Marcia Charney, MWM Contributing Writer

Kansas City's vision for South Loop Park becomes reality

Work on a transformative project that's been envisioned for Kansas City for 30 years or more will begin early next year.

"The South Loop Project is building a cap over I-670, which has long been the disdain of many leaders in the region, from the federal and state highway system, city leaders, and even to business owners and residents in the area. So, we are going to create a tunnel that will create a cap, and we are going to put a park on top of that cap," said Ann Holliday, VP of strategic initiatives at Downtown Council of Kansas City.

Panelists Tirzah Gregory, VP and group director at HNTB Corporation; Mark Neibling, AIA, associate principal, architecture at BNIM; and Mario Vasquez, assistant city manager and city planning director at City of Kansas City, Missouri, joined Holliday at a lunch event last week hosted by CREW KC. Meredith Hoenes, director of communications at Port KC, moderated.

Port KC, the Downtown Council, and the City of Kansas City are partners in the project.

"This is the biggest reclamation project that we have going on in the city. We're creating something out of nothing. Something that's been sort of a chasm Downtown. We're putting something there," said Vasquez.

Vasquez addressed why it has taken so long to start this project since it was first proposed in the 1990s. Back then, he said, not much was happening Downtown, and it was a struggle to put things together.

"Today, Downtown is dynamic. It makes sense now to build this amenity that can continue the momentum that we have Downtown," Vasquez said.

The first phase of the project involves constructing a tunnel through which traffic will flow. This project presents many challenges.

"At the end of the day, we are dealing with an infrastructure that is almost 60 years old and all that has to be replaced," said Vasquez.

According to Gregory, constructing a structure over a highway is like remodeling or adding onto an old house.

"You've got existing infrastructure to deal with, including some of the bridges that cross over the highway . . . so you can imagine the complexity of having some of

the old systems work with the new systems. . . . The structure is going to be carrying some heavy loads. . . .  We have to build these foundations without impeding the right of way, making sure the highway stays at the same capacity that it is now," said Gregory.

One of the issues to solve is utilities. The Downtown area is riddled with utilities crossing every which direction, Gregory said.

"We are working with 15 different utility companies right now to coordinate. Some of them cross along Truman Road. Some of them cross over the highway. Some of them go under the highway, so that adds a lot complexity. They don't want any interruptions, of course, to the service that they provide," she said.

Another issue is drainage. The Downtown area slopes toward the planned park.

"A lot of the water coming across from Downtown goes at a low point across our park at Walnut Street. We have to make sure that we don't make anything worse," Gregory said.

There is a proposed rain garden to help collect some of the drainage, Hoenes said.

Above: Moderator Meredith Hoenes of Port KC next to the panelists at last week's CREW KC lunch event from left to right: Meredith Hoenes; Mario Vasquez; Ann Holliday, Tirzah Gregory; and Mark Neibling. Photo credit: Elizabeth (Liz) Wampler

The KC Streetcar is a consideration as well. The project must proceed with minimal impact on the streetcar service.

With respect to the tunnel itself, life safety systems will be crucial, including fire suppression, lighting, egress, ADA compliance and signage.

"That was kind of a new thing because we don't have tunnels around here," Gregory said.

Once the tunnel is complete, a park will be installed on top of it. OJB has been retained as the landscape architect.

Neibling said the park will feature a series of terraces "that are moments of art, areas of respite with this kind of welcoming approach from the west," and the buildings within the park will be responsive to the landscape.

According to Neibling, the design of buildings in the park will be focused on zero carbon. Plans include a food hall, a performance pavilion, a dog park and play areas.

"I look forward to when that space is so inviting and the whole community is down and enjoying it. They're sitting under these large trees. They're rolling in the grass. They're enjoying the environment in Downtown Kansas City," said Holliday.

The project will be a public-private partnership. According to Holliday, public monies to date include approximately $30 million in federal funds and $50 million in state funds. In addition, the City of Kansas City has committed $10 million and also is investigating a $65 million loan under the Transportation Infrastructure Finance and Innovation Act (TIFIA) and may apply for additional federal funds via grant projects. Approximately half of private sector funds' $50 million goal has been raised.

"We're talking to some other government entities in the area and working on some cost share arrangements with the Missouri Department of Transportation (MoDOT). . . . That's for funding for how we build it," Holliday said.

She said the city will own the park and plans to contract with a private, non-profit-based organization to manage it, similar to arrangements with the Kansas City Zoo & Aquarium and Starlight Theater.

"The goal then would be sponsorships, other philanthropy, revenue-generating opportunities within the park so that it would be self-funded for now and then capital endowments and things for maintenance in the future," Holliday said.

A general contractor has been selected, with details being finalized, and an announcement forthcoming next month, Vasquez said. Hoenes said the name of the project could be announced in January.

Vasquez said activity on the project will begin in the first quarter of 2025, and he expects to shut down I-670 mid-summer of 2025. He said the tunnel may be complete in 2027, but the contractor ultimately will address the timing issue. In addition, all construction activity in the public rights of way will cease on May 1, 2026, in preparation for the FIFA World Cup activities.

"So whatever work we can get done by that time is what's going to be done. Keep things open; diminish the disruption," Vasquez said.

"We're not going to hold a groundbreaking ceremony. We're going to hold a ground making ceremony, because that's what we're doing. We're making a whole new space," said Holliday.


Header image: A rendering of South Loop Park that will cap a four-block stretch of Interstate I-670 between downtown Kansas City and the Crossroads Arts District. Image credit: BNIM

Kansas City industrial experts tackle land scarcity, utility access and market opportunities

There may be a perception that land is scarce for industrial projects, but according to Morgan Mutert, director of business development and governmental affairs at Hunt Midwest, land is available. Still, it may not be development-ready to meet the tight timelines demanded by users.

Mutert, a panelist at MetroWire Media’s Kansas City Industrial Summit held last week, was joined by Michael Dustman, senior project manager at SCS Engineers; Kurt Jensen, SIOR, principal/industrial brokerage at Kessinger Hunter; Sam Stahnke, P.E., vice president at ARCO National Construction; and Sean Washatka, assistant vice president at Emery Sapp & Sons, Inc., to discuss the state of the industrial market and its challenges and opportunities. Joe Perry, vice president of real estate at Port KC, moderated.

“I think the users that we are seeing are really focused on speed to market. A lot of the projects that we’ve seen in the last year, two years, maybe even before that, when we receive the request, they want to be operational within 12 to 18 months, so they’re really looking for sites that check the box and that have the utilities and meet the labor force requirement. . . . Being able to meet their timeline is incredibly important,” Mutert said.

Mutert said projects used to be led by the availability of the labor force. While that remains a top requirement when users look for industrial sites, the availability of utilities is also vitally important.

“Utilities have become a big factor for any client right now. With some of the utilities, especially in Kansas City, having certain areas where they’re stretched as far as capacity is concerned, that becomes a big issue,” said Stahnke.

Jensen agreed that the availability of utilities is key to landing new industrial projects.

“I think utility nationally is really the conversation, and Kansas City, I think, can be well positioned to accommodate that. I think that as long as we can keep getting heavy power and the proper water to facilities, we’re going to see a lot of good activity in the next handful of years,” he said.

Mutert said if a site does not support the utility demand, it could add three years to the development timeline, which the project does not have.

According to Dustman, alternative power sources like solar could help solve utility shortages.

“We are putting solar on top of landfills. We are cleaning that solar and selling it back to the grid. . . . I think solar and utility usage is a big player, and we just need to find the sites,” Dustman said.

Above: Moderator Joe Perry of Port KC addresses the 2024 MWM Industrial Summit KC panelists at JCCC in Overland Park, Kan. Panelists from left to right: Sean Washakta, Kurt Jensen, Morgan Mutert, Sam Stahnke, and Michael Dustman. Photo credit: Jacia Phillips | Arch Photo KC

Another big factor in the site selection process for an industrial project is the availability of incentives, Mutert said.

Perry said that in the second quarter of 2024, there was a hyper-supply of industrial products with 2.3 million SF on the market in Kansas City. By the third quarter, that shrank to 700,000 SF.

Although industrial development projects have slowed down this year, Jensen said that has protected the Kansas City market from skyrocketing vacancies.

According to Jensen, demand from smaller operators in Kansas City remains strong.

“We’re starting to see a lot of clients who want to go to a building that’s just for them, so that becomes that 100,000, 150,000, maybe up to 300,000 SF building,” said Stahanke.

Perry said Kansas City currently has approximately 10.6 million SF under construction, with more than nine million of that being build to suit.

“It’s all preleased. So, we’re not really bringing a lot for next year. We just talked about 2.3 million SF hitting the market in Q2. Next year, we may only have 1 million SF for the whole year,” said Perry.

Reshoring nationally will be a big emphasis for the industrial market, especially in Kansas City, Jensen said.

Perry said in the last three years, manufacturing construction in the United States due to reshoring has nearly tripled from $100 billion in 2022 to just shy of $240 billion by the end of this year.

“We are genuinely just at the cusp [of reshoring]. We aren’t even prepared for what’s going to come in the next three, five, 10 years. So there’s a lot of opportunity out there, but also a lot of pressure to be able to deliver and make sure that we can reshore and bring things home. . . . I’m optimistic we’re headed toward a healthy 2025 where we’re going to see a lot of activity from reshoring, and a lot of build to suit activity will maintain that,” said Jensen.

Dustman said developers might look at repurposing existing buildings to create industrial space, citing a St. Louis client taking steps to convert an old 14-story health department building into a data center.

“The property sits at the juncture where the power comes in. . . . Maybe developers doing a little bit of utility research up front where those resources are already laid will expedite a little bit of timing,” he said.

Washatka said construction costs on industrial projects have not increased substantially in at least the last 12 months.

“I’ve got a feeling that 2025 is going to be about a flat year as far as growth in construction costs. So if lease rates are moving, it’s a good time to build, in my opinion,” Stahnke said.

Perry said that year over year, the industrial market is looking at an approximately five percent rent growth for the last quarter of this year.

“That’s pretty healthy,” said Perry.

New industrial projects create new jobs but can also result in a housing shortage. If there is increased residential construction activity in Kansas City and other markets, that could negatively impact available resources and drive


Header image: MWM Industrial Summit KC attendees listen in on discussions related to the Kansas City Industrial sector landscape. Image credit: Jacia Phillips | Arch Photo KC

Kansas City CRE experts eye opportunities in changing market

Kansas City CRE experts eye opportunities in changing market

Header image: Altitude 970, strategically located near the Kansas City International Airport and KCI 29 Logistics Park, is an example of the premier luxury apartment communities sprouting up around Kansas City to support the growing demand. Photo credit: BAM Capital

KC market embraces multifamily surges and retail shifts amid office and industrial slowdowns

KC market embraces multifamily surges and retail shifts amid office and industrial slowdowns

Header image: Rendering of new layout being planned for Kansas City's Country Club Plaza. Image credit: OMNIPLAN

KC bank leaders highlight growth and collaboration in CRE Market

KC bank leaders highlight growth and collaboration in CRE Market

Feature rendering of Emprise Bank’s new KC Banking Center, expected to be complete in October 2025. Rendering credit: Hermanos Design Build Studio