KC Council OKs $20.5M advance for Citadel Plaza project

Kansas City Business Journal

"The Kansas City Council on Thursday voted unanimously to advance $20.5 million for the Citadel Plaza, a $90.5 million mixed-use redevelopment proposed for a blighted portion of the city’s East Side.

The long-delayed project — generally bounded by 59th Street, 63rd Street, Brooklyn Avenue and Prospect Avenue — got a boost in September when the City Council approved a redevelopment plan that includes $43.7 million in tax increment financing. But the project developer, Community Development Corp. of Kansas City, and city staff agreed that now was not a good time to market the first of the two bond issues that the city has agreed to back to raise the $43.7 million, David Frantze, a Stinson Morrison Hecker LLP lawyer who represents the Citadel Plaza developer, said Friday.

Hence, the City Council was asked for the $20.5 million advance, which will be used for remaining land acquisition and site preparation, and will be repaid when the bond market improves, Frantze said.

The ordinance approving the advance calls for CDC of Kansas City to find a co-developer for the project. But it was not clear after Thursday’s vote what “co-developer” means.

“That’s a great question,” said Dave Claflin, a spokesman for RED Development LLC.

RED, which developed the $250 million The Legends of Village West destination-retail center in Kansas City, Kan., has agreed to serve as a for-fee adviser on the Citadel Plaza project but not to invest in it, Claflin said.

Councilman Bill Skaggs said he cast his vote for the $20.5 million advance thinking “co-developer” meant “having some skin in the game” and “more than just an adviser.”

Frantze said the term would be defined in his client’s final agreement with RED or another co-developer. He said the ordinance approved Thursday gives the City Council final say on whether the partner and its role in the project are satisfactory.

William Threatt Jr., CEO of the CDC of Kansas City, said Thursday’s City Council vote should pave the way for the start of construction by June or July.

The project calls for 307,327 square feet of retail space, 35,000 feet of office space and 1,200 parking spaces. Threatt said a regional grocery operator has agreed to be an anchor tenant for the retail development."