Upcoming Naftzger Park legislative action

The redesign of Naftzger Park in downtown Wichita is not a done deal, at least not legally.

While the City of Wichita is engaging citizens and planning for the future of Naftzger Park, there is still another legislative step the city must take in order to fully proceed. In Kansas, use of tax increment financing requires at least two steps. The first step is that cities or counties establish the boundaries of the TIF district. After the TIF district is defined, cities then must approve one or more project plans that authorize the spending of TIF funds in specific ways. (The project plan is also called a redevelopment plan.) In Kansas, overlapping counties and school districts have an opportunity to veto the formation of the TIF district, but this rarely happens. Once the district is formed, cities and counties have no ability to object to TIF project plans. ¹

In the case of Naftzger Park, the TIF district (named Center City South) was formed some years ago, and there have been redevelopment plans adopted that cover portions of this rather large TIF district. Now a new redevelopment project area is proposed that includes Naftzger Park and some surrounding property. In the nearby map from the city, the Center City South TIF district is shown. The redevelopment project area under consideration is labeled “11.”

In order to pass a redevelopment plan into statute, Kansas law requires a public hearing and passage of the redevelopment plan by a two-thirds majority of the governing body. For the Wichita city council, that means five votes are needed to adopt the project plan and start spending money. ²

Documents from the city explain: “The next step in establishing the legal authority to use TIF is the adoption by the City Council of a redevelopment project plan, within the district, which provides more detailed information on the proposed project and how TIF would be used, and demonstrates how the projected increase in property tax revenue will amortize the costs financed with TIF.” ³

Just for emphasis, from the same document: “Once adopted, the City will be authorized to use TIF to finance eligible project costs.”

(The terminology may be confusing. Some documents use the term “project plan” and sometimes “redevelopment plan.” TIF districts are also sometimes referred to as “redevelopment districts.”)

On July 11, 2017 the Wichita city council set August 15 as the date for the public hearing. Presumably a vote on adoption of the redevelopment plan will be at the same meeting, although votes like this have been delayed. And, there’s no guarantee there will be five votes in favor of adopting the plan.

Since the redevelopment plan has not been adopted, you may be wondering how the city is going to use TIF funds to pay the architects. That’s a good question. It is the city’s declared intent to use TIF funding for work that is currently being done: “The park design is anticipated to be provided by Tax Increment Financing and is identified in the proposed 2018 CIP.” ⁴

Another consideration: The city is proceeding at full speed — “an aggressive timetable” is the quote from the city manager — on the plan to redevelop Naftzger Park. ⁵ Public sentiment seems to be that it is a “done deal.” It’s going to happen, people are resigned to say.

To his credit, the city manager is also quoted in the same Eagle article showing his understanding that the process is not complete: “If the process doesn’t allow us to do it, it doesn’t allow us to do it,”

But other city officials act as though the design of Naftzger Park is inevitable, that the TIF money is there waiting to be spent, and those funds will be lost if not spent on the park.

With attitudes like this, I wonder why we should bother holding a public hearing.

Following is an excerpt from the July 11, 2017 city council agenda packet:

The next step in establishing the legal authority to use TIF is the adoption by the City Council of a redevelopment project plan, within the district, which provides more detailed information on the proposed project and how TIF would be used, and demonstrates how the projected increase in property tax revenue will amortize the costs financed with TIF. …

In accordance with state law, a TIF Project Plan has been prepared in consultation with the Wichita-Sedgwick County Metropolitan Area Planning Commission, which has made a finding that the project is consistent with the Comprehensive Plan for development of the area. In order to adopt a TIF Project Plan, the City Council must first set a public hearing no less than 30 and no more than 70 days from adoption of the resolution setting the hearing. The date of August 15, 2017, at the regular City Council meeting is proposed for the public hearing on the Naftzger Park Project Plan.

If adopted by the City Council, the attached resolution setting the August 15, 2017 public hearing will be sent to the owners and occupants of all property located within the proposed Naftzger Park Project Area, by certified mail. The resolution will also be published in the Wichita Eagle and copies will be provided to the Board of County Commissioners and Board of Education and their appropriate staff.

After closing the public hearing on August 15, 2017, the City Council may adopt the TIF Project Plan by ordinance, by two-thirds majority vote. Once adopted, the City will be authorized to use TIF to finance eligible project costs.

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