Andrews McMeel plan for move downtown backed by KC Council committee

Oct. 4--The Andrews McMeel Universal downtown headquarters plan sailed through a Kansas City Council committee on Wednesday, the first major project reviewed under the city's new incentive policy.

The $19.6 million project slated for the historic Boley Clothing Co. building at 12th and Walnut

"It's going to pass, I've heard no negative comments," said Deb Hermann, committee chairwoman. "Andrews McMeel is somebody we should be proud of having in downtown Kansas City. They're a unique business."

The publisher of such comics as "Doonesbury" and "Calvin and Hobbs" plans to move from the Country Club Plaza area to the six-story Boley building by next October, the centennial of the building. The deal is being viewed as an ideal marriage, preserving a historic building by bringing 200 employees from one of the city's more creative firms to the heart of downtown.

An additional 30 jobs are expected to be created during the 23-year duration of the TIF plan.

"Their employees are prototype Power & Light District customers and will add street life to downtown," said Bill Dietrich, president of the Downtown Council.

The project was also a test case of the new tax-incentive policy adopted by the council last month at the request of Mayor Mark Funkhouser. A mayoral task force toiled through much of the summer to gather recommendations for reforming how the city uses incentives to encourage development.

Although Andrews McMeel's interest in coming downtown first surfaced in January, the company did not submit its application for incentives until June. The timing coincided with the city review and left uncertainty as to how the project would be received by the new mayor and council.

City staff decided the project met enough of the guidelines established by the new policy, including retaining jobs, enhancing downtown, strengthening the economy and providing opportunities for youth. Andrews McMeel will provide internship opportunities to Kansas City School District students as part of the arrangement.

The plan also contains financial penalties should Andrews McMeel fail to achieve the employment goals in its plan.

"We are very excited to have this hurdle behind us," said Hugh Andrews, company president and chief executive.

Among the new procedures is a fact sheet that explains projects in a more consistent fashion. It includes a breakdown of the project cost, a cost-benefit model to the various governing subdivisions, an analysis of the public and private investment, and the rate of return or profit to the developer.

The project is expected to yield a 7 percent rate of return with the TIF assistance, more than the 4.8 percent return without.

The $19.6 million budget includes $5.1 million to acquire the building from its owner, Copaken, White & Blitt, and $9.3 million in hard construction costs. The equipment costs $2 million, and soft costs including architectural fees to Helix Architecture + Design, are $3.2 million.

The project calls for the renovation of the 58,000-square-foot Boley building and extending one floor into the former third-floor food court of the adjoining Town Pavilion office tower. Andrews McMeel will lease the 25,271 square feet in the Town Pavilion from Copaken, White & Blitt.

To reach Kevin Collision, call 816-234-4289 or send e-mail to kcollison@kcstar.com

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