Kansas City's new City Manager Wayne Cauthen talks a lot about synergy--the synergy the Urban Core needs to progress and the synergy it has already developed.

"I came to this city at the right time," Cauthen says. "There is a tremendous amount of activity right now. It's really a matter of connecting the dots."

Cauthen is right. Kansas City's Urban Core is seeing development that for years has been cited as most needed for the area's success. With major projects from the River Market to the Brush Creek Corridor, connecting the dots is an accurate description.

In September, 2003 $1.38 billion in investment was reported in the Downtown area alone. For the first time in three years, even the office market is showing signs of a rebound. And firms from across the country are joining local developers in making major investments.

Outside of the Downtown Loop, momentum is also strong. With nearly 10,000 workers scheduled to enter the Union Station/Crown Center area as part of two federal projects, prospects for further commercial development in that area are virtually certain. Likewise, Midtown and the Brush Creek Corridor continue a healthy combination of residential, commercial and public projects.

The scope of these developments is sometimes hidden by the area's sprawling geography. Kansas City's Urban Core stretches more than five miles between the River Market and Brush Creek. But the flurry of strategic projects and smaller, infill efforts indicate that connection is taking place.

Moving here from Denver, Cauthen sees another factor that tends to hide local accomplishment. "We're very cavalier about all of this, but it is being built," he noted. "Our Urban Core is large and you don't see a concentrated development. But we're talking about at least $1 billion in projects right now."

River Market

One of the most dramatic areas is the River Market. The smallest of Kansas City's Urban Core communities, its compact size helps focus development and showcases progress compared to larger areas.

The market itself is one reason. Slated for $1 million in infrastructure improvements next year, the River Market is already one of the Urban Core's most dynamic retail areas this side of the Country Club Plaza. Several developments promise to increase that. Commercial development such as the $48 million headquarters for HOK Architects at Fourth and Wyandotte con- tinue to match the area's extensive growth in residential redevelopment. An even larger potential step occurred in early October when Kansas City Southern began removing track in an abandoned rail yard northwest of the market. This development opens a potentially strategic, eight-acre tract overlooking the Missouri River, while increasing the aesthetic value of the entire area.

"That's a real opportunity," noted George Birt, whose BBL Real Estate Services has development rights in the area. "We maintain an interest in that because it really has potential." Similar prospects offer opportunity on 50 acres held by the Port Authority near Richard L. Berkley Park.

The park and nearby trail/green-way developments are important in themselves. Recent landscaping at Third and Grand has opened the park's main entryway and improved aesthetics near the market's least developed, northeast corner.

Downtown Loop

The Downtown Loop draws most of the Urban Core's public attention, criticism and concern. Although several major issues remain, the area is beginning to live up to its potential in several ways that may not be widely visible.

The biggest question marks involve entertainment and the Downtown arena concept, projects that obviously could have huge impact. The most that could be said on the record, however, was a promise by City Manager Wayne Cauthen that progress should be coming in the last quarter of this year or early 2004.

What is on the record is significant, however. The $100 million Bartle Hall Ballroom expansion and, just across the loop, the $300 million Performing Arts Center are major developments set for construction next year and in 2005. Other projects include the $200 million General Services Administration (GSA) Bolling Building Renovation set to begin next year and the recent, $48 million Commerce Bank Trust Building Renovation.

Several other inside-loop projects are under way. Renovation of First National Bank is the new home of the $50 million Kansas City Public Library and a nearby, $10 million parking garage are among several major ventures near 10th and Baltimore. Nearby on Broadway between sixth and 12th, the city next year plans three "streetscaping" projects totaling approx. $3 million.

An obvious factor was passage last year of the Missouri Downtown Economic Development Stimulus Act, but there are others. One of the most significant may be the increasing investment by outside organizations in Downtown Kansas City. The addition of these players and their money is significant in terms of the area's long-term prospects.

A dramatic example involves City Center Square. In October, this local landmark was under contract to New York-based Time Equities Inc., which already was involved in area loft development. At the time of this writing Time Equities Inc. was negotiating with owner Archon Group LLC of Dallas to buy both City Center Square and Jones Store properties. The two have not finalized a deal and a competing buyer has submitted a proposal, but the trend is significant.

"We are starting to see outside investment," Cauthen noted. "That can only help. We're getting on other's radar."

Phillip A. Gesue, Time Equities director of acquisitions, said Kansas City's Urban Core is simply a good investment. "It's nothing super technical," he said. "We came to see the Downtown and saw that it was attractive. The area has a solid local economy and there are a lot of incentives in place. It also helps that earlier developers have done some real quality work downtown. That sets the stage for the level of development."

Gesue noted that the area's burgeoning residential development will have an impact. "The key to the central business district, especially, is to get that 24-hour type of environment," he said. "What you really need is retail because retail is why people live Downtown. They don't move out of the suburbs to Downtown to be in the middle of nowhere. You want to have retail and nice entertainment." Time Equities' plan currently calls for use of the Jones Store property to create that kind of mix by adding to the area's retail offerings.

Other factors in the mix include formation of the Community Improve- ment District, and Greater Downtown Development Authority. These two public/private groups are focusing on everything from basic cleanup to development initiatives as ways to revitalize Downtown.

Crossroads and Crown Center

The Crossroads District may be the most significant in terms of potential. Cynics may retort this is simply a way of saying much work remains, but increasingly that potential is under development.

The $300 million Performing Arts Center and the nearby $23 million Kansas City Ballet's new Center for Dance and Creativity will provide a major impetus for development southward toward the Freight House District and Crown Center.

Several projects are under way in this area that could accelerate these infill efforts. The most dramatic are the Federal Reserve's new $175 million headquarters near 29th and Main that will keep its 1,100 workers in the greater Downtown boundary and the IRS/Post Office conversion.

The IRS effort is historic. When the entire $370 million redevelopment is completed in 2007, a five-block corner of Downtown will become a 1.14 million-square-foot federal office complex. The effort is expected to bring more than 6,000 workers to the area.

That project sits directly across Pershing from vacant space at the Union Station complex to the north. The potential retail demand has not been lost by developers, although no firm plans have been announced as yet.

Nearby, the 2555 Grand Avenue building has become home to Shook, Hardy & Bacon. The project includes more than 600,000 s.f. in office space. An enclosed walkway will connect it to other Crown Center buildings.

North of this area is one of the Urban Core's real jewels, the Freighthouse District. Well established with some of the area's finest restaurants, the area is also seeing additional residential development.

One boost will come when the Environmental Protection Agency demolishes a dangerous building in this District, a step that could come as early as next summer. Demolition of the so-called PCB building at 2100 Wyandotte St. should spur development in an otherwise showcase urban neighborhood.

Between this area and the fine arts developments is a four-block area. Although it remains one of the most under-developed in the Urban Core, this area between 15th and 18th Streets is seeing scattered residential and even retail progress.

Hospital Hill is also seeing significant construction with both Truman Medical Center and the nearby Western Missouri Mental Health Center completing major projects.

The 18th & Vine area is seeing development. Surrounded by several strong residential projects, the historic area has seen a net gain in retail businesses.

Midtown/Westport

Although much of the news is on the north and south extremes of the Urban Core, the Midtown and Westport areas continue to progress.

Though across the line in Kansas, the $72 million addition to the Kansas University Medical Center is signi-ficant for its impact on the nearby 39th street corridor, among other things. The 153,000-square-foot facility is scheduled for completion in June 2006.

The nearly $70 million Midtown Market continues to impact the areas as well. One key and rather unique aspect of the Midtown Plan is its housing component, where excess revenue generated from the project will be used to fund neighborhood improvements in the area.

Country Club Plaza & Brush Creek

Though hardly news, both the Country Club Plaza and the Brush Creek Corridor continue to develop as two of the area's major success stories. Several significant projects include Plaza Colonnade which will be home to Blackwell Sanders Peper Martin and the Plaza Library and the Nelson-Atkins Museum of Art improvements totaling more than $300 million. Rockhurst University has also undergone extensive campus improvements including a new baseball stadium. For the future, a new, $10 million replacement bridge over Brush Creek for Troost and continuation of corridor landscaping to the east are increasing the potential of several properties, including a large one-owner tract near 47th and Paseo.

Some surprises continue to occur. Park Lane Apartments is now planned as a "boutique" hotel. The historic building, located at 4600 J.C. Nichols Parkway, is under contract by the Raleigh, N.C., company Winston Hotels. Once a target for demolition, the building is now planned as the Marriott Courtyard Country Club Plaza Hotel with 127 rooms.

Critical Mass

With such widespread develop-ment, a few key projects could have dramatic impact on the Urban Core's prospects and perceptions. The area's supporters are hoping for a major announcement later this year but, even without a new arena or entertainment district, the broad surge of development appears to have achieved a momentum of its own. "We are reaching a critical mass," Cauthen said. "You look at these large projects and there's clearly a synergy developing. It's a very exciting time."