The City of Lansing is proposing a Reinvestment Housing Incentive District (RHID) using property tax revenue to repay developers over a 20-year period. The idea has drawn opposition, adding another layer to the contentious issue of rising property taxes in Kansas.
Opposition leader April Cromer details her group’s concerns:
“We have started a petition in Lansing to stop the program as we see no benefit to this. It seems the program is too new to be able to accurately measure any data from it. It just seems like it’s similar to a STAR Bond except the revenue to pay back the developer is from property taxes.
“The developer of this project is requesting a steep 20-year tax incentive, under which the tax revenue generated by the project will be redirected to reimburse the developer for an estimated $27 million in infrastructure costs. The foundational issue here is that the city and the school district would see little to no tax revenue until the developer is paid back, which could take upward of 20 years.
“The looming impact on our education system is deeply concerning. The potential influx of new students could lead to overcrowded schools, insufficient resources and stretched faculty. The financial pressure might necessitate new bonds, which inevitably would cause further tax increases to already overburdened residents of USD 469 – us, your neighbors and friends.”
Lansing’s policy on the RHID lists the criteria for financing approval:
- The average unit square footage of the development shall be no greater than 1,600 square feet.
- Include a minimum of 10% of attached unit styles.
- Include the maximum duration of 20 years, and
- Monthly rent of a dwelling unit owned and operated by the developer, shall not exceed 30% of the 4 Persons, 100% Moderate Income Housing Income Range, as published each year by the Kansas Housing Resource Corporation (KHRC). Households shall not be restricted by Moderate Income Housing Income limits.
We reached out to Lansing City Administrator Tim Vandall for comments on the project and its opposition:
“First off, I will clarify the City achieved the revenue neutral rate two consecutive years. The reason it appears taxes went up last year is because the City absorbed a rural fire district. Please look at the bottom column of the attached tax bill showing Fire District #1 having revenue of $1,703,813 in 2023, and having $0 in 2024. The money from Fire District #1 went to the City instead which is why it shows a 33% increase to the City, and a 100% decrease to Fire District #1.
There was no increase for Lansing residents who also reside in Fire District #1 in 2024, and the accountability of the revenue-neutral law passed in 2021 held property tax flat in 2022 and 2023. Still, residents are reeling from years of overtaxing by previous administrations. Property jumped 513% between 1997 and 2023, or 4.6 times the combined rates of inflation (80%) and population (32%).
“The RHID program successfully spurs housing growth throughout Kansas. While property taxes are utilized for infrastructure temporarily, school districts receive funds based on new students. The RHID program also gives the County and School Boards the ability to chime in if they disagree with the decision. The City respects the decision of other taxing entities in Leavenworth County.
“The City scaled back regulations to reduce minimum lot sizes, allow for tighter lots, and reduced setbacks. The City also now allows accessory dwelling units by right. The City also removed commercial parking minimums from our rules, allowing developers to determine the right size of their parking obligations rather than the City. We developed a program to offset demolition costs in blighted neighborhoods, and waive fees on all infill development.”
A public hearing on the RHID proposal is scheduled for April 17th at 7:00 PM in Lansing City Hall.
