Tag: TIF

In Wichita, more tax increment financing
United States government

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 the increased value of the Ice House building for pay-as-you-go reimbursement of eligible TIF expenses within the TIF district. The...
In Wichita, here’s what tax decrement means
Wichita city government

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 Professor of Sociology at Wichita State University. Their research, which forms a chapter of the book Tax Increment Financing and Economic Development, Se...
King of Freight move a step sideways
Wichita city government

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 not own the building. While the city rents the land to DeBoer, there is undoubtedly a deal between him and King of Freight. Details of that are unknown. When WaterWalk was conceived, the goal was a destination of re...
Wichita considers a new stadium
Wichita city government

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 athl...
From Pachyderm: Economic development incentives
Economics

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 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, a...
More TIF spending in Wichita
Wichita city government

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 as it would in a traditional TIF district. Instead, the eligible portion of the developer's property taxes will be rerouted back to the development as they are paid. The TIF dist...
Naftzger Park project details
Wichita city government

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://wichitaliberty.org/kansas-government/community-improvement-districts-kansas/.] In this CID, t...
Delano catalyst site
Wichita city government

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 tax. (Delano project looks to add 180 apartments, hotel next to new Wichita library) One form of additional subsidy is forgiveness of sales tax on the cons...
In Wichita, new stadium to be considered
Wichita city government

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://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 athletic complex. The TIF project would...
Naftzger Park public hearing to be considered
Wichita city government

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 costs approximately $3,000,000, with $1,500,000 of such costs to be financed from proceeds of the City’s full faith and credit tax increment bonds." Second, we see some evidence of the care -- or l...
WichitaLiberty.TV Sedgwick County Commissioner Richard Ranzau
WichitaLibertyTV

WichitaLiberty.TV Sedgwick County Commissioner Richard Ranzau

In this episode of WichitaLiberty.TV. Sedgwick County Commissioner Richard Ranzau joins Bob Weeks and Karl Peterjohn to discuss current issues in Sedgwick County government. View below, or click here to view at YouTube. Episode 150, broadcast May 7, 2017. Shownotes Richard Ranzau page at Sedgwick County Sedgwick County to consider raising debt limit. The Sedgwick County Commission will consider raising its limit on borrowing for reasons which need to be revealed, and then carefully examined. For Sedgwick County Commission, too much debate. By moving to end motions and debate, the Sedgwick County Commission isn’t effectively serving citizens and taxpayers. Tax rates in the city of Wichita: City of Wichita 32 mills (27 percent of total) Sedgwick County 29 mills (25 percent) School distric...
Downtown Wichita’s Block One, a beneficiary of tax increment financing
Wichita city government

Downtown Wichita’s Block One, a beneficiary of tax increment financing

Before forming new tax increment financing districts, Wichita taxpayers ought to ask for progress on current districts. I'll not bore you with the mechanism of tax increment financing (TIF). But if you're curious, please read Wichita TIF projects: some background and Tax increment financing district (TIF) resources. Whatever the mechanism, tax increment financing is meant to spur economic growth. But in one of Wichita's largest TIF districts, economic activity, much less growth, is difficult to find. In particular, "Block One" -- a square block bounded by Douglas and William, Broadway and Topeka -- has benefited from TIF money, but has stumbled. There is the Ambassador Hotel, which received many millions in taxpayer subsidy in addition to TIF benefits. There is also the Kansas Leadershi...
In Kansas, the war on blight continues
Kansas state government

In Kansas, the war on blight continues

Kansas governments are trying -- again -- to expand their powers to take property to the detriment of one of the fundamental rights of citizens: private property rights. Last year cities in Kansas lobbied for a bill that would expand their powers to take property from its lawful owners, all in the name of saving neighborhoods from "blight." Governor Brownback vetoed that bill, explaining, "The right to private property serves as a central pillar of the American constitutional tradition."[1. Weeks, Bob. Governor Brownback steps up for property rights. https://wichitaliberty.org/kansas-government/governor-brownback-steps-property-rights/.] The governor further explained: "The broad definition of blighted or abandoned property would grant a nearly unrestrained power to municipalities to cra...
Won’t anyone develop in downtown Wichita without incentives?
Wichita city government

Won’t anyone develop in downtown Wichita without incentives?

Action the Wichita City Council will consider next week makes one wonder: If downtown Wichita is so great, why does the city have to give away so much? Next week the Wichita City Council will consider a package of incentives for the developer of a large downtown building, the Finney State Office Center. The building has an appraised value of $7,902,570, per the Sedgwick County Treasurer. The city will sell it for $100,000. That's a mere 1.3 cents per dollar, if the county's valuation is reasonable. (But, the $100,000 is non-refundable, should the purchaser decide not to close on the building.) The project is also asking for the city to issue Industrial Revenue Bonds. Despite the use of the term "bond," the city is not lending money to anyone. Someone else will purchase the bonds. Inste...
Year in Review: 2016
Politics

Year in Review: 2016

Here are highlights from Voice for Liberty for 2016. Was it a good year for the principles of individual liberty, limited government, economic freedom, and free markets in Wichita and Kansas? Also be sure to view the programs on WichitaLiberty.TV for guests like journalist, novelist, and blogger Bud Norman; Radio talk show host Joseph Ashby; David Bobb, President of Bill of Rights Institute; Heritage Foundation trade expert Bryan Riley; Radio talk show host Andy Hooser; Keen Umbehr; John Chisholm on entrepreneurship; James Rosebush, author of "True Reagan," Jonathan Williams of American Legislative Exchange Council (ALEC); Gidget Southway, or Danedri Herbert; Lawrence W. Reed, president of the Foundation for Economic Education; and Congressman Mike Pompeo. January Kansas legislative res...
In Wichita, developer welfare under a cloud
Wichita city government

In Wichita, developer welfare under a cloud

A downtown Wichita project receives a small benefit from the city, with no mention of the really big money. Today the Wichita City Council approved a subsidy for a project in downtown Wichita. The city will lend the developer of a project at 303 S. Broadway $620,000 to improve the building's facade. The property must repay this amount through an assessment on its property tax. The benefit to the property is that the city is able to borrow money at a lower interest rate, and this reduces the cost of borrowing for the project. The agenda packet for this item states: "The Office of Urban Development has reviewed the economic (“gap”) analysis of the project and determined a financial need for incentives based on the current market." This stems from the city's policy on facade improvement pr...
CID and other incentives approved in downtown Wichita
Wichita city government

CID and other incentives approved in downtown Wichita

The Wichita City Council approves economic development incentives, but citizens should not be proud of the discussion and deliberation. Today's meeting of the Wichita City Council saw the council discuss and approve economic development incentives for a project in downtown Wichita. The item contemplated economic development incentives for redevelopment of an empty building in downtown Wichita to become a Hilton Garden Inn Hotel. The incentives being considered were a Community Improvement District (CID), Industrial Revenue Bonds (IRB), a parking agreement, and a skywalk easement. The discussion by the council was useful for revealing two members who are opposed to some targeted economic development incentives, but it also showed a troubling lack of knowledge and consideration by others. ...
Kansas economic development programs
Kansas state government

Kansas economic development programs

Explaining common economic development programs in Kansas. 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. Click here. Tax increment financing (TIF) resources Resources on tax increment financing (TIF) districts. Click here. STAR bonds in Kansas The Kansas STAR bonds program provides a mechanism for spending by autopilot, without specific appropriation by the legislature. Click here. Industrial Revenue Bonds in Kansas Industrial Revenue Bonds are a mechanism that Kansas cities and counties use to allow companies to av...
Wichita TIF district disbands; taxpayers on the hook
Wichita city government

Wichita TIF district disbands; taxpayers on the hook

A real estate development in College Hill was not successful. What does this mean for city taxpayers? Seeking to promote the redevelopment of land northeast of Douglas and Hillside, the City of Wichita entered into agreements with Loveland Properties, LLC, College Hill Urban Village LLC, and CHUV Inc. The original plans were grand: A Northeast Brownstone Complex located at the northeast corner of Victor and Rutan, a Condominium Tower and Brownstone Complex, a West Brownstone Complex, and the South Retail/Residential Complex. A city analysis in 2007 projected that by 2010 the value of these projects would be $61,817,932. Unfortunately, this project did not proceed as planned. The Northeast Brownstone Complex was built, and nothing else. Those brownstone condominiums proved difficult...
Tax increment financing in Kansas
Economics

Tax increment financing in Kansas

In this excerpt from WichitaLiberty.TV: How does Tax Increment Financing (TIF) work in Kansas? Is is a good thing, or not? View below, or click here to view at YouTube. Originally broadcast June 7, 2015. (more…)
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