TIF Expertise: Common Pitfalls for Kansas Mayors to Avoid

Kansas’s Taxpayer Agreement Act gives mayors a powerful TIF framework — but the details matter. Here are the common pitfalls Hageman Capital sees Kansas mayors encounter, and how to avoid them.

Pitfall 1: Approving TIF Without a Genuine “But-For” Justification

Kansas law requires a feasibility study demonstrating the project would not proceed without TIF. This is not a formality — the feasibility study is a statutory requirement reviewed by the governing body and available to the public. If the project would have happened anyway, you are giving away future increment unnecessarily. Insist on a genuine funding gap analysis before supporting TIF for any project.

Pitfall 2: Not Understanding Eligible Area Requirements

Kansas TIF can only be used in designated eligible areas — blighted areas, conservation areas, buildings 65+ years old, and several specialized categories. If the proposed project area does not meet these criteria, the entire TIF structure fails. Verify the eligible area designation early, before significant time and resources are invested in plan development.

Pitfall 3: Overlooking the Two-Thirds Supermajority Requirement

Kansas requires a two-thirds supermajority to adopt a redevelopment project plan — a higher threshold than most incentive approvals. This means you need broader council support than a simple majority. Build consensus early by briefing council members before the public hearing and ensuring they understand the developer-backed structure, the taxpayer agreement protections, and the community benefits.

Pitfall 4: Poor Communication About School District Revenue

Constituents often worry that TIF diverts money from schools. In Kansas, the 20 mills for school districts are explicitly protected from TIF capture. Lead with this fact in every public communication. The base year taxes continue flowing to all jurisdictions, and school funding is never reduced by TIF.

Pitfall 5: Going It Alone

The Taxpayer Agreement Act is new, and its interaction with existing TIF law adds complexity. Hageman Capital provides TIF structuring expertise to Kansas mayors at no cost. Request a meeting with Whitney Peterson, our Director – Government Relations, and make sure your city’s next TIF project starts on the right foundation.