Citadel Plaza gets $20 million advance from taxpayers
By Carolyn Szczepanski in Follow That Story
Fri., Dec. 19 2008 @ 10:43AM
CDC-KC President William Threatt
Two weeks ago, the Citadel Plaza development looked like it might never break ground at 63rd Street and Prospect Avenue.
Kansas City, Missouri, City Council members were angry and frustrated with the behavior of the project's manager, the Community Development Corporation of Kansas City. They were shocked that the CDC-KC would ask for a $20 million advance from taxpayers when the city is staring down a budget crisis.
Well, never mind the City Council's tough talk about protecting public dollars. Disregard the decade of miscommunication and environmental contamination to which the CDC-KC has subjected neighbors adjacent to the proposed $90 million shopping center. Look past the CDC-KC's nonpayment of property taxes and ongoing legal troubles.
Yesterday, the City Council approved a big advance for the embattled development.
As part of its financial agreement with the CDC-KC, the city originally agreed to sell more than $40 million in bonds to get the weed- and debris-strewn lot moving toward vertical construction. But then the bond market tanked and the CDC insisted that, to keep the project viable and to attract key land tenants, it needed money now. To win over skeptical council members, the CDC-KC agreed to partner with RED Development, the company behind the Legends in western Wyandotte County. RED spokesman Dave Claflin says the partnership will basically consist of the CDC paying RED as a consultant. "We've never done an urban core project like that and don't want to participate financially, but we are willing to consult with them and help them move along," Claflin says.
Apparently that was enough reassurance for the City Council. Yesterday, the council unanimously approved the $20 million advance.
CDC-KC President William Threatt wasn't there, but I called him earlier in the day. He wasn't interested in answering any questions.
"We are happy," he said curtly. Then he hung up. -- Carolyn Szczepanski
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