Missing Funkhouser yet?
Former Mayor Funkhouser is long gone, and Kansas City is once more “open for business.” The TIF commission has recommended a proposal for tax-increment financing of $33.4 million for a retail development at Shoal Creek. The city council will soon vote whether to approve.
Nothing has changed from the pre-Funkhouser era.
The TIF commission accepted the argument that a pasture was blighted because, according to a consultant, it had inadequate street layout and obsolete platting.
The same players are back. Development lawyer David Frantze said that the project wouldn’t be viable without TIF incentives. (Of course, $33 million would help a lot of businesses cross the line into viability.)
And, the project is for retail stores and a residential neighborhood, not for a new manufacturing plant or business that doesn’t already exist in Kansas City.
You may remember that the Bannister Wal-Mart closed the very day that the Blue Ridge Wal-Mart, made possible with TIF, opened. The city effectively paid $25 million to move a Wal-Mart within city limits. Wal-Mart even put up a sign saying, Your Wal-Mart Has Moved. It was taken down fairly quickly; salt in the wounds and all that.
Meanwhile, Kansas City is losing millions on the Power and Light District. The city of Independence had to lay off workers to pay for the revenue shortage from commitments to the Bass Pro store. Does anyone really believe developers’ revenue projections?
I’m all for the city partnering with business, especially in truly blighted areas. But I wish I could be convinced that Shoal Creek is the last pasture the city will spend millions of dollars on to add to the supply of overbuilt retail developments.
I’d really like for each TIF Commissioner and member of the city council to provide their rationale for voting for this TIF (assuming that they do). Please, explain to the taxpayer why this project is different from all the others. Send letters to the Star. I bet they’ll publish them.
Maybe there are political considerations that can’t be discussed publicly. The city has participated in the Briarcliff development. Twice. The Power and Light District. And the Bannister development, approved but not commenced. Talk about spreading the wealth. Maybe there had to be votes swapped to get anything done.
TIF Commissioner Philip Glynn was quoted by the Star’s Kevin Collison (KansasCity.com) saying, “Every time we create a TIF, we’re using a small part of our political capital and financial capital.”
That’s right.
And Mayor James wants tax increases to pay for long neglected infrastructure improvement. It’s really hard to support any tax increases when the TIF giveaways seem so ridiculous. Please, Mayor, please explain why a TIF for a pasture is good economic development.
And remember this. Laugh at Funkhouser for his terrible political skills. But consider the possibility that he kept or at least delayed the city from complete financial ruin.
George Hunsucker
Northland
1 year agoI am afraid you are talking to a friggin’ wall George…. Libs in KC love to tax, spend and payoff political donations….
You correctly note this is in no way blighted, merely needy of taxpayer money to be viable. And these same political hacks will campaign on how frugal they are with taxpayer dollars and how concerned they are about the KC poor….
What a bunch of unadulterated BS….
George Harris
Kansas City
1 year agoGeorge, I don’t think it’s helpful to think about this as a liberal/conservative issue. It’s not likely that the developers are liberals and not likely that anyone is being paid off for political donations, though I guess that’s possible. More likely is that the developers see a way to make money with the tax breaks and they present the rosy scenario to the TIF commission and the city council. Everybody wants to bring business to the city, and each area of the city wants some of the development. It’s hard for the political people to say no and get blamed when a neighboring city draws the development away. TIF was originally a good idea, but it’s being misused. Downtown needed a jump start, for example, but where do the tax breaks finally stop? The developers always say “Just fund this final project and all will be well” (such as a downtown hotel), but then there’s another final project, etc. etc. etc.
Kent Mueller
1 year agoGeorge, you are mostly right. I don’t necessarily see this as pure liberal/conservative issue, either. But I dispute your statement that “It’s not likely that the developers are liberals..”. If it’s not likely they are liberals, then it must be more likely they are conservatives. Why would you say that? Case in point. We almost had a development lawyer as our mayor this last election. Are you saying it is not likely that he is liberal? He is a Democrat.
I think you are letting the elected officials off too easily. We elect them to say no when no is the right answer. If they don’t say no when no is the right answer,then they need to go.
I have an idea for a terrific piece for the Star to do. Obviously, every TIF project that has been passed, did so with projections of financial success for everyone. Let’s go back a couple of decades and lay out all of the TIF projects that got funded. Then compare projections with reality. Also compare “breakeven” with reality. Are we breaking even over time? I think not.
George Hunsucker
Northland
1 year agoDo liberals run the commission and council George? Is the mayor a liberal?
I rest my case…..