Under the Taxpayer Agreement Act, the developer’s payment obligation is enforceable with the same priority as delinquent real estate taxes — the strongest collection remedy available under Kansas law. Before entering a taxpayer agreement, the city must obtain written consent from each holder of an existing mortgage confirming the agreement does not constitute a default. Conduit bonds issued under the Act are payable solely from pledged security and do not constitute a general obligation of the city or state. Combined with the existing special obligation bond framework under KSA 12-1774(a) — which allows pledging ad valorem increment, local sales tax, franchise fees, and redevelopment agreement payments — financial advisors now have a layered security structure that insulates the municipality while providing lenders with strong repayment certainty.

Kansas TIF captures ad valorem increment above the base year assessed valuation, with 20 mills for school districts and 1.5 mills for the state excluded from capture. Revenue sources can include local sales tax and franchise fees in addition to property tax increment. Your role is to model the projected increment against proposed debt service, evaluate the developer’s financial capacity, ensure the feasibility study demonstrates the but-for requirement, and confirm the bond terms — interest rate, maturity up to 20 years, coverage ratio, and default provisions — are sound. The taxpayer agreement provides a contractual backstop that traditional special obligation bonds lacked, giving you a more defensible recommendation to bring to the governing body. The two-thirds supermajority requirement for project plan adoption reflects the significance of that recommendation.