9 January, 2008

It has been revealed that the controversial Citadel Plaza redevelopment plan ended 2008 without a $20.5 million cash advance from the city, and backers stated that the postpone won't assist the reliability of the plan.

Whereas the Kansas City Council sanctioned a revised plan that comprised the $20.5 million, it connected a vital qualifier. Community Development Corp. of Kansas City, the developer of the proposed retail center at 63rd Street and Prospect Avenue, had to discover a suitable co-developer prior to releasing funds.

According to David Frantze, the attorney representing CDC-KC, talked with potential co-developer candidates were under way, but no agreements have been accomplished. He added any agreement will have to be taken by the Tax Increment Financing Commission before going to the council for contemplation.

"When that need was taken place, we knew it wasn't going to accomplish this year," Frantze said. "We have to keep encouraging people out there that this project is true."

RED Development has uttered an interest in being an advisor for CDC-KC, but officials indicate the firm would not have a monetary stake in the project.

At the time the council was considering the proposal, Councilman Terry Riley pointed out that the cash advance had to be released soon, without delay that would "severely affect this project."

Riley reported that he had a grocer interested in participating in the development. Frantze also said a hold up could affect contracts to derive properties on the 35-acre site.

He added "We have to wait until everything takes place well." The delay could cost more for land acquisition and some other things.

The $90.1 million Citadel Plaza project calls for 307,324 square feet of retail space anchored by a supermarket. It would need $43.7 million in tax-increment cash advance assistance from the city.

However, the plan formerly called for the city to issue a $20.5 million bond for the first phase, which comprises land acquisition and site clearance, but the national monetary crunch has damaged the municipal bond market. In addition, the developer then asked for the $20.5 million cash advance from the city and would pay off when the bond market enhanced.