The No-TIF District
![]() By Mark Forsythe The Kansas City Post It seems there isn't a week that goes by in Kansas City without some sort of announcement about tax incentives being asked for or awarded. Whether it be a small tax credit to move the nomadic NAIA headquarters from downtown; to Tulsa; to Olathe and back to downtown, a 353 Tax Abatement to reward a politically active local electrical contractor, or the usual TIF plans for building more "public" parking structures there is no end to the public subsidy gravy train. So much time and energy is expended creating, expanding and modifying TIF Districts. Check the docket of any weekly council meeting and you'll most likely see the words "amended" and "TIF district" in the same ordinance. An economic development tool that was meant to revitalize has actually created a new welfare state. TIF Districts tend to grow and multiply rather then retire quietly. Have you ever heard of a TIF district being eliminated or at least reduced? Why can't we create no-TIF Districts? It seems to me it might save some time if we red-lined some places on the map and told developers they're definitely on their own in these areas. It doesn't take the charade of an Economic Development Task Force to understand what areas of Kansas City do not need to be incentivized. Why is it that any Kansas Citian with a pulse will shake their head in disgust at the prospect of TIF incentives on the Country Club Plaza, or greenfields in the northland yet the incentive party continues ahem... unabated? The answer, in my opinion, is simple economics. You, the average Kansas Citian do not write large checks to political campaigns. Developers, their attorneys, construction companies, contractors, and unions do. The organizations that benefit the most from the actual construction activities are the ones controlling the lifeblood of our politicians. Money. These groups have your elected officials' cellphones on speed dial. You don't. It would seem the mayor and council could go a long way towards restoring public faith in our economic development policies by declaring a moratorium on tax incentives in just one area of Kansas City. I recommend starting with the Plaza, but there are other areas that would qualify. Sure there will be much wailing and hand-wringing from the developers, and maybe even a threat or two about withholding campaign dollars, but in the end even they will realize that it's a level playing field and there is plenty of opportunity to go around. |







Comments on "The No-TIF District"
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Anonymous said ... (10:34 AM) :
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Michelled said ... (11:04 AM) :
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Alan Birch said ... (12:44 PM) :
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the wife said ... (1:22 PM) :
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W.A.Hughes said ... (3:05 PM) :
post a commentEvery TIF, Star Bond, tax incentive, tax abatement, etc. results in the tax burden being shifted more to the average citizen. The people are going to have to realize they are paying for all of these projects which I think most of them really do not care if they come about and which they also cannot afford. These incentives are doing nothing more than lining the pockets of big biz, developers and special interest groups. If these companies believe they can spew their blackmail messages and the people have to pay them to come to their community, then I don't believe these companies are worth having. ALL ENTITIES need to pay their FULL taxes and not ask for their tax dollars to be diverted thru the use of TIFs and Star Bonds - these tax dollars are necessary for the needs of the community. The people should be speaking out against these incentives or their taxes are going to be so high that their financial stability is going to be affected.
I was at one of Funk's town hall meetings where he told the audience: "If you don't like the way this government is run you have no one to blame but yourselves." Well, I voted for Funk so he would put an end to this kind of crap - it was a campaign promise right? Maybe I was dreaming. So sorry folks, this is apparently all my fault...
I think the majority of *voters* in this city are doing too well in life to vote in anything but the status quo. I really don't get it...
Obviously something is amiss when the council and mayor we voted for this year promised us TIF reform and we still get stuck with all of this. What it tells me is that the special-interest money is just too strong and even the reform-promising government we elected can't/won't do anything about it.
Too bad citizens can't do anything about it with ballot petition initiatives anymore since the council can just vote it down.
We're pretty much screwed. Get used to it. Funky's pretty much right on the money. We have the government and city that we deserve.
Michelled -
We shouldn't blame ourselves for voting for our dissatisfaction. Funk misrepresented of himself, his priorities and his effectiveness as a leader. I'm still waiting for any change in policy that results in anything other than the status quo.
Perhaps my dissatisfaction with (lack of) leadership in city hall will inspire me to write my first editorial for the KC Post. (Although reasonable minds could conclude that my inspiration to write an editorial is the result of finals stress avoidance)
I would encourage all citizens of both Kansas and Missouri to be very familiar with the TIF laws in their states. In Kansas there is a way for the people to take action but first of all they are going to have to be very familiar with the law and then they are going to have to get off their duff and do the necessary work to stop the TIFs in their community. I am not as familiar with Missouri but we are all going to have to do our own research and take the necessary action to protect our financial stability. It is not easy but anything worthwhile is not easy. Again you get the governmnet you deserve but it is not going to be handed to you. For starters call your city or county offices and ask what statutues are applicable in your state for TIFs, go to the library or go on the internet and review these statutues and ask questions until you are very familiar with these laws. Then educate yourself on the TIF process that your city has to follow (call City Hall). This will start you on your way to protecting your interests - I would highly recommend you take these steps to get you the government you deserve.
Mark,
Your not drinking the kool-aid on this one. If we didn't have these TIF's we'd have to drive to JOCO to consume $500 purses, $150 steakhouse meals. Where would we keep our citizens employed without all these $8-12/hour jobs that the powers that be in the last Council rubber stamped?
Heaven forbid, why would we want to only use this tool and do a TIF or abatement to bring in a factory or white collar corporate HQ from outside the metro area when we can move Wal-Mart, Target, Home Depot, etc accross the street or to a new zip code.
TIFs should solve problems - those problems that we all agree are problems that merit public financing.
And TIFs certainly don't belong on the Plaza....
Kansas City already has a No-TIF district.
Everything east of Troost.
hehe.
Good point XO.
Whatever happened to Mark's "the next TIF request better damn well be for the east side" speech?
Anon 11:29 - he must be counting the Bannister Mall TIF.
The Wife - good luck on your tests!
On the same note, here's an article about a project having trouble getting tax abatements for a plaza project.
http://primebuzz.kcstar.com/?q=node/8690
Forget about TIF, John Sharp has put the Council in a difficult position by pushing an ordinance that removes a special $40,000+ City assesment from his church. The other Councilmemebers cannot reasonably scrutinize this becuase they risk offending their counterparts and getting shoved into irrelevance.
Legislation #: 071337 Introduction Date: 11/29/2007
Type: Ordinance Effective Date: none
Sponsor: COUNCILMEMBERS SHARP, CURLS, JOLLY, RILEY AND SANDERS BROOKS
Title: Releasing and abating a certain special tax assessment of the City upon property owned by Canaan Missionary Baptist Church at 4423 Olive Street.
http://cityclerk.kcmo.org/liveweb/Documents/Document.aspx?q=MnTL6kN8XGJwytSqZ6An%2b37iCpbgcdsJ0vE4Jv7H5vGqLDemNQbECp7G0c8%2bYtix
Or you can read the real back story of that request for assessment relief here. The Church got screwed.
http://primebuzz.kcstar.com/?q=node/8779
The Bannister TIF does show that Funkhouser is at least somewhat serious about getting future TIFs to better follow the new policy guidlines. I'm not sure he has much political tact, but I think he has a handle on TIF.
Lane4 completely reworked their plan to fit Funkhouser's new policy guidelines, and the City got a better deal because of it.
First, this is truly a blighted area and I believe would qualify under the "economically distressed" tag with a 2007 survey. This is a pay as you go project. Most importantly the city doesn't have to back the bonds, only the developer.
The 28% or so of public financing is a much better ratio than other recent projects, especially considering the 700 million in private dollars being put up by the developer towards the project.
There is a neighborhood home repair fund generated from this TIF, and a sizable payout to the Hickman Mills School district from an area that currently earns nothing. Finally, any Waterfall earnings will go back to the city if the project does better than expected.
TIF is a powerful tool that can be used to do good in the city. However, it needs a strong, comprehensive, but not "one size fits all" policy.
what part does Joe Gonzales play in the approval process?
Do TIF funds flow directly to the applicant? ie Does he get money up front?