TIF

In Wichita, more tax increment financing

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…
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In Wichita, here’s what tax decrement means

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…
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King of Freight move a step sideways

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…
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Wichita considers a new stadium

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…
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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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Naftzger Park project details

Naftzger Park project details

The city has finalized a proposal for a development near Naftzger Park. It includes a few new and creative provisions. This week the City of Wichita will consider a development agreement for land and buildings near Naftzger Park in downtown Wichita. [1. City of Wichita Agenda Packet for December 19, 2017, Item IV-6. Available at http://wichitaks.granicus.com/AgendaViewer.php?view_id=2&clip_id=3699.] Community Improvement District The plan includes the formation of a Community Improvement District. In CIDs, merchants charge additional sales tax for the benefit of the property owners, instead of the general public.[1. Weeks, Bob. Community improvement districts in Kansas. Available at https://bobw7.sg-host.com/kansas-government/community-improvement-districts-kansas/.] In this…
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Delano catalyst site

Delano catalyst site

A development near downtown Wichita may receive subsidy through four different avenues. This week the Wichita City Council will consider approval of a development agreement with EPC Real Estate, LLC, for the Delano catalyst site. This is vacant land north of Douglas, between the Advanced Learning Library and the River Vista project. Update: The measure passed four votes to three, with Bluebaugh, Frye, and Longwell in the minority. Wichita Eagle reporting mentions some of the public subsidy the development will receive: $12 million over a period of years, in the form of Tax Increment Financing and Community Improvement District sales…
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In Wichita, new stadium to be considered

In Wichita, new stadium to be considered

The City of Wichita plans subsidized development of a sports facility as an economic driver. 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://bobw7.sg-host.com/kansas-government/star-bonds-kansas/.] [1. Weeks, Bob. Wichita TIF projects: some background. Available at https://bobw7.sg-host.com/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 athletic complex. The TIF project…
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Naftzger Park public hearing to be considered

Naftzger Park public hearing to be considered

The Wichita City Council may set August 15, 2017 as the date for a public hearing on the future of Naftzger Park in downtown Wichita. On Tuesday July 11, 2017, the Wichita City Council will consider setting August 15, 2017 as the date for the public hearing for consideration of the plan for the future of Naftzger Park. The relevant pages of the council agenda may be read here. Much of the document is boilerplate material regarding tax increment financing districts. But there is some additional information. First, the project is expected to cost $3,000,000: "Park improvements are projected to…
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