Does Kansas City really need to subsidize the Three Light luxury apartment project?
Two Kansas City Council members are asking critical and timely questions about city subsidies for a major new apartment complex downtown.
Their colleagues should pay attention to their concerns and delay any decision on subsidies until these questions are answered.
The inquiry involves the Three Light apartment complex, a proposed luxury development near the successful One Light and Two Light apartments. Cordish, the developer, has asked for $17.5 million from the city to build a parking garage under the Three Light building. The project would provide roughly 300 more downtown apartments.
The proposal appeared to face little resistance until just a few weeks ago. Then City Council members Alissa Canady and Katheryn Shields began to ask pointed questions about the need for the subsidy and the lack of affordable apartment units downtown.
Last week, the two put their concerns in writing. They offered a resolution directing City Manager Troy Schulte to provide written answers to several questions before the $17.5 million subsidy is considered.
The questions include: Are these subsidies legal? Can the original development agreement with Cordish — signed in 2004 — bind the current City Council?
What would happen if the city refused to spend the $17.5 million? Why does Cordish need the money, especially when One Light and Two Light are filled?
What about the dearth of affordable housing downtown? None of the Lights have such units. And what are the legal and policy implications of giving incentives to a company facing discrimination lawsuits, as is the case with Cordish?
These are important questions about an important project.
The entire Power & Light District development has been popular but controversial. This year’s budget calls for spending $14.2 million from the city’s general fund to pay for debt service on the entertainment part of the project. That subsidy will continue for decades.
Additionally, the city subsidized parking for One Light and Two Light at a cost of roughly $35 million.
Most Kansas Citians would agree those subsidies have largely been worth the cost. Downtown was once an empty collection of old storefronts and haunted houses. The Power & Light project has changed that.
Yet at a time when the city is facing ongoing budget headaches, as well as complaints about subsidies for 18th and Vine, the council has a responsibility to fully examine whether the city should be subsidizing another apartment building.
Cordish says Two Light is fully leased, at an average cost of $2,200 a month for 1,000 square feet. Three Light will likely be just as popular.
The council should not stop construction of the new complex. But Cordish could be more helpful in exploring how it could help the city deliver affordable housing or make other needed contributions downtown. To its credit, the company has said it’s willing to engage in such a conversation.
Councilwomen Canady and Shields have made a needed contribution to that conversation. Their resolution may go before the full council this week. Members should approve it and wait for Schulte to provide additional information before giving any subsidies to the Three Light project.
This story was originally published February 26, 2018 at 4:28 PM with the headline "Does Kansas City really need to subsidize the Three Light luxury apartment project?."