Tax Incentives

The Wichita City Council is expected to vote today on whether to approve tax incentives for a new downtown hotel. Developers want $7.5 million dollars in public funding. The proposed project is $21 million and would go in at Douglas and Broadway.   It would be built inside an old bank from the 1920's that once housed the famed Dockum Drug store. In return for the hotel, developers want the city to spend the $7.5 million on land acquisition, a parking garage and an urban park.  

A group of Wichita residents say they're fed up with what they call a misuse of their property taxes. They're tired of the city giving their tax dollars to developers. So an effort is underway to let the public decide whether the incentives are needed and deserved. "We have to put a stop to this insanity, at least what I consider insanity with our taxes," said Donald Fender Americans for Prosperity started a petition drive Friday. The group is upset with the city council's decision to provide millions of dollars in tax incentives to build a boutique hotel downtown.

It is a vacant piece of land in South Wichita, but developers want to turn it into one million square feet of new retail opportunities if they can get tax help from city leaders. Area business owners see the lot near 47th Street South and I-135 as a prime location for new business growth. "We've been jealous of what has happened in other parts of the city," said Dale Carter, President of South Wichita Business Association. "To be honest we've had some infrastructure work that needed to get done, and we were thrilled when we got the roadways fixed.

Wichita Mayor Carl Brewer says losing Boeing is like losing a family member. The more than 80 year Wichita tradition is leaving. Boeing says it can no longer afford to operate its Wichita facility. That's the main reason it gave for choosing to shut down the defense operations in Wichita by the end of 2013. Boeing says it started studying the facilities future in the middle of 2011. The results were finished in November and Boeing made the decision to leave December 30. Read Boeing Statement Vice president and general manager for BDS' Maintenance, Modifications & Upgrades division Mark Bass said that over the last five years Wichita projects have been winding down.  He says Wichita does not have enough business on the horizon to maintain the facility.  "In this time of defense budget reductions, as well as shifting customer priorities, Boeing has decided to close its operations in Wichita to reduce costs, increase efficiencies, and drive competitiveness," said Bass.

If you're looking to live in a small town surrounding Wichita, there are several incentives being offered.  Rose Hill is the latest town to offer perks for someone who buys a home. The Rose Hill city council approved a five-year, 95% tax abatement for new home construction.  If you buy an existing model of spec home, you are eligible for a tax grant that lasts 10 years.  Both incentives are available through the end of 2012. Rock bottom taxes, tax abatement or tax incentives call it what you want more and more small towns around Wichita hope it will entice people to move or build new homes.

Development of a boutique hotel in downtown Wichita will move forward. The Wichita City Council voted in favor of $7.5 million in tax incentives for the project. It passed five to one, with council member Michael O'Donnell voting against it.  Mayor Carl Brewer was absent. The vote came after almost three hours of discussion and comments from 36 members of the public.  Of those public comments, 13 people spoke in support of the project while the rest were against it.  Those against say it's not the project they're against, it's the use of tax dollars.  The project include six different tax incentives.  Developers plan to invest $21 million to renovate the former bank building at Douglas and Broadway.  The building, constructed in the 1920's once housed the famed Dockum Drug Store.

The Wichita City Council moves forward with plans to provide tax incentives for the Southfork Development.  Developers plan to turn the lot near 47th Street South and I-135 into one million square feet of new retail opportunities. Developers asked for tax incentives to help offset costs of developing the land. On Tuesday, council members took the first step by turning the area into a tax increment finance district, or TIF district. A TIF district allows developers to use property tax revenue generated from the new project to help pay for land improvements.

Wichitans who live in the Planeview neighborhood on the southeast part of town welcome a new grocery store Wednesday. The Save-A-Lot Store at George Washington boulevard and Pawnee opened to customers after a ribbon cutting ceremony in the morning. Until now, residents didn't have many options in the area for a discount grocery store. It also employs 25 people, which is also a help to the community You may remember a similar store was planned for the Planeview area, but those plans were scrapped when the developer didn't get tax incentives.

It's not the project, it's the process. That's the complaint many had at Wichita city hall Tuesday.  The city council approved a letter of intent on a new hotel development, before holding a public hearing on the tax incentives. For more than a decade, the 14 story building at Douglas and Broadway has sat vacant.  That's likely about to change.  "I see this as a significant project for downtown," said Wichita vice mayor Lavonta Williams. The proposed project is a $21 million boutique style hotel.  It's an old bank from the 1920's that once housed the famed Dockum Drug Store.

An effort is underway to overturn a decision made by the Wichita City Council.  Tuesday the council approved several tax incentives to build a hotel inside an old building at Douglas and Broadway.   They voiced their opinions. "Look we need the tax money, the city needs the tax money," Lynda Tyler told the Wichita City Council Tuesday. But when the city council approved millions of dollars in incentives for the Ambassador Hotel, opponents looked for another option. "We're hoping the city does have an election and voters will be able to say whether they agree with these subsidies," said Susan Estes.

After months of robo-calls, mailers and yard signs on both sides of the issue, Wichita voters voted no to giving the Ambassador Hotel a majority of the guest tax revenue it generates. Here's a look at the results: No:  61% or 16,198 voters Yes: 38% or 10,107 voters Usually guest tax revenue generated by hotels goes directly to the Convention and Visitors Bureau.  However, the incentive package approved by the Wichita City Council council would have allowed the developer to keep 75% of the guest tax to put back into the hotel.

With a special election just days away, one member of a hotel tax "Vote No" campaign wonders why his name is listed on "Vote Yes" materials. The Ambassador Hotel is currently under renovation at the corner of Broadway and First Street in downtown Wichita. Originally, the city council voted to allow developers to keep a portion of its guest tax, something every hotel in the city charges, as an incentive to do business here. That decision was later questioned - sparking Tuesday's special election.

Wichita Mayor Carl Brewer says losing Boeing is like losing a family member. The more than 80 year Wichita tradition is leaving. Boeing says it can no longer afford to operate its Wichita facility. That's the main reason it gave for choosing to shut down the defense operations in Wichita by the end of 2013. Boeing says it started studying the facilities future in the middle of 2011. The results were finished in November and Boeing made the decision to leave December 30. Read Boeing Statement Vice president and general manager for BDS' Maintenance, Modifications & Upgrades division Mark Bass said that over the last five years Wichita projects have been winding down.  He says Wichita does not have enough business on the horizon to maintain the facility.  "In this time of defense budget reductions, as well as shifting customer priorities, Boeing has decided to close its operations in Wichita to reduce costs, increase efficiencies, and drive competitiveness," said Bass.

The Wichita City Council moves forward with plans to provide tax incentives for the Southfork Development.  Developers plan to turn the lot near 47th Street South and I-135 into one million square feet of new retail opportunities. Developers asked for tax incentives to help offset costs of developing the land. On Tuesday, council members took the first step by turning the area into a tax increment finance district, or TIF district. A TIF district allows developers to use property tax revenue generated from the new project to help pay for land improvements.

It is a vacant piece of land in South Wichita, but developers want to turn it into one million square feet of new retail opportunities if they can get tax help from city leaders. Area business owners see the lot near 47th Street South and I-135 as a prime location for new business growth. "We've been jealous of what has happened in other parts of the city," said Dale Carter, President of South Wichita Business Association. "To be honest we've had some infrastructure work that needed to get done, and we were thrilled when we got the roadways fixed.

Wichitans who live in the Planeview neighborhood on the southeast part of town welcome a new grocery store Wednesday. The Save-A-Lot Store at George Washington boulevard and Pawnee opened to customers after a ribbon cutting ceremony in the morning. Until now, residents didn't have many options in the area for a discount grocery store. It also employs 25 people, which is also a help to the community You may remember a similar store was planned for the Planeview area, but those plans were scrapped when the developer didn't get tax incentives.

If you're looking to live in a small town surrounding Wichita, there are several incentives being offered.  Rose Hill is the latest town to offer perks for someone who buys a home. The Rose Hill city council approved a five-year, 95% tax abatement for new home construction.  If you buy an existing model of spec home, you are eligible for a tax grant that lasts 10 years.  Both incentives are available through the end of 2012. Rock bottom taxes, tax abatement or tax incentives call it what you want more and more small towns around Wichita hope it will entice people to move or build new homes.

A group of Wichita residents say they're fed up with what they call a misuse of their property taxes. They're tired of the city giving their tax dollars to developers. So an effort is underway to let the public decide whether the incentives are needed and deserved. "We have to put a stop to this insanity, at least what I consider insanity with our taxes," said Donald Fender Americans for Prosperity started a petition drive Friday. The group is upset with the city council's decision to provide millions of dollars in tax incentives to build a boutique hotel downtown.

An effort is underway to overturn a decision made by the Wichita City Council.  Tuesday the council approved several tax incentives to build a hotel inside an old building at Douglas and Broadway.   They voiced their opinions. "Look we need the tax money, the city needs the tax money," Lynda Tyler told the Wichita City Council Tuesday. But when the city council approved millions of dollars in incentives for the Ambassador Hotel, opponents looked for another option. "We're hoping the city does have an election and voters will be able to say whether they agree with these subsidies," said Susan Estes.