A $76 million apartment and retail redevelopment, planned for most of a city block in Kansas City’s Crossroads Arts District, on Thursday obtained property tax breaks with the project receiving unanimous endorsement by city and county taxing jurisdictions and neighborhood representatives.
The Planned Industrial Expansion Authority authorized a 20-year property tax abatement plan for the City Club project that was agreed to in negotiations with the developer and taxing district representatives for Jackson County, Kansas City Public Schools, and Kansas City Public Library.
The previously revealed plan by developer Jonathan Holtzman calls for 293 apartment units, two levels of underground parking, and some retail or restaurant space on most of the block bounded by Main, Walnut, 20th and 19th streets.
PIEA commissioners approved an 85 percent property tax abatement for 10 years, followed by a 10-year, 37.5 percent abatement plus a sales tax exemption on construction materials.
The developer agreed to payment in lieu of taxes that in year one of the project is expected to amount to $108,000, compared to the $39,815 a year the properties now pay. In years 11-20, the redevelopment is estimated to pay $355,000 in property taxes, according to the project team.
The two-acre redevelopment will convert the historic Midwest Hotel to apartments and build new apartments on most of the rest of the block. A corner site, formerly occupied by the Hereford House restaurant, is targeted for a restaurant.
Holtzman, who is based in Farmington Hills, Mich., but has done similar urban redevelopment projects in other cities, said he’s confident of sustained rental demand in the Crossroads area. He is planning a range of unit sizes and costs and setting aside 10 percent of the units as affordable.
Holtzman said the new streetcar line “is a magnet for developers,’’ and he complimented Kansas City’s political leadership for “making really good decisions.”
The developer expects to break ground this summer and be ready for occupancy within 18 to 24 months after that.