KCADC highlights impressive 2020 scorecard at annual meeting

The Kansas City Area Development Council (KCADC) shined light on some impressive numbers this week during its annual meeting; including attracting 13 manufacturing, eCommerce and professional services companies in the last 12 months that will invest more than $1 billion and create 3,789 jobs in the Kansas City region.

The event was streamed digitally and broadcast on TV with over 2,000 business leaders, civic partners, national site location consultants, corporate executives and individuals across the country who have an affinity to KC.

“KC placed a strategic investment several years ago in our market’s inherent strengths for manufacturing, logistics and e-commerce. This investment led to the creation of KC SmartPort, which elevates KC’s competitive advantage through consistent messaging to companies in these industries, and is paying dividends today,” said Tim Cowden, president and CEO of KCADC.

“With more than 231 million square feet of existing industrial space, ample land for new buildings, a skilled logistics workforce and robust power and fiber infrastructure, Kansas City is primed for additional growth in the industrial sector,” Cowden said.

In 2020, KCADC helped attract prominent companies, including an 880,000-square-foot distribution center for Urban Outfitters, Inc., a 1,200-person e-commerce center for Chewy, Inc., and manufacturing facilities for Dot’s Pretzels and Tuthill Corporation, among others.

“Our priorities in identifying the home for our new omni-channel distribution center focused on people, and it was the quality of the local workforce that convinced us this is the right place to be,” said Dave Ziel, chief development officer of Urban Outfitters, which plans to open its $350 million facility in 2022.

The Kansas City region ranks No. 3 in the U.S. for industrial construction activity in cities with populations between one and four million, outpacing larger markets including Denver and Seattle. KC has seen 14.8 million square feet of industrial construction in 2020.

With a stronghold for financial, shared services and tech operations, KCADC also celebrated national recognition for Kansas City for professionals and future investment, including its ranking by Business Insider as the nation’s best “work from home” city, and its status as a Top Mid-Size City for Future Projects by the Site Selectors Guild.

“With a lower cost of living, free Wi-Fi downtown, access to diverse housing options and an abundance of lifestyle amenities, Kansas City is an ideal spot for remote workers leaving larger urban areas due to the pandemic,” said Jill McCarthy, senior executive of corporate attraction, KCADC.

“And there are plenty of new jobs for skilled professionals that relocate here, McCarthy said.

There are currently 49,000 open jobs in KC, and more than 15,000 jobs are created each year. Tech and highly-skilled jobs are growing faster in KC than in Seattle, Austin, Chicago and NYC, according to the Bureau of Labor Statistics.

“During such an uncertain time, KCADC’s success this year speaks to the highest level of professionalism, customer service and emphasis on regional collaboration that continues to move KC forward,” said Lisa Ginter, CEO of CommunityAmerica Credit Union and senior co-chair of the 2021 KCADC Board of Directors.

“This community has tremendous heart, and I look forward to continuing to make a positive impact on the KC region by supporting and amplifying the ongoing efforts of KCADC,” Ginter said.

In 2021, Lisa Ginter succeeds Dave Hall, executive vice chairman at Hallmark Cards, Inc., as senior-co chair of the KCADC Board of Directors. Brett Gordon, chairman of the board at McCownGordon Construction, will join KCADC’s volunteer leadership team serving as incoming co-chair, and Brian Roberts, chief diversity officer at Lockton Companies, will serve as treasurer.

“I’m looking forward to working alongside Lisa Ginter and Brett Gordon as KCADC actively positions the KC region as a top destination for business and talent in the year ahead,” said Roberts. “I can’t wait to see what 2021 brings for KCADC and the KC region.”

CushWake, Cerner team up to reboot sprawling Summit Tech building

Cerner has plugged into the Kansas City commercial real estate market, teaming up with Cushman & Wakefield to rebrand and launch the Lee’s Summit Integration Campus (LSIC), a 500,000-square foot tech hub at 777 NW Blue Parkway. Brokers were invited to a Feb. 14 luncheon and tour of the project, which comprises the north building of the former Summit Technology Campus (STC).

“We think it’s important that all of you know, as you bring prospects through, that this project carries with it quality ownership (Cerner) that is committed to providing a quality tenant experience and the promotion of health and wellness,” Cushman & Wakefield Director Suzanne Dimmel told brokers. “STC at one time was under one ownership, but the campus’ south building is now owned by a private group, and Cerner owns the north building, or LSIC.”

The rebranding effort includes brightly colored marketing materials and planned signage with the tagline, “The convergence of power, data, technology, people and community.” Current tenants include large data center and call center operations, with available space ranging from 5,000 to 147,000 square feet.

Recently added amenities include a remodeled cafeteria and employee lounge with flat-screen TVs, and a fitness track with “wayfinding corners” to track physical activity is in the works. Tenant signage options are available at LSIC’s various entrances, which are easily accessible to abundant surface parking.

“This campus has a bright future, and we have a lot of great space available here,” CushWake associate Leonard Popplewell said, adding that prospective tenants can receive smartphone-accessible 2D and 3D interactive conceptual floor plans tailored to their needs.

Jill McCarthy, vice president of corporate attraction for the Kansas City Area Development Council, told brokers that LSIC will be shared with site selectors and out-of-town companies scouting locations in the metro area.

“There’s a lot of project activity right now,” McCarthy said. “We are doing a lot to showcase buildings like this, and this type of product gives us something to talk about when speaking with clients and consultants.”

Lee’s Summit Economic Development Council President and CEO Rick McDowell reminded brokers of incentive options available, proximity to a strong workforce, and local education system that includes an award-winning K-12 school district, community college and 4-year college. Lee’s Summit Mayor Bill Baird thanked Cerner for its investment and presence in the community and reiterated the City’s pro-business environment.

CushWake is offering an incentive to brokers who bring the campus its first 20,000+ square foot deals: A free trip to Scottsdale or San Diego in the form of a $5,000 trip credit. The event included lunch catered by Third Street Social and guided tours.

For more information on LSIC, email suzanne.dimmel@cushwake.com or leonard.popplewell@cushwake.com.

Jill McCarthy takes corporate attraction lead at KCADC

After spending the last 17 years of her career with the Kansas City Area Development Council, Jill McCarthy has now been named senior executive of corporate attraction. We sat down with her to discuss how her career has taken her to new heights and what new initiatives the organization is pursuing to help attract more business to the Kansas City area.

ON HER CAREER

“When I first moved here, I accepted a job with the City of Shawnee as an economic developer. I knew nothing, but was blessed to be in Kansas City with this great group of economic development professionals – Blake Schreck, Tom Riederer, John Engelmann, Charley Vogt, Mark Dawson. Everyday, I’d call up someone and say ‘This is what I’m looking at. What can I do?’ I felt like I was on the ground training from some of the best in the business. Six years in, Steve Johnson – who led economic development business attraction team for KCADC – said they were creating a position and asked if I wanted to throw my hat in the ring… Now I’ve been here almost 18 years working in business attraction, whether that’s project development, working with companies, working with our local economic developers, and relationship building with our consultants. It really is a people business; It’s about putting the right people at the table at the right time. Some of it is intuitive, while other parts are very detail oriented. You have to really manage a project from beginning to end. You have to be a good listener so you understand what the goals of the client team are, and match those goals with a Kansas City regional success.”

KCADC’S NEWEST GOALS

“We’ve relied heavily in the past on consultants – real estate advisors, accounting firms, a law firm, a boutique site location consultant – anyone advising clients on where to look in the U.S. for expansion, relocation, or even those that are downsizing and looking for a more affordable market. We’ve had great success at it, but we feel like we’ve relied upon that very heavily and that maybe this is an opportunity to add more value, so we’re doing two things:

“First, we’re contracting with a couple of organizations that will go direct to companies and start a conversation. For example, if an e-commerce company based in Virginia has a headquarters and a manufacturing facility there, but maybe they don’t have a distribution center west of the Mississippi, that’s a prime target for us. We need to start a conversation with them. It doesn’t mean they’re going to put an 800,000-square-foot e-commerce center in Kansas City this year, but it does mean that we’re then on their radar, they understand who we are, and as they get ready to make a move like that, we should be at the top of their list. We’re doing some things in some sectors like manufacturing, data centers, IT, e-commerce, and shared service centers. They all have different triggers, so we’re in the process right now of defining those triggers to make that an effective campaign for us.

“Secondly, Tim and I have always been generalists and have shared a big bulk of the projects we’re working on. And Chris [Gutierrez] with SmartPort has always led our logistics and distribution. We’ve tag-teamed lot of automotive/manufacturing projects, and Kim [Young] has led all of our Animal Health and Bioscience. But since we’re putting more projects into the pipeline and creating more work, we need more project people – but we don’t necessarily want to add staff. So we’re looking at four members of our team that will be taking on project work specifically and are in the process of training them. We have a very systematic, client-driven approach. Certainly the client’s needs rise above all else so we’re there to advocate for them, but to also make the best deal possible for the region. A deal that’s good for a client but isn’t good for a community is a bad deal, and we don’t ever want to be a part of that. It’s our job to make sure everyone understands what the benefits are – both ways.”

HOW THE REAL ESTATE COMMUNITY CAN HELP

“On the real estate side, industrial and distribution has done a phenomenal job of spec build. Last year I think about 8 million square feet of spec build – and it filled. And we’re on pace to do the same thing this year. It is a mentality of ‘Build it and they will come.’ You’re seeing growth all around the metro to that effect; It’s not in one park or one location – it really is region wide. With manufacturing, it’s harder because a manufacturing building is much more expensive than a logistics building. It’s heavier floor, heavier power, so most developers will not build spec manufacturing or spec data centers; Those things that have tremendous cost. But we don’t have a lot of available product, and that is a challenge for us. We’re working on the data center side with a couple of national firms that are looking at Kansas City for an opportunity to build more of a data center park, and it’d build segmented at a time. If we’re able to capture that, it’d be all new build but it’d be a systematic build. That’s one way of doing it. On the office side, we do have office product around town. We don’t have tremendous vacancies but at the same time we do have the ability to showcase anything from the Northland to far south to west to east. So that’s an asset for us right now. There’s also talk about some developers about spec office build, and we’ll see if that kicks off. Anytime there’s new build going up it gives us more product to talk about.”

ON KANSAS CITY’S WEAKNESSES

“There are a few challenging points when it comes to selling Kansas City, some of which you can’t change because you are what you are. The product is what the product is, and I think we’ve always hung our hat on process and being able to control the process and build relationships; That’s what has made the difference for us. But occasionally, we’ll work on a project where it may be a 1,200-person shared service center, and it may come down to us versus Dallas. Well, Dallas has an 8 million population while we’re just over 2 million. And while unemployment may be 4 percent in Dallas, it’s 3.8 percent here and things are tight. In Dallas, they may just have more numbers to pull from.

“Additionally, companies have one of two minds: they either want to locate near similar companies so they can all benefit from training programs in the area and talent and all of those things that are inherent to the cluster effect, or I’d rather be a big fish somewhere else where no one else is doing what I’m doing. Sometimes we benefit from one; sometimes we benefit from the other. You can lose on either one of those as well.

“I personally would love to see a new airport. The face of our city often is the airport, and it’s does not have the curb appeal that it should. That does occasionally work against us. But that’s my personal opinion.”

KANSAS CITY’S SELLING POINTS

There are a million selling points. Certainly central time zone, excellent work ethic, and a very talented workforce. There’s just a vibe going on in Kansas City that people see. It doesn’t hurt when you win a World Series. It doesn’t hurt that the Chiefs made it to the playoffs. Sporting KC is strong. We have a lot of things going right now: the strength of our museums, our amazing philanthropic community. Young professionals can also get engaged in boards and start making a difference. There’s an opportunity to impact your community at age 25 where you’re 45 maybe to get on a board and 55 to get a board seat. You’re always waiting to do something that creates value where you live. That really adds to the vibe for Kansas City.

OUTSIDE THE OFFICE

I’m a bit of an arts and sports nut. I have season tickets to Starlight, the Balllet, the Theater League, the KC Rep. I’m a member of the Nelson, Union Station, the Arboretum of Overland Park. We also take in a ton of Royals games, and my husband coaches wrestling. In fact, this week the Big 12 wrestling championships are here in Kansas City and I’m a team lead for that, so I’ll be pretty well embedded into the world of wrestling. We do a lot of fundraising for the world of wrestling and I love dogs. Our son went to school at St Thomas Aquinas, graduated and went to West Pointe. He graduated a few years ago so we’re following him around the world as he goes.

FINAL THOUGHTS

“I’m extremely passionate about what I do. Love my job and the people I work with. I feel blessed to work with top notch organizations around KC that support KCADC. I think everyone really buys into the mission of what we’re doing and supports us. There are so many members of or even just members of our investor community that I can call up, and they may or may not get anything out of the project but I can ask them to come to a dinner, talk to a client, and they always say yes. No one ever says no, and I think that’s incredible.”