Kansas City Eyes New Development in the Power & Light District
In a move that could reshape the landscape of Kansas City’s bustling Power & Light District, the Cordish Companies are pushing for part of the area to be reclassified as an “undeveloped industrial area.” This change would allow them to tap into valuable tax incentives for their ambitious $156 million project: the Four Light luxury apartment tower.
What’s On the Horizon?
The proposed plan, which is set for review by the city’s Planned Industrial Expansion Authority (PIEA), targets 3.15 acres in Downtown Kansas City, including the parking lots surrounding B&B Theatres. If approved, this initiative will enable the construction of Four Light, envisioned as a stunning 24-story tower boasting 293 high-end apartments and enticing retail options on the ground floor.
The vision doesn’t stop there. Should they get the green light, the Baltimore-based developer also has its sights set on erecting a fifth downtown high-rise, adding even more excitement and economic activity to the city’s skyline.
A Step Towards Development
City officials are already on board with a significant tax abatement plan stretched over 25 years, which dates back to a deal made over six years ago. During negotiations in 2018, it was agreed that the city would help subsidize parking garages required for up to six Cordish towers, including a hefty $17.1 million commitment for the Four Light project. However, the original agreement fell short of detailing the tax abatement amounts for subsequent projects beyond Four Light.
To establish that the targeted blocks fit the “undeveloped industrial area” designation, Development Initiatives conducted an analysis for the PIEA. Their findings reveal a troubling atmosphere: properties lack essential utility capacity and were marred by 36 crime incidents, ranging from property damage to assaults over a nine-month period this year. The area is currently 49.4% vacant, featuring 15,929 square feet of empty retail space, primarily along Main Street, along with about 0.8 acres of underused surface parking.
The Community Impacts
If city officials classify these blocks as undeveloped industrial areas and later grant the requested tax abatement for Four Light, the result will be a payment structure where Cordish would contribute around $5.625 million in lieu of taxes over 25 years to the impacted jurisdictions. While no construction timeline has been laid out explicitly, Cordish anticipates that the entire construction phase will span approximately 26 to 28 months once it kicks off.
More to Come
The initial public details about Four Light surfaced in an incentive application submitted by Cordish at the end of August, which caught the eye of many Kansas City residents. Moreover, the PIEA meeting revealed plans for yet another project slotted above the 13th & Main buildings—home to popular spots like Yard House and Blade & Timber. These buildings are designed with rooftop structural columns, laying the groundwork for future construction plans.
Unfortunately, the path hasn’t been smooth sailing. Previous attempts to initiate vertical projects in this area hit roadblocks. In the mid-2000s, H&R Block, Inc. explored building additional offices, while more recently, developers geared up for a speculative office tower called Strata. Although Strata received city incentives in 2019, the pandemic threw a wrench in the plans, leading to a significant pause on the project.
A Bright Future Ahead
In August 2023, Kansas City’s City Council took proactive measures by passing new regulations to spark discussions regarding air rights with H&R Block, Strata’s team, and Cordish. The goal? Allowing Cordish to pivot towards a residential project in place of the stalled office tower.
As we keep our eyes peeled on this promising development, the flavor of Kansas City’s Power & Light District is bound to transform, welcoming new faces and fresh energy into the heart of the city.
