Allen Bell, the city of Wichita’s economic development director, volunteered some information during Tuesday’s council meeting that really didn’t register at first.
Bell said that the city, in sending out fliers to sell 2.3 acres at First and Waco – no RFP, just fliers – asked interested parties to offer up their last, best offer for the land.
But a closer look at the offers submitted by the Greater Wichita YMCA and InSite Real Estate Group raises a question: How do you define the best offer?
The InSite offer was for $700,000 for the land, on which 60,000 feet of office space would be built within the next five years.
The Y package provided by city officials didn’t include a cash price, but included a laundry list of programs similar to what the Y offers at its other Wichita locations. It’s an impressive collection of community programming, to be sure. But there’s no offer of money.
So how did city staff arrive at the Y offer as the best?
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Not to mention long term effects:
Insite – for profit, improved land, taxable, ongoing revenue for the city
Y – not-for-profit, improved land, not taxable, no future revenue stream to the city.
The Y’s community programming is impressive but remember, much of it is already there/nearby, so this in not a ‘new’ attraction for the city.
Yes, I am a Y member.
Nobody has done anything on that sight. It sat very empty for many, many years. Although I would consider it a prime property for any developer. But I’ve seen it just a wasted lot, and for years just sat there and deteriorated.
Yeah, a few years ago, the city did something to it. But they just tore the fences down and painted parking strips and used it as a remote public parking lot for Century II events.
While I love to see something there, especially a high rise to add to our cityscape, the YMCA does have the cash to build something there and make it useful.
Although InSite Real Estate Group has a good offer. But 5-years to build and no real guarantees about that is a little sobering. Not that I don’t think InSite wouldn’t build there, but the way things go in this city on any development, it tends to be over-promised, under-delivered and painfully slow to complete.
On a depressed economy, the time to act on any special project and development is now.
Joe – the reason the parcel has sat vacant is that the City has owned it and done nothing with it. sort of like so much of that land just north of Kellogg between Main and the river. A nuber of developers wanted to build there for downtown business but the City blocked them. They ended up at the Waterfront out east.
The lot was vacant for several years before the city purchased it. In 1998 or 99 it was used for Mexico Magico. The promoter of that event told me he had tracked down the owner to rent the lot, and that the city had been trying to locate the owner for some time. Shortly after, the city purchased the land and Mexico Magico got folded into RiverFest for a couple years before splitting off. The city was hot to buy it but hasn’t done anything “development oriented” with it. Right now I like the idea of parking. In case nobody noticed, it’s at a premium if there is more than 1 thing going on at Century II. Who’s lining up to buy the Y’s current location?
At least it wasn’t those shady Minnesota guys. If anyone is going to buy the land let the City try to keep as much money in the local economy as possible. I really don’t care who buys the land, as long as it is productive.
Shady Minnesota guys, huh? Well, KS conservative, if you remotely had a clue as to what is going on in downtown you would know Real Development has had an office with full-time staff in Wichita for the past five years. Yes, the CEO is from Minnesota, but they office out of Wichita. Maybe if the Eagle would start referring to them as Real Development instead of the Minnesota Guys, people wouldn’t assume they are trying to make a quick buck and bail. I’ll excuse your ignorance this one time, but make sure you get your facts straight before you start accusing people of shady business practices.
I agree PlanBig. I don’t see anyone complaining when we sell aircraft to out-of-towners; why get upset when they invest in our city?
And actually, the Minnesota Guys – with apologies to PlanBig – seem to be here more often than they’re in Minnesota.
A 60,000 square foot office building will generate almost $54,000 per year in city property tax revenue. No county or state, but city. Over the next 10 years, that’s closer to $600,000. Coupled with the purchase price, that close to $1.4 Million. That’s a lot more than just giving the dang land to the Y. Do I like the Y? Yes, but I’m also a taxpayer and when it comes to government, I’d rather have some tax being generated as opposed to city hall raising the mill levy and increasing my taxes.
I think that the Y’s can be a good thing for the community. What I do not agree with is the idea of them not supporting many local businesses with purchases. One that really chaps my rear is that after dealing with a local exercise equipment company and finding out that they do not spend hardly if any of that money locally does not set well with me and others. We are not talking about a few hundred dollars either. We are talking about hundreds of thousands if not millions of dollars. When they put purchases out for bid the prices are slashed because those companies want that business. If they will do this they will not only support the local economy but maybe even save money for other purchases, activities or projects.
How does paying more for equipment save them money? The whole idea of a bidding process is to get the bast price available.
What’s amazing is that most of the development along the river has now been done with nonprofits. No tax revenue on this property that is considered the most valuable and desirable in the city. Poor planning, missed opportunities, a true legacy of City Government. Add the City Library across from this property and you have no tax generated on the downtown stretch of the river. Great planning Wichita…..
Here’s the interesting part of this discussion, as I see it.
The rumor on the street is that the Y’s Market property – all or part, I don’t know – may be offered to the city in exchange for the riverfront land.
That’s $2.8 million worth of property near downtown’s Government Row, that I’d think would have significant leasing potential – or at worst, be prime ground for some badly-needed parking in the area.
If the rumors are true, it seems to me that the city would look pretty fiscally prudent working a Y deal.
Seems to me it would have been a good idea to at least float some compensation possibilities.
Interesting point Bill. And, in a disagreement with prairiedog, I like the idea of at least some of the riverfront being public access. I don’t know that it ahs all gone “non-profit”; Gander Molehill might be non-profit but it isn’t supposed to be. Nor all those over-priced condos along Main.
I think the big City failure there has been its attempts to control what should be private development – e.g. WaterWalk. A number of private developers had wanted to build there and they were chased out to the Water Front.
Market Street … interesting. Not riverfront but perhaps actually better located for law-type offices etc.
There’s nothing at all wrong with some of the riverfront being public access. And it’s worthy of a reminder here that even the critics of this deal admit the Y will be a good project for First and Waco. There’s no question at all about that – a new Y will be an asset wherever it goes.
It’s all in shaping the message, I suspect.
Bill – I would place some restrictions on a riverfront Y – that I think they would welcome. I want it ‘open’ to the river and I want public access to my river – for non-members too.
Then – to make a few extra bucks – rent bikes and canoes. Again – to non-members.
What I do NOT want is another warehouse on the river like Gander Molehill.
Speaking of Gander, a reader made an interesting point to me about the Y the other day.
WaterWalk needs a traffic driver. The Y draws thousands every month.
Wouldn’t the Y be a perfect fit for WaterWalk?
Hmmmmm …