Northland Site Development Discussion

The City of Osawatomie and Alcove Development are in the very early stages of evaluating a potential development opportunity on approximately 116 acres in the Northland area. 

This is not a finalized project. No land has been sold, no construction has been approved, and no final development agreement has been executed. 

The City has entered into a predevelopment agreement with Alcove Development to explore the feasibility of a potential data center campus. This agreement allows the developer a no cost, six (6) month due diligence period to conduct studies, review infrastructure capacity, evaluate environmental requirements, and determine whether the property can support the project. It also allows the city to evaluate whether this development makes sense for the community. 

This is an evaluation phase, not an approval. 

Why This Site Matters 

The 116-acre Northland property is a municipally owned site with existing utility access and is designated for economic development. As one of the few parcels of this scale available in the community, how it is developed will meaningfully affect Osawatomie’s tax base, infrastructure investments, and long-term financial outlook. 

Many residents have expressed interest in property tax relief. Osawatomie’s total assessed property value is approximately $42 million, and 80% of this valuation comes from residential properties. A 20 percent mill levy reduction, while maintaining existing service levels, would require roughly $10 million in new assessed value. Because commercial property is assessed at 25 percent of appraised value, that equates to approximately $40 million or more in new commercial development value. 

That is the scale required to significantly move the needle and provide meaningful, sustainable property tax relief. 

A Long History of Planning and Evaluation 

The Northland site did not emerge as a development opportunity overnight. Work related to this property dates back more than 25 years. In 1998, electric utility rights were transferred to the City. By the mid-2000s, the City began formal consultations with the Kansas Department of Commerce, the Kansas City Area Development Council, and regional engineering firms to evaluate long-term development potential. 

Over the years, the City has: 

• Updated economic development policies 
• Completed infrastructure cost projections and conceptual layouts 
• Conducted environmental reviews, including multiple KDHE Brownfields Phase I assessments (with one Phase II) 
• Extended sewer infrastructure and evaluated water service expansion 
• Completed electrical capacity studies 
• Updated zoning 
• Conducted soil borings and property surveys 
• Installed signage and promotional materials 
• Secured Qualified Opportunity Zone designation 
• Pursued grant funding, including the recent BASE grant 
• Completed the Northland interceptor sewer project 
• Extended electrical service to the area 
• Extended water service to the area 

The site has also been shown to numerous prospective users over the years through coordinated efforts with regional development partners. 

The City has consistently marketed and evaluated this site for economic use for nearly two decades. From 2007 through 2025, the City actively pursued nearly 100 potential development leads for the Northland property. Many of those advanced to site visits or second-round discussions. None ultimately resulted in construction. 

What Is Being Explored? 

The potential project under review includes: 

• 600,000 square feet of development 
• Estimated $900 million to $1.1 billion total investment 
• 60–90 permanent full-time jobs 
• 250–350 construction jobs 
• Up to 1 million gallons per day of water capacity 
• 50–150 megawatts of electric demand 
• A proposed 50% property tax abatement for 10 years 
• Annual reserve payments during the option period 

Again, these are preliminary figures. They are not final approvals. 

If the developer decides to move forward, the project would be subject to multiple layers of review, including: 

• Site planning and zoning compliance 
• Environmental permitting 
• Utility capacity analysis 
• Water and wastewater review 
• Electrical infrastructure coordination 
• Noise mitigation standards 
• Building permits and code compliance 
• Public hearings and formal Council approvals 

Each step includes additional questions, safeguards, and regulatory requirements. 

Why Not Manufacturing? 

The City also evaluated how other types of industries could compare on this site. Different industries bring different tradeoffs. For example: 

• Animal processing typically creates more jobs but also higher water use, stronger wastewater loads, and heavier truck traffic. 
• Metals manufacturing can involve higher energy use and air permitting requirements. 
• Medical or electronics manufacturing generally has a cleaner environmental profile but typically produces moderate tax impact compared to high-capital projects. 

No option is impact-free. Each involves tradeoffs between job count, tax base growth, infrastructure demand, and environmental considerations. Currently, there is not any other industry reviewing the site.  

Environmental and Utility Considerations 

Residents have asked about water, noise, air emissions, and electric demand. 

The City is currently constructing a 3 million gallon per day water plant, with expansion capacity to 4.5 million gallons per day. Current average usage is approximately 750,000 gallons per day. Any allocation of additional capacity would require detailed analysis and long-term protections for residential supply. 

Backup generators at data centers are not designed for continuous daily operation, and any project would be subject to state and federal environmental permitting. 

If infrastructure upgrades are required, those costs and responsibilities would be negotiated and reviewed before any final approval. 

No project proceeds without regulatory compliance. 

Where Things Stand 

This process is at the beginning. The purpose of the predevelopment agreement is to answer questions, not to avoid them. 

If the project does not meet Osawatomie’s standards for financial sustainability, environmental responsibility, and infrastructure protection, it will not proceed. 

The Core Question 

This discussion is not about liking or disliking a particular industry. It is about how to use one of the most significant economic assets the City controls.  Every development option comes with tradeoffs.  There is no impact-free path. City leadership’s responsibility is to evaluate long-term stability, not short-term reactions. More conversations will occur. More questions will be answered.  More analysis will be completed. 

This is the start of a process, not the end. Residents are encouraged to stay engaged as the evaluation continues.