TIF panel OKs Hawthorn Plaza apartment renovation

Posted by Kansas RealEstateRama

October 15, 2007

A $26 million plan that would renovate the dilapidated Hawthorn Plaza apartments in midtown and demolish an adjoining adult novelty store was endorsed by a city agency Wednesday.

Developer Howard Fischer has strong support from the neighborhood in his effort to redevelop what has been a shabby, 164-unit low-income residential building at 3835 Main St. into a 56-unit apartment building for mixed-income residents.

“My thought is you can’t keep doing the same thing and expect a different result,” said Fischer, CEO of the apartment owner, Distinct Properties KC LLC. “That’s why I’m trying a mixed-use and mixed-income approach.”

More than 20 people wearing “Support Hawthorn” stickers attended the meeting of the Kansas City Tax Increment Financing Commission to back the proposal. Part of the financing plan calls for using $1.4 million in TIF assistance to obtain the Naughty but Nice adult store property at 3821 Main St.

The store would be demolished to allow construction of a 94-space garage to serve the redeveloped Hawthorn Plaza. The plan also calls for a restaurant, bar and other commercial uses for the first level of the Hawthorn Plaza and the garage.

Besides the TIF assistance, the plan calls for the use of Chapter 353 property tax abatements, historic tax credits and other tax credits. The developer plans to seek approval for the property tax abatement, 100 percent for 10 years, 50 percent for 15 years, from the Planned Industrial Expansion Authority.

The tax credits and other incentives being requested for the project total about $14.1 million. The rest of the funding would come from private sources. Rents would be from $769 to $1,600 per month, with units ranging in size from 700 to 1,600 square feet. If the proposal is successful, the developers would like to begin construction in January, with completion expected in 2009.

Other business
•The Three Trails redevelopment plan, which includes the demolition of Bannister Mall and construction of a new soccer stadium, was delayed for consideration until Nov. 7 at the request of the developer.•The commission welcomed two new members appointed by Mayor Mark Funkhouser — Margaret May and Claudia Oñate Greim. New officers also were chosen by the commissioners. Ron Yaffe was elected chairman, and Chester Wittwer was elected vice chairman.

To reach Kevin Collison, call 816-234-4289 or send e-mail to kcollison@kcstar.com, The Kansas City Star

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