IT'S GOING TO TAKE THE COMBINED EFFORTS OF PRIVATE INVESTORS AND DEVELOPERS, CITY HALL AND A BROADER LEVEL OF SUPPORT FROM THE PUBLIC TO MOVE DOWNTOWN FORWARD.

 

In many ways, maintaining the almost unbelievable momentum in Downtown Kansas City’s growth is simple: just keep building.

But even if capital were plentiful—and that’s anything but true today—decisions on issues such as transportation or incentives are often confused and contentious. Debates involve politics and priorities that may cause some to fear for the continuation of downtown’s rebirth.

One of the biggest factors may involve communications. Although excellent work has occurred with specific programs, including Kansas City Public Television’s recent airing of the documentary “The Next American Dream,” many worry that the larger metropolitan area still doesn’t see Downtown’s dramatic transformation.

“For years, there was no private investment Downtown,” Kansas City Councilwoman Cindy Circo noted. “We need more people to be aware of what’s happening and the success, but the numbers are amazing.”

 

A NEW PERSPECTIVE

Joyce Murray, a broker with Zimmer Real Estate, said lifestyle changes Downtown are almost unbelievable. “The other night, my husband and I went to the Main Street Theater then walked to a restaurant. The sidewalks were crowded and it was really lively. I thought, ‘This is Downtown Kansas City!’ It’s become just an exciting place.”

Yet even with live and cinema theaters, restaurants and museums, many outside the area still see it as depressed. “We have to educate people,” said Jerri Moulder with Keller Williams. “Downtown had this woebegone atmosphere for so many years that it’s hard to change opinions, especially in the suburbs. If you haven’t seen it lately, you won’t believe it.”

Also deserving better visibility is the growth in office and commercial development, especially by small- and medium-size firms. “We have finally created the environment that people want to be part of,” noted Jon Copaken, of Copaken, White & Blitt. “It’s becoming the location of choice for a lot of businesses.”

Despite a nationally slowed condo market, housing also has bright spots. One observer described as “ridiculously good” the occupancy rate of downtown’s rental residential.

Better awareness of all this needs to be a priority. Even on everyday issues like public parking, suburban-oriented motorists still have trouble. “We may need to do a better job of signing, especially for those who aren’t familiar with the area,” Copaken concluded. “But I firmly believe that based on occupancy, numerically you’ve got plenty.”

 

LONG-TERM ISSUES

The most challenging needs Downtown have something else in common: incentives. Although consensus in a sprawling, two-state area is always difficult, it has been especially problematic on tax-increment financing and other questions. Yet two of Downtown’s most far-reaching issues hinge on these questions: continued attraction of business and population growth.

“We have to decide what we want and how we expect it to happen,” explained Tom Trabon, outgoing chairman of the Downtown Council. “The goal is not to provide incentives for one project. That’s not what the development community wants and that’s certainly not what the city wants. But you can incent major goals—promote your major visionary ideas. That’s the key.”

Copaken struck a similar theme. “What we’re really talking about is how we want Downtown to look like in five, 10 or 15 years. And if we don’t make the investments and fill that gap, we’re never going to be there down the line.”

Jerry D. Riffel, attorney with Lathrop and Gage, said the concept of incentives was often misunderstood and now, especially, needed to focus on smaller business, especially those in the service sector. “The city needs to help those souls Downtown who are promoting service retail,” he said. “And what we need is not a subsidy, but help with marketing and promotion for these smaller, private companies. Unless we promote those areas, we’ll lag behind.”

 

STREETSCAPE VIEW

Andy Fromm is CEO of Services Management Group, a longtime Downtown presence that is moving into historically renovated offices at 18th and McGee. Fromm said the company’s development experience was largely positive, although there was a gap between funding for necessary infrastructure such as employee parking and public perception.

“As we look at building more office buildings and other projects, if we need to help with a parking lot, then that’s what we need to do,” Fromm said. “There’s been too strong of a backlash against TIF. I know there have been bad deals, but that doesn’t mean every deal is bad.”

One of the most highly used programs actually involves historic tax credits, which not only tend to assist medium-size organizations, but contribute to the visual uniqueness of many Downtown districts. One problem now is that many opportunities are dwindling for the simple reason that many eligible buildings have been done. A replacement or additional option has not been forthcoming.

 

DEVILISH DETAILS

Others suggest improving processes at City Hall and elsewhere as another means to continue Downtown growth. Fromm noted that one key was to have people at City Hall who understand business, especially on boards and commissions. “We need people looking at these deals that understand the economics of what makes it work,” he said. “Especially in a tough economy, that’s definitely important.”

Trabon also urged completion of procedural updates at City Hall, which have been discussed sine 2007. “Here we are in late 2009 and we still don’t have final implementation of those procedures,” he said. “You can imagine if you’re a developer or thinking about development, how difficult it can be if there’s not a clear guide. The cost of going through the process just to see if incentives are available is very prohibitive. And that precludes small developers from even doing it.”

While requiring federal or state action, Murray suggested changes that involve businesses reimbursement. “There are a lot of things we can do without costing,” she said. “We need to refund the SBA. They have great programs for small businesses, but they’re running out of money. I also hope they leave the capital gains tax alone because that can put money out there that doesn’t come out of our coffers.”

 

BIG PICTURES

Despite all of these issues, Downtown still faces some large, single project questions. Topping this list is the decision on a convention hotel.

Circo co-chairs the council committee that recently hired a consultant to dig into the feasibility of the large project. “Ultimately, it will be for the council to agree or disagree that this is the right thing at the right time,” she explained. “The big thing obviously is the financing, and there’s no way to know what those numbers will look like.”

A GSA office is more in the hands of federal officials, although many, like Riffel, describe the office building as a critical need.

“In terms of future jobs and taking Downtown to the next level, I don’t think there’s anything more important,” he said. “We have to pursue that.”

Transportation and connectivity comprise another major topic. Discussions of rail and trolley options continue, but others note that simple “walkability” is becoming one of the region’s growing strengths that should be continued.

But even questions of walkability are something of a victory because 10 years ago, there was nowhere to walk and nothing to see.

Denise Gilmore, spokeswoman for the 18th and Vine Jazz District, could have been talking about all of Downtown when she cited some of that district’s potential.

“Visitors really like the authenticity of the district when they travel,” she said. “We have something here that can’t be duplicated anywhere in the world.

“We have more work to do, but when you look at the past 10 years, it’s remarkable the accomplishments that have been made.”