Platte County Ends Zona Rosa CID Partnership
Platte County is making a significant change regarding Zona Rosa, deciding not to renew the Community Improvement District (CID) agreement that has been in place for two decades. This move, effective June 30, 2024, will alter how the popular northland shopping center operates financially and how local shoppers are taxed.
Understanding the End of the Zona Rosa CID
The Platte County Commission has officially voted not to extend the Community Improvement District (CID) for Zona Rosa. Established in 2004, this CID allowed Zona Rosa to levy an additional 1% sales tax on purchases made within its boundaries. For twenty years, this extra revenue was intended to fund essential maintenance, security, marketing, and future improvements for the expansive retail and lifestyle center.
The county’s decision stems from the belief that the CID has served its original purpose, assisting Zona Rosa in its initial development and establishing it as a key retail destination in the Kansas City metro area. The termination marks a new era for Zona Rosa, requiring its management to adapt to a different financial landscape.
Key Details and Immediate Impact
The Financial Shift for Shoppers and Management
Effective June 30, 2024, the 1% CID sales tax will no longer be applied to purchases at Zona Rosa. For shoppers, this translates directly into a small but noticeable reduction in the overall sales tax rate, bringing it in line with many other retail locations in Platte County that do not have a CID surcharge.
For Zona Rosa, currently owned by Trademark Property Company, the loss of this dedicated revenue stream is significant. The CID funding has been a consistent source for operational costs and strategic investments, enabling the center to maintain its appearance and amenities. Moving forward, Zona Rosa will need to identify alternative funding mechanisms or adjust its operational budget to compensate for this change.
| Retail Location | Approximate Sales Tax Rate (Pre-June 30, 2024) | Approximate Sales Tax Rate (Post-June 30, 2024) |
|---|---|---|
| Zona Rosa (with CID) | 9.85% (includes 1% CID) | 8.85% |
| Most other Platte County retail | ~8.85% | ~8.85% |
Implications for Zona Rosa and Platte County
What This Means for the Shopping Center
The cessation of the CID presents both challenges and opportunities for Zona Rosa. The immediate challenge is replacing the lost revenue, which historically supported various aspects of the center’s operation. This could lead to a re-evaluation of current expenses, a search for new income streams, or potential changes in how future developments are financed. Trademark Property Company will likely be exploring various strategies, including tenant mix adjustments, enhanced marketing, or even private investment to maintain the center’s competitive edge.
In the broader context of Kansas City’s retail landscape, Zona Rosa competes with numerous other shopping districts, some of which also operate with CIDs or other special taxing districts. Without its 1% CID, Zona Rosa’s tax rate will be more competitive on price, potentially attracting more budget-conscious shoppers. However, the onus is now entirely on management to ensure the center remains attractive and well-maintained without the supplementary tax revenue.
Impact on Platte County
For Platte County, the decision reflects a policy stance that CIDs should not be perpetual. While the county itself does not directly lose general revenue from this specific CID’s termination (as the 1% went directly to Zona Rosa), it marks a shift in how such districts are viewed and managed. The county’s move could influence future decisions regarding other taxing districts and sets a precedent for when such financial tools are deemed to have fulfilled their purpose. The county will still benefit from the base sales tax generated at Zona Rosa, which contributes to local services.
What to Watch Next
As the June 30 deadline approaches and passes, several key areas will be worth observing:
- Zona Rosa’s Adaptation Strategy: Look for announcements from Trademark Property Company regarding new initiatives, partnerships, or operational changes aimed at sustaining the center’s appeal and financial health.
- Shopper Response: While a 1% sales tax reduction is modest, it could influence consumer behavior. Will this slight price advantage attract more shoppers from other parts of the metro?
- Competitive Landscape: How will Zona Rosa position itself against other major retail centers like Ward Parkway Center, Oak Park Mall, or Legends Outlets Kansas City, particularly those that may still operate with special taxing districts?
- Future Development: Any long-term plans for expansion or significant renovation will now depend entirely on private funding or new financial models Zona Rosa can secure.
Frequently Asked Questions
- What is a Community Improvement District (CID)?
A CID is a special taxing district created to fund specific improvements or services within a defined area, often via an additional sales tax or property tax. For Zona Rosa, it was a 1% sales tax. - When does the 1% sales tax at Zona Rosa end?
The additional 1% sales tax will no longer be collected on purchases made at Zona Rosa starting June 30, 2024. - Will prices at Zona Rosa stores decrease?
No, the prices of goods themselves are not expected to change. However, your total bill will be slightly lower due to the reduced sales tax. - Why did Platte County decide to end the CID?
Platte County officials determined that the Zona Rosa CID had fulfilled its intended purpose over its 20-year lifespan, helping to establish the shopping center.
As Zona Rosa enters this new chapter, Kansas City locals can anticipate a small saving on sales tax with each visit, while the center’s management will focus on innovative ways to maintain and enhance this beloved northland destination.
Platte County Ends Zona Rosa CID Partnership
