Correction: This story has been changed to note the total package of public tax breaks being requested by First Washington is roughly $2.3 million.
Public incentives may be used to help finance a prominent Prairie Village redevelopment.
On Monday, during a committee meeting, the Prairie Village City Council will discuss the potential for issuing up to $23.3 million in industrial revenue bonds to redevelop the Macy’s building at the Shops of Prairie Village.
City documents show that GRI Prairie Village LLC, managed by Maryland-based Shops landlord First Washington Realty, estimates the redevelopment project to cost upwards of $26 million.
First Washington is asking the city that it be exempt from paying sales taxes on up to $2.3 million of those development costs.
The council committee of the whole meeting takes place immediately after the city council meeting. No final actions can be taken during that time.
A look at the project
In October 2024, the Prairie Village Planning Commission approved a renovation plan for the Macy’s building that included a two-story building (the structure is currently three stories), with a Hen House grocery store occupying the first floor.
The project includes four retail spaces planned for the second floor, as well as pedestrian connectivity upgrades and grading work in the parking lot surrounding the building.
City documents show that once the Macy’s building renovations are complete and Hen House moves in, First Washington plans to renovate the grocery store space Hen House currently occupies at the Shops for an estimated $5 million.
That renovation work will include interior demolition of the current Hen House space, storefront changes and utility upgrades, according to city documents.
Project ‘substantially curtailed or eliminated’ without incentives
- In its request for public incentives, First Washington said parts of the project “would be substantially curtailed or eliminated” without a sales tax exemption, according to city documents.
- Some of the parts on the potential chopping block include improvements to the courtyard between the new Hen House and the Shops’ clock tower, as well as Hen House’s plans for an indoor/outdoor glass seating area and fireplace.
- First Washington anticipates the city’s return on investment is upwards of $15 million in annual sales tax revenues from new tenants in the existing Hen House space, within 13 months of completing the project.
- That number climbs to $22 million total when combined with the estimated sales tax revenue from the new Hen House store, according to city documents.
- “By this request, we are asking the City to be a partner with us for a short-payback period in exchange for keeping a valued grocery store tenant at this location in the City and bringing the Center back to prominence,” the developer said in its request for incentives.
How to tune in
- The city council meeting starts at 6 p.m. at city hall, 7700 Mission Road.
- The council committee of the whole starts immediately after the city council meeting.
- The public can also watch the meeting online here.
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