| DOCUMENT DESCRIPTION: |
ORDINANCE introduced by City Manager Brent Trout, establishing a Community Improvement District for the Wheatfield Village District at 29th and Southwest Fairlawn Road and levying a CID sales tax of two percent (2%) within the CID.
Voting Requirement: Majority vote of the Governing Body (6).
(Approval would establish a community improvement district at the northwest corner of SW 29th Street and SW Fairlawn Road and impose a 2% retailers sales tax on retail sales or services within the district.) |
| VOTING REQUIREMENTS: |
| Majority vote of the Governing Body (6). |
| POLICY ISSUE: |
| Whether to establish a community improvement district and impose a 2% sales tax on businesses located within the Wheatfield Village district located at the northwest corner of SW 29th Street and SW Fairlawn Road. |
| STAFF RECOMMENDATION: |
| Staff recommends the Governing Body adopt the ordinance. |
| BACKGROUND: |
The owner of Wheatfield Village has petitioned the governing body to establish a Community Improvement District (CID) pursuant to K.S.A. 12-6a26 and impose a 2% sales tax on good and services purchased within the district. The sales tax expires 22 years from the date collections start, or when the developer's reimbursable costs have been paid.
The total costs of the project are approximately $93 million. Reimbursements for the eligible CID project costs would be distributed once received from the State of Kansas and certified as eligible costs. The 2% sales tax revenue would be generated based upon taxable sales in the district.
A public hearing was held and closed on October 3, 2017. The City of Topeka CID Policy requires approval of a development agreement.
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| BUDGETARY IMPACT: |
A community improvement district is a self-supporting economic development tool. The CID levies an incremental sales tax on businesses within the district. The state collects the incremental sales tax, remitting it to the City for reimbursement of qualified CID project costs as certified by the project developer. The City's only budgetary impact is the administration of the monies and per City policy, an administrative fee is charged to the sales tax received.
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| SOURCE OF FUNDING: |
| 2% CID Sales Tax |