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August 18, 2005 | Kansas City Star

Another downtown project: Copaken firm eyes underused block near Sprint Center
By Kevin Collison

A largely neglected downtown block next to the planned Sprint Center is being eyed by Copaken White & Blitt for a potential $84 million office and retail project.

Jon Copaken, a co-director at the firm, said a preliminary plan had been submitted to the Kansas City Tax Increment Financing Commission for about two-thirds of Block 112, which lies between Grand Boulevard and McGee Street, from 12th to 13th streets.

The proposal calls for 270,000 square feet of office, 50,000 square feet of retail and a 1,300-space parking garage.

"We're setting ourselves up for the development of an important block downtown," Copaken said.

The block is substantially underused, with several vacant buildings, including a former haunted house. The site of the demolished Law Building, which is not part of the plan, is at the southeast corner of 12th and Grand.

City development officials have said the block is ripe for revitalization becaus! e of its proximity to the Power & Light District and the new arena, which are under development.

One well-known business that would be relocated should the development plan move forward is Lil' Jake's Eat It and Beat It, a popular 18-seat barbecue restaurant at 1227 Grand Blvd. Copaken said there had been discussions with Danny Edwards, the owner, to try to find a suitable new downtown location.

"I love going to Lil' Jake's as well," Copaken said. "He is an institution downtown, and we want to find a way to satisfy him."

Edwards could not be reached for comment.

Copaken cautioned that the development would not take place unless a major tenant was found. The downtown vacancy rate for Class A office space is 28.8 percent overall and 32.7 percent within the freeway loop, according to Carolyn Bagnall, a research analyst at Colliers Turley Martin Tucker.

Copaken White & Blitt developed two downtown office towers, Town Pavilion and 1201 Walnut, and Jon Copaken agreed that the focus should be on reducing the vacancy rate.

Still, he noted, not all potential tenants are interested in locating to an existing building.

"There are some users who just want their own identity," he said. "We don't want to exclude people."

One company that has expressed an interest in having its own corporate headquarters is Great Plains Energy Inc., the parent company Kansas City Power & Light. Great Plains, however, is already a tenant at 1201 Walnut.

Copaken said his firm had no specific tenant in mind for the project.

The plan could help end a standoff over acquiring a building at 1221 Grand that houses Gigi's Wigs and Beauty Supplies.

Copaken White & Blitt has already acquired several properties on Block 112 with the help of the TIF Commission in an agreement related to the South Loop redevelopment plan. The firm had owned properties needed for the nearby entertainment district and agreed to transfer them to the city in return for the properties on Block 112.

But an effort by the TIF Commission to obtain the Gigi's property through eminent domain failed last May. A judge rejected the condemnation action because no specific redevelopment project had been proposed for the property.

The Gigi's building is owned by Chung Hoe Ku and Myong Suk Ku. John Roe, the Kus' attorney, could not be reached for comment.

The Copaken White & Blitt redevelopment plan, which would come as an amendment to the 1200 Main/South Loop TIF District, may satisfy the objections raised by the judge in dismissing the earlier condemnation lawsuit.

As for the Law Building property, Jon Copaken said his firm had discussed working with its owner, Abbott Properties, but failed to reach an agreement. Matthew J. Abbott, the company owner, could not be reached for comment.

The application for TIF assistance is expected to be reviewed at the October meeting of the commission. Copaken said his firm would ask that the project be eligible for $23.5 million in TIF assistance.