Contact: Leanne Boyer 202.224.5721
Wednesday, October 13, 2004

Wednesday, October 13, 2004 http://bond.senate.gov

BOND ANNOUNCES $800,000 FOR KANSAS CITY COMMUNITY GROUPS TO SPUR URBAN CORE DEVELOPMENT

KANSAS CITY, MO - U.S. Senator Kit Bond joined officials from the Kansas City Engine for Economic Development (KCEED) today to announce $800,000 in low-interest loans for three Kansas City community groups to implement important revitalization projects for the urban core. These loans were made possible by $2.5 million in federal funds secured by Bond from the Department of Housing and Urban Development (HUD) in 2003. Bond is Chairman of the Senate Appropriations Subcommittee that funds HUD. KCEED will use $600,000 of the federal funds to go with over $200,000 in private money to fund the loans.

"At the end of the day, 138 more housing units for senior citizens will be created, 40,000 square feet of new and renovated office space will be developed, and the equivalent of 3 city blocks will be revitalized. A small investment in the right places can help stimulate big changes for these communities and the people who live in them,” said Senator Bond, a long-time champion of redevelopment efforts in Kansas City, including the relocation of Federal IRS workers to the Old Post Office.

Three Kansas City projects will each receive a low-interest federal loan: Morning Star Youth and Family life Center, sponsored by Morningstar's Development Company, Inc.; Linwood Area Ministry Place (LAMP), sponsored by Heartland Presbytery and the Front Porch Alliance; and Palestine Commons, sponsored by Palestine Economic Development Corporation.

The $2.5 million secured by Bond has been used to set up the standing fund that provides low-interest pre-construction loans. These loans are then paid back to the fund for future development projects. The loans also leverage private funds, maximizing the use of scarce federal dollars to stimulate economic development and revitalize neighborhoods. The $800,000 in loans to these community groups will leverage an estimated $20 million in redevelopment investment.

"The KCEED program is a unique use of federal dollars to create a perpetual fund with total local control," said Rev. Ralph Crabbe, faith-based fellow of Applied Urban Research Institute (AURI). "We have been honored to work with Senator Bond in fostering this public-private relationship to build thriving sustainable communities."

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