Tax increment financing

Facade improvement program raises issues in Wichita

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…
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Naftzger Park cost rising, and we’re not to talk about it

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…
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WichitaLiberty.TV: Economic development incentives

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:…
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From Pachyderm: Economic development incentives

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…
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More TIF spending in Wichita

More TIF spending in Wichita

The Wichita City Council will consider approval of a redevelopment plan in a tax increment financing (TIF) district. This week the Wichita City Council will hold a public hearing considering approval of more tax increment financing (TIF) spending in downtown Wichita. The spending is for the second phase of redevelopment of the Union Station property on East Douglas. According to city documents, the total cost of this phase is $31,000,000, with TIF paying for $2,954,734. [1. Wichita city council agenda packet for September 11, 2018.] This is a pay-as-you-go form of TIF, which means the city does not borrow funds…
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