Is the Streetcar Extension bringing new development as promised?

[Jblanco]

Is the Streetcar Extension bringing new development as promised?

Has anyone created a development map along the line showing what's planned with the # of residential units and $$ totals to evaluate? I'm very disappointed so far. What do others think?

[im2kull]

Is the Streetcar Extension bringing new development as promised?

Has anyone created a development map along the line showing what's planned with the # of residential units and $$ totals to evaluate? I'm very disappointed so far. What do others think?

There has been no shortage of proposals. The only thing preventing them from moving forward is the City Council, KC Tenants, Kathleen Pointer and folks serving on any interested economic board who would rather "kick the can down the road" than incur criticism from KCT, KCPS, etc.

[Midtownkid]

I'm feeling disappointed as well. I didn't think the Streetcar was a silver bullet necessarily, but I did think we would see a lot more proposals and construction by now.

I'd guess it has to do with lack of available incentives, KC-Tenants sabotage, KCMO's new strict environmental regulations, developer frustration with the city's process in general, and the looming WWIII.

Maybe things will pick up after the line is completed? If I remember correctly, a lot of those crossroads projects that popped up along Main didn't come about until after the line was open.

Right now these are the real developments that I can think of:

- Katz
- 31st and Main (former hospital)
- ABC storage and the Louis Curtiss building next door near Linwood.

Is that it??

[grovester]

Interest rates, elevated construction costs, and yes, they want construction finished first.

[beautyfromashes]

Interest rates, elevated construction costs, and yes, they want construction finished first.

They want construction completed even before proposals? At this point I’d say most all construction will be completed by the end of the summer. Get your proposals in now to be ready for shovels in six months.

[grovester]

Interest rates, elevated construction costs, and yes, they want construction finished first.

They want construction completed even before proposals? At this point I’d say most all construction will be completed by the end of the summer. Get your proposals in now to be ready for shovels in six months.

Every month they wait, the costs go down.

Don't get me wrong, all the other things play into it as well.

Who's got time to go into the way back machine and see what had been proposed on the starter line prior to completion?

[brewcrew1000]

I just don't understand why the streetcar is taking so long to build? I know you have to move utilities and things like that, it still seems like a horribly long project, i feel like you could easily get a block done per week but its more like a block per month at best.

People in midtown are growing frustrated with the streetcar and some are questioning if its even worth building. I really think that will have an effect on future phases in getting built.

[moderne]

The construction has not been and will not be block by block. The rails were put in between major intersections first, and now they are going back from the north putting the rails in crossing the intersections, seemingly prolonging the mess. I feel that there will be much more new development once the line is up. Many can not see anything now but the mess, and a street and area to avoid.

[bspecht]

Has anyone created a development map along the line showing what's planned with the # of residential units and $$ totals to evaluate?

Right now these are the real developments that I can think of:

- Katz
- 31st and Main (former hospital)
- ABC storage and the Louis Curtiss building next door near Linwood.

Is that it??

3435 Main, 51 Brookside & Netherland/Monarch renovations were likely influenced.

Not on Main, but very close – Westport High renovation almost complete, Midtown Plaza phase 2 getting going.

You can play around with this map, I have done some updates lately (tho likely missing some I haven't backfilled + more details to be added): https://www.google.com/maps/d/u/0/edit? ... 44878&z=14

[GRID]

I just don't understand why the streetcar is taking so long to build? I know you have to move utilities and things like that, it still seems like a horribly long project, i feel like you could easily get a block done per week but its more like a block per month at best.

People in midtown are growing frustrated with the streetcar and some are questioning if its even worth building. I really think that will have an effect on future phases in getting built.

Because of all the utilities relocations/rebuilds, the extension was a VERY intrusive construction project. I have always said that with the amount of down time Main Street will have and how invasive the construction will be (vs just laying tracks along the curb), it's a shame this was not built in a center running dedicated right of way. Most of the cost of the line is probably just getting Main St ready to accommodate tracks. The final product could have been full blown LRT ready in a dedicated right of way for very little extra work and inconvenience.

And I have said many times that I'm disappointed in the lack of new projects. The extension is producing almost no development along the route. Of course I'm called a hater for saying it. But others can say it, which is fine. At least people will talk about it.

I really think when that huge Mac project died, it killed the momentum. That would have been a total game changer for midtown and would have kicked off more projects along the route. It would have told developers that KCMO is ready and willing to help and work with developers to get projects approved and UC as quickly as possible. Instead the opposite happened and it seems like most developers that were building in urban KC are now focused on suburban developments.

I really thought the streetcar would open along side several new transit oriented developments at key intersections and nothing has even been proposed. Most of the higher profile lots are still for sale as far as I have seen. That's the scary part. I mean there is barely anything even in the pipeline which means any new projects are probably many years from even starting construction.

It honestly seems like development in KC is shifting back to the suburbs again. How is KCMO going to build out the riverfront, the EV around stadium, all the remaining empty lots around the P&L District and south of 670 and along Main in midtown when there is like two or three five over ones UC currently and few in the pipeline.

KCMO government really needs to look at what is going on and address it before it loses years of construction activity. And you can't blame it on interest rates. There have been quite a few apartment projects announced and broken ground in WyCo, JoCo, Northland and Jackson County suburbs in the past year.

[Metro]

I just don't understand why the streetcar is taking so long to build? I know you have to move utilities and things like that, it still seems like a horribly long project, i feel like you could easily get a block done per week but its more like a block per month at best.

People in midtown are growing frustrated with the streetcar and some are questioning if its even worth building. I really think that will have an effect on future phases in getting built.

Because of all the utilities relocations/rebuilds, the extension was a VERY intrusive construction project. I have always said that with the amount of down time Main Street will have and how invasive the construction will be (vs just laying tracks along the curb), it's a shame this was not built in a center running dedicated right of way. Most of the cost of the line is probably just getting Main St ready to accommodate tracks. The final product could have been full blown LRT ready in a dedicated right of way for very little extra work and inconvenience.

And I have said many times that I'm disappointed in the lack of new projects. The extension is producing almost no development along the route. Of course I'm called a hater for saying it. But others can say it, which is fine. At least people will talk about it.

I really think when that huge Mac project died, it killed the momentum. That would have been a total game changer for midtown and would have kicked off more projects along the route. It would have told developers that KCMO is ready and willing to help and work with developers to get projects approved and UC as quickly as possible. Instead the opposite happened and it seems like most developers that were building in urban KC are now focused on suburban developments.

I really thought the streetcar would open along side several new transit oriented developments at key intersections and nothing has even been proposed. Most of the higher profile lots are still for sale as far as I have seen. That's the scary part. I mean there is barely anything even in the pipeline which means any new projects are probably many years from even starting construction.

It honestly seems like development in KC is shifting back to the suburbs again. How is KCMO going to build out the riverfront, the EV around stadium, all the remaining empty lots around the P&L District and south of 670 and along Main in midtown when there is like two or three five over ones UC currently and few in the pipeline.

KCMO government really needs to look at what is going on and address it before it loses years of construction activity. And you can't blame it on interest rates. There have been quite a few apartment projects announced and broken ground in WyCo, JoCo, Northland and Jackson County suburbs in the past year.

Thank KC Tennants and losers like Eric Bunch

[TheLastGentleman]

Maybe if we didn't insist on shoving traffic through construction sites, things might be able to a bit faster

[CrossroadsUrbanApts]

I think a few things are going on with the relative paucity of proposals along the streetcar extension:

1) The last 18 months in commercial real estate have been rough with very high construction costs and high interest rates. Investor equity is sitting on the sidelines while everyone waits for more clarity on the future path of interest rates (and construction costs). Construction costs have at least flattened out - but aren't likely to actually decline, especially with so much industrial and civic infrastructure being built (data centers, Panasonic plant, etc.) so many contractors are still as busy as ever. Interest rates might start declining as soon as March but the Fed is being cagey about how soon to expect reductions. Making anything pencil at 8.5% construction loan rates and 6.0+% exit caps doesn't work at the moment. There were some troubled projects that hit the market in 2023 and sold for rock bottom prices (the Westley) or didn't sell at all (2nd and Delaware, Flash Cube). So when something like the Westley sells at $215,000 per apartment, and a new construction project costs $350,000 per apartment, that is going to put a damper on new proposals.

2) Tax incentives aren't worth what they used to be. I've made no secret at my disappointment at how tax abatements are no longer worth the cost. The affordable set aside and stealth increases to MBE/WBE participation goals have more than wiped out the value of the abatement to projects. So KC Tenants has been successful in neutering tax incentives west of Troost. My first two apartment development projects in the Crossroads were successful because of (1) excitement around the streetcar and (2) the value of an LCRA tax abatement in helping investor returns in the all-important early years of a development project. I would have thought the new council would have tackled a substantial reform of the tax incentive process by now and am disappointed that it hasn't gotten more attention. I don't think it is any secret that the affordable set aside requirement has been a failure but there doesn't seem to be enough political momentum to fix it.

3) The streetcar extension is quite a bit longer than the original starter line. So new projects are going to be more spread out. And the Berkeley Riverfront and West Bottoms are also taking some of the investment dollars that might have otherwise gone to Midtown. The streetcar will certainly be a catalyst to development along its route, I just think it is going to take a lot longer due to the factors above. Good news is that KC is getting more attention because it is too expensive to build anything on the coasts and the Sun Belt got overbuilt in the last few years.

[im2kull]

Thank KC Tennants and losers like Eric Bunch

This is literally the sole reason. It's incredible that everyone keeps grasping for straws when this is right in front of their face. There's only one reason the giant Mac proposal didn't go, along with others. I have a spreadsheet keeping track and KC tenants has rampaged against 3+ billion dollars of development so far. Thousands of units of housing.

No developer in the right mind is going to develop where it's hard to develop. They will simply go where it's easier.

[CrossroadsUrbanApts]

Hah, I write a long post about the multiple factors impacting development and investment along the streetcar, but nope, it's all Eric Bunch's and KC Tenants' fault.

[bspecht]

Hah, I write a long post about the multiple factors impacting development and investment along the streetcar, but nope, it's all Eric Bunch's and KC Tenants' fault.

Classic rag, thanks for the post & full developer perspective. If the forum had post "likes" (I wish) I'm sure yours would have the most in the thread.

[im2kull]

Hah, I write a long post about the multiple factors impacting development and investment along the streetcar, but nope, it's all Eric Bunch's and KC Tenants' fault.

You're misunderstanding what we're saying. You're viewing it from the standpoint of "Why have no developments been proposed and taken off? It must be financing, economic conditions, etc.."

We're pointing out that there *have* been developments proposed, which progressed despite those other factors, only to be shot down at various meetings *by the city* and *taxing authorities* due to KCT and Bunch. They are the the *sole* reasons that *those* developments did not proceed.


Wasn't there a recent article pointing out the fact that there has been *zero* units of affordable housing created as part of the (failed) affordable housing set aside? Didn't Lucas or someone else even acknowledge that failure?

[dukuboy1]

Higher interest rates, making financing tougher. Inflation running up costs for everything, labor, materials, etc. Kansas City overall shifting from a very pro-development/developer friendly administration to one that is much more interested in pandering to a special interest group (KC Tenants) that on the surface appears to be looking out for the little guy and has views that are positive for residents but lacks any leadership & viable ideas to be anything but be obstructive, thus hurting development & the very residents they set out to help by removing potential housing from the market landscape.

There is a reason why there are record low building permits for housing, and other developments. It all goes back to the policies this crew enacted and now they are reaping what they have sown, which is NOTHING. Great job team you hurt the people you wanted to help and have set the city back years. Here's to hoping there will be some leaders who are not afraid to tell these groups to get bent & actually try to make real solid, middle ground policies that can be the best win/win for residents and developers. When you go 100% to either extreme everyone loses. Need to get back to the center to make it work. Fingers crossed there are some people in power with enough sense to know this and make it happen.

[CrossroadsUrbanApts]

Hah, I write a long post about the multiple factors impacting development and investment along the streetcar, but nope, it's all Eric Bunch's and KC Tenants' fault.

You're misunderstanding what we're saying. You're viewing it from the standpoint of "Why have no developments been proposed and taken off? It must be financing, economic conditions, etc.."

We're pointing out that there *have* been developments proposed, which progressed despite those other factors, only to be shot down at various meetings *by the city* and *taxing authorities* due to KCT and Bunch. They are the the *sole* reasons that *those* developments did not proceed.


Wasn't there a recent article pointing out the fact that there has been *zero* units of affordable housing created as part of the (failed) affordable housing set aside? Didn't Lucas or someone else even acknowledge that failure?

Fair enough, and apologies for the snark. I admit to being a little skeptical that some of the developments you mentioned would be moving forward right now if it wasn't for the opposition you mentioned. The multifamily development landscape declined so fast from mid-2022 to end-2023 that I doubt MAC would have been able to start by now at Armour & Main even if they had gotten everything they asked for. There are still projects with pre-2020 incentives that haven't broken ground (EPC at 3rd and Grand, for example).

But to your point, I would prefer a world where electeds and city staff are looking for ways to say "yes" to development rather than trying to soak them for unrealistic community "benefits". I don't know how long it will take Council to do something about the incentive process that is so clearly broken, but precious time is wasting if anything wants to get done by World Cup. I thought a second term Q would be less willing to pander to the NIMBYS (left and right) but seems he is content just to stay out of controversy rather than have actual achievements.

[GRID]

I think everybody knows about the cost of materials and interest rates. But development in urban KCMO has literally ground to a halt. That has not happened everywhere, not even in the rest of metro KC as projects are still moving forward in the suburbs.

Even though at a slightly slower pace vs previous years they are also moving for here in urban DC and Baltimore and in other cities across the country where I follow development. And there continue to be projects announced and started in overbuilt cities as well.

Urban KCMO was doing really well there for a while. To see it nearly grind to a halt and in doing so, watch several projects die on the vine, like the Mac project on Main should have been a huge wake up call. Now there is almost no activity. I mean there should still be developers working to acquire property and get projects through some of the city approvals process and near shovel ready and that's not happening. If anything, developers are putting properties back on the market and walking away from KCMO and on to easier and less risky projects. And few seem interested in the properties that developers are walking away from.

I would agree with CrossroadsUrbanApts post, but much more emphasis should be put on part 2 of their post. Whatever KCMO has done here is going to cost years of construction activity in the city. It's like KCMO has run into another Funkhouser speedbump. Why KCMO seems to hit such speedbumps every few years I have no idea. The city (and voters) like to shoot themselves in the foot every time development in urban KCMO starts to gain any sort of momentum and shut it down for a few years. It's always been that way.