Kansas City, MO, February 6, 2026

A significant industrial development in Kansas City, originally intended to boost local job creation, is being discussed for sale to U.S. Immigration and Customs Enforcement. This proposed conversion of the warehouse into a detention center has raised concerns among community leaders and has sparked debates over public-private partnerships and their implications for local economic growth.

Kansas City, MO

Future of KC Warehouse: Economic Hub or Federal Facility?

A major Kansas City industrial development, initially bolstered by public incentives for job creation, is now at the center of discussions regarding a potential sale to U.S. Immigration and Customs Enforcement.

Kansas City has long championed an environment where entrepreneurial vision and strategic partnerships can cultivate significant economic growth. Local developers, often working hand-in-hand with public entities, embark on projects designed to transform underutilized areas into vibrant hubs for commerce and employment. These collaborations aim to attract investment, create jobs, and enhance the overall prosperity of the community, fostering resilience for Kansas City small business ventures and larger enterprises alike.

The story of a substantial industrial warehouse in south Kansas City exemplifies the ambitious spirit driving much of the region’s development. Conceived with the promise of invigorating the local economy through new jobs and a bolstered tax base, this project initially represented a forward-looking approach to regional expansion. However, recent developments concerning its potential acquisition by a federal agency have introduced new layers to the ongoing conversation about balancing private investment with public expectations and community vision.

Origins of an Industrial Hub in South Kansas City

The project in question, known as Building 7, is a nearly 920,000-square-foot Class A speculative industrial facility. It is strategically located within 49 Crossing, a significant redevelopment area comprising over 200 acres of the former Richards-Gebaur Air Force Base in south Kansas City, situated near Grandview. Platform Ventures, a Kansas City-based commercial real estate investment firm established in 2017 by Terry Anderson and Ryan Anderson, developed the facility. The original intent behind this ambitious undertaking was to establish an industrial park that would serve as a crucial hub for logistics and manufacturing, thereby generating substantial employment opportunities.

Strategic Investment for Local Prosperity

To facilitate this transformative project, the Port Authority of Kansas City, known as Port KC, partnered with Platform Ventures. Port KC provided an instrumental $80 million in privately backed conduit bonds, alongside various tax breaks, over a 20-year period to support the development. The project, announced in 2020, reached completion in 2022. Port KC’s mission includes leveraging such development tools to encourage local economic growth and attract projects that fulfill its core objectives, such as transforming former federal properties into productive industrial centers that drive job creation and strengthen regional logistics infrastructure. These public-private partnerships are often seen as vital for stimulating private investment and fostering an environment conducive to Kansas City MO business expansion.

An Unexpected Shift: The Sale to ICE

The trajectory of this industrial facility took an unforeseen turn when Platform Ventures began plans to sell the vacant warehouse to the federal government for use by U.S. Immigration and Customs Enforcement (ICE). Reports indicate that federal agents from the Department of Homeland Security and ICE toured the warehouse around January 15, 2026, exploring its potential conversion into a detention center capable of housing thousands of detainees, with capacities ranging from 7,500 to 10,000 beds being discussed. Platform Ventures stated that it received an unsolicited offer to purchase the facility in October 2025 and, as a firm managing investment vehicles, has a fiduciary duty to evaluate all sale or lease proposals.

Community and Civic Engagement

This potential sale has sparked considerable discussion within the Kansas City community and among civic leaders. Port KC leadership stated they were “blindsided” by the development, indicating a lack of communication from Platform Ventures regarding the new buyer’s intent. Port KC CEO Jon Stephens expressed concern that the sale to ICE could undermine the original vision for 49 Crossing as a job hub. Kansas City Mayor Quinton Lucas and Jackson County Legislator Manny Abarca IV were among the local officials who voiced outrage regarding the proposed use of the facility. To challenge the conversion, the city council voted 12-1 to explore blocking the sale through zoning regulations, as a detention facility would require a special use permit to operate legally. While Port KC holds title to the property due to the incentive agreement, its ability to prevent a sale to a federal entity is understood to be limited.

Navigating Fiduciary Duties and Public Trust

The situation highlights the complex interplay between a private developer’s fiduciary responsibilities to its investors and the broader community’s expectations tied to public incentives. Platform Ventures’ position emphasizes its obligation to consider all offers for its properties. However, this perspective stands in contrast to the initial public-private partnership’s goals for job creation and industrial development. Discussions around this event underscore the need for clear agreements and continuous communication in projects utilizing public support, ensuring that outcomes align with the vision for long-term Kansas City economic growth and community benefit. It also brings into focus the challenges that can arise when private market forces intersect with publicly funded development goals, particularly for Kansas City entrepreneurs and the local economy.

Kansas City, MO, continues to evolve as a dynamic center for business and innovation. The ongoing dialogue surrounding the Platform Ventures warehouse underscores the importance of transparent and mutually beneficial public-private sector partnerships. As the city navigates these developments, residents and local businesses are encouraged to remain engaged in the conversations shaping the future of Kansas City’s economic landscape. Supporting Kansas City small business initiatives and actively participating in community planning efforts are vital for ensuring that development projects truly serve the collective interests of the region.

Frequently Asked Questions

What is the primary facility discussed in the article?

The primary facility discussed is Building 7, a nearly 920,000-square-foot Class A speculative industrial warehouse located within 49 Crossing, a redevelopment of the former Richards-Gebaur Air Force Base in south Kansas City.

Who developed the warehouse, and what was its original purpose?

Platform Ventures, a Kansas City-based commercial real estate investment firm, developed the warehouse. Its original purpose was to be an industrial park and hub for logistics and manufacturing jobs, aiming to spur long-term economic growth in south Kansas City.

What public incentives did the project receive?

Port KC provided $80 million in privately backed conduit bonds and tax breaks over a 20-year period to support the development.

What is the proposed new use for the warehouse?

Platform Ventures is planning to sell the vacant warehouse to the federal government for use by U.S. Immigration and Customs Enforcement (ICE) as a potential detention center.

How have local leaders and Port KC reacted to the potential sale to ICE?

Port KC leaders were “blindsided” by the sale to ICE, expressing concern that it could undermine their vision for a job hub. Kansas City Mayor Quinton Lucas and Jackson County Legislator Manny Abarca IV voiced outrage, and the city council voted 12-1 to try and block the sale through zoning, as a detention facility would require a special use permit.

Key Features of the Platform Ventures Warehouse Project

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Author: STAFF HERE KANSAS CITY WRITER

The KANSAS CITY STAFF WRITER represents the experienced team at HEREKansasCity.com, your go-to source for actionable local news and information in Kansas City, Jackson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as American Royal World Series of Barbecue, Dia De Los Muertos, and Planet Anime Kansas City. Our coverage extends to key organizations like the Greater Kansas City Chamber of Commerce and United Way of Greater Kansas City, plus leading businesses in healthcare, finance, and entertainment that power the local economy such as Children's Mercy Hospital, Government Employees Health Association, and AMC Entertainment. As part of the broader HERE network, including HEREStLouis.com, we provide comprehensive, credible insights into Missouri's dynamic landscape.