Economic Development Programs

Community Improvement District 

The creation of a CID allows private parties - property owners - to assess or tax themselves for improvements and services which benefit the entire community. The activities of the District could be governed by a Board comprising of owners, businesses and voters appointed by the City Council or by election. Alternatively, the District could be governed by a Not-For-Profit Agency if the District is funded solely through assessments. Within its boundaries, the CID could provide assistance to or construct, install, repair, maintain and equip a broad range of public improvements and facilities, as well as undertaking security and promotional activities. Established Community Improvement Districts in Kansas City include:

Neighborhood Improvement District 

Neighborhood Improvement Districts are created by property owners in an area of the city with defined limits and boundaries by vote or by petition in order to provide financing for public improvements. The City issues a special assessment against the real property within the NID to cover cost of improvements to the district. Eligible improvements that could be made with proceeds from the special assessment in an NID include virtually any public improvement. An NID can be created for commercial or residential properties. Policies for the review and approval of NIDs have been adopted by the City Council and the Division coordinates the review of these projects. The following commercial Neighborhood Improvement Districts have been established in Kansas City:

• 47th & Penn NID
• 108th & Cookingham NID
•  909 Walnut NID
•  Barry Towne NID
•  Chouteau Crossing NID
•  Plaza Colonnade NID
•  Valencia Place Redevelopment NID

Special Business District

Special Business Districts can be created to permit property owners to pay additional taxes or special assessments for the purpose of improving their neighborhoods and businesses. The Division is currently administering two SBDs - Westport Special Business District and Union Hill Special Business District. Both of these SBDs are using the special tax revenues to maintain and operate decorative streetlights.

Procedure to Establish a Special Business District:

1. One or more property owners within the proposed district must petition the Mayor and City Council to establish the district. This petition must be filed with the City Clerk.
2. A Survey and Investigation must be authorized by the Council for the staff to prepare. This report includes six subjects:
   1. The nature of a suitable location for business district improvements.
   2. The approximate cost of acquiring and improving the land.
   3. The area to be included in the district.
   4. The percentage of the cost of acquisition, special services, and improvements in the business district which are to be assessed against the property within the district and that part of the cost, if any, to be paid by public funds.
   5. The need for and cost of special services.
   6. Cooperative promotional activities.
3. This report is then submitted to the City Council as a Resolution to adopt the district.
4. The report is then heard by the Finance Committee and a public hearing is held. Notice is mailed by the city to all affected persons.
5. If passed, an ordinance is to establish the district and the tax levy is prepared. This is sent to the Finance Committee and another public hearing is held.
6. If passed, a Board of seven members is appointed by Resolution. Five members must own property within the district and two members must be business owners within the district.
7. The Board is required to hold its own public hearing in regard to a proposed tax levy.
8. The Board adopts a Resolution asking the Governing Body to hold an election for the district.
9. The Council authorizes the election and the City Clerk conducts the election procedures.

Existing SBDs:

• Westport SBD
• Union Hill SBD

Transportation Development District

Transportation Development Districts are independent political subdivisions organized to levy taxes or assessments to pay for the construction of roads, parking facilities or other transportation related improvements, and to finance those improvements by issuing TDD bonds. Any property is eligible to be included in a TDD as long as the improvements constructed are transportation related.

Approval Process:

1. A petition is filed in circuit court by property owners (in fact, on occasion, by a single property owner). Notice of the filing of the petition is given to MoDOT and local transportation authorities, such as the city. Following a hearing, if one is requested, the circuit court approves the creation of the district, the project which the district proposes to construct, and the funding mechanism with which the district proposes to pay for the project.
2. To the extent taxes are involved in the funding mechanism for the district's project, an election is held. If registered voters live within the TDD, registered voters vote. If there are no registered voters within the TDD, property owners within the TDD vote to approve the taxes.
3. Following imposition of taxes or assessments to fund the project, final design begins, usually by MoDOT or a local transportation authority.
4. Upon completion of design, bonds are sold by the TDD and construction undertaken pursuant to a construction contract entered by the TDD, or by the city or MoDOT pursuant to a cooperative agreement with the TDD.
5. The City Council of Kansas City participates in the TDD approval process by passing a resolution endorsing (or opposing) a project at the time of the circuit court review. Additional control over a project can be exercised through a cooperative agreement between the city and a TDD.

Existing TDDs:

• 210 Highway TDD
• Jazz District TIF (approved with authority to construct parking using a TDD)
• Zona Rosa TDD