Kansas City IRS building lease renewed for 20 years

Nothing is certain but death and taxes — and now, the commitment by the Internal Revenue Service to keep its service center in Kansas City for another two decades.

Public Service Administration on September 7 awarded a 20-year lease renewal on behalf of the IRS and the US Treasury Inspector General for Tax Administration (TIGTA) to Pershing Road Development Co. LLC, which owns the IRS’s 27.5 hectares of Kansas City Campus. 333 W. Pershing Road, just south of Union Station.

The 1.14 million-square-meter lease carries a contract value of nearly $697.5 million over its new term, which began on August 26. IRS and TIGTA’s previous lease for the campus expired on November 30, leaving GSA to execute the extension through Aug. 25.

GSA negotiations a lease renewal instead of undergoing a competitive process of evaluating other sites.

Throughout the metro, no other office building or proposal meets the square footage requirements of the IRS and TIGTA, GSA wrote in a written justification for not conducting an open competition. Keeping the agency in place also creates federal savings and avoids disruptions for workers, the justification said.

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