Payments in Lieu of Taxes (PILOTS)
In accordance with the Real Property Tax Increment Allocation Redevelopment Act, Missouri Revised Statutes, Section 99.855.1, 100% of the incremental taxes resulting from the increase in assessed real property values within the redevelopment area shall be made available to the special allocation fund. Payments in Lieu of Taxes (PILOTS) are defined as the increase in real property assessed values over the most recently ascertained assessed value in the year of project area adoption. The PILOTS are billed annually by the County and the City and deposited directly to the special allocation fund. This is then paid to the Tax Increment Financing Commission (TIF). Browse the Economic Development Corporation webpage for more information.
Tax Increment Financing (TIF)
In accordance with the Real Property Tax Increment Allocation Redevelopment Act, Missouri Revised Statutes, Section 99.845.3, 50% of the incremental taxes resulting from economic activities with the redevelopment area shall be made available to the special allocation fund. The Statute states that "For redevelopment plans and projects adopted or redevelopment projects approved by ordinance after August 31, 1991, 50% of the total additional revenue from taxes which are imposed by the municipality or other taxing districts, and which are generated by economic activities within the area of the redevelopment project over the amount of such taxes generated by economic activities within the area of the redevelopment project in the calendar year prior to the adoption of the redevelopment project by ordinance, while tax increment financing remains in effect, but excluding taxes imposed on sales or charges for sleeping rooms paid by transient guest of hotels and motels, licenses, fees or special assessments and personal property taxes, other than payments in lieu of taxes, shall be allocated to, and paid by the collecting officer to the treasure or other designated financial officer to the treasurer or other designated financial officer of the municipality, who shall deposit such funds in a separate segregated account with the special allocation fund." For more information, browse the Economic Development Corporation webpage or contact the City of Kansas City Finance Department at (816) 513-1173.
Chapter 353 Urban Redevelopment
Chapter 353 enables a developer to acquire property using the power of eminent domain. Up to the first 10 years, the City can abate all taxes with the exception of the taxes on land. For this area the developer Old Town Redevelopment Corporation (OTRC) submitted a detailed development plan for this area in 1984. The plan was reviewed by the City staff, the City Planning Commission, and the City Council. In September 1984 City Council passed Ordinance 56936 (amended March 1989) approving the OTRC development plan, declaring this project site blighted, and granted 353 status to OTRC (see attachment).
Urban Redevelopment District
In May 1989 City Ordinance 63986 was passed which rezoned this area. The area was rezoned from Districts M-2a (Heavy Industry) and C-3a2 (Intermediate Business - High Buildings) to District URD (Urban Redevelopment District). The purpose of the URD is to encourage and accommodate redevelopment of blighted sections of the City and to encourage the latitude and flexibility in design to assure the state purposes of a redevelopment plan.
This project is located within a designated Enterprise Zone (EZ). The Kansas City, Missouri EZ is an area of general economic distress that has been given special designations by the City and State. The unemployment and poverty levels of zone residents are significantly higher than the statewide average. The goal of the program is to attract new business and encourage existing business to expand or modernize their operations located within the EZ.
Because of recent State legislation in 2005, area Enterprise Zones are being re-designed to meet state requirements. We hope to have the changes completed soon. Until such time, we will not be taking any new applications for the Enterprise Zone.
Enhanced Enterprise Community
This area is within the U.S. Department of Housing and Urban Development's Enhanced Enterprise Community (EEC). The goal of the EEC program is to direct funding toward areas of Kansas City which are currently experiencing economic and social distress. This area is located within the EEC urban core and could receive future economic, social and public service programs addressing these issues.