A new and improved clock tower plaza may be in store for the Shops of Prairie Village if the city moves ahead with public incentives for the much-watched redevelopment of the old Macy’s building at the retail complex on Mission Road.
During a committee meeting Monday, the Prairie Village City Council unanimously agreed to consider the issuance of industrial revenue bonds for the Macy’s redevelopment, 7070 Mission Rd.
As part of that more than $26 million redevelopment project, developer GRI Prairie Village LLC — managed by the Shops’ Maryland-based owner First Washington Realty — is asking for up to roughly $2.3 million worth of development costs to be exempt from state and local sales taxes.
First Washington said if those bonds and the accompanying sales tax exemption are approved, then it will be able to afford significant improvements to the Shops’ existing clock tower plaza area just north of the Macy’s building.
The Prairie Village Planning Commission has already approved First Washington’s plans to redevelop the former Macy’s building and move the Shops’ existing Hen House grocery store to the new-look Macy’s building’s first floor. In turn, the current Hen House space at the Shops would be gutted and rehabbed to make way for new businesses.
The city council anticipates considering a resolution to approve the intent to issue industrial revenue bonds for the project at a future meeting.
How do industrial revenue bonds work?
- Industrial revenue bonds in Kansas are a form of municipal bonds frequently issued by cities or local governments that are used to help finance developments by private entities, according to the Kansas Department of Commerce.
- First Washington, through its subsidiary GRI Prairie Village, is asking for sales tax exemptions as part of the issuance of the bonds that would be used for the redevelopment of the Macy’s and and current Hen House space.
- Kevin Wempe, the city’s bond counsel with Gilmore and Bell, told the city council on Monday that with industrial revenue bonds, there are no funds going directly from the city to the developer to complete a project.
- Wempe said the city also has no liability to repay the industrial revenue bonds should the project fall through.
- First Washington estimates that a sales tax exemption on $2.3 million worth of expenses will cost the city a maximum of about $230,000 from local sales tax revenues.

Developer envisions upgrades to clock tower area
- Andrea Hidalgo, senior director of development for First Washington, told the city council on Monday that while the approved plan is focused on the Macy’s redevelopment, First Washington wants to turn the Shops’ existing clock tower area into “more of a town square.”
- If the industrial revenue bonds are approved, then First Washington plans to transform the courtyard at the Shops to keep an open-air feel, complete with a patio and grassy areas.
- Hidalgo said that within 13 months of the project’s completion, First Washington expects the city to take in $215,000 of sales tax revenue from the new Hen House in the former Mayc’s building, as well as whatever businesses replace Hen House at the grocery store’s existing Shops space.
- “First Washington has made major investments in Prairie Village over the last 10 years, we’re ready to invest $30 million more,” Hidalgo said, adding that the $30 million figure includes soft costs for the redevelopment project. Soft costs are generally unrelated to physical construction of a project, and can include things like furniture and fixtures.
Balls Foods plans added amenities to new Hen House
- Mike Beal, the chief financial officer with Hen House owner Balls Foods, said the new store that is being built as part of the Macy’s redevelopment will allow for a more offerings and a more efficient experience.
- Beal said other new amenities include a fresh sushi area, a floral department and a large indoor-outdoor customer cafe.
- There are also plans to bring energy-efficient refrigerant technology to the new Hen House, which Beal said he believes will be only the second grocery store in the U.S. with such technology. (Grocery stores in Europe already use this technology, he added.)
- Beal said the new Hen House will also likely qualify for Leadership in Energy and Environmental Design silver or gold certifications — nationally recognized standards for green buildings — but there are no plans to actually certify the store.

Council OKs moving the request forward
Councilmember Cole Robinson said without this kind of improvement project, there will eventually come a time when the owner may need to consider replacing the beloved shopping center.
Robinson said he supports the public incentive request because the city “puts in one ninth of the incentive” and the developer gets nine times the benefit.
Still, some concerns remained for some councilmembers.
Councilmember Greg Shelton said without accountability and reporting measures for sustainability aspects of the project “it’ll be difficult for me to support this for my constituents.” (Shelton is the husband of Post Publisher Jay Senter’s sister.)
Councilmember Inga Selders said she wants to take the proposed public incentives to her constituents, but she thinks they will likely support the incentive request.
Selders did mention that there is an existing community improvement district that covers the Shops, which levies an additional sales tax on purchases within the Shops. That community improvement district sunsets in 2032.
Selders said if First Washington gets the sale tax exemptions for the Macy’s redevelopment project, then it should not ask for a renewal of the community improvement district tax.
“It would be really nice if we could get some kind of guarantee that you all would not be coming back asking for a renewal of that (community improvement district) if we did move forward with this bond,” Selders said.
Next steps:
- The city council is expected to consider a resolution of intent to issue industrial revenue bonds at a future meeting.
- The city council meets on the first and third Monday of each month at 6 p.m. at City Hall, 7700 Mission Rd.
Go deeper: Watch the city council’s entire discussion online here, starting at 1:39:12.