As the debate heats up over building heights, and incentives, that are parts of Gillon Property Group’s plans to reimagine Country Club Plaza, they’ve released a very conceptual rendering showing their intentions when it comes down to new buildings.

As I discussed in Part 1 of this series, Gillon recently won approval for a building height increase on the failed Nordstom site (Jefferson and Nichols). Any future building there may rise up to 275ft. While that drew some controversy itself, opposition was relatively quiet as Gillon was open about a “landmark” building rising there ever since they closed on the Plaza over a year ago.

Whats causing controversy now is the longterm desire to demolish different structures and replace them with new high-rises of varying heights. The structures targeted for potential demolition aren’t of “high significance” like many of the other buildings on the Plaza.

For example, the rendering shows a 10-story building is shown replacing the former Hall’s store (now a parking garage with Apple, Lens Crafters, and Rally House on the first floor) at Nichols and Wyandotte. The parking garage at Pennsylvania and Ward is shown being replaced by a 6/7-story building. While not clear if its a redevelopment or reconstruction project, the former Cinemark movie theater at Jefferson and Nichols is overhauled in the rendering as a 4-story building with a new Spanish influenced tower on Nichols Road.

The only building with some contributing architectural character is the building at 46th Terrace and Mill Creek. Chuy’s used to call this building home, but in the conceptual rendering, a 12-story building is shown replacing it.

Every new building seems to pull inspiration from their much older neighbors to the south. Specifically, the buildings that line Brush Creek or the “Walnuts” Condos at 51st and Wornall. Think red brick, red tile roofs, small towers (like those found throughout the Plaza), and general massing.

The rendering is from the perspective of the top floor of a new building on the previously mentioned failed Nordstrom site.

Per Gillon Property Group, their desire is to construct 750 apartments, 278 hotel rooms, and new office space over the next 15 years. The total cost for the Plaza’s redevelopment: $1.4 Billion.

Incentive Debate Begins

Gillon went before PortKC’s Board of Commissioners today for the introduction of the project and the initial inducement of $1.4 Billion in bonds. The incentive ask was strongly opposed by many, including KCTenants and advocates for the public schools. Others opposed the new building heights stating that they’d “ruin the Plaza’s character”.

In both instances, opposition showed a general lack of knowledge for how complex real estate deals are structured and/or the need to properly reimagine the Plaza for the next century.

Incentives are designed to close the gap between high construction costs and low rents relative to those construction costs. The rents that would be needed to achieve a viable incentive-free project of this scale would far exceed what the top-end of the market could fetch in Kansas City and most other midwestern cities.

Opponents to incentives also fail to mention the benefits of projects of this nature. More employees, visitors and residents all contribute to the local tax base by paying sales and personal property taxes, not to mention the City’s 1% earnings tax. You also have the benefits of fewer empty store fronts. All of these, plus the property improvements, will benefit the City in the short and long terms with additional revenue.

It’s important to note that everything that’s been presented is still conceptual. What we see is Gillon’s desire based on their own research. It’s entirely possible that the Plaza’s owners continue gathering feedback from neighbors to continue refining plans.

What’s Next?

PortKC punted the decision on the bonds back to a future meeting. The City is still reviewing the MPD plans that would allow for taller buildings on multiple parcels in addition to general Plaza improvements (landscaping, streetscape enhancements, etc) and design guidelines for new buildings.

The City of Kansas City will continue to be involved as near-term plans call for road and sidewalk enhancements. Other infrastructure components, including sewer lines, are likely to be replaced as well.

As always, I will keep people up to date on what’s next for the Plaza.