Special Taxing Districts
The Urban Redevelopment division coordinates with neighborhoods and businesses to establish special taxing districts (CIDs and NIDs) as a tool for economic development and neighborhood revitalization. For information about how to establish a new district, contact staff by calling 816-513-2852.
Community Improvement District (CID)
The creation of a CID allows private parties - property owners - to assess or tax themselves for improvements and services which benefit the community. The CID will establish a reliable mechanism whereby numerous and diverse private interests can act in unison. The CID could be governed by a Board comprising of owners, businesses and voters appointed by the City Council or by election, or by a not-for-profit agency if the District is funded solely through assessments. Within its boundary, the CID could provide assistance to or construct, install, repair, maintain and equip a broad range of public improvements and facilities, as well as undertaking security and promotional activities. Established Community Improvement Districts in Kansas City include:
More facts on CIDs:
- A petition of the majority of property owners is required to establish a CID. Significant decisions and limitations are made at the time the CID is created, such as:
- area of District
- maximum assessment or tax rates (and method of assessment)
- general description of improvements or service program (eligible uses of funds)
- duration of the District
- Control is retained by the affected community
- the Board, comprised of owners, businesses and voters (appointed by City Council or by area election as determined by petition), within the CID provides oversight
- the annual levy or assessment is set by Board
- the Board receives funds and manages the District’s program
- Flexibility of funding
- the CID may use either assessments or taxes, or both
- assessments may use any formula to allocate costs to properties in relation to the benefits received
- the CID allows for different levels of assessment in different areas of the district
Neighborhood Improvement District (NID)
NIDs are created by property owners in an area with defined limits and boundaries by vote or by petition in order to provide financing for public improvements. The City issues a special assessment against the real property within the NID to cover the cost of improvements. Eligible improvements for an NID include virtually any public improvement. An NID can be created for commercial or residential properties. Policies for the review and approval of NIDs have been adopted by the City Council and the Urban Redevelopmet division
coordinates the review of these projects. The following commercial Neighborhood Improvement Districts have been established in Kansas City:
- 47th & Penn NID
- 108th & Cookingham NID
- 909 Walnut NID
- Barry Towne NID
- Chouteau Crossing NID
- Plaza Colonnade NID
- Valencia Place Redevelopment NID
Special Business District (SBD)
Special Business Districts can be created to allow property owners to pay additional taxes or special assessments for the purpose of improving their neighborhood and businesses.
Procedure to Establish a Special Business District:
- One or more property owners within the proposed district must petition the Mayor and City Council to establish the district. This petition must be filed with the City Clerk.
- A Survey and Investigation is to be prepared by the staff after being authorized by the Council. This report includes six subjects:
- The nature of a suitable location for business district improvements.
- The approximate cost of acquiring and improving the land.
- The area to be included in the district.
- The percentage of the cost of acquisition, special services, and improvements in the business district which are to be assessed against the property within the district and that part of the cost, if any, to be paid by public funds.
- The need for and cost of special services.
- Cooperative promotional activities.
- This report is then submitted to the City Council as a Resolution to adopt the District.
- The report is then heard by the Finance Committee and a public hearing is held. Notice is mailed by the city to all affected persons.
- If passed, an ordinance establishes the district and the tax levy is prepared. This is sent to the Finance Committee for another public hearing.
- If passed, a Board of seven members is appointed by Resolution. Five members must own property within the district and two members must be business owners within the district.
- The Board is required to hold its own public hearing in regard to a proposed tax levy.
- The Board adopts a Resolution asking the Governing Body to hold an election for the district.
- The Council authorizes the election and the City Clerk conducts the election procedures.
- Westport SBD
- Union Hill SBD
Both of these SBDs are using the special tax revenues to maintain and operate decorative streetlights.
Transportation Development District (TDD)
TDDs are independent political subdivisions organized to levy taxes or assessments to pay for the construction of roads, parking facilities or other transportation related improvements, and to finance those improvements by issuing TDD bonds. Any property is eligible to be included in a TDD as long as the improvements constructed are transportation related.
- A petition is filed in circuit court by one or more property owners. ( Notice of the filing of the petition is given to MoDOT and local transportation authorities, such as the city. Following a hearing, if one is requested, the circuit court approves the creation of the district, the project which the district proposes to construct, and the funding mechanism with which the district proposes to pay for the project.
- To the extent taxes are involved in the funding mechanism for the district's project, an election is held. If there are registered voters living within the TDD, they participatae in the vote. If not, property owners within the TDD vote to approve the taxes.
- After the imposition of taxes or assessments to fund the project, MoDOT or a local transportation authority begins the final design.
- Upon completion of design, bonds are sold by the TDD and construction is undertaken pursuant to a construction contract entered by the TDD, or by the city or MoDOT according to a cooperative agreement with the TDD.
- The City Council of Kansas City participates in the TDD approval process by passing a resolution endorsing (or opposing) a project at the time of the circuit court review. Additional control over a project can be exercised through a cooperative agreement between the city and a TDD.
- 210 Highway TDD
- Jazz District TIF (approved with authority to construct parking using a TDD)
- Zona Rosa TDD