Developer Jon Copaken, a principal with 112 Redevelopers LLC, has seven years to begin construction on what could be the first new major downtown office building in years under an amended agreement reached Wednesday with the Tax Increment Financing Commission of Kansas City.
The property, which serves as a surface parking lot for Sprint Center employees and nearby office buildings, sits at the northeast corner of 13th Street and Grand Boulevard. It was part of an expansive tax increment financing district first passed by the Kansas City Council in 2004. TIF is a development incentive that redirects future taxes generated by a real estate project to reimburse developers for certain project costs.
TIF projects are supposed to begin work within 10 years after the district is established. The Kansas City Council activated Copaken’s project on April 21. On Wednesday, the TIF Commission amended its agreement with Copaken, giving the developer seven years to start construction on the building and 10 years to finish it.
The agreement calls for a 270,000-square-foot structure that can be office, hotel or residential space, along with a 1,300-space parking garage. Copaken says he plans to build office space.
Copaken said having agreements with the City Council and TIF Commission in hand makes the property easier to market to prospective office tenants, but noted that nothing is imminent.
Read more: Kansas City Star