Economic Development

Posted on: January 11, 2017

KC Economic Development Incentive Policy

The City Council of Kansas City, Missouri passed Ordinance 160383 in October of 2016.

Generally, the ordinance provides for impacted taxing jurisdictions to receive a share of the incentive dollars that are generated by a developer’s investment.

For example, a developer may have previously received a tax abatement where in year 5, the developer did not pay any new property taxes generated by their investment in a development. The new ordinance provides that a developer would pay 25% of new taxes generated by their investment to the taxing jurisdictions and continues to abate 75% of the new taxes generated.

The ordinance provides exceptions where a developer may continue to pay no new property taxes by meeting certain criteria such as developing in a distressed census tract or by receiving a “high impact” score on a scorecard generated by the Economic Development Corporation of Kansas City, Missouri.

The ordinance includes a provision for a Shared Success Fund whereby Kansas City’s share of revenue resulting from the ordinance and other sources are dedicated to development in distressed areas.

Facebook Twitter Google Plus Email

Other News in Economic Development

KC Animal Health Corridor

Posted on: April 25, 2017