Since the KFC Yum! Center has existed, there has been a Tax Increment Financing provision, or a TIF. This TIF allows state taxing bodies to work together to invest in an area's development or redevelopment in exchange for economic growth.
This TIF area extends to 2 miles east, south and west of the arena. That means there isn't a lot of TIF left over for new businesses that want to build within that area.
So if we have a parking lot or dilapidated building that isn't contributing to the TIF, the incentive to build on that property is reduced if they don't get a TIF of their own.
Mayor Greenberg met with Republican lawmakers in Frankfort and proposed a bill that would allow selected carveouts of the arena state TIF district to other projects seeking state sales and property tax incentives for their developments.
Supporters view this as a win-win for two reasons:
First, TIFs are reserved for blighted land — property that's not generating much, if any, tax revenue. A developer wanting to put a significant hotel or retail project there would be able to get a portion of property and sales tax returned to it, along with any other city or state incentives now available. Second, the arena also would get a share — 10% of the new tax revenue.
The arena authority's perspective is that they'd be allowing carveouts of the TIF that aren't currently benefiting them while supporting development that will help the city and create more spending in the area. That additional money would help the arena and the city.
I view it as a good thing if it encourages downtown development, makes the area more interesting and helps the arena. Would you support this carveout TIF or not? Call us with your thoughts.
I'm Bill Lamb, and that's my Point of View.
