Port KC approves $1.49B in bonds for Plaza redevelopment

KANSAS CITY, Mo. — KSHB 41 reporter Charlie Keegan covers politics in Kansas, Missouri and at the local level. Share your story idea with Charlie.

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The Port KC Board of Commissioners approved billions in bonds and significant tax breaks for the Country Club Plaza on Monday afternoon.

Bonds not to exceed 1.49 billion will be issued to Gillon Property Group, the developers of the century-old shopping district. Additionally, the developers will receive real and personal property exemption, as well as sales tax exemption.

The real property exemption will continue for 30 years, with payments in lieu of taxes (PILOT) equaling 100% of the existing real property taxes, annual 2% increases, and additional PILOT fees on new construction, per Port KC's Monday agenda.

The tax breaks and bonds will help fund the phased redevelopment, which is expected to take course over 15 years.

Redevelopment spans 19 blocks and will include upgrades such as 824 residential units, 150 hotel keys, and 1.7 million square feet of commercial and retail space. Repairs and improvements to public and private infrastructure are also part of the plan.

Neither the city nor the port authority is on the hook for paying back the bonds if Gillon and its investors fail to do so.

"Gillon Group will be responsible for every penny," said Jon Stephens, Port KC president and CEO. "On top of that, they will have a development agreement with Port that requires them to meet certain obligations of redeveloping this and building new components."

Charlie Keegan/KSHB

The office of Mayor Quinton Lucas says the Plaza has lost nearly half of its appraised value since 2020, with dozens of businesses closing their doors. But the Plaza has long been a priority for the mayor, including months of negotiations with Kansas City Public Schools and other taxing jurisdictions.

“The Plaza is a crown jewel of our region, but so are our children,” Lucas said. “Today’s action finally moves the Country Club Plaza into the 21st Century, ensuring that the Plaza will be positioned to compete for the finest commercial, residential, and convention opportunities in the Midwest. It also ensures our schools and libraries will share in the Plaza’s growth and redevelopment.”

With the PILOT structure, which is set to begin in 2027, the mayor says schools and other taxing jurisdictions won't see a drop in revenue as the Plaza rebuilds.

Fabian Rosales

KCPS Superintendent Dr. Jennifer Collier released a statement Monday about the Port KC vote. Monday was coincidentally the first day of school for KCPS students.

Collier said while the deal is better than what was first presented, it "does not fully meet the district's reasonable requests."

"The harmful financial impact the district would have sustained without my team's intervention should concern our entire community, and serve as both a warning and a call to action," Collier wrote. "In Kansas City, we are increasingly giving out bigger tax breaks that impact school budgets for longer, and are approving them with less transparency and oversight. We cannot increasingly mortgage our kids' futures and ask our residential taxpayers to take on more of a burden in this way. ... Economic development and public schools do not need to be at odds with each other as both are vitally important to the health and wellbeing of our neighborhoods."

MORE | Read Collier's full letter here

Negotiation of a Master Memorandum of Understanding remains ongoing. Port KC commissioners must approve formal bond authorizations for each construction phase at future meetings, with the first phase expected to begin this fall.

In 2024, the Gillon Property Group took ownership of the shopping district. Since then, strides have been made to establish a master development plan and gain ownership of the sidewalks.

Dustin Bullard, Gillon's vice president of partnerships and place, said developers will begin work on underground infrastructure first. He hopes to unveil more concrete plans for the Seville East redevelopment, where Nordstrom was once going to build.

“You’ll continue to see great stores and restaurants opening on the Plaza and us supporting our existing tenants,” Bullard said.

Charlie Keegan/KSHB

Shoppers on the Plaza Monday were optimistic the developers will bring new life to the district.

"If they have great plans, why not? We’ll see how it does. I’ll give them a shot," said Wilson Alljabu, shopper.

Charlie Keegan/KSHB

In June, the Plaza shared the six pillars of its promise, which include affordable housing initiatives, donating to the Intimate Partner Violence Intervention Program, investing in the Missouri Works Apprenticeship Program, facilitating work experiences for the youth, celebrating 816 Day and investing in the Arterie, which connects art museums east of the Plaza.

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