Category23_KCBJ_January by Russell Gray

road warriors: Lawyers embrace a new itinerary: More clients looking to cut back on travel costs.

space talk:

Law-Litigation In Depth | 11

Larry Glaze offers advice for midterm lease adjustments. Growth Strategies | 15

VOL. 30, NO. 21

| inside |

January 27-February 2, 2012 $3.95

kansascitybusinessjournal.com

Commerce Tower goes into default Court appoints receiver for downtown skyscraper By Steve Vockrodt | Staff Writer

finding balance: Check printing company grows into biz services. | 3

The Commerce Tower, one of Kansas City’s most prominent skyscrapers, has been placed in receivership. On Jan. 10, a judge approved Kevin Wilkerson of NAI Capital Realty Inc. as the receiver after owner Hertz Investment Group LLC defaulted on a $21.5 million note on the 30-story build-

ing at Ninth and Main streets. HSBC Bank USA, as trustee for note-holder Morgan Stanley, filed suit in Jackson County Circuit Court on Dec. 30 asking for the appointment of a receiver to manage the building. Hertz used the $21.5 million loan in 2006 to buy the 450,000-square-foot building from Tower Properties Co. But a difficult real estate envi-

ronment and a glut of tenant departures the past two years appear to have made it tough for Hertz to meet the note’s obligations. Hertz President Gary Horwitz did not respond to several requests for comment on the receivership. Wilkerson said NAI has been SEE commerce | 26

Streetcar plan is built for speed Just about 10,000 would vote on system

water boss:

Cindy Wallis-Lage leads Black & Veatch unit. | 3

by david twiddy | staff writer

If the Kansas City Council succeeds in finally bringing a fixed-rail transit system to town, credit a switch to thinking small. Council members on Jan. 19 approved moving forward on a plan more INFO: to establish a special downPlan targets town taxing district to fisurface lots; nance a 2.2-mile, $100 milbusinesses weigh lion streetcar line that would costs, benefits; travel mostly on Main Street. Paperwork proposing the map of taxing district. | 6-7 district was expected to be filed with the Jackson County Circuit Court by Jan. 27. If the measure is approved for the ballot, a little more than 10,000 voters who live within the proposed district would have the final say on approving the district and enacting various property and sales taxes that would raise roughly $9.7 million a year to build and operate the streetcar system. That would represent a big change Smartmoves/Mid-America Regional Council

The list:

Most-active commercial real estate firms | 8

Breaking news! Check our website at kansascitybusinessjournal.com

A proposed 2.2-mile streetcar line traveling primarily along Main Street is designed to connect the River Market, Downtown Loop and Crown Center areas. It’s also designed for quick approval.

SEE plan | 7

Area hospitals report robust income for 2010 by david twiddy | staff writer

Despite an ailing economy, a majority of Kansas City-area hospitals ended their 2010 fiscal years in the black, with several making significant gains. Of the 16 nonprofit hospitals or health systems that reported their financial results publicly last year, only five reported a decline in net income, with four reporting losses during budget years that ended be-

see HOW 16 area hospitals performed according to net income. | 27

tween June and December 2010. All but one showed an increase in revenue. Those results came even as uncompensated care by area nonprofit and for-profit hospitals expanded further. “Our volume continues to increase because the economic downturn doesn’t prevent people

from seeking medical care when they need it,” said Sandra Lawrence, CFO of Children’s Mercy Hospitals and Clinics. “The only thing that shifts is the source of the revenue that comes in to cover that volume.” Children’s Mercy, which includes the Kansas City pediatric hospital, its myrLawrence

iad clinics and Children’s Mercy South in Overland Park, reported that 2010 net income surged 53 percent from the previous year to $43.8 million. Revenue increased 15 percent to more than $787 million. Lawrence said the dramatic increase was driven, in part, by contributions and grants. She said it hid a growing chasm — almost SEE hospitals | 27

| kansas city business journal

January 27-February 2, 2012 kansascitybusinessjournal.com

The Kansas City Business Journal’s blogs offer an inside look at local business. To read more of these items and see the posts you missed during the week — and to join the discussion online — visit to our home page: kansascitybusinessjournal.com Brian Kaberline – Editor

Kansas Bioscience Authority

Alyson Raletz – Staff Writer

Technology

KBA audit slams Thornton — and agency critics

Gigabit Challenge has short supply of local winners

A forensic audit of the Kansas Bioscience Authority nailed former CEO Tom Thornton for some fast-and-loose spending and for scrubbing clean his KBA computer’s hard drive. But he wasn’t alone in taking hits in the report, released Jan. 23. In fact, the bulk of the report consists of investigators knocking down allegation after allegation from KBA critics. We’re talking everything from allegations of insider dealing involving hundreds of thousands of dollars (and more) to questions about the appropriateness of opening of an account at Staples that racked up $43.72 in charges. (Go online to see more details on the allegations.)

The cash-earning winner’s circle lacked any mention of Cowtown. Instead, teams from New York and Chicago took home the top prizes. Ouch. What’s more, several typically chatty hometown judges declined to speak openly about the top winner. Representatives of national tech powerhouses, like Microsoft Corp. and MIT, peppered the list of judges.

Steve Vockrodt – Staff Writer

Paul Koepp – Staff Writer

Legal Services

Company fights suit claiming it hired a Russian hacker A California company is striking back against allegations that it hired a Russian hacker to crack into the Lenexa server of banking services firm Jack Henry & Associates. In a motion to dismiss a lawsuit filed by Jack Henry, Maxim Integrated Products said it had not taken any private information and objected to references to “hacking” in the lawsuit. Jack Henry accuses Maxim of hiring a Russian hacker named “Dimatk” to access information about Jack Henry’s use of patents for a mobile banking application. Maxim says Jack Henry is trying to distract from its patent violations.

Economic Development

Kansas City tallies its economic development wins An interim report from the Economic Development Corp. of Kansas City released Jan. 20 showed that 10 businesses were brought into KC since July 1, bringing a total of 1,320 jobs. All of those businesses landed in the 4th and 6th council districts. The 4th generally covers Downtown, the Plaza and Brookside. The 6th covers much of what’s commonly referred to as South Kansas City, which includes southern portions of the Ward Parkway Corridor and kicks east toward Hickman Mills. With business retention and expansion projects, the success was spread out more, with the 1st, 2nd, 3rd, 4th and 6th districts snagging various wins that netted 3,860 retained jobs and a prospect of 1,385 new jobs. EDC staffers project that once the current fiscal year ends on June 30, the new and retained jobs will outpace last fiscal year’s by about 50 percent.

| People index |

Baker | 4

Perez | 5

Bloch | 5

Smith | 6

| Companies index |

Johnson | 1

Thomson | 4

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AMC Entertainment Inc.

Kansas State University

Archer Foundation

Keller Williams Diamond

Big River Running Co.

Partners Inc.

Black & Veatch

KeyBank Real Estate Capital 1, 6

Carondelet Health

Lathrop & Gage LLP

Cassidy Turley

Lee’s Summit Medical Center 10

Legal Aid of Western Missouri 10

CBRE Group Inc. Children’s Mercy Hospitals

Children’s Mercy South

Colliers International

Copaken Brooks

Daniel’s Moving & Storage

Death Productions LP

Deluxe Corp.

Dimensional Innovations Inc.

Downtown Council of Kansas City

Employee Rights Law Firm Baker, Jim Black, Bill Bloch, Tom Brownback, Sam Cleary, Steven Collins, Michael Copaken, Jon Darbyshire, Jon Davis, Dick Derakhshani, Reza Dietrich, Bill Doria, Dean Ebersole, Gary Eiszner, Jim Erdman, Warren Everson, Dave Fenley, David Fish, Gary Ford, Allen Germinder, Rich Getman, Dan Glaze, Larry Grimaldi, Gerard Heaven, Pete Helbig, Matt Holland, Tom Holste, Scott Holwick, Lindsay Horn, David Horwitz, Gary James, Sly Jess, Mark Johnson, Russ Jones, Kimberly Kaufmann, Susan Kerr, Gib Kerr, Whitney Sr. Koester, Bob

4 13 5 3, 10 1 1 6 3 6 3 1 10 5 11 5 1 4 3 3 13 5 15 1 1 3 3 13 10 4 1 1 13 1 13 1 6 6 13

Kueny, Patrick Laffer, Arthur Lager, Sen. Brad Lawrence, Sandra Lengquist, Chris McCarthy, Dan McCulloch, Dennis McKinsey, David McRoberts, Malcolm McThomas, Shelley Miller, Charles Mitchem, Josh Morris, Steve Morrison, Dennis Morton, Leo Murray, Ted Nixon, Jay Nyp, Randall Olson, Rob Perez, Raymond Rice, Jim Ries, Matt Rodman, Len Rush, Toby Russell, Michelle Schaffer, Tim Singleton, Kite Smith, Michael Stueve, Pat Taylor, Sean Patrick Thomson, Spencer Vaish, Pavan Walker, Kristin Wallis-Lage, Cindy Watkins, Dan Watkins, Robert Wilkerson, Kevin

10 3 13 1 13 3 1 4 3 1 1 10 3 10 5 1 5 1 3 5 4 3 3 3 10 1 6 6 11 10 4 10 4 3 10 10 1

Information Sessions: Thursday, February 23, 6 p.m. Thursday, March 22, 6 p.m. The Kansas City Club 918 Baltimore Avenue

Enterprise Center of

314-935-EMBA Kansas City • St. Louis • Shanghai

Lewis Rice & Fingersh LC

Mediware Information Systems Inc.

Michael Smith Restaurant

Missouri Hospital Association 1 MSI Financial

NAI Capital Realty Inc.

National Nuclear Security Administration

Netsmart Technologies Inc.

Northland Neighborhoods Inc. 4 10

Environmental Water

P1 Group Inc.

Federation

Polsinelli Shughart PC

Extra Virgin

Port Authority of Kansas City

EyeVerify LLC

Providence Medical Center

FishNet Security Inc.

RE/MAX Commercial

RED Brokerage LLC

Research Medical Center

Rush Tracking Systems

Roper & Hofer PC

Foley Co.

Fry-Wagner Moving & Storage 10

Seigfreid Bingham Levy Selzer

Graebel Van Lines

& Gee PC

Greater Kansas City Chamber of

Shield Casework

Commerce

Shook Hardy & Bacon LLP

Hall Family Foundation

St. Joseph Medical Center

HCA Inc.

St. Mary’s Medical Center

Standard Parking

HCA Midwest Health System 1, 10 Hertz Investment Group LLC

Highwoods Properties Inc.

Hollywood Casino at Kansas Speedway

HSBC Bank USA Husch Blackwell LLP

1 4, 13

Jones Lang LaSalle

Kansas Bioscience Authority 10 Kansas City Area

Stinson Morrison Hecker LLP 11 Stueve Siegel Hanson LLP

Thomson Walker LLC

Tower Properties Co.

Truman Medical Centers

UnitedLex Corp.

University of Kansas

3, 5

University of Kansas Cancer

Center

Transportation Authority

University of Kansas Medical

Kansas City Election Board

Center

Development Council

The Kansas City Business Journal (ISSN 1530-8170) is published weekly, except semiweekly the fourth week of December by the Kansas City Business Journal, 1100 Main St., Suite 210, Kansas City, MO 64105, 816-421-5900. The single-copy price is $3.95, plus tax, except for the Book of Lists issue, which is $65, plus tax. This newspaper is sold at different locations with varying sales tax rates. The subscription rate Your New Business Model. for one year (52 issues) is $105, two years (104 issues) is $204 and three years (156 issues) is $205 plus QUARTER-PAGE AD (4.8” tax, for Kansas and Missouri residents. Periodical postage paid xat6.75”) Kansas City, Mo. The Business Journal KC BUSINESS JOURNAL is an equal opportunity employer. Postmaster: Send address changes to: 1100 Main St., Suite 210, Kansas DUE DATE_1/23/12 City, MO 64105.

NPC International Inc.

Johnson County

Foland Wickens Eisfelder

Now accepting applications for the April class. www.olin.wustl.edu/EMBAKC

Kansas City Area

Kansas City Southern

Kansas City

3, 5, 13

University of Missouri System 5

Kansas City Metropolitan Bar Association

University of Missouri-

Kansas City Life Sciences Institute Inc.

University of Kansas Hospital 1

11 5

Van Osdol & Magruder PC YRC Worldwide Inc.

1 10

kansas city business journal |

January 27-February 2, 2012

kansascitybusinessjournal.com

Deluxe seeks new balance Brownback plan taxes lawmakers

Check printer overhaul taps small biz services by James Dornbrook | staff writer

Deluxe Corp. is transforming itself from an industry leader in check printing into a small business services provider — and Kansas City is playing a central role. The overhaul really began around the new millennium, when Deluxe started acquiring companies like New England Business Services Inc. to move into more promotional products and not be so reliant on check printing. “Our traditional legacy products, while important, they’re really focused more on how small businesses operate and not how they grow,” said Malcolm McRoberts, senior vice president of small business lending for Deluxe, based in Shoreview, Minn. “Essentially, Deluxe has 4 million small business customers. So we were looking for ways to take those 4 million customers and change our relationship with them, so we’re more of an adviser and service provider who helps them grow.” In adding promotional products, Deluxe realized that it could expand even further if it provided not only the tax forms, letterhead and promotional products small businesses need to conduct business, but also the services to help them grow. If customers grow, they can buy even more promotional products. This concept is reflected in Deluxe’s acquisitions the past three years, targeting services such as Web hosting, email marketing, logo design, social networking and other small business tools. McRoberts said Kansas City housed the first services support and sales team for the new focus. In the past year, employment for Deluxe in Kansas City has grown from about 500 to just more than 600, mainly from the need for people to sell and deliver marketing, Web hosting, logo design and other new services. “In Kansas City, we’ve been building a sales center to reach out to small businesses and proactively work with them on how they operate online and market themselves,” McRoberts said. “Building capability for understanding Web search optimization and how to get customers,

Ambitious list of reforms leaves legislators wary By paul koepp | staff writer

Kansas Gov. Sam Brownback’s ambitious tax reform plan already is running into some hard political realities. Brownback wants to lower and flatten individual income tax rates, taxing the first $15,000 at 3 percent and the rest at 4.9 percent. Although his push to eliminate many exemptions and deductions has some taxpayers and interest groups upset, Brownback also has crossed members of his party by trying to hang on to a sales tax increase due to expire next year. He has set the terms of the debate, but many doubt his plan can be truly “revenue-neutral,” and the rest of the process may be largely out of his hands. “I definitely don’t think the governor’s plan is going to pass,” said Sen. Rob Olson Olson, R-Olathe, head of the Johnson County legislative delegation. “It’s been dead for a couple of weeks.” SEE taxes | 26

DAVE KAUP | KCBJ

Robin Pauley (foreground) and an increasing number of employees work at Deluxe Corp.’s Lenexa call center. They provide some of the small business services Deluxe is expanding.

and having people to operationally support and provide those services.” St. Louis-based Big River Running Co. is participating in a special program Deluxe is offering called Project REV. It is designed to show off Deluxe’s new capabilities by selecting 10 companies each year and giving them $10,000 worth of

services. Last year’s class, the first, saw revenue double. “There is a giant list of services they can provide,” said Matt Helbig, co-owner of Big River Running. “Some of the search engine optimization is a huge

By Alyson Raletz | Staff Writer

Cindy WallisLage

Cindy Wallis-Lage can partly credit a tardy college adviser for her promotion as president of a division that pulls in a third of Black & Veatch’s revenue. The engineering firm’s CEO, Len Rodman, lauds her for being a dynamic leader who has made a stamp on the water industry as a whole. She is active in global sustainability issues with the Water Environment Federation. The Alexandria, Va., group has dubbed her one of its “water heroes.” She’s a contributor to “MOP 8: Design of Municipal Wastewater Treatment Plants,” what federation CTO Matt Ries called “the bible of treatment

By Alyson Raletz | Staff Writer

manuals for our sector.” “She’s out there furthering the discussions on innovative technologies,” Ries said. “She’s been a driving force.” Her promotion also marks the first time a woman has been president of an operating division in Overland Parkbased Black & Veatch’s history. She will go from managing a team of about 400 to the global water division’s 2,600 employees. The division, which is at 8400 Ward Parkway in Kansas City, is working to fill 90 more open positions. But the 25-year licensed engineer never intended to pursue engineering. As a Topeka teenager with an aptitude for math and science and a passion for environmental issues, Wallis-Lage first

Hold a smartphone up facing your eye, and take a picture looking left, then right. In a couple of flashes, startup EyeVerify LLC can gather all the information it needs to make sure you are who you claim to be. The company, led by local entrepreneur Toby Rush, promises the security of biometric technology without infrared cameras and other exotic hightech equipment. “We think we have an identification method that every citizen can access from home,” said Rush, former CEO of Lenexa-based Rush Tracking Systems. EyeVerify’s technology, li- Rush censed from a patent that the University of Missouri-Kansas City and West Virginia University hold, uses a cellphone camera to examine the whites of eyes — specifically targeting the unique road map of blood vessels. Rush is focusing on the blood vessels because they can be seen clearly with the na-

SEE veatch | 26

SEE eyeballs | 26

SEE DELUXE | 27

Black & Veatch taps new leader Wallis-Lage will lead rising global water division

Entrepreneur eyeballs new security idea

4 | kansas city business journal January 27-February 2, 2012 kansascitybusinessjournal.com

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Lawyer leaves Husch, hangs his own real estate shingle By Steve Vockrodt | Staff Writer

Real estate lawyer Spencer Thomson has left Husch Blackwell LLP to get a place of his own. Thomson left Husch on Dec. 29 and leased office space at 4700 Belleview Ave., west of the Country Club Plaza. On Jan. 27, fellow Husch real estate attorney Kristin Walker is expected to join Thomson to form Thomson Walker LLC. Thomson got ample media exposure the past two years fighting on behalf of Husch client and Country Club Plaza owner Highwoods Properties Inc. to construct a new building to serve as a headquarters for Polsinelli Shughart PC. Those plans wilted when a vocal group of Plaza enthusiasts objected to the proposal, and Polsinelli eventually decided to make a redeveloped West Edge its new headquarters. Thomson said his departure had nothing to do with Highwoods. Instead, he wanted do legal work for smaller clients at a lower cost than he could offer at Husch. “After 18 years in large firms, I kind of developed skills that you get when you work in a large firm and you work on the transactions,” Thomson said. “I felt that the continual increases in hourly rates and the pressure to bill hourly rates was something I was getting a bit frustrated with.” David Fenley, co-chairman of Husch, had kind words for his former colleague.

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svockrodt@bizjournals.com | 816-777-2206 | Twitter: @st_vockrodt

Dimensional Innovations CEO starts new countertop firm by James Dornbrook | staff writer

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“He’s a very good lawyer and a very good friend, and we wish him well,” Fenley said. Thomson said he considered leaving Husch two years ago but backed out at the 11th hour because of the difficulty the recession spelled not only for real estate, but for law firms in general. Thomson also has represented developer David Horn, who helped lead the development of Blue Ridge Crossing and is a partner in a redevelopment group that plans to rebuild Antioch Center in the Northland. “He was very good in our experience,” said Jim Rice, a senior associate Thomson of Northland Neighborhoods Inc. who worked with Thomson on the Antioch Center redevelopment. “We’re very excited those guys are moving at a lightning pace.” Many of Thomson’s other clients have projects that don’t appear in the newspaper or evening telecast. Those clients, he said, needed more flexibility in rates and payment structures than those he could provide at Husch. “It just felt like to me, particularly during the recession, which I think is still continuing to a degree, a lot of the middle-sized and small clients were getting priced out of our services,” Thomson said.

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Tapping into his experience working with a wide variety of materials and combining it with hospitals’ growing focus on infection control, Jim Baker founded a new company, Shield Casework. Baker is CEO of Overland Park-based Dimensional Innovations Inc., a company known for fabricating unique displays or architectural aspects on buildings. The company made the downtown library’s garage look like a giant bookshelf and turned an Airstream trailer into a suite at Arrowhead Stadium. Baker said DimensionBaker al Innovations already was making countertops out of an impervious hard plastic material that is much easier to clean and therefore highly sought after by hospitals and medical clinics. Shield Casework took the idea further: It makes entire cabinets and drawers out of the same material. “Your conventional laminate top, over time, it will delaminate, and those areas are easy to become out of reach of your cleaning chemicals and become contaminated,” he said. “Our product line eliminates that. If it does become contaminated, wiping it down thoroughly

cleans it.” Dr. David McKinsey, epidemiologist for Research Medical Center in Kansas City, said the push to reduce the risk of hospital infections has gained momentum in the past couple of years. “These infections are becoming more common, and they have potential serious outcomes,” McKinsey said. “Hospitals are also being required to publicly report our infection rates, so we’re under much greater scrutiny than we were a few years ago. All hospitals are now required to have active infection control programs in order to gain accreditation.” That’s why Baker thinks Shield Casework has a bright future. The products were launched Jan. 1, and they’ve got a case study under way at Children’s Mercy Hospital. He’s installing new machinery in February to make the production process more efficient and expects to hire about 10 new assembly line and fabrication employees this year. “We’re primarily focusing on the health care industry to start,” Baker said. “But there are opportunities on college campuses and places like that because besides being easy to clean, it’s just so durable. Its lifetime is significantly longer than particle board, so it’s costeffective.” jdornbrook@bizjournals.com | 816-777-2215 | Twitter: @Dornz

kansas city business journal |

January 27-February 2, 2012

kansascitybusinessjournal.com

KU adds Clinical Research Center for cancer drug trials by david twiddy | staff writer

The Kansas City area already has one of the nation’s largest concentrations of private drug labs and other contract research operations. The local roster is getting a big new player: The University of Kansas has opened its Clinical Research Center in Fairway. It will perform phase I human trials of cancer medication. The center is at 4350 Shawnee Mission Parkway in a former office building the Hall Family Foundation donated to the University of Kansas Cancer Center. The more than $19 million in renovations to the 80,000-square-foot building are being paid for with revenue from the John-

son County Education Research Triangle sales tax voters approved in 2008. It will focus on testing compounds KU researchers have discovered as well as those by other institutions and the private sector. This area of scientific development increasingly has gotten away from doing its own early-stage testing. “There are very few (academic) centers in the country that have free-standing phase I units like we’ll have here,” said Dr. Raymond Perez, who is overseeing the center after holding a similar position at Dartmouth Medical School in New Hampshire. “What that enables us to do is to really focus on providing both top-notch patient care and top-flight research because that’s all we do.”

Those tasks include selecting and reviewing potential drug trial candidates, overseeing the tests and being able to perform biopsies or otherwise take samples to see how the drug is working. The center will take over most of the clinical trials that had been done at the University of Kansas Medical Center, though Perez said tests that require radiation or other specialized steps probably will at least share time at KU Med. He said the center, which is conducting 11 drug trials, will be able to handle Perez 25 to 30 phase I trials involving as many as 300 patients at a time

in the next five to seven years. Last year, a study said contract research organizations and service providers in the region generate an estimated $1.33 billion in annual revenue and employ more than 9,000 people. Dan Getman, president of the Kansas City Area Life Sciences Institute Inc., which co-sponsored that study, said the clinical center will increase the region’s capability to handle complicated trials by institution-based researchers. It also ties in well with a $19.8 million National Institutes of Health grant, awarded last year, to help KU Med quickly turn promising technology into cancer cures. davidtwiddy@bizjournals.com | 816-777-2204 | Twitter: @dtwiddy71

Nixon’s budget plan leaves UMKC facing even deeper cuts By paul koepp | staff writer

Missouri Gov. Jay Nixon’s proposed 12.5 percent cut to higher education spending could have dire consequences for the University of Missouri-Kansas City, officials warned. State funding for UMKC already has dropped from $84 million in fiscal 2009 to $75 million this year. Resident tuition has crept up from $8,272 to $9,029 during that period. Those trends are set to continue, as the state looks to plug a $500 million budget gap, and the UM System Board of Curators said it would have to raise tuition.

In previous years, the governor spared higher education deeper cuts in exchange for tuition freezes. No such deal is on the table this year. “This is nothing new,” said Tom Bloch, chairman of the UMKC board of trustees. “The last decade or so, state support has really taken a hit. If the governor’s 12.5 percent cut were adopted, that would mean a 25 percent reduction over the last three years. ... I’m hopeBloch ful that when all is said and done, the cut won’t be anything like

what’s been proposed.” The looming cuts come as UMKC targets big goals, including a capital building program and possibly creating a downtown arts campus. Much of the money for that the arts campus would be private, but general education programs without dedicated sources of financing rely on state money and tuition. As attrition reduces staff, the school is teaching 25 percent more students than a decade ago, said Gary Ebersole, a history and religion professor and chairman of the UMKC Faculty Senate. “We decimated the low-hanging fruit many years ago,” he said.

Meanwhile, he said, it’s tough to recruit top-notch faculty because “we are woefully behind what peer institutions are paying in terms of salary.” UMKC Chancellor Leo Morton and other administrators did not respond to requests for an interview. UM System curator and Kansas City Southern executive Warren Erdman is backing a petition drive to boost education spending by raising the cigarette tax from 17 cents to 90 cents a pack. But that wouldn’t fix this year’s budget, and similar initiatives failed in 2002 and 2006. pkoepp@bizjournals.com | 816-777-2211 | Twitter: @pbkkc

| from the front | January 27-February 2, 2012

6 | kansas city business journal

kansascitybusinessjournal.com

| kansas city streetcar plan |

Streetcar line carries hopes of fewer lots, more residents By Steve Vockrodt | Staff Writer

Joni Mitchell sang that “they paved paradise and put up a parking lot.” But if she lived in Kansas City in 1970, when her biggest hit came out, the famous lyric might have been: “They tore down buildings and put up a surface lot.” It was about that time that Kansas City’s thriving and dynamic Downtown started feeling the effects of increased auto traffic. To accommodate an influx of cars, surface parking lots sprang up. “That was a big mistake,” said Kite Singleton, an urban design consultant with a focus on urban transit. Kansas City’s proposed $100 million, two-mile streetcar line is its best chance to undo that mistake and convert surface lots back into development opportunities, he said. The financing plan for the Main Street line takes dead aim at commercial surface parking lots. It proposes a 50-cent daily special assessment on each of 4,000 surface parking spaces in a new transportation development district to generate $730,000 a year. Parking garages would be exempt. Officials from Standard Parking, one of the primary operators of surface lots in Kansas City, declined to comment. Planners hope that a streetcar line will reduce the need for such

lots and, perhaps, free that space for a higher use. “Every lot that is used for parking now is potential for future development,” said Dick Davis, a Kansas City Councilman and former general manager for the Kansas City Area Transportation Authority. “If you look from an aerial view, you have a lot of vacant land that isn’t used very well. That’s really one of the least cost-effective ways to take advantage of the land.” A strong mass transit system could even reduce the need for parking garages, which have become a staple of developers’ requests for public incentives during the past 15 years. “I am a strong supporter of the concept of getting light-rail streetcars back into the older sections of the city, and I think it would be a great tonic for the renewal of property values, and I think it would be very catalytic because it would negate the need for big parking garages,” said Whitney Kerr Sr., a longtime commercial real estate broker in Kansas City. Proponents of a streetcar line think it can attract young, creative-class residents, dovetailing with other efforts to build up Downtown and the Crossroads Arts District. “They get the negative impact of ozone on an environment, and they prefer to be people who reduce their negative input on the environment,” Singleton said.

Backers also said economic development could become more feasible along a fixed rail line. Several vacant lots dot the landscape along the proposed Main Street line between Truman Road and 20th Street. Some commercial brokers said the streetcar line has driven interest in for-sale buildings in Downtown. “I know it’s a big issue for a lot of property owners because it’s a big increase in property taxes,” said Gib Kerr, a real estate broker for Re/Max Commercial. “For development properties I have for sale, there’s an uptick of interest by virtue of the fact people believe the streetcar will happen.” Policymakers and rail backers are banking that the initial streetcar investment will cause adjoining areas, like Westport and the Country Club Plaza, to clamor for service. “The first stage is very small, just a four-car operation. It’s not going to change a whole lot,” Davis said. “What makes me excited is the potential for expansion and growth.”

so what’s my burger going to cost? To get an idea of how the proposed transportation development district would affect consumers, we took a look at what a $7.95 hamburger would cost in four different taxing locations, plus what the proposed sales tax would add in price. The percentages include state, county and city taxes, as well as any special tax districts that apply in the locations. Location Price Tax % $8.66

The Legends, Kansas City, Kan. (pad site)

8.925

$8.72

Park Place, Leawood

9.65

$8.77

Brookside, Kansas City

10.35

$8.81

Kansas City Power & Light District (current rates)

10.85

$8.89

Kansas City Power & Light District (plus new rate)

11.85

brenna Hawley & brad harbold | KCBJ

svockrodt@bizjournals.com | 816-777-2206 | Twitter: @st_vockrodt

Owners, businesses weigh short-term costs, long-term gains By Steve Vockrodt | Staff Writer

Restaurateur Michael Smith thinks Kansas City’s proposed streetcar line could go far to attract people to Downtown and help businesses like his thrive — once it’s up and running, that is. “All the construction would worry me, that we wouldn’t be able to survive the business interruption from building it,” said Smith, chef at Michael Smith Restaurant and Extra Virgin at 19th and Main streets. Traffic issues caused by building a streetcar line down a main downtown thoroughfare represent one of the big short-term concerns about the city’s plan. Memories of the disruption related to the construction of the Kansas City Power & Light District and Sprint Center are still fresh for downtown property owners. Proponents of the two-mile streetcar line say the project could be built in phases to mitigate the disruption to businesses along Main Street and elsewhere, though even brief business interruptions can be troublesome to customer-facing businesses. A broader concern about the plan is the increase in taxes within a transportation development district that extends several blocks in either direction along the streetcar route. Kansas City proposes a special assessment on commercial property that would add 52 cents a year in property

DAVE KAUP | KCBJ

Michael Smith, whose restaurants are on Main Street, sees long-term benefits in better mass transit but frets about short-term consequences of construction. tax bills for every $100 of assessed value. The assessment would apply even to property that has received tax abatements and that nonprofits own. Residential property owners would see a 70-cent assessment per $100 of assessed value. The cost of parking also would increase for many because of a special assessment on commercial surface lots. On top of all that, the proposal would tack on an addtional 1 cent to the sales

tax rate in the district. And that would come on top of the one-eighth-cent zoo tax voters approved in November and an existing transportation development district covering Downtown’s south loop. These taxes, along with increasing sewer rates to pay for a federally mandated $2 billion sewer overhaul, add up to make Downtown an increasingly expensive proposition. And they would come after a stretch

in which high-profile Downtown tenants, such as KeyBank Real Estate Capital and AMC Entertainment Inc., have left for better deals in Overland Park and elsewhere. Critics of the tax structure propose that the city consider phasing in the assessments to make the burden easier for property owners to manage. But no such proposal appears to be on the table. “I’ve had a number of people that I work with who are property owners Downtown who have expressed great disapproval with (the special assessment),” said Whitney Kerr Sr., a commercial real estate broker with Cassidy Turley. Other downtown business interests see the streetcar line more as a longterm investment for a development that ultimately will benefit property owners. “This type of thing is an investment as opposed to just a tax,” said Jon Copaken, principal with Copaken Brooks. “You get a benefit.” Copaken Brooks owns Town Pavilion, among other downtown properties. Smith, the downtown chef, agreed on that point. “I think mass transit would help — it’s just hugely expensive,” he said. “It’s easier to put in offshoots later on, something to attract people to live Downtown. We need another 20,000 people to live Downtown. We do OK; we’re doing fine. We’re not hitting a home run.” svockrodt@bizjournals.com | 816-777-2206 | Twitter: @st_vockrodt

| from the front |

January 27-February 2, 2012

kansas city business journal |

kansascitybusinessjournal.com

| kansas city streetcar plan |

PLAN: ‘Sweeter spot of the city’

Note: Rider fares and advertising revenue would generate an additional $600,000 a year.

davidtwiddy@bizjournals.com | 816-777-2204 | Twitter: @dtwiddy71

y Broadwa

Sixth St.

DOWNTOWN LOOP

29 71

670

Broadway

18th St.

Main St.

Locust St.

Special property tax assessments: $5.14 million 1-cent sales tax: $3.8 million Special assessment on parking lots: $730,000

r Rive

d Roa t n Fro

Gillham Road

A proposed Transportation Development District to finance the downtown Kansas City streetcar is expected to generate $9.7 million a year to help pay off construction bonds to build the streetcar system and support its annual operating costs. Here’s where the money would come from:

PROPOSED TRANSPORTATION DEVELOPMENT DISTRICT

Oak St.

PROJECTED SOURCES OF ANNUAL REVENUE

Smartmoves/Mid-America Regional Council

Proponents of a streetcar line are selling the idea as an amenity that will serve people who already live in Downtown as well as attract many new residents.

Bridge America Heart of

from the nearly dozen previous attempts to establish light-rail or commuter-rail services in Kansas City. Those were wide-ranging projects that involved citywide votes, with all but one stalling at the polls. The one exception was a 2006 ballot initiative backed by Clay Chastain that called for a 27-mile line. The City Council repealed that plan, saying it was unworkable, too expensive and possibly illegal. The most recent attempt was in 2008, when Kansas City voters roundly rejected a three-eighthscent sales tax to finance a 14-mile light-rail starter route. Councilman Russ Johnson, chairman of the Transportation and Infrastructure Committee, said that failure was high in the council’s mind in 2009, when it began looking at forming a Transportation Development District, which could generate money for a rail project but keep the voter-approval threshold low. “We looked at the voting patterns, and the voting patterns were such that, outside the core of the city, light rail was not supported by the electorate,” Johnson said. “We figured if that was where the support would be, we’d have to focus on a solution that fit that area for the start.” Once the streetcar is Johnson established in Downtown, Johnson said, other areas of town will want service and support creating additional development districts to extend streetcar systems to their neighborhoods. “But in order to get started, we had to focus on the sweeter spot of the city for this project,” he said. Driving the process is a desire to put the city in position to apply for $25 million in federal Transportation Investment Generating Economic Recovery, or TIGER, grants in the summer. During a meeting earlier this month in Washington, federal transportation officials said a development district was essential for qualifying. Alhough a Transportation Development District can be created a number of ways, including having property owners or more than 50 percent of registered voters request

one, the City Council chose what it considered the fastest option: teaming up with a second local transportation authority, in this case the Port Authority of Kansas City, to file the petition. Voters could be asked to sign off on the district by as soon as late April. “We have been working on an aggressive schedule since last year, so we’ve always been looking at how do we do things as aggressively as possible,” Johnson said. Port Authority President Michael Collins said the City Council asked his board to be a partner earlier this year. The plan fits with the Port Authority’s goal of improving commerce and transit in the city. “They believe, and we agree, that this is the quickest avenue,” Collins said. “If you have an opportunity to go after the funds now, and they’re telling you to do so, the writing’s on the wall to go for it.” City leaders already are meeting with representatives of downtown property owners, including the Downtown Council of Kansas City, to generate support for the district and gather input on the tax structure and how the streetcar system will operate. “We think it’s a great opportunity, and we’re excited by the possibility of a streetcar connecting these assets together, but we are in the process of analyzing and determining if the benefits are proportionate to the costs,” Downtown Council CEO Bill Dietrich said. He added that the Downtown Council has asked the city to investigate adding a spur to Wyandotte Street from 12th to 16th streets to accommodate traffic to and from Bartle Hall and the area hotels. But most of those property owners will not have a vote on the district because they don’t live within its boundaries. According to city election statistics, roughly 10,300 registered voters are in the voting precincts that make up the district. They have not been the most dedicated voters, however, with less than 15 percent casting ballots in the Kansas City mayoral election in March. City officials expressed optimism that they could increase that participation by using mail-in ballots for the Transportation Development District votes. Mail-in ballots typically are used for measures involving very limited numbers of voters, said Shelley McThomas, a spokeswoman for the Kansas City Election Board. Mayor Sly James, however, said he thinks enough momentum exists to push the measure through. “Our Downtown has recruited progressive, energetic, active and civic-minded residents who are believers in a vibrant world-class Downtown,” James said in a written statement. “If there is any single group I trust to enthusiastically support a modern downtown streetcar, it is the residents of the new downtown Kansas City.”

West Pennwa y

FROM PAGE 7

27th St. brad harbold | KCBJ

| The list |

| kansas city business journal

January 27-February 2, 2012

kansascitybusinessjournal.com

Most-active area commercial real estate firms (ranked by number of local, closed commercial transactions in 2011) Rank 2012 2011

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 1. 3. 2. 6. 4. 8. 7. 5.

10. 9.

11. 12. 17. 14. 17. 15. 13. 16.

none

24.

none

19. 20. 21.

none

FIRM

Block Real Estate Services LLC

700 W. 47th St., Suite 200, Kansas City, MO 64112 www.blockllc.com 816-756-1400

CBRE Inc.

4717 Grand Blvd., Suite 500, Kansas City, MO 64112 www.cbre.com/kansascity 816-756-3535

Colliers International | Kansas City 4520 Main St., Suite 1000, Kansas City, MO 64111 www.colliers.com 816-531-5303

Cassidy Turley

2600 Grand Blvd., Suite 1000, Kansas City, MO 64108 www.cassidyturley.com 816-221-2200

Kessinger/Hunter & Co. LC

2600 Grand Blvd., Suite 700, Kansas City, MO 64108 www.kessingerhunter.com 816-842-2690

Block & Co. Inc. Realtors

605 W. 47th St., Suite 200, Kansas City, MO 64112 www.blockandco.com 816-753-6000

Zimmer Real Estate Services LC

1220 Washington St., Suite 100, Kansas City, MO 64105 www.zimmercos.com 816-474-2000

RED Brokerage LLC

4717 Central St., Kansas City, MO 64112 www.redbrokerage.com 816-777-3500

NAI Capital Realty

7500 College Blvd., Suite 920, Overland Park, KS 66210 www.capital-kc.com 913-469-4600

Dean Realty Co.

1201 W. 31st St., Suite 2, Kansas City, MO 64108 www.deanrealty.com 816-531-0800

LaSala-Sonnenberg Commercial Realty Co. 6310 Lamar Ave., Suite 100, Overland Park, KS 66202 www.lasala-sonnenberg.com 913-362-1000

Reece Commercial

11601 Granada Lane, Leawood, KS 66211 www.reececommercial.com 913-652-4300

Lee & Associates Kansas City

8700 State Line Road, Suite 110, Leawood, KS 66206 www.lee-associates.com 913-890-2000

NT Realty Inc.

1828 Swift St., Suite 203, North Kansas City, MO 64116 www.ntrealty.com 816-221-2300

Charles F. Curry Real Estate Co.

2700 N.E. Kendallwood Parkway, Suite 208, Gladstone, MO 64119 www.curryre.com 816-414-5200

Jones Lang LaSalle Brokerage Inc.

2600 Grand Ave., Suite 500, Kansas City, MO 64108 www.us.jones.langlasalle.com 816-531-2323

Coldwell Banker Commercial Fishman & Co. 1948 E. Santa Fe St., Olathe, KS 66062 www.cbcfishman.com 913-782-9000

Hutchings/Carrier Inc.

7715 Shawnee Mission Parkway, Overland Park, KS 66202 www.hutchingscarrier.com 913-432-9800

Copaken Brooks

1100 Walnut St., Suite 2000, Kansas City, MO 64106 www.copaken-brooks.com 816-701-5000

Point Commercial

7300 College Blvd., Suite 308, Overland Park, KS 66210 www.pointcommercial.com 913-948-9222

LANE4 Property Group Inc.

4705 Central St., Kansas City, MO 64112 www.lane4group.com 816-960-1444

CEAH Realtors

3170 N.E. Carnegie Drive, Suite 400, Lee’s Summit, MO 64064 www.ceahrealtors.com 816-795-8100

Victor Ross & Co. Realtors

6618 Independence Ave., Kansas City, MO 64125 www.victorrossandcompany.com 816-483-0500

Greg Patterson & Associates

3619 Broadway, Suite 8, Kansas City, MO 64111 www.gpattersonassoc.com 816-753-3619

Haith & Co. Inc.

11415 W. 87th Terrace, Overland Park, KS 66214 www.haith.com 913-888-3456

2011 transactions number value

Primary services

Top local executive(s)

634 $696,000,000

commercial sales & leasing brokerage; asset & property management; investment & financial services; construction & development services; tenant advisory services; facilities management

Managing Principal Kenneth Block kblock@blockllc.com

471 $440,801,267

brokerage leasing & sales; investment sales; property management; project management; appraisal; consulting

Managing Director Mike Klamm mike.klamm@cbre.com

470 $265,647,155

project leasing, tenant representation, investment sales, property management, development, tenant finish construction

President Ed Elder, Ed.Elder@colliers.com Co-CEO Bryan Johnson, Bryan.Johnson@colliers.com Co-CEO Ted Murray, Ted.Murray@colliers.com

2. RED Brokerage LLC

$91,000,000

467 $218,627,923

commercial real estate leasing, sales, property management, facilities management, corporate services, construction management & development services; 1,487 additional transactions in 2011 for Cassidy Turley’s national, Kansas City-based corporate services business

Managing Director Michael Mayer michael.mayer@cassidyturley.com

3. Kessinger/Hunter & Co. LC

$50,576,294

industrial brokerage, office brokerage, retail brokerage, investment sales, development services, tenant advisory services, construction management, property management, facilities management

4. CBRE Inc.

$38,000,000

426 $364,980,187

President Patrick McGannon pmcgannon@kessingerhunter.com

5. Cassidy Turley

$23,500,000

commercial sales & leasing; asset & property management; tenant representation; commercial development; construction services; investment services

6. Copaken Brooks

$19,200,000

383 not disclosed

President David Block dblock@blockandco.com

288 $79,200,107

commercial sales & leasing; property management; development management; corporate services

President David Zimmer dzimmer@zimmercos.com Executive Vice President Ellen Darling edarling@zimmercos.com

261 not disclosed

commercial sales & leasing; third-party brokerage; development; asset management; acquisitions; consulting

Partner Mike Helmuth mhelmuth@redbrokerage.com Partner Dan Lowe dlowe@reddevelopment.com

office, industrial & retail sales & leasing brokerage; property & facilities management; investment sales services; development & construction management services

President Kevin Wilkerson wilkerson@capital-kc.com Senior Vice President Craig Cooper cooper@capital-kc.com

12. CEAH Realtors

exclusively leases, manages & develops only the Dean property portfolio; office, industrial, flex, underground & master-planned mixed-use projects

Chairman, President & CEO Lester Dean lesterdean@deanrealty.com

14. Point Commercial

$1,333,610

15. Greg Patterson & Associates

$1,300,000

152 $75,788,997

commercial real estate brokerage services

Managing Principal Chad LaSala chad@lasala-sonnenberg.com

16. Dean Realty Co.

$1,208,000

17. Hutchings/Carrier Inc.

$1,200,000

137 $52,781,994

leasing & sales of office, industrial & retail properties; tenant representation; investment property sales; land sales

Vice-President/Broker Dan Sight dsight@reececommercial.com

re-ranking the list:

Most-Active Area Commercial Real Estate Companies ranked by value of largest local transaction in 2011. Company

167 $89,611,165

159 $6,131,400

126 $36,572,000

industrial & office sales & leasing; investment sales; buyer & tenant representation; property management

Managing Principal Nathan Anderson nanderson@lee-associates.com

124 not disclosed

full-service commercial & industrial real estate firm specializing in brokerage, development & property management services

President Richard M. Lanning Jr. rmlanning@ntrealty.com

109 $6,696,208

leasing, managing, selling & consulting for commercial property, multi-family dwellings, apartments, condominiums, high-rises, lofts & home associations

President Ellen Todd etodd@curryre.com

103 $104,148,057

commercial real estate services providing agency leasing/ sales, tenant/buyer representation, consulting, project management, economic incentives, portfolio administration.

Managing Principal Larry Glaze larry.glaze@am.jll.com

91 not disclosed

commercial sales & leasing; consulting; business brokerage; development; property management; REO; lease renegotiation

President Mike Fishman mfishman@cbcfishman.com

lease, sales & management of commercial properties

Principal Joel Hutchings joel@hutchingscarrier.com Principal Bill Carrier bill@hutchingscarrier.com

77 $92,740,000

investment sales & leasing; asset & property management; development & construction services; tenant & corporate services

Principal Bucky Brooks Principal Jon Copaken Principal Keith Copaken

73 $20,910,186

landlord & tenant representation; land assemblage; consulting; development; property management

Managing Principal Jared Frost jfrost@pointcommercial.com Principal Erik Murray emurray@pointcommercial.com

70 not disclosed

commercial real estate development, brokerage & property management

President Owen Buckley Vice President Gwen Locher

64 $14,188,280

commercial brokerage, property management, development, consulting

Executive Member Mike Atcheson matcheson@ceahrealtors.com

commercial & industrial real estate services

President Victor Cascio

commercial real estate brokerage & consulting; specialization in urban core Kansas City

President Greg Patterson gpatterson@gpattersonassoc.com

sales, leasing, commercial

President Larry Haith l@haith.com

82 $5,334,566

62 $5,026,803

53 not disclosed

46 $3,456,241

Originally Published Jan. 27 2012 | compiled By Jonna Lorenz | Research director | jlorenz@bizjournals.com | 816-777-2213 | Twitter: @KCBizResearch Information about commemorative plaques, reprints or Web permissions can be obtained from the Kansas City Business Journal’s designated partner, Scoop ReprintSource, at 800-767-3263 or www.scoopreprintsource.com. No other company offering similar services is affiliated with the Business Journal.

amount

Block Real Estate Services LLC

$145,548,223

Jones Lang LaSalle Brokerage $18,268,000 Inc.

8. NAI Capital Realty

$14,500,000

9. Lee & Associates Kansas City

$14,485,000

10.

Colliers International | Kansas City

11.

Zimmer Real Estate Services LC

13.

$14,335,525 $3,769,386 $3,064,408

LaSala-Sonnenberg Commercial Realty Co.

$2,839,000

18. Victor Ross & Co. Realtors

$700,000

Charles F. Curry Real Estate 19. Co.

$487,500

20. Haith & Co. Inc.

$467,947

notes:

Firms provided information in response to questionnaires.

Future lists: February 3, Commercial Lending Banks February 10, Residential Real Estate Firms February 10, Home Builders February 17, United Way Beneficiaries February 24, Commercial Printers March 2, Hospitals March 9, Automobile & Truck Retailers March 9, Golf Courses March 16, Engineering Firms

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Week on the Web Get KCBJ’s free daily news updates or news by industry sent to you by e-mail. Register at http://www.kansascitybusinessjournal.com/emails

Brownback holds KBA money Kansas Gov. Sam Brownback’s administration has a hold on $22 million intended for the Kansas Bioscience Authority as state officials wade through the results of a lengthy audit. The money had been slated to go to the KBA in November but was held because of the audit process. Facing criticism from Brownback and state legislators, the KBA agreed to an independent forensic audit in April. KBA Chairman Dan Watkins said the overall audit “affirms that the KBA’s investment process is diligent, and it makes no significant findings or exceptions related to KBA expenditures or conflicts of interest.” But Brownback called the results “deeply troubling” and called for a moratorium on new spending and commitments until the Legislature can resolve the KBA’s future. The Legislature was to hold hearings about the audit on Jan. 25 and 26. David Twiddy

Firms win $80M in NNSA move It’s exactly one year from the time the National Nuclear Security Administration will move to its new $467 million location in south Kansas City. That feat will happen with the help of six relocation firms that won $80 million worth of contracts for the work. CBRE Group Inc. won the main con-

tract to move the facility. The move will include transporting about 2,800 pieces of large capital equipment and more than 40,000 moving crates, which would fill about 2,600 semis. P1 Group Inc., Foley Co., Fry-Wagner Moving & Storage, Graebel Van Lines and Daniel’s Moving & Storage were awarded supporting contracts. Brenna Hawley

cal Center. • Michelle Russell will be the top legal officer at YRC Worldwide Inc. • Mediware Information Systems Inc. promoted Robert Watkins to CFO. • Netsmart Technologies Inc. named Dr. Dennis Morrison as CFO. • UnitedLex Corp. appointed Pavan Vaish as its global COO. KCBJ Staff

Roundup of key court actions

NPC will buy sites for $18.8M

Here are some recent business-related court actions: • A Legal Aid of Western Missouri suit accuses Mission-based Death Productions LP of operating a foreclosure-rescue scam that targeted elderly women. • The Arkansas attorney general sued a Missouri man whose companies control payday loan websites. The suit says Josh Mitchem and his companies charge usurious rates. Mitchem says his companies only service the loans. • Former Kansas City resident Sean Patrick Taylor pleaded guilty in federal court to embezzling at least $100,000 while an executive for two nonprofits. KCBJ Staff

NPC International Inc., the largest Pizza Hut franchisee, has agreed to buy 36 restaurants from Pizza Hut Inc. for $18.8 million, plus the cost of store inventories, prepaids and store cash. The Overland Park-based company will add the restaurants to its menu of more than 1,100 Pizza Hut locations. All of the new restaurants are in or near Jacksonville, Fla. The sale is expected to close in February. Brenna Hawley

Executives’ comings, goings Here are some recent executive comings and goings: • HCA Midwest appointed Patrick Kueny as COO of Lee’s Summit Medi-

Hollywood Casino set to open On Feb. 3, the Kansas City area will get its first new casino in about 15 years in the form of Hollywood Casino at Kansas Speedway. Nascar driver Clint Bowyer is slated to be on hand at the ribbon-cutting ceremony. Dean Doria, vice president of marketing for the casino, said the casino expects thousands for its opening. Brenna Hawley

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Law & Litigation

January 27-February 2, 2012

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Road warriors may fade away Lawyers say clients are eager to reduce their travel expenses By PAUL KOEPP | Staff Writer

DAVE KAUP | KCBJ

Attorney Jim Eiszner’s suitcase is almost as important as his briefcase for his many journeys throughout the country on behalf of Shook Hardy & Bacon LLP clients.

f you don’t catch Jim Eiszner on the phone at his Shook Hardy & Bacon LLP office, there’s a good chance he’s out of town. In a recent interview, he ticked off his destinations from the past four weeks: Chicago, Cincinnati, Atlanta, Bentonville, Ark. Such is the life of a road warrior lawyer who spends 40 weeks on the road each year handling complex litigation. But for how much longer? Walk into any big firm or litigation boutique today — even the new offices of the Kansas City Metropolitan Bar Association — and you’ll find high-tech rooms all set up for videoconferencing. Client meetings, depositions, witness preparation, even some court hearings — all can be done at the touch of a button from thousands of miles away. Pat Stueve of Stueve Siegel Hanson LLP, who was on the road 30 weeks in 2011, said he’s seen a “dramatic increase” in the number of judges willing to do phone conferences on preliminary matters rather than require all parties to appear in court. SEE road | 12

Flipping over: Slowly improving housing market alters the climate for foreclosure sales | 13 Rights rematch: General Assembly again debates big changes to the Missouri Human Rights Act | 13

| in depth: Law & Litigation |

12 | kansas city business journal

January 27-February 2, 2012

kansascitybusinessjournal.com

ROAD: Lawyers embrace cost-cutting, whether from generosity or necessity FROM PAGE 11

Stueve Siegel Hanson’s partner meetings with its San Diego office now are done by video. And with clients and managing partners warily eyeing their bottom lines, new technology could cut down on the expense of plane tickets and hotel rooms and keep road warriors home. “Clients are always trying to get your travel down. I’m hearing it from five or six big clients,” Eiszner said, including Fortune 100 companies. Gone are the days when a lawyer could get paid just for sitting on a plane.

Twenty years ago, when Bill Beil of Rouse Hendricks German May PC was on the road for parts of 20 to 25 weeks a year, clients were more willing to pay for travel. “Now, a lot of clients have a policy that they won’t pay for travel time if all you’re doing is traveling,” Beil said, “and rightly so.” Indeed, road warrior lawyers have embraced their clients’ cost-cutting measures, whether out of generosity or necessity. “Trying to hold travel down is something we should be doing, and most lawyers do,” said Dave Everson of Stin-

son Morrison Hecker LLP. Not that travel for a lawyer is a glamorous perk. “It’s generally in and out of the place. You don’t get a feeling for the community,” Everson said. “It’s just do the work and move on.” If all this sounds like the plot of the movie “Up Beil in the Air” — albeit without an obvious choice among Kansas City lawyers to be played by George Clooney — it should. In the movie (spoiler alert), the up-

It’s time to nominate… The Kansas City Business Journal is accepting nominations for the seventh-annual Capstone Awards. The program will honor those companies that have been involved in real estate development projects and transactions that enhance the Kansas City area. Project recognition may be given in the following categories: Office, Multifamily, Retail, Mixed Use, Industrial, Architectural Design, Community Impact, Green Design and Infrastructure. Eligibility: To be eligible for consideration, at least the first phase of projects must be complete and ready for occupancy between Jan. 1 and Dec. 31, 2011. All projects must be in the Kansas City metropolitan area (Jackson, Cass, Clay, Ray and Platte counties in Missouri, and Johnson, Wyandotte and Leavenworth counties in Kansas). Projects that have been honored previously are eligible for consideration in the 2012 program based on new phases completed during 2011.

Deadline for Submissions is Friday, February 3. To Submit a Project for Consideration: For a project to be considered for the 2012 Capstone Awards, a project representative needs to complete the nomination form at www.kansascitybusinessjournal.com/nomination and submit 4-6 digital photographs that include both internal and external views (high-resolution jpeg preferred). Photographs should be sent to clockyer@bizjournals.com. You may also submit additional material that demonstrates the project’s significance. This could be in the form of press releases or news articles.

Questions? Please contact Christine Davis (cdavis@bizjournals.com or 816-777-2218). #capstonekc Presented by:

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shot was that technology can’t replace the human touch of an experienced professional, at least in certain lines of work. So, too, with traveling lawyers, virtual meetings will not replace everything they do. If technology keeps Everson home more, he said he’s “all for it.” He has seen his high of 30 road weeks a year — including frequent trips to New York City and Washington — cut down to about 20. In his spare time, he even gets banjo lessons online. But to a meet a client for the first time or get a sense of a witness he may put on the stand, he still wants to be there in person — and not just out of courtesy. “Email doesn’t replace face-to-face (interaction),” Everson said. “Human beings need to see each other to read them and understand as much as possible what someone’s thinking and what they expect of you.” Shook Hardy’s Eiszner said that’s especially true when a potential client is considering hiring him. “They want to kick the tires,” he said. “They want to do it in person.” The lawyers said it’s most crucial to be physically present in adversarial situations, such as a deposition. “Sometimes the facial expression is inconsistent with the words coming out,” Everson said. “People act differently face to face.” When Beil travels, it’s often for a six-week trial that will involve many witnesses. For a commitment of that magnitude, he needs to know what to expect from each person he calls to the stand. When it comes to preparing for a courtroom showdown, “There’s nothing like person-to-person, face-to-face interaction to judge the credibility of a witness and the effectiveness of a question,” he said. Eiszner said that he’s tried to do depositions by phone or video and that it was the “dumbest thing ever.” “You can’t look a witness straight in the eye and figure out if they’re lying by how they react to questions,” he said. “I’m sure it’s a little intimidating just having a human being instead of a speaker phone you can hang up on.” Stueve said he did one video deposition where the witness kept looking over at his off-camera lawyer. “I couldn’t see if he Stueve was giving him signals,” Stueve said. “It was more trouble than it was worth.” That’s not to say technology — which already has transformed the way litigators handle discovery and document production — won’t continue to encroach on their practices. Eiszner said he foresees even more radical changes down the road, ways to automatically resolve cases that for now are science fiction. “I don’t think we’re in that world yet, but I think it’s coming,” he said. So for the time being, expect to continue seeing these lawyers up in the air — with apologies to George Clooney. pkoepp@bizjournals.com | 816-777-2211 | Twitter: @pbkkc

| in depth: Law & Litigation | kansas city business journal | 13

January 27-February 2, 2012

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Improving housing market alters foreclosure flipping By teri schaefer | contributing Writer

Local real estate agent Chris Lengquist makes his living from people who make their livings from others’ bad luck. The independent agent and broker at Olathe-based Keller Williams Realty Diamond Partners Inc. helps investors find, buy, rehab and then lease foreclosed homes. Amid one of the worst housing markets in 50 years — and provoked by images of “Flip This House” riches — dozens of Kansas Citians are scouring the market, he said, looking for cheap properties to turn into rental income or sales. Lengquist offered a word of caution to would-be buyers: “You’re going to lose more often than you’re going to win.” That warning may or may not deter risk-takers from rushing into the slowly improving real estate market. One Johnson County investor, who asked not to be identified, said he recently lost two foreclosed homes to competitors who paid thousands of dollars more than asking prices, anecdotes that suggest the market is warming up. At the same time, a slight uptick in home values apparently has driven some part-time foreclosure investors to the sidelines. At the height of the real estate

crunch, Lengquist said, he received 15 to 20 phone calls a week from interested buyers, but that has changed. “I’m lucky to get one or two,” he said. “And those that are jumping in are taking the time to educate themselves more than in the past.” Even if investors are better prepared, experts caution, rehabbing and repurposing distressed properties is a tough go. “They are making a high-risk investment. ... This is not a game for amateurs,” said Bob Koester, a principal at Prairie Village-based MSI Financial. Koester works with lenders to secure and manage investment properties as they make their way through the foreclosure process. To offset the risk, buyers should hire an attorney who specializes in real estate to help navigate the complexities of buying a foreclosure. One of the first hurdles is obtaining a clear title, which ensures the property is free of unpaid taxes, judgments or liens. Investors also should buy title insurance, which “is of particular concern with all the fraud actions lately,” said Bill Black, associate professor of economics and law at the University of MissouriKansas City. Buyers should consider occupancy and condition of the foreclosed proper-

FORECLOSURE FALLBACK Investors had fewer foreclosure properties to choose from in 2011 than in 2010: • Johnson County had 3,423 foreclosures in 2010 and 1,842 through November 2011. • Jackson County had 6,899 foreclosures in 2010 and 2,747 through August 2011.

Buyers must ty, he said. Problems maintain utilican include a previty service as well, ous owner refusing requiring an adto leave the property ditional investor being embroiled ment — particuin bankruptcy, both larly if renting of which could mudSource: Johnson County Assessor’s Office, or selling takes dy the sale. Jackson County Court records months rather Black also recomthan weeks. mended that buyers Finally, the property should be insured seek an inspection because lenders will require one and a clean bill of health will while contractors repair and update it, something that’s expensive and easier offer peace of mind to cash buyers. Buyers should have cash reserves to said than done. “Getting a vacant property insured is a handle unexpected expenses related to an investment property and be ready to huge problem. It’s attainable, for a price,” spend it to make the home habitable and Koester said. “You either have the money, or you can’t play.” to meet code requirements. “You have no idea how long it’s been since the roof, for example, has been Teri Schaefer | Schaefer is a freelance writer in looked at,” MSI Financial’s Koester said. the Kansas City area.

Legislators again tackle changing key provisions of MHRA By MORGAN CHILSON | CONTRIBUTING Writer

Controversial legislation proposing changes to the Missouri Human Rights Act earned a veto from Gov. Jay Nixon during last year’s legislative session — and the fight is on this year with the introduction of a similar bill. Last year’s Senate Bill 188 and this year’s legislation, SB 592, have few differences, said Rich Germinder, chief of staff for Sen. Brad Lager, R-Savannah, who proposed both bills. “The same components are still there,” Germinder said. “The primary component being the changing of the causation standard from a contributing factor to a motivating factor standard.” The MHRA states that a fired individual can file a lawsuit against the employer because he or she thinks any one part of the decision related to the firing involved rights protected by MHRA, such as race, age or gender, Germinder said. Shifting to a motivating factor, which is what the federal standards use, would mean the human rights violation would have to be the main reason, he said. Supporters of the bill, which was approved Jan. 12 by the Senate Committee on Commerce, said it will bring Missouri’s law in line with federal human rights legislation. Those opposing the changes said it will weaken the rights of individuals in discrimination claims. SB 592 is expected to be among the first debated in the 2012 session. Nixon has a policy of not commenting on proposed legislation because it changes during the process, spokesman Scott Holste said. But it seems unlikely his opinions have shifted much since last year’s veto.

In a news release after the veto last year, Nixon said SB 188 would undermine the MHRA and make it harder to prove discrimination. Defense attorney Kimberly Jones, a partner in the labor and employment practice of Husch Blackwell LLP, said the legislation probably will face another veto this year, but she also said the Legislature is committed to passing the bill. Germinder said Lager has talked with business owners who want the law Kimberly Jones tightened. “Sen. Lager just Husch Blackwell LLP believes strongly in the legislation, and we hope to continue to have a dialogue with the governor’s office and work with his office to ensure passage of the legislation,” Germinder said. Mark Jess, a plaintiff employment law attorney with the Employee Rights Law Firm, testified at the hearing on SB 592 and agreed with Nixon’s assessment that its passage would weaken Missouri’s commitment to human rights. “I think that this is essentially the Republicans trying to manage the solution that is in search of a problem that doesn’t exist,” he said. “There’s not one shred of evidence that any company ever left the state of Missouri or decided not to come here because of the Mis-

‘Frankly, from the state perspective, it becomes a question of economic development.’

proposed mhra changes Here are the primary changes Senate Bill 592 proposes for the Missouri Human Rights Act: • Shifts causation, requiring plaintiffs to prove that discrimination of protected rights (such as age, sex, race, religion) was a motivating factor as opposed to a contributing factor. • Caps damages a prevailing employee could recover based on the size of the employer. • Changes individual liability so supervisors, HR professionals, the harasser and others can’t be sued personally for their actions or decisions. • Forces courts to analyze a motion for summary judgment on its merits. (Previous Missouri precedent has suggested that summary judgment is rarely, if ever, appropriate in employment cases.) • Prohibits employers from terminating employees for engaging in whistleblowing activities as defined by the bill. Source: Lawyers Mark Jess and Kimberly Jones; legislative summary

souri Human Rights Act. This idea that Missouri has to follow federal mandates is ludicrous.” Jess also said he doesn’t see the contributory versus motivating standard as being that crucial. He thinks a jury simply will determine whether human rights were violated. Another controversial aspect of SB 592 is that it changes damages awarded

through the MHRA, Husch’s Jones said. “In Missouri, we have a bit of an anomaly in that our statute, which kicks in at six employees, provides for unlimited compensatory and punitive damages in addition to lost wage and reinstatement and front pay and attorneys fees,” she said. “What you’re seeing are somewhat astronomical verdicts come out of, in particular, the urban areas. Frankly, from the state perspective, it becomes a question of economic development.” SB 592 would cap punitive damages, Jones said. According to the bill, those damages would be capped from $50,000 to $300,000 depending on the number of employees at the company. Jess called the bill’s language around caps “convoluted,” saying the MHRA never has had caps questionMark Jess and ing whether the Employee Rights changes would Law Firm adequately protect employees. But Jones said SB 592 would bring Missouri more in line with nearby states. “For example, in Colorado, you can’t get punitive damages under the state law,” she said. “In Kansas, compensatory and punitive are capped at $2,000.”

‘This idea that Missouri has to follow federal mandates is ludicrous.’

Morgan Chilson | Chilson is a freelance writer in the Kansas City area.

14 | kansas city business journal

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January 27-February 2, 2012

Growth

SALES ACADEMY | Hal Becker talks about the value in welcoming the competition as a friend | 17

Strategies

kansas city business journal |

January 27-February 2, 2012

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| Q&A |

DAVE KAUP | KCBJ

Larry Glaze stands in space being renovated for the new headquarters for Ascend Learning inside Two Hallbrook Place in Leawood.

Larry Glaze | managing principal, Jones Lang LaSalle’s Kansas City office

Larry Glaze, managing principal of Jones Lang LaSalle’s Kansas City office, works only with tenants on their office needs. Reporter Steve Vockrodt caught up with Glaze to talk about how tenants can modify and downsize their office space and get some help doing it.

NETWORKING OPPORTUNITIES Thursday, Feb. 2, 11 a.m.-1 p.m. The Enterprise Center of Johnson County, 8527 Bluejacket St., Lenexa, is having an advanced workshop on Facebook for business. The cost is $35, including a boxed lunch. Bring a laptop if you wish to follow along. Register online at www. ecjc.com. Contact Jayne Vehlewald at 913-438-2282 or jvehlewald@ecjc.com for more information. Tuesday, Feb. 7, 7:15 a.m.-8:30 a.m. The General Services Administration and co-sponsors are having their monthly small business networking breakfast at the Ewing Marion Kauffman Foundation Conference Center, 4801 Rockhill Road, Kansas City. The cost is $18 for reservations made before noon on Thursday, Feb. 2, or $20 at the door. Make reservations online at www.gsa. gov/r6smallbusiness. Call the GSA at 816926-7203 for more information, or email business.counseling@gsa.gov. See a complete calendar on Page 19.

KCBJ: Are you dealing with a lot of tenants who in some cases want to renegotiate the terms of their lease in the middle of it? Glaze: Yes, and given the erosion of effective rates, there is a strategy where you can go to a landlord early, suggest to them that under good con-

ditions they would not only remain in the space but add additional term in exchange for recasting the economics to put them in line with new tenants coming into the same building. That’s the angst, when there’s an existing tenant that finds out a new tenant has a 15 or 20 percent ... lower lease rate

than what they’re paying. The strategy there is you have to ask if this is the building you want to be in long term. If you were to extend, what improvements are necessary? Does the mechanical system fit your SEE glaze | 16

Sweepstakes can make your social media a winner “How can I drive traffic to my Facebook landing page?” “How can I increase my number of email subscribers?” “How can I create buzz and leverage that buzz to positively impact my bottom line?” These are questions we often hear from clients, and sometimes we find ourselves answering by suggesting a promotion or sweepstakes campaign. You probably have noticed an increase in the number of online sweepstakes and promotions being trumpeted on social media platforms. This is no fluke: A well-thought-out and solidly executed sweepstakes can have far-reaching effects. Case in point: The Sugar Association, a trade group whose primary goal is to educate consumers about all-natural sugar through research, dietary advice, recipes and other in-

Kate McKinney

Social Media Matters Kiran Ross formation. Its Facebook and Twitter accounts hadn’t received much traction, despite valiant efforts to engage the target audience (women, 25 to 47 years old). Pre-sweepstakes, both accounts had fewer than 400 followers combined. Using a 90-day online sweepstakes

as its cornerstone, the association set out to find more of these ladies on Facebook and attract their attention (and, ultimately, their wallets). The association decided that marketers would give away shopping cards and other prizes in hopes of building audiences in Facebook, Twitter and the team’s email program. Anyone who “liked” the association on Facebook or followed it on Twitter was entered into a weekly drawing for a $200 Visa gift card and a drawing for one of three grand prizes, valued about $500 each. Of note: The team positioned the main weekly prize as $200 in free groceries, even though it would be delivered as a free $200 gift card. “This allowed us to have a prize SEE social | 16

| Growth Strategies |

16 | kansas city business journal

January 27-February 2, 2012

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SOCIAL: Some useful takeaways FROM PAGE 15

each week, which kept the level of engagement higher, and offer something that any mom would be able to make use of,” association CEO Andrew Briscoe said. “It also tied in well with the overall food/nutrition messages.” Now that the 12-week contest was in place, they had to figure out how to promote it online — how to make it go viral. So, what exactly does “going viral” mean? This simply refers to something (a campaign, contest, video clip, etc.) gaining traction through organic means and enjoying increased visibility throughout the Web. The key? Contest entrants were given an incentive to refer friends. Anyone who persuaded friends to enter would receive additional entries themselves. The association also used paid tactics. It bought Facebook ads to kick-start the campaign. These ads

can be a highly effective, targeted way to hone in on a specific demographic with laser-like precision. The results? After the 12-week campaign, Facebook likes rose to 7,899, a 4,488 percent increase from the initial 176. Twitter logged 1,035 more followers, a 620 percent increase from the initial 167, and the association gained 3,395 more email subscribers. (Case study details courtesy of A. Sutton, Marketing Sherpa, Jan. 12, 2012.) The takeaways? • Know and focus on your target demographic. Set clear goals, such as increasing Facebook likes, gaining email subscribers, etc. • Cross-promote the sweepstakes across platforms, and be ready to provide non-sweepstakes content to share as new followers appear (show them there is value in following you beyond the chance to win). Have a

GLAZE: Tenants have several options FROM PAGE 15

needs? How is the parking? How does the configuration of space work in today’s world? If those issues can be addressed, then a blend-and-extend where you are adding term in exchange for lower economics makes sense. It also is attractive for a landlord because rather than

a three-year commitment, if you are adding a five-year or so, it gives them a chance to add a longer guaranteed cash flow to their building, which if you do enough of you can go back and refinance the building at attractive interest rates. If you are going to do a blend-and-extend, does it make sense to do it now? Is the office market bottomed out?

Scott Penning Financial Representative

RPS Financial Group 2600 Grand Blvd., Ste 600 Kansas City, MO 64108 (816) 412-1550 scottpenning.com

5251 W. 116th Place, Ste 300 Leawood, KS 66211

4601 W. 6th St., Ste. B Lawrence, KS 66049

909 East Republic, Bldg. F200 Springfield, MO 65807

727 N. Waco St., Ste. 380 Wichita, KS 67203

COMING NEXT: In the Feb. 10 column,

meet three companies doing social media right — and learn how they do it.

• Use the giveaway to beef up your email marketing database (include an opt-in as part of the entry form). • Understand that as with any contest, you always will find some people who “like” your business page and enter simply for the thrill of entering the contest ... and then promptly “unlike” your page. • Track results. Remember those goals you set? Did you exceed or fall short of them? Consider the variables you could change next time: length of promotion, prizes, Facebook ads, etc. As with any marketing promotion or social media effort, it takes time. We like how The Sugar Association set a promotion timeline of 12 weeks. This is hugely important, especially when much of the burden of the campaign’s success falls on viral marketing tactics.

plan in place: What will you do with these “eyeballs” once they are yours? • Be sure to follow platform promotion guidelines (i.e. Facebook Promotions Guidelines), site Terms of Use and local sweepstakes laws. Facebook doesn’t take kindly to “unlawful” giveaways. • Use a good promotions app or have a developer create a custom giveaway tab for your Facebook page — it needs to be well-designed, efficient and easy to use. • Make the prize relevant to your business or industry. iPads are the darling of the giveaway world right now, but consider what (if anything) they have to do with your business. Will the prize draw the attention of your target demographic, or will you accumulate followers who will show no sustained interest in your business?

Kate McKinney and Kiran Ross | McKinney and Ross own K2Media. You can email them: info@k2mediakc; follow them on Twitter: @k2mediakc; or friend them on Facebook: K2Media.

It depends on the submarket. In most of the submarkets, we’ve seen an equilibrium, where the pendulum is going to trend toward increasing rates, tend toward less incentives (from) the landlord, so it would be a good time today to lock in a guaranteed rate for the longer term if the building and the space itself is going to accomplish what you’re trying to accomplish from a culture perspective. Is there a general trend in the office market for downsizing or at least being able to have options like hoteling and so forth? Hoteling and working from home. It’s not necessarily downsizing — it’s rightsizing, finding the right balance. That’s the advantage, candidly, of moving to a new space because you have a clean space. A lot of the furniture product now is more conducive for today’s work force — the teaming, the flexibility, the hoteling. Whereas if you’ve been in the space for 10 or 15 years and you’ve grown over time in tranches, that space may not be as well suited as it should be if you were starting from scratch. But if the tenant in an existing term wanted to free up some space because they’re starting to do things like hoteling and wanted to look into saving costs, is it possible to carry that out? There’s two strategies. In exchange with the landlord, you reduce in exchange for extension. You still have the ability to sublease that excess space. We love to find a company with a friendof-the-family type or a related firm that can bunk with you in your space to control costs, but at the same time it picks up some of the surplus space. Explain that last concept more. We’re working with a firm now that has excess space. They have term left, and they aren’t sure that they want to stay in that building long term, so we’ve suggested finding a sister company that can share space, share services so their monthly burden is reduced, without having to commit to the building long term because it may not be suited to them long term. Like an architectural firm may have a firm that does modeling for them or a traffic study, so it’s an ancillary type of firm or a complementary type of firm they deal with. How much do incentives come into play in these decisions? How accessi-

ble are they to your average company? There are city incentives and state incentives. Obviously, the state incentives have been discussed a lot in Missouri versus Kansas. A lot of that is based on the philosophy of senior management. Some don’t feel that two states should be in a border war, and they think moving a mile in either direction is not what those incentives were designed for, so as a good corporate citizen, they might not pursue it. Others feel those incentives are available, and they want to take advantage of it. Those incentives have to be negotiated well in advance of that decision. Once that decision is made and your documents are signed, your leverage is gone. Do you see seeking incentives as that middle-of-term renegotiation strategy to stay put? Either state recognizes and incents growth. Those funds are available. Where we get in this Border War is how the base employees are treated. For example, if 500 jobs are in Kansas, and they are going to grow by 100, that 100 is protected in Kansas. The question is if those 500 jobs go to Missouri, Missouri can incent 600 versus 100. Growth is not the issue — it’s what happens to the base. Are they available to your smaller office tenants? It is based on the number of jobs, how much is being invested in their space and business technology. There is criteria on per-person salary, how that compares to other comparable jobs within the same circle. They are available; again, both cities and state incent growth. The real issue is what happens to the existing jobs. Each state can view those differently depending on what side of the state line you’re on. The other thought is that’s just based on incentives. You also have to have the company factor in that the corporate tax structure varies between the two. Yes, you may get incentives in one, but you may be paying more in corporate taxes. You can lower your effective lease rate with incentives without asking a lot of your landlord, right? That’s correct. ... That would be in addition to the negotiation or adjunct to the negotiation with the landlord.

January 27-February 2, 2012

| Growth Strategies |

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| SALES ACADEMY |

Welcome the competition — they don’t have to be your enemy

ost people are going to disagree with me on this next statement, and you will think that I am nuts. But it has worked for me since the mid-1970s, and I will not change now, especially if something has been proven to succeed for 34 years. Let me start by saying that I forgot this person’s name (to be mentioned later) until I was at a party a few days ago and someone asked me whether I have seen or heard from this person. I said no, not in a long, long time. In fact, the last time I saw him or spoke to him, I was 24 years old (1978, so you do the math). That question posed to me brought back some great memories that really reflect how I have not changed my position on this subject in more than three decades. At the time, when I was a salesperson for Xerox, one of my territories was a suburb of Cleveland called Beachwood, Ohio. It was a highly competitive place to sell copiers then because of the business climate of the community and all the newly at Your constructed office service buildings and industrial parks. Basically, it was a Hal great territory that Becker offered tons of new business, but at the same time, it was loaded with every copier competitor looking to sell copiers. Of the couple of dozen companies that were my competitors, one guy stood out, named Bill Lovell. He was great! So many times after I was there to do a demo on a piece of equipment, he would have an appointment right after me, or vice versa. Finally, after seeing him (too many times), I suggested that we get a cup of coffee together. Much to my surprise, he said fine. My goal here was for us to get to know each other. I was fairly confident that if I had all this respect for him (which I did), he might feel the same way about me. During our breakfast at Denny’s, I told him that I would much rather “lose” to him than any of the other people selling copiers in our territory. We then agreed to an informal pact to highly respect each other’s abilities, not to “sell against” each other and not have to just lower our price to get a deal. I am not talking about price fixing, but to admire the competition, and let the customer decide what was best for him or her. I had no idea that this idea or concept would stay with me into my late 50s and how I continue to view my competitors. To this day, my number one competitor in Cleveland is Marv Montgomery, and nationwide it is Jeffrey Gitomer, both of whom I consider good friends. In fact, three days from the writing of this column, Marv and I are meet-

ing for coffee with our other speaker friend John DiJulius. Marv and I used to teach a sales class together for our chamber of commerce back in the early and mid1990s. Today, we are still close and like to compare who we are doing business with. Trust me, we would never go after each other’s business. John has been an incredible entrepreneur who owns a number of hair salons and spas. His knowledge and understanding of customer service is incredible. When he was contemplating becom-

ing a speaker as well (not selling his business), I was thrilled to introduce him to my clients. You are probably asking, “Why would you do such a thing?” Simple: He is great at what he does, he can help my clients as well, and why not help a friend to get started in the business? Now here is the kicker. He is doing way more business than me, has an incredible reputation and is presently one of the nation’s top speakers in customer service. What took me 15 years to build in

my business, he did in five. Both Marv and John are tremendous guys. What can I say about Jeffrey Gitomer except that I have always referred to myself as “Jeffrey light.” In the mid-1990s over lunch, he said that he wanted to be America’s top sales trainer, and yep — he did it! Now do you see why I embrace competition? I hope that one day, you are as fortunate to do the same. Hal Becker | halbecker.com. Becker is an author and trainer in sales and customer service.

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your

indispensAble

Calendar Wednesday, Feb. 1, 7:30 a.m. Central Exchange South, 6201 College Blvd., Overland Park, is having a Marketing Roundtable session providing resources and support to those finding it difficult to earn more money while marketing themselves to bring in new clients. It is free for members and $30 for nonmembers, including a continental breakfast. Reservations and prepayment required. Visit www.centralexchange.org for reservations. For more information, call 816-471-7560. Wednesday, Feb. 1, 7:30 a.m. The Shawnee Chamber of Commerce is having its weekly networking event at HomeTown Buffet, 7317 Quivira Road. Go to www.shawneekschamber.com for more information. Wednesday, Feb. 1, 11:45 a.m. Central Exchange Downtown, 1020 Central St., is having “How to Develop a Measurable Social Media Strategy” with Melanie Woods, interactive marketing manager at UMB Financial Corp. It is free for members and $30 for nonmembers, including lunch. Reservations and prepayment required. Visit www.centralexchange. org for reservations. For more information, call 816-471-7560. Thursday, Feb. 2, 7 a.m. The Prospectors Club is having its weekly meeting at the Overland Park Marriott, 10800 Metcalf Ave. For more information, contact Bryan Rapp at 913-441-7800, or visit www.prospectorsclub.com. Thursday, Feb. 2, 11 a.m.-1 p.m. The Enterprise Center of Johnson County, 8527 Bluejacket St., Lenexa, is having an advanced workshop on Facebook for business. The cost is $35, including a boxed lunch. Bring a laptop if you wish to follow along. Register online at www.ecjc.com. Contact Jayne Vehlewald at 913-438-2282 or jvehlewald@ ecjc.com for more information. Thursday, Feb. 2, 11:45 a.m. Central Exchange Downtown, 1020 Central St., is having a Money Talk session about how to handle personal finances. It is free for members and $30 for nonmembers, including lunch. Reservations and prepayment required. Visit www.centralexchange. org for reservations. For more information, call 816-471-7560. Thursday, Feb. 2, noon. The Downtown Kiwanis Club is having its weekly lunch meeting at the Golden Ox, 1600 Genessee St., Kansas City. For more information, contact Ed Redhair at 816-9206800. Friday, Feb. 3, 11:45 a.m. Central Exchange Downtown, 1020 Central St., is having “Women & Leadership: You Can’t Kill All the Men” session focusing on leadership styles from both genders. It is free for members and $35 for nonmembers, including lunch. Reservations and prepayment required. Visit www.centralexchange.org for reservations. For more information, call 816-4717560. Saturday, Feb. 4, 10 a.m.-noon. UMKC’s Communiversity program is having the two-hour session “ABC: The Alphabet Soup of Medicare” at the Kansas City Waldo Branch Library at 75th and Grand streets, Kansas City. Insurance professional Jeff David will lead the session, which explains the different plans, prescription coverage and other facets of Medicare. Cost is $12 and limited to 15 people. To enroll, call 816-235-1448, or email commu@umkc.edu. Specify course No. 2002 A. Tuesday, Feb. 7, 7:15 a.m.-8:30 a.m. The General Services Administration and co-sponsors are having their monthly small business networking breakfast at the Ewing Marion Kauffman Foundation Conference Center, 4801 Rockhill Road, Kansas City. The cost is $18 for reservations made before noon on Thursday, Feb. 2, or $20 at the door. Make reservations online at www.gsa.gov/r6smallbusiness. Call the GSA at 816926-7203 for more information, or email business. counseling@gsa.gov. Tuesday, Feb. 7, 7:30 a.m. Central Exchange South, 6201 College Blvd., Overland Park, is having a Leadership Forum for those experiencing reallife leadership issues within their businesses. It is free for members and $30 for nonmembers, including a continental breakfast. Reservations and prepayment required. Visit www.centralexchange. org for reservations. For more information, call 816-471-7560. Tuesday, Feb. 7, 7:30 a.m. Blue Valley Rotary is having its weekly meeting at Blue Valley Academy, 7500 W. 149th St., Overland Park. Go to bluevalleyrotary.org for more information. Tuesday, Feb. 7, 11:30 a.m.-1 p.m. Midwest Small Business Finance will have Esther George, new CEO of the Federal Reserve Bank of Kansas City, speak at its annual meeting at Harrah’s North

source

F OR

READER’S GUIDE

AND SALES

COURT LISTINGS

The Business Leads is a collection of information gathered from Kansas City-area courthouses, government offices and informational Web sites. We gather these public records so you can build your business. No matter what business you are in, you can gain a competitive edge by reading the Business Leads. Find new and expanding businesses and new customers. Find out the area’s commercial and residential hot spots. Find clues about the financial condition of your vendors, customers or competitors. Listings for each category may vary from week to week because of information availability and space constraints. To buy lead information for Kansas City and more than 40 other markets, call 877-593-4157, or see bizjournals.com/leads. The information is available on disk or via e-mail and arrives earlier than the published version. Listings for each category may vary due to information availability and space constraints. * Indicates listings are not available for this week.

Bankruptcies

Lawsuits Filed

Court judgments

Mechanic’s Liens

Federal Tax Liens Filed

Federal Tax Liens Released

State Tax Liens Filed

State Tax Liens Released

PROSPECTING ENTRIES New Businesses

New Corporations

REAL ESTATE LISTINGS Sales/Leases

Real Estate Transactions – Commercial 21 Building Permits – Commercial

Building Permits – Residential

legal, other

Haith of Haith & Co. Realtors negotiated the renewal. TWAS Inc. Post Confirmation Estate has renewed its lease of about 9,100 square feet at 7900 N.W. 100th St., LL # 11, Kansas City. Myron Haith of Haith & Co. Realtors negotiated the renewal.

SALES/LEASES

GMJ Global Logistics Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $10,000,001 to $50,000,000; Major Creditor, Trans Advantage Inc., $6,506,290; Attorney, Jonathan A. Margolies; case #12-20078, Jan. 16, 2012. Sports Associated Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $1,000,001 to $10,000,000; Major Creditor, American Express, $65,999; Attorney, Jonathan A. Margolies; case #12-20079, Jan. 16, 2012. O’Neil Moving & Storage Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $0 to $50,000; Major Creditor, not shown; Attorney, Jonathan A. Margolies; case #12-20080, Jan. 16, 2012. O’Neil Moving Systems Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $500,001 to $1,000,000; Major Creditor, 12101 LLC, $119,338; Attorney, Jonathan A. Margolies; case #12-20081, Jan. 16, 2012. O’Neil Relocation-Kansas City Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $50,001 to $100,000; Major Creditor, Carlyle Van Lines Inc., $22,578; Attorney, Jonathan A. Margolies; case #12-20082, Jan. 16, 2012. Sports Associated Warehousing Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $0 to $50,000; Major Creditor, not shown; Attorney, Jonathan A. Margolies; case #1220083, Jan. 16, 2012.

Discount Smoke leased 933 square feet from Everest Bayberry LP at 571 S.E. Melody Lane, Lee’s Summit. Mark Arensberg of Colliers International represented the landlord. Ticketmaster renewed its lease of 805 square feet from Kansas City Life Insurance Co. at 3100 Broadway, Kansas City. Phillip James and Adam Tilton of Colliers International represented the landlord. Redwood Trading LLC leased 401 square feet from Board of Trade Investment Co. at 4800 Main St., Kansas City. Patrick Coppinger and Matthew Stover of Colliers International represented the landlord FC Stone LLC leased 376 square feet from Board of Trade Investment Co. at 4800 Main St., Kansas City. Patrick Coppinger and Matthew Stover of Colliers International represented the landlord. G. Fraley & Associates leased 271 square feet from Board of Trade Investment Co. at 4800 Main St., Kansas City. Patrick Coppinger and Matthew Stover of Colliers International represented the landlord. DBI Inc. renewed its lease of 4,580 square feet at 11656-11660 W. 90th St., Overland Park. Randi

CHAPTER 7 Southwest Refinishing Services Inc., 118 N. Conistor, Suite B-239, Liberty 64068; Assets, $2,235; Debts, $99,773; Major Creditor, 1000K LLC, $78,064; Attorney, Brock A. Patton; case #12-40128, Jan. 13, 2012.

LAWSUITS FILED

Kansas City, One Riverboat Drive, North Kansas City. Cost is $28 a seat or $220 for a table of eight. For more information, call 816-468-4989, or email info@clayedc.com. Tuesday, Feb. 7, noon. Central Exchange South, 6201 College Blvd., Overland Park, is having a session on branding yourself and growing your business with stories. It is free for members and $35 for nonmembers, including lunch. Reservations and prepayment required. Visit www. centralexchange.org for reservations. For more information, call 816-471-7560. Weekly. Business Network International groups meet weekly in the Kansas City area for referral networking. Only one person per profession may join a chapter. Go to www.bnikc.com to find locations and times, as well as which chapters have room in which categories.

Sales/Leases lists who is taking leases and who is making leases. These are gleaned from releases from commercial property managers and real estate firms.

Sports Associated Transportation Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $100,001 to $500,000; Major Creditor, Progressive, $39,781; Attorney, Jonathan A. Margolies; case #12-20084, Jan. 16, 2012. Corporate Relocation Services LLC, 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $50,001 to $100,000; Major Creditor, Rainier Oversees Movers Inc., $36,897; Attorney, Jonathan A. Margolies; case #12-20085, Jan. 16, 2012. Topeka Transfer & Storage Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $100,001 to $500,000; Major Creditor, Hays Company, $70,663; Attorney, Jonathan A. Margolies; case #12-20086, Jan. 16, 2012. Capital City Distribution Inc., 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $100,001 to $500,000; Major Creditor, Kent Erwin and Jeanie Cowan, $75,000; Attorney, Jonathan A. Margolies; case #12-20087, Jan. 16, 2012. Sports 635 LLC, 4600 Kansas Ave., Kansas City, KS 66106; Assets, $0 to $50,000; Debts, $1,000,001 to $10,000,000; Major Creditor, Kaw Valley Bank, $1,800,000; Attorney, Jonathan A. Margolies; case #12-20088, Jan. 16, 2012.

ON THE MOVE

banking, education, engineering, 19

leads

WESTERN DISTRICT OF MISSOURI KANSAS CITY - WESTERN DIVISION

Featuring:

EVENT LISTINGS Calendar

business

BANKRUPTCIES

Chapter 7 of the U.S. Bankruptcy Code involves liquidation of assets; Chapter 11 provides protection from creditors while a business reorganizes; Chapter 13 covers small organizations. DISTRICT OF KANSAS KANSAS CITY DIVISION CHAPTER 11

The following are civil suits filed in the county clerk’s office against businesses and business owners for amounts greater than $10,000. Information is listed by case and case number. JOHNSON COUNTY Clarkson Construction Co. v. Indian Creek Land & Investment Co. LP, other, case #12 CV 00132, Jan. 5, 2012. M West Inc. v. Ad Diamonds Inc., other, case #12 CV 00161, Jan. 6, 2012. Riffe Construction Co. v. Rigmaster Power Corp., other, case #12 CV 00213, Jan. 10, 2012. James Walter Moran v. Joseph Michael Sirna/ Soave Automotive Group Inc. dba Aristocrat Motors, automobile tort, case #12 CV 00253, Jan. 10, 2012. Amanda Strom/Anderson Strom minor/ Jeremy Strom MD v. Kansas City Womens Clinic PA/Henry Bishop MD, medical malpractice, case #12 CV 00269, Jan. 10, 2012. Kyle Toms/Janice Toms/Brian Toms/KJ&B Nebraska Inc. v. James Sheridan/Sheridan’s Franchise Systems Inc. dba SFS Inc., other, case #12 CV 00291, Jan. 11, 2012. James Matteoni v. American Energy Solutions Inc., other, case #12 CV 00293, Jan. 11, 2012. Lansing Trade Group LLC v. Oceanconnect LLC, (type not shown), case #12 CV 00307, Jan. 11, 2012. Suhor Industries Inc. v. Safeporch Inc., (type not shown), case #12 LA 00072, Jan. 5, 2012. McCarthy Chevrolet Inc. v. Kuhl Carriers Inc. dba Tuhls Towing R&T Transport Inc., other, case #12 LA 00193, Jan. 9, 2012. Executive Beechcraft Inc. v. Clientav International Inc., real estate, case #12 LA 00227, Jan. 9, 2012. Metro Roofing Services Inc. v. Roundbehler Construction Inc., other, case #12 LA 00229, Jan. 9, 2012. Shawnee Mission Medical Center Inc. v. Fun Services of KC LLC, (type not shown), case #12 LA 00339, Jan. 11, 2012. Capital One Bank NA v. Carla L. Page dba Inside Edge Ltd., (type not shown), case #12 LA 00351, Jan. 11, 2012. Corefirst Bank and Trust v. Lee Roberts dba Richland Motors, (type not shown), case #12 LA 00359, Jan. 11, 2012. Schendel Services Inc. v. Sean Davis dba Econo Lodge, (type not shown), case #12 LA 00360, Jan. 11, 2012. WYANDOTTE COUNTY KC Winnelson Co. Co. v. Murray and Sons Construction Co. Inc. et al., other, case #2011 CV 000051, Jan. 6, 2012. Kansas City Power & Light Co. v. Amino Bros. Co. Inc., tort, case #2012 LM 000099, Jan. 10, 2012.

| Business Leads |

20 | kansas city business journal

January 27-February 2, 2012

kansascitybusinessjournal.com

JACKSON COUNTY Ronald A. Wimbush Sr. v. Catherine Hunt/ Reece & Nichols Realtors Inc./Stephen R. Adams/Cheryl Y. Cobb/Homestead Inspection Co. LLC, tort, case #1216 CV 00126 CC, Jan. 6, 2012. Kansas City Power & Light Co. v. Town and Country Disposal of Western Missouri Inc. et al., property damage, case #1216 CV 00248 AC, Jan. 10, 2012. Richard Franklin v. John Knox Village dba John Knox Village Care Center, wrongful death, case #1216 CV 00287 CC, Jan. 9, 2012. Donna Huff v. Hallmark Cards Inc./3M Co., personal injury, case #1216 CV 00289 CC, Jan. 9, 2012. Rockhill Orthopaedics PC/Dickson-Diveley Midwest Orthopaedic Clinic PA v. Rightchoice Managed Care Inc. dba blue Cross Blue Shield of Missouri/HMO Missouri Inc., breach of contract, case #1216 CV 00307 CC, Jan. 5, 2012. Gaynell Goodwin/Ronald E. Goodwin v. Matthew T. Kneidel MD/Carondelet Orthopaedic Surgeons PA/St. Joseph Medical Center, personal injury, case #1216 CV 00346 CC, Jan. 6, 2012. Phoenix Payments LLC v. 9X Data Services LLC, breach of contract, case #1216 CV 00349 CC, Jan. 6, 2012. Loya Fuel next friend/Deshawn J. Fuel minor v. Operation Breakthrough Inc. et al., personal injury, case #1216 CV 00406 CC, Jan. 7, 2012. Lift Fit Inc. v. Eva Mayfield/Shawn Mayfield dba AKKA-Karate USA, suit on account, case #1216 CV 00466 AC, Jan. 6, 2012. Rhonda Wesolak/John Wesolak v. Mercer Capital Ltd./John Anthony Salino/Lynn Gordon Schultz, other, case #1216 CV 00487 CC, Jan. 10, 2012. John R. Russ v. AT&T Inc./Howco Utilities LLC et al., property damage, case #1216 CV 00490 CC, Jan. 9, 2012. CLAY COUNTY Joseph D. Baldridge/Julie A. Baldridge v. Invacare Corp./Mobility4Less LLC, personal injury, case #12CY CV 00256 CC, Jan. 9, 2012. John A. Beffa v. Steven P. Smith/Quality Traffic Control Inc./Caleb M. McQuerrey et al., personal injury, case #12CY CV 00292 CC, Jan. 11, 2012. Kaba Ilco Inc. v. KK Mahadev KCI Inc. dba Days Inn, suit on account, case #12CY CV 00336 AC, Jan. 11, 2012. PLATTE COUNTY Gerald T. Ford v. Mike Klingensmith/Embassy, Suite KCI Airport, personal injury, case #12AE CV 00108 CC, Jan. 11, 2012.

Spencers Music Room Inc./Spencers Music Room, 134 N. Clairborne Road, Olathe 66062, $5,466, (941/6721), Book/Page 201201 002764, Jan. 10, 2012. JACKSON COUNTY Studio 213 Inc., 213 E. Gregory Blvd., Kansas City 64114, $5,745, (941), document #2012 E 0002198, Jan. 9, 2012. Missouri Real Estate Exchange LLC, 11333 Hickman Mills Drive, Kansas City 64134, $17,517, (941/1065), document #2012 E 0002202, Jan. 9, 2012. Dasta Construction MGT Co., 1600 Genessee St., Suite 860, Kansas City 64102, $17,135, (941/1120), document #2012 E 0002205, Jan. 9, 2012. GOS LLC, 18813 E. 25th St. S., Independence 64057, $11,108, (941), document #2012 E 0002225, Jan. 9, 2012.

FEDERAL TAX LIENS RELEASED

The following includes released liens of $5,000 or more filed against local businesses with the county recorder. Information is listed in this order: lien payer, address, amount, date. JOHNSON COUNTY Prio Inc., 7101 College Blvd., Suite 735, Overland Park 66210, $46,848, (941), Book/Page 201201 002776, Jan. 10, 2012. Chase Group Inc., 7300 W. 110th St., Suite 560, Overland Park 66210, $18,702, (941), Book/Page 201201 002767, Jan. 10, 2012. JACKSON COUNTY Midland Electrical Corp., 10220 E. 65th St., Suite A, Raytown 64133, $94,774, (941), document #2012 E 0002214, Jan. 9, 2012. IE Group LLC, 923 N.E. Woods Chapel Road, Suite 246, Lee’s Summit 64064, $28,211, (941), document #2012 E 0002230, Jan. 9, 2012.

STATE TAX LIENS FILED

The following includes tax liens of $5,000 or more filed against area businesses with the county recorder. Information is listed in this order: name of business, address, amount, type of lien, date. JOHNSON COUNTY Associated Drywall Contractors Inc., 781 E. Warren St., Gardner 66030, $7,685, (withholding), Book/Page 201201 003201, Jan. 11, 2012. Sires Inc./Johnny Bruscos New York Style Pizza, 11180 Lone Elm Road, Olathe 66061, $15,034, (withholding), Book/Page 201201 003198, Jan. 11, 2012. JACKSON COUNTY

COURT JUDGMENTS

The following are judgments issued by the county court’s office involving businesses and business owners. Information is listed by case and case number. JOHNSON COUNTY Hearst Television Inc. dba KMBC-TV v. Advanced Construction Solutions LLC, $7,750, plaintiff, case #11 LA 10933, Jan. 5, 2012. Scansource v. Daymark Solutions Inc., $15,176, plaintiff, case #11 LA 13016, Jan. 5, 2012. JACKSON COUNTY Division of Employment Security v. Employment Alternative LLC, $6,486, plaintiff, case #1216 MC 0045 CC, Jan. 9, 2012. CLAY COUNTY Division of Employment Security v. Creative Supports LLC, $6,729, plaintiff, case #12CY TJ 00009 CC, Jan. 9, 2012.

FEDERAL TAX LIENS FILED

The following includes federal tax liens of $5,000 or more filed against local businesses with the county recorder. Information is listed in this order: name of business, address, amount, type of lien, date. JOHNSON COUNTY Phytotechnology Laboratories LLC, P.O. Box 12205, Shawnee Mission 66282, $54,574, (941), Book/Page 201201 002761, Jan. 10, 2012. Kansas Trailer Service Inc., 7211 W. 98th Terrace, Suite 100, Overland Park 66212, $14,388, (941), Book/Page 201201 002755, Jan. 10, 2012.

Deco Companies Inc., $8,959, (withholding), document #2012 E 0002549, Jan. 10, 2012. Ewing Marion Kauffman Foundation, $27,306, (withholding), document #2012 E 0002554, Jan. 10, 2012. Gros Manufacturing LLC, $13,979, (withholding), document #2012 E 0002559, Jan. 10, 2012. Kemper Sports Management Inc., $6,317, (withholding), document #2012 E 0002590, Jan. 10, 2012. Patients First Pharmacy Inc., (address not shown), $60,796, (withholding), document #2012 E 0002623, Jan. 10, 2012. Trailwoods Pizza Shoppe LLC, (address not shown), $11,466, (withholding), document #2012 E 0002663, Jan. 10, 2012. Walter Transport Inc., (address not shown), $13,979, (withholding), document #2012 E 0002665, Jan. 10, 2012. Willoughby Design Inc., (address not shown), $10,090, (withholding), document #2012 E 0002667, Jan. 10, 2012. Fazs Inc., 9816 Holly St., Kansas City 64114, $5,314, (sales/use), document #2012 E 0002752, Jan. 10, 2012. KC Smoke Stack BBQ Inc., 8920 Wornall Road, Kansas City 64114, $5,145, (sales/use), document #2012 E 0002755, Jan. 10, 2012. LPF Industries Inc., 5000 E. 59th St., Kansas City 64130, $6,257, (sales/use), document #2012 E 0002792, Jan. 10, 2012. Mack Fashion Unlimited Inc., 9401 Blue Ridge, Kansas City 64138, $11,097, (sales/use), document #2012 E 0002793, Jan. 10, 2012. Sika Corp., 14201 Botts Road, Grandview 64030, $23,732, (sales/use), document #2012 E 0002819, Jan. 10, 2012. SM Missouri Inc., 7 E. 62nd Terrace, Kansas City 64113, $11,491, (sales/use), document #2012 E 0002821, Jan. 10, 2012.

Stephanie Entertainment Inc., 3599 Cahuenga, Los Angeles 90068, $8,678, (sales/use), document #2012 E 0002824, Jan. 10, 2012. Sunny Dev. Hotel LLC, 3402 N.W. Jefferson, Blue Springs 64015, $10,846, (sales/use), document #2012 E 0002837, Jan. 10, 2012. Sunshine Energy LLC, 340 Royal Palm, Palm Beach, FL 33480, $334,578, (sales/use), document #2012 E 0002838, Jan. 10, 2012. TJS Shoe Express Inc., 932 S. Northern, Independence 64053, $12,273, (sales/use), document #2012 E 0002839, Jan. 10, 2012. Trans Border Intermodal Serv., 7092 Universal, Kansas City 64120, $18,708, (sales/use), document #2012 E 0002841, Jan. 10, 2012. PLATTE COUNTY Carter Service LLC, P.O. Box 32, Weston 64098, $6,090, (sales/use), document #S 021146, Jan. 6, 2012. Northland Auto Body Inc., $6,644, (withholding), document #S 021158, Jan. 6, 2012.

STATE TAX LIENS RELEASED

The following includes released tax liens of $5,000 or more filed against local businesses. Information is listed in this order: lien payer, address, amount, date. JACKSON COUNTY Arrowhead Investments Inc., 1219 Lydia Ave., Kansas City 64106, $30,622, (sales/use), document #2012 E 0002266, Jan. 9, 2012. D&D Water Damage Restorations Inc., 9819 Holly, Kansas City 64114, $9,308, (sales/use), document #2012 E 0002738, Jan. 10, 2012. NLSM Enterprises Inc., 5909 N. Cleveland Ave., Gladstone 64119, $9,770, (sales/use), document #2012 E 0002766, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,497, (withholding), document #2012 E 0002770, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,518, (withholding), document #2012 E 0002771, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,529, (withholding), document #2012 E 0002772, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,517, (withholding), document #2012 E 0002773, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,538, (withholding), document #2012 E 0002774, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,551, (withholding), document #2012 E 0002775, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,540, (withholding), document #2012 E 0002776, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,562, (withholding), document #2012 E 0002777, Jan. 10, 2012. Prestige Business Services, (address not shown), $10,576, (withholding), document #2012 E 0002778, Jan. 10, 2012. Torre Specialties Inc., 4112 Pennsylvania, Suite A-100, Kansas City 64111, $10,551, (sales/use), document #2012 E 0002808, Jan. 10, 2012. PLATTE COUNTY Sara Lee Corp., 3 1st National Plaza, Chicago 60615, $7,056, (sales/use), document #S 021136, Jan. 6, 2012. Complete Home Concepts Inc., 4380 N. Belgium Ave., Riverside 64150, $21,254, (sales/use), document #S 021178, Jan. 6, 2012. Hibiscus Designer Florist Inc., 10015 N.W. Ambassador Drive, No. 105, Kansas City 64153, $5,834, (sales/use), document #S 021181, Jan. 6, 2012.

NEW BUSINESSES

New Businesses/Licenses lists new and renewed occupational licenses in the area. The entries are obtained from local municipalities. For more information, contact the cities listed. WYANDOTTE COUNTY CE Construction, 6271 State Route Z, Union Star 64493, construction. All Under One Roof Inc., 716 S. Meadowbrook Square, Gardner 66030, construction. ABC Construction, 15140 S. Keeler St., Olathe 66062, construction. Desserts By Angie LLC, 1220 N. 79th St., Kansas City, KS 66112, retail trade. Consignment Gallery and Auctions, 1220 N. 79th St., Kansas City, KS 66112, retail trade.

KANSAS CITY Holy Family Books and Gifts, 4624 Holke Court, Blue Springs 64015, books and magazines retail. Buttercup Design, 8703 Meadow Lane, Leawood 66206, business services. The Falcon Management Group Co., 8236 Park St., Lenexa 66215, business services. Corrpro Co. Inc., 17988 Edison Ave., Chesterfield 63005, construction. W.J. Electric Inc., 956 Crown Pointe Estates, Ballwin 63021, construction. Avco Electrical Services LLC, P.O. Box 14, Montgomery City 63361, construction. Penntech Inc., 107 S.W. Lake Village Blvd., Blue Springs 64014, construction. Lorenzo Hernandez Masonry, 14908 Bellaire Ave., Grandview 64030, construction. Donavan Hite, 1107 S.W. 75th Road, Holden 64040, construction. Williams Sewer, 16400 E. Gudgell Road, Independence 64055, construction. Scharig Alarm Systems Inc., 17201 E. U.S. Highway 40, Independence 64055, construction. Mechanical Piping Inc., 207 S.E. Noeleen Lane, Lee’s Summit 64063, construction. Unique Painting & Home Repairs, 521 Oakridge Drive, Liberty 64068, construction. Building Pro LLC, 1305 Hamilton St., Pleasant Hills 64080, construction. Gutter Guys Inc., 307 Sky Vue Drive, Raymore 64083, construction. KC Field Services LLC, 58 T St., Lee’s Summit 64086, construction. Dwaine Homan, P.O. Box 523, Smithville 64089, construction. Whiteman Construction Inc., 1817 Mantle Ave., Lebanon 65536, construction. Crockett Electric Co. Inc., 4651 Brewer Place, Leavenworth 66045, construction. Carlos Construction, 319 W. Park St., Olathe 66061, construction. Done Right Renovation LLC, 14970 W. 123rd Circle, Olathe 66062, construction. McGeorge Construction & Restoration, 27299 Columbia Road, Paola 66071, construction. Real Estate Renovations Inc., 2008 W. 84th St., Leawood 66206, construction. All Pro Roofing and Remodeling, 12120 State Line Road, Leawood 66209, construction. Blackhorst Worldwide, 11411 Grant St., Overland Park 66210, construction. Lifestyle Homebuilders LLC, 11237 Nall Ave., Leawood 66211, construction. Leithead Masonry Inc., 21010 W. 72nd Terrace, Shawnee 66218, construction. Gateway to Outdoor Solutions, 5320 Summer Circle, Imperial 63052, landscape contractor and planting. Creative Contours Lawn Maintenance, 23104 S. Highway C, Peculiar 64078, lawn service. Image Staffing LLC, 106 W. 11th St., Kansas City 64105, misc. personal services. KC Arborist Inc., P.O. Box 25282, Overland Park 66225, ornamental schrub and tree services. Blue Bird LLC, 8236 Park St., Lenexa 66215, renting or leasing. Dayton Ventures LLC, 908 Baltimore Ave., Kansas City 64105, service not otherwise listed. Kemper Marketing LLC, 908 Baltimore Ave., Kansas City 64105, service not otherwise listed. Quincu Marketing LLC, 908 Baltimore Ave., Kansas City 64105, service not otherwise listed. Euronet Worldwide Inc., 3500 College Blvd., Leawood 66211, service not otherwise listed.

NEW CORPORATIONS

New Corporations lists new businesses in the area. The entries are obtained from local municipalities. For more information, contact the cities listed. KANSAS MJ McEvoy Enterprises Inc., 17605 W. 111th Terrace, Olathe 66061. F&B Consulting LLC, 130 N. Cherry St., Third Floor, Olathe 66061. Financial Wealth Inc., 10504 S. Highland Lane, Olathe 66061. American Residential Services LLC, 1809 W. Ferrel Drive, Olathe 66061. The Word Publishing LLC, P.O. Box 725, Olathe 66061. Tips Estetica Latina LLC, 119 N. Chester St., Olathe 66061. KC Building & Repair LLC, 1516 W. Santa Fe St., Olathe 66061. Valvets LLC, 12700 S. Spooncreek Road, Olathe 66061. Creative Solutions Inc., 12741 S. Constance St., Olathe 66062. Diesel Ranch LLC, 15428 S. Darnell, Olathe 66062. Physician Referral Network LLC, 14632 S. Halsey St., Olathe 66062.

| Business Leads |

January 27-February 2, 2012

kansas city business journal |

kansascitybusinessjournal.com

Erhard Energy LLC, 16600 W. 143rd Terrace, Olathe 66062. Sicomoro LLC, 1605 E. Cedar Place, Olathe 66062. Specialists In Sports & Orthopedic Rehabilitation LLC, 15200 W. 123rd St., Olathe 66062. JDRP Enterprises LLC, 16421 W. Locust St., Olathe 66062. Drilling Ventures 1.0 LLC, 19930 S. Country View Drive, Spring Hill 66083. McClan Construction LLC, 19532 Metcalf, Suite B, Stilwell 66085. DT Burks Enterprises LLC, 828 Quindaro Blvd., Kansas City, KS 66101. Preston Paper LLC, 1911 45th Ave., Suite B, Kansas City, KS 66103. In The Air Advertising LLC, 3156 Wood View, Apt. 205, Kansas City, KS 66103. BMF Motorsports LLC, 6611 Woodend Ave., Kansas City, KS 66106. Mondotackle LLC, 5202 N. 99th St., Kansas City, KS 66109. KCRT Construction Specialists LLC, 7150 Kaw Drive, Kansas City, KS 66111. Bradford Enterprises #6 LLC, 6000 W. 61st Terrace, Mission 66202. Winslow LLC, 6408 Nall Ave., Mission 66202. Nova Real Estate LLC, 10620 Johnson Drive, Suite 100, Shawnee 66203. Pfeiffer Farms LLC, 4820 Cody St., Shawnee 66203. Rebuilding Lives Inc., P.O. Box 3151, Shawnee 66203. A-1 Home Renovations & Painting Services LLC, 10249 W. 49th Place, Merriam 66203. David M. Chavez Insurance Agency Inc., 4980 Roe Blvd., Suite B, Roeland Park 66205. Synergy Performance & Rehabilitation LLC, 2000 W. 47th Place, Westwood 66205. Blasi Investments LLC, 6231 Glenfield Drive, Fairway 66205. Claimkit LLC, 2023 W. 86th Terrace, Leawood 66206. Pegasus Capital Management LLC, 8414 Meadow Lane, Leawood 66206. A Perfect Roof Inc., 9122 Lee Blvd., Leawood 66206. American Foundation For Constitutional Continuity, 9928 High Drive, Leawood 66206. Group Cousins Property LLC, 3901 W. 83rd St., Prairie Village 66208. Group Riviera Court LLC, 3901 W. 83rd St., Prairie Village 66208. Julia Skidmore DDS LLC, 7515 Nall Ave., Prairie Village 66208. 161st Street Development LLC, 12505 Juniper St., Leawood 66209. Proctor Associates Inc., 13010 Granada Road, Leawood 66209. SG Consulting LLC, 13281 Fairway, Leawood 66209. Kansas City Metro Girls Lacrosse Association, 13008 Glenfield Road, Leawood 66209. BMW LLC, 12406 Howe Drive, Leawood 66209. Bon Bon Enterprises LLC, 6820 W. 121st Court, Overland Park 66209. NETDNA LLC, 11150 Hauser, Overland Park 66210. DTIH - Narrow Tree LLC, 10851 Mastin, Overland Park 66210. Henry Levi Diamonds Inc., 11620 Metcalf Ave., Overland Park 66210. Imaging Service Alternatives LLC, 11538 Bluejacket St., Overland Park 66210. Allied Media LLC, 7101 College Blvd., Suite 400, Overland Park 66210. KSF Holdings LLC, 11000 King, Overland Park 66210. Lazarus Rehabs LLC, 11613 Tomahawk Creek Parkway, Unit A, Leawood 66211. Calvert’s Co. KCK LLC, 8326 Melrose Drive, Lenexa 66212. Black & White Enterprises LLC, 9215 Slater, Overland Park 66212. 3 Under Par Enterprises LLC, 8504 W. 129th Terrace, Overland Park 66213. Allen Commercial Cleaning Services LLC, 11872 W. 91st, Overland Park 66214. Bath & Kitchen Co. LLC, 11948 W. 95th St., Lenexa 66214. Law Office Of Brandon J. Warner LLC, 14810 W. 84th St., Lenexa 66215. Elite Auto LLC, 13906 W. 108th St., Lenexa 66215. Got Junk Cars LLC, 14300 W. 97th Terace, Lenexa 66215. JDC LLC, 11401 Strang Line Road, Lenexa 66215. Birdman Tim LLC, 7922 Hallet St., Lenexa 66215. Campus Sales LLC, 13107 W. 74th St., Shawnee 66216. Lowery Design Group LLC, 15602 W. 61st St., Shawnee 66217. Wood Properties LLC, 15301 W. 87th St. Parkway, Suite 225, Lenexa 66219. MLH Properties Inc., 16206 W. 80th Place, Lenexa 66219.

Practiware LLC, 10602 Lackman Road, Lenexa 66219. Korum Group Inc., 15200 W. 79th St., Lenexa 66219. Lenexa Chiropractic LLC, 8853 Sunset Drive, Lenexa 66220. BD Products LLC, 9449 Redbud Lane, Lenexa 66220. Care Design LLC, 14018 Knox, Overland Park 66221. Invigoren LLC, 14616 Eby St., Overland Park 66221. Enviux LLC, 15116 Horton St., Overland Park 66223. Prairie Capital LLC, 13721 Horton Drive, Overland Park 66223. Superior Granite Solutions LLC, 7935 W. 142nd Terrace, Overland Park 66223. World On Fire Productions LLC, 15149 Pawnee Circle, Leawood 66224. Dolphin Development LLC, 4745 W. 135th St., Leawood 66224. Piscator Media LLC, 3140 W. 138th Terrace, Leawood 66224. Staley Properties LLC, 3408 W. 154th St., Overland Park 66224. Vince Holdings Corp., 14553 Sherwood St., Leawood 66224. Southwick Lakeco LLC, P.O. Box 25390, Overland Park 66225. Midwest Insurance Partners Inc., 24225 W. 51st St., Shawnee 66226. JACKSON COUNTY AABB Investments LLC, 601 N.W. Jefferson St., Blue Springs 64014. Johns Creek Freight Inc., 1 N.W. Ooida Drive, Grain Valley 64029. Honkamp Krueger & Co. PC, 200 N.E. Missouri Road, Suite 298, Lee’s Summit 64086. Empire Financial Co., Becky Ziegler, 4510 Belleview, Suite 300, Kansas City 64111. Autobank Of Kansas City Inc., Becky Ziegler 4510 Belleview, Suite 300, Kansas City 64111. CLAY COUNTY Kobiceaux LLC, 131 E. Washington St., P.O. Box 16, Kearney 64060. J Drew LLC, 1140 White Oak Court, Liberty 64068.

REAL ESTATE TRANSACTIONS COMMERCIAL

The following includes transactions filed with the county recorder. Information is listed in the following order: seller’s name, buyer’s name and address, property address or description and price. JOHNSON COUNTY CK Holdings LLC to Highland Park LLC, 19641 W. 106th Terrace, Olathe 66061, Lot 63 Raven Crest, Book/Page 201201 000019. CK Holdings LLC to Highland Park LLC, 19642 W. 106th Terrace, Olathe 66061, Lot 71 Raven Crest, Book/Page 201201 000021. Alcock Shawnee LLC to Ketchum Real Estate Investments Shawnee LLC, 9465 Wilshire Blvd., Suite 440, Beverly Hills, CA 90212, Lot 1 Westbrooke Plaza, Book/Page 201201 001240. Arvest Bank to Eaton Property Management LLC, 6025 Gibbs Road, Kansas City 66106, Lots 13/14/15/Block 6 South Park, Book/Page 201201 001310. Bluestem LLC to James Engle Custom Homes LLC, P.O. Box 3300, Olathe 66062, Lot 52 Bluestem, Book/Page 201201 001411. OHM Buildings Partnership to JKM Equities LLC, Lot 1 Mission Vale, Book/Page 201201 001418. Universal Build Inc. to Blue Valley Investment Corp., Lot 29 Summerwood Estates, Book/Page 201201 001557. Oliver Family Partnership LP to 15500 W. 117th Holdings LLC, Tract I/Lots 1/2 Sunflower Mazda, Book/Page 201201 001581. Creekside Developers LLC to RM Mears LLC, 6915 Monticello Road, Shawnee 66226, Lot 43 Creekside Woods, Book/Page 201201 001678. W-O Enterprises to 15500 W. 117th Holdings LLC, Tract I/all of Lot 1 Sunflower Dodge/Tract II/ Tract A Sunflower Mazda, Book/Page 201201 001695. 119/7 Roadside Partners LLC to James Engle Custom Homes LLC, Lot 118 Estates of Forest View, Book/Page 201201 001772. Jeffrey A. and Brenna J. Morgan to Summit Custom Homes LLC, 40 S.E. 30th St., Lee’s Summit 64082, Lot 9 The Estates of Prairie Haven, Book/ Page 201201 001814. Robert A. Thomas Jr./Leigh Anne Thomas to Quvira Inc., 100 Crescent Blvd., Lake Quivira 66217, Lot 119 and the Northerly one-half of Lot

120 Quvira-West Side District, Book/Page 201201 001841. Bluestem LLC to James Engle Custom Homes LLC, P.O. Box 3300, Olathe 66062, Lot 31 Bluestem, Book/Page 201201 001861. William N. Stueck/M. Lee Stueck to Thornfield 167 LLC, 6701 W. 167th St., Stilwell 66085, Tract 1/all of the W. 1/2 of the N.W. 1/4 of Sec. 20/ Township 14/Range 25/Tract 2/part of the N.W. 1/4 of Sec. 20/Township 14 S./Range 25 E. Tract 3/ part of the N. 1/2 of Sec. 20/Township 14/Range 25, Book/Page 201201 002205. Summerhill Associates to Thornfield 167 LLC, 6701 W. 167th St., Stilwell 66085, beginning at the S.W. corner of the N.E. 1/4 of Sec. 20/Township 14 S./Range 25 E., Book/Page 201201 002207. Summerhill Associates to Stueck Shawnee Properties LLC, 6701 W. 167th St., Stilwell 66085, part of the S.W. quarter of Sec. 22/Township 12 S./ Range 23 E., Book/Page 201201 002213. G&S Properties LLC to Soya Investments LLC, the N. 75 feet of Lot 15 Marty’s, Book/Page 201201 002398. James T. and Nancy M. Easton to CK Holdings LLC, all of the S. 79 feet of the N. 159 feet of Lots 6/7 Proctor Place Annex except the W. 20 feet thereof reserved for road, Book/Page 201201 002491. Grey Oaks LLC to James Engle Custom Homes LLC, Lot 474 Eagle View of Grey Oaks, Book/Page 201201 002673. Big O Holding Co. LLC to Ribco LLC, 8728 Rosewood Drive, Prairie Village 66207, Tract 1/ Lot 3/Block 1 Olathe Hyundai/Tract 2/part of Lot 1/2/Block 1 Olathe Hyundai, Book/Page 201201 002706. C.H. Development LLC to Parkway Holdings LLC, P.O. Box 26170, Overland Park 66225, Lot 117 Chapel Hill, Book/Page 201201 002801. Patrick B. Voight to Mercantile Properties LLC, 11880 Switzer Road, Overland Park 66210, Lot 9/ Block 2 Greenwich Hills, Book/Page 201201 002809. Patrick B. and Martha Voight to Malcolm Knarr Roth Investments LLC, 9101 Reeder Road, Overland Park 66214, Lot 9 Block 2 Greenwich Hills, Book/Page 201201 002810. SLS Medical Properties LLC to Southridge Medical LLC, 500 Park Blvd., Suite 1010, Itasca, IL 60143, Lot 1 Southridge Office Park, Book/Page 201201 002855. Grey Oaks LLC to James Engle Custom Homes LLC, Lot 470 Eagle View of Grey Oaks, Book/Page 201201 002911. 119/7 Roadside Partners LLC to James Engle Custom Homes LLC, Lot 114 Estates of Forest View, Book/Page 201201 002918. Ironwood Properties LLC to James Engle Custom Homes LLC, P.O. Box 3300, Olathe 66062, Lot 20 Woodland Valley, Book/Page 201201 002941. Renner 160 LLC to Rodrock Land Co. Inc., 12643 Hemlock, Overland Park 66213, part of Tracts 1-6 Fairfield at Heritage Park, Book/Page 201201 003136. Rose Daniel aka RoseMarie Wilborn/Greg Daniel to HSBC Mortgage Service Inc., 2929 Walden Ave., Depew, NY 14143, Lots 6/7/Block 15 Burris & Ocheltrees, Book/Page 201201 003330. WYANDOTTE COUNTY Federal National Mortgage Association to Harbour Portfolio VII LP, 8214 Westchester, Suite 635, Dallas 75225, Lot 60 Stony Trails #2, Book/Page 2012 R 00149. Federal Home Loan Mortgage Corp. to Prime Group LLC, 2429 S. 47th St., Kansas City 66112, Lot 1/Block 13 Stony Point Heights, Book/Page 2012 R 00160. Peoples Bank to Su Casa LLC, P.O. Box 681544, Riverside 64168, Lot 6/Block 2 Western Highlands, Book/Page 2012 R 00242. Mendez Properties LLC to Auto Property Solutions LLC, Lots 15-19/Block 27 Armourdale, Book/Page 2012 R 00310. Kansas CVS Pharmacy LLC to SCP 2011-C37017 LLC, 2525 Fairmount St., Suite 200, Dallas 75201, Tract 1/all of Lot 1 Hudson Place/Tracts 2/3 together with rights and eassements, Book/Page 2012 R 00431. JACKSON COUNTY KC Metro Homes LLC to USG Holdings LLC, 8606 Cambridge Ave., Kansas City 64138, Lot 228 Loma Vista, Book/Page 2012 E 0001267. KCM Assets LLC to Damien and Fern Patterson Self Managed Super Fund LLC, P.O. Box 6083, St. Joseph 64506, Lot 9 Pin Oak Heights, Book/Page 2012 E 0001326. Diane C. and David M. Jones to Mortgage One Corp. dba HFC Mortgage Corp., 636 Grand Regence Blvd., Brandon, FL 33510, Lot 20 Sni-A-Bar Farms, Book/Page 2012 E 0001338.

Jamil A. and Pamela M. Azzeh to The Islamic Society of Greater Kansas City Inc., 8501 E. 99th St., Kansas City 64134, Lot 38 Blue Ridge Farms, Book/Page 2012 E 0001414. Hunt Midwest Residential LLC to SAB Construction LLC, P.O. Box 942, Lee’s Summit 64063, Lot 535 Eagle Creek, Book/Page 2012 E 0001510. Hunt Midwest Residential LLC to SAB Construction LLC, P.O. Box 942, Lee’s Summit 64063, Lot 525 Eagle Creek, Book/Page 2012 E 0001533. Bank of America NA to Canmova Investments LLC, P.O. Box 322, Elmira, Ontario, Canada N3B 2Z6, the S. 11.5 feet of Lot 376 and all of Lot 377 except the S. 10 feet Rockhill Gardens, Book/Page 2012 E 0001688. US Bank National Association to Glowbalize Real Estate Management LLC, 452 W. 46th St., Kansas City 64111, the W. 50 feet of Lots 18-21/ Block 2 Home Lawn except the N. 25 feet of Lot 18, Book/Page 2012 E 0001708. Hawthorn Bank to Preferred CarNection LLC, 11704 Milton Thompson, Lee’s Summit 64086, all that part of Lots 166-172 and the 15.0 feet wide alley or pathway lying S. of and adjoining said Lot 172 all lying W. of the Westerly right-of-way line of Missouri State Highway, No. 7, Book/Page 2012 E 0001833. Nelson Ikejimba to Innovations 365 LLC, 3514 Clinton Parkway, Suite A-329, Lawrence 66045, Lot 13/Block 19 Ruskin Heights, Book/Page 2012 E 0001959. Brent Marriott to Holy Cow Enterprises LLC, 555 N.W. Blue Parkway, Suite B, Lee’s Summit 64063, Lot 4/Block 7 Laurel Slopes, Book/Page 2012 E 0002159. Raccoon Respite LLC to Gardon Inc., 809 N.E. 80th Terrace, Kansas City 64118, the E. 15 feet of Lot 8 and all that part of Lot 7 lying W. of the W. line of Cypress except that part in 9th St. and except the S. 74 feet of that portion of said Lots 7/8 and except that part in alley Lloyd Place, Book/ Page 2012 E 0002174. Gemaco Inc. to Reubenite LLC, 200 N.E. Gaslight Lane, Blue Springs 64014, Lot 11 Mill Springs Business Park, Book/Page 2012 E 0002263. Herbert A. and Joyce M. Ridgely to Gregory Boulevard Investments LLC, 8014 State Line, Suite 210, Leawood 64015, Lot 42 Kimstin Place, Book/Page 2012 E 0002321. GMAC Mortgage LLC to GYF Investments LLC, 309 S.E. Hackmore, Lee’s Summit 64082, Lot 3 East Haven Acres, Book/Page 2012 E 0002344. Divya LLC aka DLVYA LLC to TM Capital LLC, 1829 N.W. 93rd Terrace, Kansas City 64155, Tract 1/Lot 752 Ruskin Heights/Tract 2/Lot 776 Ruskin Heights/Tract 3/Lot 2 Craig Crest/Tract 4/Lot 292 Ruskin Village/Tract 5/Lot 27/Block 15 Ruskin Heights/Tract 6/Lot 22/Block 10 Ruskin Heights, Book/Page 2012 E 0002389. WARP Investments LLC to Jillaroo Investments LLC, P.O. Box 6083, St. Joseph 64506, Lot 229 Loma Vista, Book/Page 2012 E 0002392. Federal Home Loan Mortgage Corp. to JB Funding LLC, 712 W. 48th, No. 503, Kansas City 64112, All of the N. 32 feet of the S. 33 feet of Lot 8 Albany, Book/Page 2012 E 0002646. Federal Home Loan Mortgage Corp. to JB&T Properties LLC, 12016 Summit St., Kansas City 64145, Lot 49/Block 3 Kensington Place, Book/Page 2012 E 0002673. CP&T Investments LLC to Glowbalize Real Estate, 7109 Olive St., Kansas City 64132, Tract I/ Lots 25/26 Mayfield/Tract II/the W. 10 feet of Lot 12 andall of Lot 13 Ball’s/Tract III Lot 318 except the W. 46 feet thereof Marlborough Heights/Tract IV/ Lots 34/35 Marlborough Plaza, Book/Page 2012 E 0002850. CLAY COUNTY DCL Tract II LLC to Lock Construction Co. LLC, 15901 Francis Road P.O. Box 1086, Kearney 64060, Lot 37 Brooke Meadows, Book/Page 6754/134. SB Development Inc. to EWOL Properties LLC, 18120 Baxter Road, Lawson 64062, all of Lot 1 Innovation, Book/Page 6754/151. Barry Ridge Homes LLC to Amber Lakes Homes LLC, 8901 N. Brighton Ave., Kansas City 64156, Lot 445 Amber Lakes, Book/Page 6754/3. Shawn C. and Amy R. Mann to Couchman Construction Inc., 1050 W. Couchman Drive, Kearney 64060, Lot 44 Private Gardens, Book/Page 6755/74. Eddie and Furzaneh Fadaee to Koocheh Tank LLC, 125 E. Baker St., Suite 245, Costa Mesa, CA 92626, a tract of land in the N.E. quarter of the N.E. quarter of Sec. 4/Township 50/Range 32, Book/ Page 6756/112. Springleaf Financial Services Inc. fka American General Financial Services Inc. dba American General Financial Services Inc. DE to Liberty Town Properties LLC, 668 Thornton

| Business Leads |

22 | kansas city business journal

January 27-February 2, 2012

kansascitybusinessjournal.com

St., Liberty 64068, all of Lot 13/Block 2 Liberty Heights, Book/Page 6756/47. Hunt Midwest Residential to Summit Custom Homes, 40 S.E. 30th St., Lee’s Summit 64082, Lot 178 Woodneath Farms the Highlands, Book/Page 6756/48. Amit and Pooja Nath to C. Smith Consulting Inc., 15000 N.W. 64th, Parkville 64152, Lot 49 Williamsburg, Book/Page 6756/5. Hunt Midwest Residential to Summit Custom Homes, 40 S.E. 30th St., Lee’s Summit 64082, Lot 157 Woodneath Farms The Highlands, Book/Page 6756/51. Hunt Midwest Residential to Summit Custom Homes, 40 S.E. 30th St., Lee’s Summit 64082, Lot 169 Woodneath Farms The Highlands, Book/Page 6756/62. CitiMortgage Inc. to Federal National Mortgage Association, P.O. Box 650043, Dallas 75265, Lot 78 Brooke Meadows, Book/Page 6757/70. Spyglass Development Co. LLC to Newcastle Homes LLC, 3715 Beck Road, Building C, St.

Joseph 64506, Lot 58 Woodland Creek, Book/Page 6759/15. Greyhawke LLC to Gary Kerns Homebuilders LLC, 3515 Beck Road, Building C, Suite 201-A, St. Joseph 64506, Lot 213 The Reserves at Greyhawke, Book/Page 6759/18. Trophy Homes Inc. to Hearthside Homes of Kansas City Inc., 6601 Royal St., Building A, Pleasant Valley 64068, all of Lot 54 Brentwood Hills, Book/Page 6759/27. Trophy Homes Inc. to Hearthside Homes of Kansas City Inc., 6601 Royal St., Building A, Pleasant Valley 64068, Lot 55 Brentwood Hills, Book/Page 6759/29. Trophy Homes Inc. to Hearthside Homes of Kansas City Inc., 6601 Royal St., Building A, Pleasant Valley 64068, all of Lot 61 Brentwood Place, Book/Page 6759/33. Trophy Homes Inc. to Hearthside Homes of Kansas City Inc., 6601 Royal St., Building A, Pleasant Valley 64068, all of Lot 64 Trails of Brentwood, Book/Page 6759/35.

PLATTE COUNTY North River Holdings LLC to JDB Investments Inc., 6014 N. Missouri Highway 9, Suite A, Parkville 64152, Lot 28 Montebella, Book/Page 1183/669. Quality Land Holdings LLC to Robertson Construction LLC, 4235 N.W. 76th St., Kansas City 64151, Lot 2 Silverbrooke, Book/Page 1183/699. Forest Park Development Co. LLC/Forest Park Development Co. of KC LLC to Robertson Construction LLC, 14809 N.W. 66th St., Kansas City 64152, Lot 602 Thousand Oaks, Book/Page 1183/782. Patrick T. Ragan/Carol A. Ragan to Quest Leasing LLC, P.O. Box 681372, Kansas City 64168, Lot B Chapel Woods, Book/Page 1183/811. Matrix Realty LLC to Francis Investment Group, 1744 Iron St., North Kansas City 64116, Lot 3/Block A Parkville Heights, Book/Page 1183/820. JDB Investments Inc. to Integrity Homebuilders LLC, 14530 N.W. 61st St., Kansas City 64152, Lot 275 Thousand Oaks, Book/Page 1183/901.

Join us as we celebrate Kansas City’s Healthiest Employers at an awards luncheon on Monday, February 13 at the Sheraton Overland Park To make your reservation, or for more information, go to www.kansascitybusinessjournal.com/event.

Learn more about the honored organizations that are committed to creating a healthy workplace. We will recognize each of the Healthiest Employers with additional recognition given to the firstplace winner in each of the categories. Networking and registration begins at 11 a.m. Ballroom doors open by 11:30 a.m. with the program and luncheon commencing shortly after doors open. Individual tickets and tables are available for purchase.

Registration deadline is Feb. 3. #healthykc

BUILDING PERMITS COMMERCIAL

2012 Healthiest Employers 5-499 Employees: Athletic & Rehabilitation Center IMA Inc. McCownGordon Construction Pro Athlete Inc. WaterOne

500-999 Employees: Belton School District John Knox Village Stinson Morrison Hecker SureWest Union Bank & Trust

1000-3499 Employees: Deffenbaugh Industries Faith Technologies Inc. JE Dunn Construction MRIGlobal North Kansas City Hospital

Presented by:

Presenting Partner:

HEALTHIEST EMPLOYERS

National Residential Development Co. LLC to J3 Pandi LLC, P.O. Box 14146, Parkville 64152, Lot 15 Townhomes at the National, Book/Page 1184/108. Forest Park Development Co. of Kansas City LLC to Jenkins Family Farm LLC, 17482 E. Arnold Road, Rich Hill 64779, part of Sec. 32/ Township 51/Range 34, Book/Page 1184/116. Forest Park Development Co. of Kansas City LLC/Forest Park Development Co. LLC/ Forest Park Development Co. of KC LLC to James Engle Custom Homes LLC, P.O. Box 3300, Olathe 66063, Lot 571 Thousand Oaks, Book/Page 1184/125. Forest Park Development Co. of Kansas City LLC/Forest Park Development Co. LLC/ Forest Park Development Co. of KC LLC to Jay Jackson Builders Inc., 6110 N.W. Hickory, Parkville 64152, Lot 522 Thousand Oaks, Book/Page 1184/129. Forest Park Development Co. of Kansas City LLC/Forest Park Development Co. LLC/ Forest Park Development Co. of KC LLC to Jay Jackson Builders Inc., 6110 N.W. Hickory, Parkville 64152, Lot 598 Thousand Oaks, Book/Page 1184/131. Joyce Elaine Haffey aka Joyce E. Haffey to TMK Pros LLC, 6911 N.W. 76th Terrace, Kansas City 64152, Lot 24/Block 6 Platte Ridge, Book/Page 1184/148. Forest Park Development Co. of Kansas City LLC/Forest Park Development Co. LLC/Forest Park Development Co. of KC LLC to Joseph Lane Homes LLC, P.O. Box 317, Liberty 64069, Lot 566 Thousand Oaks, Book/Page 1184/224. Bell Development Inc. to Brittany Ridge Developers LLC, 12553 S. Hagan Lane, Olathe 66062, Lot 117 Brittany Woodscastle, Book/Page 1184/270. Forest Park Development Co. of Kansas City LLC/Forest Park Development Co. of KC LLC/ Forest Park Development Co. LLC to JDB Investments Inc., 6014 N. Missouri Highway 9, Suite A, Parkville 64152, Lot 229 Thousand Oaks, Book/Page 1184/301. Peterson Development Co. Inc. to Casa Bella Construction Inc., 9137 N. Flora, Kansas City 64155, Lot 4 Embassy Park, Book/Page 1184/303. Platte County Acquisition LLC to Gary Kerns Homebuilders LLC, 3515 Beck Road, Building C, Suite 201-A, St. Joseph 64506, Lot 10 Copper Ridge, Book/Page 1184/307. Platte County Acquisition LLC to Gary Kerns Homebuilders LLC, 3515 Beck Road, Building C, Suite 201-A, St. Joseph 64506, Lot 11 Copper Ridge, Book/Page 1184/309. Hillsof Oakmont LLC to Gary Kerns Homebuilders LLC, 3515 Beck Road, Building C, Suite 201-A, St. Joseph 64506, Lot 222 Hills of Oakmont, Book/Page 1184/311. River North Development LLC to Northland Expansion LLC, 5325 Faraon St., St. Joseph 64506, Lot 11 Parkville Commons, Book/Page 1184/318. Burley Acres Inc. to Duke Farms LLC, 77 Kittansett Loop, Henderson, NV 89052, part of Sec. 18/Township 53/Range 35, Book/Page 1184/321. FCB Real Estate Holdings LLC to PC Homes LLC, 2501 N.W. 102nd Terrace, Kansas City 64155, Lots 1/2/3/9/10/14/15-17/19-21/23/24/26/36-39/41-45 Brookfield, Book/Page 1184/43. Billy L. Knighton/Jody A. Knighton to Expert Body & Mechanical LLC, 604 First St., Platte City 64079, Lots 1/2/Block 27 Platte City, Book/Page 1184/67. WB Three LLC to Dan Rowe Properties LLC, 3016 N.W. 62nd Terrace, Kansas City 64151, Lot 26 Drakes Crossing, Book/Page 1184/9.

3500+ Employees: Cerner Corp. Children’s Mercy Hospitals Saint Luke’s Health System Sprint Truman Medical Centers Sponsored by:

JOHNSON COUNTY OVERLAND PARK J&M Contracting Inc., commercial alteration at 13453 Switzer Road, Refresh Medical Spa, $60,000. Johnson County Specialists Remodel, commercial alteration at 6710 W. 121st St., First Trust Mortgage (partial demolition), $50,000. WG Construction Inc., commercial alteration at 11880 College Blvd., Fifth Floor, (remodel), $61,901, 500 square feet. J.E. Dunn Construction, commercial alteration at 11401 Lamar Ave., Black & Veatch World Headquarters, $589,031. WYANDOTTE COUNTY

™

Questions? Contact Christine Davis (cdavis@bizjournals.com or 816-777-2218)

Barnett Commercial, commercial addition at 3317 Brown Ave., Gerding Gardens/Jamal Convenience Store/Express Mart, $400,000.

| PEOPLE ON THE MOVE |

January 27-February 2, 2012

kansas city business journal |

kansascitybusinessjournal.com

Vogt Kevin Vogt has been promoted to controller at Adams Dairy Bank. Previously, Vogt was accounting officer. Vogt is accountable for the day-to-day leadership, direction and management of bank compliance and policies; accounting, finance, financial reporting and analysis; and all bank information systems.

Previously, Kater was director of technical programs and curriculum at the Kansas Board of Regents. Kater will be responsible for providing leadership and strategic planning for Park Distance Learning, which houses all of Park’s distance learning operations, including its campus centers outside the Kansas City area and online. He will supervise a large staff and guide their efforts in helping Park stay on the cutting edge of online education.

engineering

education Holden

Kater Charles Kater has joined Park University as associate vice president for distance learning.

Carl Holden has been promoted to associate at Henderson Engineers Inc. Holden has more than eight years of experience. He has been project manager or mechanical engineer for a variety of HEI’s education, sustainable,

The Kansas City Business Journal invites you to share news of new employees or promotions. If you would like to submit a photo with your item, electronic photos must be in color, no less than 300 ppi and JPGS or TIFS. Because of space and layout considerations, photos are not guaranteed to run. Submit your People On The Move online at www.bizjournals.com/kansascity/potm/form. has been promoted to vice president at Henderson Engineers Inc. Previously, Schafer was associate. Schafer has more than 12 years of experience. He will be principal-in-charge of the commissioning and sustainable conceptual design teams.

health care, retail and government projects.

and reviewing HEI’s contracts.

Maurer

Lewis

Mark Maurer has been promoted to associate at Henderson Engineers Inc. Maurer has more than 31 years of experience in electrical construction, engineering and security system design for government, correctional, educational and sports facilities. He is a senior technology specialist for HEI’s Collective Tech.

Kevin Lewis has been promoted to vice president at Henderson Engineers Inc. Previously, Lewis was associate. Lewis has more than 11 years of experience. He has been involved in the design of numerous sports facilities and high-end retail establishments.

Tiffany Arnold has been promoted to associate at Henderson Engineers Inc. Arnold has been with HEI since 2009. She works as a corporate legal counsel and risk management specialist, creating

Schafer Dustin Schafer

legal

and litigation. She counsels companies on compliance and investigation response and has extensive experience assisting public companies with information collection and review to effectively respond to government inquiries. Harse also acts as outside counsel for internal company investigations and represents corporate officers in federal criminal cases arising from investigations. She also defends participants charged in criminal mortgage fraud cases.

Sparks Matthew Sparks has joined Bryan Cave LLP as associate. Sparks will practice with the firm’s commercial litigation client service group.

Harse Angela Harse has been promoted to partner at Husch Blackwell LLP. Previously, Harse was an associate. Harse joined the firm in 2003. She concentrates her practice in white-collar criminal defense; business litigation and government compliance; investigations;

joined the firm in 2001. He has focused his practice on commercial bankruptcy matters including defending and enforcing the rights of creditors, representing unsecured creditors’ committees, prosecuting claims on behalf of bankruptcy trustees and assisting with the restructuring of financially distressed companies. He has also represented the receivers of insolvent insurance carriers on novel matters.

Fielding Michael Fielding has been promoted to partner at Husch Blackwell LLP. Previously, Fielding was an associate. Fielding

other Jenny Wolff has joined Tandus Flooring as account executive. Scott Dulitz has

joined United BioSource Corp. as senior director, manufacturer services. Previously, Dulitz was vice president/general manager at AccessMED LLC. Dulitz will provide strategic leadership for UBC’s clinical manufacturer services operation and will have overall operational responsibility for the UBC Access Solutions’ adherence/compliance, site of care and nursing call center services. Ira Morris Fogg has joined Travois Design & Construction Services LLC as inspector. Fogg conducts work-in-place building inspections for new construction and rehabilitation projects developed through the Low Income Housing Tax Credit program. Matthew Bland has been promoted to asset manager at Travois New Markets LLC. Previously, Bland was financial analyst. Bland handles accounts receivable and payable, prepares financial reporting and coordinates financial audits.

Information provided includes Lazard Middle Market LLC and other subsidiaries of Lazard Ltd.

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usiness journal

Janu ar y 27 – FEBRUARY 2, 2012

CAREER OPPORTUNITIES

Technical Support Engineer

Service Delivery Manager

Systems Analyst

needed by Ericsson in Overland Park, KS, to utilize knowledge of Cisco to provide support for customers resolving complex technical problems within the IP Operations’ top−tier support group. Requires Masters or foreign equivalent in Electrical or Electronic Engineering, Engineering, Computer Engineering, Computer Science, or Telecommunications and two (2) years of experience in providing technical support for telecommunication systems networks and providing diagnostics and creating strategic solutions to correct complex networked and/or wireless systems problems utilizing knowledge of Cisco OR Bachelors or foreign equivalent in Electrical or Electronic Engineering, Engineering, Computer Engineering, Computer Science, or Telecommunications and five (5) years of progressive experience in providing technical support for telecommunication systems networks and providing diagnostics and creating strategic solutions to correct complex networked and/or wireless systems problems utilizing knowledge of Cisco. To apply, email resume to Eus.Jobsearch.T@ericsson.com and MUST reference Job ID# 12-KS-TSE3-547.

needed by Ericsson in Overland Park, KS, to manage the customer interface with respect to all post in−service Customer Service deliveries on IMS, FEMTO, PII and SDP based Customized solutions. Requires Masters or foreign equivalent in Electrical Engineering, Electronic Engineering, Telecommunications Engineering, Computer Science, Computer Engineering, MIS, or related field and (2) two years of experience in customer management support in the telecommunications industry for IMS, FEMTO, PII and SDP based solutions for CDMA networks, TSP based platforms including system operational experience to collect debug data, troubleshoot issues, test fixes, implement features, review performance statistics, and assist customers with maintenance activities OR Bachelors or foreign equivalent in Electrical Engineering, Electronic Engineering, Telecommunications Engineering, Computer Science, Computer Engineering, MIS, or related field and (5) five years of progressive experience in customer management support in the telecommunications industry for IMS, FEMTO, PII and SDP based solutions for CDMA networks, TSP based platforms including system operational experience to collect debug data, troubleshoot issues, test fixes, implement features, review performance statistics, and assist customers with maintenance activities. To apply, email resume to Eus.Jobsearch.T@ericsson.com and MUST reference Job ID# 12-KS-SDM-737.

needed by Ericsson in Overland Park, KS, to design, set up and carry out workforce management system implementations utilizing the Ericsson Workforce Management System. Requires Masters or foreign equivalent in Computer Science, Computer Engineering, Electrical Engineering, or related field and 3 years of experience in maintaining, implementing, and executing workforce management systems utilizing Click Software

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January 27-February 2, 2012

Opinion

kansas city business journal |

kansascitybusinessjournal.com

Business Journal K A N S A S

C I T Y

Established 1982

1100 Main St., Suite 210 Kansas City, MO 64105 816-421-5900 Fax: 816-472-4010 e-mail: kansascity@bizjournals.com

Publisher: Joyce Hayhow jhayhow@bizjournals.com editorial Editor Brian Kaberline bkaberline@bizjournals.com Managing Editor Russell Gray rgray@bizjournals.com

Multimedia Designer Brad Harbold bharbold@bizjournals.com

advertising Director of Advertising Sales Terry Hillman thillman@bizjournals.com

Associate Editor of Online Content Suzanna Stagemeyer Associate sstagemeyer@bizjournals.com Sales Manager Stacie Prosser Associate Editor sprosser@bizjournals.com of Special Projects Krista Klaus Senior kklaus@bizjournals.com Account Executives Therese McGill Design Editor tmcgill@bizjournals.com Chris Curry ccurry@bizjournals.com Staff Writers James Dornbrook jdornbrook@bizjournals.com FINANCIAL SERVICES, MANUFACTURING, BANKING

Venture capital plays a vital role in U.S. economy

he presidential primaries have taken an unfortunate turn as the term “vulture capitalism” has found its way into the political lexicon and headlines. Misinformed or misguided candidates have managed to vilify an institution that could well be one of the best solutions to reignite our ailing economy — venture capitalism. My company is just one of many proof points that venture capital is the fuel of innovation and job creation throughout the United States. I am a co-founder of Kansas City-based Handmark Inc., one of the world’s leading mobile app companies. Our company was initially funded by venture capital — financial capital provided to early-stage, high-potential, high-risk, high-growth startup companies. This description fits Handmark and thousands of other cuttingedge companies to a “T,” companies that would not see the light of day without the high-risk venture investment. My partners and I founded Handmark in 2000 and our subsidiary, OneLouder Apps, in 2011. We set out on a mission to connect people with

important information on their mobile phones — first news, weather and sports, and later mobile access to Facebook, Twitter and group texting. Eleven years later, “app” has become a household word, but surviving and building our vision of a mobile apps business during the early days would not have been possible without the resources that our venture capital GUEST partners proCOLUMN vided us. Since our founding, Augie our vencapiGrasis III ture tal-backed business has directly and indirectly created hundreds of challenging jobs in the Midwest and has also provisioned millions of mobile phones with important information, such as real-time news, sports scores, weather forecasts and social network updates. As we have grown, we have attracted employees from all over the country and recruited talented young people from local

universities. It’s likely that some of our key people will use what they learn here at Handmark and go on to create their own great companies in the future, undoubtedly with the help of venture capital. These are huge benefits for our local economy and the economy of the United States. None of this would be possible without the resources that venture capital partners can provide. Handmark’s venture capital partners — Apax Ventures, Borealis Ventures, Hanna Ventures and Motorola Ventures — provide far more than just money. Their principals have founded and grown great companies themselves, and they continually contribute their expertise and advice to help Handmark successfully grow our business. There are no guarantees for our investors or for us, as entrepreneurs. If we were to fail, there would be no government bailout. These venture capitalists would lose the money they invested. Our team at Handmark works hard every day to earn our success and make sure our investors get their return. When that happens, we know that they will have

earned every penny of it by taking an early risk on the undeveloped mobile phone market, an unproven idea and our optimistic management team. And we will both have added more jobs to our local and regional economy at the same time. Venture capital is not for the risk averse. An equal number of companies fail to those that succeed. Many entrepreneurs who fail once come back again and build great companies. A majority of these opportunities are fueled by venture capital. It is impossible to live through a day without the use of virtually hundreds of products or services that were funded with venture capital. So, regardless of your political bias, make no mistake about it, venture capital is the fuel to building highgrowth, cutting-edge businesses that grow our economy. Let’s be sure that this great engine for economic growth and technological innovation does not become another victim of a misapplied negative political sound bite! Augie Grasis III | Grasis is co-founder and chairman of Handmark Inc., a Kansas City-based company that develops mobile applications.

Susie Prosser soprosser@bizjournals.com Account Executives André Davis aldavis@bizjournals.com Sandy Patchen spatchen@bizjournals.com

Brenna Hawley bhawley@bizjournals.com REPORTER/COPY EDITOR

subscriber services

Paul Koepp pkoepp@bizjournals.com LEGAL, UTILITIES, ADVERTISING/MARKETING

Audience Development Director Kent Barthol kbarthol@bizjournals.com

Alyson Raletz araletz@bizjournals.com TECHNOLOGY, TELECOM

Circulation Account Executive Matt Scott mattscott@bizjournals.com

David Twiddy davidtwiddy@bizjournals.com HEALTH CARE, administration TRANSPORTATION Business Manager Steve Vockrodt Kathy Barajas svockrodt@bizjournals.com kbarajas@bizjournals.com REAL ESTATE, DEVELOPMENT Bookkeeper/ Jonna Lorenz jlorenz@bizjournals.com DIRECTOR OF RESEARCH

creative services Director of Creative Services Jim Hinds jhinds@bizjournals.com

Credit Manager Juli Norman jnorman@bizjournals.com Event Coordinator Christine Lockyer Davis clockyer@bizjournals.com Administrative Assistant Geri Hennessy-Lantz ghennessy-lantz@bizjournals.com

Kansas City Business Journal is a publication of American City Business Journals Inc., 120 W. Morehead St., Suite 400, Charlotte, NC 28202 Whitney Shaw, President and CEO Ray Shaw, Chairman (1989 to 2009) Copyright 2012. All rights reserved. Business Journal Publications Inc., dba Kansas City Business Journal. Reproduction or use without permission of editorial or graphic content in any manner is prohibited. Kansas City Business Journal is a Copyright Clearance Center registered publication.

| from the front | January 27-February 2, 2012

26 | kansas city business journal

kansascitybusinessjournal.com

COMMERCE TOWER TENANTS Here are four prominent tenants that remain in the Commerce Tower: • Downtown Council of Kansas City • Seigfreid Bingham Levy Selzer & Gee PC • Van Osdol & Magruder PC • Foland Wickens Eisfelder Roper & Hofer PC

COMMERCE: Tenants unaffected FROM PAGE 1

able to deploy capital into the building and has been able to pay nearly all the property’s vendors money they were owed. Tenants have been notified of the receivership, and other than paying rent to a different entity, the move appears to have no immediate effect on tenants. HSBC’s court filing indicated that Hertz allegedly also was not paying operating expenses. That prompted the bank to seek a receiver to protect the integrity of the property. “The receiver pretty much takes over like a property manager. They collect monies for the owner, or the lender in this case,” said Charles Miller, a real estate lawyer at Lewis Rice & Fingersh LC. “The lender wants to make sure the money coming into the property is going toward the obligations ... necessary to keep the property well-maintained and functioning.” The note required Hertz to make monthly payments of $132,388, which doesn’t include operating costs, interest, taxes and so forth. The principal balance on the note is $20.7 million. That payment for a note of that size is “on the very low side,” said Pete Heaven, a real estate lawyer at Lathrop & Gage LLP. Commerce Tower, considered Class B space, is 54 percent leased. Downtown’s Class B vacancy rate is 13.2 percent. Ted Murray, co-CEO of Colliers International, said that roughly speaking, an office building wants to be about 80 percent leased to generate strong cash flow. Commerce Tower lost several highprofile tenants in 2010. KeyBank Real Estate Capital left 75,000 square feet when it opted for a 10-year lease at the Sprint Nextel Corp. campus in Overland Park. The Greater Kansas City Chamber of Commerce and the Kansas City Area Development Council also left that year for new digs at Union Station. Tim Schaffer, executive vice president of RED Brokerage LLC, said the Commerce Tower situation speaks to the challenge out-of-town owners face in leasing a building in Downtown. “It’s a great piece of architecture. When the Kempers owned it, they kept it full because of their relationships,” he said. “They were an active participant in the ownership of it. The buildings Downtown under local ownership tend to fare much better. Anybody that owns a building Downtown, the owner has to take a pretty active role in management and leasing and keeping tenants.” Wilkerson will be paid $225 an hour for his work. NAI Capital will be paid $10,000 a month. svockrodt@bizjournals.com | 816-777-2206 | Twitter: @st_vockrodt

TAXES: School finance plan complicates discussions FROM PAGE 3

Still, Olson said: “This is a bigger plan than we’ve ever seen. It’s definitely a big change in direction from the last 20 years, which I think is needed.” A tax study group convened by Senate President Steve Morris, R-Hugoton, to look at Brownback’s plan and other proposals was set to meet for a third and final time on Jan. 27. Allen Ford, a University of Kansas accounting professor who sits on the panel, said much of the discussion so far has been from “people who have skin in the game” and are looking to preserve specific tax credits and exemptions. A group of architects spoke out against taxing professional services, an idea firmly opposed in Johnson County. Realtors and homeowners are up in arms about losing the mortgage interest deduction. Ford said he has doubts about the argument by supply-side economist Arthur Laffer, whom Brownback brought in to pitch the plan, that lower rates can reverse outmigration and stagnant job creation. Complicating the discussion is Brownback’s school finance plan, which would redistribute property taxes to boost state school aid by about $90 million during a

Kansas tax numbers Fiscal 2011 state and local tax revenue: $12.4 billion Primary revenue sources: property tax (32 percent), sales tax (28 percent), income tax (24 percent) Other taxes: cigarettes, 79 cents/pack (17 cents in Missouri); gasoline, 24 cents/gallon (17.3 cents in Missouri) What would the governor’s plan do? • Reduce individual income tax from three brackets ranging from 3.5 percent to 6.45 percent to two brackets, 3 percent and 4.9 percent. • Eliminate non-wage business tax for LLCs, Scorps and sole proprietorships. • Keep sales tax at 6.3 percent, including fully taxing groceries, with 0.4 percent going to the highway fund. • Eliminate about two dozen exemptions and deductions, including the earned-income tax credit for low-income earners. Sources: Governor’s office, Kansas Department of Revenue

five-year period. “Kansas does not have an income tax problem. Kansas has a property tax problem,” said Sen. Tom Holland, D-Baldwin City. “The governor is putting more and more pressure on property taxes.” Kansas already has a flatter income tax

EYEBALLS: Launch is set for 2013 FROM PAGE 3

ked eye, allowing modern cameras to pick up all the detail needed for a match. “Vasculature is very unique. Even if you clone yourself, you don’t get the same vascular patterns,” said UMKC Associate Professor Reza Derakhshani, one of the inventors of the technology. Derakhshani, a computer science professor who focuses on biometrics, said the method isn’t perfect — eye diseases and death can prohibit verification. Rush said he plans to pitch the technology to enterprise customers who then would devise consumer solutions, such as identification for mobile banking or online file sharing. James Brazeal, manager of the Office of Technology Transfer at UMKC, initially marketed the patent as a homeland security application. “My main focus was really the standard biometric market, the police work,” Brazeal said. “Toby has really focused

VEATCH: Mantra: Do things differently FROM PAGE 3

majored in environmental technology at Kansas State University “I had an adviser that didn’t show up, and so I got put with an adviser that was the dean of civil engineering,” she said. “And he said: ‘Why are you in environmental technology? You should be in engineering.’” She switched and married her original interests with engineering, eventually leading Black & Veatch’s technical solutions unit. What she called the “cradle to grave” team touched nearly all facets of Black & Veatch’s water business. But her expertise is in wastewater

it down. A lot of times, what we think is completely different than how an entrepreneur might see it.” The story of how the technology got into Rush’s hands reflects Kansas City’s tightly knit circle of entrepreneurs. Through the UMKC Innovation Center, Brazeal was referred to Gary Fish, CEO of Kansas City-based FishNet Security Inc. Then being sold as a solution using traditional cameras, Fish said he saw a better use for it with mobile technology, but he passed on the opportunity. “It could be taken in a lot of different ways,” Fish said. “But the first thing I told UMKC is a company needs to be built around this technology, and I simply don’t have the time to do it.” Fish brought in Jon Darbyshire, the former CEO of Overland Park-based Archer Technologies whose Archer Foundation operates a business incubator. Darbyshire tossed the idea to Rush, who was looking for a new venture after Rush Tracking Systems sold to Delaware-based Total-Trax

Black & Veatch — global water division Description: The division focuses on engineering solutions for safe drinking water and wastewater management in domestic and international markets, plus work with hydropower, dams, and river and coastal management. Division’s top official: President Cindy Wallis-Lage Address: 8400 Ward Parkway, Kansas City, MO 64114 Employees: 2,600 Division revenue: $759 million Internet: www.bv.com/Markets/Water Email: waterinfo@bv.com treatment, which the company is looking to as a segment for growth under WallisLage’s leadership, Rodman said. Many U.S. municipalities are grappling with federally mandated sewer infrastructure improvements, triggering a wealth of en-

structure than Missouri, where 10 brackets range from 1.5 percent to 6 percent. “In order to get lower rates, you have to give up some of the deductions and credits we have,” Ford said. “We may be rearranging winners and losers.” Bill Fox, an economics professor at the University of Tennessee who studies state tax policy, said a flatter tax structure doesn’t have to mean less revenue if the rates are chosen correctly. “If you raise the same revenue with lower rates, you’re a winner,” he said. “But if you’re raising the effective rates on lower income people and lowering them on high-income people, there is an equity question there to ask.” Brownback’s plan does not immediately affect corporate income tax, which has two tiers at 4 percent and 7 percent. Missouri’s rate is 6.25 percent. But it would eliminate non-wage business tax for some small business forms, which could create a wave of companies converting to limited liability corporations, S-corporations and sole proprietorships. Fox said states “have to be really cautious” about forgoing tax revenue from entire categories of businesses. pkoepp@bizjournals.com | 816-777-2211 | Twitter: @pbkkc

EyeVerify

EyeVerify’s patented technology uses a cellphone camera to scan the white of the eye for verification. This technology is cheaper than the current standard of iris scans.

Inc. in the summer. EyeVerify is based out of the Enterprise Center of Johnson County while trying to raise $1 million in seed capital. Rush has applied for $500,000 in Kansas angel tax credits and plans to hire four full-time employees by March. The company now employs Rush and one other person, plus a handful of contract workers. Rush is sponsoring two students to continue biometric research as he prepares to roll out a prototype in the second quarter. He plans to test the product in the third and fourth quarters and have a formal launch in 2013. araletz@bizjournals.com | 816-777-2234 | Twitter: @AlysonRaletz

gineering work. Among her career’s proudest achievements is work dealing with water supply challenges in the Southwest. Projects in the region, including a Scottsdale, Ariz., water treatment plant that became the first large-scale facility to use a reverse osmosis filtration system, offered her the freedom to come up with creative solutions. “There were great opportunities to look and see how you could do things differently,” she said. “There weren’t constraints.” This is the mantra she intends to use to lead the global water division, she said. She wants the engineers to seek out nontraditional, cost-effective ways of solving client problems. Wallis-Lage succeeds Dan McCarthy, who left the company in December, a company spokesman said. araletz@bizjournals.com | 816-777-2234 | Twitter: @AlysonRaletz

| from the front |

January 27-February 2, 2012

kansas city business journal |

kansascitybusinessjournal.com

HOSPITALS: Pain of uncompensated care grows for KC-area institutions FROM PAGE 1

$64 million — between what the hospital spends to treat Medicaid patients and reimbursement for that care. Medicaid covers 70 percent to 80 percent of the actual cost of care, she said, and those patients have become half of the hospital’s caseload. Lawrence said the large stock of cash has since come in handy as the trends of low-paying patients and declining reimbursements continued in 2011. “(2010) was a very unusual year,” she said. “We don’t do that every year, and when we do, it’s important that we preserve as much of it as we can to benefit years like now that are much leaner.” The University of Kansas Hospital reported net income of $67.1 million in 2010, up almost 59 percent. Revenue increased 11 percent to $830 million. Spokesman Dennis McCulloch said hospital officials expect the trend to continue. KU Hospital bought the Kansas City Cancer Center’s network of clinics last year and is completing a three-story addition to accommodate more patients. “We are a very full hospital most of the time,” McCulloch said. “That’s the biggest challenge for us — capacity.” St. Joseph Medical Center in Kansas City and St. Mary’s Medical Center in Blue Springs each bounced back from net losses in fiscal year 2009, recording net income of $12.8 million and $3 million, respectively. Revenue rose almost 11 percent at St. Joseph and almost 9 percent at St. Mary’s. “I’d like to say there was some magic event that took place, but

FINANCIAL CHECKUP Here’s how the 16 largest Kansas City-area hospitals rank according to net income in fiscal year 2010, the most recent year for which numbers are available. The University of Kansas Hospital $67.1M Children’s Mercy Hospitals and Clinics $43.9M Olathe Medical Center $38.1M North Kansas City Hospital $38.0M Shawnee Mission Medical Center $26.7M Saint Luke’s Hospital of Kansas City $25.1M St. Joseph Medical Center $12.8M Saint Luke’s East Hospital $10.2M Liberty Hospital $9.0M Truman Medical Centers $5.1M St. Mary’s Medical Center $3.0M Saint Luke’s South Hospital $686,333 Saint Luke’s Northland Hospital -$3.4M Saint John Hospital -$3.7M Cushing Memorial Hospital -$5.4M Providence Medical Center -$16.8M Source: Internal Revenue Service, North Kansas City, Cass County, KU documents.

BRAD HARBOLD | KCBJ

it was a lot of hard work that caused us to turn a corner,” said Steven Cleary, CFO of parent company Carondelet Health. Cleary said the hospitals left some open positions unfilled, cut the use of outside labor and renegotiated some insurance contracts to increase rates. As a nonprofit, he said, the

health system will reinvest the gains in equipment, infrastructure improvements and employee training. “It is becoming more and more expensive to keep pace with today’s developments,” he said. Providence Medical Center in Kansas City, Kan., had a partic-

ularly challenging 2010. It recorded a $16.8 million deficit for the year, compared with a $5.2 million loss in 2009. Hospital administrators said admissions fell almost 6 percent in 2010 to 8,173. They blamed a combination of patients going to hospitals in other communities and physician practices being bought or aligning with competing hospitals. “We think part of that is not being aggressive enough about telling our story,” CEO Randall Nyp said. “We have a very good clinical program here, and in orthopedics and oncology, and sometimes it’s not as well known as it should be.” Among the hospital’s strategies is reducing emergency room wait times and working out deals to align more physician practices with the hospital. The moves may be bearing fruit. Officials said the decline in patient volume appeared to level out last year. For all hospitals, however, the pace of growth in uncompensated care has not slowed. Kansas City-area hospitals provided almost $185 million in charity care in 2010 and wrote off an additional $104.5 million in bad debt, according to a report the Missouri Hospital Association released last month. This combined uncompensated care increased nearly 15 percent from 2008. A report from the American Hospital Association put the nationwide total for uncompensated care at $39.3 billion in 2010. The MHA report listed Truman Medical Centers as pro-

viding the most uncompensated care in 2010 among local hospitals. Its total of $105 million compares with $82 million in 2008. Truman received $38 million in subsidies from Kansas City and Jackson County for its Hospital Hill and Lakewood facilities in 2010. But Gerard Grimaldi, vice president of health policy at Truman, said the burden of providing free and reduced-cost care is heavy. “The city and county revenue for Truman Medical Centers has basically been flat during that period (2008-2010), while the number of city and county residents who have relied on Truman Medical Centers without insurance increased,” he said, adding that uncompensated care hit $120 million in 2011. KU Hospital provided $36.4 million in uncompensated care in 2010, according to the MHA report. Combined with donations to area clinics and other charities, as well as its work with KU Medical Center in educating medical students, the hospital claimed a total community benefit of $96.9 million. The six for-profit area hospitals owned by HCA Midwest Health System, a division of HCA Inc., provided $10.5 million in care to the poor in 2010, up 25 percent from 2008, according to the MHA data. But the HCA Midwest hospitals also paid $66.7 million in taxes in 2010, system spokeswoman Susan Kaufmann said. “That’s a lot of money into the community and the state,” she said. davidtwiddy@bizjournals.com | 816-777-2204 | Twitter: @dtwiddy71

DELUXE: Non-checks revenue rises FROM PAGE 3

help for us. ... The time I would have spent trying to learn to do this myself and the end result wouldn’t be worth what they are able to provide at the price they charge.” Helbig said Deluxe also offers graphic design and printing, which is great because he doesn’t have the resources to hire a graphic designer in-house. He also said that for a business starting out, website design and hosting services at Deluxe are a huge resource. “So if you’re a new business, they can basically set you up with a brand and do all that sort of stuff for you,” Helbig said. “They are a full-service marketing company now that can do a lot of great things for small businesses.” McRoberts said the goal now is to take those first few success stories and bring them to Deluxe’s 4 million small business customers. As the business grows, he expects to hire an additional 20 to 30 people in the Kansas City area during the next few months. “A lot of our growth has been about where we can get the management structure, and in Kansas City we’ve been able to find all the skill sets we need to grow

Deluxe Corp. Description: A check printer that also can provide a wide range of small business services, including Web hosting, marketing and design. Headquarters: Shoreview, Minn. Revenue: $1.4 billion Local employees: 600 Local address: 16505 W. 113th St., Lenexa, KS 66219 Local facilities: A 171,500-square-foot printing and manufacturing plant; a 146,100-square-foot distribution and customer-care center. Telephone: 913-541-7900 Internet: www.deluxe.com our capabilities,” McRoberts said. “If I want to take a customer to impress them and show them the transformation of the company and where we’re going, Kansas City is the place I prefer to do that. It’s a great facility.” Today, one-third of Deluxe’s $1.4 billion in revenue comes from outside the check printing business. That matters because the future of the check printing business looks grim. The number of checks paid by depository institutions dropped from 30.5 billion in 2006 to 24.5 billion in 2009. During that same period, debit card transactions

DAVE KAUP | KCBJ

Denise Sax feeds sheets of printed checks into the binding machines at Deluxe Corp.

increased by 14.8 percent to 37.9 billion. Some nations, such as Sweden and Norway, are completely eliminating the use of paper checks, and England is phasing them out by 2016. Some grocery stores and restaurants in America don’t accept paper checks anymore. “I remember the first time we went out to visit them, and we only had a vision of them as check printers,” said Mark Dobosz, executive director of Washingtonbased SCORE, a nonprofit that provides

business mentoring services. “As they explained all the pieces they’ve assembled in website development, email marketing, online community and a promotional company, it all made sense. They now have a package of offerings for a small business owner that really touches on marketing. They’re not just a check printer anymore, and it’s starting to pay dividends.” jdornbrook@bizjournals.com | 816-777-2215 | Twitter: @Dornz

28 | kansas city business journal January 27-February 2, 2012 kansascitybusinessjournal.com

THE BLUE KC EXCHANGE. ONCE AGAIN PROVING THAT LEADERS LEAD AND THE REST FOLLOW.

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