The Next American Dream : Kansas City : A Documentary Film

August 17, 2005 | Kansas City Star

Developers eye site east of city hall: Residences, offices, retail envisioned
By Kevin Collison

The next big downtown Kansas City redevelopment deal is brewing, an ambitious proposal called the East Village that would create a new neighborhood east of City Hall.

Backers envision the redevelopment proposal as a mixed-use area similar to Quality Hill. They have identified a 12-block area between Ilus W. Davis Park and Charlotte Street, from Eighth to 12th streets, for their endeavor. It would include up to 1,300 residences, 80,000 square feet of retail and a 175,000-square-foot office building.

No formal plans for the project have been filed with the city.

Although significant hurdles remain, including acquiring the land and obtaining needed tax incentives, an experienced development team has been assembled to pursue the venture: Sherman Associates, a respected Minneapolis firm, and local partners including Swope Community Builders and the Twelfth Street Heritage Development Corp.

A downtown company, J.E. Dunn Constructi! on, has been approached about anchoring the project with a new corporate headquarters on Locust Street across from the park. Dunn already has its offices on 10th Street between Holmes and Charlotte and owns about two blocks in the area designated for the East Village.

"We do have interest," said Terry Dunn, president and CEO of the company. "We do have a need, and we're growing quickly. We're interested in doing something for ourselves. I'm not prepared to commit us to one location."

City officials who have been briefed on the East Village proposal say it could do for downtown's east side what the entertainment district, H&R Block headquarters and Sprint Center projects are intended to accomplish for a dozen-block swath of the South Loop area.

"When you look at it, it would seem to me that would be the next redevelopment area," said City Manager Wayne Cauthen, noting nearby government and courthouse buildings surrounded by a parking lots. "The question is: What idea does J.E. Dunn have for its own headquarters? You definitely want to keep a player like that in the area."

The district being discussed includes some pillar properties to build around, including the Federal Aviation Administration building at Ninth and Locust, the restored Ozark National Life Building across Ninth from the FAA building, and J.E. Dunn's current offices.

Among the problem properties that developers and city officials would like to see removed are the Cherry Street Inn at Tenth and Cherry, a service station at Tenth and Locust, and the former MC Sporting Goods building and garage at 12th and Holmes.

"We want to make certain the whole area by the park - the gas station and all that kind of stuff - somehow goes away," Cauthen said.

"It can be something that really fits into a government area sector with some additional office buildings and some housing."

A little over two years ago, the East Loop was pushed by downtown civic leaders as a possible site for the new headquarters of the Federal Reserve Bank of Kansas City.

After the bank decided on a site at the south edge of Penn Valley Park, the development focus shifted to a more mixed-used approach.

In November 2003, the Planned Industrial Expansion Authority created the East Downtown Area PIEA with a general development concept calling for a Quality Hill-style neighborhood. The designation would provide Chapter 353 property tax abatements for a suitable project and authorize condemnation, if necessary, to assemble land.

The East Downtown district encompasses much of the area proposed for the East Village but does not include the blocks along Locust or the blocks between 11th and 12th. East Village proponents plan to go to the PIEA board soon to seek amendments to the plan and to ask for a request for proposals to be issued.

The area under consideration for East Village recently was identified as a high-priority redevelopment frontier by the updated Sasaki plan, a redevelopment roadm! ap of sorts commissioned by civic leaders that was released in June.

Kelvin Simmons, spokesman for Swope Community Enterprises, the umbrella organization that includes Swope Community Builders, said the time was ripe for redeveloping the East Loop.

"This is a signature piece in making sure we complete all sections of downtown-west, south, east and north-and not leave any segments out," said Simmons, a former city councilman and director of the Missouri Department of Economic Development. "We'd like to start digging as soon as possible, but that depends on the powers that be."

Don Rosemann, the project architect, said the East Village proposal had been discussed for some time.

The concept calls for housing in mostly four-story buildings, with perhaps a couple of slightly taller structures near the proposed office building. The office development would be six or seven stories tall.

"We want to try to create an environment that would be a live-work environment with a lot of pedestrian-friendly features," Rosemann said. "The buildings would have a lot of brick and stone."

About 70 percent of the housing units would be for-sale condominiums, and the remainder would be rental units, although that mix could change depending on demand.

The proposal also calls for 70 percent of the units to be priced at market rates, with the rest subsidized as affordable housing.

"We're trying to hit a market that's a bit different from what's being created downtown," Rosemann said.

The potential involvement of Sherman Associates is viewed as a coup. The firm and the other partners would be owners and developers in the project should it move forward.

Sherman has developed several urban housing developments in the Twin Cities, the latest being 350-units included in the renovation of a 1 million-square-foot former Sears building.

The firm has also done a 32-unit project in downtown Des Moines, Iowa, and was recently chosen for a $70 million renovation project in downtown St. Louis that calls for 175 condos and lofts in the historic Syndicate Trust Building.

"Sherman has more than 20 years of experience," Rosemann said. "They are truly committed to doing similar projects in the U.S."

Sherman officials declined to comment, referring inquiries to Rosemann.

One of the more interesting aspects of the East Village concept is the possibility that J.E. Dunn could serve as its corporate anchor. H&R Block is fulfilling a similar role in the South Loop redevelopment by building its new headquarters there.

Terry Dunn said his company was in serious need of space. It now owns about 80,000 square feet and has leased an additional 30,000 square feet. It expects it will require 120,000 to 150,000 square feet for its headquarters.

"We're intrigued with the redevelopment of this side of downtown," Dunn said. "That (East Village) site is one of several we're considering."

Rosemann said East Village proponents had received a similar response from Dunn.

"They're excited about what's proposed but keeping their options open," he said.

The developers say they would like to start construction on the East Village next spring if they can get the necessary approvals and acquire the necessary properties. The entire project would probably take about six years to complete.

One key challenge will be assembling the land. About 30 owners have been found for the various properties, Rosemann said, and no effort has been made yet to determine how many are willing to sell.

The PIEA designation does provide a powerful tool for land assembly - the threat of condemnation.

There is also an effort afoot by the Downtown Council to create a nonprofit development corporation to make it easier to acquire multiple properties for big projects.

Officials at the private organization of downtown property owners have said they would be willing to assist the East Village proposal if requested.