Points to Remember on the Downtown Redevelopment Project

The Downtown Project has a current estimated cost of $194 million.

Dial Realty is set to invest $87 million in construction of all the retail, restaurants and residential units within the North and South Project Areas.

No public tax dollars will assist construction of any private business or residential development.

Tax Increment Financing (TIF) is estimated to contribute $25 million towards land assembly, public infrastructure within the project areas such as roads, sidewalks, lighting, water lines, sewer, stormwater, etc. TIF dollars are generated exclusively in the North and South Project areas. TIF includes the increase in property taxes and City sales tax generated from the new development. The City, County and School District continue to receive the "base" amount established in 2005, when the TIF district was created. Anything generated above and beyond this "base" is pledged towards the land acquisition and public infrastructure necessary to facilitate the North and South project areas.

There are two other "public" sources included in the Downtown project. The State of Kansas has dedicated their 5.3% in State sales tax generated within the North and South Project areas. The State has agreed to invest $50 million in the South Project area, specifically in the Flint Hills Discovery Center construction, and the South Project area land acquisition and public infrastructure.

The City will also implement Transportation Development Districts (TDD) that will generate an additional 1/2 cent sales tax on top of the total sales tax rate to help assist with the public infrastructure improvements. In total the TDD will generate another $7 million to the project. A flowchart of sources and uses is available for your review.

The City of Manhattan is scheduled to invest an additional $25 million - or roughly 13% of the total project - towards other public improvements in both the North and South project areas. Projects significant to the benefit to the community have been identified for this investment. These include 4th Street construction- north and south, opening up Leavenworth Street at 3rd Street (connection to the Mall), creating an intersection at 3rd Street and Pierre Street, purchasing the furniture, fixtures, exhibits and equipment for the Discovery Center, financing the construction of the Conference Center, and a portion of the 400-stall parking garage. It is also envisioned in the event excess property and sales tax are generated within the North and South project areas, the City would be reimbursed for these expenses and financed by the incremental dollars generated in the project.