Plaza Redevelopment Gains First TIF Approval in KC
Kansas City’s iconic Country Club Plaza is a step closer to significant redevelopment after its new owners secured preliminary approval for a major tax financing plan. This initial nod from the Tax Increment Financing Commission marks a pivotal moment for the future of the beloved shopping district.
Funding for the Plaza’s Future
A proposal to utilize tax dollars for public infrastructure enhancements on the Country Club Plaza received preliminary approval from Kansas City’s Tax Increment Financing (TIF) Commission this Tuesday. Under this plan, the Plaza is slated to receive $110 million over a period of 30 years.
How the Funds Will Be Used
The approved TIF plan will redirect a portion of sales, hotel, utilities, and earnings taxes towards critical public improvements. These funds are earmarked for essential upgrades to sidewalks, parking garages, sewer systems, and overall streetscapes within the district, aiming to modernize its foundational elements. Additionally, the city has pledged an initial $30 million, with a potential for up to $100 million in total contributions to the project.
The TIF Process and Community Impact
Former Kansas City Councilman Jermaine Reed highlighted the purpose of TIF projects, stating, “You want to be able to have a public benefit so everyone can feel as if this was for public good.” This sentiment underscores the intent behind using public funds for private development that is expected to yield broader community advantages.
Addressing Concerns About Tax Diversion
A common critique of TIF plans is their potential to divert tax revenue from public services typically funded by the city, Jackson County, and the Kansas City Zoo. However, an employee from the Economic Development Corporation, which oversees the TIF Commission, assured that all these entities are projected to receive more in taxes over the 30-year period than they do currently, even with the TIF in place.
Beyond Infrastructure: A Broader Vision
While infrastructure improvements are a key component, the new owners of the Plaza, who acquired the property in 2024, have much larger conceptual plans. These include significant private investment to introduce more multi-family housing, a new hotel, and additional office spaces to the district.
Navigating Design and Height Restrictions
The City Plan Commission is set to review a development guide from the Plaza next month. This guide seeks looser restrictions, specifically requesting permission to construct taller buildings. This aspect has garnered considerable community attention, with many residents expressing a desire to preserve the Plaza’s characteristic shorter building heights. Amelia McIntyre, a concerned citizen, urged the TIF Commission to “strongly consider concerns that have been expressed as to heights.”
Plaza Ownership Responds
In response to the preliminary approval, a spokesperson for Country Club Plaza issued a statement: “Country Club Plaza is grateful the Tax Increment Financing (TIF) Commission voted to approve our proposal. A TIF is a standard and widely used tool that helps address significant infrastructure needs. It would allow us to restore and rehabilitate public infrastructure with the help of the additional value created through the redevelopment, ensuring changes can be made without diminishing the value to taxing jurisdictions. Furthermore, this reflects our commitment to preserving the Plaza’s character while making the necessary upgrades to support its future. We remain dedicated to working collaboratively with city leaders, community stakeholders, and our neighbors as we move forward.”
What’s Next for the Plaza?
The preliminary approval by the TIF Commission is a significant step, but the plan is not yet finalized. The proposal will now advance to the Kansas City, Missouri, City Council for a final vote, which could take place as early as next month. Concurrently, the City Plan Commission will address the proposed changes to building restrictions.
FAQs
- What is a TIF?
A Tax Increment Financing (TIF) plan uses future gains in taxes to subsidize current improvements that are projected to stimulate economic growth within a designated area. - How much funding is approved for the Plaza?
The preliminary approval grants the Plaza $110 million over 30 years for public infrastructure, with the city potentially pledging an additional $30-$100 million. - What kind of improvements are planned?
Funds will go towards upgrading sidewalks, parking garages, sewers, streetscapes, and other essential public infrastructure. - What are the next steps for the proposal?
The plan now requires final approval from the Kansas City, Missouri, City Council, potentially occurring next month. - Are there community concerns?
Yes, residents have expressed concerns, particularly regarding proposed changes to building height restrictions, preferring to maintain the Plaza’s current architectural character.
As Kansas City’s Country Club Plaza embarks on this significant redevelopment journey, staying informed about the City Council’s decision and community dialogues will be key to understanding how this beloved landmark evolves.
KC Plaza Redevelopment Gets TIF Approval
