Tax abatements Archives - Page 10 of 13 Voice For Liberty

Feb

Wichita city council signals possible change in economic development incentive policy

At today's meeting of the Wichita City Council, discussion by council members and their vote may signal a change in the city's stance toward economic development incentives. At issue was a request for extension of economic development incentives for a Wichita company. Five years ago the city council approved an economic development package for the company that included a tax abatement. As is the city's policy, the council revisits the issue in five years to see if the company has meet its goal commitments. In the case of this company, one commitment -- the building of a new facility --…

Jan

By Bob Weeks

Arizona case rules on economic development subsidy

In its press release titled Arizona Supreme Court Strikes Down Future Taxpayer Subsidies, the Goldwater Institute reports on a ruling by the Arizona Supreme Court that dealt a blow to government subsidies for the purpose of economic development. This is an important topic in Wichita, as city leaders nearly every week grant some form of subsidy in the name of economic development. Presently the city council is considering subsidy of over $2.5 million to a developer of a downtown hotel. The planning for the revitalization of downtown Wichita, also currently underway, is likely to require massive subsidy, too In the…

Jan

By Bob Weeks

Wichita makes case for tax credits

At yesterday's meeting of the South-central Kansas legislative delegation with government officials, the City of Wichita spent most of its time presenting the case that cuts made to a program of tax credits for historic buildings should be restored. Initially Mayor Carl Brewer asked legislators for continued funding for the affordable airfares effort, for the National Institute for Aviation Research, and the aquifer recharge project. But the primary focus of the city's requests became clear when Jeff Fluhr of the Wichita Downtown Development Corporation introduced Christy Davis, a historical preservation consultant who operates a company that assists property owners and…

Dec

By Bob Weeks

Wichita city council discusses economic development incentives, again

At this week's meeting of the Wichita City Council, underperforming companies that have received economic incentives was at issue. Wichita grants incentives -- usually in the form of an escape from paying property taxes -- to companies. Usually there are conditions attached to the incentives, such as a certain amount of capital investment or employment targets. Recently -- and in the past two or so years -- several companies that received incentives have not met employment goals. Should the city rescind the tax breaks in these cases? Or should there be recognition that there's a tough economy at the moment,…

Dec

By Bob Weeks

Wichita city council discusses economic development incentives

Last week a Wichita company that's expanding made an application for industrial revenue bonds and accompanying property tax abatements. The company's application wasn't timely, and for that reason is not likely to receive the requested help. The discussion surrounding the item provides insight into city council members' ideas about the role of the city in economic development. Industrial revenue bonds, or IRBs, are not a loan from the city, and the city does not make any guarantee that the bonds will be repaid. The primary benefit to the recipient of IRBs is that the property purchased with the bonds will…

Nov

By Bob Weeks

Uncertainty over Broadview’s future doesn’t bother Wichita

Yesterday the Wichita City Council approved plans for riverbank improvements that would benefit the Broadview Hotel in downtown Wichita. The cost is $2,200,000. One of the problems with this action is that the renovation of the hotel is on hold, according to recent reporting. The reason given by the hotel's owners, Drury Southwest Inc., is a problem with tax credits issued by the State of Kansas. These tax credits, which are in effect a free grant of money to the hotel's owner that does not need to be repaid, could potentially be worth 25% of the renovation project's budget of…

Oct

By Bob Weeks

Wichita universal tax exemption could propel growth

Remarks to the Wichita City Council, October 20, 2009. Mr. Mayor, members of the council, I'm not here to speak as much to the specifics of the current case, but to the city's policy of granting property tax exemptions and abatements, whether they are implemented through the economic development exemption program or through industrial revenue bonds. At the same time we're told we must build up our tax base, we tear it down. Nearly every week this council grants tax exemptions or abatements to companies that meet the criteria of the several programs the city uses. These tax breaks are…

Apr

By Bob Weeks

Wichita covered with tax-advantaged districts

Here's a map of improvement and development districts in Wichita and Sedgwick County. Sometimes critics of tax increment financing districts (TIF districts) say things like "If TIF districts are good for development, why not make the entire city a TIF district?" Maybe we're headed that way. Wichita Improvement and Redevelopment Districts, April 2009 Publish at Scribd or explore others: Illustrations & Maps sedgwick county wichita

Feb

By Bob Weeks

In Wichita, let’s have economic development for all

GWEDC crucial to attracting, retaining jobs, says a post by Phillip Brownlee on the Wichita Eagle Editorial Blog. (GWEDC is the Greater Wichita Economic Development Coalition.) There's probably little doubt that offering incentives to companies to move to Wichita results in some that do. And, as we've seen, some Wichita companies are adept at inciting rumors they might move or locate new facilities somewhere else in order to gain some advantage or incentive from local or state (or sometimes both) government. Whether these economic development policies are wise is far from settled. Last year the Kansas Legislative Division of Post…

Dec

By Bob Weeks

Wichita Penalizes Companies Through Taxation

Five years ago, the City of Wichita granted Big Dog Motorcycles industrial revenue bonds (IRB). The benefit of these bonds is that the company escapes paying property tax (and often sales tax) on the property purchased with the proceeds from the bonds. At the December 2, 2008 meeting of the Wichita City Council, the council reviewed the tax abatement to see if the company had lived up to the projections and promises it made as part of its application for the IRBs. Unfortunately for this company, their fortunes have reversed, and while at one time their employment was above what…