independence economic development council
A TIF project pays off early and well It seems that a lot of attention is given to economic development projects that either underperform or fail to meet expectations when they were originally conceived. That attention is heightened when incentive programs are put in place to support the project. When those failures occur, it is often the state legislature that gets the task of figuring out “what went wrong” and then attempting to adjust programs so it doesn’t happen again. In many cases, the problems aren’t a result of the programs but typically a number of factors that can impact projects that are beyond the control of government. One program that has gotten a fair amount of attention over the years is tax increment financing or what is
tom lesnak referred to more commonly as “TIF.” Currently, there are 16 open TIF project areas in Independence, and four that have been paid off and closed. The latest closed TIF project involved the redevelopment in the early 2000s of the Hy-Vee Plaza area at U.S. 40 and Noland Road. That project took an empty and deteriorating Kmart building and
brought it back to life with a new Hy-Vee grocery store and a Westlake Hardware store. Both helped meet an underserved need in the area and raised the tax base. For the past decade, new property and sales taxes being collected above previous levels before the improvements (the increment) have paid off the development costs involved with upgrading the property. What was projected to be up to a 23-year payoff was paid off 10 years early due to the enhanced economic activity that the project created. Now that the TIF is closed, new enhanced tax revenues are flowing to all the taxing jurisdictions, which is good for all of us and helps continue providing education for our children, high quality libraries,
parks and public safety just to name a few. As we move forward, we will need to continue to utilize the available programs to leverage the redevelopment of older areas of Independence. It has been shown now on several occasions that the outcome is worth the effort. Tom Lesnak is president of the Independence Economic Development Council. The Independence EDC is a nonprofit public/private partnership that provides economic development services within the city of Independence. For more information on its services, contact its office at 816252-5777 or go to the organization’s website at www.inedc.biz.
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Fall 2012 Eastern Jackson County Business Review