TIF Expertise: Common Pitfalls for Kansas City Council Members to Avoid

Kansas requires a two-thirds supermajority to approve a TIF project plan — reflecting the significance of the decision. Before casting that vote, here are the common pitfalls council members should watch for.

Pitfall 1: Voting Without Understanding the Structure

TIF is complex, and the Taxpayer Agreement Act adds new instruments. Before voting, make sure you understand how the increment is calculated, what the taxpayer agreement guarantees, how the conduit bond structure insulates the city, and what the feasibility study demonstrates. Ask for a briefing if the materials are unclear.

Pitfall 2: Believing TIF Hurts Schools

In Kansas, the 20 mills for school districts and 1.5 mills for the state are explicitly protected from TIF capture. Base year taxes continue flowing to all jurisdictions. TIF captures only the new increment — revenue that would not exist without the project. If a constituent claims TIF takes money from schools, this is the fact that corrects the misconception.

Pitfall 3: Not Reviewing the Feasibility Study

The feasibility study is your primary analytical tool. It must demonstrate the project would not proceed without TIF, project the increment, estimate costs, and include a cost-benefit analysis. If the study is weak or the but-for case is unconvincing, that is a red flag — regardless of how attractive the project appears.

Pitfall 4: Ignoring Constituent Communication

Public hearings are required before both the redevelopment district and project plan votes. Use these as opportunities to educate, not just comply. Prepare talking points that address the most common concerns: no new taxes, school funding protected, developer bears the risk, city carries no debt.

Pitfall 5: No Ongoing Oversight

After approval, ensure the city monitors construction progress, increment performance, and compliance with the redevelopment agreement. Your oversight role continues after the vote.

Hageman Capital provides free TIF education to Kansas council members. Request a meeting with Whitney Peterson to get clarity before your next TIF vote.