Emporia can use incentives to attract retailers to town, the Emporia City Commission decided by a 4-1 vote.
The vote sets a policy allowing the use of tax-increment financing (TIFs) and transportation development districts (TDDs) to draw businesses. Under a TIF, the cost of developing a property is repaid by the additional property taxes it brings in. A TDD uses city bonds to make improvements for a property, such as roads and utilities, which is then repaid by increasing the sales tax on that particular business.
Neither incentive directly pays a business to come to town, but instead use that business' success to offset some of the development costs.
"It's probably not perfect," Commissioner Jim Kessler said of the new policy. "But a lot of work has gone into it. It's good and I think it's something we need to be focused on."
The one nay vote came from Mayor Julie Johnson. She said the city needed to be focusing on developing unique businesses rather than trying to attract the chains.
"I'm not a fan of TIFs or TDDs," she said. "I think they primarily assist out-of-town 'big box' sort of businesses at the expense of local business."
She also cited an Iowa study that concluded the benefits of TIFs did not make up for the costs.
Commissioner Kevin Nelson, meanwhile, said this would allow the city and the Regional Development Association to work with businesses on a case-by-case basis. The RDA is Emporia's chief industrial recruiter and was recently chosen as the lead agency for commercial development.
"We need to have something in place in case something comes up that we want to look at on an individual basis," Nelson said. "It's not just 'Anything that comes in, we've got to give them incentives.'"
Either incentive will generally be expected to be repaid in 10 years or less. TIF applicants:
-- Will be encouraged to redevelop an old property rather than developing a "green field" area.
-- Must demonstrate that the project is not feasible without the TIF and pay for a feasibility study of the project.
-- Must show the new tax revenue will cover at least 1.25 times the cost of any bonds or notes used to develop the project.
-- Must prove they have the means to complete the project and put up at least 20 percent of its cost or a performance bond.
-- Must put up an application fee equal to one percent of the project's cost, to a maximum of $50,000 as well as an administration fee.
-- Must meet certain design standards for building and landscaping and provide a traffic study if requested by the city.
The city's obligation to the developer may be reduced if the business fails to meet any job creation or sales tax goals that are set. Among other things, special consideration will be given to TIF projects that redevelop blighted areas or existing neighborhoods, that pay higher-than-average wages, that add a new kind of business to Emporia or sell goods mostly outside Emporia, or that have a capital investment of $20 million or more.
For a TDD, applicants must show that the infrastructure improvements would benefit the city, such as by eliminating blight, providing better roads than the city normally requires, attracting a large retail development or promoting a project important to the community. Special consideration will be given to projects of more than $10 million, that redevelop blighted areas and that create high-paying jobs, among other factors.
Like TIFs, TDD developers must put up 20 percent of the cost, pay all appropriate fees and show that the new tax revenues will cover 1.25 times the cost of bonds or notes. A developer seeking a TDD must also:
-- Provide detailed information to the RDA, such as the project's cost, any maps and how much assistance will be required.
-- Agree to pay for a financial feasibility study.
-- Prepare a market analysis, if required, showing where the development will draw its customers from and how other businesses may be affected.
-- Provide a traffic study, if requested.
The RDA will review all applications. Any incentives proposed must be voted on by the city commission.
An audience member, K.B. Thomas Jr., suggested that incentives for residential development might be more important than retail. Commissioner Jeff Longbine said redevelopment of existing residential neighborhoods was covered by the policy.
At its July meeting, the RDA will decide whether to add Emporia Main Street director Kayla Oney to its board as a non-voting member. Nelson had requested her addition so that the city's downtown development agency could have some say in commercial development.
daveedailey (anonymous) says...
Ok, lets here it from all you die hard business people. At least Julie Johnson is starting to wake up!!
June 28, 2007 at 8:58 a.m. ( permalink | suggest removal )
etown (anonymous) says...
Dave - Stop whining and do something about it. Run for city commissioner if you care so much. Granted, I would be very concerned about the future of Emporia if that were to happen.
June 28, 2007 at 9:01 a.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
Oh here we go again. Dave likes to cry and complain about everything that happens in Emporia. etown don't worry if he runs because you know he won't get any votes with his idotic ideas.
June 28, 2007 at 9:13 a.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Local, show us just how smart you are. Just because I have caught on to you does not mean you have to get snotty. Read the article that follows this one and see if you are still just ok with everthing!!!!
June 28, 2007 at 9:29 a.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
Dave, Just think about it for a minute do you think if we have more retail business in Emporia like a Target for example it will attract people to Emporia? Of course it will and those people that come to Emporia may then go out to eat or to a movie and spend more money in Emporia. That might be a good thing for our town. It goes back to Shopping Emporia First. If we get more people to spend their dollars in Emporia instead of Topeka, KC or Wichitia then it will be a positive thing for Emporia. I'm sorry that you can't understand this and think I'm snotty because I think you have idotic ideas.
June 28, 2007 at 9:46 a.m. ( permalink | suggest removal )
tunit (anonymous) says...
I'm going to Wichita this afternoon. Can't find what I need in this town. Shop Emporia First, what a joke.
June 28, 2007 at 9:59 a.m. ( permalink | suggest removal )
MelissaE (anonymous) says...
Build a casino.
Duh.
M
June 28, 2007 at 10:21 a.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Oh, I am sure if we did that (build a casino) the bible thumpers would get involved and the ones that worry how welfare will spend their money. Got news for you guys, there will be more people on welfare in the next couple of years than ever before. I too will continue to shop out of town until they start hiring in town!!! Why not give my sales tax to some other city that denies tax breaks to big company's. Kansas is getting two more casinoes. Those lucky people that will have more money flowing in their counties than they will ever spend.Thank you tunit and Melissa. You guys are seeing and hearing just what we put up with in this town. Forked tongues and liars.
June 28, 2007 at 11:15 a.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
Dave, In case you haven't realized all cities give tax breaks to companies that expand and and jobs to a community. Have fun trying to find a city that doesn't. Your arguement that you will continue to shop out of town until they start hiring in town is a joke. So if they were to bring a casino to Emporia then how would you help those on welfare that continue to gamble it all away. The majority of people that gamble at casinos are the ones that can't afford to be gambling.
June 28, 2007 at 1:26 p.m. ( permalink | suggest removal )
admireed (anonymous) says...
TIF and TDD must be handeled very carefully. Sharp promoters (developers) will promise the moon with created numbers...looks great on paper. A few years later the projections will be way off. And there we (city) sit!
June 28, 2007 at 1:45 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Just look at what you just said. I knew bible thumpers and people that do not want wasted welfare at the casinoes would start in. What they do with their money is their business, not yours or anybody elses!! Just like pro choice, trying always to tell everybody else what to do and how to do it. I still stick to what I say, bring retail worth having and I might shop Emporia, but I still want to hear people HIRE Emporia. By the way the word "idiot" is always spelled wrong on your posts. May be you are not as smart as you think. Camelot was great in it's time and also with JFK!!!!!(If you even know what that is)
June 28, 2007 at 1:51 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Thank you admired!!
June 28, 2007 at 1:59 p.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
I'm not a bible thumper but I still think a casino would be a disaster for our citizens on welfare. It's my business what they do with their money when it is coming from the taxes I pay. I'm so sorry I misspelled a word. It really shows what type of person you are since that is the only thing you can defend yourself with. I'm a bad speller and a bible thumper according to daveedailey. You still never told us what you do for a living the makes you the almighty powerful one.
June 28, 2007 at 2:26 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Look around you, I am in plane sight. I hide behind no false names. I have been around Emporia for a very long time. I have seen it go from bad to worse in the last 5 or so years. You gripe about welfare and what they do with "your" money, I will gripe what the city does with mine!
June 28, 2007 at 2:59 p.m. ( permalink | suggest removal )
LocalGuy (anonymous) says...
You still won't say your name? I still think it would be funny to know what you do for a living. I have never said I like everything that the city does with my taxes but I think tax breaks for the companies that are providing jobs for the people of Emporia are important.
June 28, 2007 at 3:05 p.m. ( permalink | suggest removal )
MelissaE (anonymous) says...
daveedailey is the real name. Trust me, I know. We may not agree on everything but I do, personally, know daveedailey.
M
June 28, 2007 at 3:18 p.m. ( permalink | suggest removal )
etown (anonymous) says...
As much as he complains, I'm beginning to wonder why Dave even lives in Emporia. He doesn't shop local, why bother.
June 28, 2007 at 4:20 p.m. ( permalink | suggest removal )
vankamp (anonymous) says...
For all you shop Emporia First people: I recently heared the wife of one of our great city commissioner say that she just can not find anyone in Emporia to do her nails or hair correctly so she has to go to Lawrence. And of course she always takes a couple of friends when she goes. Don't worry &&&&, I won't put your name in the article. But maybe your husband should think twice before speaking about shopping out of town. I figure if going out of town to shop is good enough for them, it's good enough for me.
June 28, 2007 at 9:27 p.m. ( permalink | suggest removal )
momus (anonymous) says...
This is my first time posting a comment here, so be gentile :). Just a few points. One, Target isn't comming to Emporia. Their corporate headquarters turned us down because we have a population within our trade area that is MUCH too small to fit their business model. Second, this whole idea of big boxes bringing people to Emporia in droves is a misnomer. Several nationwide studies have actually determined the "capture" rate of big box stores, and put the capture rate at between 84 and 87%. That means 84-87% of sales generated come from sales once generated by preexisting businesses in the area. When you add to that the fact that locally owned businesses are 70% more efficient at returning dollars spent at their stores into the local economy, you can see the math dosen't add up for positive change in Emporia.
Oh, and by the way TIF districts used for greenfield and big box development have shown a direct causal relationship to increased property taxes. Because tax increments captured go towards on site infrastructure costs instead of towards the general fund, schools or special projects the rest of us have to make up for the revenue shortfall by accepting a property tax hike (or a cut in services). So we have that to look foward to!
July 1, 2007 at 12:49 p.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Local guy, since you want to butt into my business and know who I am, I am a "FARRT". Have fun!!!!!!!!!!!
July 2, 2007 at 9:35 a.m. ( permalink | suggest removal )
daveedailey (anonymous) says...
Mom, I have read and heard the same thing. I have also heard that Target might consider Osage because it will draw a bigger crowd than what Emporia can draw. Have you heard on this?
July 2, 2007 at 9:56 a.m. ( permalink | suggest removal )
momus (anonymous) says...
Dave,
Target is NOT considering Osage City. Actually, a lot of Osage County is considered part of Topeka's trade area and it would not make much sense for Target to compete with themselves within a compressed market.
As far as Osage being able to draw a bigger crowd than Emporia, I don't think that's going to happen in the near future. We do, however, need to plan for Emporia's market position within the next 20 years. In the next 20 years, Emporia may very well be surrounded by metroplexes. Kansas City, Topeka, Lawrence and Manhattan may one day grow together. Wichita, McPherson and Salina are expanding closer to one another. Pittsburg and Joplin are basically sister cities. How do we compete with that? Basic marketing tells us we have to differentiate our product (Emporia). So, if everyone else is being dominated by big boxes, we better pump up our unique destination businesses in order to capture traffic on the interstate and turnpike.
July 2, 2007 at 6:47 p.m. ( permalink | suggest removal )