(a)   The City of Pretty Prairie, Kansas, desires to grow its local economy and encourage conditions that improve the quality of life of its citizens. Therefore, the city will encourage the use of economic development programs and incentives by participating in and providing support to those interested in participating in economic development programs and incentives.

(b)   Economic Development. Creating conditions for economic growth and benefit, that improve the quality of life of the citizens of the city of Pretty Prairie by expanding the capacity of individuals, businesses, and organizations to maximize the use of their talents and skills to support innovation, lower transaction costs, and better produce and trade goods and services.

(c)   Authority. Kansas law provides a number of ways in which a city can assist in the facilitation of Economic Development. Kansas statute sets out multiple tools as dictated by that statute, which can assist the city or a private individual in Economic Development activities. Cities in Kansas are also authorized through “Home Rule Authority” to provide incentives outside of statutory authority that have been deemed lawful.

(Ord. 363B)

The City shall consider participation in a number of statutorily authorized incentive programs. The city is not confined to the following list; however, these programs and incentives are commonly used and the city shall consider their use:

(a)   Tax Incremental Financing (TIF). A real estate development tool applicable to industrial, commercial, and intermodal transportation areas and residential projects. This form of financing uses increases in real estate and local sales tax revenues to retire the bonds sold to finance eligible redevelopment project costs or to reimburse the developer on a pay-as-you-go basis. K.S.A. 12-1770 et. seq.

(b)   Special Benefit District (SBD). A tool by which the city can issue general obligation bonds for the construction of public improvements and then assess the cost of the improvements to properties that benefit from the improvement. These bonds are retired through the payment of special assessments paid by the benefiting properties. K.S.A. 12-6a02 et. seq.

(c)   Neighborhood Revitalization Area. (NRA). As defined in K.S.A. 12-17,115(c)1-3 et. seq.

(d)   Downtown Redevelopment Area (DRA). An area designated by the Secretary of Commerce under the Downtown Redevelopment Act (K.S.A. 12-17,121, et seq.), to identify real property that is eligible to receive tax benefits as provided in K.SA. 12-17,124, et. seq.

(e)   Community Improvement District (CID). A designated area where property owners petition the city to impose additional sales tax within a designated area to fund specific improvements and services within that area, that promotes Economic Development and the public benefit as described in K.S.A. 12-6a25 et seq.

(f)    Transportation Development District (TDD). A special taxing district created after a petition from all landowners in a specified area which requests the city to levy special assessments or impose a sales tax of up to 1% on goods and services sold within the area. All revenue generated by the assessments of sales tax must pay or reimburse the costs of transportation infrastructure improvements in and around new development within the area. K.S.A. 12-17,145.

(g)   Constitutional Tax Abatements (CTA). Pursuant to Article 11, Section 13 of the Kansas Constitution, cities may for a period of 10 years or less, exempt any portion or all ad valorum taxes on (1) All buildings, together with the land upon which such buildings are located, and all tangible personal property associated therewith used exclusively by a business for the purpose of: (A) Manufacturing articles of commerce; (B) conducting research and development; or (C) storing goods or commodities which are sold or traded in interstate commerce, which commences operations after the date on which this amendment is approved by the electors of this state; or (2) all buildings, or added improvements to buildings constructed after the date on which this amendment is approved by the electors of this state, together with the land upon which such buildings or added improvements are located, and all tangible personal property purchased after such date and associated therewith, used exclusively for the purpose of: (A) Manufacturing articles of commerce; (B) conducting research and development; or (C) storing goods or commodities which are sold or traded in interstate commerce, which is necessary to facilitate the expansion of any such existing business if, as a result of such expansion, new employment is created.

(h)   Industrial Revenue Bonds (IRB). Revenue Bonds issued by cities for the purpose of paying the costs of purchasing, acquiring, constructing, or equipping facilities that fall into the following categories: agricultural, commercial, hospital, industrial, natural resources, recreational development, or manufacturing. K.S.A. 12-1740, et seq.

(Ord. 363B0

The city shall consider participation in a number of programs and incentives authorized by Home Rule or other authority, not specifically authorized by statute. The city is not confined to the following list; however, these programs and incentives are commonly used and the city shall consider their use:

(a)   Economic Development Grants. Assistance provided by government and private entities for the purpose of Economic Development.

(b)   Property Tax Rebates. Reimbursement by the city, of all or some of the city’s portion of property taxes for the purpose of Economic Development.

(c)   Fee Reduction. The reduction, waiver, temporary suspension, or adjustment of particular fees imposed by the city for the purpose of Economic Development.

(d)   Excise Tax. The reduction, waiver, temporary suspension, or adjustment of the excise tax within a residential development for the purpose of Economic Development.

(e)   Utility Rates or Charges. The reduction, waiver, temporary suspension, or adjustment of utility rates and fees for the purpose of Economic Development.

(Ord. 363B)

The following criteria will be considered by the City Council when making a determination as to whether it will participate in any Economic Development Program of Incentive:

(a)   Community Financial Impact. Programs and incentives that substantially affect the total financial well-being of the city of Pretty Prairie shall be given special consideration.

(b)   Cost of Participation. Some programs and incentives have substantial costs associated with participation. Costs such as matching funds, administrative fees, legal fees, required studies, and city employee time may be required. These costs shall be considered against the potential for an increase in the quality of life and financial condition of the community.

(c)   Administration and Restriction. Some programs and incentives require long-term administration and encumber the city with use restrictions on funds or benefits granted to the recipients. Less administration and restriction are preferred.

(d)   Employment. Programs and incentives that create jobs that can be filled by the local population or encourage population growth shall be given special consideration.

(e)   Housing. Programs and incentives that allow for the development of appropriate housing shall be given special consideration. Housing programs and incentives that broaden available housing options instead of programs and incentives that benefit a single household are preferred.

(f)    Broad Public Benefit. Programs and incentives that provide benefits to a larger percentage of the population of the city of Pretty Prairie shall be given greater consideration than those that provide benefits to a smaller portion of the population.

(g)   Community Participation and Involvement. Programs and incentives that have been encouraged or requested by the residents of the city of Pretty Prairie shall be given special consideration.

(h)   Likelihood of Benefit. Participation or acceptance for or into economic development programs and incentives is not guaranteed. The city shall consider acceptance and success rates of applications and requests for any program or incentive.

(i)    Legal Certainty. Economic development programs and incentives may be challenged as legally feasible based on a number of factors. The city shall consider the possible legal challenges and controversies that surround any program or incentive.

(Ord. 363B)

(a)   Public Meeting Disclosure. Any serious consideration of, or public request for participation or support of, an economic development program or incentive shall be disclosed in a public meeting. The City Council shall only disclose basic and articulable facts known at the time of disclosure.

(b)   Review by City Attorney. The City Attorney shall review all factors surrounding the potential participation or support of an economic development program or incentive, and shall advise the City Council of pertinent legal issues and considerations.

(c)   Formal Development. The City Council shall assign tasks and set deadlines for the development of a formal plan of participation or support in an economic development program or incentive.

(d)   Development of Documents. All agreements, forms or other documents shall be generated or executed for review by the City Council.

(e)   Public Presentation. As allowed by law, the City Council shall present to the public any finalized plan to participate in an economic development program or incentive.

(f)    Formal Announcement and Update. The City Council shall inform the public of any finalized participation in an economic development program or incentive. The council shall inform the public of any pertinent updates to the city’s participation in any program or incentive. City council members shall be given regular updates by those administering or monitoring a programs or incentive to allow for appropriate public disclosure and discourse.

(g)   KORA and KOMA. Nothing in this section shall be construed as negating any responsibility of the city in following the requirements of the Kansas Open Records Act or Kansas Open Meetings Act. Said procedures shall be interpreted as being followed within the constraints of these Acts.

(Ord. 363B)