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Senate keeps malls eligible for Star Bonds; lawmakers debate redevelopment and transparency requirements
Summary
The Kansas Senate approved a substitute for SB197 to extend the Star Bonds program and, under tight conditions, allow redevelopment of underused mall properties while adding transparency and notice requirements.
The Kansas Senate on Feb. 20 approved a substitute version of Senate Bill 197, amending the Star Bonds Financing Act to extend the program and broaden eligible projects in a limited way that includes redeveloping certain mall properties.
Under the substitute bill and adopted amendments, a mall facility where at least 50% of the mall is unoccupied may be considered for a Star Bond zone if a private investment threshold is met and local governments follow required procedures. The substitute added several transparency provisions: local governments must notify residents within 90 days after adopting or modifying a Star Bond plan; point‑of‑sale transaction data must be collected and posted to the Department of Commerce website; and cities and counties cannot pledge state general‑fund revenues to repay special obligation bonds used for Star Bond projects. The bill also prohibits use of eminent domain by local governments to acquire property for a Star Bond project.
Floor debate focused on whether extending Star Bonds and adding malls as an eligible category would help communities stabilize failing retail cores or simply extend taxpayer‑backed incentives to marginal projects. Supporters argued that Star Bonds can prevent neighborhood blight and preserve jobs; Senator Clay cited Town West Mall in Wichita as a local example where redevelopment tools could prevent a future catastrophe that would otherwise drain public resources.
Opponents warned that expanding eligibility risks using incentives for projects that would have redeveloped without public assistance, and they emphasized the need for stronger oversight. The floor substitute includes new reporting and transparency steps intended to address those concerns, and committee and floor amendments set a path for additional local review and state reporting.
Outcome: the substitute bill passed the Senate on a floor vote after adoption of amendments. If enacted, municipal and county governments seeking to use Star Bonds for mall redevelopment would submit plans and disclosures to the Kansas Department of Commerce and comply with the new public‑notice and point‑of‑sale reporting requirements.
Provenance: debate and amendment text are recorded on the floor transcript; the substitute bill and its amendments were adopted on the floor.
