Federal Realty Investment Trust, the new owner of Town Center Plaza and Town Center Crossing, asked Leawood City Council to create a special sales‑tax district that would fund a $59.8 million exterior renovation of the two shopping centers. The developers presented the plan during a special work session before the council’s regular Monday meeting.
Developer proposal
Bob Franz, Federal’s vice president, and Geoff Sharpe, vice president of development, described the centers as “visibly aging” after three decades of operation. Their presentation called for a 1 % sales tax, collected for up to 22 years, to cover roughly 60 % of the project cost – about $35.6 million – with the remainder financed directly by Federal Realty.
The proposed improvements focus on streetscaping, planting trees along sidewalks, creating gathering spaces for events, and opening building facades so that storefront signs are clearly visible. Sharpe said the design is “about 30 years out of date” and that a refreshed appearance would encourage shoppers to spend more time and money in the area.
Council concerns
While several councilmembers agreed that the shopping districts, which generate about 30 % of Leawood’s sales‑tax base, need updating, they raised questions about the financing structure.
Councilmember Rachel Rubin asked why a sales‑tax levy is necessary when Federal Realty has a $1.4 billion revolving line of credit. “I’m just concerned about how that looks when we ask our taxpayers to provide a free subsidy. So, what the 1 % sales tax is, is a free subsidy. It’s free money,” Rubin said, adding that taxpayers must be protected.
Councilmember Lisa Harrison recalled the Ranch Mart North project, noting that months of construction and traffic restrictions forced some small businesses to relocate to less desirable spots. “I worry that might happen here,” she warned.
Tax‑district context
Leawood’s first Community Improvement District (CID) was approved for Hallbrook North last year. Town Center Crossing previously operated a transportation‑development‑district sales tax of 1 % from 2009 to 2018. The city also approved a CID in April for Houlihan’s replacement project by Drake Development. By rule, CIDs cannot overlap, so any new district for Town Center would be separate.
Next steps
The council did not vote on the proposal after the presentation. The full council is expected to discuss the final development plan at its October 6 meeting. Federal Realty’s timeline indicates construction could begin in the first quarter of 2027.
Federal Realty has owned the shopping areas near 119th Street and Roe Avenue since July 1. The developers also envision a 6,000‑square‑foot free‑standing store on the north side of Town Center Plaza, though a tenant has not yet been identified.
Leawood residents will have an opportunity to weigh the benefits of a modernized shopping environment against the cost of a new sales‑tax district when the council reconvenes.
Original reporting: Johnson County Post (Overland Park) — read the source article.
