November Meeting

Successful Development

The November session of the Pillars Leadership Group transitioned into learning more about a flourishing model of economic stimulus: The Village West development in Wyandotte County. This followed the October session, which reminded us that not all attempts at development are so successful. The group quickly learned of the environment and people involved in creating success. A development of this size requires an ideal location, financial and legislative support from local and state governments, and a big idea.

As members of the architectural, engineering, and construction community, most of us have had little exposure to the front end of the development & building process. Our hosts did a wonderful job of explaining how a project becomes viable. The group learned how the Kansas City Area Development Council recruits business to the Metro area. A project the size of the Village West development also requires much political support. And while the project faced much opposition, it took vision and courage for the area’s leaders.

The financial side of the Village West development was one of many engaging topics during the afternoon. A variety of public financing methods were explained. The presence of sales tax and revenue bonds were key to the fruition of this particular development. Commitment from other large retailers and attractions helped ensure the required traffic flow for the project’s success. The project’s pro forma, a plan to achieve financial success, was another detailed and captivating topic. Marketing strategies to attract tenants, tenant allowances, and lease terms and rates were just a few of the many additional topics of interest.

The final portion of the afternoon reminded us that we “can’t get away from ‘us’ lawyers”! The legal challenges that any new project presents are quite complex. The many vehicles of public funding were explained. We all gained an understanding of why projects receive support and how the funding is used. Pillars closed out the afternoon by experiencing the product firsthand with some fun and games.