Waddell & Reed, with net income of $1.9 billion between 2009 and 2018 is asking the City Council to approve $44 million of local incentives (along with $62 million in state incentives) to relocate its HQ from Overland Park, KS to Downtown KC.

This request comes with very little information about the project or the developer, and ZERO financial justification regarding the need for taxpayer assistance.

If the project is approved, Waddell & Reed will receive

• 75% property tax abatement for 15 years (totaling $28 million)
• Reimbursement of 50% of earnings tax for 15 years ($12 million)
• Will not pay sales tax on construction materials ($2.7 million)

Local schools will forgo $15 million in future tax revenues that could be spent on Pre-K classrooms or trauma-informed supports for students.  Revenues intended for libraries, police/fire, and mental health services will instead go to offset the cost of Waddell & Reed’s new headquarters and 1,000 car parking garage. 

The ordinance outlining the tax breaks was voted out of the Neighborhood Planning & Development Committee last Wednesday. On Thursday, December 12th Ordinance 190930 will come before Mayor Lucas and the City Council for approval.

Please contact the Mayor and Council to demand transparency and accountability BEFORE granting $44 million of local tax breaks that are intended to fund schools, public safety, libraries, and social services.

RESOURCES

KCMO City Council

Waddell & Reed sees local piece advance for $106M incentive package - KCBJ

Think giant tax break for Waddell & Reed is a lousy idea? Call KC Mayor Quinton Lucas - KCStar