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<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">Mr. Heckler, I just wanted to add that the City’s economic development policy relating to TIF- which is located on page 29 of the link below, does require a “but for” analysis
and a feasibility analysis. That section of the policy also outlines TIF goals and other matters. The city’s economic development policy was extensively reviewed and approved at the beginning of the year. All economic development incentives also require
performance agreements, which the City regular monitors for compliance and reports in the annual economic development reports. A link to those reports is also provided below. Please let me know if I can answer questions.
<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">Economic Development Policy:
<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="https://assets.lawrenceks.org/assets/ecodev/ed-policy-2017-01-15.pdf">https://assets.lawrenceks.org/assets/ecodev/ed-policy-2017-01-15.pdf</a><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt">Economic Development Annual Reports:
<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="https://lawrenceks.org/ed/">https://lawrenceks.org/ed/</a><o:p></o:p></span></font></p>
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<p class="MsoNormal"><b><font size="2" face="Calibri"><span style="font-size:11.0pt;font-weight:bold">Thanks, Diane<o:p></o:p></span></font></b></p>
<p class="MsoNormal"><b><font size="2" face="Calibri"><span style="font-size:11.0pt;font-weight:bold"><o:p> </o:p></span></font></b></p>
<p class="MsoNormal"><b><font size="2" face="Calibri"><span style="font-size:11.0pt;font-weight:bold"><img border="0" width="240" height="56" style="width:2.5in;height:.5833in" id="Picture_x0020_1" src="cid:image001.gif@01D370E6.9AF65420" alt="signature"></span></font></b><b><span style="font-weight:bold"><o:p></o:p></span></b></p>
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<p class="MsoNormal"><b><font size="2" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif;font-weight:bold">Diane Stoddard</span></font></b><font face="Arial"><span style="font-family:"Arial",sans-serif">, Assistant City Manager –
</span></font><a href="mailto:dstoddard@lawrenceks.org"><font color="blue" face="Arial"><span style="font-family:"Arial",sans-serif;color:blue">dstoddard@lawrenceks.org</span></font></a><font face="Arial"><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif">City Manager’s Office |
</span></font><a href="http://www.lawrenceks.org/"><font face="Arial"><span style="font-family:"Arial",sans-serif">City of Lawrence, KS</span></font></a><font face="Arial"><span style="font-family:"Arial",sans-serif"><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif">P.O Box 708, Lawrence, KS 66044<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Arial"><span style="font-size:11.0pt;font-family:"Arial",sans-serif">office (785) 832-3413| fax (785) 832-3405<o:p></o:p></span></font></p>
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<p class="MsoNormal"><b><font size="2" face="Calibri"><span style="font-size:11.0pt;font-weight:bold">From:</span></font></b> Electronic-lan [mailto:electronic-lan-bounces@lists.ku.edu]
<b><span style="font-weight:bold">On Behalf Of </span></b>Richard Heckler via Electronic-lan<br>
<b><span style="font-weight:bold">Sent:</span></b> Saturday, December 09, 2017 12:03 AM<br>
<b><span style="font-weight:bold">To:</span></b> Melinda <melin@sunflower.com>; LAN Email List <electronic-lan@lists.ku.edu>; electronic-lan@lists.ku.edu<br>
<b><span style="font-weight:bold">Subject:</span></b> Re: [Electronic-lan] CC Study Session Tuesday: Update on downtown grocery store<o:p></o:p></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black">Food for thought:<o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><em><i><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">TIF Accountability and outcomes</span></font></i></em><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">Many proponents of TIF argue that improvements made under the program “pay for themselves.”
That is, cities and towns assume that TIF will spur new development, increase property values, and create new tax revenue that would not have existed otherwise, which will be used to pay off the costs of the development.</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">This is a risky wager since it assumes that “but for” the TIF, no development would have occurred
in the TIF district and property values would have remained unchanged. In reality, it is impossible to know whether a project will successfully generate the anticipated tax increases. It is also difficult to determine whether property value increases that
do occur in TIF districts were exclusively the result of the TIF.</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">The “but for” provision in many TIF laws has already been weakened to allow TIF to be used
on almost any project. In most states, TIF was originally intended for use only in areas deemed “blighted” or “distressed” where investment would not otherwise occur. Many states have since loosened their TIF criteria to allow TIF to be used to develop non-blighted
and affluent neighborhoods (see Good Jobs First's report </span></font><a href="http://www.goodjobsfirst.org/sites/default/files/docs/pdf/straying.pdf"><em id="yui_3_16_0_ym19_1_1512799277599_4064"><i><font size="2" color="#bf2519" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#BF2519;text-decoration:none">Straying
from Good Intentions</span></font></i></em></a><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333"> on the weakening of TIF and enterprise zone requirements).</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">In the end, the “but for” provisions of state TIF laws often fall by the wayside, allowing
TIF to finance development that would happen anyway. This results in a loss of revenue that could have gone to pay for schools and local services. Given that the diversion of taxes continues until the TIF district expires, which is typically 7 to 30 years,
the long-term fiscal impact can be quite significant.</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#333333" face="Arial"><span style="font-size:10.5pt;font-family:"Arial",sans-serif;color:#333333">. Every TIF agreement should also contain a clawback clause requiring developers to pay back
all or part of the subsidy if they fail to meet their job, wage, and other responsibilities.</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="https://www.goodjobsfirst.org/accountable-development/tax-increment-financing"><font size="2" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif">https://www.goodjobsfirst.org/accountable-development/tax-increment-financing</span></font></a></span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"> <o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="#393203" face="Georgia"><span style="font-size:10.0pt;font-family:"Georgia",serif;color:#393203;background:#F6F6F6">“Wait a minute! I’m paying taxes so that the Walton family, the richest
family in America, can be richer? I’m paying taxes so the Cabelas out in Nebraska or Johnny Morris who owns Bass Pro can get richer? That’s what my taxes are going for? That I am forced to pay?” People don’t know about it. That’s the only reason this
goes on everywhere.</span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="http://prairieweather.typepad.com/the_scribe/2008/01/free-lunch-davi.html"><font size="2" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif">http://prairieweather.typepad.com/the_scribe/2008/01/free-lunch-davi.html</span></font></a></span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"> <o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="4" color="#191f24" face="Helvetica Neue"><span style="font-size:13.0pt;font-family:"Helvetica Neue",serif;color:#191F24;letter-spacing:-.15pt;background:white">Well, what is tax increment financing?
I’ll tell you what it is. You go to the store with your goods, you pay for it at Wal-Mart, and there’s a very good chance that that store has made a deal with the government that the sales taxes you are required to pay, that government requires you to pay,
never go to the government. Instead, those sales taxes are used to pay the cost of the store. And typically in those deals, the project is tax exempt, just like a church. </span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"> <o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="https://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans"><font size="2" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif">https://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans</span></font></a></span></font><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Helvetica Neue"><span style="font-size:10.0pt;font-family:"Helvetica Neue",serif;color:black"> <o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" color="black" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">On Friday, December 8, 2017 6:27 PM, Melinda via Electronic-lan <</span></font><a href="mailto:electronic-lan@lists.ku.edu"><font size="2" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">electronic-lan@lists.ku.edu</span></font></a><font size="2" color="black" face="Arial"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black">>
wrote:</span></font><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="2" face="Calibri"><span style="font-size:11.0pt"><a href="https://assets.lawrenceks.org/assets/agendas/cc/2017/12-12-17/grocery-store-project-staff-memo.html" target="_blank"><font size="4"><span style="font-size:13.5pt">https://assets.lawrenceks.org/assets/agendas/cc/2017/12-12-17/grocery-store-project-staff-memo.html</span></font></a></span></font><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="4" color="black" face="Calibri"><span style="font-size:13.5pt;color:black">After reading this, I'm pretty sure I won't live to see this happen. If it ever does.</span></font><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="4" color="black" face="Calibri"><span style="font-size:13.5pt;color:black">...Melin</span></font><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black"><o:p></o:p></span></font></p>
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<p class="MsoNormal" style="background:white"><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black">--
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<i><span style="font-style:italic">"The first lesson to be learned by every citizen who desires to bring about a higher life in our American cities is that he must take an active part in managing the affairs of his own city."<br>
</span></i>--Theodore Roosevelt, The Outlook Magazine, Dec 21, 1895<o:p></o:p></span></font></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt;background:white"><font size="3" color="black" face="Helvetica Neue"><span style="font-size:12.0pt;font-family:"Helvetica Neue",serif;color:black">_______________________________________________<br>
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