Wareham Hall seeks 10‑year property tax abatement and public infrastructure funding for $40M renovation

Blaidd Majes, executive director of Wareham Hall (the nonprofit renovating the historic Wareham Building and theater), presented an expanded renovation plan and asked the commission for two forms of support: (1) an industrial revenue bond (IRB)‑based property tax abatement — described as a 100% abatement for 10 years — to enable the sale/monetization of federal historic tax credits through a for‑profit LLC, and (2) public infrastructure funding drawn from the city’s 2023 economic recovery sales tax to repair and reconfigure the sidewalk, add a downtown drop‑off/pull‑off, alley and alley‑grade improvements and other right‑of‑way upgrades.

Project overview and program: Majes said Wareham Hall purchased an adjacent four‑story building (the historic Wareham Building) earlier in the year, roughly doubling the project footprint and adding about 18,000 square feet. Project plans presented to the commission call for a restored and modernized theater with flexible main‑floor seating and permanent balcony seats (approximately 550 seats in seated configuration, up to ~800 for standing/custom setups), a second‑level “Marquis Bar” and multipurpose space, an expanded basement performance and lounge area called the “Way Down Lounge” (approximately 100 seats), commercial kitchen capacity, artist green‑room and dressing rooms, and five short‑term rental units in the adjacent building intended primarily for touring artists and residency programming. Majes said an elevator, a pit lift for the stage, new restrooms and accessibility improvements are part of the program.

Programming partners and projections: Majes said Wareham Hall expects to host roughly 50–60 events per year from K‑State Music, Theater and Dance under a memorandum of understanding, operate a presenting season for touring acts and provide space for local productions. The presentation included internal pro forma projections that show roughly $3.2 million in annual revenue and an estimate—based on a third‑party creative placemaking tool—of about 45 jobs and approximately $4.6 million in regional economic impact.

Capital stack and tax credits: Majes said the total capital cost is about $40 million. He reported that roughly 65% of funding is expected from philanthropy and historic tax credits, with about $4.0 million in federal historic tax credits and a substantial state historic tax credit component. To monetize federal credits, Majes said the nonprofit has formed a for‑profit developer LLC (Wareham Hall Ventures LLC) that would accept an investor partner to provide equity in exchange for federal tax credits; that structure, he said, is the reason the project seeks an IRB‑based property tax abatement. Majes said the organization is roughly 10% invested so far and that the federal credit realization process typically distributes tax credits to the project over a five‑year period.

City requests and costs shown in the presentation: Majes requested a 10‑year, 100% property tax abatement issued via IRBs as a means to unlock the federal historic tax credits and a public infrastructure reimbursement request. In the presentation Majes cited a $3,350,000 one‑time request from the 2023 economic recovery sales tax for broader public infrastructure improvements tied to the project. At other points in the discussion staff and the presenter referenced a $350,000‑$430,000 right‑of‑way/sidewalk infill estimate for the immediate sidewalk and crosswalk work; the presentation also listed a broader set of alley, bus parking and trash enclosure improvements. Presenters told the commission that current property tax on both parcels is about $31,000 annually and that the county appraiser’s projected post‑project value would produce an estimated preliminary tax liability of roughly $240,000 annually (numbers vary by the formula used and the county’s estimate).

Public comment and commissioner feedback: The proposal drew mixed public comment. Supporters — including Paxton Lemoine and Jackie Hartman Bork (Wareham Hall board chair) — praised the cultural and economic benefits; other speakers raised concerns. Andrew Veil Lintel urged the group to pay property tax if it monetizes federal credits; Amber Starling, a local business owner, criticized some attendance and demographic assumptions in the submitted market analysis and called for a scaled‑back scope unless stronger assurances are provided.

Commission questions centered on tax impact and accountability: Commissioners and staff asked for clarity on the abatement’s fiscal impact (the commission’s staff estimated the city’s share at roughly $10,000 of the current tax revenue) and on mechanisms to attach performance metrics to any abatement. City staff told the commission Kansas statute prevents the commission from abating certain school capital outlay mills and noted there is precedent for nonprofits to pursue property tax exemption through the state Board of Tax Appeals (KSA process). Staff also reminded commissioners that the IRB abatement structure is commonly used to enable tax credit financing but that the commission traditionally seeks performance metrics tied to public incentives.

Next steps and staff direction: Commissioners did not approve the requested abatement or infrastructure funding at the meeting. Instead they asked staff and the project team to return with more detailed financial analysis, proposed performance metrics for any incentive, and clearer, reconciled cost estimates for the right‑of‑way and public infrastructure work. Staff indicated they would draft potential incentive language and suggested performance tiers tied to investment and outcomes.

Why it matters: The proposal would change the property tax treatment of a downtown historic asset, enable significant private and philanthropic investment and, if realized, increase downtown event activity and visitor spending. Commissioners signaled support for preserving the building but requested additional fiscal safeguards and measurable commitments before granting the requested incentives.

Ending: The commission invited Wareham Hall and staff to supply a refined proposal with performance metrics, clearer cost breaks (including the sidewalk/right‑of‑way estimate), and the projected net fiscal impact for city revenues before making a formal decision.