There was no successful Wichita city sales tax election. City documents were mistaken, which raises more issues.
The agenda packet for this week’s meeting of the Wichita City Council held a surprise: The city had passed a one cent per dollar sales tax.
In the agenda for March 5, 2019, as part of item V-3, titled “Private Development Agreement with Wichita Riverfront LP (District IV),” there is a development agreement between the city and a group wanting to develop city-owned land near the new baseball stadium. Section 6.03 of the development agreement holds this surprise:
“The 1% City sales tax has been approved at an election, and the City agrees that the City sales tax revenues generated within the STAR Bond District will be committed to pay the principal and interest of the STAR Bonds.” (emphasis added)
It turns out this is a mistake. The city’s chief economic development official told me, “When we draft new agreements, we often cut and paste language from previous agreements to help build a base document.”
This language has been removed from the agreement, he also said, as it has “no purpose in this agreement.”
This still leaves a few questions:
First, from which previous agreement was this copied? Which agreement (or potential agreement) contained a statement that city voters approved a city sales tax? Which election?
Second, what if the council had passed this agreement with this language included?
Third, this is evidence of extreme carelessness. We’ve been told that this development agreement has been in negotiations for several months. Yet, this mistake somehow survived and almost became part of a binding document.
For more on this matter, see:
- Wichita city sales tax passed
- In Wichita, no tenant poaching, unless waived
- Coverage of Wichita baseball owner Lou Schwechheimer
- Slow down on Wichita ballpark land deal