TIF districts

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

Kansas and Wichita quick takes: Wednesday November 3, 2010

November 3, 2010

Today: Elections, Dave Unruh, Jim Skelton, Gwen Welshimer, Republican Party, Wichita Pachyderm Club, Paul Gray, Jeff Longwell, Rhonda Holman, Sue Schlapp, Carl Brewer.

Read the full article →

Kansas and Wichita quick takes: Tuesday November 2, 2010

November 2, 2010

Today: Kansas fourth district, Mike Pompeo, Raj Goyle, Tea Party, Wichita Pachyderm Club, Barack Obama, Americans For Prosperity, Politics, TIF districts

Read the full article →

Kansas and Wichita quick takes: Monday October 18, 2010

October 18, 2010

Today: Mike Pompeo, Politics, Raj Goyle, Wichita Pachyderm Club, TIF districts, Kansas fourth district, Elections, Politics, Education, School choice, Kansas state government, Community Improvement Districts

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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)

Read the full article →

More Wichita Community Improvement Districts proposed

August 2, 2010

Tomorrow’s meeting Wichita City Council will consider starting the process for the approval of three Community Improvement Districts in Wichita.

Read the full article →

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.

Read the full article →

Wichita Exchange Place project passes

April 27, 2010

At today’s meeting of the Wichita City Council, final approval of the city’s involvement in a downtown Wichita development passed.

Read the full article →

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.

Read the full article →

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.”

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

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.

Read the full article →

Will the real robber barons please stand up?

March 30, 2010

At the April 13th meeting of the Wichita City Council a request from downtown developer Real Development will be made for an additional $2.2 million taxpayer subsidy for its condo project Exchange Place, located at Douglas and Market. With two weeks to go before this public hearing there is still time for council members to read The Myth of the Robber Barons by Burton Folsom. Folsom’s easy-to-read 134-page narrative lays out the case for entrepreneurship in America and can be read in one evening. It’s a history lesson worth reading by all.

Read the full article →

Randal O’Toole on Wichita’s WaterWalk and government planning

February 10, 2010

As part of Randal O’Toole’s visit to Wichita, he recorded some remarks in front of a few of Wichita’s monuments to government planning. Paul Soutar of Kansas Watchdog recorded video and assembled the remarks. His reporting is Randal O’Toole on Wichita’s WaterWalk and Government Planning.

Read the full article →

Businesses in Old Town Cinema district fought property taxes

February 9, 2010

As reported in the Wichita Eagle by Brent Wistrom: “Business owners in a special taxing district surrounding the Old Town Warren Theatre have fought to have their property taxes reduced, forcing the city to cover debts incurred when the city bought land, installed utilities and built a park to spur the development.”

I guess no one wants to pay taxes, even when those taxes go to pay off bonds that benefited your property. That’s true even though the city has made a no-interest and low-interest loan to the primary business in this TIF district. As the Eagle story reports: “The move was seen as a way to ensure the theater’s success and give the TIF district a boost.”

Read the full article →

Public forum on WaterWalk hotel proposal

January 20, 2010

On Monday January 25, a group of citizens will hold a public forum concerning the proposal for a hotel in the WaterWalk development in downtown Wichita.

Read the full article →

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.

Read the full article →

Wichita planning puts freedom, prosperity at risk

October 13, 2009

Mr. Mayor, members of the council,

I’m here today to ask this council to put aside consideration of this proposal. My reasons are not particular to this proposal or planning firm, but rather I am concerned that we believe we have the ability to successfully plan at all.

Read the full article →

Welshimer files for re-election to Sedgwick County Commission

October 9, 2009

Today, Sedgwick County Commissioner Gwen Welshimer filed for re-election to her position as a member of the commission. Her statement is below.

Welshimer, a Democrat, is so far the only candidate in that party. There are three Republicans who have either filed or are considering filing.

Read the full article →

Goody Clancy proposal for Downtown Wichita revitalization master plan

September 29, 2009

Last Friday a selection committee selected one company from four finalists to lead the planning effort for the revitalization of downtown Wichita. If some city leaders had their way, citizens of Wichita wouldn’t be able to see this document until after the city council makes a decision to follow — or not — the recommendation of the selection committee. But thanks to city manager Robert Layton’s decision, this document is now available for all to read. (Thanks also go to council member Jim Skelton, for his unsuccessful effort to release the documents.)

Read the full article →

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.

Read the full article →

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.

Read the full article →

Wichita downtown revitalization discussed on Kansas Week

August 16, 2009

Bob Weeks discusses planning for downtown Wichita revitalization and what he learned on his trip to the Platinum Triangle in Anaheim, California. Host Tim Brown and guest Randy Brown also appear. From the KPTS Television show Kansas Week, August 14, 2009.

Read the full article →

Wichita’s getting ready to plan

August 14, 2009

The danger we face is that Wichita’s plan will end up like almost all other urban plans — a top-down effort micromanaged by politicians and bureaucrats, people whose incentives are all wrong. We already have the structure in place, with our mayor promoting the plan for downtown as his signature achievement, and a tax-supported downtown development organization headed by a young and energetic planning professional.

There is a different way to go about redevelopment, a way that respects freedom and property rights, while at the same time promising a better chance of success.

Read the full article →

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.

Read the full article →