Nobody's pitching a "big box" store to Emporia right at the moment. Which makes this the perfect time for Emporia to decide: what is the city willing to do to encourage commercial business?
"I think you get a lot better public policy when it is made in the absence of a specific customer," City Commissioner Tom Myers said in a meeting Wednesday between the city commission, the Regional Development Association and the city's bond counsel, Mary Carson. "You're not at the mercy of whatever winds might be blowing at the time and can decide a policy on its merits."
Right now, the city and the RDA are considering two approaches: tax increment financing and transportation development districts. Both offer a chance to get retailers in the door without offering a direct incentive.
Carson outlined both methods at Wednesday's meeting. A tax increment finance plan, or TIF, lets success pay for itself. The initial cost of building the commercial project is either put up by the developer or financed by city bonds. When the value of the property goes up, the increase in property taxes is used to pay that cost back..
Transportation development districts, or TDDs, are a little more subtle. Instead of helping pay for a new business, a TDD helps pay for some of the infrastructure: the roads, the utilities, the storm sewers, the street lighting and so on. To do this, the city creates a special sales tax district for the area. The extra sales tax is charged until the city bonds used for the improvements are paid off, which must be done within 22 years.
There's restrictions, of course. TDDs have to be requested by the land owners and can only be used for infrastructure. TIFs can only be used in certain locations, such as blighted areas or enterprise zones, require a number of hearings and can be shot down by the county government or the school district if they don't like the idea.
But either method offers the same benefit: a chance to attract or improve business without offering a tax break or an up-front cash payment.
"In other cities you've worked with, when they've established these policies, have they been controversial?" RDA board member Steve Sauder asked Carson.
"No," she answered. "Certain projects have been controversial, but not the policy itself."
The city plans to hold two public meetings later this month to discuss TIFs and TDDs and how they can be used. Commissioners will also review the policies of other communities with the aim of developing their own draft policy sometime in February.
"You can beat something like this to death, but until you get a first draft, you're wasting time," Commissioner Bobbie Agler said.
Utility controls
The commission will share the cost of a $44,000 improvement to the utility controls at the Emporia Public Library, with the city paying half and the library paying half.
The current pneumatic controls date back to 1979 and often result in parts of the library being too cold or too hot. Facilities Manager Ed Rathke estimated that updating the controls would save the library $500 a month.
"I hope I can make enough of an impact with these savings that I can come back before you next year and make a similar change in the Civic Auditorium," Rathke told commissioners at their business meeting Wednesday afternoon. "There's a lot more to gain. But first we have to prove ourselves across the street."
Mayor Jim Kessler, a co-owner of Modern Air Conditioning, excused himself from the discussion and abstained from the vote.
In other action, commissioners:
F Suspended timed parking near the Civic Auditorium during the Flint Hills Shoot-Out (Jan. 15 to Jan. 20) and Lyon County League (Jan. 22 to Jan. 27) basketball tournaments.
F Adopted a legislative policy similar to last year's, including a request for the state government to resume paying demand transfers to the city.
F Agreed to state-required changes in the building codes. Under the new codes, a plumber, mechanical installer or electrician must have at least two years' experience as a journeyman before testing for a master's certificate. The city has also abolished the "residential electrician" specialty, not having had a license-holder in that area since the mid-1990s.