DALLAS — The Unified Government of Wyandotte County and Kansas City will use up to $225 million in state-approved sales tax revenue bonds to finance half of a proposed $412 million water park-resort in western Kansas City, Kan.
The STAR bonds will be supported by the state sales tax collected at the 300-acre facility to be built and operated by Schlitterbahn Waterworks of New Braunfels, Tex. Design work is expected to begin next year, with the resort scheduled to open in 2009.
Schlitterbahn — German for “slippery road” — currently operates water parks in Texas at New Braunfels and South Padre Island, and will soon open a park facility on Galveston Island. However, county administrator Dennis Hays said the Kansas City park, which will be known as Schlitterbahn Vacation Village, would be unique.
“We’re not aware of anything like this in the region,” Hays said. “This is not just your traditional water park. This will include a vacation resort that is open 365 days a year, and a river walk district similar to San Antonio’s but in a year-around, climate-controlled facility.
“We believe that the Schlitterbahn Vacation Village project will take us to that next level as a destination for both entertainment and retailing and ensure our long-term future in that marketplace.”
Hays said Schlitterbahn has agreed to purchase all the county’s STAR bonds for the park in a negotiated deal when the facility is completed in 2009. The county can issue bond equivalent to up to half the cost of the project, or $206 million, with the additional authorization available if projected costs increase during the period, Hays said.“They [Schlitterbahn] have agreed to pay the entire construction costs for the project up front, and then purchase the STAR bonds as an additional revenue source to pay off some of the construction,” he said.
STAR bond proceeds cannot be used to construct buildings or purchase equipment for the park, but the proceeds can pay for infrastructure and a portion of the nearly $60 million river walk, Hays said, because it will be a public place open to everyone, not just park attendees. Schlitterbahn would also be eligible to use STAR bond proceeds for land it intends to acquire from the Unified Government.
When it is completed in 2009, the development is projected to create more than 3,000 jobs, generate more than $3 million in annual property taxes, and draw 3.3 million visitors a year. Gross annual sales are estimated at more than $200 million.
The project includes a partially covered river walk with shops and restaurants along a 4,000-foot channel, 400,000 square feet of retail, a marine park with live salt-water animals and activities, and 300 units of lodging, including a hotel and tree house lodgings.
The water park will feature water slides, a wave pool, and a network of artificial rivers that transport guests from one ride to the next.
The water park itself will be exposed to the elements, making it unusable during the winter, but much of the facility will be enclosed, Hays said.
“This park extends the traditional Schlitterbahn season through the use of their patented technology for enclosing large water facilities,” he said. “This is a destination that folks will be wanting to come to throughout the year.”
Hays said Schlitterbahn opted for the new park in Kansas City over a proposal in Orlando.
“They told us there were more people living within an eight-hour drive of this park than Orlando had within the same distance,” he said.
The Schlitterbahn park is the third project in the county to use STAR bond proceeds, Hays said, along with the nearby Village West retail project and Kansas Speedway racetrack.
“We’ve been very successful with our STAR bond projects,” he said. “They have changed the face of our community.
“When we began this effort 10 years ago, all our economic indicators — population, assessed value, new housing starts — were down,” Hays said. “Now, they’ve turned 180 degrees.
“We’re really pleased.”
Kansas Commerce Secretary Howard Fricke ruled last week that the project met requirements for financing with STAR bonds. In a letter to Unified Government Mayor Joe Reardon, Fricke said he had determined that the project would be a major entertainment and tourism development, making it eligible for the bonds.
