Kansas City Developer Seeks Incentives for Ambitious Mixed-Use Project
Kansas City is buzzing with excitement as Mac Properties gears up for its third attempt to secure tax incentives for a thrilling mixed-use development. This time, the Chicago-based developer is setting its sights on a hefty $101.5 million project located southwest of Main Street and Armour Boulevard. If everything goes according to plan, this venture could really shake things up in the local housing scene!
What’s on the Table?
The proposed development, known as the 1 W. Armour plan, aims to bring 300 apartments and 25,000 square feet of retail and restaurant space to the area. Two new midrise buildings would take the place of surface parking lots and small retail structures, alongside a renovated U.S. Bank branch from 1973, located conveniently next to an upcoming streetcar stop. Talk about prime real estate!
A Past of Challenges
Despite its potential, the project hasn’t had an easy ride. It won approval from the City Council back in January 2023 but seemed to hit a bit of a pause after that. This isn’t the first time Mac Properties has sought financial help for this development; their previous attempts for incentives fell short. This time, they are going through the city’s Planned Industrial Expansion Authority (PIEA) once again, with another public financing deal review scheduled for Thursday.
Supporting the Community or Just Business?
The project has become a bit of a Rorschach test for the community. Supporters, including Midtown advocates and urbanists, see it as a way to bring hundreds of new residents along the southern streetcar line and add much-needed housing options. However, critics, particularly from the group KC Tenants, have raised concerns. They argue that this project could leave behind those who really need affordable housing, citing that the apartments may not be accessible to low-income residents.
Financial Breakdown
With the reality of rising construction costs, Mac Properties has stressed the need for these incentives to make the development financially viable. Their latest bid includes a rather generous 95% property tax abatement for 15 years, along with a sales tax exemption on construction materials—valued at approximately $9.3 million. These incentives are intended to help offset “extraordinary” site preparation costs that come with sloping land and the requirement to modify the bank’s garage for parking.
A third-party financial analysis by SB Friedman Development Advisors has backed Mac’s claims for financial assistance, finding that while the project could potentially proceed with lesser incentives, it would still yield below benchmark returns. In other words, everyone’s trying to figure out the best way to make this work.
What Will Residents Pay?
The project will offer a mix of apartments: 126 studios averaging 450 square feet, 119 one-bedrooms coming in at around 730 square feet, and 55 two-bedrooms totaling approximately 1,100 square feet. Monthly rents are projected to be around $1,300 for studios, $1,800 for one-bedrooms, and $2,100 for two-bedrooms. This pricing is aimed at individuals earning between 79% and 99% of the area’s median family income. However, none of the apartments would have income restrictions, raising eyebrows among affordability advocates.
Moving Forward
Mac Properties has committed to contributing $100,000 into Kansas City’s Housing Trust Fund, given that they’re not including any affordable units in the project. They link their incentive application to various reports suggesting that Kansas City’s growing rental prices will continue to rise without the introduction of new housing supplies. In fact, Mac has already delivered over 1,600 new or renovated apartments in Midtown since 2007.
If all goes well and the necessary approvals are received, Mac Properties hopes to demolish existing structures by April 2026, kick-off construction by September, and aim for completion by March 2028. With such an anticipated timeline, residents and stakeholders alike are eager to see how this mixed-use project unfolds. It’s an exciting time for Kansas City, and fingers crossed that this development can meet the diverse needs of its residents!
