Tax abatements

How much will this cost Wichita taxpayers?

How much will this cost Wichita taxpayers?

How much, if anything, do tax abatements cost? Someone asked a question regarding an item on the Wichita City Council agenda today: How much will this cost taxpayers? The item in question is agenda item IV-1: Public Hearing and Request for a Letter of Intent to Issue Industrial Revenue Bonds (WAM Investments #6, LLC). [1. Wichita City Council agenda packet for May 1, 2108.] Attached was an article from the Wichita Business Journal previewing the matter. [1. Daniel McCoy. Wichita City Council to consider $6 million in IRBs for industrial spec building. Wichita Business Journal, April 30, 2018. Available at…
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Sedgwick County’s David Dennis on economic development

Sedgwick County’s David Dennis on economic development

Following the Wichita Mayor, the Chair of the Sedgwick County Commission speaks on economic development. Last week Sedgwick County Commissioner David Dennis penned a column for the Wichita Eagle praising the county's efforts in economic development. [1. David Dennis. Sedgwick County part of drive to strengthen area workforce. Wichita Eagle, March 5, 2018. Available at http://www.kansas.com/opinion/opn-columns-blogs/article203559734.html.] Dennis is also chair of the commission this year. In his column, the commissioner wrote: "Economic development is a key topic for the Board of County Commissioners and for me in particular. Right now we have a lot of momentum to make our community…
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Spirit expands in Wichita

Spirit expands in Wichita

It's good news that Spirit AeroSystems is expanding in Wichita. Let's look at the cost. While it is good news that Spirit AeroSystems is expanding its Wichita operations, it is not without cost to several governmental agencies. Here's a summary of what is publicly available so far. First, a new "entity" will be formed in order to facilitate the construction and ownership of a new building on the Spirit campus. [1. "The CITY, COUNTY and COMPANY would each take action to establish a new legal entity separate and apart from the CITY, COUNTY and COMPANY for development of the PROJECT…
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Sales tax incentives yes, but no relief on grocery sales tax

Sales tax incentives yes, but no relief on grocery sales tax

Is it equitable for business firms to pay no sales tax, while low-income families pay sales tax on groceries? Last week I wondered if the city's agenda packet for economic development incentives proposed for BG Products was complete. [1. Weeks, Bob. Wichita Business Journal grants city council excess power. Available at https://bobw7.sg-host.com/wichita-government/wichita-business-journal-grants-city-council-excess-power/.] Since the city's narrative had no mention of a sales tax exemption, but the accompanying ordinance that was passed authorized a sales tax exemption, I wondered if the analysis performed by the Wichita State University Center for Economic Development and Business Research was correct. Now that I've received…
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Cash incentives in Wichita, again

Cash incentives in Wichita, again

The City of Wichita says it does not want to use cash incentives for economic development. But a proposal contains just that. Update: The council did not approve this project, by a vote of four to three. This week the Wichita City Council will consider a package of incentives for the developer of a large downtown building, the Finney State Office Center. While the city has said that it does not want to use cash incentives, they are proposed for this project.[1. Wichita City Council agenda packet for April 11, 2017.] Elements of the proposal are these: The Wichita Public…
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