6.25.2008
Press Conference - June 20, 2008
Aquarium added to Mission project’s features
By KEVIN COLLISON
The Kansas City Star

The developer of the proposed Mission Gateway project hopes to break ground in October on a $307 million mixed-use development anchored by a 1.5-million-gallon saltwater aquarium.
Tom Valenti of the Cameron Group of East Syracuse, N.Y., said that leasing interest “jumpstarted” after the project was approved for $63.2 million in STAR bond assistance earlier this month, but much work remains to fill the 416,000 square feet of retail space included in the plan.
“Deals are going to be very difficult and will take a little longer, but they’ll come,” Valenti cautioned at a press conference Friday attended by city, county and state officials at the Sylvester Powell Community Center in Mission.
If work begins in October, the development would be completed by spring 2010.
The Gateway project, first proposed in 2005, is a key element in a master plan for reinventing the Mission commercial district along Johnson Drive. The development is slated to occupy a 26.5-acre site at Shawnee Mission Parkway and Roe Avenue formerly occupied by the Mission Center mall, which was demolished two years ago.
Besides the retail component, the project includes 100,000 square feet of office space; 125 residential condominiums; a 150-room hotel, and a 2,200-space, four-level parking garage.
“This is a huge piece for Mission, a huge piece for northeast Johnson County and a huge piece for the region,” said Rob Johnson, president and CEO of the Northeast Johnson County Chamber of Commerce.
Valenti provided no specifics about tenants, other than to say the project hopes to attract a full-service Sheraton Hotel. The anchor of the project is a 1.5-million-to-2-million-gallon aquarium that would be operated by U.S. Aquarium Team. Four large retailers also are close to striking a deal to occupy space, he said.
Overall, the Gateway project has commitments for slightly more than 50 percent of the retail space in the project, including the aquarium and a movie dinner theater, Valenti said, adding he needs 60 percent leased before his private financing will be released. A consortium of banks led by HSBC Bank is interested in the project.
The public financing assistance includes the $63.2 million in STAR bond assistance; $24 million to $29 million in tax-increment financing from Mission; and $13 million from a special one-cent sales tax to be levied on goods and services at Gateway.
The development price tag includes $12.5 million spent on a system of concrete pipes to convey Rock Creek underneath the project.
No solid tenants have been identified for the office space so far, although Johnson County Community College, which had a 10,000-square-foot presence in the old mall, has been approached about coming to the new project.
The condominiums planned for the project would be in four five-story buildings with retail on the first floor.
Prices are expected to range from $250 to $300 per square foot, with the units ranging in size from 800 square feet to 2,200 square feet.
Kansas Secretary of Commerce David Kerr said the project was approved for STAR bond assistance because the state believes the aquarium will be a major tourist attraction. The incentive program diverts 100 percent of the new state and local sales taxes generated by the project to repay the $63.2 million bond issued to pay for eligible costs.
Kerr said those eligible costs include property acquisition, infrastructure and parking associated with the unique aspects of the project, such as the aquarium. The STAR bond cannot be used to assist the condo, office and retail portions of the project that would compete with similar developments elsewhere.
Erik Pedersen, president and CEO of U.S. Aquarium Team, made a slide presentation, using photos of a similar project operated by his company in Guam. The aquarium is expected to accommodate 10,000 to 15,000 fish from 250 to 300 different species.
It also will include a fine-dining restaurant, a food court and an event space that can accommodate up to 1,200 people.
The facility will include the equivalent of four full-time teachers and is expected to attract 84,000 students annually.
“We’ll be far and away the number one field trip destination in the region,” Pedersen said.
To reach Kevin Collison, call 816-234-4289 or send e-mail to kcollison@kcstar.com.