SedgwickCountyEconomicDevelopment

Incentives 2013Status
11/6/2013
1
Sedgwick County Economic
Development Incentives Development Incentives
2013 Status Report
November 6, 2013
1
SEDGWICK COUNTY POLICY:
TAX INCREMENT FINANCING
County supports city use of TIF if it doesnt create
adverse impact
Ad i t Adverse impacts are:
Potential loss of tax revenue would hinder future delivery of
public services
Proposed project is economically feasible without county
funding support
Proposed private equity is insufficient to effect default risk
2
County costs exceed county benefits
Insufficient data or time provided for county staff to evaluate
proposal
SedgwickCountyEconomicDevelopment
Incentives 2013Status
11/6/2013
2
SEDGWICK COUNTY POLICY:
PROPERTY TAX EXEMPTIONS
County will grant exemption only if it will lead to direct
economic benefit creation or retention of jobs,
diversification stimulation of additional private investment diversification, stimulation of additional private investment
Targeted benefit is $1.30 for each $1 of exemption
Business must export at least 50% of product outside
Kansas
Amount of exemption determined by formula
Exemption may be as much as 10 years and 100% of tax levy
3
p y y y
SEDGWICK COUNTY POLICY:
LOANS & GRANTS
Incentives are appropriate to:
Broaden tax base
C t j b t iti Create new job opportunities
Promote economic growth
Minimum expected public benefits of $1.30 per $1 of
public costs
Eligibility restricted to specified business sectors
4
SedgwickCountyEconomicDevelopment
Incentives 2013Status
11/6/2013
3
SEDGWICK COUNTY POLICY:
LOANS & GRANTS, CONT.
Business must pay average wage at or above industry
average locally, or above average wage of all local jobs
other than aircraft manufacturing other than aircraft manufacturing
Business must attain specified levels of job creation /
retention, wages, real property capital investment
Business must repay some or all of incentive if it defaults
5
THE RESULTS:
TAX INCREMENT DISTRICTS
County
Property Tax
County Property Tax For 2013 Budget
Change of
TIF district
Change of
county-
wide
assessed
Base
Year
in Base Year
Budget (All
to County)
assessed
value since
base year
value
since base
year
County tax
to County
County tax to
TIF district
Total County
tax
% of total
County tax
to County
21st & Grove 1995 $1,099 $1,149 $35,613 $36,763 3% 2,675% 103%
East Bank 1995 $14,608 $12,774 $412,164 $424,938 3% 2,841% 103%
Northeast
Redevelopment
District
1997 $349 $340 $7,835 $8,176 4% 2,301% 84%
Old Town
(Cinema II)
1999 $13,793 $12,663 $86,763 $99,426 13% 682% 65%
6
(Cinema II)
Douglas &
Hillside
2006 $23,678 $22,266 $14,421 $36,687 61% 63% 13%
Center City South
- Exchange Place
2007 $251,444 $197,721 $25,601 $223,323 89% 8% 6%
Center City South
- Arena
2007 $172,683 $148,340 $29,287 $177,628 84% 7% 6%
KenMar 2009 $14,798 $14,589 $0 $14,589 100% 160% 1%
TIF District
Totals
$492,452 $409,844 $611,688 $1,021,533 40%
SedgwickCountyEconomicDevelopment
Incentives 2013Status
11/6/2013
4
THE RESULTS:
TAX DECREMENT DISTRICTS
County Change of
Base
Year
County
Property
Tax in Base
Year
Budget (All
to County)
County Property Tax For 2013 Budget
Change of
county tax
in TDF
district
since base
year
Change of
county-
wide tax
since
base year
County tax
to County
County tax to
TDF district
Total County
tax
% of total
County tax
to County
Gilbert Mosley 1993 $2,675,373 $3,366,029 $659,167 $4,025,197 84% 47% 114%
North Industrial
Corridor
1996 $1,505,359 $2,449,299 $288,105 $2,737,404 89% 74% 95%
TDF District
Totals
$4,180,732 $5,815,328 $947,273 $6,762,601 86%
7
THE RESULTS:
PROPERTY TAX EXEMPTIONS
Exemption provider
Est. total '12 cost of
exemption
Real property market value
added
County $303 384 $10 252 340 County $303,384 $10,252,340
Wichita $4,458,787 $146,100,211
Park City $2,441,491 $65,523,060
Derby $185,819 $5,390,880
Bel Aire $125,684 $3,220,830
Haysville $140,882 $3,511,540
Colwich $209,453 $6,239,300
Maize $200,727 $5,219,900
Goddard $13 782 $373 000
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Goddard $13,782 $373,000
Kechi $19,101 $535,300
Mulvane $26,011 $789,400
Valley Center $31,205 $827,100
Cheney $23,350 $600,000
Sedgwick $23,463 $640,540
Total $8,203,139 $249,223,401
SedgwickCountyEconomicDevelopment
Incentives 2013Status
11/6/2013
5
THE RESULTS:
COUNTY LOANS & GRANTS
Year
Number of
Companies Loan Total
5th Year Job
Commitment
5th Year
Average Wage
Commitment
Most Recent
Job Actual
Most Recent
Average Wage
Actual
Total
Clawback
Repayments
Received
2005 2 $162,500 108 $41,400 110 $41,435 $112,500
2006 3 $217,000 555 $67,109 386 $112,399 $0
2007 2 $37,500 718 $23,123 581 $22,446 $12,500
2008 3 $6,760,000 953 $60,889 884 $60,615 $5,000,000
2009 3 $275,000 235 $39,297 144 $39,453 $0
2010 6 $331,500 226 $53,467 147 $70,706 $0
2011 6 $2,843,000* 3,797 $44,165 3,454 39,207 $220,000
2012 2 $438 000** 468 $67 153 29 $42 928 $0
9
2012 2 $438,000 468 $67,153 29 $42,928 $0
2013 2 $278,000*** 1,007 $29,144 N/A N/A $0
Sub Total $11,342,500
Less
Repayments
$5,345,000
Total 29 $5,997,500 8,067 $45,386 5,735 $46,610 $5,345,000
*Includes $1,500,000 not yet paid to company
**Includes $418,000 not yet paid to company
***Includes $78,000 not yet paid to company