Comments on: Uncertainty over Broadview’s future doesn’t bother Wichita

By: geld lenen

geld lenen — Sat, 03 Apr 2010 18:09:02 +0000

Not only tax but also IFT matters in this scenario

By: Wichita makes case for tax credits

Wichita makes case for tax credits — Fri, 08 Jan 2010 14:57:31 +0000

[...] Both Fluhr and Davis presented the case of the Broadview Hotel in downtown Wichita. That project, already receiving various forms of subsidy from the City of Wichita, requires historic tax credits for its financial viability, according to the developers and the city. (Uncertainty over Broadview’s future doesn’t bother Wichita) [...]

By: Anonymous

Anonymous — Fri, 06 Nov 2009 03:03:39 +0000

Your analysis, Anonymous, would be persuasive except for these things:

First, if I knew I was getting a tax credit, I’d immediately adjust my tax payments *right now* to take into account the tax relief. Corporations have to pay income tax all year long, not just at filing time.

Then, the tax credits can be transferred (sold) to someone else. You’d get paid right away then. Sure, you might not get quite as much for them as their face value, but what the heck.

By: Anonymous

Anonymous — Fri, 06 Nov 2009 02:37:25 +0000

Tax credits may technically be a grant of free money, because it is less revenue that the state will collect given the credit. However, it tax credits operate in an entirely different manner than grants, wherein grants offer the capital for development in concert, or simultaneously, as the development. Thus, a developer who receives a grant can draw down on the grant allocation and receive a reimbursement almost immediately after the expenditure is made, whereas a tax credit takes a year to recover, depending on when the expenditure is made within the tax year. It’s the time-value of money principle, and tax credits are not as attractive as grants in economic development projects.

By: Ruben

Ruben — Thu, 05 Nov 2009 21:25:04 +0000

It will be interesting to see Mayor Brewer in Topeka begging the Sedgwick County Legislators to support the preservation tax credit. Brewer is a liberal Democrat and his tax and spend model will not set well with most of our local delegation conservative Republican legislators.

By: Joe Williams

Joe Williams — Thu, 05 Nov 2009 05:30:32 +0000

I’m one that doesn’t believe that historic tax credits and even historic preservation societies or councils do any good at all. I think they hamper a lot of progress as I see no need in keeping any old building around just because it was built a long time ago.

That being said. The River bank improvements between Douglass and 1st Street is actually funded by STAR bonds, for which the city already had the money in the bank from the left over Star Bond funds issued back for WaterWalk and the Keeper of the Plains. The bond money will be paid back by the sales tax and transient tax in that area. Although I dislike it when government borrows any money. *cough cough* Britt Brown renovations vs. IBA *cough cough*

They are doing this in part for that stretch of river bank to comply with ADA.

By: Anonymous

Anonymous — Thu, 05 Nov 2009 04:54:05 +0000

Pat, I’d be interested in learning how the tax credits aren’t the same as a free gift of money.

By: INSIDER

INSIDER — Thu, 05 Nov 2009 01:35:18 +0000

Isn’t amazing that the City can pour $2,000,000 into riverbank
improvements plus much more maintaining them for the next 20 years. But at the same Council meeting has to cut back funding by $2,000,000 for road repair (OH!!! what a coincidence). God help you if you have a street that needs repaired unless of course you live downtown. It’s no wonder we don’t have any money for roads, in the past couple of years they have redone 1st street from Washington to the RR 3 times.

By: BradleyL.

BradleyL. — Wed, 04 Nov 2009 21:02:13 +0000

It looks like the Broadveiws owners have alot at stake here.
Whatever happened to the old fashioned way of renovating?
YOU GO TO THE BANK! And you show your Books, that should be showing your P & L, for your last fiscal year accounting, and you along with some of your saved profits, BORROW the money on your own fiscal merits, for your renovations. AND NOT GO TO THE CITY COUNCEL TO BEG FOR STATE FUNDS, aka, ( KANSAS STATE TAXPAYER MONEY ). Albeit, with that said, I would like to point out a couple of things. a. The Drury Hotel Suites Chain, “in most major U.S. city’s”, and touting (4) four, J.D. Powers Awards, on the mantle, IS a true American success story!. You can read about it on their home page. b. I do recall a similar project that took place about 14-15 years ago that expanded the Century II Convention Center which was built with a whole pot load of Taxpayer Money, designed to be the best Convention Center in Wichita, to bring in more groups, pga, pba, you know what I’m talking about. Don’t you? The Hyatt Regency, of course…since it’s completion, it’s been bought and sold at least 3 times that I remember, and at one point, the buzz was whether it would be closed permanently. Well, it didn’t, and it’s still poking along but with no real huge success, employee turnover is over 40% at any given time, and hardly ever makes 75% occupancy.. “providing the rooms aren’t comped to employees.But yet, we’re still helping this little struggling convention center along. My opinion?
It seems to me, the same scenerio has taken place here. A big Corp. like Drury, like walmart, like target, like Boeing, comes along with a desire to make more profit, they just don’t want to open up their own coffers and pay for, when it’s become so EASY to get taxpayers to pay for it instead, and the first thing they say, “we’re going to bring jobs to Wichita, but We want the TaxPayer to give us x amount or the Deal Is Off!
We’ve been hoodwinked and snookered before, and once again I’m afraid, It’s business as usual in Wichita, KS. U.S.A.

By: Pat

Pat — Wed, 04 Nov 2009 16:32:51 +0000

The above mischaracterizes the nature of tax credits. Tax credits are not a “grant of free money”. That said, I personally don’t feel like the riverbank improvements are or should be dependent upon what happens with the Broadview.