Facebook posts jeopardize tax incentives for KC developer’s historic Hyde Park remodel
Johnny Youssef has frequently documented his work restoring historic properties and bringing them back to life. He shares videos on Facebook showing progress and publishes blogs detailing the excruciating work of demolition and rehabilitation.
But those posts became a liability on Wednesday, when Youssef’s requests for a tax abatement was thwarted by neighbors in Kansas City’s Hyde Park.
Youssef has owned the 6,000-square-foot historic manse at 3400 Campbell St. since 2017. He aims at restoring the previously abandoned project and splitting it into two duplexes. He planned to build another duplex on an empty lot next door.
On Wednesday, he asked Kansas City’s Land Clearance for Redevelopment Authority to declare his property blighted, the first step in receiving a 10-year property tax abatement. While some Hyde Park residents supported his plans publicly, others objected, saying they spent years investing in their own historic homes without tax breaks from the city.
Ultimately, though, Facebook posts that Youssef previously shared caused his plans to stall at a board meeting. Those photos showed that work was already well under way. The drywall looked freshly completed, new windows still had factory stickers and blue tarps lay on the floors.
“We are hoping that you guys recognize today there is no need for this abatement. The work has been done,” said neighbor Angie Splittgerber, who shared Youssef’s posts with the LCRA board. “The property is not blighted.”
Hers was a very different portrayal than the images LCRA staff shared with the board before the meeting. A blight study from LCRA included photos of vegetation growing inside the home, crumbling walls and debris littered throughout the home.
“Angie are we looking at the same property?” asked board member Melissa Patterson Hazley
“You are, yes,” Splittgerber replied.
Patterson Hazley questioned why staff had recommended a blight finding for the property.
“I want to thank the neighbors for all the detective work,” she said. “It’s a little concerning that our information was very different.”
She said the developer had done a “phenomenal job” on the property but didn’t think taxpayers should have any involvement in covering the cost of the rehab.
For his part, Youssef said he wasn’t trying to hide anything — he wouldn’t have put those images on social media if he were.
Once he was notified work could not go on as the project was considered by the agency, he stopped. And no work has happened for months, he said. Additionally, Youssef said he had incurred huge costs as lumber prices have skyrocketed recently. The developer asked about applying for a tax abatement on only his empty lot, rather than the historic home.
The board said it may consider that request in the future and elected to table the application on Wednesday.
Even without the tax incentives, Youssef already has the proper city approval to move forward with construction on both the home rehab and construction of a new duplex next door, officials said.
His application prompted dozens of pages of correspondence from neighbors supporting and opposing it. Similarly, several weighed in on the virtual meeting Wednesday morning to share their thoughts.
Some were worried about the potential for short-term rentals, as Youssef advertises other properties on sites like Airbnb. While big developments often spark community discussion or debate, smaller projects like Youssef’s usually do not, said Dan Moye, LCRA’s executive director.
“As a general rule, it’s pretty uncommon. But as projects in Hyde Park go it’s not very uncommon,” he said in an interview. “That’s a neighborhood with a lot of different opinions and a lot of different stances. Basically anytime there’s a project, there are people against it and people in favor of it.”
Formerly a nursing home, the huge brick home has been empty for years, Youssef said. In an interview, he said the project would return value to the neighborhood, not hurt it. He’s been a real estate investor for 20 years and has revived multiple historic properties.
“My hope is to do what I’ve done before and it’s to take eyesore properties that have been neglected and abandoned and abused and see them transformed into living spaces,” he said. “Whether it’s future renters or home owners, they would have a great quality home that they can live in while improving the neighborhood and the city.”
In an interview, the developer said he was shocked by the opposition from neighbors, particularly those who objected to bringing tenants into the neighborhood.
“It is very concerning the level of hostility I have received,” he said, “because I’m an investor, a landlord or, God forbid, I may bring renters into Hyde Park.”
