NE Corner of 14th & Wyandotte (300 unit apartment)

[moderne]

What info do you have to base that on?

[mister816]

What info do you have to base that on?

He doesn't need to have info to base a guess on. I agree with his guess given the history of projects in this city. This project will be significantly smaller in scale than these renderings when it's all said and done.

[Chris Stritzel]

4 applications made to the FAA for the building - 340ft
https://oeaaa.faa.gov/oeaaa/external/se ... 8945&row=9

1 application made for a tower crane of 400ft.
https://oeaaa.faa.gov/oeaaa/external/se ... 950&row=10

[TheUrbanRoo]

Work schedule listed is 7/1/24 to 7/1/27

[kboish]

Which means they want to get their incentives approved by 7/1/24. And incentives have a 3-year time window for completion

[trexel94]

$34 million in incentives being sought.

https://www.bizjournals.com/kansascity/ ... ntown.html

Key points
A 20-year property tax abatement, at 80% for the first 10 years and 50% for the next 10, from the Land Clearance for Redevelopment Authority — $17.3 million.
A 20-year redirection of local economic activity taxes on the hotel component (including percentages of food and beverage, utilities and individual earnings taxes) through tax increment financing and Super TIF components — $5.4 million
A 20-year redirection of revenue from a 1% sales tax, imposed within a new community improvement district around the project site — $5.6 million
A sales tax exemption on construction materials for the initial project, plus two future hotel renovations — $5.8 million (initial project)

Monthly rents for apartments at 14 Wyandotte would most closely align with those at Two Light and outpace those at other high-end residential communities. Lux's project would include 24 studios, averaging 450 square feet and renting for $1,620 a month; 57 one-bedrooms, around 630 square feet and $1,969 a month; 135 two-bedrooms, averaging 933 square feet and $2,851 a month; and six three-bedrooms, around 2,100 square feet and $7,455 a month.

As an EDC project, 14 Wyandotte also must comply with Kansas City's affordable housing set-aside policy. The project would reserve 60 studios, ranging between 275 and 450 square feet, as affordable for renters earning up to 60% of the area's median family income (MFI), or $965 a month under city guidelines, according to SB Friedman.

However, the firm found that the high-rise appeared to remain feasible with a lesser 15-year property tax abatement — at 75% for 10 years, then 50% for the next five. That award would minimally reduce Lux's unleveraged return from 8.4% to 8.3%, compared with 7.2% without public assistance. Affected taxing jurisdictions, meanwhile, would receive $23 million in property tax revenues over a 25-year period, compared with $19 million under Lux's requested terms.

Pending future approvals, the developer has said it targets a 28-month construction window on 14 Wyandotte between January 2024 and May 2026.

[FangKC]

I wonder for how many years they must provide the affordable housing units? After the tax abatements expire, can those units become market-rate?

[Chris Stritzel]

If I’m reading that right, it seems that without an incentive, the unleveraged return is 7.3%, or 1% less than the return with the incentive. I believe this will complicate them getting incentives. But we’ll see. I just know the public scrutiny will be massive for this.

[im2kull]

The project would reserve 60 studios, ranging between 275 and 450 square feet, as affordable for renters earning up to 60% of the area's median family income (MFI), or $965 a month under city guidelines, according to SB Friedman.

I'm confused, is 60% of the areas MFI $965 a month, or is that what the rent would be for said studios?

[Chris Stritzel]

Project now on the DLR Group website...
https://www.dlrgroup.com/work/14th-wyan ... use-tower/

[TheUrbanRoo]

First incentives for this have been cleared. 17 year abatement.

The KCBJ also says that Hard Rock has had interest in the hotel for this property.

[bobthebiker]

17 years and 34 million in incentives. Seems like a large amount for a project that did not promise affordable units or bringing anything new to downtown.

I also feel like that this received almost no scrutiny vs the potential KCATA incentives for the project in waldo.

I'm definitely for there being one set of requirements for incentives that all orgs have to abide by because this project does not deserve it IMO.

[GRID]

First incentives for this have been cleared. 17 year abatement.

The KCBJ also says that Hard Rock has had interest in the hotel for this property.

Wow, I though this project would die on the vine quickly due to incentives needed. I didn't think it would sail through a tax abetment.

[langosta]

17 years and 34 million in incentives. Seems like a large amount for a project that did not promise affordable units or bringing anything new to downtown.

I also feel like that this received almost no scrutiny vs the potential KCATA incentives for the project in waldo.

I'm definitely for there being one set of requirements for incentives that all orgs have to abide by because this project does not deserve it IMO.

KC Biz Journal Article said this has 20% affordable. I think that is a similar if not smaller incentive amount vs. a Cordish projet despite this being double the size.

[bobthebiker]

17 years and 34 million in incentives. Seems like a large amount for a project that did not promise affordable units or bringing anything new to downtown.

I also feel like that this received almost no scrutiny vs the potential KCATA incentives for the project in waldo.

I'm definitely for there being one set of requirements for incentives that all orgs have to abide by because this project does not deserve it IMO.

KC Biz Journal Article said this has 20% affordable. I think that is a similar if not smaller incentive amount vs. a Cordish projet despite this being double the size.

I stand corrected. Thanks for clearing that up. Agree with Grid, am surprised it sailed through so easily.

[bspecht]

"He said Lux has seen interest from multiple hotel flags, including Kimpton, Hard Rock, JW Marriott and Virgin Hotels." (adding additional flags for search-ability)
https://www.bizjournals.com/kansascity/ ... hotel.html

TIF hearing rescheduled to 9/12.

[atticus23]

Of those flags, which one(s) would add the most bang for the city's buck (marketing, tourist choice, stay-cations for locals, etc...)?

[kcjak]

I feel like JW Marriott is the best for convention-related business but isn't 200 rooms a bit small for them compared to other cities? Kimpton and Virgin offer some higher end options that would do well in this market, I think. But bang for the buck I'd have to say a big tourist segment would support a Hard Rock Hotel more than the others, although personally I think they can be a bit trashy.

[langosta]

Of those flags, which one(s) would add the most bang for the city's buck (marketing, tourist choice, stay-cations for locals, etc...)?

All but Hard Rock probably fill a unique gap in the market. Hard Rock is a specialty brand so idk

[horizons82]

Without a letter expressing interest from the brand for a corporate-owned location, Lux could be fudging what's going on. That would explain the 200 room count.

All of the brands mentioned allow for franchised use.

If Lux is pursuing the operation, instead of the corporate hotelier, then it would follow that they will promote the luxury brands to get favorable coverage and political will. What's not said is that the lux brands are financially difficult to pencil out...Then, at the same time they're casually talking to Marriott about a JW, they could be moving more aggressively with an non-lux (but still nice) brand like Moxy or Delta, where a 200-room count could make more sense.

Then, if there's a sudden change and the JW pencils out at 200 rooms, great! Otherwise, they just come back later and give a hand-wave for why it's now a slightly less luxurious brand.