KANSAS CITY, Mo. (KCTV) – Kansas City is moving to take legal control of the former Federal Reserve Bank building, which has sat vacant and crumbling since 2008.
Kansas City Mayor Quinton Lucas introduced the measure during the Thursday, June 11 City Council meeting.
If passed, the City would pursue receivership for the property at 925 Grand Blvd. – a legal process that allows the City to petition a court to appoint a receiver to rehabilitate a vacant, blighted building when its owner has failed to do so.
What’s wrong with the building?
The former Federal Reserve Bank of Kansas City has been vacant since it closed in 2008. According to the ordinance, the site is plagued by:
Crumbling exterior and graffiti-covered interiorBroken glass and refuse throughout the propertyExposed ceilings with dangling materialsAn unsecured elevator shaftOngoing issues with squatting, fires and other chronic nuisance activity
Nearby residents and property owners have raised both aesthetic and safety concerns about the site for years, and the ordinance notes the vacancy has depressed nearby property values and regional commercial activity.
A developer who didn’t deliver
City officials say a private developer acquired the site in 2013 and, in 2016, received City approval for a financial incentive package to support an ambitious $182 million redevelopment.
The redevelopment was supposed to include a 284-room hotel, a 450-space parking garage and a 40,000 square-foot family entertainment center.
Despite spending around $42 million on asbestos removal and interior demolition by April 2021, the City claims the developer moved beyond that preparatory work.
FILE – Federal Reserve Bank of Kansas City(Courtesy of the Kansas City Fire Department)
The City notes that multiple construction completion deadlines have been missed since 2018. The project’s collapse has been compounded by serious legal and financial troubles:
The site has faced foreclosure at least five times since January 2025The developer filed two Chapter 11 bankruptcy cases in late 2025 to stave off foreclosureThe City terminated its incentive package with the developer in March 2025The developer is now facing a lawsuit alleging fraud against a group of international investors who committed $32.5 million to the project through the federal EB-5 Immigrant Investor ProgramCostly restoration ahead
Local developer Zach Molzer said the building’s condition is bad and fixing it won’t come cheap.
“I would guess you’re somewhere in the ballpark of $250 to $400 million,” said Molzer, principal and founder of Molzer Development. “I know it’s a big range, but it’s a lot.”
Molzer said the lobby has potential to be one of the coolest in Kansas City but noted five basements are completely underwater.
Lucas said he wants to save the building, not demolish it.
“I do not want to see it torn down. I think it is a gorgeous building,” Lucas said. “That structure, which I believe is more than 80 or 90 years old, should be preserved.”
What happens next?
If the ordinance moves forward, it would require the City to:
Pursue receivership through Jackson County Circuit Court under Chapter 56 of the Kansas City Code of OrdinancesHold the public engagement gatherings with the surrounding neighborhoods to help shape what the building ultimately becomesReport back to the City Council in writing within 30 days on progress
The ordinance points to a comparable blighted building less than 1 mile away – vacant since 2020 – that was acquired in 2024 and already has housing units available for rent, as proof that large vacant properties in the area can be quickly turned around.
The full city council votes on the ordinance at the end of June. If it passes, the city has 60 days to file in Jackson County Circuit Court and start the receivership process.
The building’s ownership group is based in the Netherlands and did not respond to a request for comment.
What is receivership?
Receivership is a legal tool that allows a city to petition a court to appoint a neutral third party – a “receiver” – to take control of a neglected property, make necessary repairs and return it to productive use.
Receivership is typically used as a last resort when a property owner has repeatedly failed to address dangerous or blighted conditions.
The Richard Bolling federal building is seen at right among other downtown landmarks, Monday, April 14, 2025, in Kansas City, Mo. (AP Photo/Charlie Riedel)(Charlie Riedel | AP)
The ordinance has not yet been voted on by the full City Council.
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