Leawood swings big to woo Plaza ‘anchor,’ major KC employer over the state line

Another border war may be brewing as incentives for a major development in Johnson County hinge on one of Kansas City’s most notable employers coming to the Kansas side.

Earlier this week, the Leawood City Council unanimously approved development plans for a 34-acre mixed-use project just south of State Line Road and Interstate 435. The Hallbrook North project, proposed by VanTrust Real Estate, features a 444,000-square-foot headquarters office, a 145-room hotel and two luxury apartment buildings with supported structured parking.

In addition, the site would be home to a 14,000 square-foot child care facility, 16,000 square feet of restaurant and retail space and 155,000 square feet of additional office and commercial space.

But there’s a catch — Leawood’s agreement to support the $760 million project “is predicated on Lockton, or a Lockton affiliate being the anchor office user for the development,” according to city documents.

The prominent Kansas City-based insurance brokerage has been toying with the idea of relocating its headquarters from the Country Club Plaza in the coming years but has not yet made any official decisions.

Leaving the Plaza would be a significant blow to the famed district undergoing major redevelopment and wouldn’t happen without a fight from Kansas City officials.

“With our lease expiring in 2030, Lockton is evaluating options for our headquarters,” a Lockton spokesperson told The Star in an email. “Any decision will be guided by what best supports our growth, our ability to serve clients and—most importantly—our Associates.”

The proposed mega project in Leawood would be built in phases, with phase one featuring the headquarters, the hotel, one apartment complex, the child care facility, and restaurant and retail — set to begin construction in 2027.

To build the project, VanTrust requested a 20-year tax incentive package that would capture up to $108 million in tax increment financing and about $9.9 million from an added 1.5% sales tax within the project area. Additionally, VanTrust would receive dollars generated from an 8% transient guest tax, totalling about $18 million.

The agreement requires VanTrust to complete a part of the project before the firm receive any incentives, so the city won’t reimburse any costs during construction, Kevin Wempe, the city’s bond counsel, told the City Council.

Before they can get any cash from the incentives, VanTrust developers must present “an executed lease with a Lockton entity” for the headquarters office by the end of next year, “which would proceed any reimbursement for several years,” Wempe told the City Council.

If Lockton doesn’t sign, then Leawood officials “may treat that as a default,” and revoke the development agreement and incentives, according to city documents.

Lockton employs about 2,000 people in the Kansas City metro and has steadily outgrown its space on the Plaza, according to Kansas City Business Journal reporting.

During Monday’s City Council meeting Julie Gibson, Lockton’s chief marketing officer, thanked Leawood staff and VanTrust for the “attention and thoughtfulness.”

“We continue to believe this is a very special site,” said Gibson, who is also a Leawood resident. “I understand this is a generational decision for the city of Leawood, it’s a generational decision for Lockton as well.”

Lockton’s potential move comes at a time when the Plaza is vying for its own makeover after new owners promised to revive the historic neighborhood by bringing in more residents and taller buildings.

While Leawood is showing its hand, Kansas City officials are also actively courting the company to remain in the Plaza beyond 2030, with rumors of a potential new headquarters on the lot where Nordstrom was supposed to go.

“Lockton and its associates have long been a vital part of Kansas City’s corporate fabric, as an anchor on the Country Club Plaza,” Kansas City Mayor Quinton Lucas said in a statement Wednesday.

“As the Plaza’s redevelopment continues to move forward with successful planning commission approval today, 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.”

On Wednesday, the Kansas City Plan Commission voted to recommend master planning documents that set out design and zoning guardrails for future redevelopment by the Plaza’s new owners, Gillon Property Group. Namely, the commission agreed to taller buildings than currently allowed and included protections for the Plaza’s historic architecture.

Gillon’s plan looks to bring hundreds of new residential units and hotel rooms to the Plaza to attract new businesses along with fixing up utility infrastructure that’s in need of repair.

To launch this $1.4 billion endeavor, the developer is seeking $309 million in tax breaks over 30 years. City agencies will decide on proposed incentives later this month.

“The River-Crown-Plaza corridor will continue to be the center of regional growth, business, and vibrancy for the Kansas City region for the next generation,” Lucas said in the statement.

“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.”

The Leawood City Council’s unanimous approval of their incentives includes the city’s first tax increment financing deal and fills one of Leawood’s last empty plots of land.

“This is new terrain for us and the size and magnitude of this project is what is driving us to consider doing it at this time,” Councilmember Mary Larson said. “I think the Lockton headquarters would be a great asset for our community.”

Additionally, it would allow the city to collect more tax revenue from the site — totaling about $12 million, she said.

“Right now, our property taxes we are receiving from this property are negligible — somewhere under $2,000 a year,” Larson said. “This is a great benefit for our community and that’s why I plan to vote in favor of these incentives we’re offering.”

Councilmember Julie Cain agreed, adding not only the size of the project, but the “distinctive nature of the tenant” pushed her to be supportive.

“Lockton is again the caliber we strive for in the city,” she said. “Here we have this stupendous opportunity that will not only help our residents financially but (the) tenant and developer both go hand in hand of the highest caliber — legacy, home-grown, local corporations — and we’re thrilled about this potential.”

©2025 The Kansas City Star. Visit kansascity.com. Distributed by Tribune Content Agency, LLC.