Reinvesting in the Urban Core

by Sean O'Byrne

Some people have looked at downtown and said all the best deals have been picked over and there are no new opportunities for reinvestment. For every successful venture downtown, a new opportunity is

created.

If you asked any number of local residents if they felt that over the past 40 years downtown Kansas City had hit bottom they would probably say yes. Yet, if you were to compare our central business district to Detroit or Philadelphia during that same period, you would get a different view. During the last 40 to 50 years most major cities hit a critical juncture in their lives. The trends of mass migration away from the center of the cities caused vast areas of blight and a sense that if you owned property in that general area you better seek greener pastures. Some cities were so far gone that many urbanists thought they could never come back. Downtown Kansas City, past and present, has had its series of problems, but when you look at other cities that have brought themselves back from the point of extinction, we have never really fallen that far.

Successful real estate development has the same ripple effect as dropping a stone into water. And that has always been true of Urban Cores. As the Urban Core became successful so did their adjoining neighbors. In the 1950s and 60s, with the onset of the highway system, the ripples reached further and further away from the epicenter. Only time and a change in development thinking could change the outflow of investment. As that time went by, areas that had fallen into disrepair and not worthy of consideration became prime pickins for the creative class. This group has always included artists, visionaries and risk takers.

I've always felt I understood this group. I mean, I restored my first loft in 1985 on Southwest Boulevard. But it is all about having vision. In 1994, I started in commercial real estate with Kerr & Company, now Colliers International. I informed them I wanted to focus on downtown as my market. I felt confident that I had the vision and could make my mark in that market. At that time I was 100% commission and supplemented my lack of income by driving a forklift and moving rugs in the evening at Benchmark Home Furnishings. I was certain if I conveyed my knowledge of the Urban Core to my clients, I could convince them that this was the perfect time for a rebound in the market.

In the spring of 1995 I met two young guys that didn't have two nickels to rub together but had a lot of passion for the Urban Core. They wanted to open a bar. Since I was well versed in both real estate and bars, this was an ideal assignment. We looked at several options that provided an urban feel, but nothing was really what they wanted. Finally, one day they said that they saw a great spot for rent up on a hill and that I should check it out. So I did. Once I checked out the spot, I realized I was dealing with guys who really didn't know what they were getting into. I went back and told them that they were crazy if they believed anyone would pay for a $5.00 martini at 31st and Oak. The only thing worse then the location was the name, I mean who would ever want to drink at a place called The Velvet Dog?

Urban Cores are a living organism. They have great opportunities of life and occasional bouts with depression. I believe that our Urban Core is a reflection of us. Now I know some people are tired of hearing about downtown, but I believe that no matter whether you live in Overland Park, Platte City or Brookside, as goes our Urban Core, so goes us. In Kansas City's downtown, we've been kicked but we've really never been knocked out of the fight. We have a thick, rich history that we need to bring back and be proud of. Lack of investment has left us with an abundance of architectural treasures. And now the stars are aligned as never before for reinvesting in the Urban Core of Downtown Kansas City. The mayor, the city manager and a highly successful Downtown Council has provided an opportunity for great reinvestment and an opportunity to say to our friends from afar, "I'm from Kansas City and you ought to see the great things they are doing downtown." Some people have looked at downtown and said all the best deals have been picked over and there are no new oppor-tunities for reinvestment. For every successful venture downtown, a new opportunity is created. Opportunity is where you make it. And if you still don't believe me, I know a great series of restaurants and bars at the intersection of 31st and Oak where we can discuss the topic further over an $8.00 martini.

Sean O'Byrne is the director of Union Station. He may be reached at 816.589.8913 or by email at sobyrne@unionstation.org.