Cordish Companies will Add Two Residential Developments to the Power & Light District

By Gabriel Circiog, Associate Editor

The developer of the Power & Light District, Baltimore-based Cordish Companies, is planning to add two residential projects to the mix, which will represent a $70 million investment, The Kansas City Star reports.

Located in the heart of downtown Kansas City, with more than a half million square feet of dining, shopping and entertainment venues, the Power & Light District could see the rise of the highest residential building ever built from ground up in downtown Kansas City.

The plan calls for the development of a 250-unit tower at the northwest corner of 13th and Walnut streets. The 23-story (approximately 230 feet) tower, designed by Humphreys & Partners Architects will offer direct access to the Jones—a rooftop swimming pool and club on the adjoining garage.

Redevelopment of the Midland office building, which has been empty for over 12 years, is also part of the plan. The Cordish project aims to renovate the 12-story tower, situated on the northeast corner of 13th street and Baltimore Avenue, into 68 apartments.

According to the original development agreement with the city, Cordish received a $6 million cash subsidy for the residential component of the project. Approximately $3 million of that sum has been spent to prepare the foundation for a high-rise at the site, but that project and a subsequent proposal for a 35-story hotel and condo development crumbled mainly due to the recession.

The new development agreement, if approved by the Kansas City Council, will include an $8 million cash subsidy and a 50 percent property tax break over 25 years. The $8 million subsidy will include the balance of $3 million from the original development agreement and the remainder will come from a $10 million bond issue approved by the city council last year to support more downtown residential development.

If the development agreement is approved by the Kansas City Council, the two projects will break ground in the first half of 2013. The renovated 68-unit Midland building is scheduled to be completed by the end of 2013, while the new 23-story One Power & Light Tower is planned to be finalized in 2015.

Rendering Courtesy of: www.humphreys.com

New Luxury Apartment Community Planned at New Longview; Independence Avenue CID Proposed

By Gabriel Circiog, Associate Editor

A new luxury apartment community, planned in west Lee’s Summit, has drawn opposition from local residents, Lee’s Summit Journal reports.

The $25 million project, called Hearthview at New Longview, calls for the construction of between 250 and 270 units on a vacant parcel southeast of Kessler Drive and Longview Road. According to Jim Thomas, a partner in Hearthview, the apartments aim to be “the highest-end apartments in eastern Jackson County.”

The residents opposing the plan claim the scope and location of the development contradict the original plan which was presented to them when they acquired their homes in New Longview and they are concerned about the impact it will have on property values and traffic.

However, New Longview developer David Gale said the luxury development will help attract more retail to the area. He also remarked that the proposed site of the project, just south of the current 207 apartment community, only deviates slightly from the New Longview master plan. The original plan called for additional units a few hundred feet to the east of the proposed site. Regarding the increased traffic concerns, he said the extra traffic generated by the complex is expected to go to the north. He also estimates it would be a small addition compared to the 8,000 students that come to Metropolitan Community College-Longview.

In other local news, the Northeast Kansas City Chamber of Commerce has proposed a community improvement district for the historic community, The Kansas City Business Journal reports. The proposed CID would encompass Independence Avenue in the northeast region of Kansas City and south of Missouri River.

The Independence Avenue CID petition requires the approval of over 50 percent of the district’s property owners and the Kansas City Council. If approved, the CID would assess $300 a year in property taxes for its creation and a one cent sales tax to continue its funding.

Photo Courtesy of: www.newlongview.com

Perceptive Software Inc. and FMH CoreSource Announce Plans to Relocate

By Gabriel Circiog, Associate Editor

Perceptive Software Inc., a Lexmark company, has announced plans to relocate from its headquarters at Shawnee Mission Parkway and Kansas Highway 7 to Lenexa City Center. The company, which indicated that it has outgrown its current location, submitted its proposal to Lenexa officials, The Kansas City Business Journal reports.

According to the documents submitted to the Lenexa Planning Commission, the company plans to build initially a 120,000-square-foot, four-story building and an equally sized building in a later second phase. The proposed buildings would be located south of 89th Street Parkway and west of Renner Boulevard.

Perceptive Software will be seeking tax increment financing for the project by amending the existing TIF plan. As per the city documents Perceptive would be reimbursed around $15 million for certain project costs via the TIF plan.

The Lenexa City Center is a project that was envisioned to include up to 1.9 million square feet of office, retail, hotel and residential space. The City of Lenexa passed a TIF plan for the project on 424 acres around 87th Street and Renner Boulevard, but the overall development has progressed slowly mainly due to the recession.

FMH CoreSource is another company that has announced plans to relocate its offices. FMH CoreSource, which specializes in personal employee benefits administration, plans to move to the Sprint Nextel Corp. campus. The company plans to relocate 182 employees in the fourth story of 6240 Sprint Parkway, where it would occupy 34,739 square feet. The move to Sprint Campus, which is scheduled to take place by the third quarter of this year, would allow the company to expand to 250 employees.

Photo Courtesy of: www.lenexacitycenter.com

New 363-Bed Dormitory Announced Near UMKC and Rockhurst; Glimcher Realty Trust Expands Portfolio in Leawood

By Gabriel Circiog, Associate Editor

The Diocese of Kansas City-St. Joseph plans to construct a 363-bed dormitory targeting the students of Rockhurst University and the University of Missouri-Kansas City, the Kansas City Star reports.

The former St. Francis Xavier School, on Troost Avenue, which has been empty since 2009, will be demolished to make way for the five-story dormitory. Located near 53rd Street, close to UMKC and just across the street from Rockhurst, the development is estimated to cost over $19 million.

The project will be developed by Domus Communities, a partnership between Austin, Texas-based Petrus Development and Kansas City-based Entertainment Properties Trust, for the non-profit organization created by the diocese, SFX Domus. A feasibility study released by Domus Communities specified that the dormitory will not be limited in serving just Catholic students at the two universities.

The residence hall is an independent project of the diocese; UMKC as well as Rockhurst specified they have no involvement.

Wisconsin-based Tri-North Builders, hired by Domus Communities, submitted preliminary drawings to the City Planning Department. According to these drawings, the plan calls for a 135,000-square-foot building featuring 116 apartments and 127 parking spaces.

Monthly rents, including utilities, will range from $651 for a four-bedroom to $1,203 for a one-bedroom.

A public hearing on the subject is scheduled for June 19 by the City Plan Commission.

In other local news, Glimcher Realty Trust announced the acquisition of the outdoor retail center One Nineteen. Located in Leawood, Kansas, the new addition to the portfolio is adjacent to the company’s Town Center Plaza and will add 165,000 square feet of leasable retail space to the combined property. The center was acquired for approximately $67.5 million and is currently 93 percent leased.

Missouri General Assembly Passes Land Bank Bill

By Gabriel Circiog, Associate Editor

The Greater Kansas City Local Initiatives Support Corp. announced the Missouri General Assembly passed the legislation which supports the establishment of a land bank in Kansas City.

Julie Porter, Greater Kansas City LISC Executive Director, said, “The passage of this important legislation is a victory for Kansas City residents as we all continue to seek solutions that reduce the number of vacant and abandoned properties in the urban core.”

Estimates indicate approximately 12,000 vacant and abandoned properties exist in the Kansas City metropolitan area. The new land bank will help manage, sell and transfer tax delinquent land in order to return the vacant, abandoned or foreclosed properties to productive reuse.

The Kansas City Business Journal reports the city will be able to nominate a board of commissioners to the land bank agency. The board will be authorized to borrow money, issue bonds to finance the purchase, and greenlight the demolition and sale of the vacant properties, but it will not hold power of eminent domain. The properties held by the agency will be exempt from state and local taxes.

The bill received sponsorship support from Rep. Noel Torpey (Republican – District 52) and Rep. Michael Brown (Democrat- District 50) in the House, and Sen. Victor Callahan (Democrat – District 11) in the Missouri Senate.

In other local news, The Kansas City Star reports Missouri highway officials held a ribbon-cutting ceremony for the first “diverging diamond” interchange in the Kansas City Area. The new $8.1 million interchange is based on a design pioneered in France and is expected to increase vehicle flow at the busy I-435 and Front Street intersection.

Illustration Courtesy of: www.modot.org

TIF Commission of Kansas City Favors Incentives for $142.5 M Towne Center Development

By Gabriel Circiog, Associate Editor

The Tax Increment Financing Commission of Kansas City has recommended the approval of incentives for the $142.5 million Towne Center development in Clay County, The Kansas City Business Journal reports. The project, led by Kansas City-based CBC Real Estate Group, calls for over 1 million square feet of retail space and 150,000 square feet of office space on 130 acres at the 480-acre site bordered by Shoal Creek Parkway, Missouri Highway 152 and Interstate 435.

Developers plan to carry out the construction in three phases and if everything goes according to plan the first phase, which calls for 100,000 square feet of retail space, could be underway this year. The second phase calls for 200,000 square feet of retail and the third for 750,000 square feet. The second is scheduled to begin in 2013 and the last phase within two years, according to KCCommunityNews.com.

According to TIF Commission documents $87.3 million of the project cost would be financed via equity and debt financing, Alterra Bank having provided a letter of interest for financing to CBC Real Estate Group. And $21.7 million of the cost would be financed through a bond issuance backed by a community improvement district while the remaining $33.5 million would be financed via bonds backed by TIF financing.

The economic benefits of the plan are estimated to bring $20.9 million to the Liberty Public School District, $83.1 million to Kansas City and $9.6 million to Clay County. At the moment, the property which would become Towne Center is valued at $192,480 and is generating around $18,000 a year in property taxes toward the school district.

The proposal will go before the Kansas City Council for final approval of TIF financing.

Logo Courtesy of: cbcrealestategroup.com

Aragon Holdings Acquires The Fairways at Lakewood

By Gabriel Circiog, Associate Editor

Beverly Hills, Calif.-based Aragon Holdings has made its twelfth acquisition in three years as the investment company confirmed the purchase of The Fairways at Lakewood. The 274-unit multifamily community, located in Lee’s Summit, was built in 2008 and is currently 94 percent occupied. The property is in close proximity to Interstate 470 and multiple employment centers, including three major healthcare facilities. The metropolitan area has seen a steady growth in the past 12 months, with over 14,000 new jobs added. The area is home to an array of companies three of which are Fortune 500: Sprint Nextel, YRC Worldwide Transportation and H&R Block.

The apartment complex features various amenities including a salt water infinity pool, a fitness center, a business center, a club house, a three-acre lake and parking for more than 500 vehicles.

The acquisition takes Aragon’s total portfolio to over 3,000 apartment units and the holdings represent an investment in excess of $200 million, including $50 million in equity. Aragon Multifamily Cash Flow Fund provided funding for the transaction.

Details of the transaction have not been released, but Larry Clark, President of Aragon Holdings, confirmed the real estate investment company is actively seeking to purchase other multifamily properties across the country in cities that have positive job and population growth. Lee’s Summit, only 16 miles from downtown Kansas City, is one of the area’s strongest submarkets in terms of population growth and household income. According to Clark, Lee’s Summit, the fourth largest city in the metro area, has seen a 33 percent increase in population over the past 10 years, while the average household income within three miles of the property is almost $92,000, approximately 16 percent higher than that of the metropolitan area.

Photo Courtesy of: www.aragonusa.com

Posty Cards Inc. Earns LEED Platinum Certification

By Gabriel Circiog, Associate Editor

A small Kansas City manufacturer, Posty Cards Inc., attained the highest level of sustainable certification on April 16 when it was awarded the U.S. Green Building Council’s LEED platinum certification.

Located at 1600 Olive St. in Kansas City’s urban core, Posty Cards’ facility underwent a $6.4 million renovation and expansion which saw the manufacturing plant grow from 22,000 to 45,000 square feet and nearly double its energy efficiency. Although the facility doubled its size, the energy use is projected to increase by only five percent as the carbon footprint per square foot was dramatically reduced.

The building’s sustainable features include a large solar photovalvic panel which generates more than 11 percent of the total power use, high-efficiency variable refrigerant volume HVAC, bio-retention and underground basins for managing storm water runoff.

Posty Cards took advantage of incentives and other forms of support including a solar rebate from Kansas City Power & Light. The Kansas City Star reports that Posty Cards obtained a 10-year local property tax abatement and $2 million from the federal New Market and Tax Credit program.

Lance Jessee, chairman of the company board, also thanked U.S. Bank and its community development corporation for their support in financing the project.

Posty Cards’ facility is just one of approximately seven manufacturing plants in the country to achieve LEED Platinum certification. The project design and construction team included McHenry Shaffer Mitchell Architects, PKMR Engineers (Mechanical, Electrical & Plumbing Design), KH Engineering (Structural Design), SK Design Group (Civil Design), Patti Banks Associates (Landscape Design) and Turner Special Projects (Construction Manager).

Photo Courtesy of: www.postycards.com

Kessinger/Hunter to Develop Largest Spec Building in Kansas City Area

By Gabriel Circiog, Associate Editor

Kessinger/Hunter & Company will develop a 821,256-square-foot warehouse in Olathe, Kan. The building, dubbed “Building B”, will be located in the l-35 Logistics Park at 155th and Old 56 Highway. Dan Jensen, principal of Kessinger/Hunter, said the multi-tenant distribution facility will be the largest building constructed on a speculative basis in the Kansas City area.

The new multi-tenant distribution facility will be one of three the company plans to build at the 200-acre park. The building will be LEED-certified, and features will include an ESFR sprinkler system, 270 trailer parking spots and 168 dock doors on a pass-through loading facility.

Chris Gutierrez, president of KC SmartPort, the authority on logistics and opportunities in the bi-state Kansas City region, welcomed the project and stated the new state-of-the-art facility will offer a “huge competitive advantage over other major logistics centers.”

Kansas City is served by five major railroads, making it the largest rail hub in the nation in terms of tonnage. It also has the most freeway-lane miles per capita out of all U.S. cities. Coupled with the fact that four interstates intersect in the Kansas City region, it is no surprise that the region has the lowest truckload shipment costs in the country.

Previously in 2008, Kessinger/Hunter built a 600,000-square-foot spec warehouse in the same area of Olathe. The facility is currently fully leased, with tenants including FedEx SmartPost and Bushnell.

Building B will be exclusively marketed by Kessinger/Hunter.

CBRE Group Inc. Announces Sale of Rosehill Pointe Apartments

By Gabriel Circiog, Associate Editor

CBRE Group Inc. has announced the sale of the 498-unit Rosehill Pointe Apartments in Lenexa. The garden-style community, located at 12701 W. 88th Circle, was built in 1985 and has benefited from over $1.4 million in capital repairs since 2007.

The property was acquired by Kansas City-based Maxus Realty Trust for $28.75 million or approximately $57,731 per unit. Located on 30.52 acres just off 87th Street, Rosehill Pointe Apartments has prime access to Lenexa’s primary commercial corridor.

The property was marketed by CBRE as a value-added opportunity and Chad Sneed, Maxus’ Director of Acquisition, said the company plans to spend over $1 million on unit and amenity upgrades within the first year.

Jeff Stingley of CBRE facilitated the sale of the asset on behalf of the owner, New York-based CLK Multi-Family and an affiliate of Houlihan Parnes Realtors, LLC according to metrowirekc.com.

In other news, Kansas City Business Journal reports 46 Summit Redevelopment Corp. plans to submit a proposal to the Kansas City Council to amend the Plaza Steppes Redevelopment Plan, allowing the construction of up to 246 market-rate apartment units.

The eight- or nine-story building would be built between 46th and 47th streets and Summit and Jefferson streets. At the moment that block includes a 17-story Sheraton hotel and the headquarters of Polsinelli Shughart PC. Original plans envisioned senior housing and assisted-living projects behind the two buildings.

The new project would replace the Colonial Courts apartments adjacent to Jefferson and 46th streets. The Plaza Steppes block has Chapter 353 designation, with 100 percent of property taxes abated for 10 years and 50 percent for the following five years.

Photo Credits: www.cbremarketplace.com

$414 Million Cerner Corp. Office Development Ready for Groundbreaking

By Gabriel Circiog, Associate Editor

After several months of site preparation, the new Cerner Corp. office development is ready for its groundbreaking, according to The Kansas City Star.

Located south of State Avenue, between Village West Parkway and Interstate 435, in western Wyandotte County, the 58-acre site will feature two nine-story office towers. Gould Evans came up with the exterior design which is based on a digitalized image of human DNA, reflecting the nature of the company’s global business. Founded in 1979, North Kansas-city based Cerner is one of the world’s top healthcare software developers.

The $414 million development was approved two years ago and according to an agreement between Cerner, the state of Kansas and the Unified Government of Wandotte County and Kansas City, Kan. the company has committed to creating at least 4,000 jobs by December 2016 with an average annual salary of $54,000. In case of non-compliance the company faces up to $30.4 million in penalties.

The first building is scheduled to be completed early next year, while the entire 660,000-square-foot office development project is expected to be finalized by mid-2015.

The deal has already led to the completion of the Livestrong Sporting Park, an 18,000-seat stadium built with the help of STAR bonds. A new amateur soccer complex in western Wyandotte County, as well as several other soccer fields in Kansas City, are expected to be built in the near future.

According to The Kansas City Business Journal the agreement landed the campus $147 million in Kansas sales tax revenue bonds and $85 million in state tax credits and cash incentives.

Illustration Courtesy of: www.matthew-pauly.com

Neptune Apartments Sold to Price Brothers

By Gabriel Circiog, Associate Editor

Highwoods Properties has sold Neptune Apartments to Overland Park developer Price Brothers for $11 million, The Kansas City Star reports. The Country Club Plaza has been at the center of public attention for some time, with the Neptune Apartments at the epicenter of an ensuing battle.

The North Carolina owner of the Plaza initially wanted to tear down Neptune Apartments in order to make way for a new eight-story office building, which was to serve as the new headquarters for the Polsinelli Shughart law firm. The plan was frowned upon by the local community, and soon a 9,000-member “Save the Plaza” movement was formed.

The group claimed the 1989 Plaza Urban Design and Development Plan protected Neptune and its residential zoning and height. In August, Polsinelli Shughart chose to step away from the conflict and picked the West Edge development as its new home. Highwoods Properties earlier this week announced it plans to dispose of “non-core” assets.

In a surprising turn of events, Highwoods has demanded the new owner to leave the apartment building unchanged, while Monte Wendler of Price Brothers has said the company plans to renovate and upgrade the apartments. In anticipation of the new project, Highwoods vacated the building a year ago, but the new owners plan to lease the units again by August.

Ed Fritsch, president and CEO of Highwoods, said in a press release that the company is “pleased to transfer ownership of this residential property to a firm that specializes in multifamily development and operations in the greater Kansas City area. Kansas City is an important market for our Company. Our 2.3 million square feet of office and retail properties are exclusively located in and around Country Club Plaza.”

Photo Courtesy of: www.pricebrotherskc.com

Roeland Park and Mission in Conflict Over Walmart Location

By Gabriel Circiog, Associate Editor

While the border war between Kansas and Missouri saw a breakthrough as the two joined forces to keep the Marine Data Center from relocating to New Orleans, the Kansas City Star now reports Roeland Park is accusing its neighbor Mission of poaching its biggest retailer, Walmart, in order to kick-start a long-delayed project.

The $200 million Gateway project, developed by Tom Valenti and his company, the Cameron Group of Syracuse, N.Y., has been re-designed and Mission officials have declared they’re pleased with the changes, which include a big Walmart.

Tom Valenti stated Wal-Mart Stores Inc., was “surprisingly cooperative” when it came to adapting the store’s design to integrate it into the project. Surprisingly, the store will have 125,000 square feet of retail space, for three stores, above it. Only a couple of other Walmart stores in the country have retailers above.

Construction work is expected to start this summer as long as the STAR bond application is renewed and Valenti leases at least one of the spaces above Walmart. In the first stage alongside the Walmart and second-floor retail segment, a garage, an aquarium and hotel are also planned. The work is scheduled to be completed by August 2014, although the Walmart is expected to open sooner.

The city of Roeland Park has submitted a formal challenge with state economic development officials claiming the STAR bond tax incentives are supposed to attract new businesses—not move existing ones. Mission officials, however, claim that Walmart has wanted to leave the location at 5150 Roe Blvd. in Roeland Park since 2004.

Illustration Credits: www.mission-ks.org

Kansas City Marriott Downtown Hotel Close to Completing $20 Million Renovation

By Gabriel Circiog, Associate Editor

Kansas City’s largest convention hotel is nearing completion of its $20 million multi-year makeover. The most prominent phase of the Kansas City Marriott Downtown hotel renovation project is currently under way and it aims to transform the hotel’s traditional lobby into Marriott’s new “Marriott International Great Room” concept.

The new lobby will feature free wireless Internet service, a coffee/cocktail bar which transitions from day to night while offering a diversified menu with dishes in intervals of five, 10, or 20 minutes to accommodate schedules.

The first two phases of the refurbishment project concentrated on improving the guest rooms, while the third phase improved the front drive and upgraded the fitness center and pool. The last stage of the project will target the restaurant, executive lounge and other public spaces.

Cynthia Savage, director of marketing, said the refurbishment project aims to improve the downtown Marriott hotel’s competitive position compared to convention hotels in other cities. The renovation plans to keep the hotel in tune with the $6 billion investment that has sparked Kansas City’s downtown renaissance. “The Sprint Center, Power & Light District Convention Center’s expanded ballroom and recently opened Kauffman Center for the Performing Arts have given our community something to sing about,” says Savage. “We are adding another verse that is resonating with travelers and meeting planners.”

Compared to other cities in the United States, Kansas City, in the past 10 years, has invested the most in revitalizing its downtown.

The new M.I. Great Room is designed as a plugged-in, multipurpose space with three distinct but interconnected zones. Rick Hughes, President & CEO, Kansas City Convention & Visitors Association says the new M.I. Great Room is an important function space, from a convention perspective.

Photo Courtesy of: www.marriott.com

Make it Right Foundation will Assist Conversion of Bancroft School Into Affordable Apartments

By Gabriel Circiog, Associate Editor

Make It Right Foundation, founded by Hollywood actor Brad Pitt, together with BNIM Architects from New Orleans, will help out in the renovation of the long-closed Bancroft School into affordable apartments and a community center, The Kansas City Star reports.

Plans call for the conversion of the 103-year-old brick school building into 29 affordable apartments. The redevelopment will feature a 6,250-square-foot community center on the main floor and an additional building with 21 apartments will also be built.

The $14 million project will be built to LEED Platinum environmental standards, becoming the first major project constructed in the Green Impact Zone, which was designed and financed with the aid of U.S. Rep. Emanuel Cleaver.

Make It Right Foundation partnered with several firms, including BNIM, in 2007 to create affordable housing designs that could be constructed in the Lower 9th Ward neighborhood of New Orleans, which was ravaged by Hurricane Katrina. The joint effort has resulted in approximately 150 new homes so far.

The Bancroft project is just the second project of the foundation outside New Orleans and the first renovation done by the team.

The two-story Bancroft school building, closed 12 years ago, is one of 38 closed buildings in the Kansas City School District; 26 were shut down just two years ago in a major downsizing.

The funding of the project will be ensured by state low-income housing tax credits, federal historic tax credits, state charitable contribution tax credits and a $2.3 million contribution from the Make It Right Foundation. The financing will be assisted by U.S. Bank Community Development Corp.

The site will house the office of the Manheim Neighborhood Association and will also offer space for outreach programs offered by Truman Medical Center. The historic auditorium will also be renovated and a 50-unit secure garage will be added to the mix. Rents are expected to range from $470 a month for one-bedroom apartments to $695 for a three-bedroom.

Photo Credits: www.makeitrightnola.org

Briarcliff City Apartments Sold to CH Realty V/Briarcliff LLC; Kansas and Missouri United to Keep Marine Data Center

By Gabriel Circiog, Associate Editor

Kansas City Life Insurance Company has announced the sale of its 50 percent interests in a joint venture entity, the Briarcliff City Apartments in Kansas City, Missouri. Located at 3880 N. Mulberry Drive, in the Briarcliff master planned community, just five minutes from downtown, the 263-unit multifamily development was a joint venture with Briarcliff Development Company and both parties sold their interests to CH Realty V/Briarcliff LLC.

Kansas City Life decided to invest in the joint venture to develop the class-A apartment community in December 2009 and the sale, which was completed on February 8, resulted in a pre-tax realized investment gain of around $9.1 million.

Briarcliff is a 600+ acre master planned community and besides luxury apartment units it also features class A office buildings, restaurant, retail and hotel services.

In other news Missouri and Kansas for the moment have put the border war on hold. Both governors and the congressional delegations in both states have shown their support to Mayor Sly James as he tries to stop New Orleans from poaching the Marine data center, The Kansas City Star reports.

The data center has been in Kansas City since 1967 and currently has 400 high-paying high-tech jobs in South Kansas City.

Located at the former IRS service center at 2306 East Bannister Road, the center offers an average salary of over $90,000 to the 400 federal contract workers, according to Site Director Floyd Means.

With 300 living in Missouri and 100 in Kansas, both sides of the border are eager to retain the high-skill workers.

Although New Orleans already has a large Marine reserve presence, Mayor Sly James hopes to tempt the Marines to snub the offer. A final decision is expected in the summer.

Photo Courtesy of: www.thebriarcliffapartments.com

Hollywood Casino Opens at Kansas Speedway

By Gabriel Circiog, Associate Editor

The green flag was waved at Kansas Speedway as the Hollywood Casino opened its doors. The new casino was developed and will be operated by Kansas Entertainment LLC, a 50/50 joint venture of Penn Hollywood Kansas Inc., a subsidiary of Penn National Gaming Inc. and Kansas Speedway Development Corporation.

The ribbon-cutting ceremony was officiated by Penn National Gaming Chairman and Chief Executive Officer, Peter M. Carlino, and International Speedway Corporation CEO, Lesa France Kennedy. Mayor/CEO of the Unified Government of Wyandotte County and Kansas City, Kan., Joe Reardon, a representative from Kansas Governor Sam Brownback’s office, NASCAR drivers Clint Bowyer and Kasey Kahne and other officials were also present.

As previously reported the $411 million project was developed by Turner Construction Company and apart from the estimated 1,700 construction jobs it has also created over 1,000 new full time casino jobs. Over 4 million guests are expected to visit the Hollywood Casino annually and the total annual estimated economic benefit of the casino stands at $220 million.

With 100,000 square feet of gaming, 2,000 slot machines, 52 live table games, various dining options including the 164-seat Marquee Cafe and 176-seat Turn Two Lounge, this could be just the beginning. The Kansas City Business Journal reports that the casino’s next phase could include a hotel and later phases could bring more gambling space, a convention center and even a retail district. The total value of the project could exceed $700 million.

The casino is located on Turn Two of the Kansas Speedway, adjacent to The Legends Outlets Kansas City at Village West.

Penn National Gaming owns, operates or has ownership interests in gaming and racing facilities. The company currently operates 26 facilities with over 1.2 million square feet of gaming floor space and is currently developing casinos in Toledo and Columbus, Ohio.

The Greater Kansas City Chamber of Commerce Presents First ‘Big 5′ Update

By Gabriel Circiog, Associate Editor

The Greater Kansas City Chamber of Commerce has released the first “Big 5” Update. As previously reported, the “Big 5” is a list of initiatives that will be the focus of the region in the coming years. Each initiative has “champions” attributed to them, who are responsible for bringing in other people to help devise and implement the tactical milestones necessary to achieve success. Let’s have a look at how things have progressed:

1. The World’s Symposium on Animal Health – Champion: Gary Forsee. September 2014 is the date chosen for the first global symposium on animal health. Animal Health Corridor-based companies have contributed with guidance and leading Kansas City area companies are being contacted for support.

2. The Urban Core Neighborhood Initiative – Co-Champions: Terry Dunn, president & CEO, JE Dunn. The steering committee has hired a project manager and, following extensive research and interaction with the local community, will announce in late February the first neighborhood to be revitalized. The report indicates the neighborhood will be ast of Troost Avenue.

3. The Making of America’s Most Entrepreneurial City – Champion: Peter deSilva, Chairman & CEO, UMB Bank. A project manager has been hired and, while the needs of local entrepreneurs are being identified, a partnership is being forged between UMKC’s Bloch School of Management and the Kauffman Foundation.

4. The KC Regional Translational Research Institute – Champion: Dr. Patrick James, Sr. Managing Partner, Quest Diagnostics; Chair, KC Area Life Sciences Institute. At the annual dinner on April 10 of the Kansas City Area Life Sciences Institute a leader in the field was booked to speak and a symposium on translational research has been planned for May.

5. The New UMKC Downtown Conservatory – Champion: Leo Morton, Chancellor, University of Missouri-Kansas City. The results of ongoing feasibility studies will be announced in the next several weeks. The studies will show cost estimates for the relocation as well as highlight potential downtown properties. The study will also show the impact of the move upon the UMKC’s Volker and Hospital Hill campuses.

Owner of the Historic Cosby Hotel Building Proposes Office/Retail Redevelopment Plan

By Gabriel Circiog, Associate Editor

The Cosby Hotel building has a chance to dodge the wrecking ball as Sunflower Development Group plans to present a redevelopment plan for the historic construction, The Kansas City Business Journal reports.

The 15,000-square-foot building was built in 1881 and was initially an office building for doctors before becoming a 60-room hotel early in the 20th century. In 1964 the upper floors were closed and in 1995 the hotel was completely empty. The empty building was put on the city’s “dangerous buildings” list and demolition seemed imminent. In the summer of 2011, Sunflower bought the property from owner Rick Powell and now Jason Swords, managing member of the group, plans to present the redevelopment plan for the property before the Land Clearance for Redevelopment Authority.

The proposed $2.88 million redevelopment would include state and federal historic tax credits in the amount of $493,025 and $335,498 respectively, along with $150,000 in developer equity and a $1.9 million loan. The cleanup costs are estimated at $130,000.

Letters of intent to lease office and retail space on the ground floor have already been received according to Swords.

In other news, The Kansas City Star reports American Performance Technologies is planning a $26 million expansion of its motor scooters manufacturing facility. The company, founded only two years ago, has been leasing space in a former Montgomery Ward building at the old Bannister Mall site. The firm currently has 32 employees but the expansion would mean the addition of another 250 people in the next few years.

American Performance Technologies will receive $4.1 million in incentives from the state of Missouri and incentives from the federal New Market Tax Credit program for the expansion.

Photo Courtesy of sunflowerkc.com

DST Plans to Redevelop the Lyric Theatre into a Federal Training Facility

By Gabriel Circiog, Associate Editor

The Lyric Theatre could be redeveloped into a federal training facility after the Kansas City Council passed a request for $27 million tax increment financing. However, the Kansas Business Journal reports that the Federal Aviation Administration has not yet decided where to move its Center for Management and Executive Leadership, currently located in Palm Coast, Fla. The Federal Aviation Administration is also looking into six other cities which are hoping to land the project that would create an estimated 100 jobs.

The Lyric Theatre was bought in 2007 for $2.2 million from the Lyric Opera of Kansas City by DST Realty Inc., a division of Kansas City-based DST Systems Inc. The fate of the building was sealed when the new 285,000-square-foot Kauffman Center for the Performing Arts became the prime venue in town.

DST is hoping to capitalize on the opportunity as the project could also generate financial benefits for another property the company partially owns: the Marriott Hotel. Located in downtown Kansas City, at 200 West 12th Street, the 22-story hotel is near the project site and could benefit from the hundreds of travelling FAA officials who would visit the facility.

Kansas City is competing with Los Angeles, Denver, Cleveland, Orlando, Atlanta and Milwaukee for the facility.

DST Realty, through an affiliate, is also currently developing a 1.1 million-square-foot facility for the Internal Revenue Service in downtown Kansas City. The project will revitalize the old Main Post Office on Pershing Road and the Railway Express Building at Union Station.