This Florida City Just Bought A Former Kmart Site -- Now What Are Its Plans
The Kissimmee, FL Community Redevelopment Agency acquired the former Kmart to prevent another Big Box project and ensure it has a role in shaping the redevelopment
The former Kmart in Kissimmee, Florida was sold last week to an unlikely Buyer:
The City of Kissimmee.
Kissimmee’s Community Redevelopment Agency (CRA) closed on the ~$14 MM acquisition of the ~140,000 square foot property.
Once home to Kmart, today it is mostly vacant save for a short-term lease with Big Lot for a ~36,000 square foot store that may or may not survive that retailer's current bankruptcy.
The site's previous owner had once submitted plans to backfill the former Kmart with other Big Box users like Conn's and Planet Fitness.
But the City was not enthused with the plan to replace the Kmart with other Big Box uses — and Conn's (like Big Lots) later filed for bankruptcy.
Now that the Kissimmee CRA is the owner, it will be able to shape and direct the re-tenanting and redevelopment of the 22 acre site.
The City's current plan is to sell the site to a developer conditioned on a plan for a mixed-use project that incorporates entertainment, dining and perhaps indoor recreation uses.
The bigger hope of Kissimmee officials is that the redevelopment of the former Kmart site revitalizes the corridor and kickstarts other area redevelopment.
How often does a City or municipal authority acquire property for redevelopment?
It is actually quite common in Florida where there are more than 220 Community Redevelopment Agencies (CRAs) throughout the state.
CRAs are authorized by Florida Statutes and funded by incremental property tax revenue generated by the increase of property values within a CRA.
They are overseen by an agency board and are used as a tool to attract businesses, support affordable housing and enable properties to reach their highest and best use.
Other states also have similar agencies and authorities to promote redevelopment and adaptive reuse of obsolescent real estate.
For instance, the State of Georgia's Urban Redevelopment Act permits Georgia cities and counties to form Urban Redevelopment Agencies (URAs).
Georgia URAs have broad authority to issue revenue bonds that can be used to acquire properties that are blighted, dilapidated or underutilized and finance their redevelopment.
The City of Stonecrest, Georgia’s URA has purchased multiple properties including a former Sam’s Club, a vacant Sears and even the office building that housed its City Hall.
The Stonecrest URA plans to re-sell the properties for others to redevelop.
The Kissimmee CRA has not yet revealed details as to how it plans to solicit requests for proposals to redevelop the former Kmart site.
But the City almost certainly wants the property to be redeveloped— and returned to the property tax rolls — as soon as possible.
So developers with interest in the site may want to proactively get in touch with City officials and bring along a plan that meets its development criteria.