Sedgwick County approves interlocal to administer Keych Eye neighborhood revitalization plan

The Sedgwick County Board of County Commissioners voted 4-1 on Wednesday to approve an interlocal agreement with the City of Keych Eye and two local school districts to administer a neighborhood revitalization plan designed to attract housing and commercial investment.

Anissa Redd, division of finance, told commissioners the program “is designed to stimulate development, improve quality of life and address aging infrastructure and dilapidated properties,” and that “the core of the plan is to offer property tax rebates as an incentive.” The plan would rebate taxes on the incremental increase in building value after improvements; residential rehabilitation would receive a 100% rebate for five years, while new residential construction would receive a 50% rebate. Commercial projects would receive a larger initial rebate that phases down over 10 years.

County staff recommended approving the interlocal so the county would perform the appraisals and calculations needed to operate the program. Matt Gensby, Keych Eye city administrator, said the city wants the rebate program to “kick start some of our local economy within our core area of town,” including smaller commercial storefronts and pocket neighborhoods developers have proposed.

Commissioner Brent Howe dissented, saying he was not persuaded the rebate was necessary to spur development and voiced a broad policy objection to using tax incentives for housing. Howe argued the program reduces broad-based tax equity and questioned the ‘‘but-for’’ case — whether the projects would not proceed without the rebates.

Chairman Ryan Beatty, who moved approval, and other supporters said the program is limited in scope, represents no net new tax obligations to the county and is intended to help Keych Eye compete with nearby growing cities. Commissioners approved the interlocal and authorized all signatures; the motion carried with four in favor and one dissenter.

The agreement names the county as the administrator; owners submit an application and pay a $25 fee to Keych Eye, the county appraiser performs inspections and valuations, and rebates are calculated and disbursed through the county treasurer. Applications will be accepted through Dec. 30, 2029, with construction required by that date (a six-month extension may be granted by the city).

The two school districts named in the interlocal had not both fully executed agreements before the vote; Redd said USD 259 had accepted the agreement and that discussions continued with USD 262. The county’s staff report described the program as not creating a fiscal burden on Sedgwick County beyond foregone incremental tax revenue during the rebate term.

Supporters emphasized the program’s narrow design and the county’s role as administrator rather than funder; critics argued the program shifts tax burdens and may reward developers rather than homeowners. The commission did not adopt additional conditions beyond those in the proposed interlocal.

The commission approved the interlocal; roll-call recorded ayes and nays and the chair authorized signatures. The county manager’s office and the county appraiser will implement administrative steps to accept applications and process rebates.