St. Louis Developers Face $1M Debt While Vowing Revival of Historic Kansas City Landmark

St. Louis Developers Face $1M Debt While Vowing Revival of Historic Kansas City Landmark

The “Katz on Main” project in Kansas City—a historic redevelopment of the famed 1934 Katz Drug Store facade and clock tower—is showing signs of renewed life.

However, the vision of preserving this iconic landmark comes with a major hurdle: nearly $1 million in unpaid mechanic’s liens.

While the St. Louis-based developers promise progress toward completion, neighborhood stakeholders remain cautiously hopeful amid financial and legal complexities.

Legacy and Project Overview

  • The project preserves the 20,000-square-foot Katz Drug Store, once the world’s largest drug store and notable for its early air conditioning and Moderne clock tower. It has been designated on the Kansas City Register of Historic Places.
  • In 2021, the city greenlit a $37.6 million luxury apartment development by Lux Living of St. Louis, offering 190 units, a 175-stall parking garage, and substantial tax incentives— including 75% property tax abatement for 10 years, followed by 37.5% for the next 15 years—on the condition that the landmark façade be restored and repurposed as a lobby, café, and rooftop pool lounge.

Current Status and Tenant Uptake

  • The apartment complex is taking shape: dozens of apartments are completed and leasing as of January, with about 40 tenants residing in one-bedroom units renting for approximately $2,000 per month.
  • However, the historic facade restoration is stalled. The clock tower and front brickwork remain unfinished despite being a core project commitment.

$1 Million in Mechanic’s Liens

Breakdown of Claims

  • A staggering $1 million in liens has been filed against the project for unpaid contractor work:
    • Epic Concrete: $648,000 (now paid).
    • Contract Services Corporation (steel-fabrication): $395,000—still unresolved; negotiations for settlement are underway.
    • Additional liens from other firms: Blue Chip Roofing & Waterproofing ($230,803), Lion’s Plumbing ($301,650), St. Louis Electric ($396,510), L&W Supply ($29,851), among others—bringing cumulative liens close to $1 million.
    • Most other claims have since been paid.

Developer Response

  • The project’s developer insists that the lien issues are not obstructive. A project manager reassures that the majority of contractors remain engaged and believes the project is in the final stretch—“on track for substantial completion this year and full completion early next year.”
  • Leasing agents inform tenants that the historic Katz portion is expected to be finished by January or February.

Community Reactions & Local Oversight

  • Neighborhood advocates, while expressing frustration over delays, continue to support the project for its contributions to housing:
    • A neighborhood leader praised the units as much-needed housing in Midtown, even as the historic restoration lags.
    • Local council members raised alarm over the lien filings—calling them red flags—and pushed for consistent monitoring and progress, including completing public streetscapes ahead of the streetcar’s arrival.
  • City officials emphasize that temporary certificates of occupancy were issued solely based on safety and code compliance of residential units, and not on historic components. The city continues to oversee compliance given the project’s tax incentives contingent on facade preservation.

Summary: Katz on Main Project Snapshot

ElementDetails
Historic Landmark1934 Katz Drug Store, Moderne clock tower, listed on historic register
DeveloperLux Living (St. Louis-based)
Project Scope190-unit luxury apartments, 175-car garage, historic lobby/café, rooftop pool
Tax Incentives75% abatement for 10 years; 37.5% for 15 years
Tenant Occupancy~40 tenants, $2,000/month one-bedroom rents
Mechanic’s Liens TotalNear $1 million
Major Unpaid Liens$395K (steel work), others now paid
Developer’s Completion TimelineSubstantial completion this year; finish historic portion Jan–Feb
Local OversightCertificates issued; city monitoring adherence to historic preservation

The Katz on Main redevelopment has entered a pivotal phase: the modern apartments are filling up, but the heart of the project—reviving a historic Kansas City icon—remains unfinished and financially encumbered.

The $1 million in mechanic’s liens underscores the tension between aspiration and execution. Yet, both developers and neighborhood stakeholders say they’re committed to preserving the cultural legacy of the Katz landmark.

With the streetcar launching nearby in October, the project’s outcome holds symbolic and practical significance for Midtown’s transformation.

Ultimately, this will be watched as a test of whether grand architectural intentions can align with fiscal and civic responsibility in urban redevelopment.

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