Council greenlights Kingman Crossing development agreement
Kingman could be more attractive to health care and business professionals with the addition of new retail development
KINGMAN – After more than a year of discussions, and numerous City Council meetings and executive sessions, the development agreement with Kingman Regional Medical Center and its partners for the Kingman Crossing traffic interchange was unanimously approved Tuesday.
The agreement was approved between the City of Kingman and KX Ventures, LLC. KX Ventures is a limited liability corporation KRMC developed with the developer for the project, The Ault Companies. The City will also see a $3 million contribution for the construction of Kingman Crossing Boulevard from the interchange to Southern Avenue.
KRMC CEO Brian Turney said the last estimate for the construction cost of the interchange itself was around $20 million. Combined with the cost for Kingman Crossing Boulevard, that’s around $23 million.
The approximately $23 million construction cost for the Kingman Crossing interchange and arterial road will be “fronted” by the hospital and its partners, explained City Attorney Carl Cooper.
“The idea with the agreement is that KRMC and their partners will basically front the cost of the development of the infrastructure, and those costs will be reimbursed with the TPT revenues generated at that project site, up to one half of those TPT revenues,” Cooper said.
That reimbursement period will last for up to 25 years or until KX Ventures makes back its investment. TPT, or sales tax, revenues will be split 50-50. Cooper said the hope is that the hospital’s investment can be returned much sooner than 25 years with the success of the interchange and subsequent retail development.
Councilman Ken Watkins asked staff for more detail on what would happen if an existing Kingman business relocated to the area of the interchange. Cooper, the city attorney, explained that a business currently in Kingman that relocates to the area would not participate in the revenue sharing.
“We’re sharing revenue that we don’t have,” he continued. “This is going to be brand new revenue, it’s not that the City’s out money, the City’s gaining money on this issue. And that’s the benefit to this.”
Cooper said the agreement is a win for all involved.
“Ultimately we think this is a win-win situation for everybody involved,” Cooper said. “For the citizens, for KRMC and their partners, and the city as a whole. We think it really opens up a lot of prospects for the City’s future.”
Turney agreed, saying that KRMC’s future is tied to that of the City of Kingman. The City being successful helps the hospital, while the hospital’s success helps the City. Along with the interchange will come development that could include retail businesses, a theater and a grocery store, to name a few examples, according to an independent third-party review of the agreement by Applied Economics.
Those additions to Kingman could help the hospital recruit health care professionals, Turney said. Health care professionals look at retail opportunities and quality of life when considering where to locate, and retail development will help pad the City’s resume.
Vice Mayor Travis Lingenfelter expanded on that point, and even expanded on it.
“I think that this agreement is going to help not only attract and retain health care professionals as far as new entertainment, new restaurants, new retail, but it’s also going to help to attract and retain professors at our Mohave Community College campus here, and also middle and upper management at our industrial park,” the vice mayor said.
Under the agreement, the project will need to be completed by January 2024. The interchange will be located to the east of the Interstate 40 interchange at Andy Devine Avenue, in the vicinity of KRMC’s Hualapai Mountain Campus.
“Untimely we’re just trying to make the community better and hopefully provide some supplemental income to us,” Turney said.