The City of Overland Park provided limited types of public incentive for private investment in commercial development. The city continues to consider redevelopment needs and look at exploring the use of economic development incentive tools.
Tax Increment Financing (TIF)
Tax Increment Financing is a tool which pledges future gains in taxes to finance the current improvements which will result in those gains. TIF is designed to channel funding toward improvements in areas where development/redevelopment may not otherwise occur.
When an area is developed or redeveloped, there is an increase in the value of the property. The increased site value and investment creates more taxable property, which increases tax revenues. The increased tax revenues are the "tax increment." TIFs pledge the future increased revenue for repayment of eligible costs associated with the improvements.
In Kansas, a TIF Project must be located within a "redevelopment district," which may be established by a city in: (1) Blighted Areas; (2) Conservation Areas; (3) Enterprise Zones; (4) Major Tourism Areas; (5) Major Commercial Entertainment and Tourism Areas; and (6) Bioscience Development Areas.
TIF do not result in increased property tax rates or increased sales tax rates. Projects may be funded by the use of special obligation bonds or on a pay-as-you-go basis.
Transportation Development District (TDD)
A TDD enables an additional sales tax or a property tax special assessment to be charged within the district. The proceeds from this additional tax or assessment are to be used for repayment of TDD eligible project costs. According to Kansas law, a TDD tax or special assessment can only be used on costs that are for transportation related projects or infrastructure. This may include roads, traffic signals, parking lots, sidewalks, and related utility relocation.
Projects may be funded by the use of special obligation bonds or on a pay-as-you-go basis.
Community Improvement Districts (CID)
Similar to TDDs, CIDs allow an additional sales tax or a special assessment to be charged within the district. The proceeds from this additional tax or assessment are used to finance CID eligible project costs. According to Kansas law, a CID tax or special assessment can be used to fund capital improvements, infrastructure, and certain operational costs.
Projects may be funded by the use of special obligation bonds, full faith and credit bonds, or on a pay-as-you-go basis.
Sales Tax Revenue (STAR) Bonds
Sales Tax Revenue (STAR) Bonds provide the opportunity to issue bonds to finance the development of major commercial, entertainment and tourism areas and use the sales tax revenue generated by the development to pay off the bonds. STAR bonds are approved through the Kansas Department of Commerce.
Active economic development incentive areas:
- Cherokee South Shopping Center - southwest corner of 95th and Antioch (TIF)
- Deer Creek Woods - 135th and Metcalf (1- cent sales tax TDD )
- Oak Park Mall - southeast corner of 95th and Quivira (1/2-cent sales tax TDD)
- Prairie Fire - southwest corner of 135th and Nall Avenue (STAR Bonds)
- Quivira 95 Shops - northeast corner of 95th and Quivira (1-cent sales tax CID)
- Southeast Corner 91st Street and Metcalf - southeast corner of 91st and Metcalf (1-cent CID)
- Tallgrass Creek Erickson Retirement Community - 139th and Metcalf (Property Tax TDD)
- Valley View Shopping Center - southeast corner of 95th and Antioch (TIF)
- West Park Shopping Center- northeast corner of 87th and Farley (1-cent CID)
For information regarding specific tax rates and affected addressed, please consult the latest version of the Kansas Department of Revenue's Jurisdiction Code Booklet (Publication 1700), "Special Jurisdiction Addresses" section (the last section of the publication) that can be found on the Kansas Department of Revenue - Local Sales Tax Information website.