OFFICIAL - IRS HQ construction

KCgridlock · Post by **KCgridlock** » Sun Nov 17, 2002 10:44 am

http://www.kansascity.com/mld/kansascit ... 536925.htm

Posted on Sun, Nov. 17, 2002

IRS would put 5,000 workers in Main Post Office area
By KEVIN COLLISON
The Kansas City Star

A $200 million plan that would move 5,000 local IRS workers downtown and redevelop the old Main Post Office area has taken a big step forward, winning support from the General Services Administration.

Stephen A. Perry, the top administrator for the agency in Washington, told Sen. Kit Bond in a letter released Saturday that he supported the $200 million redevelopment plan.

"GSA believes that this project could represent a multiple win situation benefiting the IRS mission, clients and employees, the people of Kansas City and the American taxpayer," wrote Perry, the federal government's chief landlord.

Bond has been pushing the proposal, which includes office annexes to the west of the post office building and 5,500 parking spaces. Bond said he now was hoping that the plan would be endorsed by the Office of Management and Budget -- its last executive branch hurdle -- and then go to Congress.

"This important project is one step closer to reality," said Bond, a Missouri Republican. "Much work remains, but I am very pleased with the progress we are making so far. It is very promising."

In the letter, Perry said the redevelopment plan had been forwarded to the Office of Management and Budget. Supporters did not have a timetable for when that agency might act.

"We look forward to working with OMB and Congress in obtaining authorization for the project at the earliest possible date, so that design work can proceed expeditiously," he said.

If successful, the consolidation would substantially boost the downtown employment base -- a key goal in reviving downtown -- and provide a big infusion of people and investment in the Union Station area.

The proposal calls for moving 5,000 IRS employees in the Kansas City metropolitan area to the underused post office and vicinity at 315 W. Pershing Road.

The IRS operates large offices on Bannister Road in Kansas City and in the 119th Street and Metcalf Avenue area of Overland Park, and there are scattered offices elsewhere. Local leases will begin expiring in 2007.

Perry joins IRS Commissioner Charles Rossotti and Treasury Secretary Paul H. O'Neill in supporting Bond on the consolidation plan.

Ken Mehlman, a deputy assistant to President Bush, also has been briefed by Bond and toured the post office property late last month.

"When this project is begun, it is going to make a positive difference for downtown Kansas City," Bond said.

Union Station officials have estimated that the economic activity created by the infusion of employees across the street would generate $2.5 million to $3 million in revenue.

Increasing employment and development in the area is one of the strategies being pursued to bring more traffic into the station, which reopened in 1999 after a $234 million renovation project done with substantial taxpayer support.

Perry noted the positive effect the proposed redevelopment would have on reviving downtown.

"Of perhaps greatest importance to Kansas City is the fact that the project brings about 5,000 workers to downtown, while preserving a proud historical structure," Perry said.

Some observers have questioned how much business the IRS employees, many of them clerical workers with short lunch breaks and varied shifts, would bring to the restaurants, shops and attractions at Union Station.

The Depression-era post office has been semivacant since 1,600 postal workers were shifted to a new mail processing center in the former Sears distribution warehouse near Interstate 70 and Truman Road three years ago.

The tentative plan calls for the renovation of the five-story post office building, which was built in 1933, and the construction of three 200,000-square-foot office annexes on its west side.

The annexes would be used by seasonal IRS workers and then mothballed the rest of the year to save money. The proposal also includes 5,500 parking spaces on the surface and underground.

The overall project would include more than 1 million square feet.

The property being considered, including the post office building and the parking lots to the west, covers about 27 acres. DST Realty has the redevelopment rights to the property.

One factor in the proposal's favor is the IRS' desire to have large service centers, partly in response to recent complaints about efficiency. Kansas City has been proposed as one of two paper processing centers in the country. The other is being considered for Philadelphia.

Perry said the old post office property was a good site for the processing center because its size could accommodate the consolidation required for improved efficiency.

"In fact, the design of the IRS Kansas City Service Center very nearly mirrors the renderings that were forwarded by the IRS as their ideal structure," he said.

The General Services official also praised its location, saying its proximity to expressways and bus routes made it highly accessible to employees.

"For IRS employees and clients," he added, "the area amenities include dining, shopping and entertainment venues, and an expanding housing base for all income levels.

"We are excited about this project that can significantly contribute to the urban development in Kansas City."

KCPowercat · Post by **KCPowercat** » Mon Nov 18, 2002 9:25 am

This is awesome news....great reuse although I liked somebody elses idea of making it into a museum as well.

Now, with 5000 IRS employees hitting the old post office, it ought to be a lot easier to decide what to do with the long building to the west of Union Station.

KCPowercat · Post by **KCPowercat** » Wed Feb 05, 2003 1:41 pm

http://www.kansascity.com/mld/kansascit ... 106274.htm

More good news on this project. Seems that it will expand to Union Station where U.S. will house the retail post office operations and the building to the west of U.S. that has yet to be renovated would serve the function that the old post office serves now.

$300M project all together. This would be a HUGE boost for the urban core, Crown center, & Union Station.....

This would be one of the major projects everybody should be cheering for.

trailerkid · Post by **trailerkid** » Wed Feb 05, 2003 1:52 pm

Now just tack on the shimmering arena connected with the skyway and Crown Center/Union Station area would be the bomb.

KCPowercat · Post by **KCPowercat** » Wed Feb 05, 2003 1:56 pm

I still want the arena downtown but hell I'll take it ANYWHERE at this point....

StL_Dan · Post by **StL_Dan** » Wed Feb 05, 2003 2:42 pm

trailerkid wrote:Now just tack on the shimmering arena connected with the skyway and Crown Center/Union Station area would be the bomb.

Great news regarding the Post Office and Union Station.

Forget an arena, nobody in this place will fork out $70-100 tickets for to watch an NHL or NBA team perform.

A downtown baseball stadium would be the juice.

Good2Great · Post by **Good2Great** » Wed Feb 05, 2003 2:59 pm

trailerkid wrote:Now just tack on the shimmering arena connected with the skyway and Crown Center/Union Station area would be the bomb.

Don't let Stan Glazer hear that!

KCPowercat · Post by **KCPowercat** » Wed Feb 05, 2003 3:06 pm

Better not let Glazer hear sirens or he'll be out of the race even faster.

macnw · Post by **macnw** » Wed Feb 05, 2003 3:54 pm

I'd think the city would be thinking real hard about some of that proposed housing in Penn Valley Park. If the IRS moves 3,000-4000 permanent jobs to this area where will people live? Could be some big potential at the park or up the hill at the former Trinity Lutheran site? Let's have some vision and connect the dots!

Good2Great · Post by **Good2Great** » Wed Feb 05, 2003 5:56 pm

That's great news, sort of! I'm thrilled that such a capital investment will be made, BUT I'm a bit peeved that it's by the IRS.

For MY tax dollars, the iRS should be happy with a metal building.

KCDevin · Post by **KCDevin** » Wed Feb 05, 2003 11:06 pm

this is good

but would it be better downtown?
and will they fix the Post Office up? i mean just make the outside look new

?

KCPowercat · Post by **KCPowercat** » Wed Feb 05, 2003 11:12 pm

Forget an arena, nobody in this place will fork out $70-100 tickets for to watch an NHL or NBA team perform.

Any city in America has tickets for NBA/NHL for below $15....the expensive seats in EVERY city are bought up mostly by corporations, not people.

Not that I'm advocating a NBA/NHL team at this point, even w/o one of those, an arena is a solid investment. Studies have even shown that the arena can make more for the city w/o a major league tenant.

Not that a downtown baseball stadium wouldn't rock as well but that's up to Mr. Glass.....he's the one that needs to say that's what he wants instead of an upgrade.

StL_Dan · Post by **StL_Dan** » Thu Feb 06, 2003 8:58 am

KC wrote:
Forget an arena, nobody in this place will fork out $70-100 tickets for to watch an NHL or NBA team perform.
Any city in America has tickets for NBA/NHL for below $15....the expensive seats in EVERY city are bought up mostly by corporations, not people.

Not that I'm advocating a NBA/NHL team at this point, even w/o one of those, an arena is a solid investment. Studies have even shown that the arena can make more for the city w/o a major league tenant.

Not that a downtown baseball stadium wouldn't rock as well but that's up to Mr. Glass.....he's the one that needs to say that's what he wants instead of an upgrade.

Do you really think 17,000 KCitians will show up for an entertainment schedule that does not include an NHL or NBA team? I think not.

Here's what is going on at the Savvis Center just for comparisons sake...and I'll bet the non Blues and Billiken events (that avg 17,800 fans per game) come anywhere near half capacity.

http://www.savviscenter.net/calendar/calendar.asp

KCPowercat · Post by **KCPowercat** » Thu Feb 06, 2003 9:35 am

Neither one of us has done the study, I'm quoting the people that did do the study that shows more revenue can be created for the city w/o a major tenant. Reason for this? Partly because major tenants require part of everything from the luxury suites to the parking. One time and smaller events do not.

Hell I think it's worth it just to keep KC in the Big 12 tournament rotation and getting things like NCAA Regionals and Women and/or NCAA hockey Final Fours.

Kemper has lasted long enough. Glass doesn't want a new stadium...nobody can force his hand. What is in the city's control is building an arena RIGHT, have it privately managed, and increase the tax base in this city.

KCPowercat · Post by **KCPowercat** » Thu Feb 06, 2003 9:38 am

Plus the additional space for conventions

StL_Dan · Post by **StL_Dan** » Thu Feb 06, 2003 3:24 pm

KC wrote:Neither one of us has done the study, I'm quoting the people that did do the study that shows more revenue can be created for the city w/o a major tenant. Reason for this? Partly because major tenants require part of everything from the luxury suites to the parking. One time and smaller events do not.

Hell I think it's worth it just to keep KC in the Big 12 tournament rotation and getting things like NCAA Regionals and Women and/or NCAA hockey Final Fours.

Kemper has lasted long enough. Glass doesn't want a new stadium...nobody can force his hand. What is in the city's control is building an arena RIGHT, have it privately managed, and increase the tax base in this city.

If it makes financial sense to build a brand new downtown arena that would be economically sensible even if it only hosted the Big VIII+4 tournament, I would be happy as well.

StL_Dan · Post by **StL_Dan** » Thu Feb 06, 2003 3:26 pm

KC wrote:Plus the additional space for conventions

What is the word on the "conventions" that come to town? I assume you are referring to conventions such as "the home show", "auto show", etc.

Do these events produce a lot of revenue? How much does the city make on convention business each year?

KCgridlock · Post by **KCgridlock** » Thu Feb 06, 2003 5:35 pm

Between 400,000 and 600,000 out of town conventioneers come to KC every year. Large conventions (20,000-40,000) pump millions into the economy. One of the latest bigger conventions, dentists I believe pumped something like 10 or 15 million into the economy. Easily several years of mortgage payments on a new arena. KC has been loosing ground big time on the conventions. KC used to be a top tier or second tier convention city, it's now probably fourth tier. A new arena along with the existing muni, a new ballroom, the arts center and a revived downtown will change that in a heartbeat as KC is easy and cheap to get to and much less hassle compared to coastal cities especially since 9/11. KC needs an arena bad. Not to mention it would be nice to get back some top winter sports like AHL, AFL etc and more concerts, college tournaments etc.

KCPowercat · Post by **KCPowercat** » Thu Feb 06, 2003 7:55 pm

I know the Wal-Mart convention, which is currently going on right now for a month, could use the extra space.

also things like VICA/Skills could use the extra space that a downtown arena would provide and put us in the running for conventions we currently can't bid on because of our lack of a quality downtown covered arena.

KC is a huge convention market for our size of city.....I can get my girlfriend to get you some numbers if needed about the number of room nights, etc. that she can get from the CVB.

QueSi2Opie · Post by **QueSi2Opie** » Mon Feb 10, 2003 12:20 pm

KC wrote:Glass doesn't want a new stadium...nobody can force his hand.

It's my opinion that Glass wants to move the team before 2012.

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