Kansas City News Blog

Kansas City Life Insurance Co. says it's been wrongly denied the opportunity to buy a former school near its midtown headquarters.

In a lawsuit filed against the Kansas City, Missouri, School District last month, Kansas City Life says it bid $1.425 million for the Norman Center School at 35th and Jefferson only to lose out to a condo developer who bid $5,000 less.

In 2007, the district hired Block & Co. realtors to market and sell some of its unneeded buildings. The suit states that the Norman Center School was offered at auction on November 6, with Kansas City Life submitting the highest bid. Kansas City Life says the school district and its real-estate arm then created a political process for awarding the contract.

According to the suit, the district supplied condo developer Del Hedgepath, who had also bid for the building, with additional criteria. Suddenly, the building's neighbors were involved, and public presentations were made.

Kansas City Life says it was not informed of the new criteria. On or about December 1, the school district awarded the contract to Hedgepath.

The insurance company wants the court to nullify the contract with Hedgepath and honor its "most economically advantageous bid."

The school district did not respond to a request for comment. In an answer to Kansas City Life's petition, the district says it used its discretion in accepting Hedgepath's "insignificantly lower" offer. Block notified prospective buyers that the district reserved the right to accept or reject offers made during the "auction-type process," the district says.

A call to Hedgepath was not immediately returned. -- David Martin