City Council approves termination of Oak Park Mall sales tax effective July 1

Overland Park City Council has taken a significant step towards economic development by approving the termination of the Oak Park Mall Transportation Development District (TDD) sales tax. During the meeting on March 24, 2025, the council passed ordinance number TDD3483, which will discontinue the half-cent sales tax effective July 1, 2025. This decision comes as the city prepares to fully redeem the revenue bonds associated with the TDD, which were originally issued in 2010 and are set to be paid off early on April 1, 2025.

The termination of the TDD sales tax is expected to benefit shoppers at the mall, as they will no longer incur this additional tax on their purchases. Council members discussed the implications of this early payoff, noting that while the sales performance at Oak Park Mall has met expectations, the structure of the bonds allowed for accelerated repayment. This approach not only saves on interest costs but also eliminates the sales tax sooner than anticipated.

City officials highlighted the role of CBL Properties, the mall's owner, in making substantial investments in transportation and other improvements, which have contributed to the mall's ongoing viability as a key sales tax generator in the city. The council acknowledged that the mall continues to serve as an important community gathering space, even amid challenges facing retail environments.

As the city moves forward, any excess revenue collected from the TDD will be retained until the council decides on its future use, ensuring that the funds can be allocated to other governmental purposes as deemed appropriate. This decision marks a proactive approach to economic development and reflects the city's commitment to enhancing the shopping experience for its residents.