify the entrance to Parkville. In addition, the City issued limited general obligation debt to support the extension of street and sewer infrastructure to the area. Appropriate development will ensure the City receives a return on that investment.
The City issued two requests for development proposals (RFPs) for the properties owned by the City of Parkville in 2016. The City asked respondents to propose development concepts appropriate for the area that are compatible with the city’s development objectives and Master Plan. The City will consider a wide range of development options for the sites. Responses will be evaluated by a selection committee and recommendation(s) will be made to the Board of Aldermen later this year (anticipated for November 2016). The recommendations will be evaluated in a public meeting so all questions may be heard and answered.
The City does not own all property at the intersection, and the City cannot build on properties that it does not control. That would be up to the property owners. In the event that a property owner wishes to build something on the property, an application would be made to the city. The application would be reviewed by staff for compliance with zoning and other applicable regulations. If rezoning is required, a public hearing would be conducted by the Planning and Zoning Commission, followed by a public meeting of the Board of Aldermen. Both are opportunities for all questions or concerns to be voiced in a public forum.
No. Although the City has participated in numerous informal discussions with property owners and developers regarding concepts, the City has received no formal applications for development in this area.
In 2006, the City of Parkville responded to petitions from private property owners and began the process to create two Neighborhood Improvement Districts (NIDs) in accordance with Sections 67.453 – 67.465 RSMo. Click here for a map of the properties within the NIDs. The City previously issued temporary notes to finance the construction of improvements, but upon completion of all the work, 20-year permanent financing was issued in June 2014, as follows:
- Limited General Obligation Bonds – Brush Creek Drainage Neighborhood Improvement District – Series 2014A – $5,375,000. The Brush Creek Drainage NID extended sanitary sewer utilities to all of the properties in the petition.
- Limited General Obligation Bonds – Brink Meyer Road Neighborhood Improvement District – Series 2014B – $3,675,000. The Brink Meyer Road NID financed the extension of Brink-Myers Road and a related retaining wall to serve the southeast quadrant of the intersection.
All of the City’s General Obligation debt is held by private investors (bondholders), and the City does not owe money to the Platte County Regional Sewer District related to the Brush Creek sanitary sewer. The NID debt is backed by special assessments on properties that benefit from the public road and sewer improvements that were constructed. Due to a variety of factors, including the recent economic recession, private development did not occur as envisioned or scheduled by the original owners. The majority of properties are now owned or controlled by Bank of Blue Valley and the City of Parkville. If the properties are delinquent on assessments, the City must absorb the cost to make the annual debt payments on the bonds.
Due to the lack of development, some assessments have not been paid on time and in full. The City has taken steps to manage the assessment delinquencies. The City has saved over $1.3 million of emergency reserve funds in part to protect against the debt liability. In May 2014, Standard & Poor’s upgraded the City’s credit rating to AA, a very high rating that indicates a very strong capacity to meet financial commitments. Any property that is delinquent on assessments will face penalties, including but not limited to a tax sale. All delinquent assessments must be satisfied before a property may be acquired at tax sale.
Platte County collects the assessments on behalf of the City per the terms of a collection agreement. Neighborhood improvement district special assessments that are not paid by the deadline set by the county are delinquent. After two years of delinquency, unpaid assessments, just like delinquent property taxes, are subject to a tax certificate sale at public auction. At the tax sale, the property must be sold for a minimum bid in an amount sufficient to pay the taxes (including assessments), interests, and charges owed on the property. If a bid is received, the owner has a one-year redemption period in which it may pay the back taxes to reclaim ownership. If a bid is not received, the property is held for a year and sold again. If needed, this process is repeated again for a third time. After that point, the County may sell the property at any time provided the property is re-advertised every three years.
A successful bidder receives a certificate of purchase and the total purchase price must be paid to the Collector’s Office immediately at the close of the sale. If the property sold at tax sale has not been redeemed during the one year redemption period, the holder of the certificate of purchase may apply for and receive a collector’s deed to the property.
The tax sale is held annually on the fourth Monday in August commencing at 10:00 a.m. in the County Commission room on the second floor in the Platte County Administration Building in Platte City, MO. Delinquent taxes with penalty, interest, and costs due thereon may be paid to the County Collector at any time before 10:00 a.m. on the sale date. The list of properties subject to sale is published in a local newspaper (The Platte County Landmark) for three consecutive weeks prior to the sale, and may be found online at www.plattecountycollector.com. The sale is conducted by the Platte County Collector proceeding through the list in the same order as listed in the newspaper publication. Each parcel offered for sale is individually identified by a brief legal description as it appears on the Assessor’s rolls.
For more information on the tax sale process please click here.
Judicial foreclosure is the process by which a property is sold through the court system to pay off unpaid debt. Missouri statutes state that a special assessment established under the NID Act becomes a lien against the property and may be foreclosed in the same manner as a tax upon real property by land tax sale. When a lien is foreclosed, the entire remaining assessment may be recoverable in a judicial foreclosure proceeding at the option of the city.
The City of Parkville filed petitions in Platte County Circuit Court to initiate foreclosure proceedings against two property owners in the Brush Creek and Brink Meyer NIDs because they were delinquent on the first installment of special assessments that were due December 31, 2014. The City felt judicial foreclosure was the best approach to enable the City to facilitate the future sale and appropriate development of the property. The City is committed to using every tool authorized by state law to compel collection of the unpaid assessments from the properties that petitioned for the improvements. The judicial foreclosure process allowed the City to accelerate the timeline that otherwise would have been used for the County’s regular annual tax sale.
Due to delinquent assessments, the City filed a petition for judicial foreclosure against Tract 9 (owned by 45 Park Place, LLC, an affiliate of Peoples Bank) on the southeast quadrant of the I-435 and Route 45 intersection in December 2015. On February 5, 2016, the judge awarded a default judgment to the City. The City subsequently took ownership of the property following a sheriff’s sale on May 24, 2016. All past, current and future NID assessments due on that property were “cleared” as part of the judicial foreclosure process. Although the property is now marketed as entirely assessment-free, the City still carries exposure of approximately $7.2 million in principal and interest over the 20-year life of the NID bonds. This amount may be reduced to approximately $6 million if the City is able to take advantage of an optional early redemption as soon as 2022. The City is seeking a development partner to offset the debt exposure through a combination of property sale proceeds and new economic activity.
The City also filed judicial foreclosure against Tract 1 (owned by Grounded Properties, LLC, an affiliate of Bank of Blue Valley). The bank negotiated a deed-in-lieu settlement agreement and conveyed title of the property to the City. The City is now cooperating with the bank to seek a development partner for this property and the property on the northwest quadrant of the intersection. Unlike Tract 9, the assessments are still due and payable for this property.
No. Under state and municipal finance law, the City cannot extend assessments for the Brush Creek and Brink Meyer improvements to properties outside of the NIDs.
On December 2, 2014, the Board of Aldermen conducted a work session to review the zoning, land use projections, development plans, and development challenges for all of the vacant NID properties. Click here to review the staff presentation from the work session. The City and Parkville Economic Development Council (PEDC) have participated in numerous meetings with the property owners and prospective developers to evaluate potential development options for the area. Unfortunately, many of the development concepts discussed so far only involve small portions of the properties (less than 5 acres), and do not address development challenges for the common areas. The City is mindful of how incremental development on small parcels will affect the broader area. The City has made clear that it will consider a range of economic development incentives within its discretion to assist with implementing the right kind of project(s) that are compatible with the Master Plan and will not have a detrimental impact on development for the rest of the area.
On September 9, 2015, the Board of Aldermen adopted a resolution of intent to use economic development incentives to promote appropriate development in the Brush Creek and Brink Meyer NIDs. The resolution affirms the City’s willingness to use public incentives to offset the impact of the NIDs assessments on development. The resolution is a policy statement that is intended to supplement the master Economic Development Incentive Policy. In accordance with the findings of the recent feasibility study, the resolution also affirms the Board’s willingness to support appropriate multi-family housing in this area. The resolution states that owners who are delinquent on NID assessments will not be considered for incentives, and Tract 9 (45 Park Place) will be given the highest priority for public incentives since it carries the greatest debt burden. Staff and the PEDC hope to use this policy as a marketing tool to generate more developer interest in the properties.
On June 22, 2016, the City concurrently released two Request for Proposals (RFPs) for (1) Tract 9 on the southeast quadrant of the intersection of I-435 and Route 45; and (2) Tracts 1, 3, 5 and 6 on the west side of I-435. The City views these as distinct and separate development opportunities but, due to proximity, each may have development implications for the other. Developers are encouraged to respond to both or either RFPs. The RFPs solicit interest from qualified developer(s) or development team(s) to design, construct, finance, own, and manage a development on the advertised properties. The City intends to convey the properties to a private partner but is not simply disposing of publicly owned property. Rather, the goal is to encourage development that will be an asset to the Interstate 435 and Route 45 corridor and the west side of Parkville by meeting the objectives outlined in the RFPs.
What percent of the yearly NID assessments were paid by the property owners in 2016?
The Brush Creek assessments collected $250,556 out of $388,030 (64.6%). Unfortunately, no collections (0%) were received for the Brink Meyer assessments of $275,166.
Note: numbers after deduction of county collection fee
In addition to the economic development efforts, staff and the Board of Aldermen devised a financial strategy to ensure adequate funding for debt payments if assessments continue at the 2015 level. The strategy involves the following:
- Series 2006 Certificates of Participation (COP) were refunded in December 2015, which will reduce the City’s annual principal and interest payments through 2027. These savings will be redirected to offset NID debt payments as needed. Payments using these savings may be combined with General Fund and temporary operating levy revenues as necessary to meet the NID debt payment obligations.
- The temporary operating levy currently authorized through 2024 may be renewed in 2025 through a “no tax increase” ballot issue. The levy will remain level but, due to the retirement of debt issued in 2006, the proceeds will be available to offset NID debt payments.
- Interfund loans will be authorized from the Emergency Reserve Fund as needed for debt payments. If and when delinquent assessments are ultimately collected through late payments or land sales, the proceeds will be reimbursed to the Emergency Reserve Fund.
Three charts are attached that graphically outline the strategy. Staff developed these materials to help communicate to the public that the City has a plan to meet its debt obligation related to the NIDs.
Yes. A portion of the property is currently zoned “R-4” Multiple-Family Residential District. In 2006, development plans were approved (following public hearings) for approximately 500 residential units in a mix of single-family homes, row houses, condominiums, and apartments. Although those development plans were never implemented, the zoning is in place to accommodate multi-family development. It would be expected that plans for multi-family development could be submitted for other properties zoned for these uses in the future. Any development proposal must meet all applicable regulations for zoning, density, quality, character, etc.
Yes. A portion of the property is currently zoned “R-4” Multiple-Family Residential District. Portions of other properties are zoned “RMD” Residential Multiple Dwelling District – a county zoning retained from the time of annexation. For those properties that retained county zoning, rezoning will need to be approved before development may proceed. Chapter 6 of the City’s Master Plan designates the following future land uses in this area: office/business park; mixed use; mixed use residential neighborhood; moderate density residential mix; and parks and open spaces. Projected land uses include multi-family housing in planned neighborhood developments.
No. The City has a financial strategy in place to help guard against any potential delinquencies on the NID assessments. All development proposals will be considered on their merits in accordance with applicable city standards and development regulations. However, the City desires to see development in this area as evidenced by its numerous prior public actions to extend public infrastructure and approve development plans in the area.
Maybe. The City is willing to consider all development proposals in accordance with applicable zoning, land use and regulatory requirements.
Yes. However, infrastructure was extended to support a higher density of commercial, office and residential development, and that investment may be too costly to support with some other lower density uses. The Brush Creek NID assessments are approximately $1,200 per acre per year over the life of the bonds (20 years). The Brink Meyer NID assessments were approximately $3,800 per acre per year. Developers, property owners, lenders, realtors and economic experts have communicated to the City that it is difficult to finance a project at a lower density due to the existing infrastructure costs that must be repaid through the NID assessments.
No. The City completed a study to evaluate the feasibility of a sports complex and other viable uses in this area. In 2014, the Parkville Economic Development Council (PEDC) appointed a task force to explore and promote development for the I-435/Route 45 intersection. The task force concluded that a soccer complex, or some similar youth sports facility, may potentially be a viable economic development project for the southeast quadrant of the intersection. The idea was to generate a customer base to support spin-off retail and commercial development. Based upon the recommendation of the EDC, and in consultation with the property owners, the City issued a Request for Proposals (RFP) for a market feasibility and economic impact study. The scope of the study was twofold: (1) to determine if a youth sports facility was viable on the proposed site; and (2) if not, to determine the highest and best alternative use for the site. The $40,000 cost of the study was shared by the City and the EDC.
The final report concluded that the best possible sports facility would be an 8-field (turf) soccer complex. The complex would serve recreational needs in the Kansas City northland, but it would not generate the level of associated economic development desired. Furthermore, the initial capital investment of $12-14 million made the project infeasible. Instead, the study concluded that most likely successful development, based on current market demand and demographics, is upscale multi-family apartments.
Yes. The Missouri Department of Transportation (MODOT) is partnering with Platte County and Parkville to complete the final stretch of widening and multi-modal improvements on Route 45 from Route K to Interstate 435. Route 45 has already been improved east of Route K to Interstate 29. Currently the project is in the utility relocation and right-of-way acquisition phase, and road construction is scheduled to begin later this summer. Click here for additional information about the Widening Route 45 Project.
Please click here to sign up for news and information updates via email. Click on “Community Development” and “Aldermen Meeting Information” to receive future agendas for the Planning & Zoning Commission and Board of Aldermen and public meeting/public hearing notices regarding development applications. The City will also update this web page as new information becomes available.