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Council approves Landmark CID and development agreement for 501 North Main
Summary
The council adopted an ordinance creating a 2% CID for the Landmark project at 501 North Main to reimburse up to $1.5 million of eligible expenditures over 22 years; the measure passed with one councilmember recorded as voting no.
The Hutchinson City Council voted to create a community improvement district (CID) for the Landmark project at 501 North Main, approving a 2% additional sales tax inside the CID to reimburse up to $1.5 million in eligible expenditures or for up to 22 years, whichever comes first.
Angela Richard, the city's director of finance, explained the CID is one piece of a broader financing plan for a renovation project the owners say will cost more than $22 million. She told the council that, if approved, the CID would take effect Oct. 1, 2026, after notification to the Kansas Department of Revenue.
Developer partner (self-identified) said the CID was included in an August 2024 agreement in principle and that tenant decisions and some timing constraints made the current petition necessary now. Sheri Broadbent, a member of the public, asked whether the CID was part of the original financial plan or a stopgap for cost overruns; a developer replied that the CID was contemplated in the original AU and that recent timing prevented earlier formal adoption.
Council members discussed scope and tax incidence. Staff and council clarified the CID is intended to apply to retail sales made at the building's ground floor (for example, prepared food); certain destination-sourced deliveries and alcohol-beverage taxes do not fall under the CID. One councilmember said the sales-tax changes passed by the state made the fiscal effects different from expectations in 2024.
After discussion, the council voted to adopt the ordinance and authorize the mayor to sign the development agreement. The motion carried with Truan, Garza and Fast recorded as yes and Goss recorded as no.
The ordinance will create a legal district limited to the property identified in the petition and begin the reimbursement schedule if future eligible sales are collected within that district.
