The request was made to the Tax Increment Financing Commission. BMA owners say the tax breaks are necessary because the 38-year-old building would be only 50% occupied by this time next year.
The decisions by Butler and MetLife to move involved tax incentives. Butler decided to relocate to the West Bottoms, near Kemper Arena. City officials agreed to nearly $10 million in tax incentives and also to construct a $20-million parking garage that will be used by Butler employees during the day and for Kemper Arena events at nights and on weekends.
Butler, which manufactures pre-engineering buildings, is constructing a $44-million structure in the West Bottoms. The company was also considering a move across the river to Kansas.
MetLife is moving to the upscale Briarcliff West devlopment north of the river. The company will occupy about half of a new three-story building, which is located within a tax increment financing district.
Upgrading the BMA Tower, a Kansas City landmark, is expected to cost about $30 million and take three years. BMA occupies nine floors in the building and has not announced any tenants as of yet for the other 10 floors.
The value of the building was estimated to be $8.5 million, according to the Jackson County assessor's office. A financial analyst hired by BMA says the building, with tax increment financing to pay for improvements, would yield a return of 11.25%. Without the TIF money, the projected investment return was 9.38%.
BMA is a subisidiary of Assicurazioni Generali Spa, an Italian-based insurer. A hearing has been set with the TIF Commission for May 9.
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