Around Kansas City, "master planned communities" might be described as rare jewels of the housing market. These "cities within a city" are usually large developments that combine several types of residential and even commercial development. The key is that the entire area is planned as a whole, with amenities such as greenways designed into the area from the start.

Local examples are not as prevalent as in some areas of the country, but they offer an important option in the new home market. The strategy allows developers to accomplish several things--not the least of which is the smooth blending of different resi- dential areas and commercial property. Homeowners moving into a planned community know what will be built next door or in the next block. Many homebuyers also prefer the residential diversity and blended retail available in these developments, essentially modern versions of the Plaza or Brookside.

Lonnie Cohen, staff vice president at the Kansas City Home Builders Association, sees master planned communities as an important addition to the local housing scene. "The increase of choices is really the big story," Cohen said. "What's really happening in this area is that we are seeing more choices. Whether it's urban housing in town or a planned com-munity, we are getting away from traditional single family as the only choice."

Marlene Nagel, planner with the Mid-America Regional Council, noted that planned development makes it easier to pursue goals such as pedestrian friendly communities. "It helps with amenities such as walkability," she said, noting regional work to create a more pedestrian friendly city. "With a master planned community, you're looking at the big picture instead of separate developments."

It's the Economy . . .

So why isn't everything master planned? Tim Underwood, executive director of the Home Builders Assn., said the technique has not been prevalent here for a simple reason: large property blocks are hard to assemble.

"In Kansas City, it's more the exception because we tend to have smaller developments and smaller subdivisions," he said. "It's still a unique phenomena in the Kansas City area."

Builder/developer Tom Woods of T.E. Woods Construction agreed. "For the most part the KC market simply hasn't followed that trend," he said. "Ground here has tended to be very fragmented."

That doesn't mean planned developments don't exist here. Communities such as Cedar Creek, Lion's Gate, Loch Lloyd and The National offer luxury homes and amenities to rival most developments in the nation. Among the newest are representatives from north of the River, Staley Farm, Zona Rosa and Shoal Creek. The last two are just finishing the design phase but promise to be among the most dramatic in the region.

One of the area's oldest master planned communities is a good example of the trend. Cedar Creek in Olathe lies on property that was already owned by parent company Ashcroft Cement, making the land concern a non-issue. Starting more than 30 years ago, the company also did several other things right.

"You have to realize that it's a long-term process," explained Cedar Creek managing developer Craig Eymann. "It's gong to take some planning and some carry through. More than anything, it takes some vision and financial strength."

Size Does Count

The sheer size of most master-planned communities increases the complexity significantly. "It's hard to do a master planned community on 40 acres," noted Joseph Scherer of Schere Construction. "We are a firm believer in the concept of master planned communities, but a development over 80 acres is rare in our area. But I think we will start seeing more of them as we grow outward and larger blocks of land are more available."

A former Blue Springs Mayor, Woods said cities try to fill some of the gap, but it is difficult. "The problem is that when the cities do it, it's good for about 15 minutes," he said. "Then a Bass Pro or something comes in and the plan is out the window. That's not necessarily bad, but it's a fact." Despite these challenges, master planned communities have several advantages, not the least of which is politics. "It is less confrontational with the people in the area," Eymann noted. "With a master planned community, there are fewer surprises because it is planned in advance. People know what to expect."

But the biggest advantage usually involves the extensive, networked amenities that are all but impossible in the typical community with multiple owners. Even traffic can be enhanced.

Eymann noted Cedar Creek's blending of residential and retail was designed to reduce traffic in residential areas while avoiding a five-mile drive for everyday items. "We've planned our community where there would be retail with residential from the beginning," he said. "The entire road network is set up so that commuters can get on the highways, but you don't have a lot of traffic through the residential areas."

Scherer sees this as a significant marketing advantage. "You offer an entire community within their own subdivision," he said. "They can stop by QuikTrip on the way home or pickup their laundry instead of driving all over the area. Basically, it's a lifestyle issue that's a real advantage when you can put it together."

Kansas City Lifestyles

The Kansas City area does have several large developments that in some regions might not quite qualify as master planned because of their lack of retail development. However, Kansas City does boast several large developments built around national level golf courses that feature extensive amenities and master planning. Overall, this picture is a result of Kansas City's market.

Scherer, who is also involved in Wyandotte County planning, said many developers in this area don't think in terms of the mixed uses needed for master planned communities. "Most developers don't see the big picture," he said. "It's hard to focus on your specialty and then look up and see the overall market. They tend to look at one type of building, and that's it."

Another aspect is local financing and the mix of building companies. Several noted that banking here tends to be conservative, focusing more on $2 and $3 million loans rather than the larger amounts needed for planned developments. The building industry also reflects this focus on smaller, independent efforts.

"Kansas City has not had a lot of large developers," Eymann noted. "J.C. Nichols was an example. But big national development firms don't work here that often."

Scherer agreed. "Financing is con- servative here and we don't have many of the really big builders like you see on the east or west coast," he said. "We have 200 to 300 small ones. It's not like the east coast where they can sell 5,000 houses. We're all little players and a little player can only borrow so much money. We actually have a fairly rare market for home construction."

Going the Distance

Even among those who have been successful, building a master planned community is an endurance event. "I can think of two or three communities that have been built in the last 30 years and they were failures, primarily because of financial constraints," Woods said. "They had good plans, good housing and good shopping, but they couldn't hold on until the end. We have several here that are successful, but they are being handled now by the second or even third owner."

This possibility of changing ownership brings up another problem with master planned communities. For example, Longview Farm in Lee's Summit initially promised exceptional quality that would rival the most exclusive new home communities in America. The original developer Dean Goodman is now gone and the successor David Gale, though funded by Tax Incriment Financing (TIF), has diminished the original plans significantly--despite the promises that were made to the original investors and homeowners.

Eymann said another challenge involves local governments. Although most cities promote planned development, the sheer size can be an issue. "Cedar Creek was built in two school districts, two water and two sewer districts," he said. "We dealt with two gas companies and two power companies. You always had to keep those invisible lines in mind as you designed."

And while vision is important, practicality is needed even more. "The challenge for a master plan community to work is to have all of those amenities in the right mix and the right location," Woods said. "Cities (governments) many times lose focus of the economic realities. They are good people, but they get their money a different way and they don't always see the economics of development."

Despite the challenges, master planned communities are likely to increase in the Kansas City area. "We have many people buy who have lived in one in another town and move here," Eymann said. "They wanted to stay in that kind of environment. And as we move out, I think you'll see larger tracts of land easier to assembly. It's a natural progression."