UG finance staff tells commissioners star bonds and other incentives have generated net local revenue; leaders call for better reporting

Shelley Knievin, the Unified Government’s chief financial officer, delivered a detailed briefing on the UG’s major economic development tools — star bonds, tax increment financing (TIF), industrial revenue bonds (IRBs), transportation development districts (TDDs), community improvement districts (CIDs) and the Neighborhood Reinvestment Act rebate program.

Knievin said star bonds are a state-authorized, sales-tax-based financing tool (authorized by KSA 12‑17) intended for large tourism/entertainment projects. She told commissioners the UG currently has three active star-bond districts (Legends/Westside) and six active bonds across subareas. "We currently are paying from the local revenue sources that are pledged $5,200,000 a year towards all of those different bonds that are outstanding," Knievin said, adding that the same districts produce about $45.3 million in annual tax revenue to taxing jurisdictions, of which roughly $32.4 million goes to the UG. She summarized a combined net benefit figure and said that, on staff calculations, "for every $1, it has generated $7.75 in tax revenue," which staff framed as a strong local return on investment.

Commissioners used the briefing to press staff on the limits of local authority (for example, the state controls star-bond eligibility and district boundaries for state-level pledges) and on the differences between local pledge area and any larger state district that could be applied for a Chiefs stadium. Senator Haley and others asked whether expansions to a broader county-wide star bond district would be prudent; staff emphasized the local pledge is limited to roughly 265–270 acres and that state-level decisions lie outside commission control. Commissioners asked for more granular, recurring reporting on revenue flows, bond terminations and job metrics tied to IRBs.

Knievin also said IRBs have generated about $2.0 billion of documented private investment in the county across 49 active IRBs (47 with property-tax abatement) and that the UG negotiates pilots/payment-in-lieu terms so that companies still contribute to local services. She urged improved reporting on job creation and wage/benefit outcomes; commissioners supported adding compliance and reporting requirements to future development agreements. Staff and several commissioners urged regular public updates and a clearer, accessible packet/web posting of the underlying exhibits and cost‑benefit analyses.

"It's a story we just haven't told in terms of what the tools are, where we are using them, what are the revenues that are being generated," Knievin said, and commissioners responded that improved transparency and periodic tracking should be part of ongoing oversight.