DEVELOPMENT FINANCE

Development Finance is involved on the front end and back end of every tax-incented development in Kansas City, from the idea stage through its lifetime. The division’s strategic goal is to provide an overall development framework that promotes sustainable economic development. Primary objectives include:

• Develop and recommend policies that govern the award, use and measures of economic incentives,
• Participate and lead the financial discussions throughout the development process and
• Rollout a new cost/benefit model for evaluating future development.

The division analyzes specific development proposals at a rate of 50 to 75 per year. There are over 50 Tax Increment Financing (TIF) plans currently that include over 1,000 businesses and there are over 700 tax abated projects/parcels. Each of these requires careful measuring and accounting for taxes that must be collected and redirected.

The City’s toolbox contains a wide array of incentive devices to encourage economic development which fall into four categories:

• Those that forego future tax base which include Ch. 100, Land Clearance for Redevelopment Authority, Urban Enterprise Zone, RSMO 353 and Planned Industrial Expansion Authority tax abatements.
• Those that redirect future tax base which include TIF, Super-TIF and Council Initiatives.
• Those that use the City’s credit strength to improve the marketability of an individual project to investors through an annual appropriation guarantee of future debt service.
• Those that provide self-supporting mechanisms for development which include Community Improvement Districts, Neighborhood Improvement Districts, Transportation Development Districts.

Each tool requires front end analysis to include:

• Real and personal property valuation
• Tax projections
• Real and personal property
• Economic activity (earnings, sales, conventon and tourism, utility, etc.)
• Fiscal impact analysis
• Development of financing/cooperative/development agreements
• Coordination with other entities (city departments, development organizations, taxing jurisdictions, etc.)

Each tool requires back end administration and monitoring to include:

• Collection of taxes (real property and economic activity)
• Redirection of taxes (real property and economic activity)
• Coordination with other entities (city departments, development organizations, taxing jurisdictions, etc.)
• Monitoring of annual reports (RSMO 353, Ch. 100, etc.)
• Execution of developed agreements

The division is dedicated to the improvement of the economic development process to provide fiscal leadership that promotes long term financial health.To attain that end result, the division works with the City Planning and Development Department and the Economic Development Corporation.