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Posted May 27, 2008

Tax Increment Financing (TIF)

The City has been presented with its first tax increment financing project. The project submitted by Kirk Short of Wichita is the development of a retail center at the intersection of Highway 77/I70 and Goldenbelt Boulevard. He envisions several restaurants, service businesses such as hair and nail salons, banking, dry cleaners, etc. If the schedule proceeds as planned, the project would begin in late Fall this year and be ready for tenants about 18 months later.

Tax increment financing is a tool that has been available to cities for years. The process is regulated by the State of Kansas. The City must create a district that meets criteria established by the State. The County and the School District have the opportunity to veto the project. A formal hearing will be held in July to consider the benefits of the creation of the district. The district creation allows the capture of property tax and sales tax to retire bonds issued to pay the cost of infrastructure improvements. Mr. Short has asked for the use of property tax dollars only. The City has requested that the district include the intersection of Goldenbelt Highway/Lacy Drive and Highway 77 so that the cost of having signalization installed at that intersection can be included in the infrastructure being built under the TIF plan.

There will be amply opportunity for the public to comment on this project. There will be two public hearings on this project over the next five months. If you have questions feel free to contact the City Manager’s office or your City Commissioner.

Junction City continues to grow and expand.

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