A Tuesday Kingman City council vote approved a development agreement with Kingman Regional Medical Center (KRMC) with a goal of constructing another Interstate 40 interchange and securing new retail enterprise and other commerce. Approval of the Kingman Crossing agreement comes after more than 15 months of back and forth among various attorneys.
“It’s a pretty significant document that outlines this project that we think will be the start of some economic development and growth out on the east bench,” said city attorney Carl Cooper. “We think this is a win-win situation for everybody involved; for the citizens, for KRMC and their partners and for the city as a whole.”
Cooper said the hospital and its partners will provide revenue upfront to develop the interchange and connector road infrastructure about 1.5 miles east of the I-40 interchange at Andy Devine Avenue. Half of the sales tax generated by new business locating in that area would be used to reimburse the hospital for up to 25 years or until it’s incurred debt is paid off.
“It’s not that the city is out any money,” Cooper said. “The city’s going to be gaining money on this issue, and that’s the benefit.”
KRMC CEO Brian Turney said approval of the agreement allows its developer partner, Ron Ault to begin working to secure retail and other enterprises that will locate on the 150 acres the hospital owns north of the freeway, in the vicinity of its Hualapai Mountain Campus.
“Part of this is going to be funded and leveraged through loans. Those loans aren’t going to get approved by banks or other financing institutions unless there’s some agreements in place,” Turney said. “From what he (Ault) has shared with us, is that he’s got to get one or two big box stores lined up and that will be enough for the people that provide the capital to bless it and let us move forward.”
Turney said the last estimate projected a $21-million expenditure for the interchange alone, and up to $6-million more for connector roads and other infrastructure development. He said construction won’t likely begin for at least a year and that it will take 18-24 months to finish.
Turney noted that project completion is required by January, 2024 under the council-approved agreement.
Turney said the hospital is motivated by interest in developing a new long term revenue stream and improving quality of life in the greater Kingman community.
“We feel our future is tied to the future of the city. If the city is more vibrant and growing, you’re going to be able to attract more people. Certainly professionals take a look at the city before they relocate,” Turney said. “Probably the biggest challenge we have is when we’re recruiting physicians and other medical professionals is the community itself. They like the weather and those type of things but they are looking for some amenities in life. When we’ve lost physicians who’ve come it’s typically because the spouse has been unhappy with the city and doesn’t feel like there’s enough opportunity.”
