KSU Foundation has secured funding for Phase II of the K-State Office Park
The Kansas State University Foundation has successfully secured funding derived from New Markets Tax Credits and an economic development agreement with the City of Manhattan for Phase II of the K-State Office Park.
This phase of the office park expansion will cost $15.8 million and will add 59,000 square feet of partner-tenant space, doubling the existing development. Phase II will accommodate more than 30 flexible incubator spaces for companies and partners on Kansas State University's Manhattan campus and create a home for up to 250 jobs when fully leased. Tenants are required to have an affiliation with the university that supports its mission.
Phase II comprises the second of four buildings planned for the K-State Office Park. With the eventual completion of the fourth phase, the office park will total 240,000 square feet and 1,000 new jobs as part of the combined 56-acre world-class ecosystem of innovative research and academic growth adjacent to K-State in the Office and Research Parks.
Central Bank of Kansas City provided $10 million and National Community Investment Fund provided $5 million in tax credits to the project. Intrust Bank is the lead bank for the lending component, partnering with Central Bank of Kansas City and the National Community Investment Fund on the financing package. U.S. Bancorp Community Development Corp., a subsidiary of U.S. Bank, capitalized the New Markets Tax Credits allocations.
In addition, the Manhattan City Commission has committed to the research and academic ecosystem by approving $800,000 in economic development loans and incentives toward the project.
The construction team consisting of McCownGordon Construction, general contractor; Hoefer Wysocki, architect; and Eskie & Associates, owners' representative, has mobilized on the site and started work. The project is on schedule for tenant occupancy on Aug. 1, 2018.
"We are thankful for the bold vision of our board of directors, President Myers and our funding and construction partners to advance the research and academic presence of K-State," said Greg Lohrentz, KSU Foundation senior vice president of operations and finance. "We are confident in the total economic development impact of $93 million in economic benefit over the next 20 years to the region."
Philanthropic contributions to Kansas State University are coordinated by the KSU Foundation. The foundation is leading Innovation and Inspiration: The Campaign for Kansas State University to raise $1.4 billion for student success, faculty development, facility enhancement and programmatic success.