A tax abatement for a proposed Kemper Arena renovation have been approved, allowing the plan to overhaul the venue to move forward.
Foutch Brothers is looking to finalize its proposed renovation of Kemper Arena in the early months of 2017. The proposal from the group calls for the venue to be converted into a two-floor arena that will host tournaments and other events, while incorporating modern office space.
One of the incentives Foutch Brothers had requested in planning the project was a tax abatement. That requested was granted by the Planned Industrial Expansion Authority, and will prove to be a key component in the arena’s finances. More from The Kansas City Star:
Under the expansion authority plan, Foutch gets a 100 percent property tax abatement on the arena and its improvements for 10 years, then a 50 percent abatement for the next two years. Foutch, CEO of development firm Foutch Brothers, will pay property taxes on the land for his project, which will amount to $30,000 a year.
That $30,000 doesn’t sound like much, but it’s more than the land had been paying in taxes, which was nothing, for decades while the city owned it.
The proposal received a key boost last year, when Kemper Arena was added to the National Register of Historic Places–which makes this project eligible for tax credits. The venue opened in 1974, hosting the NBA’s Kansas City Kings from 1974-85, and was the site of several notable events, including the 1976 Republican National Convention and the 1988 NCAA Men’s Final Four.
The last step for Foutch Brothers before the project begins will be to finalize the purchase of the arena from the City of Kansas City. Based on a naming rights agreement with Mosaic Life Care, Kemper Arena will become Mosaic Arena when the project is complete.
Rendering courtesy Foutch Brothers.