With the high level of Industrial Revenue Bonds and Community Improvement Districts approved in recent months, several residents have had questions as to exactly what these funding mechanisms are and do.
Assistant City Manager Tayler Wash deleved into those questions during the most recent Q&A segment on KVOE’s Talk of Emporia Monday. In quick summation, Wash explains both mechanisms, while separate avenues for funding major projects are both low-risk high reward options as they do not create any financial obligations for the city of Emporia.
Industrial Revenue Bonds (IRB) are traditionally tax-exempt bonds that finance specific projects aimed at expanding a community’s tax base. Community Improvement Districts (CIDs) place a specific sales tax, usually between 1-2 percent, on developments that are used to reimburse developer costs for infrastructure and utilities.
Wash says when it comes to IRBs specifically the argument can be made that it lowers local tax revenues due to tax exemptions it provides. However; Wash says it is quite the opposite as the majority of IRB-supported developments are located in areas generating low or no tax revenue.
Wash explains that while the city is the one who issues both CIDs and IRBs, regulations, requirements and laws for said mechanisms are not overseen or enforced locally.
The most recent example of a CID in Emporia is the Flint Hills Crossing development in West Emporia which is set to bring QuikTrip to the community. Other examples include the Emporia Pavillions and West Plaza developments.
Recent projects which will benefit from IRBs include the Emporia Gazette Development and the new 501 Lofts project according to Wash.
