The Kansas City City Council has approved an ordinance that will provide developers the funding needed to complete phase one of Parade Park’s $300 million redevelopment, following a proposal from Mayor Quinton Lucas, Third District Councilwomen Melissa Robinson, and Melissa Patterson-Hazley.
The council-approved measure gives developers — a joint venture between Flaherty & Collins and local developers Twelfth Street Heritage — the final $19 million needed to begin construction on the project this year. The funding represents the city’s largest recent investment in affordable housing and in the predominantly Black East Side.
“Parade Park Homes represents both Kansas City’s heritage and our future–and I am proud and honored to be the mayor privileged to ensure this historically Black neighborhood will be strong for generations to come,” said Mayor Lucas. “Today’s Council approval ensures Kansas City will continue to honor Parade Park’s legacy while also creating modern, affordable housing that keeps this community intact and thriving.”
Parade Park Homes was the nation’s first Black-owned housing cooperative and had many famous former residents before defaulting on loans and being foreclosed on last year.
The city has shown a particular interest in the project that sits at the north end of the historic 18th & Vine Jazz District that the city has invested significantly in revitalizing.
“There’s long been talk within city council chambers about how the city cares about all citizens and all corners of the city deserve investment,” said Gavriel Schreiber, general counsel with the mayor’s office. “This ordinance is a chance for the city council to walk that walk.”
City & Federal Money Coming to the Project
Parade Park’s redevelopment will be a multi-phase large-scale project over several years with projected cost of nearly $300 million. The city has now secured a portion of the necessary $148 million in funding for the first phase of the project, which is expected to begin construction this summer.
The city’s financial support includes:
- $12 million no-interest loan from the Housing Trust Fund
- $5 million from the Central City Economic Development (CCED) sales tax
- Reallocation of $2 million previously appropriated for dangerous building demolition
The $12 million Housing Trust Fund loan will be repaid through six annual $2 million payments starting in fiscal year 2025-2026, which the mayor’s office says ensures that the money returns to fund other affordable housing initiatives throughout the city.
The redevelopment project received a boost and city funding became a priority after Congressman Emanuel Cleaver II announced in January he had secured $15.5 million in federal funding for the project through HUD’s Section 202 Supportive Housing for the Elderly Program.
The funding plan also includes the establishment of a dedicated Parade Park Homes Future Fund, a mechanism designed to sustain ongoing development and community support in subsequent phases.
“The passage of this ordinance is a signal from my colleagues that they support creating more diverse housing that appeals to multiple ages, income and family size,” said Councilwoman Patterson Hazley. “This project happens to sit in the 3rd district, but it is clear that it benefits the entirety of Kansas City. I am excited to see this project come to fruition.”
Project Scale & Affordability
The ambitious redevelopment project will ultimately create 1,085 housing units of apartments and townhomes across three phases, including 60 for-sale units priced from $200,000 and approximately 15,000 square feet of commercial space.
Phase one of the project will create 480 housing units:
- 42 units at 30% AMI: For very low-income families (~$32K or less for a family of four)
- 48 units at 50% AMI: For lower-income families (~$53K or less)
- 150 units at 60% AMI: For moderate-income families (~$64K or less)
- 240 units at 60-80% AMI: For families making up to ~$85K
In total, the project will include 465 affordable rental housing units (30% to 60% AMI), 560 workforce rental housing units (60% to 80% AMI), and community green spaces. The development plan also includes provisions for cultural preservation to honor Parade Park’s historic significance.
*AMI = Area Media Income.
Julie Collier, vice president of development for Flaherty & Collins, explained during committee testimony that rents would accommodate various income levels and would range between $500 for a studio and $2,000 a month for a three-bedroom.
“The first phase will have 80 units set aside for senior housing and 280 units will be income-restricted affordable housing,” said Collier.
Protecting Former Residents & Redevelopment Timeline
The relocation of Parade Park residents has been carefully managed throughout the process. According to project data, 62 households from Phase 1 have already been relocated, with three residents becoming first-time homeowners.
Importantly, 36 residents (58%) were approved and issued tenant protection vouchers, with 20% experiencing a reduction in housing costs. Nearly 50% of relocated residents moved within two miles of the Parade Park property.
“They [former residents] have the first right of refusal,” said Dwayne Williams, president and CEO of Twelfth Street Heritage Development Corporation. “What that means is that if they decide they want to come back, they’re the first group of people to get a chance to come back to Parade Park.”
Twelfth Street Heritage has partnered with Indianapolis-based Flaherty & Collins Properties to lead the redevelopment. The partnership took ownership of the property in March 2024 after the city purchased it from HUD following foreclosure. The team includes a number of specialized partners including Jason Parson for communications and neighborhood liaison work, Moody Nolan/Pendulum for architecture and engineering, and Confluence as the landscape architect.
With this final piece of the funding puzzle now complete for phase one, the developers plan to break ground this summer. Construction for phase one is expected to take 16-24 months. The entire three-phase project is expected to take up to seven years, with Phases 2 and 3 offering additional affordable units and homeownership opportunities.
“This monumental project is the result of dedicated teamwork and a shared vision to honor and protect our community’s interests,” said Councilwoman Robinson. “I look forward to the groundbreaking ceremony and, more importantly, to breaking bread in residents’ homes when they return to a fully redeveloped Parade Park.”
