PQ Corp. Invests $120M in Kansas City Plant Expansion

By Gabriel Circiog, Associate Editor

PQ Corp. recently announced plans to invest $120 million in the expansion of its chemical plant in Kansas City, Kansas. The expansion would add between 40 and 50 jobs to the 100 existing jobs.

The Kansas City Star reports the Pennsylvania-based company held a ceremonial groundbreaking with Governor Sam Brownback and other state and local officials in attendance. Design and engineering work has already started at the plant located at 1700 Kansas Avenue. Construction is expected to be completed by the end of 2014.

PQ Corp. has several other manufacturing plants across the country but said it chose the one in Kansas City, for expansion due to its dedicated workforce, existing infrastructure and the strong backing it has received from the state. The investment demonstrates the company’s commitment to Kansas, Wyandotte County and the Kansas City area.

Business incentives for hiring additional employees and sales tax incentives for capital construction purchases to be used in the expansion were received as economic development aid from the state. The State and local governments will also offer around $25 million to the company in grants, loans and training costs. State officials said they expect to recover their investment in the next two years.

Based in Malvern, Pennsylvania, PQ Corp. produces inorganic specialty chemicals and engineered glass materials.

In other local real estate news, The Kansas City Star reports a record $115 million in construction activity was reported in April by Overland Park city officials. Around two-thirds of the total was due to a significant increase in residential construction activity with $59 million in apartment construction and $17 million in single-family housing.

Logo Courtesy of: www.pqcorp.com

Lenexa City Council Approves $64M Luxury Apartment Development for City Center

By Gabriel Circiog, Associate Editor

A new luxury apartment project has been approved by the Lenexa City Council for the City Center mixed-use development.

The Kansas City Star reports the $64 million development project, which was previously turned down after a 5-to-3 vote from the planning commission, will go ahead as the Lenexa City Council decided against the recommendation of its planning commission. The commission initially rejected the proposal due to concerns regarding its density and the effect it will have on traffic.

The project, dubbed as the Residences at City Center, will feature a total of 306 units in the first phase, out of which 168 will be one-bedroom apartments and 138 will be two-bedroom units, in four- and five-story buildings. Located on a 28-acre site northeast of 87th Street Parkway and Renner Boulevard, the development is being built by Block Real Estate Services. With an additional 246 units planned for the second phase, the project will end up delivering a total of 552 units targeting young professionals and empty-nesters. The new apartment project will also include covered parking, outdoor fireplaces, elevator access and a center green space.

According to the newspaper, the city community development director, Beccy Yocham, said the council considered the project will fit with the strategic plan for City Center. She also mentioned that the city planning staff recommended its approval.

The City Center project has made significant progress recently after Perceptive Software moved its headquarters there from Shawnee last year. Lenexa approved $11 million in tax increment financing for the $50 million headquarters development and up to 1,000 employees are expected to work there upon completion of the building. Other recent activity at the City Center includes the leasing of office space by B.E. Smith in a four-story existing building. Grand Street Café also announced it was opening on the first floor. Another 20,000-square-foot office and retail building is also planned along with a major civic center which will include a recreation and fitness center as well as an auditorium.

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Rendering Courtesy of: www.lenexacitycenter.com

Gladstone Announce $28M Mixed-Use Project to be Developed by Flaherty & Collins

By Gabriel Circiog, Associate Editor

Gladstone officials have announced plans for a $28 million apartment-retail project in downtown Gladstone. The project is set to be developed and managed by Indianapolis-based Flaherty & Collins Properties, The Kansas City Star reports. The development will include 222 market-rate apartments, 10,000 square feet of retail space and a 272-space interior surface parking lot.

The apartment development, dubbed the Heights at Linden Square, is part of a plan undertaken by Gladstone officials to build a new city center in the area which already includes a two-story office building. The office buildings are set to open in June, and will include the North Kansas City Schools Natatorium and the Gladstone Community Center. The apartment project’s site is located at the southeast corner of North Locust Street and Northeast 70th Street, an area referred to by local officials as Linden Square.

Around 50 percent of the apartments at the Heights at Linden Square will be one-bedrooms; 26 percent two-bedrooms; 5 percent studio units; and the balance will be two-level, two-bedroom units which will also include attached garages.

The mayor said a Chapter 100 incentive, with a 25-year property tax abatement on the project, is being provided to the developer. The city will issue bonds to finance the development, which will be repaid by the developer. The developer will also invest around $3 million in infrastructure works for the apartment project, including streets and sewers improvement. Construction is scheduled to start in the summer, and the first apartments are expected to be finalized and ready for occupancy in 2014.

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Rendering Courtesy of: www.flahertycollins.com

Olathe’s Mayor Announces Plans for New $51M Embassy Suites Hotel and Conference Center

By Gabriel Circiog, Associate Editor

Olathe’s Mayor Michael Copeland announced, at his State of the City Address at the Holiday Inn Olathe Hotel, plans for a new $51 million Embassy Suites Hotel and Conference Center.

The Kansas City Business Journal reports the Olathe City Council is set to vote on a preliminary development plan with developer Heart of America Group. The Moline, IL-based developer came up with the plan shortly after the Olathe City Council terminated a development agreement with John Q. Hammonds Hotels due to the fact that their affiliate, JQH-Olathe Development LLC, informed city officials it could not obtain financing for the project.

Located in the Corporate Ridge Office Park, at the southeast corner of Kansas Highway 10 and Ridgeview Road, the Olathe Embassy Suites Hotel and Conference Center could be up to 10 stories tall, according to the proposed pre-development agreement. The proposed 200-room, 175,000-square-foot hotel will feature a swimming pool and fitness center, a high-end restaurant and lounge, as well as a business center. The development also plans to include a 22,000-square-foot conference center with a seating capacity of between 750 and 1,000 people in the main ballroom.

An estimated $19.6 million or 38.4 percent of total project costs in tax increment financing and community improvement district revenue would be redirected to the project. The proposed TIF plan could redirect incremental property taxes, 100 percent of the City’s 1 percent sales taxes and 100 percent of transient guest taxes. The reimbursement would occur on a pay-as-you-go basis semi-annually, after payment of specials. A CID would raise sales taxes 2 percent in the district boundaries and the city would issue up to $12 million GO CID special assessment revenue bonds. The City could also issue industrial revenue bonds to permit sales tax exemption on building materials and equipment purchases.

If the proposed development calendar is approved, the Embassy Suites Hotel and Conference Center could open within two years of construction start.

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Photo of Holiday Inn Olathe Hotel Courtesy of: www.ichotelsgroup.com

UMKC to Add First Student Housing to Hospital Hill Campus

By Gabriel Circiog, Associate Editor

The first student housing project for the Hospital Hill Campus was recently green lighted by The Board of Curators of the University Missouri System. The panel voted to allow the University of Missouri-Kansas City to issue bonds and request proposals from developers.

Located near the intersection of 25th and Holmes streets, the Hospital Hill Campus includes UMKC’s Schools of Dentistry, Medicine, Nursing and Pharmacy. UMKC Chancellor Leo E. Morton said in a press release that student housing near the Hospital Hill campus would help the university’s efforts to grow enrollment in its health professions schools as well as boost other life-science-related activities in the area.

“About 3,000 students are in our Schools of Dentistry, Medicine, Nursing and Pharmacy, and we need to grow that enrollment to help meet the growing need for healthcare workers,” Morton said. “Already there are more healthcare jobs than there are qualified people to fill them, and that deficit will grow. We know that 60 percent of our graduates stay in the metro area to practice, so this project will help us attract and retain top talent for the benefit of the region.”

The housing project calls for around 245 beds in an apartment-style design. The development also plans to include a dedicated parking structure which would feature 196 parking spaces. Developers have until March 5 to submit their proposals, according to Bob Simmons, UMKC associate vice chancellor of facilities. The student housing facility is expected to be LEED certified. The addition of student housing is expected to aid in the redevelopment of the surrounding neighborhoods. City leaders also expect it to attract numerous stores and restaurants which would give UMKC students a more diverse campus experience.

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Logo Courtesy of: www.umkc.edu