The $520 Million Deal
A complete breakdown of the Country Club Plaza tax incentive package
The "Double Dip" Structure
Port KC PILOT
$309 Million
30-39 year property tax exemption
- • 100% property tax exemption
Developer owns property tax-free for 30 years - • PILOT payments (in lieu of taxes)
Frozen at ~$4M/year for first 3 years - • 1.5% biennial increase
Far below 3% inflation = eroding value - • 19 phases = rolling 45-year timeline
Last phase ends in 2065, not 2055
TIF EATS Diversion
$211 Million
23-year sales and earnings tax capture
- • Economic Activity Taxes (EATS)
Sales tax and earnings tax redirected to developer - • $110M infrastructure costs
Public pays for streets, utilities, parking - • Affordable housing waiver
Developer pays fee instead of building units - • "But for" test questionable
Plaza is NOT blighted—it's prime real estate
Combined Total
$520 Million
Over 30+ years from Kansas City taxpayers
$520 Million Subsidy Breakdown
Port KC + TIF combined over 30+ years
Rolling 30-Year Abatement Timeline
Each phase starts its own 30-year clock — the last ends in 2065
The Inflation Trap
PILOT Increase
1.5%
Every 2 years (0.75% annual)
Actual Inflation
3%+
Per year (historical average)
Annual Loss
2.25%
Purchasing power erosion
By Year 30: KCPS receives only 51% of the inflation-adjusted value.
The other 49% effectively transfers to the developer.
The Inflation Trap
PILOT payments vs. inflation-adjusted value over 30 years
By Year 30: Schools receive 51% of real value
The Developer's Sweet Deal
2016 Sale Price
$660M
Taubman/Macerich JV purchase
2024 Purchase Price
$175.6M
Gillon Property Group (Dallas)
75% Discount
The developer acquired Country Club Plaza at a massive discount.
Why do they need $520 million more in subsidies?
This Deal Doesn't Add Up
A profitable developer doesn't need the largest tax subsidy in Kansas City history.