Urban Renewal gains momentum in Kansas City thanks to LCRA Incentives

In News, Redevelopment, Urban Renewal by EDCKC Staff

Many of Kansas City’s historical landmarks and signature neighborhoods have been lost over the years to disuse and disrepair but Land Clearance for Redevelopment Authority (LCRA) initiatives have been helping to reclaim embattled neighborhoods by encouraging investment and removing blighted conditions. In Urban Renewal areas all over the city, the LCRA has been offering developers advantages like 100% real property tax abatement for up to 10 years, bond financing, and the power of eminent domain to help encourage new development. It appears the initiatives are making a difference because Kansas City has seen a variety of urban renewal victories in just the past year.

Here are a few projects that stand out:

The Commerce Tower at 911 Main Street is being rehabilitated as part of a $61 Million project to create a “vertical village” featuring retail and office uses on the lower floors, market-rate apartments in the middle floors, and offices on the upper floors.  The Commerce Tower is located within the existing Central Business District Urban Renewal Area.  The LCRA approved 10 years of property tax abatement to assist this project.

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Lotus Hospitality, LLC is currently rehabilitating the historic Gumbel Building at 801 Walnut Street into a 69-room Hampton Inn hotel.  This $6.9 Million project was assisted through the LCRA’s approval of 10 years of property tax abatement.

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The $12 Million historic rehabilitation of the Interstate Building at E. 13th & Locust Street into a 76-room Holiday Inn Express has also been approved for 10 years of property tax abatement by the LCRA.

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The existing surface parking lot at 1914 Main Street will be transformed into an $8 Million five-story multifamily project with a small commercial space and off-street parking on the ground floor and 44 market-rate apartments on the upper four floors.  The LCRA assisted the developer, Crossroads Urban Apartments, LLC, by creating a “footprint” (single project) Urban Renewal Area and approving 10 years of property tax abatement.

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The existing vacant three-story commercial building at 1915 Main Street and its adjacent off-street parking will be rehabilitated for continued retail and office use as part of a $2 Million project by FOK, LLC.  The LCRA assisted the developer by creating another “footprint” Urban Renewal Area and approving 10 years of property tax abatement.

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The Developer of the St. Michael’s Veterans Center, Inc. at Chelsea Drive and Leeds Trafficway is redeveloping the site into a campus like setting that will include affordable housing for homeless veterans, supportive services and a garden to honor those who have served in the armed forces.  Phase I includes 58 units of housing which was completed in June 2014. Total investment for Phase I is $11.18 Million. Phase II will include an additional 59 units of housing and approximately 7,500 square feet of supportive services.  It is anticipated Phase II construction will begin in Spring 2015.  Upon completion, the total redevelopment project costs are estimated to be $35-$40 million and will provide for a total of 180 units of affordable housing and supportive services. Phase I of this project was granted 100% tax abatement for 10 years by the LCRA.

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Built in 1926, the former Seven Oaks Elementary School at 37th Street and Jackson Avenue was rehabilitated by Seven Oaks Estates, LP into 44 units of one and two bedroom affordable housing units for seniors.  Total redevelopment project costs were $9.91 million and the project was completed in May 2014. This project was granted 100% tax abatement for 10 years by the LCRA.

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The Land Clearance for Redevelopment Authority (LCRA) currently has an inventory of vacant parcels in Kansas City, Missouri, which are available for purchase at attractive prices. Interested buyers must submit an offer price accompanied by a plan for the re-use/redevelopment of the site, which must be completed within 3-5 years of purchase (some parcels may not be suitable for redevelopment). Since all parcels are within urban renewal areas, redevelopment projects on the sites may be eligible for tax abatement.

Where can I get a copy of an Urban Renewal Plan?

Copies of urban renewal plans may be obtained at the offices of the Land Clearance for Redevelopment Authority at 1100 Walnut Street, Suite 1700, Kansas City, Missouri 64106, for a fee. Click here to view the Urban Renewal Areas Map