EDCKC boasts right team at the right time, CEO says as agency rebuilds its reputation

With 18 months of foundational work now laid, Tracey Lewis said, the Economic Development Corporation of Kansas City is well on its way to rebuilding the trust, respect, and effective communication needed to execute the agency’s economic development goals.

That takes repairing bridges between the City of KCMO and the EDCKC, he said, as well as strengthening relationships within his own team

Tracey Lewis, EDCKC

“It was a matter of us collectively getting on the same page, and I think we’re there now,” said Lewis, who’s been in the EDCKC’s president and CEO role since July 2022.

The economic development agency has throughout his tenure faced headlines detailing lawsuits alleging misappropriation of funds and other potentially illegal behavior by past EDCKC officials, along with other accusations following the firing of its former executive.

“We had some leadership challenges and staff challenges, and that eroded our relationship with the city,” Lewis candidly acknowledged, noting the ongoing process of overcoming reputation-related issues at EDCKC.

Lewis’ priority, he said, has been to focus the EDCKC on the agency’s mission: real economic growth by drilling deep into affordable housing, business attraction, and entrepreneurial support in Kansas City.

Meeting with the city council every other week, he works to align the EDCKC’s vision with that of the city council’s for long-term land and business development, he said.

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“Having the right team is the thing I’m most excited about, and our relationship with the city,” said Lewis, adding that he’s witnessed increased funding from the city council over the past year, ensuring financial stability for the EDCKC in 2022-2023.

“We’ve had some really good dialogue about how we can make our relationship grow,” he continued, looking ahead to 2024.

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2023 LaunchKC staff and winners; photo by Mark McDonald, Downtown Council

Funding entrepreneurs for success

Through its LaunchKC program — organized by EDCKC alongside the Downtown Council — the agency notched several significant milestones over the past year, according to EDCKC officials. Since its inception, the popular grants program has created 950 jobs, raised startup follow-on investment to $420 million, and boosted the percentage of startups led by women and/or minorities to 67 percent.

The primary incentive for companies selected for LaunchKC, established in 2015, is a $50,000 investment in pre-seed and seed stage companies that relocate to Downtown Kansas City.

Jim Erickson, EDCKC

Becca Castro, LaunchKC, EDCKC

“These are the folks who we want to see be the next Cerners and H&R Blocks, and be big defining companies for our community,” said Jim Erickson, director of strategic initiatives at the EDCKC.

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LaunchKC aids these companies at their early stages, giving them financial support, as well as free office space downtown, and a strong connection to corporate leaders through mentorship, added Erickson. 

The LaunchKC initiative also boasts a Social Venture Studio, a four-month program tailored for social entrepreneurs to boost business growth and community impact.

“To my understanding it is the nation’s only active accelerator specifically for social enterprise companies that are addressing a social, racial or environmental need in the community,” said Erickson.

The Innovation Lounge is another recent addition to EDCKC’s entrepreneurship initiatives, with a successful debut this past year where startup founders and corporate leaders shared insights.

“It was an invitation-only event designed to connect the LaunchKC cohort of founders with successful executives and potential clients,” said Becca Castro, a key organizer for LaunchKC and strategic initiatives manager with the agency.

Lewis also teased that the EDCKC is weeks away from launching a fund that provides access to capital for small, minority-owned businesses, in partnership with the city’s KC BizCare office. 

Land and real estate development

“Economic development is a community development strategy,” said Lewis, noting he aims to enhance communities across Kansas City — in a bid to bring comprehensive development within the urban core. 

“The east side has been disinvested for a long time,” said Lewis, reflecting on the area long-impacted by economic blight.

Despite that challenge, he said, Lewis sees promise because of nearby access to land, water, and rail transportation.

“There’s a lot of opportunities for business,” he added. “But, we need to be strategic about developing the residential portion of that with grocery stores, family services, homes, and working with the school district to make sure that we have a great opportunity to educate people.”

Dan Moye, EDCKC

To aid in such developments, the EDCKC established the East Kansas City Urban Renewal Area, spanning from the northern train tracks to Bannister Road, covering Cliff Drive, the Bluffs, and extending from Troost Avenue to I-435.

The East Kansas City Urban Renewal Area plan allows for single family homeowners and small-scale developers to qualify for 10-year tax freezes for home improvements, commercial market-rate housing and other community-supported projects.

“Really the focus was to open the door and create a path of least resistance for folks that are looking at strategic, empowering investments into the east side,” said Dan Moye, vice president of land development at the EDCKC.

Building business attraction

Kansas City is gaining a lot of attention with the Chiefs in the spotlight and the coming World Cup games, EDCKC officials said, pouncing on an opportunity to grow the region and its population. 

Steven Anthony, EDCKC

“My job becomes a little bit easier in terms of attraction. So it’s now a matter of now attracting the right type of company,” said Steven Anthony, vice president of business development for the EDCKC. (Editor’s note: Anthony also serves on the board of Startland, the 501c3 parent organization of Startland News’ nonprofit newsroom.)

“We want to find folks that want to be in Kansas City, want to be good stewards of Kansas City’s dollars, and bring great jobs,” he continued.

One of Anthony’s strategies to achieve this: Move the needle on wages.

“People were like, ‘Oh, $40,000, your job is great.’ I’m like, ‘40,000? Nowadays your job is not going to provide for you in a family of four,’” he said.

The life sciences, IT and tech, and specialized manufacturing industries are currently the biggest workforce draw to the region, Anthony said, noting EDCKC and its partners must focus on ways to lure more of those types of businesses to the city.

With the help of Lewis, Anthony and others over the past couple of years, the team’s efforts attracted about $2.5 billion in total capital, creating about 3,000 jobs. 

“Those jobs’ average wages are about $71,000 a year, and 70 percent of those positions are within those three industries,” said Anthony. 

Kansas City’s unique value propositions will continue to build its potential for growth, Lewis said, emphasizing the region’s affordability, Midwest work ethic, diversity, a central location in the middle of the country, and Kansas Citians love for and loyalty to their hometown.

“There’s just so much pride in Kansas City, and I think that’s kind of the secret sauce to why we’re going to be successful in the next 20 years,” he said.