New $210M incentive plan to fix Country Club Plaza’s infrastructure moves forward

Another piece of the puzzle to turn the vision for a $1.5 billion redevelopment of the Plaza into reality is moving to the City Council.

The Economic Development Corporation of Kansas City’s TIF Commission forwarded a plan that would redirect some tax revenue from the district to help support the costs of infrastructure improvements in the Country Club Plaza.

Gillon Property Group, the Dallas-based firm that owns the Plaza, has made a splash this year with its plans to revitalize the century-old district that aim to attract new businesses and residents, redo streetscapes to be more pedestrian-friendly and remake the area with taller buildings.

The owners have already found several new future tenants to fill vacant storefronts and have invested in security, lighting and other improvements since taking over last year.

But crucial to the redevelopment are infrastructure costs, including less-sexy elements like water, stormwater and sewer systems that are in need of improvements alongside work on sidewalks, parking, lighting, outdoor gathering space and the like. Such costs are not cheap.

The plan that the commission forwarded at a special meeting on Tuesday includes redirecting $110 million of economic activity tax revenue that comes from various sources toward the developer’s infrastructure costs, such as garages and streetscape projects. The plan also contemplates an additional $100 million in funding for work on public city infrastructure, including stormwater capacity and sewer separation.

The City Council will have final approval on the TIF plan at a later date.

The Plaza developers are also expected to seek property tax breaks from the Port Authority of Kansas City, another agency that provides financial support for big projects in the city. The date of a public hearing for those incentives are to be announced.

Even with incentives, which would eventually expire, the Plaza would still make payments to taxing jurisdictions, and the redevelopment is expected to raise the district’s property values and boost economic activity, which would mean higher tax revenues over the long run.

The Plaza’s redevelopment is expected to include 645,000 square feet of new office space, 750 new residential units and 278 new hotel rooms, alongside the infrastructure improvements.

The city’s planning commission is expected to consider a master plan covering the Plaza that would serve as a guide for the district’s future redevelopment. The project will take years to carry out, and new buildings would be subject to further city approvals.