Tax increment financing

TIF, a Wichita ‘tool,’ might be on the way out in California

March 13, 2011

Tax increment financing (TIF), a key component for the financing of the revitalization of downtown Wichita, might be on the way out in California.

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Tax increment financing: TIF has a cost

February 2, 2011

Supporters of tax increment financing, or TIF, claim that it has no costs. This is true only if one ignores their secondary effects and economic reality.

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Kansas and Wichita quick takes: Sunday January 16, 2011

January 16, 2011

Today: Wichita swoons over Boston attention; harm of expanding government explained.

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Kansas and Wichita quick takes: Friday December 31, 2010

December 31, 2010

Today: “This Week in Kansas;” tax increment financing; “Lessons for the Young Economist;” the worst Congress; China has seen the future, and it is coal.

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North Dakota TIF video reminiscent of Wichita

December 27, 2010

Tax increment financing (TIF) is the subject of a video presentation that is eerily cognizant of the situation in Wichita.

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Wichita Old Town TIF district illustrates cost and harm of subsidy

December 23, 2010

The closing of the Old Town tax increment financing, or TIF, district in Wichita is good news. But the expressed attitude of city council members towards TIF districts indicates that citizens must be concerned that the council will attempt to use this harmful form of developer and corporate welfare in the future.

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Kansas economic growth policy should embrace dynamism

December 21, 2010

A dynamic market where many new business startups attempt to succeed and thrive while letting old, unproductive firms die is what contributes to productivity and economic growth. But most economic development policies, including those of Kansas and Wichita, do not encourage this dynamism, and in fact, work against it.

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Wichita downtown planning, not trash, is real threat

December 8, 2010

While city takeover of the management of trash service is bad, the real threat to economic freedom in Wichita is downtown planning.

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Wichita Community Improvement District policy to be decided

December 6, 2010

Wichita will decide whether notifying consumers of special high-tax districts is good public policy.

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Sedgwick County Commissioners applauded

October 14, 2010

We were pleased to see the Sedgwick County Commission vote this week to stop the proposed TIF district in the Planeview neighborhood. Commissioners correctly determined that approval of the TIF would have adversely affected other businesses in the area.

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Wichita’s alphabet soup of ‘tax tricks’

October 13, 2010

I want to commend the courage shown by the October 10 Sunday editorial “Get control of incentives.” It takes some intestinal fortitude to speak out against the “tax tricks” (wonderful description) that have been foisted on the city and county taxpayers already burdened by federal, state, and property taxes.

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In Wichita Planeview neighborhood: Yes, we have!

October 6, 2010

Developers of a proposed Save-A-Lot grocery store in Wichita’s Planeview neighborhood have made the case that without two forms of subsidy, the store won’t be profitable and won’t be built. There is a counterexample, however.

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Subsidy for Planeview Save-A-Lot grocery store bad for Wichita

September 30, 2010

I am troubled by what I see the Wichita city government doing to the owners of the Checkers Grocery store located near the Wichita Planeview neighborhood. At the public hearing before the Wichita City Council on September 14th, one of the Checkers owners testified that their grocery business has been serving the people of Planeview for many years. After listening to the owner’s testimony and listening to testimony presented by Planeview customers at the hearing, it appears obvious to me that the Checkers grocery store’s Planeview customer base is a vital part of their business.

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Photos of Wichita Planeview grocery stores

September 29, 2010

Supporters of a proposed Save-A-Lot grocery store in Wichita’s Planeview neighborhood claim that there are no grocery stores nearby. Therefore, the city is willing to grant over $800,000 in special tax treatment to this store. This special tax treatment — let’s call it what it is: corporate welfare is not available to the store’s competitors that already exist in the neighborhood or nearby.

But Wendy Aylworth’s research and John Todd’s photography show that the claims of the store’s supporters are not true: There are grocery stores — nice ones, too — in Planeview.

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Wichita City Council subsidizes pizza and doughnuts for Planeview

September 27, 2010

At the September 14th Wichita City Council meeting the public was treated to tales of the helpless nature of Wichita’s Planeview residents. It sounded as if residents are being held in an open-air prison, victims of society, greedy QuikTrip stores, and price-gouging cab companies, unable to obtain the necessities of life without trekking an entire ONE mile to get groceries! (See City OKs tax at Planeview store, Wichita Eagle, September 15, 2010)

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Economic development planning in Wichita on tap

September 11, 2010

Tuesday’s meeting of the Wichita City Council features four public hearings concerning Community Improvement District. One CID also will have a public hearing on its application for tax increment financing (TIF).

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The ‘tax expenditure’ solution for our national debt

July 20, 2010

While most critics of government spending focus on entitlements, regular appropriations, and earmarks, there is a category of spending that not many pay much attention to. The spending is called “tax expenditures.” In Kansas some have been calling them “tax appropriations.”

It’s a big issue. As economist Martin Feldstein writes in the Wall Street Journal, tax expenditures will increase the federal budget deficit by $1 trillion this year.

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North Dakota TIF video informative, reminiscent of Wichita

May 25, 2010

The North Dakota Policy Council has a video on YouTube that explains the mechanics of tax increment financing (TIF) districts and the public policy problems associated with TIF.

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On Wichita’s Exchange Place TIF, Janet Miller speaks

April 26, 2010

Last week’s meeting of the Wichita City Council featured a message from Council Member Janet Miller that illustrated her firm belief in centralized government planning for the purposes of economic development. It also contained a material mistake in the understanding of the facts of the project.

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Wichita’s Jeff Longwell on TIF districts, tax abatements

April 23, 2010

Is a tax increment financing (TIF) district a tax abatement? Wichita city council member Jeff Longwell, now Wichita’s vice-mayor, doesn’t think so. During this week’s city council meeting, Longwell said this in explaining his support of a TIF district created for the benefit of Real Development: “One of the things that people I think need to understand is that this is not a tax abatement.”

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Tax increment financing is not free money

April 19, 2010

Cato Institute Senior Fellow Randal O’Toole has written extensively on the subject of urban planning, development, and tax increment financing (TIF) districts. The following article contains many points that the Wichita City Council may wish to consider as it considers expansion of a downtown Wichita TIF district at tomorrow’s council meeting.

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Wichita proposed tax increment financing district subject of news

April 18, 2010

Today’s Wichita Eagle carries two news stories regarding the proposed expansion of a downtown Wichita tax increment financing (TIF) district. The front-page story Condo vote key to downtown Wichita growth and the additional story Owners report mixed views of developers provided background on the vote the Wichita City Council may make at Tuesday’s 9:00 am meeting.

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Taxpayer-funded development in Wichita opposed

April 18, 2010

After the formal presentation I personally complemented the Minnesota Guys and thanked them for what they were doing downtown. They assured me that their redevelopment work in our downtown would be completed without government incentives, and I assured them that they would have my support as long as they stayed out of the public treasury.

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Topeka tax increment financing project struggles

April 15, 2010

In Topeka, a residential and retail project funded with $5 million of tax increment financing (TIF) is in trouble.

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Tax increment financing questions topic at Wichita city council meeting

April 15, 2010

On Tuesday the Wichita city council heard a request by Real Development for a $2.5 million increase in tax increment financing on a downtown project. Discussion during the meeting revealed how little is known about the numbers that the city uses in deciding whether to participate in the project. Numbers that don’t make sense, plus the fact that the applicant has not responded to the city’s request for new numbers, indicate that this proposal should be rejected.

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Wichita Exchange Place TIF should be rejected

April 12, 2010

Tomorrow’s meeting of the Wichita city council will feature a public hearing as to whether a tax increment financing district that benefits Real Development should be modified.

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Wichita economic development incentives discussed

April 6, 2010

At today’s meeting of the Wichita city council, economic development incentives were a topic of discussion.

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Wichita targeted economic development should end

April 5, 2010

Is the City of Wichita able to choose which companies are worthy of taxpayer assistance for the purposes of economic development?

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Wichita Warren Theater IRB a TIF district in disguise

April 4, 2010

On Tuesday the Wichita City Council will consider an economic development incentive for a local business. The process the city is using to grant this incentive bypasses the scrutiny that accompanies the formation of TIF districts while providing essentially the same benefit.

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Kansas news digest

March 29, 2010

News from alternative media around Kansas for March 29, 2010.

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Randal O’Toole discusses urban planning in Wichita

February 8, 2010

Last week Cato Institute Senior Fellow Randal O’Toole was in Wichita. He delivered a public lecture Thursday evening to a crowd that braved poor weather to attend.

O’Toole said he spent 15 years studying urban planning. He said he’s learned this: “Urban planners promise us paradise on earth, but first we have to give them the power to create it.”

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More questions surround WaterWalk hotel proposal

January 25, 2010

Yesterday the Wichita Eagle printed a letter from citizen activist John Todd concerning the proposal for City of Wichita subsidy for a hotel in the downtown WaterWalk development. This is the unabridged version of the letter.

In 2002 elected city officials leased a prime 20-acre parcel of city owned downtown land known as the East Bank to the WaterWalk developers for $1 per year for 99 years. The lease contained a subordination clause that allowed the developers to place new first mortgage financing on improvements (buildings) they made to the property, thus leaving the publicly owned land in second position to new first mortgage financing. This land was therefore subject to foreclosure action and loss in the event the developers defaulted.

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Estes Park repeals TIF district

January 20, 2010

A city in Colorado has voted to repeal a TIF district. Wichitans ought to take notice. Randal O’Toole, the author of the post, notes the complexity of the TIF mechanism. This is in line with testimony I’ve delivered to the Wichita City Council, in which I characterized TIF districts as “a confusing arrangement that hides the reality and size of the subsidy given to TIF developers.” The benefit, I said, is that “this confusion serves a useful purpose to this council, because if the people of Wichita knew what was really happening, they’d be outraged.”

O’Toole will be visiting Wichita on Thursday and Friday February 4 and 5 for a series of events, including a public lecture on Thursday evening. Details will follow.

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Carlos Mayans addresses state and local issues

November 11, 2009

Last Friday immediate past Wichita mayor Carlos Mayans addressed members and guests of the Wichita Pachyderm Club.

Speaking of his experience as a member of the Kansas House of Representatives, Mayans said that Kansas state spending must be brought under control. Having served under governors from both parties, he said that Republicans spend as much as Democrats. Some people change after they get elected, he said, acting differently in office from how they campaigned. It’s important to hold these people accountable.

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Wichita planning firm hopefuls make pitch

September 24, 2009

This past Tuesday and Wednesday, the four planning firms that were selected as finalists for the master plan for the revitalization of downtown Wichita made their public presentations.

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Wichita’s redevelopment role model needs scrutiny

September 17, 2009

On the City of Wichita’s cable channel 7, Kansas City’s Power & Light District is presented as a model for the revitalization of downtown Wichita. Wichita Mayor Carl Brewer sees this district as Wichita’s competition.

So yesterday I went to take a look for myself. And I agree with the mayor. It’s a neat place. It’s huge. It would be great if Wichita had something like it.

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Someone in California understands TIF

August 4, 2009

In California, they’re called redevelopment districts. In Kansas, we call them tax increment financing or TIF districts. By either name, they provide a way to channel money to politically favored developers.

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