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How Overland Park would pay for the Black & Veatch headquarters: TIF, CID, TDD and EDRBs explained
Summary
Staff outlined a package of pay‑as‑you‑go incentives for the headquarters project: a multi‑phase TIF with phase‑by‑phase earn‑ups (90% to 100%), a CID (1.5% add‑on) capped at $11.6M, a TDD (0.5% add‑on) capped at $3M, and EDRBs for sales tax exemptions on construction materials.
City staff described a layered incentive package intended to reimburse eligible developer costs if project milestones are met. The TIF base year is set at 2025; Project Areas 1a and 1c (the headquarters and parking garage) start at 90% of increment available under the redevelopment agreement and can earn up to 95% or 100% if specified additional phases are completed on schedule. Todd told the committee the structure is "entirely pay as you go" and does not contemplate bonding.
Staff also described a CID that could add 1.5% in sales tax for up to 22 years (a CID cap of $11,600,000 was presented in packet materials) and a TDD with a 0.5% add‑on sales tax and a $3,000,000 cap tied to retail delivery. EDRBs (economic development revenue bonds) are proposed to allow a sales‑tax exemption on construction materials and equipment on a phase‑by‑phase basis; these would not be used for property‑tax abatement. Todd emphasized that many of these incentives only become financially meaningful if multiple phases and retail are delivered on the schedule contemplated in the agreement.
