Troost Village

[KCtoBrooklyn]

I did notice a few workers on site today. This is the first signs of life I have seen in quite a while. I don't have any confidence in any of the new construction portions of the proposal, but perhaps the Phase I building renovations will resume (maybe followed by 911 Linwood).

[chaglang]

Got gas at the station across from last week. Don't think that cornice is going to stay attached much longer.

[Midtownkid]

These buildings continue to sit rotting, windows missing, open to the elements. I don't know what's going on...but it seems like the whole development was a scam. Anyone have any info?

We can't let this really nice block of building disappear.

[iamrealz]

Maybe someone can correct me if I'm wrong, but it doesn't look like any permits have been filed since 2021. Hard to imagine any movement with current interest rates unless a new owner/investor comes in.

At least Reconciliation Services on the corner is making progress.

[Hammersmith]

A little more activity here. Recently some of the rear structures were demolished on the southwest corner of 31st and Troost.







Here's the structures that were removed:



Maybe it means that things have not been entirely abandoned? I think the plans for this partial demolition went through in October or November.

[moderne]

This is not part of Troost Village. TV is on the east side only of Troost.

[Hammersmith]

This is not part of Troost Village. TV is on the east side only of Troost.

Ah? I thought both sides were being worked on by the same developer.

[moderne]

No. The buildings on the west have been undergoing rehab for the past several year by different developers. I have heard from a not reliable source that the Troost Village south of Reconciliation Services has been stalled due to the death of the developer.

[FangKC]

Developer in $162M Troost Village plan files for bankruptcy protection during loan dispute

...
But Midtown Redevelopment Partners has yet to turn those renderings into reality. Instead, financial disputes have led to liens and lawsuits, most recently resulting in a bankruptcy filing by Troost Village's lead landowner, CS Midtown LLC. Meanwhile, the plan's Pendergast-era buildings, once part of the Troost corridor's historic fabric of Black-owned businesses, now sit gutted, fenced off or boarded up as other developers and entrepreneurs pursue new investment in the area.

Developer Tim Bowman, who owns CS Midtown, said Troost Village's $18 million first phase has struggled, in part, because 2019 changes in Missouri's historic tax credit law led to the collapse of a $7 million capital stack. However, he said the bankruptcy filing was not because of a "money issue" but rather an emergency need to stop a foreclosure sale he argues was illegitimately set for the former Belmont Hotel at 911 E. Linwood Blvd.

Bowman said he soon expects to finalize terms with a new development partner whose financing would resolve the bankruptcy case and bridge Troost Village's funding gaps so work can resume. About $11.5 million in work already has been completed on three buildings in the first phase.
...
https://www.bizjournals.com/kansascity/ ... toric.html

[moderne]

Ugh. More limbo. Wish he would/could unload this onto someone like MAC.

[Chris Stritzel]

Yesterday. The fact vandals haven't gotten in yet is a testament to either a good security system, or people just wanting to leave the place alone.

[moderne]

I have never seen evidence of security. I love the old entryway terrazzo and J.C.Penney mosaic.

[Hammersmith]

I have never seen evidence of security.

I walked up to the fence a year ago to look at an interesting bird and a security guy came out of the shadows and challenged me.

[FangKC]

Judge dismisses Troost Village developer's bankruptcy case involving historic KC properties

...
Judge Brian Fenimore dismissed CS Midtown's bankruptcy petition without prejudice on July 22. The case's U.S. Trustee filed a motion in early June for dismissal or conversion to Chapter 7, citing the entity's failures to meet "basic statutory and fiduciary obligations" required in exchange for automatic stay under its bankruptcy.

In its June 7 motion, the trustee said CS Midtown had not opened a debtor-in-possession bank account, where its income and expenses could be monitored; had submitted late, incomplete monthly operating reports; had not timely amended the reports; and had not provided proof of continued insurance on its properties.
...
Linwood Equity said the loan matured in October 2022 and in April estimated that the outstanding balance was $613,546. However, CS Midtown argues that it paid down the balance to at least $500,000 through July 2021 and is entitled to an offset of at least $155,000 under an indemnity agreement with Fremont. Its terms called for deducting from the loan balance costs CS Midtown incurred remediating building conditions and resolving previous lien and dangerous building issues.
...
During the hearing, the court agreed with CS Midtown's objection to Linwood Equity's claim amount, finding "that the debtor is entitled to some credits," Rob Pitkin, a Horn Aylward & Bandy LLC attorney representing CS Midtown, said in an email Tuesday. "Based on Judge Fenimore’s findings after hearing the evidence regarding this matter, that case will now occur in state court if a settlement is not reached."
...

https://www.bizjournals.com/kansascity/ ... 7&empos=p6

[moderne]

So what happens now? I cannot imagine this mess along with the blocked sidewalks would be allowed/tolerated in tonier parts of the city.

[FangKC]

They have to work out a settlement on how much the offset credits should be for the remediation they did on the Belmont Hotel to deduct from their loan balance. If they can, things might move forward without going to state court.

I am still skeptical that CS Midtown will finish this project. I think they have bitten off more than they can handle.

I think this project should be divided up into five parts:

Project 1: Renovate the older buildings on the east side of the Troost block from 31st to Linwood, and ditch the amphitheater;

Project 2: The Belmont Hotel should be a separate restoration project under a second developer.

Project 3: A new building on the vacant parcel on the SE corner of Troost & Linwood constructed by a third developer.

Project 4: A new building on the vacant parcel on the SW corner of Troost & Linwood constructed by a fourth developer.

Project 5: A new building on the vacant parcel on the east side of the 31st to Linwood block which would be fronted on Forest Avenue constructed by a fifth developer, or one of the others when they finish their other new project.

[moderne]

That is an excellent proposal. There could be something for all the individual developers that have worked in the midtown area. With all the new and expensive SFH housing that has gone up from Beacon Hill to Squier Park and Manheim there should be some cutesy little center that gives identity.

[FangKC]

The developers of the Belmont Hotel and the SW corner of Troost and Linwood might partner up on building the parking garage on the SE corner of Linwood and Harrison to service both properties.

[KCtoBrooklyn]

Work has been happening on these buildings the past several days. From what I could see, it might just be clean up and sealing up the buildings. I couldn't tell if any construction work was resuming yet.