The Port Authority of Kansas City voted Monday to authorize up to $1.49 billion in bonds and significant tax breaks to help the owners of the Country Club Plaza revitalize the historic district.
Gillon Property Group’s redevelopment proposal calls for taller buildings, and would add commercial and retail space, apartments, offices, and hotels that would be developed over the next 15 years.
During the Board of Commissioners meeting Monday, Port KC Director of Development Chase Johnson said the investment was necessary.
“The plan is to come in and stabilize and, obviously, enhance the Country Club Plaza,” Johnson said. “You're stabilizing the asset, stabilizing the tax value, increasing over time, and really setting up the Country Club Plaza for success for the next 30 years.”
Since 2020, the Plaza has lost 50% of its appraised value, and aging buildings and failing public infrastructure has led to significant vacancies. The shopping district has lost major tenants, including the private insurance broker Lockton, which moved its headquarters to Leawood, Kansas.
If the Dallas-based developer's plans are ultimately approved, Gillon could add about 150 hotel rooms, 824 new housing units, and 1.7 million square feet of commercial and retail space.
To enable that growth, Kansas City Council updated the city’s height restrictions in the Plaza in May.
Approval of the 30-year property tax exemption on Monday launches the process of negotiations over the memorandum of understanding between Port KC and Gillon Property Group, which purchased the Plaza in 2024 for $175.6 million.
The 30-year property tax exemption would gradually decline over time, while Gillon’s property tax payments would increase each year.
The deal could also include payments from the developer to local taxing jurisdictions including schools districts and libraries.
‘Not just a historic shopping center’
The incentive package first came before the Port KC board in November, and it faced opposition from Kansas City Public Schools and others over concerns about the property tax revenue that would be diverted from schools and libraries.
Kansas City Public Schools Superintendent Dr. Jennifer Collier argued at the time that tax exemptions without appropriate financial contributions to the school district over the life of the project would place a heavy burden on schools.
After the approval Monday, Collier acknowledged in a statement that the deal before Port KC this time was better than what was first presented for review in November, but she said it does not fully meet the district’s requests.
“While I join with many others in looking forward to improvements on the Plaza, I also urge us to never forget that while it is important to invest in our landmarks, it should never be at the expense of investing in our schools,” Collier said in the statement.
Port KC President and CEO Jon Stephens acknowledged Collier’s concerns Monday, but said the investments needed to be made if Kansas City was going to stabilize the Plaza.
“This is not just a historic shopping center, it is an entire neighborhood,” he said, “and if that entire neighborhood continues to struggle, we're sacrificing a lot of community.”
Port KC commissioners must approve formal bond authorizations for each of the project's construction phases at future meetings. The first phase is expected to begin this fall.
