FOR IMMEDIATE RELEASE: March 30, 2006

Downtown revitalization reaches major milestone

The City of Kansas City, Mo., reached a major milestone Thursday when the City Council approved four ordinances allowing the Power and Light Entertainment District’s development to move forward. The City has substantially completed all necessary land acquisition and preparation, environmental abatement, demolition and utility activities and is turning parcels over to the Cordish Company for retail and residential development. Only preservation work of the Empire Theater remains.

“The public/private partnership between the City, the state of Missouri, and the Cordish Company has allowed Kansas City to experience an unprecedented renaissance,” Mayor Kay Barnes said. “This is an important step in an historic project for downtown and will transform how people throughout the metropolitan area and region live, work and play in Kansas City."

The approved ordinances allow the issuance of $115 million in revenue bonds; authorize the amended tax increment financing plan; authorize the Master Development Agreement between the City and the Cordish Company; approve the creation of the 1200 Main/South Loop Transportation Development District; and authorize the City’s parking agreement.

“The Power and Light District project also is the first project in Kansas City to utilize the State of Missouri’s Downtown Economic Stimulus Act, which has provided approximately 25 percent of the public funding needed for this project,” Barnes said.

The Power and Light District is the largest public-private redevelopment project in the history of Kansas City. The first phase of the district, expected to be completed in 2007, will offer 425,000 square feet of retail and entertainment space. The second phase will contain 1,500 residential units and nearly 1 million square feet of office space. This nearly $900 million project is expected to generate more than 3,000 new jobs.

“Kansas City’s investment in its aging downtown infrastructure will prove to be a vital step in accommodating future growth,” City Manager Wayne A. Cauthen said. “This public investment in downtown’s revitalization will spur private sector investment and provide a powerful economic engine for the city.”

“Kansas City’s urban core will be a magnet for visitors from around the country with the first phase of the Power and Light District, Sprint Center and convention center ballroom opening next year, followed by the performing arts center. We are building a world-class destination,” Barnes said.

The City’s responsibilities included the purchase of all the property; vacation of the alleys including all private and public utilities; demolition and environmental abatement in the existing buildings and parking lots; and replacement of all the public utilities including water, sanitary sewer and storm sewer. This included the separation of the combined sanitary and storm sewers, replacement of the streets and construction and service of telecommunications system.

The City has let more than $64 million in construction contracts and $5 million in design contracts to date that include trolley track removal; utility design; environmental remediation; building demolition and abatement; street replacement and paving; telecommunications; and Empire Theater abatement. The remainder of the City’s work includes more than $7 million worth of street construction and the demolition of several buildings on Block 112, which is located on the southeast corner of 12th Street and Grand Boulevard.

The City has had numerous prime contractors involved in this project including:

Damon Pursell (trolley track removal)

Black & Veatch (utility design)

Family Environmental and Tetra Tech (environmental remediation design and demolition)

Beemer Construction (utilities)

Deco Companies and B&R Insulation (demolition and abatement)

A.T. Renczarski (Jones Store demolition oversight)

Kissick Construction (telecommunications and utilities)

Pyramid Construction (utilities)

HNTB (street design)

Musselman and Hall (street replacement)

Kingston Environmental (Empire Theater abatement)

J.M. Fahey (street reconstruction and replacement).

The City’s Capital Improvements Management Office is managing the City’s environmental, demolition and infrastructure improvement efforts to support the new downtown entertainment district and is coordinating project work with City departments and the developers of the district.