Archive for Friday, July 3, 2009

Retail uses in play for Farmland location

Investors think city should consider commercial plans

The former Farmland Industries site on the east edge of Lawrence has been vacant for several years. The city must decide whether to pursue ownership of the property or turn it over to private development interests.

The former Farmland Industries site on the east edge of Lawrence has been vacant for several years. The city must decide whether to pursue ownership of the property or turn it over to private development interests.

July 3, 2009

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An Overland Park investment group that at least partially controls the future of the former Farmland Industries site gave more details Thursday about what it hopes to do with the land.

Aaron Bowers, a member of Capitana Redevelopment Group, said he wanted to keep open the possibility that at least a portion of the 467-acre site on Lawrence’s eastern edge could be used for retail or commercial development.

That is a different vision from what city leaders — who have been working to purchase the site for more than three years — have stated. Commissioners have said the site should be used for an industrial or office park that could bring new jobs to the community.

Bowers said his group believed the site was suited for an industrial park, too, but said large amounts of frontage along Kansas Highway 10 could be attractive for more commercial uses.

“I think the city and our group share a common goal of getting the site back to its highest and best use,” Bowers said. “What we’re saying is that it would be premature to set in stone what the highest and best use is right now.”

Capitana has some leverage in the site’s future. Capitana this year purchased a legal interest in the approximately $10 million trust fund that has been set aside to maintain and clean up the environmentally blighted piece of property that became vacant when Farmland Industries filed for bankruptcy in 2002. That legal interest means the city must work with Capitana if the city hopes to purchase the property.

Mayor Rob Chestnut said he thought the focus should remain on using the site for industrial development, but acknowledged that the city would have to explore scenarios.

“As you get into it, you have to figure out what your opportunities are,” Chestnut said. “I don’t know if an industrial use can coexist with retail uses on the frontage or not.”

Bowers said he wanted to at least keep that possibility open.

“I think it is most likely that there might be multiple uses at that site,” Bowers said. “But I don’t think residential makes any sense there.”

Environmental issues also continue to be a question at the site. The Kansas Department of Health and Environment previously has estimated that it will cost $12 million to $15 million over the next 30 years to clean the site of years of fertilizer spills. There is about $10 million in a pair of trust funds established for the property from when Farmland filed for bankruptcy.

The city has hoped to gain access to those funds to clean the property, and has some optimism that it could clean the property for less than the KDHE estimate because it could use existing city employees to do some of the work.

A timeline for any type of deal to be worked out remains uncertain. Bowers said both sides were waiting for KDHE to release a plan for cleanup of the property.

A KDHE spokesman said a draft corrective action plan for the cleanup likely would be put out for public comment in September. A final plan could be approved by November.

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