39th and Prospect ALDI Construction Moves Ahead with Super TIF Approval
City of Kansas City, Mo., Third District Councilman Jermaine Reed and Second District At-Large Councilman Ed Ford co-sponsored an ordinance to approve additional Tax Increment Financing (TIF) for the 39th and Prospect TIF Plan. Tax Increment Financing (TIF) is a financing and development tool that allows future real property taxes and other taxes generated by new development to pay for costs of construction of public infrastructure and other improvements. TIF encourages development of blighted, substandard and economically underutilized areas that would not be developed without public assistance. The 39th and Prospect Super TIF will finance the construction of an ALDI grocery store at the corner of 39th Street and Prospect Avenue.
“I would like to thank Councilman Ed Ford for co-sponsoring the ordinance,” said Councilman Reed. “This lot has been sitting empty for quite some time and it’s something that residents in the area are waiting for.”
Councilman Reed and Philip Klawuhn, an attorney representing ALDI Inc., testified before the Joint Committee of Planning, Zoning and Finance on March 21, 2012 in support of lifting the cap.
The original TIF ordinance for the 39th and Prospect Plan had a $625,000 cap. Lifting the cap allows the redevelopment team to complete the process and help develop housing options in the surrounding area.
“This will present a situation where we are in a better situation to contribute to the Neighborhood Housing Assistance Program of Ivanhoe Neighborhood Council,” said Klawuhn.
Fourth District At-Large Councilman Jim Glover supported lifting the cap to produce more sales revenue at the grocery store.
“We need to build housing. We can’t just leave an ALDI there by itself and expect without housing addition, without rebuilding the neighborhood, for it to survive,” Councilman Glover said.
On March 22, 2012, the full council voted to lift the cap. The project is expected to be finished before the end of the year.