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Creating and Maintaining Kansas City Jobs

According to economist Alex Carrick construction activity creates or maintains jobs in three ways:

  1. Direct employment, tied mainly to the job site
  2. Semi-direct or indirect employment by way of manufacturing building materials and HVAC systems or providing key services in such areas as design, legal, accounting, and real estate services.
  3. Multiplier or ancillary work in other service areas, whereby income from the first two categories is spent on goods and services in other areas of the economy (e.g., restaurants, haircuts, electronic products, other retail, etc.)

Economist Carrick also estimates that $1 billion dollars provides or maintains 20,000 jobs. By extension, $1 million dollars in construction costs provides or maintains 20 jobs.

As a further example of how capital investment provides and maintains jobs, Titan Construction reported that 77,000 work hours were utilized on the Metro Patrol Division construction project, including both Titan supervision and subcontractors, during 14 months of construction. The City’s Human Resources Department set MBE goals at 17 percent and WBE goals at 14 percent for the Metro Patrol Division construction project. Titan Construction met these goals.

The following is an estimate of how many jobs were created or maintained by the five capital projects built with the 2002 Public Safety Sales Tax revenue.

  1. Metro Patrol Division  $17 million building project  provided or maintained 340 jobs
  2. Shoal Creek Division  $10 million building project  provided or maintained 200 jobs
  3. Police Academy  $40.5 million building project  provided or maintained 810 jobs
  4. South Patrol/Special Operations Division $28 million building project provided or maintained 560 jobs
  5. Police Headquarters Phase 1 Renovation  To be determined

The 2010 Public Sales Tax Renewal is also providing and maintaining Kansas City jobs. Jobs will be created or maintained by the four capital projects built with the 2010 Public Safety Sales Tax renewal revenue. Check back as those project workforce metrics become available:

  1. East Patrol Division Station To be determined
  2. Crime Lab To be determined
  3. North Patrol Division  To be determined
  4. Police Headquarters Phase 2 Renovation  To be determined