Commerce official says Star Bonds program expanding; 17 projects now active and policy changes aim to broaden eligibility

The Kansas Department of Commerce told a House committee on Feb. 27 that the Star Bonds sales–tax financing tool continues to be used to support major tourism and entertainment development across the state and that recent statutory and budget changes have broadened eligible uses.

Rachel Willis, director of legislative affairs at the Department of Commerce, described Star Bonds as created under the Sales Tax and Revenue Bond Act in 1999 and said the program’s intent is to increase out‑of‑state tourism, stimulate economic activity and improve quality of life. Willis said there are currently 17 projects in various stages of completion and repayment.

Willis reviewed changes enacted since 2021 and in subsequent budget provisos, including expanded eligibility for rural projects, permission to use proceeds for vertical building and rehabilitation, inclusion of historical theaters and amusement rides as eligible expenses, and an increase in maximum financing for rural projects from $10 million to $25 million per project. She also said the program was temporarily expanded during a special session to permit recruitment of professional sports teams under guardrails, including a one‑year sunset with a possible extension by the Legislative Coordinating Council.

Willis highlighted Village West in Wyandotte County as the program’s most successful project: “Village West now provides over $40,000,000 in sales tax revenue to the state general fund every year,” she said on the record. She said the agency collects visitation and sales information from districts and reports results in its materials.

Committee members asked for additional detail on project opening dates and performance. Representative Sutton asked why different projects showed disparate sales taxes; Willis said timing, pandemic impacts and local retail build‑outs influenced outcomes and that some projects (she cited Prairie Fire) opened shortly before the COVID‑19 pandemic and later faced tenant and litigation setbacks. Representatives also asked about bond issuance sequences; Willis explained that districts commonly finance projects in phases and issue new bond series for later phases once earlier phases reach milestones.

Willis summarized several potential projects under study, including proposals in Great Bend (drag strip and amphitheater improvements), Park City (aquarium and mixed entertainment uses), Colby (indoor amusement with weather exhibit and RV park), Hutchinson (Cosmosphere and related improvements), Garden City (outdoor fields and multiuse plaza), and others. She cautioned that none of the potential projects described had an approved plan and that details could change.

Willis also told the committee that the agency supported the Senate sub bill of S.B. 197, which would extend the Star Bonds sunset by two years, eliminate the power of eminent domain relative to Star Bonds projects, increase reporting transparency and expand eligible costs to include vacant malls.

Ending: The committee requested additional data, including project opening dates and fuller revenue and visitation histories. No legislative action occurred during the briefing.