The area offers solid and cohesive advantages to local businesses, bringing together all the pieces necessary for business success.

Its central location, educated work force and low cost of living and operating make it a recurring favorite for business projects ranging from corporate headquarters to distribution operations to back-office facilities across an array of industries.

In addition, businesses often cite the area’s laid-back lifestyle, which happens to be fringed by a cosmopolitan flair.

These advantages lured American International Group (AIG), which sealed a deal earlier this year to set up a back-office operation in Olathe, Kan., in the southern part of the metro.

Dallas was also competing for the project. In the end, unspecified state incentives and a 50 percent property tax break granted by the city of Olathe helped tip the scales.

The company will set up shop in 60,000 square feet of space in one of several office buildings in the Interstate-35/119th Street Technology Park.

The New York-based insurance and financial services company plans to employ up to 300 people at the facility, which will receive claims and insurance documents, convert them into electronic files and process them for AIG’s computer network.

AIG already has a significant presence in the Kansas City metro, with offices in Overland Park, Kan.

Another Olathe company has been in the news in recent months because of a $60 million headquarters expansion project currently underway.

Garmin Ltd., a designer and manufacturer of global positioning system units, is building a 450,000 square foot office building next to its existing headquarters. Plans call for an eight-story office tower, which will include executive suites and a warehouse.

The expansion project got underway last year, and is scheduled for completion by late next year.

Garmin has considered expanding its operations to other states as it has grown in recent years. The company has gone from 10 associates in 1989 to more than 850 who are currently employed in the Kansas City metro. Ultimately, the company has always kept its business in Olathe.

“Prior to making the decision during 2000 to purchase additional land and remain in Olathe, we did consider alternative locations,” said Kevin Rauckman, chief financial officer for Garmin. “However, because our work force has grown significantly, and the city of Olathe continued to offer property tax incentives for our headquarters expansion, we elected not only to stay, but also expand significantly.”

Garmin recruits from all over but company executives said the local work force has been a tremendous benefit to the company.

“While Garmin has recently recruited many new engineers and other associates from universities in the region, we do rely on the many associates who live in the Kansas City communities,” Rauckman said. “One of Garmin’s goals from the beginning was to create an increasing number of high quality jobs because of the long term growth of our company.”

Headquarters Going Downtown

An effort to boost downtown Kansas City, Mo., improved in December when H&R Block announced its intention to build a $120 million headquarters in downtown. The new facility will enable the tax preparation and financial services company to relocate to a larger office space, while at the same time consolidate operations from offices scattered throughout the metro.

The project is being heralded as a turning point in downtown Kansas City’s path toward revitalization. H&R Block’s 500,000 square foot office building will stand over a sprawling entertainment district planned by Baltimore-based Cordish Co.

The master-planned entertainment project would span a seven-block redevelopment area and calls for the construction of 425,000 square feet of retail space that would include a variety of restaurants and nightclubs.

The entertainment district announcement was made on Dec. 18, the same day H&R Block revealed its plans.

Construction on H&R Block’s headquarters is expected to begin in July, with completion slated for late 2006.

Nearly 1,450 people are expected to work at the office initially, but the building will be able to accommodate as many as 1,800 employees.

From early on in the site selection process, H&R Block maintained it wanted to stay in the Kansas City metro. But the search was still a yearlong, vigorous and highly confidential effort.

“What’s best for our associates is also best for our business,” said Mark A. Ernst, chairman and CEO of H&R Block. “In consolidating from several separate locations to one headquarters, we will increase efficiency, interaction and productivity.”

City leaders hope that H&R Block’s decision — virtually a seal of approval on downtown Kansas City — will be a catalyst behind other businesses following suit.

When one steps back to look at the Kansas City metro as a whole, however, it’s clear that the business picture is filled with similar stories, as evidenced by the steady stream of expansions and relocations.

Thanks to its efficient multi-modal transportation network, high-tech infrastructure, logistical accessibility, affordable operating costs and real estate availability, the Kansas City metro was the choice of two new companies recently.

* Dublin, Ireland-based Oldcastle APG Midwest Inc. is opening an $11 million production facility in Bonner Springs, Kan. The company will make decorative concrete products for sale to home improvement and lawn and garden stores in the Midwest. Initially, 40 people will be employed at the 31,000 square foot facility, with the potential for expansion within two years.

* Pharmaceutical services company AmerisourceBergen selected Kansas City, Mo., for the consolidation of its Midwest headquarters and distribution operations. The $40 million project will result in a new 280,000 square foot development and 180 new jobs.

Rachael Hedgcoth is a freelance writer based in Overland Park, Kan.