About a month after withdrawing a bid to sell a portion of its campus for retail use, it is unclear what Kansas City, Mo.-based Cerner's plans are moving forward with developing the space, according to a Feb. 18 Kansas City Star report.
In 2013, the Kansas City Council granted Cerner $1.63 billion in tax increment financing for the company's 290-acre Innovations Campus. After months of negotiations with the Tax Increment Financing Commission of Kansas City, Cerner in January retracted its bid to remove the retail development portion of its plan and allow other owners to take over the property. The $1.63 billion TIF award is part of an incentive program that redirects tax revenues back to developers.
Scott Siemers, a vice president at Cerner, said the company in 2013 originally believed it could finish the retail development but was unaware of the complications associated with it, according to the report.
Cerner recently told city officials it is struggling to find third-party developers who are willing to participate in the project due to requirements of the incentive award, the publication reports. To receive the TIF incentives, the project must meet goals such as paying workers a prevailing wage and onboarding a specific number of minority- and female-owned businesses.
Some retail developments, however, are underway. The Kansas City planning department has been notified of plans to build a Hampton Inn and a Taco Bell on the campus, according to the report.
While Cerner wants to sell the campus portion off to third-party developers, Mr. Siemers said the company would add some restrictions on land sales and be mindful of what types of developments it chooses for the area.
"We look at this as our front door," he said. "So frankly we're not going to do anything that is going to be anti-neighborhood or anti our campus."
Cerner is required to notify the TIF Commission before selling the portion of its campus, and any future buyer must follow some of the regulations tied to Cerner's agreement with the city.