The number one question anyone with a connection to Mission is sure to get is, “What’s going on with the Mission Gateway property?”

Where do things stand currently?

• Unfortunately, since July 2023, there hasn’t been much to report after the Developer defaulted on their property taxes and the City terminated the development agreement.
• The Gateway site is, and has always been privately owned. Aryeh Realty, LLC (“Developer”), took ownership from Gateway Developer, LLC in 2016. The City of Mission has never had an ownership interest in the site.
• The site is now tied up in litigation with the Developer’s lender, Metropolitan Commercial Bank.
• In addition to the bank’s foreclosure action, there are also contractors and mechanics liens in dispute with respect to the property
  The City of Mission is not a party to any of these legal actions and continues to wait for a decision from the court.

What is the City doing right now?
As we await progress in the Johnson County District Courts, the City’s efforts have been focused on consistently issuing code enforcement notices and abating issues when we can. Any costs for abatement are billed to the property owner and will be certified to a future tax bill if not paid.

Some of the more frequently asked questions and answers surrounding the project are included below. If you have a question which has not been answered, please feel free to email City Administrator Laura Smith at lsmith@missionks.org.

FAQs

Q: Why doesn’t the City just take over the property and turn it into a park or something else?

A: The only way the City could gain control of the property would be by purchasing it from the Developer as part of a standard real estate transaction or by using eminent domain to acquire the site for a public purpose, i.e., a park. In the eminent domain process, a property is appraised, and the City has to pay the appraised value determined through that process, which would likely be in the tens of millions of dollars, far exceeding our annual operating budget and endangering our stable fiscal situation. The City cannot “take” the property for free. Nor can the City acquire the property through eminent domain and then sell or use the property for a non-public activity.

Q: Why is nothing happening on the site?

A: In April 2023, the City learned that Metropolitan Commercial Bank filed an action to foreclose its mortgage on the Mission Gateway property. The City is not a party to this litigation. In May 2023, Aryeh Realty, LLC failed to make a tax payment, and the delinquent taxes created an event of default under the project’s redevelopment agreement. The City sent a notice of default, and when the taxes were not paid within the 60-day cure period, the redevelopment agreement was terminated. Termination of this agreement eliminated all previously approved incentives. No incentives were ever distributed since project milestones were never met.

Q: How long will it take for the foreclosure action to be resolved?

A: There is no way to determine how long it will take for the foreclosure action to ultimately be resolved. The current case has been active since April 2023 and could easily continue for quite some time.

Q: The property is such an eyesore, why isn’t the City doing anything to clean it up?

A: The City does regularly monitor the condition of the site and has issued notices of code enforcement violations just like we do for other properties in the City. If the violations are not addressed, we will abate where it makes sense from both a safety and a cost perspective. Any costs incurred are billed to the property owner, and if not paid are certified on a future tax bill as a special assessment. The City will continue to explore more aggressive ways to address the site condition, but we want to be careful not to spend hundreds of thousands of tax-payer dollars – which could take years to be repaid – to make the site more presentable.

Q: How much money has the Developer received from the City over the years?

A: $0. The City approved several redevelopment agreements that authorized various public incentives, because the project was never completed, NONE of those dollars have ever been paid to the Developer. In fact, the Developer is obligated to pay Mission a $12 million special assessment for stormwater improvements (see below).

Q: Are the taxes current on the property?

A: Yes, as of September 2024 the taxes and special assessment have been paid.

Q: How much of the $12 million special assessment for stormwater improvements has the Developer repaid to date?

A: Currently, the Developer has paid approximately $5.4 million of the $12 million stormwater special assessment. The annual payment is included on the tax bill each year and is due and payable in two installments, just like your residential property tax bill. The property is current on payment of the special assessment.