FOR IMMEDIATE RELEASE: Oct. 3, 2006
City and JE Dunn complete headquarters negotiations
The City of Kansas City, Mo., and JE Dunn Construction Company announced today that they have successfully concluded their negotiation of all essential terms in order for JE Dunn Construction to relocate its National Headquarters and Midwest operations which will kick off the much anticipated East Village Development in 2007.
"The successful completion of these negotiations is another major milestone for downtown Kansas City and will ensure that the East side is now part of the downtown renaissance," Mayor Kay Barnes said.
City Manager Wayne A. Cauthen indicated he was pleased with the result of the negotiations. "I am extremely pleased that we will retain another major corporation downtown with the new JE Dunn headquarters as part of the agreement," Cauthen said.
The development agreements between JE Dunn Construction, the City and the Tax Increment Financing Commission closely follow the project outline as originally established in a Memorandum of Understanding approved by the City Council in January 2006.
JE Dunn has anchored the east side of downtown since 1949. "JE Dunn is pleased to stay on the City's east side and be a catalyst for the East Village Development Project," said chairman of JE Dunn Construction Company, Steve Dunn.
Cauthen and Dunn note that the first project for East Village was a complex one with several moving parts, including state financing, the issuance of bonds and the construction of a public garage as part of an adjoining private office development. The JE Dunn headquarters and related public garage represents a more than $60 million development, which is part of an overall $400 million East Village project which will include approximately 85,000 square feet of retail space and about 1,200 condos and apartments.
Under terms of the agreement, no more than $19 million in public funds will be spent on the parking garage. The project is expected to include approximately $12 million in public funds for blight elimination. "We appreciate the cooperation of the State of Missouri for providing significant funding as we endeavor to stabilize our urban core," Cauthen added. The terms of this negotiation will need to be ratified by the City Council before they are finalized.
The JE Dunn Construction headquarters and public parking garage are the first phase of the project. The development rights for the second phase of the East Village project have been granted by the TIF Commission to East Village LLC, a consortium made up of Swope Community Builders and Sherman Associates, a Minneapolis firm that specializes in urban housing developments.