Brief(1)
H.B. 2631, as amended, relates to a contemplated auto race track facility. The bill would authorize the unified government of Wyandotte County/Kansas City, Kansas to utilize 30-year special obligation bonds to finance an auto race track facility rather than the 20-year bonds authorized under current law. All of the payments in lieu of taxes made by the track would go toward the TIF bonds, financed from payments in lieu of property taxes, rather than only the increment, as under current law. However, STAR bonds, paid from sales and other excise taxes, could be issued for 30 years only if the Governor makes a finding that the longer term is necessary for the economic feasibility of the track's funding. Further development of the major tourism area would be limited to a 400-acre parcel described in the bill and would be eligible for 20-year STAR bonds, but not for TIF bonds, as under current law.
Qualified competitive bidding would be required for the underwriting services for the bonds.
"Race track facility" is defined to include grandstands, suites and viewing areas, concessions and souvenir facilities, catering facilities, visitor and retail centers, signage, and temporary hospitality facilities, but would exclude hotels, motels, restaurants, and retail facilities not included above.
Owners of property condemned for the track would receive an additional award equal to 25 percent of the compensation or damage amount otherwise determined.
In condemnation proceedings for redevelopment projects other than for the auto race track, a city would be required to offer at least the highest appraised valuation determined for property tax purposes within the last three years by the county appraiser, unless the property had been damaged or destroyed by a catastrophic event. The minimum payment for relocation would be $500.
The bill would be effective upon publication in the Kansas Register.
Background
This bill was requested on behalf of the Unified Government of Wyandotte County/Kansas City, Kansas.
The bill was amended by the House Committee on Tourism to clarify that the provisions of the bill related to an auto race track facility and to define that term, and to make the bill effective upon publication in the Kansas Register.
The bill was amended by the House Committee on Taxation to dedicate excess sales tax revenue to the early retirement of the TIF bonds, to require a special finding of the Governor for the authority to use 30-year STAR bonds and to limit those bonds to the financing of the race track facility, to require competitive bidding for the bond underwriting, to require the additional 25 percent award for condemnations for the track, and to require an offer of the highest property tax appraisal in the last three years and moving expenses of at least $500 in condemnations other than for the track.
The bill was amended by the House Committee of the Whole to restore authority for 30-year TIF bonds for the track, inadvertently removed by the House Committee; to authorize 20-year STAR bonds for redevelopment in the additional 400-acre area (although tax abatements would not be permitted); to remove the special provisions for sales tax monies in excess of those required to service the STAR bonds; to refine the requirements for minimum offers in condemnation proceedings other than for the track; and to provide the boundaries of the 400-acre area. Another amendment which changed the treatment of sales tax monies in excess of those necessary to service the STAR bonds was nullified by a subsequent amendment.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext-bill.html.