What is tax increment financing?

New Wichita vice mayor Jeff Longwell lamented to the Eagle last week the lack of public understanding of economic development funding, specifically the tax increment financing district. Reading the comments on a variety of Eagle eco-devo stories over the past four years, it’s impossible to disagree with Longwell.

Boy, it’s not easy to come up with a non-politicized definition of the eco-devo tool on the Internet, but here’s as close as I can come.

Armed with this objective definition, what are your thoughts about the city council’s decision Tuesday to throw in again with Real Development?

  • bth

    Good article Bill. I would build in some safeguards by contract to protect the sponsoring entity (City). One would be an agreement that there would be no tax valuation appeals. The projected increase in property valus should be ‘carved in stone’ to assure that the bonds get repaid. If things don’t work out as projected then the developers shoul pay off their bonds anyway. Only AFTER these bonds are paid should ‘normal proceedures’ reurn for property valuation.

  • Bill Wilson

    No argument here, Ben.

  • bth

    Bill – a story idea for you: Do an analysis of “before and after” property values of various projects downtown. East Bank (WaterWalk) which had occupants before the WW project took over and they were displaced. Old Town and especially the Warren area. The RD properties.

    Combine that with information about City investments. What fraction of any valuation increase reflects City investment? Has there been effective management of our investment? Has there been private investment? Ratio of private/public?

  • newsletter

    I would like to see a comparison of the various downtown developments like WaterWalk, Old Town, Real Development with the other TIF districts like College Hill and the other districts.

    I would then like to see those compared with the various incentives Cessna, Spirit, Boeing and Koch get.