Title
RESOLUTIONS REGARDING THE NORTH GATEWAY REDEVELOPMENT DISTRICT IN DERBY.
Presented by: Chris Chronis, Chief Financial Officer.
RECOMMENDED ACTION: Adopt the resolutions.
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Tax Increment Financing (TIF) is a financing tool that allows cities to fund infrastructure improvements, land acquisition and some other public investments. The creation of TIF districts is governed by KSA 12-1770 et seq. The use of tax increment financing is presumed to be necessary to the development project.
When employing tax increment financing, a city government outlines a contiguous geographic area within which the public funds will be spent. This is the TIF district. The public funds are generated by "freezing" the tax base within the area in a given year. This is known as the base year and all taxes that are generated on the base year assessed values continue to be distributed to the tax districts within which the TIF district sits. Once the district experiences development, and subsequent growth in assessed value, the property taxes generated from this incremental value are distributed into a fund to cover the public investment.
The City of Derby is considering the creation of a Tax Increment Financing District, known as the Derby North Gateway TIF District. The purpose of the TIF District is to fund a public investment of $2,050,000 for road, drainage and landscaping improvements to improve traffic safety, enhance access to the area and improve the appearance of an entry to the community.
The proposed TIF District is located at the southeast corner of K-15 and East Patriot Avenue in Derby, Kansas. It is anticipated that the project plan will consist of a single project area with the same boundaries. If a TIF District is established, the incremental revenues are to be used specifically to address traffic safety concerns and improve access by realigning Nelson Drive. The current alignment of the intersection has approaches to the north and south that are offs...
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