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Kansas City Looks Ahead
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In This Report: Missouri
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Discoveries await
newcomers at every turn in Kansas City. Consider, for example, that this city
astride the Missouri and Kansas rivers has more miles of boulevards than Paris
and more fountains than any other city but Rome. As for a business presence,
internationally known companies such as Sprint, Hallmark Cards, Marion Merrell
Dow, Farmland Foods and H&R Block are headquartered here.
With a population of 1.8 million in a bi-state metropolitan area of 15
counties, Kansas City is the nation’s second-largest rail center. It’s
also a trucking hub. Kansas City International Airport is the number one cargo
airport in the six-state region. At that, it is undergoing an expansion. Three
major interstate highway systems make for easy access. Thanks to the Missouri
River, Kansas City also has access to the Gulf of Mexico. The Kansas City
Board of Trade, established 150 years ago, is now the world’s second-largest
grain exchange. Moreover, with more than 1,500 miles of fiber optics installed
beneath its streets, Kansas City is “wired.”
There is a rich tradition of corporate success in the region. UtiliCorp
United, with $29 billion in sales in 2000, is a noteworthy example. The
company has its headquarters in a newly restored Italianate 19th century
building on West Ninth Street in downtown Kansas City. UtiliCorp United was
formed in 1985 from Missouri utility roots, and has expanded steadily by
acquiring or starting regulated and nonregulated businesses in the U.S. and
several overseas countries.
UtiliCorp United positioned itself not as an integrated system, but instead
developed distinct segments — generation, transmission, retail,
construction, maintenance — that comprise a value chain. The company manages
these various links to increase their value. “What we do,” says Ethan
Hirsh, vice president, corporate communications, “is get part of the equity
back and reinvest it elsewhere.”
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| World headquarters for UtiliCorp is in this restored landmark building in Kansas City |
Today the company employs 8,000 people worldwide. Richard C. Green, Jr. is chairman and CEO, while brother Robert K. Green is the company’s president. One of UtiliCorp United’s premier acquisitions was its Aquila division, which had $26 billion in sales in 2000, as well as $8 billion in assets. Aquila has increased the size of its power generation portfolio while developing a steadily growing family of custom-designed risk-management products. These products might cover the risks of power outages or even weather futures.
In December of 2000 UtiliCorp United announced plans to complete an initial public offering of 20 percent of its Aquila subsidiary. But as 2001 came to a close, UtiliCorp United announced that it planned to make an exchange offer by which it would acquire all of the outstanding publicly held common shares of Aquila, Inc. “We decided,” said Richard C. Green, Jr., “that UtiliCorp shareholders would be better served by embracing the Aquila energy merchant strategy as the company’s core strategy rather than spinning off as a separate entity.” When the exchange is complete, Green said, “Aquila” will be adopted as the corporate name. But there are also plenty of opportunities for small businesses to flourish in the region. The late Ewing Kauffman founded Marion Laboratories Inc. in 1950, operating out of his own home in Kansas City. The Ewing Marion Kauffman Foundation, with assets of more than $2 billion, is now located in Kauffman Legacy Park, which opened in 1999. The Kauffman legacy supports youth development and entrepreneurship programs.
Lifestyle also matters greatly in Kansas City, which counts among its cultural and artistic blessings the Nelson-Atkins Museum of Art, an outstanding assembly of Henry Moore sculptures, and the Kansas City Symphony. A favorite neighborhood for area singles is that surrounding Country Club Plaza, where upscale shopping and fine restaurants compare favorably with the best anywhere. Professional sports fans can root for the Kansas City Chiefs during football season and the Kansas City Royals during baseball season.
With its affordable housing, excellent neighborhoods, and short commutes, Kansas City offers a complete package — one that more and more businesses find to their liking.
This special section was written by Edward J. Walsh and designed by John Browning for ROP, Ltd. Produced by James O. Armstrong, president of James Armstrong & Associates, Inc., jim@jamesarmstrongassoc.com.