Financial But-For Analyses
We assist the EDCKC in reviewing and structuring public financial assistance packages for large-scale development projects across the city.
Economic Development Corporation of Kansas City (EDCKC)
Real Estate Development Advisory, Public-Private Development Advisory
Kansas City, MO
EDCKC offers a range of public financial assistance tools — including property tax abatements, TIF, sales and income tax reimbursements, and construction material sales tax exemptions — to support challenging and catalytic projects. We were engaged to conduct rigorous independent reviews to determine the level of assistance, if any, required to make projects financially feasible.
Work Completed
Assessing the reasonableness of key project assumptions including development costs, projected revenues and expenses against industry data and comparable projects
Reviewing proposed capital stacks to evaluate equity contributions, financing source status and assumed terms
Preparing independent projections of project returns and financial gaps
Analyzing developer returns with and without requested public assistance packages
Conducting sensitivity analyses to determine appropriate structure and term of public assistance
Recommending deal structures such as construction cost true-ups and upside sharing arrangements
Results
To date, we have reviewed 57 projects representing over $3.1 billion in anticipated private investment. Projects evaluated have spanned nearly all major land uses — both new construction and adaptive reuse — and have involved complex financing arrangements including conventional debt and equity, historic tax credits, PACE financing, and EB-5. These projects have contributed to the remediation of contaminated sites, preservation and adaptive reuse of historic structures, development of workforce housing, and revitalization of Kansas City's downtown core. Several projects have been completed or are under construction.
