Claycomb connection to real estate developer criticized
A Wichita developer makes generous campaign contributions to a city council candidate, raising questions about both parties. (more…)
30
Oct
07
Oct
In Wichita, more tax increment financing
The Wichita city council will consider expanding an existing TIF, or tax increment financing district. Tomorrow the Wichita City Council will consider expanding the boundaries of an existing tax increment financing district in downtown Wichita. [1. City of Wichita City Council Agenda for October 8, 2019. Agenda Item No. V-1, Public Hearings Considering an Expansion of the Union Station Tax Increment Financing District and Considering a Development Agreement for the Union Station Project Area 3 Plan (District I)] According to city documents for this agenda item, Expanding the District would allow the Developer to capture the additional increment generated by…
21
Jul
In Wichita, here’s what tax decrement means
New research explains what you may have wondered: What is tax "decrement" financing? Wichita has a financing mechanism known as the Gilbert-Mosley tax decrement fund. I knew about tax increment financing, but I never really understood how tax decrement financing worked. I had thought that in this context, "decrement" had a sophisticated meaning that I wasn't able to understand because I wasn't smart enough, or I hadn't tried hard enough, or I didn't have the correct documents to read. Now, Chase M. Billingham and Sean Sandefur have published detailed research that explains how the Gilbert-Mosley financing works. Billingham is Assistant…
19
May
King of Freight move a step sideways
A Wichita firm plans to move its offices to what was billed as the city's premier entertainment district. King of Freight, a Wichita freight brokerage firm, is planning to move its operations to the vacant Gander Mountain building in WaterWalk. This requires a modification to the lease of the land. It's important to recognize that King of Freight is not the tenant in the lease. The landlord is the City of Wichita. The tenant is WaterWalk LLC, a Kansas limited liability company, whose president is Jack P. DeBoer. The lease covers only the land, not the building. The city does…
19
Mar
Wichita considers a new stadium
The City of Wichita plans subsidized development of a sports facility as an economic driver. Originally published in July 2017. This week the Wichita City Council will consider a project plan for a redevelopment district near Downtown Wichita. It is largely financed by Tax Increment Financing and STAR bonds. Both divert future incremental tax revenue to pay for various things within the district.[1. Weeks, Bob. STAR bonds in Kansas. Available at https://wichitaliberty.org/kansas-government/star-bonds-kansas/.] [1. Weeks, Bob. Wichita TIF projects: some background. Available at https://wichitaliberty.org/wichita-government/wichita-tif-projects-background/.] City documents promise this: "The City plans to substantially rehabilitate or replace Lawrence-Dumont Stadium into a multi-sport…
10
Feb
Naftzger Park costs up, yet again
The cost of fixing an oversight in the design of Naftzger Park in downtown Wichita is rising, and again we're not to talk about it, even though there are troubling aspects. Last week the Wichita City Council was scheduled to consider an item regarding the rebuild of Wichita City Council. That item was removed from the agenda the day before the meeting. It now appears on the agenda for the February 12 meeting, and with a higher price tag. ("Consider" is not quite the right term, as the item was on the council's consent agenda. That's where items are passed…
02
Feb
Facade improvement program raises issues in Wichita
An incentive program in Wichita should cause us to question why investment in Wichita is not feasible without subsidy. At its February 5, 2019 meeting, the Wichita City Council will consider an item regarding economic development in Delano. The owner of a building there has applied for financial assistance under the city's facade improvement program. The purpose of the facade improvement program, according to city documents, is to provide "low-cost loans and grants" to help improve the appearance of buildings "located in defined areas needing revitalization, including the City’s core area." The matter before the council this week is to…
02
Feb
Naftzger Park cost rising, and we’re not to talk about it
The cost of the Naftzger Park makeover is rising, will be paid for with borrowed funds, and possibly handled without public discussion. The cost of the Naftzger Park project in downtown Wichita is rising, according to an item the Wichita City Council will consider at its Tuesday February 5, 2019 meeting. According to city documents, an additional $85,000 is needed for stormwater retention, a function the former pond provided. This seems like a major oversight in the original project plans. The city has regulations regarding stormwater retention that private sector developers must follow. Didn't any city planners consider these regulations…
23
Nov
WichitaLiberty.TV: Economic development incentives
In this episode of WichitaLiberty.TV: A look at some economic development incentive programs in Wichita and Kansas. Second in a series. Tax increment financing (TIF) is prominent in this episode. View below, or click here to view at YouTube. Episode 219, broadcast November 25, 2018. Shownotes Wichita TIF projects: some background. Tax increment financing disrupts the usual flow of tax dollars, routing funds away from cash-strapped cities, counties, and schools back to the TIF-financed development. TIF creates distortions in the way cities develop, and researchers find that the use of TIF means lower economic growth. Industrial revenue bonds in Kansas:…
07
Oct
From Pachyderm: Economic development incentives
A look at some of the large economic development programs in Wichita and Kansas. Here's video of a presentation I gave at the Wichita Pachyderm Club this week on economic development incentives. The video was produced by Paul Soutar of Graphic Lens. View below, or click here to view at YouTube. Following, articles that address some of the topics I presented: Industrial revenue bonds in Kansas: Industrial Revenue Bonds are a mechanism that Kansas cities and counties use to allow companies to avoid paying property and sales taxes. Wichita TIF projects: some background: Tax increment financing disrupts the usual flow…