The Kansas City Council is being challenged to decide if the opportunity to convert an old skyscraper into Missouri's tallest apartment tower is worth changing tax incentive policy.

That's the price, according to the Tax Increment Financing Commission, if the city wants the 35-story Fidelity Bank & Trust Building at 911 Walnut St. to be renovated into 188 luxury apartments.

The commission endorsed a redevelopment plan Wednesday that would allow the developers to divert all the money they would pay in property taxes over the next 25 years to subsidize the $53 million project.

'The developer is making a huge commitment to this project and believes strongly in the project, as long as it gets the public assistance needed,' said Roxsen Koch, the attorney for the 909 Walnut Redevelopment Corp.

The TIF Commision recommendation is at odds with current council policy, which waives the Chapter 353 policy of a 100 percent tax abatement for 10 years and 50 percent abatement for 15 years only for low-income housing.

It also differs from a compromise suggested by the City Plan Commision last month that recommendeda 15-year 100 percent tax abatement and a 10-year 50 percent abatement.

The proposal will be taken up by the council either later this month or in early March.

'We're confident the council will se it's time to change the policy or make an exemption for this project,' Koch said.

She said the Dallas comapnies making up 909 Walnut - Simbol Commercial and Housing Horizons LLC, a subsidiary of Kimberly-Clark Corp. - are planning to invest $18.6 million in the project.

In addition to the renovation of the 1931 bank building, the development calls fro the construction of an eight-story garage and the redevelopment of the old Title Building at 927 Walnut.

Koch said the developers would not be subtracting any fees from the project, a common practice in which investors assure themselves of a profit before a project is built.

The developers also are confident they will be able to achieve rents of $1.25 per square foot. The current market standard averages $1 per square foot.

Andi Udris, president of the Economic Development Corp., said that if 909 Walnut is successful in elevating downtown rents, it will make private investment more attractive and reduce the need for tax susidies.

'Our goal is to bring a prominent, visible project on board that will be a market leader,' he said.

Peter Yelorda, chairman of the TIF Commissopn, said the project represents a vote of confidence in downtown.

'It's predicated on things getting better in Kansas City, not staying the same or getting worse,' he said.

In addition to a Chapter 353 tax abatement, the developer is asking for tax increment financing assistance, and federal and state historic tax credits.

The Economic Development Corp. would use the TIF revenues to build a 400-space garage for the project.

It could eventually be owned by the Greater Downtown Development Authority, Udris said.

Altogether, the project would have $15.5 million in potential tax revenues to the city diverted back into the development to subsidize it.

Because of the costs involved in renovatin ga high-rise building, the Economic Development Corp. staff and developers think the project won't work financially with anything less than a full 25-year abatement.

'This project needs a 100% tax abatement,' Koch told the TIf Commission.