Kansas City’s Shifting Development Claims

State and Local Government |
By Patrick Tuohey | Read Time 2 minutes

How much has downtown Kansas City grown? And why? It’s not so easy to know. Here are some claims from the past year.

In January 2014, streetcar boosters floated downtown economic growth figures of $879 million. By March of that year, they reduced it to $791 million. That dropped further to $750 million in May. According to KCTV at the time [emphasis added]:

The mayor also said businesses are already investing $750 million in downtown, like with the new Marriott Hotel that’s set to be built just feet from the construction site. The mayor said it’s all thanks to the new streetcar.

KC_skylineA few months later, the number shot up to $900 million again, albeit with a caveat. Amy Hawley at KSHB reported:

The city has long said streetcars drive business. It attributes $900 million of new downtown business to the new streetcar line.

“We have about $900 million in projects in the downtown area right now since the starter line was first approved by the voters,” Chris Hernandez, the KCMO Director of Communications, said.

Those are very different standards. On the one hand the city wants to say the development happened because of the streetcar, on the other the city says the development happened after the streetcar. This is a classic logical fallacy: post hoc ergo propter hoc or “after therefore because of.” The city wants to claim everything that happened after the streetcar vote as happening because of the streetcar vote. We have pointed out that basic flaw for over a year here and here and here.

As of January 2015, the number is $1.24 billion, according to the Downtown Council. They put the number at $1.24 billion according to their “research.” But they seem to commit the same logical fallacy as the city [emphasis added]:

The past two years marked the beginning of an exciting new chapter in the renaissance of Downtown Kansas City as more than $1 billion dollars of new investment was announced or started construction since voters approved the new streetcar line.

If the economic development benefit of streetcars is so concrete, why can’t boosters agree on a number? The answer, of course, is that the numbers aren’t concrete. In fact, they’re often baseless.

About the Author

Patrick Tuohey is a senior fellow at the Show-Me Institute and co-founder and policy director of the Better Cities Project. Both organizations aim to deliver the best in public policy research from around the country to local leaders, communities and voters. He works to foster understanding of the consequences — often unintended — of policies regarding economic development, taxation, education, policing, and transportation. In 2021, Patrick served as a fellow of the Robert J. Dole Institute of Politics at the University of Kansas. He is currently a visiting fellow at the Yorktown Foundation for Public Policy in Virginia and also a regular opinion columnist for The Kansas City Star. Previously, Patrick served as the director of municipal policy at the Show-Me Institute. Patrick’s essays have been published widely in print and online including in newspapers around the country, The Hill, and Reason Magazine. His essays on economic development, education, and policing have been published in the three most recent editions of the Greater Kansas City Urban League’s “State of Black Kansas City.” Patrick’s work on the intersection of those topics spurred parents and activists to oppose economic development incentive projects where they are not needed and was a contributing factor in the KCPT documentary, “Our Divided City” about crime, urban blight, and public policy in Kansas City. Patrick received a bachelor’s degree from Boston College in 1993.

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