market study key findings - kcmo.govkcmo.gov/planning/wp-content/uploads/sites/9/2017/... · market...

Market Study Key Findings

Riverfront Industrial Area Plan

Final Report | December 29, 2017

prepared for:

City of Kansas City, Missouri

Market Study Key Findings for the Riverfront Industrial Area | Final Report | December 29, 2017 2

TABLE OF CONTENTS TABLE OF CONTENTS ............................................................................................................... 2

TABLE OF FIGURES ................................................................................................................... 3

I. INTRODUCTION ............................................................................................................... 4 Riverfront Industrial Area Overview and Subareas .......................................................................... 4

Report Overview .............................................................................................................................. 6

II. INDUSTRY AND WORKFORCE TRENDS AND OPPORTUNITIES ............................... 7 Regional Industry Sector Employment Trends Impacting the Riverfront Industrial Area ................ 8

Regional Employment Trends .................................................................................................................... 8 AdvanceKC Target Industries .................................................................................................................. 11 Employment Growth Projections to 2040 ................................................................................................. 12

Riverfront Industrial Area Subarea Employment Trends ............................................................... 13 Riverfront Industrial Area Overview .......................................................................................................... 13 Birmingham Employment Trends ............................................................................................................. 18 Northeast and Blue River Employment Trends ........................................................................................ 20

Industry Sector Opportunities ........................................................................................................ 22

Workforce and the Riverfront Industrial Area ................................................................................. 23

III. REAL ESTATE MARKET CONDITIONS IN THE RIVERFRONT INDUSTRIAL AREA 28 Industrial Market Inventory and Investment ................................................................................... 28

Future Demand for Industrial Space .............................................................................................. 32

IV. SUMMARY OF SUBAREA COMPETITIVE ASSETS AND CHALLENGES .................. 33 Birmingham Competitive Assets and Challenges .......................................................................... 33

Northeast Competitive Assets and Challenges ............................................................................. 34

Blue River Competitive Assets and Challenges ............................................................................ 37

V. RECOMMENDATIONS BY GUIDING PRINCIPLE ........................................................ 40

VI. APPENDIX ...................................................................................................................... 42


TABLE OF FIGURES Figure 1. Riverfront Industrial Area and Subareas ....................................................................................... 5 Figure 2. Employment by Industry Sector in the Kansas City Region, 2004 and 2015 .............................. 10 Figure 3. Top 20 Largest Production, Distribution, and Repair Industry Group Subsectors in the Kansas City Region, 2004 to 2015* ......................................................................................................................... 11 Figure 4. Target and Niche Industries Identified as part of the AdvanceKC Economic Development Strategic Plan ............................................................................................................................................................. 12 Figure 5. Employment Projections for Selected Industry Sectors in the Kansas City Region, 2015 to 2040* .................................................................................................................................................................... 13 Figure 6. Employment and Land Area in the Riverfront Industrial Area, by Subarea ................................. 14 Figure 7. Total Employment in Birmingham by Industry Sector, 2015 ....................................................... 15 Figure 8. Total Employment in the Northeast and Blue River by Industry Sector, 2015 ............................ 15 Figure 9. Employment Density of PDR Sector Jobs in the Kansas City Region, 2014 .............................. 16 Figure 10. Employment Density of Knowledge-Based Sector Jobs in the Kansas City Region, 2014....... 17 Figure 11. Birmingham Local Employment and Share of Regional Employment, 2004 to 2015 ................ 19 Figure 12. Top 10 Production, Distribution, and Repair Subsectors in Birmingham, 2015* ....................... 20 Figure 13. Northeast and Blue River Local Employment and Share of Regional Employment, 2004 to 2015 .................................................................................................................................................................... 21 Figure 14. Selection of Largest Production, Distribution, and Repair Subsectors in the Northeast and Blue River, 2015* ................................................................................................................................................ 22 Figure 15. Home Location of Riverfront Industrial Area Workers, 2014 ..................................................... 25 Figure 16. Educational Attainment in Kansas City Region, 2011-2015 ...................................................... 26 Figure 17. Population Density in Kansas City Region, 2011-2015 ............................................................. 27 Figure 18. Industrial Market Overview for Birmingham, the Northeast and Blue River, and Kansas City Region, Q2 2017 ......................................................................................................................................... 30 Figure 19. Total Net Absorption of Inventory in the Kansas City Region by Industrial Category, 2006-2016 .................................................................................................................................................................... 30 Figure 20. Industrial Vacancy Rates in Birmingham, the Northeast and Blue River, and Kansas City Region, 2006 to 2017 ............................................................................................................................................... 31 Figure 21. Industrial Rental Rates in Birmingham, the Northeast and Blue, and Kansas City Region, 2006 to 2017 ........................................................................................................................................................ 31 Figure 22. Zip Codes Used for the Riverfront Industrial Area's Employment Analysis ............................... 42


I. INTRODUCTION This report presents key findings and recommendations based on Strategic Economics’ assessment of economic trends, market conditions, development trends and workforce development issues impacting the Riverfront Industrial Area. The Riverfront Industrial Area is a roughly 30-square mile industrial area located in the City of Kansas City, Missouri. This work was completed to inform the Riverfront Industrial Area Plan for the City of Kansas City, Missouri, being prepared by lead consultant Stantec. The findings in this report incorporate Strategic Economics’ analyses and relevant background information from existing reports and policies, including the FOCUS Kansas City Plan, AdvanceKC Economic Development Plan, the Riverfront Industrial Area Plan Databook, the Blue Valley Redevelopment Opportunity Assessment, and the 2017 Kansas City, Missouri Riverfront Industrial Area Employer Survey. In addition to this Market Study Key Findings Report, Strategic Economics will later provide guidance on potential categories of funding sources for implementation of the plan. The Riverfront Industrial Area Plan is part of a larger effort led by the City of Kansas City, Missouri to complete area plans for 18 geographic zones covering its municipal boundaries. Area plans apply broad citywide polices to a smaller area of the City, serving as implementation tools for the comprehensive plan and these other citywide policies.1 Each area plan includes a long-term vision, goals to help achieve this vision, and specific recommendations intended to guide public decisions on land use, transportation, economic development, and infrastructure.2

RIVERFRONT INDUSTRIAL AREA OVERVIEW AND SUBAREAS The Riverfront Industrial Area is a largely industrial area in Kansas City, Missouri, with a small residential population – estimated at fewer than 2,200 people as of the 2010-2014 period3 – located mainly on the edges of the Riverfront Industrial Area’s boundaries. As described in this document, the Riverfront Industrial Area accounts for approximately 3.8 percent of the region’s total jobs, and 15 percent of the region’s industrial building inventory. Within the Riverfront Industrial Area, various sub-areas feature different histories, land uses, challenges, and opportunities. For this reason, this report differentiates three subareas within the Riverfront Industrial Area (Figure 1):

The Northeast encompasses the area from Highway I-29 to I-435, bordered by railyards to the south and the Missouri River to the north.

The Blue River area encompasses the long narrow stretch of industrial land that follows the Blue River and I-435, bordered by the Missouri River to the north, I-435 to the East, and ending near Leeds Industrial Park to the south. In certain sections of the report, the Blue River area and the Northeast are analyzed as one subarea due to data limitations.

Birmingham encompasses all of the Riverfront Industrial Area located north of the Missouri River.

1 City of Kansas City, Missouri, “Shoal Creek Valley Area Plan”; City of Kansas City, Missouri, “Red Bridge Area Plan.” 2 City of Kansas City, Missouri, “Red Bridge Area Plan”; City of Kansas City, Missouri, “Soal Creek Valley Area Plan.” 3 City of Kansas City, Missouri, “Riverfront Industrial Area Plan Databook,” with data from the U.S. Census American Community Survey 2010-2014 estimates.


Figure 1. Riverfront Industrial Area and Subareas


REPORT OVERVIEW The report is organized in the following five sections:

I. Introduction (page 4) II. Industry and Workforce Trends and Opportunities (page 7) III. Real Estate Market Conditions in the (page 28) IV. Recommendations by Guiding Principle (page 40) V. Appendix (page 42)


II. INDUSTRY AND WORKFORCE TRENDS AND OPPORTUNITIES

Based on changes in employment by industry sector, this chapter examines major industry trends within the regional Kansas City economy and the role of the Riverfront Industrial Area’s existing businesses within the economy. Examining regional trends clarifies how the economy is evolving and growing over time. The comparison of regional trends with the existing industry mix in the Riverfront Industrial Area provides insights into how well the Riverfront Industrial Area is competing for jobs and businesses. This performance provides insights into the Riverfront Industrial Area’s ability to capture future regional demand for commercial and industrial space, including opportunities to capture new and different kinds of businesses based on the Riverfront Industrial Area’s existing unique assets. The employment analysis findings are described in terms of four industry sector groupings. Industries are grouped based on their role within the economy and connection to different land uses, with a focus on sectors linked to industrial land uses:

Production, Distribution, and Repair (PDR) sectors are industry sectors in which businesses typically locate on industrial land and generate demand for industrial space. In most cases, these are “basic” industries, meaning that they drive productivity and exports for the region.4 These sectors include Utilities (NAICS code 22), Construction (NAICS code 23), Manufacturing (NAICS Code 31-33), Wholesale Trade (NAICS code 42), Transportation and Warehousing (NAICS code 48-49).5 This report focuses on understanding dynamics in the three latter sectors since they are most directly linked to use of industrial building space.

Knowledge-based sectors are also drivers of regional productivity, mainly through entrepreneurship, technology, and innovation. These sectors include businesses that typically drive demand for office space, though in some cases, they are also associated with light industrial or office-flex / research and development space. These sectors include Information (NAICS code 51), Finance and Insurance (NAICS code 52), Real Estate and Rental and Leasing (NAICS code 53), Professional, Scientific, and Technical Services (NAICS code 54), and Management of Companies and Enterprises (NAICS code 55).

Household-serving sectors are consumption-focused and expand in response to population growth; they do not typically drive regional productivity and exports. These sectors include Retail Trade (NAICS code 44-45), Educational Services (NAICS code 61), Health Care and Social Assistance (NAICS code 62), Arts, Entertainment, and Recreation (NAICS code 71), and Accommodation and Food Services (NAICS code 72). Note, however, that Health Care and Social Assistance is a hybrid sector: some hospitals attract patients from outside the region, and the sector includes research and development activities.

Other sectors include Agriculture, Forestry, Fishing and Hunting (NAICS code 11), Mining Quarrying, Oil and Gas Extraction (NAICS code 21), Other Services Except Public Administration (NAICS code 81), Public Administration (NAICS code 92), and Unknown (NAICS code 99). These sectors are relatively small and/or not easily associated with a specific land use.

4 Utilities and construction, although considered industrial, are not necessarily basic industry sectors. Construction jobs, for example, tend to vary with a region’s economic cycles in response to locally-generated demand. 5 The North American Industrial Classification System (NAICS) is a system used by U.S. Federal agencies to classify business establishments.


The PDR industry group is most directly relevant to the Riverfront Industrial Area’s concentration of industrial land uses. However, the other industry groups can also contribute to secondary needs for industrial space, such as research and development activities in flex or light industrial buildings, or upgrading of industrial buildings to office space. The chapter opens with an analysis of the composition and drivers of the regional economy, as well those projected to drive growth in the future, taking into consideration national trends impacting PDR uses. The analysis focuses on trends dating prior to the most recent recession to better gauge long-term economic trends. This analysis is followed by an analysis of the Riverfront Industrial Area’s local employment composition, and a classification of its opportunities for retaining and growing different industry sectors. The chapter concludes with an examination of workforce development issues and opportunities impacting the Riverfront Industrial Area.

REGIONAL INDUSTRY SECTOR EMPLOYMENT TRENDS IMPACTING THE RIVERFRONT INDUSTRIAL AREA This section describes relevant regional industry trends, industries targeted for retention and expansion by existing public policies, and industries projected to grow in the region in the future. These findings provide insights into the types of businesses the Riverfront Industrial Area can potentially retain or expand in the future based on its historic performance and unique assets.

REGIONAL EMPLOYMENT TRENDS Employment in PDR industry sectors accounts for a slightly larger than average share of the Kansas City regional economy compared to the United States as a whole, though the region’s PDR jobs are declining in number and share. (Figure 2). As of 2015, PDR sectors represented just over a quarter of total employment in the Kansas City region, down from 27 percent in 2004. In contrast, jobs in these industry sectors accounted for 23 percent of jobs nationally in 2015. Long-term regional employment growth is primarily driven by non-PDR industry sectors – especially in health care, restaurants/hotels, and professional, scientific, and technical services. (Figure 2). Long-term employment growth in the Kansas City region has been primarily driven by a handful of knowledge-based and household-serving industry sectors. Among knowledge-based sectors, both professional, scientific, and technical services and management of companies (which includes corporate headquarters) grew significantly from 2004 to 2015. Among PDR industry sectors, transportation and warehousing jobs account for all longer-term regional PDR employment growth; the region is well-positioned for continued growth in this industry. Even as the regional economy grew from 2004 to 2015, all PDR sectors experienced job decline except for transportation and warehousing. Across the nation, the boom in e-commerce in the last several years has powered employment growth in transportation, warehousing, and logistics-related activities.6 Furthermore, experts predict that the nation’s high-performing emerging industrial markets will be those

6 Business Insider Intelligence, “E-Commerce Drives Growth in Logistics Industry Jobs”; Tomer and Kane, “Amazon’s Recent Hiring Spree Puts New Focus on Warehouse Jobs and Worker Needs”; Dolan Del Vecchio, “E-Commerce Fueling Warehouse and Logistics Job Growth”; Mandel, “How E-Commerce Is Raising Pay and Creating Jobs around the Country.”


equipped to meet the demands of e-commerce. The Kansas City region’s strategic central location and intermodal transportation infrastructure position it to capture this growth.7 The rapid regional employment growth in the transportation and warehousing industry sector also continued during the recent post-recession recovery. Between 2010 and 2016, all PDR sectors experienced net job growth, in part due to a general economic recovery. However, only jobs in the transportation and warehousing and construction industry sectors exceeded the regional employment growth rate.8 Regional employment growth in transportation and warehousing is primarily driven by truck transportation-related activities, complemented by growth in wholesale trade industry activities. Growth within the transportation sector from 2004 to 2016 was driven by increases in truck transportation and support activities for truck transportation, complemented by growth in merchant wholesalers for durable goods and wholesale electronic markets, agents and brokers (Figure 3). These subsectors are in the top 20 largest PDR subsectors in the region, and have grown at the same rate, or faster than, the region. This growth ties into national trends favoring growth of e-commerce, transportation, and logistics activities. Despite a net decline in manufacturing jobs over time, specific types of manufacturing activities are performing well regionally, including manufacturing of transportation equipment, machinery, food, and computer and electronic parts (Figure 3). These subsectors, which represent some of the largest PDR employment subsectors in the region, also experienced higher growth rates than the region overall between 2004 and 2015. In contrast, top manufacturing subsectors that have declined since 2004 include manufacturing of chemicals, fabricated metals, plastics and rubber, paper, and printing and related support activities. This roughly matches national trends whereby manufacturing in the U.S. is increasingly “value-added” production with an emphasis on knowledge, skills, and innovation. The increasing prevalence of automation and off-shoring has led to the decline of more traditional manufacturing in the U.S.9 – such as manufacturing of paper, plastics, certain chemicals, and printing – whereas technology-intensive advanced manufacturing has been more competitive. This includes manufacturing of transportation equipment, machinery, and computer and electronic parts.10

7 Colliers International, “United States Industrial: 10 Emerging U.S. Markets.” 8 The data presented for the 2010 to 2016 period are based on the U.S. Census Quarterly Workforce Indicators for the 8-county Kansas City Region. Note that the growth in construction jobs is more reflective of the cyclical economic recovery rather than a significant long-term trend. 9 Tung, Tung, and Sasaki Urban Design, “Next Generation Workplace Districts”; Mid-America Regional Council and Brookings Metropolitan Policy Program, “Prosperity at a Crossroads: Targeting Drivers of Economic Growth for Greater Kansas City.” 10 Muro et al., “America’s Advanced Industries: What They Are, Where They Are, and Why They Matter.”; Missouri Department of Economic Development, “Missouri Target Industry Brief: Advanced Manufacturing.”


Figure 2. Employment by Industry Sector in the Kansas City Region, 2004 and 2015

Employment

2004 Employment

2015 Percent Change

2004-2015

Knowledge-based Sectors Professional, Scientific, and Technical Services 62,154 77,176 24%Finance and Insurance 64,484 59,298 -8%Information 49,959 31,240 -37%Management of Companies and Enterprises 20,798 24,670 19%Real Estate and Rental and Leasing 15,557 14,576 -6%Subtotal 212,952 206,960 -3%

Production, Distribution, and Repair Sectors Manufacturing 82,095 80,024 -3%Wholesale Trade 62,048 58,953 -5%Construction 53,651 48,896 -9%Transportation and Warehousing 38,908 39,845 2%Utilities 3,419 2,823 -17%Subtotal 240,121 230,541 -4%

Household-serving Sectors Health Care and Social Assistance 104,980 133,929 28%Retail Trade 106,357 106,473 0%Accommodation and Food Services 75,152 90,243 20%Educational Services 15,692 16,665 6%Arts, Entertainment, and Recreation 13,135 13,451 2%Subtotal 315,316 360,761 14%

Other Sectors Admin & Support, Waste Mngt., Remediation 53,062 65,140 23%Other Services (Except Public Administration) 43,328 41,671 -4%Mining, Quarrying, and Oil and Gas Extraction 742 918 24%Agriculture, Forestry, Fishing and Hunting 117 162 39%Unknown 456 133 -71%Subtotal 97,704 108,023 11%

Total 866,092 906,285 5%

Source: U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.


Figure 3. Top 20 Largest Production, Distribution, and Repair Industry Group Subsectors in the Kansas City Region, 2004 to 2015*

Regional

Employment 2015

Positive Growth

2004-2015?

Percent Change

2004-2015

Merchant Wholesalers, Nondurable Goods 28,017 -15%

Merchant Wholesalers, Durable Goods 27,150 4%

Transportation Equipment Manufacturing 15,547 13%

Truck Transportation 14,728 4%

Machinery Manufacturing 9,409 7%

Fabricated Metal Product Manufacturing 8,262 -4%

Food Manufacturing 7,947 13%

Computer and Electronic Product Manufacturing 7,917 43%

Couriers and Messengers 6,617 2%

Printing and Related Support Activities 6,381 -29%

Chemical Manufacturing 6,220 -8%

Warehousing and Storage 6,040 0%

Support Activities for Transportation 5,668 34%

Transit and Ground Passenger Transportation 5,480 1%

Wholesale Electronic Markets, Agents, Brokers 3,856 29%

Miscellaneous Manufacturing 3,658 2%

Plastics and Rubber Products Manufacturing 3,472 -31%

Paper Manufacturing 3,227 -27%

Nonmetallic Product Manufacturing 2,801 -18%

Furniture and Related Product Manufacturing 1,848 -16%

Subtotal Employment in Top 20 PDR Subsectors 174,243 -1%

Total Regional Employment 906,285 5%

*The 20 subsectors (3-digit NAICS) within Manufacturing, Wholesale Trade, and Transportation and Warehouse that displayed the largest number of jobs in 2015 are shown. Subsectors within Utilities and Construction are not shown. Source: U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.

ADVANCEKC TARGET INDUSTRIES The “AdvanceKC” target industries are an adopted focus of current public policy efforts, and represent potential opportunities for growth in the Riverfront Industrial Area. AdvanceKC is a citywide economic development initiative led by the City of Kansas City, Missouri. Launched in 2011, this effort led to the publication of the AdvanceKC Strategic Plan (2012), a blueprint outlining how Kansas City can utilize its competitive assets to attract and retain jobs and talent, encourage entrepreneurship and innovation, and increase local wealth. Directly relevant to the Riverfront Industrial Area’s existing industry mix and land uses, AdvanceKC includes specialized manufacturing and supply chain management as target industries for the region. As shown in Figure 4, AdvanceKC specifies target and niche industry sectors for the City. Target industries are defined as the broad activities that form the basis of the City’s economy, and niche industries are defined as subsectors within these target industries that present “high-value opportunities for local growth based on competitive strengths in existing employment and other factors.”11 Several industrial subsectors driving

11 City of Kansas City, Missouri, “AdvanceKC Economic Development Strategic Plan.”


PDR-sector growth are included as niche sectors in AdvanceKC’s framework, such as transportation equipment manufacturing, wholesale trade, and warehouse and distribution (Figure 3). Relevant to opportunities for the Riverfront Industrial Area, AdvanceKC also focuses on dedicating and aligning regional resources to entrepreneurship and the creation of new firms. The region already benefits from a strong set of resources to promote local entrepreneurship, with local organizations such as the Greater Kansas City Chamber of Commerce and the Kauffman Foundation that champion innovation and new start-up initiatives.12, 13 Figure 4. Target and Niche Industries Identified as part of the AdvanceKC Economic Development Strategic Plan

Source: City of Kansas City, Missouri, 2012.

EMPLOYMENT GROWTH PROJECTIONS TO 2040 Recent industry employment trends are projected to continue over the next two decades, with knowledge-based industry sectors anticipated to drive growth in the Kansas City region (Figure 5).14 Jobs in the knowledge-based industry group are projected to experience the highest rates of growth (55 percent) and to account for 30 percent of all jobs in the region by 2040. Jobs in professional, scientific and technical services, in particular, are expected to significantly outpace regional growth, followed by financial services and real estate related services. Health care employment is also anticipated to continue its rapid growth (Figure 4). Among PDR industry sectors, jobs in the wholesale trade and transportation and warehousing industry sectors are expected to continue leading regional employment growth over the next two decades, while manufacturing employment is projected to continue its long-term decline over time.

12 According to a 2017 presentation by the Kansas City Economic Development Corporation, Kansas City was ranked as one of the top 5 emerging entrepreneurial ecosystem in the world by the Global Entrepreneurship Network in 2015. 13 Mid-America Regional Council and Brookings Metropolitan Policy Program, “Prosperity at a Crossroads: Targeting Drivers of Economic Growth for Greater Kansas City.” 14 Projections are based on those developed by Woods & Poole, which produces industry-level economic forecasts based on a national econometric model; these forecasts were also compared against overall employment projections by the Mid-America Regional Council (the Kansas City region’s metropolitan planning organization). MARC projects a 32 percent increase in jobs between 2010 and 2040, compared to Woods & Poole’s 40 percent increase between 2015 and 2040.


The wholesale trade and transportation and warehousing sectors are projected to grow by 21 percent and 11 percent, respectively, whereas manufacturing employment is expected to decline by 13 percent by 2040. Figure 5. Employment Projections for Selected Industry Sectors in the Kansas City Region, 2015 to 2040*

Regional Employment

2015

Employment 2040

(Projected)

Projected Growth

2015-2040 Knowledge-Based Sectors Professional, Scientific, Technical Services 115,016 191,119 66% Finance and Insurance 88,463 138,863 57% Real Estate, Rental and Lease 58,539 92,453 58%

Production, Distribution, and Repair Sectors Construction 66,932 78,857 18% Wholesale Trade 57,234 69,099 21% Manufacturing 77,737 67,400 -13% Transportation and Warehousing 52,414 57,968 11%

Household-Serving Sectors Health Care and Social Assistance 144,891 243,922 68% Retail Trade 133,468 195,922 47% Accommodation and Food Services 92,639 123,563 33% Total Employment 1,170,310 1,642,550 40%

*A selection of 2-digit NAICS code sectors with the highest projected 2040 employment is shown. “Other Services (Except Public Administration)” and “Administrative and Waste Services” are not included. Thus, the sum of the sectors shown does not equal the region’s total employment. Source: Woods & Poole, 2017; Strategic Economics, 2017.

RIVERFRONT INDUSTRIAL AREA SUBAREA EMPLOYMENT TRENDS This section analyzes employment trends in the Riverfront Industrial Area in order to understand the Riverfront Industrial Area’s role within the regional economy. This section opens with a brief overview of the Riverfront Industrial Area’s location relative to other industrial districts in the region, and a comparison of the Birmingham area versus the Northeast and Blue River area. These two areas are then examined separately to reflect differences in their histories and industry specializations. Due to employment data limitations, it was not possible to analyze industry sectors for Northeast and Blue River separately for this analysis.15 A map of the subareas was shown in Figure 1.

RIVERFRONT INDUSTRIAL AREA OVERVIEW The Riverfront Industrial Area is a major PDR employment concentration within the Kansas City region, and is well-positioned to capture employment growth opportunities in PDR industry sectors. Not only is the Riverfront Industrial Area highly specialized in PDR jobs (Figure 6), but the Riverfront Industrial Area also features a high density of PDR employment relative to other areas in the region (Figures

15 The data analysis relies on the U.S. Census ZIP Code Business Patterns. The geographies used for this analysis are shown in the Appendix.


7, 8, and 9).16 The Riverfront Industrial Area also benefits from its proximity to other key industrial areas, such as the Ford assembly plant located north of Birmingham in Claycomo, Missouri. Based on its location, access, and existing business mix, the Riverfront Industrial Area is less well positioned to capture a large share of regional knowledge-based job growth. Figure 10 illustrates the strong spatial concentration of knowledge-based jobs in areas like Overland Park, Kansas, and Downtown/Midtown Kansas City, Missouri. Currently, the Riverfront Industrial Area shows only a very limited concentration of knowledge-based employment. However, the Riverfront Industrial Area could potentially benefit from its proximity to the concentration of businesses and knowledge-based jobs in Downtown Kansas City, Missouri. The Riverfront Industrial Area is a diversified industrial area that must be examined by subarea, with significant differences in history and industry specialization between Birmingham, and the Northeast and the Blue River area. Birmingham, located to the North of the Missouri River, includes 25 percent of the Riverfront Industrial Area’s jobs, and has been growing steadily over the last decade. The area has experienced significant development activity on its greenfield sites, and it specializes in warehouse and distribution space. The Northeast and the Blue River area, located on the south side of the Missouri, include 75 percent of the Riverfront Industrial Area’s employment. These subareas are older “legacy” industrial areas with declining employment overall. They offer a mix of manufacturing, warehouse, and distribution jobs. These differences are highlighted in the following charts and throughout the following section. Figure 6. Employment and Land Area in the Riverfront Industrial Area, by Subarea

*For the sake of comparison, the land area displayed is based on the area of the ZIP codes used for the employment analysis, rather than the actual study area boundaries. Within the actual Riverfront Industrial Area boundaries, Birmingham constitutes 55 percent of the land area. See the Appendix for more detail. Source: U.S. Census ZIP Code Business Patterns for ZIP Codes 64120, 64123, 64125, 64126, 64129 (Northeast and Blue River) and 64161 (Birmingham); Strategic Economics, 2017.

16 The data used to produce Figures 7 through 9 dates from 2014, which explains certain industrial hubs, like Edgerton, KS, which saw its first Amazon fulfillment center in 2015, does not appear in Figure 6.

Birmingham25%

Northeast and Blue River

75%

Total Employment, 2015

Birmingham40%

Northeast and Blue

River60%

Land Area*


Figure 7. Total Employment in Birmingham by Industry Sector, 2015

Source: U.S. Census ZIP Code Business Patterns for ZIP Codes 64161 (Birmingham); Strategic Economics, 2017.

Figure 8. Total Employment in the Northeast and Blue River by Industry Sector, 2015

Source: U.S. Census ZIP Code Business Patterns for ZIP Codes 64120, 64123, 64125, 64126, and 64129 (Northeast and Blue River); Strategic Economics, 2017.

Manufacturing11%

Wholesale, Transportation, Warehousing

50%

Utilities, Construction

2%

Knowledge-Based

1%

Household-Serving

32%

Other 4%

Manufacturing17%

Wholesale, Transportation, Warehousing

37%

Utilities, Construction

15%

Knowledge-Based

4%

Household-Serving

20%

Other 7%


Figure 9. Employment Density of PDR Sector Jobs in the Kansas City Region, 2014


Figure 10. Employment Density of Knowledge-Based Sector Jobs in the Kansas City Region, 2014


BIRMINGHAM EMPLOYMENT TRENDS Birmingham accounts for a quarter of the Riverfront Industrial Area’s jobs, yet is driving all of the Riverfront Industrial Area’s long-term job growth. Employment in the Birmingham area grew by 30 percent from 2004 to 2015, even as employment declined by over 4 percent in the Northeast and Blue River area. PDR sector jobs – particularly in transportation, warehousing, and wholesale trade – are driving the rapid growth of Birmingham and now make up half the jobs in the area. Birmingham is heavily dominated by PDR jobs, which account for two thirds of the nearly 8,500 jobs in the subarea (Figure 11). Furthermore, employment in Birmingham’s PDR industry sectors increased by 50 percent between 2004 and 2015. As a greenfield site with flexible opportunities for development of new logistics and distribution space that meet the needs of today’s businesses, Birmingham is capturing significant shares of employment growth in the region’s fastest-growing logistics and distribution-related industry sectors. Employment growth in Birmingham from 2004 to 2015 occurred primarily in the transportation and warehousing industry. Birmingham’s employment growth in this sector exceeded regional growth, and the subarea increased its share of regional transportation and warehousing jobs from 4 percent in 2004 to 7 percent in 2015. Jobs in wholesale trade experienced a similar pattern of growth. The availability of large, consolidated, greenfield sites allows construction of buildings that respond directly to the needs of today’s growing businesses. As a result, several of the region’s fastest-growing PDR subsectors regionally (Figure 2) are those also fueling Birmingham’s growth (Figure 11). These include truck transportation, support activities for transportation, warehousing and storage, couriers and messengers, as well as merchant wholesalers for durable goods and wholesale electronic markets. Birmingham also features a concentration of jobs related to the presence of the Worlds of Fun amusement park, Ameristar casino, and nearby lodging. Birmingham features a high concentration of jobs in the accommodation, food services, and entertainment industry sectors. These jobs are not truly “household-serving” in the sense of responding to local needs, but instead reflect a concentration of regional entertainment destinations. These destinations attract visitors and could potentially create a base for attracting additional lodging and entertainment uses; however, these opportunities are constrained by the limited regional demand for these specialized destinations.


Figure 11. Birmingham Local Employment and Share of Regional Employment, 2004 to 2015

Birmingham Employment

2015

Percent Change

2004-2015

Share of Regional

Employment 2004

Share of Regional

Employment 2015

Knowledge-based Sectors Management of Companies & Enterprises 56 -58% 0.6% 0.2% Information 35 -30% 0.1% 0.1% Real Estate and Rental and Leasing 5 -94% 0.5% 0.0% Finance and Insurance 0 -100% 0.0% 0.0% Professional, Scientific, Technical Services 0 -100% 0.0% 0.0% Subtotal 96 -65% 0.1% 0.0%

Production, Distribution, and Repair Sectors

Transportation and Warehousing 2,810 78% 4.1% 7.1% Wholesale Trade 1,340 50% 1.4% 2.3% Manufacturing 945 3% 1.1% 1.2% Construction 197 161% 0.1% 0.4% Utilities 0 0% 0.0% 0.0% Subtotal 5,291 53% 1.4% 2.3%

Household-serving Sectors

Accommodation and Food Services 1,049 -4% 1.5% 1.2% Arts, Entertainment, and Recreation 799 4% 5.9% 5.9% Retail Trade 613 38% 0.4% 0.6% Health Care and Social Assistance 189 1203% 0.0% 0.1% Educational Services 0 -100% 0.1% 0.0% Subtotal 2,649 13% 0.7% 0.7%

Other

Other Services (excluding Public Administration) 283 211% 0.2% 0.7% Mining, Quarrying, Oil, Gas 49 32% 5.0% 5.3% Admin & Support, Waste Mngt. and Remediation 35 -86% 0.5% 0.1% Unknown 0 0% 0.0% 0.0% Subtotal 367 -4% 0.4% 0.3%

Total 8,402 30% 0.7% 0.9%

Source: U.S. Census ZIP Code Business Patterns for ZIP Code 64161, 2004 and 2015; U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.


Figure 12. Top 10 Production, Distribution, and Repair Subsectors in Birmingham, 2015*

Birmingham Employment

2015

Regional Top 20 PDR

Subsector?

Positive Regional

Growth 2004-2015?

Truck Transportation 1,251

Merchant Wholesalers, Durable Goods 994

Warehousing and Storage 810

Couriers and Messengers 552

Paper Manufacturing 424

Support Activities for Transportation 198

Printing and Related Support Activities 189

Wholesale Electronic Markets, Agents and Brokers 175

Merchant Wholesalers, Nondurable Goods 172

Fabricated Metal Product Manufacturing 124

Total Employment in Birmingham’s Top 10 PDR Subsectors 5,193

Total Riverfront Industrial Area Employment 34,251 *The 10 subsectors (3-digit NAICS) within Manufacturing, Wholesale Trade, and Transportation and Warehouse that displayed the largest number of jobs in 2015 are shown. Source: U.S. Census ZIP Code Business Patterns for ZIP Code 64161, 2004 and 2015; U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.

NORTHEAST AND BLUE RIVER EMPLOYMENT TRENDS The Northeast and Blue River are largely dominated by jobs in PDR industry sectors, and together these subareas constitute a significant share of the region’s PDR jobs. In 2015, nearly 18,000 out of 26,000 jobs in these subareas were in PDR sectors, accounting for about 8 percent of PDR jobs in the region. The Northeast and Blue River experienced a net decline in employment from 2004 to 2015, though most job loss actually occurred in non-PDR sectors (Figure 13). The subareas’ long-term job loss occurred in retail trade and in knowledge-based sectors such as real estate and leasing, management of companies, and professional, scientific, and technical services. Employment south of the river accounts for three quarters of jobs in the Riverfront Industrial Area, but overall employment declined by 4 percent since 2004 – even as regional employment grew by 5 percent over the same period. Employment growth and decline among the Northeast and Blue River areas’ PDR industry sectors largely follows regional patterns: though manufacturing is in decline, transportation and warehousing jobs continue to drive growth. With 35 percent growth in transportation and warehousing jobs since 2004, the Northeast and Blue River areas now account for over 12 percent of this sector’s jobs in the region. Jobs in truck transportation, in particular, are performing well. In contrast, manufacturing jobs declined by 16 percent and wholesale trade jobs by 3 percent. As longstanding industrial districts, the Northeast and Blue River include significant employment in “legacy” manufacturing subsectors that are declining regionally and locally. Manufacturing jobs in the Northeast and Blue River declined by 16 percent, at a faster rate than the region. Comparing Figure 2 and Figure 14 highlights the extent to which the Northeast and Blue River are specialized in subsectors that are now the region’s top declining manufacturing industries – namely, manufacturing of chemicals, paper, and fabricated metals. These sectors are still valuable as a local source of employment, yet are confronting significant economic headwinds due to their limited cost competitiveness with other locations nationally and globally.


The Northeast and Blue River also include limited quantities of employment in manufacturing activities that are growing regionally, such as transportation equipment manufacturing and food manufacturing; the presence of these manufacturing sectors creates opportunities for growth. While the Northeast and Blue River’s larger manufacturing subsectors are in decline regionally, some of these areas’ smaller manufacturing subsectors have experienced regional growth – especially manufacturing of food, transportation equipment, and machinery. For example, Custom Truck has grown rapidly in the Blue River area and plans to continue its expansion. Figure 13. Northeast and Blue River Local Employment and Share of Regional Employment, 2004 to 2015

Employment 2015

Percent Change

2004-2015

Share of Regional

Employment 2004

Share of Regional

Employment 2015

Knowledge-based Sectors Real Estate and Rental and Leasing 376 -24% 3.2% 2.6% Management of Companies and Enterprises 232 -32% 1.6% 0.9% Professional, Scientific, Technical Services 174 -12% 0.3% 0.2% Finance and Insurance 157 -44% 0.4% 0.3% Information 88 -72% 0.6% 0.3% Subtotal 1,026 -37% 0.8% 0.5%

Production, Distribution, and Repair Sectors

Transportation and Warehousing 4,867 35% 9.3% 12.2% Wholesale Trade 4,726 -3% 7.9% 8.0% Manufacturing 4,397 -16% 6.4% 5.5% Construction 3,019 14% 4.9% 6.2% Utilities 840 19% 20.6% 29.7% Subtotal 17,848 4% 7.1% 7.7%

Household-serving Sectors*

Arts, Entertainment, and Recreation 1,584 48% 8.1% 11.8% Retail Trade 1,254 -40% 2.0% 1.2% Accommodation and Food Services 1,139 37% 1.1% 1.3% Health Care and Social Assistance 973 -2% 0.9% 0.7% Educational Services 149 -25% 1.3% 0.9% Subtotal 5,098 -2% 1.6% 1.4%

Other

Admin & Support, Waste Mngt., Remediation 1,088 5% 2.0% 1.7% Other Services (excl. Public Administration) 752 -63% 4.7% 1.8% Mining, Quarrying, Oil, Gas 35 100% 0.0% 3.8% Unknown 3 -95% 11.0% 1.9% Subtotal 1,877 -40% 3.2% 1.7%

Total 25,849 -4.4% 3.1% 2.9%

*Due to data limitations, the geographic area used for this analysis encompasses the Arrowhead and Kauffman stadiums, which are not actually located within the Riverfront Industrial Area. The inclusion of these facilities explains the high job counts in accommodation, food services, arts and entertainment (for more detail, see Figure 22. Zip Codes Used for the Riverfront Industrial Area's Employment Analysis in the Appendix). Source: U.S. Census ZIP Code Business Patterns for ZIP Codes 64120, 64123, 64125, 64126, and 64129, 2004 and 2015; U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.


Figure 14. Selection of Largest Production, Distribution, and Repair Subsectors in the Northeast and Blue River, 2015*

Northeast and Blue River

Employment 2015

Regional Top 20 PDR Subsector?

Positive Regional

Growth 2004-2015?

Merchant Wholesalers, Durable Goods 3,047

Truck Transportation 2,280

Merchant Wholesalers, Nondurable Goods 1,660

Transit and Ground Passenger Transportation 1,427

Chemical Manufacturing 965

Fabricated Metal Product Manufacturing 842

Warehousing and Storage 595

Food Manufacturing 546

Paper Manufacturing 438

Transportation Equipment Manufacturing 382

Support Activities for Transportation 326

Machinery Manufacturing 305

Furniture and Related Product Manufacturing 304

Plastics and Rubber Products Manufacturing 278

Subtotal Employment in Northeast/Blue River Top PDR Subsectors

13,391

Total Employment 34,251

*The 14 subsectors (3-digit NAICS) within Manufacturing, Wholesale Trade, and Transportation and Warehouse that displayed the largest number of jobs in 2015 are shown. Source: U.S. Census ZIP Code Business Patterns for ZIP Codes 64120, 64123, 64125, 64126, and 64129, 2004 and 2015; U.S. Census County Business Patterns for the 8-county Kansas City Region, 2004 and 2015; Strategic Economics, 2017.

INDUSTRY SECTOR OPPORTUNITIES Based on the above analysis, there are three primary categories of industry sector opportunities for targeting economic development activities in the Riverfront Industrial Area. These categories group industry sectors based on the need to retain, expand, or attract business activity:

1. Retention of jobs and businesses in legacy PDR industries in Northeast and Blue River: “Legacy” industries are those that are now shrinking in the region, yet heavily represented in Northeast and Blue River areas. These are essentially businesses that would be uncompetitive to start today due to relatively high operating costs compared to other regions (or even nations), but these businesses remain in the Riverfront Industrial Area because they are well-established and may own their properties. Existing businesses in legacy industries are valuable from a public perspective since they employ workers, make productive use of sites that may be challenging for reuse by other businesses, and because it is easier to retain business activity than cultivate new activity. Public sector strategies for businesses in these industries should focus on removing any local obstacles to their success that unnecessarily raise operating costs. Any direct investments undertaken by the public sector should focus on public infrastructure and other shared needs that will serve both these businesses and any future businesses that may succeed them.


Examples of retention-focused industries include: manufacturing of chemicals, paper, and fabricated metals.

2. Expansion of jobs and businesses in PDR industry subsectors that are growing in the region, require industrial land, and already exist across the Riverfront Industrial Area: Businesses in PDR subsectors that are experiencing regional growth constitute a relatively straightforward opportunity to grow business activity in the Riverfront Industrial Area. These are industries in which businesses are compatible with the existing industrial landscape of both Birmingham and Northeast and Blue River, and growth in the region overall provides a large pool of growth from which the Riverfront Industrial Area can capture additional demand. Capturing growth in these industries primarily requires the public sector to ensure zoning, access, and permitting procedures are well-aligned to accommodate investment and new development.

Examples of expansion-focused industries include: truck transportation, support activities for transportation, transportation equipment manufacturing, food manufacturing, machinery manufacturing, and merchant wholesalers of durable goods. Opportunities also exist to explore expansion of small-scale, high-value added fabrication within these industries, such as artisanal food/beverage manufacturing, or specialized machinery manufacturing.

3. Attraction of activities related to knowledge-based and household-serving sectors that require industrial land: Although this is a forward looking, exploratory option, the Riverfront Industrial Area has the potential to attract industrial activities that are related to the region’s rapidly-growing knowledge-based and household-serving industries. Potential opportunities include capturing industrial activities related to professional, scientific, and technical services or health care, as targeted in the AdvanceKC plan. Attracting these opportunities to the Riverfront Industrial Area would require an ongoing effort by public agencies to identify the ways in which growing businesses and institutions in the region may need to supplement their main business with activities that require industrial land.

Examples of attraction-focused activities include: advanced manufacturing resulting from locally-produced innovations, electronic parts, pharmaceuticals, or health-care related medical devices and equipment.

WORKFORCE AND THE RIVERFRONT INDUSTRIAL AREA Although some workers in the Riverfront Industrial Area do live in surrounding neighborhoods, the Riverfront Industrial Area draws workers from throughout the Kansas City region. Riverfront Industrial Area businesses attract workers from across the region, with a heavier concentration of workers coming from northern and eastern parts of the region, such as Liberty, Independence, north and northeastern parts of Kansas City, Missouri, and as far out as Kearney and Excelsior Springs (Figure 15). A limited number of Riverfront Industrial Area workers commute from southern and western parts of the region. The Northeast and Blue River are adjacent to a large pool of potential workers, in residential neighborhoods with high population densities, but low levels of educational attainment. This has made local hiring difficult, and represents a missed opportunity for both businesses and local communities. Although some employers interviewed for this study have been able to hire labor locally, others noted the existence of barriers to employing workers from adjacent neighborhoods, mainly due to inadequate training, and related issues such as longstanding cycles of poverty and relatively limited access to training and employment opportunities. More generally, shortcomings of the Kansas City public school


system are frequently cited as impeding the City’s economic development. Employers interviewed for the AdvanceKC planning process flagged this issue as a priority for the City to address.17 Workforce development opportunities exist in the Riverfront Industrial Area, driven by the combined assets of the presence of the Metropolitan Community College, a large potential local workforce, and employers offering job opportunities at a range of skill-levels. The Metropolitan Community College’s Business and Technology Campus, located in the heart of the Riverfront Industrial Area’s Northeast area, offers technical and hands-on training for a range of industrial, engineering, and construction occupations, helping these workers to meet the increased training needs for manufacturing and construction occupations. An opportunity exists to leverage and further strengthen partnerships between the college and surrounding businesses, especially given the interest expressed by both parties.18 A better workforce development linkage could be created between the college, surrounding neighborhoods, and Riverfront Industrial Area businesses. Planned bicycle paths and trails can help to enhance local access in the Northeast and Blue River areas. Bicycle access and safe pedestrian infrastructure are currently limited in the Northeast and Blue River. Proposed bicycle and pedestrian paths along the Blue and Missouri rivers can serve not only as a recreational amenity for workers, but also as a useful, low-cost means of accessing jobs from surrounding neighborhoods, or as a “last-mile” connection from bus lines. Low employment densities create challenges for drawing retail and dining amenities that serve and help to attract or retain workers, but opportunities may arise in conjunction with small-scale food and beverage manufacturing. All three subareas have a limited number of scattered retail and dining options. Given the Riverfront Industrial Area’s low population density, employment density (industrial uses have relatively few workers per square foot of building area), and traffic counts, only a limited number of retailers are unlikely to locate in the Riverfront Industrial Area. However, food production businesses such as breweries, distilleries, coffee roasters, and bakeries could potentially serve as a worker amenity by also incorporating a consumer-oriented component – such as cafes, retail bakeries, and restaurants – in addition to their production operations. Another possibility would be to encourage a mobile food truck route, whereby food trucks would make scheduled stops at key employment sites, such as Executive Park.

17 City of Kansas City, MO. AdvanceKC Competitive Snapshot, 2012. 18 MCC-Business and Technology, http://mcckc.edu/our-campuses/business-technology/about.aspx.


Figure 15. Home Location of Riverfront Industrial Area Workers, 2014


Figure 16. Educational Attainment in Kansas City Region, 2011-2015


Figure 17. Population Density in Kansas City Region, 2011-2015


III. REAL ESTATE MARKET CONDITIONS IN THE RIVERFRONT INDUSTRIAL AREA

This chapter assesses the Riverfront Industrial Area’s assets and challenges for attracting additional development and investment from a real estate market perspective, focusing on the physical and workforce factors that influence business location and investment decisions. The chapter describes the Riverfront Industrial Area’s competitive market position through the lens of real estate property performance and development and investment activity. This chapter focuses on industrial uses, since they largely dominate the real estate market in the Riverfront Industrial Area.

INDUSTRIAL MARKET INVENTORY AND INVESTMENT The Kansas City region’s industrial real estate market has performed well since the recession, with low vacancy rates and high net absorption, primarily driven by demand for warehouse/distribution space. The region’s industrial inventory grew by 9 percent since 2010 (Figure 18), and net annual absorption has steadily increased, reaching more than 5 million square feet in 2016 (Figure 19); all the while, industrial vacancy rates have remained below 6.7 percent since recovering from the recession (Figure 20). However, not all industrial types are performing equally: new construction of warehouse/distribution space is primarily driving expansion of the regional industrial market, and now makes up two thirds of the regional inventory; this trend matches the previously-noted rapid growth of jobs in the transportation and warehousing industry sector. Manufacturing space only grew by 3 percent since 2010, and has experienced low or negative absorption in recent years. Flex and light industrial space only represents a small portion of the regional inventory, but has experienced positive, albeit limited, net absorption in recent years. The Riverfront Industrial Area makes up 15 percent of the region’s 300 million square feet of inventory; Birmingham, which specializes in warehouse/distribution space, has lower vacancy rates and higher average asking rents than the Northeast and Blue River areas’ mixes of industrial building types. Birmingham’s industrial inventory consists almost entirely of warehouse/distribution space; vacancy rates for these uses are below 5 percent, and asking rents are comparable to the regional average. The Northeast and Blue River have a mixed inventory of industrial types, with a quarter of inventory used as manufacturing space, and 70 percent as warehouse/distribution space. Vacancy rates are higher in the Northeast and Blue River, and rents are considerably lower than the regional average, which is likely due to these subareas’ older building stock and wide variation in building conditions. Birmingham has experienced significant private sector investment activity focused on new development: the subarea has experienced significant new construction and leasing activity of warehouse and distribution space, including speculative development. Birmingham’s inventory grew by 12 percent since 2010, accounting for 8 percent of the region’s net absorption of demand for industrial space – well above its 4 percent share of the region’s inventory. Data provided by the City of Kansas City, Missouri, shows that Birmingham benefitted from $320 million in private investment between 2004 and 2017.19 Development activity in Birmingham has been driven by construction of new warehouse and distribution space (both in buildings and in improvements to underground space at SubTropolis); this development activity has been made possible by the presence of previously-undeveloped greenfield sites, and existence of large property owners and master developers such as Hunt Midwest.

19 Major Developments from 1995 to 2018, City of Kansas City, MO.


As a longstanding, infill-focused development area, recent major investments in the Northeast and Blue River were primarily a mix of public sector infrastructure upgrades to unlock future development potential, and private sector reinvestment and renovation of existing buildings. The Northeast and Blue River have collectively benefitted from significant public infrastructure investment: since 2004, over $700 million from the City of Kansas City, Missouri, the Missouri Department of Transportation, and other agencies has been invested in flood control upgrades, bridge renovation, and road repairs. These projects have helped position the Northeast and Blue River to better compete for new business activity, and have spurred complementary private investment – about $260 million since 2004 according to the City’s Riverfront Industrial Area Plan Databook. Most of the private investment in these subareas has been generated from existing local businesses, and focused on renovations and expansions. Positive success stories of this model include Custom Truck Equipment and Moly-Cop, businesses that have acquired and renovated several former-steel factory parcels in the Blue River.


Figure 18. Industrial Market Overview for Birmingham, the Northeast and Blue River, and Kansas City Region, Q2 2017

Existing Inventory

(Sq. Ft.)

Percent Change in Inventory

2010-2017

Percent of Subarea

Inventory

Vacancy Rate (%)

Average Rent Per Sq. Ft.

(NNN)

Birmingham, Riverfront Industrial Area

All Industrial 12,323,748 11.7% 100% 4.8 $4.44

Manufacturing 342,671 0.0% 3% 0 -

Warehouse and Distribution 11,273,984 12.2% 91% 4.6 $4.43

Flex and Light Industrial 117,769 0.0% 1% 12.1 - Northeast and Blue River, Riverfront Industrial Area

All Industrial 31,527,731 0.3% 100% 5.5 $3.14

Manufacturing 7,721,267 0.0% 24% 4.2 $3.20


Flex and Light Industrial 368,672 0.0% 1% 13.2 -

Kansas City Region

All Industrial 300,983,535 9.3% 100% 6.4 $4.80

Manufacturing 68,924,379 3.1% 23% 3.2 $5.27


Flex and Light Industrial 13,667,473 1.4% 5% 5.7 $9.21 All data are shown for Q2 of 2017. Source: CoStar Group, 2017; Strategic Economics, 2017.

Figure 19. Total Net Absorption of Inventory in the Kansas City Region by Industrial Category, 2006-2016

All data are shown for Q2 of 2017. Source: CoStar Group, 2017; Strategic Economics, 2017.

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Net

Ann

ual A

bsor

ptio

n (S

q. F

t.)

Manufacturing Warehouse and Distribution Flex and Light Industrial


Figure 20. Industrial Vacancy Rates in Birmingham, the Northeast and Blue River, and Kansas City Region, 2006 to 2017

All data are shown for Q2 of 2017. Source: CoStar Group, 2017; Strategic Economics, 2017.

Figure 21. Industrial Rental Rates in Birmingham, the Northeast and Blue, and Kansas City Region, 2006 to 2017

All data are shown for Q2 of 2017. Rental rates for Birmingham in 2013, 2014, and 2015 are unavailable. Source: CoStar Group, 2017; Strategic Economics, 2017.

0

2

4

6

8

10

12

14

16

18

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Vac

ancy

Rat

e (%

)

Birmingham, RIA Northeast and Blue River, RIA Kansas City Region

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Ann

ual N

NN

Ren

t P

er S

q. F

t. ($

)

Birmingham, RIA Northeast and Blue River, RIA Kansas City Region


FUTURE DEMAND FOR INDUSTRIAL SPACE Strategic Economics developed estimates of future regional demand for industrial space in the Kansas City region, and gauged the Riverfront Industrial Area’s ability to capture a share of this demand. These estimates are based on qualitative and quantitative input collected as part of this market assessment. Given the wide range of actual business activities within industrial space and rapid changes in the amount of space per employee required for manufacturing and warehousing uses, the demand estimates primarily assume continuation of long-term trends in absorption of industrial space in the Kansas City region. The estimates are also informed by employment growth projections in PDR industries. Future growth in demand for industrial space will continue to be driven by businesses seeking warehouse and distribution space; the Riverfront Industrial Area is likely to continue to capture a significant share of growth in demand for this space. As noted in the previous chapter, jobs in the wholesale trade and transportation and warehousing industries are projected to increase by 21 percent and 11 percent, respectively, by 2040 in the Kansas City region. Given anticipated growth in businesses and employment requiring warehousing, distribution, and light industrial space, the region is conservatively projected to continue its historic long-term average annual net absorption of approximately 2 million square feet of space through 2040 (matching average annual net absorption between 2001 and 2016, as estimated by real estate data service CoStar Group). The Riverfront Industrial Area could potentially capture approximately 8 percent of this growth in demand, based on historic absorption in the area and Birmingham’s increasing share of regional warehousing and distribution space. Demand for manufacturing space is likely to decline overall, but there will still be a need for additional reinvestment in manufacturing facilities and development of limited additional space to serve the needs of growing manufacturing sub-sectors. Regional employment in manufacturing is projected to continue its long-term decline, and less than 250,000 net square feet of space has been absorbed per year in the Kansas City region in the past 15 years. Net growth in demand for manufacturing may be negligible in the future, but there will still be a need for replacement of antiquated space with new facilities meeting modern user needs. This process has occurred in the Blue River area, for example, as Custom Truck renovates existing industrial buildings for its manufacturing needs, and other buildings in the Blue River area are demolished to construct new facilities. It is important to note that productivity, economic output, and demand for industrial space are less correlated to employment than they were in the past. This phenomenon, also known as the “great decoupling” of job growth and GDP growth, has become starker in the U.S. since the early 2000s. As new technologies, computers, and automated robots become more advanced and more affordable, digital labor eventually becomes cheaper than human labor – and thereby more likely to replace workers. Thus, productivity per worker continues to increase in the United States, resulting in reduced numbers of workers relative to output. The trend of greater efficiency in manufacturing is also driving the growing need for high-skilled workers.20

20 Brynjolfsson and McAfee, “Jobs, Productivity and the Great Decoupling”; Karsten and West, “New Skills Needed for New Manufacturing Technology”; Cassidy Turley, “Insights: The Innovation Age of Manufacturing.”


IV. SUMMARY OF SUBAREA COMPETITIVE ASSETS AND CHALLENGES

This chapter summarizes each subarea’s competitive assets and main challenges, based on interviews with local stakeholders (property owners, brokers, and business owners), findings from previous reports, and the employment and market analyses described above. These assets and challenges inform the recommendations presented in the following chapter.

BIRMINGHAM COMPETITIVE ASSETS AND CHALLENGES Birmingham Assets

1. Highway access via Highway I-435, Route 210, and Route 291. Repeatedly cited as a major advantage of this area, proximity to these highway routes provides North-South and East-West connections, respectively. This is an especially important asset for companies that rely on road freight, such as Federal Express.

2. Greenfield sites that enable ground-up construction of buildings, matching the needs of businesses in the region’s fast-growing transportation and warehousing industries. Birmingham’s greenfield sites allow ground-up development, including large master-planned developments like Northland Park and the Hunt Midwest Business Center. In some cases, new construction has been built-to-suit to tenants’ specifications, making it attractive for businesses to locate in Birmingham. More greenfield sites remain available today.

3. Lower risk and costs relative to industrial brownfield sites. Greenfield sites often cost less to develop than brownfield infill sites due to cost savings on environmental remediation, environmental liability risks, and demolitions.

4. Consolidated property ownership and master planned development opportunities. The small number of property owners in Birmingham enhances opportunities for coordinated, master-planned development. Hunt Midwest, for example, controls the entire portion of Birmingham north of Route 2010 and West of Hughes Road. Other major property owners include Property Reserve Inc and Norfolk Southern Railroad.

5. Unique SubTropolis facility. Birmingham’s SubTropolis facility is a 55 million square foot underground business complex, which has been expanding over time and has space to continue growing.21 SubTropolis serves a unique role as an attractor of businesses with climate-sensitive warehouse, manufacturing, and technological needs – since less energy is required to maintain a consistent temperature compared to a traditional building.

6. Proximity to the Ford Kansas City Assembly Plant in Claycomo. As a major manufacturing

facility, the Ford plant creates local demand for vehicle storage and other supplier network needs in Birmingham. The plant has primarily created demand for vehicle storage on parking lots in Birmingham, but could potentially be leveraged to attract supplier and transportation-related businesses.

21 Hunt Midwest, SubTropolis website. https://huntmidwest.com/industrial-space-for-lease/


Birmingham Challenges 1. Birmingham is better positioned to attract warehouse and distribution uses serving PDR

industries, rather than office and research and development facilities serving knowledge-based industries. Birmingham’s current growth pattern reflects its positioning as an ideally-situated industrial area focused on accommodating the region’s growing needs for warehousing, distribution, and logistics activities. Birmingham is relatively far from the region’s largest population concentrations and highly educated workforce, lacks public transportation access, and lacks worker amenities, making it difficult to reorient the area toward attracting employers in knowledge-based industries that require office or research and development space.

2. Limited retail/dining amenities for workers due to low worker densities. With the exception of a few retail and restaurant nodes, there are very few amenities for workers in Birmingham due to the area’s low employment and population densities.

3. Indirect connectivity to Ford plant. Although proximity to the Ford Plant is a local advantage, it

is difficult to leverage this proximity due to the lack of road connections between South Liberty Parkway and Route 210.

4. Other missing road connections. Additional road extensions could improve Birmingham’s connectivity, such as (1) connecting Arlington Avenue to 48th Street, currently being proposed by Hunt Midwest; (2) increasing East-West connections between Highway I-435 (or I-35) and Route 291, as currently, the only link is Route 210 or South Liberty Parkway.

NORTHEAST COMPETITIVE ASSETS AND CHALLENGES Northeast Assets

1. Excellent highway access to Highways I-435, I-29, and I-70. Repeatedly cited as a major advantage of this area by local brokers and business owners, efficient highway access is considered highly valuable, especially by businesses with significant freight needs. Front Street is also a major East-West internal throughway, providing access to sites within the subarea.

2. Excellent rail access. Kansas City is a major intermodal node for rail and river freight. Therefore, for industrial users with freight needs, access to the City’s various rail lines, including the Kansas City Terminal Tracks, is an asset. In the Northeast, some food manufacturing companies have direct access to these rail lines, such as General Mills and Cargill.

3. Existing industrial zoning that limits conflicts between land uses. The Northeast is almost entirely zoned for industrial use and is also relatively isolated from residential neighborhoods, apart from a few pockets of housing on the edges of the Riverfront Industrial Area. The industrial zoning is one of the main factors that attract businesses to this area. Having this designation makes it easier to go through City permitting and development approvals processes, and limits potential conflict with non-industrial uses.

4. Existing, varied industrial building stock. Although the Northeast’s building stock does pose

challenges, it represents an important supply of varied industrial spaces, including light and heavy manufacturing, warehousing, and distribution. This inventory is often already equipped with


utilities, parking, and freight access. Executive Park, in particular, is considered a long-established, successful industrial park in the Kansas City region.

5. Opportunities to leverage significant public infrastructure investment over the last decade to encourage growth. In the Northeast and Blue River combined, over $700 million has been invested in public infrastructure since 2004. Important improvements were made to flood control levees, roads, and bridges, thus making many sites much more attractive. Given that the City and other public agencies have already invested heavily in these areas, there is a value for the City to now leverage these investments by encouraging business growth in the Northeast and Blue River (through the use of incentives, for example).

6. Presence of the Metropolitan Community College. The Metropolitan Community College’s Business and Technology Campus teaches trades and skills that are highly applicable to surrounding businesses. The college can act as a key facilitator for recruitment between a qualified local workforce and businesses in need of trained workers.

7. Public transportation access and proximity to a large base of potential workers. The Northeast

offers public transportation access along Front Street and to the Community College, though this access is limited. The Northeast can benefit from this access and its proximity to the potential pool of workers in the surrounding higher-density residential neighborhoods.

8. Proximity to Downtown Kansas City, Missouri and other densely populated neighborhoods.

Warehousing and storage space in the Northeast area can serve businesses requiring quick turnaround, last-mile deliveries (e.g., same-day shipping).

9. Proximity to Downtown Kansas City, Missouri, and its knowledge-based jobs. The

concentration of knowledge-based jobs in the Downtown area presents a potential opportunity for the Northeast to meet the demand for spin-off activities of knowledge-based industries, such as specialized manufacturing for high-tech hardware, engineering, or medical activities.

10. Flexible reuse of historic building stock for new light manufacturing, limited retail, and arts-

related uses. In a small residential node in the western end of the Northeast, a handful of industrial buildings have been repurposed for new activities. This node, which features a consistent street grid and several historic, architecturally-appealing buildings, now boasts a concert venue (Knuckleheads Saloon), small retail (Urban Provisions and the Local Pig), and a manufacturing facility/tasting room (Rieger & Co. Distillery). Local entrepreneurs involved in the area have expressed interest to further pursue new activity, and new momentum might also extend out from the upcoming Berkley Riverfront development. In addition to potential ongoing expansion of these uses, this area sets a precedent for the type of adaptive re-use that could emerge in other nodes in the Riverfront Industrial Area. In the short to medium-term, adaptive re-use for light manufacturing (including food), arts-related, or hybrid uses (retail and manufacturing) could emerge.

Northeast Challenges 1. Limited shared identity, capacity, coordination, and focus among broker, property/business

owners, and public entities. Based on communication with a variety of stakeholders for completion of this study, it appears that the Northeast area lacks a shared identity, lacks widespread awareness of its existing businesses and uses, and suffers from limited shared coordination for prioritizing and targeting improvements.


2. Mismatch between legacy building conditions and business needs. Interviewees noted that, to some extent, the Northeast area includes a stock of buildings that are older, outdated, and not always well-equipped with upgraded interiors, infrastructure, etc.; these buildings are primarily concentrated in the western portion of the district rather than the more modern Executive Park area.

3. Disinvested and poorly maintained properties. Beyond the building themselves, another challenge for the Northeast is the presence of poorly maintained properties or parcels that appear run-down, vacant or quasi-vacant. Although some of these sites are being used for scrap yards, truck parking, or other freight-related activities, the neighborhood’s visual appearance and feel may be a deterrent to certain businesses – especially higher-end manufacturing or research and development activity, for example.

4. Workforce skills gap in adjacent areas. As discussed previously, the Northeast area benefits from its proximity to the workforce in the surrounding residential neighborhoods. However, the limited educational attainment in these neighborhoods, combined with a growing trend towards occupations in manufacturing requiring additional training, results in a workforce skills gap between this workforce and the needs of the Northeast area’s businesses.

5. Few of the available business and development incentives are unique to the area – thus

limiting the ability of these incentives to overcome the additional costs associated with reusing an older industrial site versus an alternative greenfield site. Although many incentives are available to industrial businesses in Kansas City, Missouri,22 none of these incentives are unique to the Riverfront Industrial Area nor any of its subareas.23 Therefore, the usefulness of these incentives is limited when businesses consider the additional costs of reusing a previously-developed site versus a new, modern facility developed on a greenfield site.

6. Flood risks. Public investment has significantly improved flood control in the Northeast, and these improvements have been observed by businesses active in the area. However, the risks associated with potential flooding remain a barrier for some businesses.

7. Limitations to high-speed data infrastructure. Although the extent of high-speed data infrastructure limitations is unclear, local business interviewees noted that poor access is a constraint in some areas of the Northeast. High-speed data infrastructure is increasingly important to a wide range of businesses – including advanced manufacturing businesses that transmit and receive large design and specifications files.

8. Limited opportunity for non-industrial use conversions of existing industrial buildings. Industrial buildings in the Northeast area are experiencing reinvestment and upgrades, but typically for different industrial uses rather than conversions to office or residential uses. As described earlier in this report, the Riverfront Industrial Area is distant from the region’s greatest concentrations of workers – especially workers in knowledge-based industries – and has not captured growth in knowledge-based industry sectors.

22 Examples include: property tax abatements from the Planned Industrial Expansion Authority, Ames Zone Funding from the Port Authority, New Market Tax Credits, amongst others. 23 City of Kansas City, MO (2017). Blue Valley Redevelopment Opportunity Assessment.


BLUE RIVER COMPETITIVE ASSETS AND CHALLENGES

Blue River Assets 1. Excellent highway access to Highway I-435. (See Northeast Asset #1.) A significant portion of

the Blue River area is located within minutes of an on-ramp to I-435.

2. Excellent rail access. (See as Northeast Asset #2.) Rail access can also provide surprising opportunities; for example, Custom Truck is able to use existing rails to test their rail-related vehicles.

3. Existing industrial zoning that limits conflicts between uses. (See Northeast Asset #3.)

4. Recent large investment in public infrastructure. (See Northeast Asset #5.)

5. Public transportation access and proximity to a large base of potential workers. (See Northeast Asset #7.)

6. Sites with consolidated property ownership. The Blue River has a long history as an industrial area, and has been home to legacy industrial users that had large, consolidated properties – the best example of this is the old Armco/AK Steel Plant and the old Chevrolet plant (now Leeds Industrial Park). This consolidated ownership makes it easier for new users to understand ownership patterns, assemble parcels, and acquire new property. Companies like Custom Truck Equipment are taking advantage of this and expanding their sites to these previously underutilized parcels.

7. Potential future investments by the Kansas City Port Authority. The Port Authority has plans to acquire the eastern edge of the Blue River subarea, including portions of the former Armco/AK Steel site, for water freight activities and related redevelopment of underutilized sites. Once developed, this new port will represent a significant asset, especially for businesses that have a preference for water freight shipments.

8. Planned future investments in recreation trails. The City of Kansas City, Missouri, has already

developed plans for new recreational trails along the Blue River, as well as adjacent to the future Riverfront Park, following the Missouri River. These new trails could represent a desirable amenity for workers, for recreational and commuting purposes.

9. Focused “Redevelopment Opportunity Assessment” already completed by EDCKC. This plan, completed in 2017, conducted a more detailed study of the strengths and opportunities of the Blue River, including an examination of specific opportunity sites, road improvements, as well as recommendations regarding how to improve incentives to better attract businesses to the area. This type of effort is also useful as it gets stakeholders involved, and encourages local parties to coordinate, develop a shared vision, and express specific needs to the City.

10. Emerging opportunities for reuse of industrial properties for alternative small-scale industrial users, such as artists, makers, and small-scale fabrication: Pockets of residential neighborhoods with consistent street grids mixed in with smaller industrial buildings can be found along the western edge of the Blue River – for example, near Belmont Boulevard and St. John Avenue. There is an opportunity to take advantage of the urban fabric and existing building stock for alternative light industrial or commercial uses, such as higher-value production spaces, small-scale fabrication and food and beverage production, maker and artist workshop/studio space, and showrooms. Some interviewees noted that interest is already emerging from artists and makers who


require affordable, small-scale industrial spaces. Another potential pocket of activity is in the small residential neighborhood west of Leeds Industrial Park. Although there are only limited signs of new activity (e.g., Leed’s Diner), this neighborhood has a good combination of urban street grid and smaller industrial buildings to potentially attract new uses.

11. Potential long-term future opportunities for industrial re-use on a larger scale. In the longer-term, opportunities may emerge for re-purposing of the Blue River’s larger industrial buildings or complexes for varied smaller-scale light-manufacturing, mixed-use reinvestment and/or redevelopment. While no project of this sort has emerged in the Blue River itself, a nearby project – Hardesty Renaissance – provides an interesting case study and potential model. Just a mile west of the Blue River study area, the Hardesty Renaissance Economic Development Corporation (HREDC) has begun large-scale remediation and redevelopment of an 18.5 acres site at the corner of Hardesty Avenue and Independence Avenue. This brownfield site was formerly a federal depot for storage and treatment of supplies, clothing, and chemical products during WWII. With ample vacant land and large industrial buildings that require environmental remediation, this site has similar conditions to some portions of the Blue River. The HREDC’s proposal includes preserving and remediating some of the existing buildings, and envisions varied uses including urban agriculture, food distribution, on-site commercial kitchens, restaurants, light-manufacturing space, maker/artist studios and showrooms.24

Blue River Challenges

1. Limited shared capacity, coordination, and focus among broker, property/business owner, public entities. (See Northeast challenge #1.) This challenge was also noted in the Blue Valley Redevelopment Opportunity Assessment.

2. Additional costs compared to greenfield sites. (See Northeast challenge #5.) Despite major investments in public infrastructure in this legacy industrial area (towards roads, flood control, bridges), brownfield sites themselves have higher costs and more barriers to redevelopment than greenfield sites. These costs include:

a. Demolition costs, if applicable; b. Renovation costs, if there is a mismatch between legacy building configurations and

business needs; c. Fragmented easements and difficult-to-access sites, due to the configuration of the rail lines

and river. This can add time and financial costs to getting a project underway; d. Environmental remediation costs, if applicable; both the costs and the risks associated with

environmentally hazardous sites can be prohibitive for many businesses. In the Blue River, environmental conditions are unknown at many sites.25

e. In spite of these additional costs, business incentives are not unique to the Blue River area, thus making it difficult to make this area competitive compared to cheaper greenfield sites.

3. Disinvested and poorly maintained properties. (See Northeast challenge #3.) In response, some

companies such as Custom Truck and Moly-Cop are making an exerted effort to better landscape their properties and maintain their parking lots to enhance the feel of the Blue River area.

24 Missouri Department of Economic Development, “Hardesty Federal Complex.” 25 City of Kansas City, MO (2017). Blue Valley Redevelopment Opportunity Assessment.


4. Workforce skills gap in adjacent areas. (See Northeast challenge #4.)

5. Perceptions of crime. Several interviewees expressed concern over crime in the Blue River area. It appears that this stems from the over-abundance of vacant lots, vacant properties, and run-down buildings that all have very little human activity, traffic, and street lighting. Although crime is not negligible in the Blue River area, the City of Kansas City, Missouri, has reported a steady decrease in both violent and non-violent crime in the last ten years.26

6. Access challenges due to rail and river crossings, large legacy sites, and poor road network.

Although highway access is highly efficient in the Blue River area, internal access is very poor. The large legacy sites create awkward boundaries; the river and rail lines create access challenges for individual sites, and the limited road networks makes overall accessibility difficult.

7. Flood risks. (See Northeast challenge #6.)

26 City of Kansas City, MO (2017). Riverfront Industrial Area Databook.


V. RECOMMENDATIONS BY GUIDING PRINCIPLE This chapter recommends strategies for inclusion in the Riverfront Industrial Area Plan. The strategies are intended to leverage the opportunities and address the challenges described in this report. The recommended strategies are organized around an adaptation of the draft economic development Guiding Principles for the Riverfront Industrial Area Plan, as they stood as of this report’s writing. The Guiding Principles support the vision statement and goals of the plan, and were developed based on input from the Riverfront Industrial Area plan Steering Committee and a public workshop. ED GP 1. Target business and entrepreneurial activities that complement global trends, integrate with regional growth sectors, and leverage the Riverfront Industrial Area’s local competitive strengths.

Implement recommendations of the plan’s land use map to ensure land use regulations enable growth of regionally-growing industry sectors requiring industrial land, such as transportation and warehousing, transportation equipment manufacturing, and electronic manufacturing.

Partner with EDCKC, Clay County EDC, local business organizations, and other private and nonprofit partners to explore opportunities to attract businesses tied into the AdvanceKC industry priorities.

Partner with EDCKC to retain “legacy” industrial businesses in Northeast and the Blue River Area through outreach and assistance, as appropriate. Engage in a similar partnership with the Clay County EDC to retain industrial businesses in and near Birmingham – such as the Ford Kansas City Assembly Plant in Claycomo – that impact the viability of other legacy industrial businesses within the Riverfront Industrial Area.

As part of updates to this area plan and/or efforts by the EDCKC and Clay County EDC, regularly re-examine industry composition in the Riverfront Industrial Area sub areas to gauge integration with regional and global economic trends.

ED GP 2. Encourage growth of cutting-edge and jobs-rich business activities, such as advanced manufacturing and research and development uses.

Partner with EDCKC, Clay County EDC, and private and nonprofit partners to market sites for the specified cutting-edge and jobs-rich business activities.

Explore opportunities to locate or establish business incubators in the Riverfront Industrial Area.

The City should work with local business owners and local internet providers to determine the need and appropriate locations for improvements to high-speed data infrastructure.

ED GP 3. Promote creative reuse and redevelopment of underutilized properties while integrating opportunities to grow amenities for workers.

Provide supportive zoning – based on implementation of the plan’s land use map – and regulatory incentives are in place to encourage creative reuse of industrial properties – particularly in locations with density of buildings, connected street grids, and sufficient access to support emergence of higher-density nodes, such as the western Northeast area.

Based on implementation of the plan’s land use map, work with the City to allow limited additions of retail and restaurant uses throughout the Riverfront Industrial Area.


Collaborate with other City departments to identify and remove regulatory barriers to leveraging emerging small-scale production as a means to provide amenities for workers and residents, such as food/drink sales at food/drink production facilities.

ED GP 4. Partner with regional workforce development efforts to grow jobs with opportunities for advancement, and to connect potential workers with these jobs.

Coordinate with Metropolitan Community College, Full Employment Council, Kansas City Power and Light Company, and the regional workforce development boards to establish and market apprenticeship programs and job pipelines between students and employers in the Riverfront Industrial Area.

Work with KCATA and Kansas City Parks and Recreation to enhance low-cost multimodal access to area jobs via bus and bicycle trails/routes.

ED GP 5. Support private sector investment through complementary public actions focused on public-private partnerships, investment in infrastructure, and collaborative resolution of site-specific constraints.

Regularly convene local stakeholders in Northeast Industrial, Blue River Valley, and Birmingham sub areas to enhance information sharing, capacity for action, and to build awareness of development/investment opportunities.

Establish a single point of contact or an interagency commitment to ensure that business owners can easily understand all available incentive programs across multiple agencies.

Recognizing that Northeast and the Blue River Area present unique challenges to businesses compared to greenfield locations, partner with EDCKC to explore creation of additional incentive tools unique to these areas.

Partner with the Clay County EDC to apply existing incentive tools in the Birmingham area when deemed necessary and appropriate.

Work with other City departments and the Missouri Department of Transportation to prioritize improvements to the condition and maintenance of public streets and facilities throughout the Northeast and Blue River Area, and to identify and resolve obstacles to easy navigation of these areas.

Remove physical blight by undertaking code enforcement actions and partnering with the KCEDC or Clay County EDC (as applicable) to present information to property owners and businesses about available financial incentives and assistance that can help overcome costs of reinvesting in their properties.

Undertake improvements to the transportation network specified in this plan.


VI. APPENDIX Figure 22. Zip Codes Used for the Riverfront Industrial Area's Employment Analysis

market study key findings - kcmo.govkcmo.gov/planning/wp-content/uploads/sites/9/2017/... · market...

Documents