Town Center Mall Was The First TIF District
By Jon A. Brake
The City of Manhattan has used Tax Increment Financing (TIF) twice in
the past. The Manhattan Town Center
and Colony Square were developed by using the first TIF District. The Second TIF District runs from Fort Riley
Blvd. on the East and South to Juliette on the West and Houston on the North.
The City purchased all the land for the mall. In fact they still own
the land and lease it to Forest City, the
developer. The developer did not pay for the land and redevelopment costs. The City purchased the land and
destroyed the buildings. The developer pays real estate taxes and that money is used to pay for the development.
When the Distinct was formed in 1985 the total Downtown Area was included
in the District not just the
redeveloped land. The Assessed Valuation at the time was $2,207,140. That $2.2 million was set as the Base for
the new TIF District. From that time on the City, County and School District would receive taxes based on $2.2
million. As the value of property in the area increase the Base stayed at $2.2 million.
And the value did go up with the building of Manhattan Town Center and
Colony Square and improvements to
other businesses. By 1988 the Assessed Valuation for the area was $5.7 million. With Reappraisal in 1989 the
value soared to $10,002,053.
In 1988 the Total Taxes paid by the District was $881,204.42. The City,
County and School District divided
$415,215.42, which were taxes on the $2.2 million. Another $465,988.45 was paid to the City of Manhattan to pay
for the Bonds which were used to purchase the land for the Mall and Colony Square.
The question that can not be answered is: "Would we have a Town Center
Mall if the City had not formed the
TIF District." Thanks to good management the Mall looks as good today as it did when it open in 1987.