Correction: This story has been updated to note that VanTrust has until the end of 2026 to provide evidence to the city that Lockton or its affiliate has signed a lease.
Leawood’s largest proposed development and its first tax increment financing deal was embraced wholeheartedly by the Leawood City Council on Monday night, as councilmembers voted to support the Hallbrook North development just south of State Line Road and Interstate 435.
The 34-acre tract, which borders the Leawoof Dog Park on its western side, is one of the last undeveloped areas of the city.
The city council voted unanimously in favor of a development agreement, tax increment project plan, special sales taxes and hotel guest taxes in the project area, and sales tax exemptions on certain construction equipment and expenses.
The total incentive package comes to about $152 million.
What the incentive package includes
Councilmembers who said they might have had reservations at first were swayed by the fact that the land has been empty for decades and that insurance brokerage firm Lockton is a possible tenant.
Councilmember Lisa Harrison said tax incentives “used to be something that I didn’t have a good taste in my mouth about.” But that changed for this project because Leawood has been growing around the property for more than 50 years, she said.
“Nobody else has presented a project to us,” she said. “This is going to bring hundreds of millions of dollars, eventually, to Leawood.” She said the city currently gets less than $2,000 a year in property taxes from the land.
The incentives package approved by the council includes:
- Up to $108.7 million from tax increment financing.
- Up to $9.9 million from a 1.5% Community Improvement District sales tax within the project area. (This means an extra 1.5% tax will be levied on purchases within the district’s area. State law caps such CID taxes at 2%.)
- Up to $18.8 million from the Target Guest Tax on hotel stays
- Sales tax exemptions of $14.6 million for designated construction equipment and expenses.
The project’s estimated total cost is $765.7 million.
An online FAQ about the Hallbrook North project says the city typically caps CID taxes in older areas of the city at 1% but that this project along State Line is “large and unique enough to warrant an exception.”
Incentives contingent on Lockton signing lease at Hallbrook North
Construction on the first phase, featuring a 444,000-square-foot office and parking, would begin in the spring of 2027 and is estimated to be completed by the end of 2030.
The second phase envisions a hotel with 145 rooms and event space, two apartment buildings with a total of 400 units combined, office and commercial space of 155 square feet, restaurants and a childcare facility.
Councilmembers were also excited about the possibility of Lockton relocating to Leawood. The firm now resides on the Country Club Plaza in Kansas City, Missouri, but Lockton officials have said the business is outgrowing that space.
In fact, the city’s incentives depend on Lockton or a Lockton affiliate being the anchor tenant of the new development. If the developer, VanTrust, does not provide evidence by the end of 2026 that Lockton has signed a lease there, the city can withdraw its incentives agreement, according to city documents.
But Kansas City, Missouri, Mayor Quinton Lucas on Wednesday suggested his city would fight to keep Lockton at its longtime home on the Plaza.
The owners of the Plaza, Gillion Property Group, are undertaking a $1.4 billion renovation of the iconic retail complex that, most notably, includes concepts for 200-foot-tall apartment buildings.
Lucas called Lockton “a vital part of Kansas City’s corporate fabric” and “an anchor on the Country Club Plaza.”
“As the Plaza’s redevelopment continues to move forward with successful planning commission approval today [Wednesday], Kansas City and the State of Missouri remain engaged with a competitive retention package befitting a business leader like Lockton and its associates and clients who visit Kansas City from across the globe.”
He continued: “Whether other offers arise from across the street or from across the country, Kansas City is excited about the Plaza’s future and will ensure local and national businesses know they can grow with the future of our historic core and our city.”
Two public commenters raise concerns
Two people spoke Monday during a public hearing before the city council’s votes, both in opposition to the project.
Lacey Bowen noted that Leawood City Park is included in the project area. She questioned whether the city included it solely because its floodplain allows the city to use “blight” as a reason for establishing the tax increment financing district.
She also said the park is in the project yet is not being redeveloped, which she characterized as “dishonest.”
“Publicly owned parkland that is intentionally preserved for stormwater management cannot be treated as redevelopment deficiency,” she said. “It is a distortion designed to justify a public subsidy.”
Bowen also expressed concern that the development will exacerbate downstream flooding.
Councilmember Julie Cain responded later by asking attorney Kevin Wempe, the city’s bond counsel, about Bowen’s assertions.
Wempe said about $6 million of the incentive revenues is intended for park improvements, specifically access and trails.
(Overall, 95% of the increased tax revenue inside the Hallbrook North project area will go to reimbursing project costs over 20 years, with the other 5% going to the city for administrative costs and paying for improvements to the park, according to the city’s FAQ.)
City Administrator Diane Stoddard added that the city has a variety of park improvements it could reimburse itself for with TIF money, including pickleball courts, aquatic center and shelter and dog park improvements.
“We have a list, certainly, of improvements that could be made to the park,” and the new revenue stream will help fund them over the 20-year life of the incentive, she said.
Resident Karen Fenaroli also spoke, urging the city council to make safety at the Hallbrook North site a top priority.
She asked them to consider adding a police substation to the area to protect against crime that might follow the increased activity there.
