KSHB 41 reporter Rachel Henderson covers neighborhoods in Wyandotte and Leavenworth counties. Share your story idea with Rachel.
—
The Unified Government and developer Eastside Innovation remain far apart on key terms for the Indian Springs Mall site redevelopment, and a funding deadline is adding new urgency to the stalled project.
Doors with boards over them and trash now cover a site that was once a popular shopping mall in Kansas City, Kansas.
More than a year after an update on the Indian Springs development, residents are still asking: What's the holdup?
John Javins has done a lot of waiting.
He's lived across from the Indian Springs site for decades and remembers when the mall flourished.
"It was great,” Javins said. “They used to have all kinds of stuff.”
That's hard to believe when looking at the former mall site today.
"It's more stressful and upsetting to see it like this," Javins said.
Developer Erik Murray, managing partner of Eastside Innovation, said his company has spent three years working with the Unified Government and has revised its plan three times.
The proposed development — Midtown Station — would include 2,000 units of multi-family housing, 63 single-family homes, 150 townhomes, affordable housing, a childcare center, retail, a hotel and a grocery store.
Murray says he has the support of the mayor and most commissioners.
"The reality is, we've been hung up with the Unified Government, the county administrator's office and the Wyandotte Economic Development Council,” Murray said.
I first met Murray at the site over a year ago.
The UG awarded Eastside Innovation a request for proposal, or RFP, to develop the site at that time.
"It would make the site look way better than what it is right now," Javins said.
One of the central sticking points is the cost of the land.
Murray says he was told in public meetings by a staffer — who is no longer with the UG — that the land would be free.
When asked for that in writing, Murray said he did not have it.
"That was said multiple times in public, that was understood,” Murray said. “That was not ever published in the RFP. So again, I get it. If they say, 'Well, Erik, you can't rely on that.'"
He says he's willing to pay the same price the previous developer paid for the land, but County Administrator David Johnston says that's not possible.
The UG obtained a market appraisal that valued the land at $6.12 million — a price Murray says doesn't work for the project, especially considering the environmental issues he says the land has.
"We then, just a few months ago, were told by the county administrator's office that they wanted $6 million for the site," Murray said. "We want Wyandotte Countians and community members to be able to afford this end product. That is why a $6 million number doesn't work.”
Johnston says the UG is following state law and is obligated to act as a responsible steward of public resources.
He noted the UG issued approximately $28 million in bonds to acquire and demolish the site before the appraisal was conducted.
"There's already been a significant public investment in acquiring that property," Johnston said. “For us to sell it for less would not be a good steward of public resources.”
Beyond the land cost, Johnston says the UG has unresolved questions about how Murray plans to finance the project.
"[He] has ideas, but there's no concrete capital stack," Johnston said.
Murray disputes that characterization.
"We have shown them that capital stack, we have provided those letters," Murray said.
Murray says the project has nine sources of capital, one of which is time-sensitive.
Eastside Innovation wants to install a solar array that would power most or all of the development.
The project is located in a federal opportunity zone, and the development relies in part on investment tax credits tied to a solar microgrid.
Murray says if the project does not have an interconnection agreement from the Board of Public Utilities and has not broken ground on the solar microgrid by July 4, those tax credits — worth an estimated $30 million — will be lost.
"If we don't get that going by July 4, that investment tax credit goes away, somewhere to the tune of $30 million of potential funding," Murray said. “To their point, if the UG continues to stall, we will lose funding.”
Murray says he also submitted a 200-page development plan to the UG approximately two months ago and has not heard back.
"It is imperative that we get this moving," Murray said.
Johnston acknowledged the urgency felt by multiple parties.
"I know Mr. Murray's getting anxious, I know some of our commissioners are getting anxious that a decision one way or another gets done so we can move forward, but it has to be good for the community," Johnston said.
Johnston also acknowledged that Murray could lose the RFP altogether.
Section 2.07 of the RFP outlines failure to negotiate, which could result in the UG terminating negotiations with the offeror initially selected and "commence negotiations with the next highest ranked offeror."
"Oh yeah, that can always happen," Johnston said.
The two sides also remain at odds over the negotiating process itself.
Murray has refused to pay the funding agreement, which is what the UG charges a developer to pay for outside counsel to pay for the development agreement.
"You don't start by paying lawyers before you have an agreement in principle with the parties," Murray said.
Johnston says the nature of economic development negotiations is typically confidential.
"This is economic development negotiating, and that's usually confidential," Johnston said.
Murray is pushing for more transparency.
"We are pushing for the Unified Government to provide that transparency to the taxpayers about what's really going on here," Murray said. "It bothers me as a community member the amount of public processes that happen behind closed doors.”
Johnston summed up where things stand.
"Right now, two parties aren't at the same page," Johnston said. "We're far apart on many things.”
There is nothing concrete set, but Murray says he spoke with the head of the UG's economic development committee and is hopeful the project can go before the Economic Development and Finance Standing Committee on March 30.
"The commission's going to have to step in," Murray said.
Murray, who says he is running for U.S. Senate in part because of this experience, remains committed to the project.
"As a kid who's from here, I'm so excited to do it,” Murray said. “We just need to get over this hump with the UG. The east side of our town is begging for the same kind of love that the west side gets.”
He points to recent agreements like the proposed Chiefs stadium as proof of what he calls a “prioritization issue.”
"We are not giving up on this or walking away from this," Murray said.
For residents like Javins, who has lived in Wyandotte County for more than 40 years, the wait has gone on long enough.
"I've been looking for some kind of action for the longest time," Javins said. "I'd just like to see something take place.”
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
—
