Saturday, October 12, 2019

KCMO Tax Breaks For Downtown Offices

Not really news, just development promo . . . Check the sweetheart deal . . .

"The Land Clearance for Redevelopment Authority approved a 25-year property tax abatement – 75% for 10 years, 37.5% for 15 years – last December. The city also will provide an annual subsidy for the garage."

Justification . . .

"The developer believes having the first new office project to be built downtown since the 1201 Walnut office tower was completed in 1991 will be well received in the marketplace."

Read more:

Platform Ventures Plans 2020 Start for 14-Story Downtown Office Project

Platform Ventures plans to begin work early next year on a 14-story office project at 13th and Wyandotte that's more than doubled in size since it was proposed 16 months ago. The office tower is now planned to be 152,000 square feet and would be built above a 409-space, six-level garage.

5 comments:

Anonymous said...

And people wonder why their property taxes are going through the roof?

Super Dave said...

I would be okay with this building project with tax abatement as long as the appraisal of the property goes up 75% each year for 10 years, followed by an increase of 37% per years for 15 years after that. I'm sure some fellow property owners in Jackson County would find that a fair deal.

Anonymous said...

But what if "believing that the project will be well-received by the market" turns out to be yet another half-empty downtown office building?
Shouldn't these unelected folks on these obscure quasi-public boards do some minimal due diligence BEFORE they give away more of the tax base?
Of course, giving away other people's money is always easy, especially when you have zero responsibilities for the consequences.
Is Lucas just along for the ride?

Hyperblogal said...

Older building tenants will move to the new building. Status quo maintained. Speaking of the marketplace, if something is "needed" why does it require incentives?

Anonymous said...

Increase office space supply without an increase in demand. Guess what happens next. Leasing rates drop on existing buildings causing a decrease in value. Less of an incentive to maintain or improve older buildings. More of an incentive to let older buidlings deteriorate and then ask for a subsidy to renovate.