This story is part of an ongoing series, Powering Change: Panasonic and De Soto. If you'd like to share your excitement or concerns about the electric vehicle battery plant, you can do so here.
—
Thousands of acres are still undeveloped at the site where Panasonic is being built in De Soto, Kansas.
Astra Enterprise Park, formerly known as the Sunflower Army Ammunition Plant, is owned by Sunflower Redevelopment, LLC.
The real estate group bought the site from the Army in 2005. The vision for the site is a modern business park, including industrial uses, a utility-scaled solar facility and advanced manufacturing.
The 9,000-acre park remains the site of the Army's cleanup efforts to this day.
The land where the Panasonic EV battery factory sits was cleaned by special advance request so construction could start.
Sunflower Redevelopment wants to move forward with redevelopment but said a potential $25 million price tag on pesticide cleanup has been in the way.
A bill in the Kansas legislature, HB 2169, could circumvent that and speed up development plans that have taken two decades to start coming to fruition.
History of former Sunflower Army Ammunition Plant
A lot of history predates Panasonic.
When the site was the Sunflower Army Ammunition Plant, the facility was used to make explosives and rocket propellants during World War II.
The former facility used chemicals to produce the explosives, including nitric and sulfuric acids.
While the Army has made progress in remediation, or cleanup efforts of hazardous materials, their work will continue until 2028.
The Army announced in 2023 that all explosive material had been removed.
The sale between Sunflower Redevelopment, LLC and the Army is rare.
In fact, according to the ownership group, it was the first time any kind of military service facility and private party made a transaction before remediation.
Kansas lawmakers step in
House and Senate lawmakers passed HB 2169, which prevents a state agency from mandating cleanup orders for pesticides at the site, as long as the site is not being used for residential purposes.
KSHB 41's Alyssa Jackson reached out to 28 members of the House Committee on Commerce, Labor and Economic Development about their votes in support and opposition of the bill.
Some opponents weren't available, but others thought the bill needed more work.
"I find it important that this land is fully remediated from any contamination that could affect soil, groundwater, wildlife, and the surrounding communities and workers who will be impacted by construction on the area," said Kansas House Rep. Heather Meyer. "My biggest concern is that there very well may be additional contamination that is found during the construction process, and it’s important that it is cleaned up for the safety of the environment and those who live and work in the area."
Kansas State Rep. Rui Xu said he still has concerns about groundwater. However, he voted in support of the bill and introduced a successful amendment that made residential and nonresidential lines clear.
Xu said from what he's learned, pesticides historically haven't had much regulation in Kansas.
"There’s times I try to make bad bills better, and they don’t go on, and that’s a pretty easy no vote for me, but I feel comfortable that if it does ever become residential, it will be made safe," he said. "If it’s ever a daycare, it will be made safe, and they are currently deemed safe for industrial."
John Petersen, a partner with Sunflower Redevelopment, LLC, testified at the Kansas Capitol in support of the bill. He told KSHB 41 the pesticides wouldn't put workers or anyone on the site at risk.
He said their intentions have been clear since they became owners 20 years ago.
"We said day one when we were given the opportunity to do this, we're going to clean up and do this right and try to bring jobs and economic development," Petersen said.
The disagreements on pesticide cleanup, according to Petersen, have halted movement on redeveloping thousands of acres there beyond Panasonic.
"Pesticides the Army used up until 1985 ... to control termites, just like everyone's houses built before 1985 all throughout Johnson County and Kansas," Petersen said. "In fact, the same chemical."
The Kansas Department of Health and Environment (KDHE) declined to send KSHB 41 a comment on the bill. However, a representative of the agency testified in opposition at the Capitol.
The agency believes owners of the site should remove the pesticides because they claim there was an agreement.
However, KDHE also acknowledged pesticide removal is technically only required if the site is used for residential purposes.
"If this is going to be a nonresidential industrial property, the pesticides can remain. If it's gonna be turned into a residential area where we have homes, parks, schools, these present an unacceptable risk," Leo Henning, a KDHE representative, said during the bill testimony.
The Sunflower Redevelopment group said they've had remediation responsibilities, including the demolition of buildings on-site containing asbestos and lead-based paint.
They started cleaning up the pesticides but reminded KDHE they are not required to do so.
In testimony, KDHE referenced a $109 million settlement the ownership group received from the Army to clean up.
The agency also mentioned a $24 million insurance settlement the ownership group received as part of a claim about asbestos, lead-based paint and pesticides.
Petersen told KSHB 41 there is still a mortgage on the property, so some of the money is allocated toward that purpose.
The Sunflower ownership group said if they move forward with cleaning up the substance, it would cost around $25 million.
HB 2169, according to Petersen, takes away uncertainty while they're trying to negotiate deals with potential business partners.
"It's a practical solution," he said. "Sets it in law, no confusion or misinterpretations."
Rep. Xu does not think "one-off exemptions" like the bill should become normal in the legislature. However, this situation warrants it.
"We’re gonna need that area for economic development, and I mean with Panasonic bringing a lot of new investment, there will be a lot of new people moving around the area ... and so a lot of commercial development and industrial development will need to happen around Panasonic to service those people," the representative said.
While people wait for Panasonic to start production, HB 2169 could clear the way for another development right next door.
"I think you're gonna see ... wow," Petersen said. "A win-win for everybody."
HB 2169 waits for Gov. Laura Kelly's signature before it can become law.
The legislation requires a notice on the property deed so future buyers know they would be liable for remediation costs if the site's use is changed to residential.
Sunflower Redevelopment, LLC thinks it will take about 10 years for their projects to start and finish.
—
KSHB 41 reporter Alyssa Jackson covers portions of Johnson County, including Overland Park, Prairie Village and Leawood. Share your story idea with Alyssa.