An important development or, rather, the end of a controversial development in Midtown Kansas City . . .
Kansas City Biz Journal: BNIM abandons Crossroads District project
More to the point . . .
COUNT THIS AS AN EPIC DEFEAT FOR MAYOR SLY AND HIS CREW OF CRONY CAPITALISTS!!!
Fair play . . .
Here's the statement from BNIM . . .
Quote . . . "It is upon this principle, and our commitment to KC that we announced our ambitious headquarters project at 1640 Baltimore with Sobel Development Corporation. It would have been a generational project, bringing the most innovative design ideas to life right here in KC. In addition to being the headquarters for our growing firm, it would have served as a global laboratory for quality sustainable design, building on the momentum of the Smart City initiative. It would divert millions of gallons of run-off from our already stressed wastewater system. It would add public green space, community meeting space, new sidewalk retail and, most importantly, serve as a catalyst for more high-quality development throughout the Crossroads, the central business district and the urban core—and finish what was started over twenty years ago with BNIM as master planner working with the Crossroads Community.
We believed that a project like this was beneficial to the entire city, and worthy of a fair level of private-public partnership. We worked diligently with city officials and community leaders to strike a balance that would benefit all. However, we did not anticipate our project becoming a lightning rod in a much larger incentives fight. In spite of a willingness on our part to make multiple revisions to the proposal, including one that would add millions to the KC public school system, petitioners were unwilling to compromise.
"We trust that the City Council will continue to evaluate the incentive framework and make any necessary changes in order to generate continued growth in our city by investing in the type of projects that add value, while supporting services for our fellow citizens. BNIM is committed to Kansas City, our city, today and in the future. However, with our lease expiring at our current temporary headquarters, we must immediately begin the process of identifying interim and permanent office space within the metro KC area. With our recent growth and planned projects set to increase by 50% in the near future, we will also begin the process of shifting some future growth to our offices in other cities until such time as we have an office plan in the KC metro."
The mayor has always been able to serve up one tax break after the next but now Citizen Initiative Petitioners have put enough pressure on big money local interests who are forced to stall abandon their plans.
Snippet of a concession speech:
"As a result of the company’s decision, high-quality jobs in architecture and related professions may not be staying in Kansas City. Now, no local taxing jurisdiction, including Kansas City, will benefit from added economic activity from the renovation of an old structure or from employees who would work in that building," James said.
You decide . . .
So the money goes back to the school district?
ReplyDeleteI wouldn't exactly call that a win.
It will be a win because this firm will end up renting some other building, helping to erase some of the office space glut and driving up property values. If the new building had been built it would have further contributed to the glut of office space, further driving down property values.
ReplyDeleteCelebrate what exactly? That KC becoming more like Topeka?
ReplyDeleteWELL WOO HOO! PARTY ON!
Celebrate the loss of jobs and a business, seems more like a fail
ReplyDeleteJohnson County stays winning when BNIM relocates to Kansas... Another empty building in KCMO, yes!!!!
ReplyDeleteTKC celebrates businesses leaving KCMO, along with the growing body count
ReplyDeleteJust wait till Shirley's revenge. She'll turn it in to surface parking and still get her money. That'll show you.
ReplyDelete5:42, you hit it right on the head! The failing district will lose tax revenue for sure. Jennifer Wolfsie is Clinton Adam's new puppet. Just ask her.
ReplyDeleteNow if we could just get rid of the scam man from WV
ReplyDelete5:00, money would not have been taken from the district. The way TIF works is the portion of NEW tax revenue would have been impacted. The district would still receive the full amount of revenue they currently receive. Example: Currently they receive $5,000. Once developed the tax revenue would be $10,000
ReplyDeleteThey'd still receive the $5,000 and whatever portion of the additional $5,000 that was agreed to. TIF is NOT CASH MONEY, an entity receives, it allows businesses to decrease the taxes the NEW taxes they have to pay.
552p
ReplyDeleteYour idea leans on this foolish idea that the value of a dollar is constant. Seeing as it rarely drops in value, would you sign up for a plan that froze your salary @ $5000 over 23 years for the hope of receiving market rate salary afterwards? Even knowing that $5000 gets you less & less @ years 10, 15, 20 of this deal? Even if that property sat there for 23 years, it would gain in value as the cost of real estate grew with inflation.
Of course you wouldn't. So why ask our schools and libraries to freeze more and more of their taxing income (currently around 10% of their annual budget and climbing) for "the good of the city" and an at-market pay rate then. You'd at least want a larger than market pay rate after such a generational pay rate.
Think critically
6:13 why don't you ask the schools to educate the children? Why would you keep giving them money? I bet the children can't read this post.
ReplyDeleteThink critically? Really? You honestly believe whatever marginal increases in tax receipts from higher valuations that would occur naturally would exceed the increased revenues not just from that project site, but nearby sites that would be worth more? Think critically. Yeah, right.
ReplyDeleteBNIM is a very successful architectural practice which is more than able to pay for the building where they'll end up.
ReplyDeleteShirley Helzberg is a very wealthy woman who can do just fine making investments without the taxpayers picking up part of the tab.
BNIM is also a local company and will stay in the metro. They'll make business decisions that make sense to them and their employees.
It's a big metro area and over 80% of residents don't live in KCMO. Try not to be so parochial.
Let them go to Kansas, they can take the American royal with them. I'm tired of all of the whining from these corporations who claim they're entitled to pay no taxes.
ReplyDeleteMaybe BNIM will stay, unless they can expand elsewhere more easily. KC lost on this one. 23 years sounds like a lot, But it goes by quickly, public improvements are made, valuations go up and the City makes money. If the property sits empty and the value stagnates at $5000 (and anyone who thinks it's going to make any significant change without big investment is crazy) then we are stilt making nothing at the end of 23 years. Big mistake.
ReplyDeleteIf BNIM really cared about someone other than themselves, they would set an example and take the space without incentives now that others have turned Crossroads into a place worth being in. For all of the public project money they've already received, it would have been a tiny gesture at best. If they jump to Kansas now, there should be a resolution that they be cut-off from consideration of any KCMO projects.
ReplyDeleteHELLO BOYS AND GIRLS!!
ReplyDeleteToday, our quick lesson is called "DOING BUSINESS IN KCMO"!!
Are you ready to learn? OK
Step 1) Identify an opportunity (like rehabbing real estate).
Step 2) Prepare a business proposal (remember to inflate your costs, and overestimate the benefits to be delivered).
Step 3) Make your political contributions to those who will be approving your plans.
Step 4) Take your plan approval and go forth and prosper with generous taxpayer subsidies which guarantees you a profit.
Step 5) Rinse and repeat.
Hypothetical Examples From Actual MEC Campaign Filings:
Contributions Of Note To SLY JAMES FOR MAYOR (reviewing 2014-15 reports)
BNIM
1735 Baltimore Ave Kansas City MO 64108 5/26/2015 600.00 500.00
BNIM
1735 Baltimore Ave Kansas City MO 64108 12/9/2014 1,000.00 500.00
Shirley Bush Helzberg
5805 Mission Dr Mission Hills KS 66208 N/A -- Community Volunteer 6/8/2015 500.00 500.00
Shirley Bush Helzberg
5805 Mission Dr Mission Hills KS 66208 N/A -- Community Volunteer 12/18/2014 2,250.00 250.00
Shirley Bush Helzberg
5805 Mission Dr Mission Hills KS 66208 N/A -- Community Volunteer 12/31/2014 2,250.00 500.00
Barnett Helzberg
5805 Mission DrMission Hills KS 66208-1140Shirley & Barnett Helzberg Foundation -- Founder5/2/2014 1,000.00 1,000.00
Failure. I for one would vote to break up the KCMO Central School Board and would be in favor to decentralize this organization.
ReplyDeleteIt is too bad that mis-information about the BNIM project created the delay which ultimately caused the cancellation of the project. The single biggest issue this City has is the reputation of the KCMO School District. Restructure this and you have the beginning of a recovery for the City.
When one sees decisions like the failure of BNIM and the proposed investment in 18th and Vine, it is easy to see why there is an expanding opposition of the E-Tax...
We Believe blah blah blah blah
ReplyDeleteCan't they be bribed to move downtown?
ReplyDeleteSeparate some more bribe money from taxpayers?
Fuck KC and their gay artsy fartsy bullshit. I'm shopping in Northtown.
ReplyDelete8:14 Agreed. Big Mistake!
ReplyDelete