Both the Plaza Library Project and Hotel Phillips Redevelopment Project represent significant investments in Kansas City that have yielded substantial long-term tax benefits. Prior to redevelopment, both sites were generating very little tax value for the city. Through the implementation of Tax Increment Financing (TIF), these projects catalyzed significant growth in property values, culminating in a dramatic increase in valuation for both properties, which translates to a significantly larger tax base.
As the TIF for both projects expired just two years ago, the full benefit of this enhanced tax revenue stream will now accrue to the city and its relevant taxing jurisdictions (including public schools, libraries and mental health institutions) for the foreseeable future, showcasing the enduring fiscal impact of these redevelopment initiatives.
Let’s dig deeper into each project to understand their objectives, timelines, financial structures, and impacts.
The Plaza Library Project
The Plaza Library, located at 4801 Main Street on the west side of the Country Club Plaza, is a significant community asset. The redeveloped facility includes designated children and teen services areas, offers free parking, and has several meeting rooms available for use. Additionally, the project incorporated 23,000 square feet of retail space and 290,000 square feet
of office space.
The project was situated within the Brush Creek Corridor TIF Plan Area, which was approved in 1999. This plan designated the area as a conservation area and initially encompassed five
active redevelopment project areas.
The timeline for the Plaza Library Project saw demolition begin in December 2002, and a Certificate of Occupancy was issued in August 2005. The total project budget was $101,475,573, with $16,521,600 identified as costs reimbursable from TIF. The TIF for the Plaza Library Project expired on June 8, 2023.
The impact of the Plaza Library Project on the area’s assessed valuation is notable. The base assessed valuation before the project was $0, while the current assessed valuation is $26,250,000. Similarly, the economic activity taxes (EATs) have seen a substantial increase, from $9,240 “Then” to a current $1,100,000. This demonstrates a significant return in terms of
property value and tax revenue generated following the redevelopment.
As the property’s value and economic activity increased, so did the annual taxes. As a result,
taxing jurisdictions now benefit from these improvements through new tax revenue, which can
be reinvested into enhancing the city and improving the quality of life for its residents.
| Plaza Library Project | Before TIF Project | After TIF Project |
| Property Valuation | $0 | $26,000,000 |
| Economic Activity Taxes (EATS) | $9,240 | $1,100,000 |
Hotel Phillips Redevelopment Project
The Hotel Phillips, a historic 217-room hotel located on 12th Street in downtown Kansas City, Missouri, originally opened in 1931. The site has historical significance, as it was formerly occupied by the Glennon Hotel, where Harry S Truman operated a haberdashery shop before its demolition and the subsequent construction of the Hotel Phillips. The Hotel Phillips holds historical recognition, having been listed on the National Register of Historic Places in 1979 and is currently part of the Curio Collection by Hilton.
Located within the Hotel Phillips TIF Redevelopment Area, this project was approved in 2000 and also designated as a conservation area. The plan area contained three project areas: Project A (Hotel Phillips) and Projects B and C (Lightwell Garage and Offices).
The total project budget was $23,500,000, with $7,290,000 as costs reimbursable from TIF. The project was approved in November 2000 and expired in 2023.
Similar to the Plaza Library Project, Hotel Phillips also resulted in an increase in assessed valuation. The base assessed valuation was $1,665,200, and the current assessed valuation stands at $6,246,900.
Conclusion
The Plaza Library Project and Hotel Phillips Redevelopment Project exemplify how TIF can be utilized to facilitate redevelopment in different contexts. The Plaza Library project demonstrates the potential of TIF to fund significant public infrastructure and community assets, leading to a substantial increase in property value and tax revenue in the Brush Creek Corridor. Hotel Phillips showcases TIF’s role in preserving and modernizing historic structures, contributing to the revitalization of downtown and boosting the hospitality sector, also resulting in a significant rise in assessed valuation.
The expiration of TIF for both projects in 2023 marks a transition where the increased tax revenues generated by these redevelopments will now fully benefit the relevant taxing jurisdictions. These case studies highlight the diverse applications and positive fiscal impacts that well-planned and executed TIF projects can have on a city.