The city will work to add another tool to raise money for community improvements.
The Manhattan City Commission provided consensus Tuesday for administrators to create a community improvement district policy.
The state approved the Community Improvement District (CID) Act in 2009, allowing a district to establish a new revenue source to finance public or private real estate development within a city or county.
A petition by owners within the district could generate revenue from special assessments and/or a district-only sales tax up to 2 percent.
Jared Wasinger, assistant to the city manager, said administrators wanted to introduce the commission to the tool.
“We wanted to bring forth another economic development tool that’s available in the state that other cities in Kansas are using,” he said.
Other cities allowing CIDs include Lawrence, Salina, Olathe, Topeka, Wichita and Hays.
It’s similar to a transportation development district (TDD), which can only be used for public transportation infrastructure improvements in and around a district.
A TDD half-cent sales tax is in place at the Scenic Crossing development near the Anderson and Scenic Drive roundabout to help with the West Anderson improvement project debt payment.
A CID would have a more broad use than a TDD and could generate more revenue since the maximum sales tax for a TDD is 1 percent.
Mayor Linda Morse said she supports moving forward with the developing the concept for Manhattan.
“I appreciate the research you’ve done with the other Kansas cities,” she said.
Lyle Butler, president and CEO of the Manhattan Area Chamber of Commerce, said he appreciated the commission’s support of the concept.
“The state has taken away a lot of economic development incentives that we in Manhattan used to use,” he said. “It’s more important than ever to have many tools that we use responsibly in our community.”
The discussion didn’t involve a draft. City administrators would craft a policy and present it to the commission for discussion at a later meeting.