The request for this RHID is necessitated by the inability to secure the nearly $27 million required for proposed infrastructure. An RHID is akin to a STAR bond, but the revenue is generated from property taxes rather than sales tax.

The proposed RHID tax abatement application extends over 20 years:  20 mills will be directed to the state school fund in accordance with KSA 72-5142, 1.5 mills will be allocated to the state building fund, and the rest would go to the developer. On January 29, 2025, the Kansas Senate passed SB35, which would eliminate the 1.5 mill levy for state educational and institutional buildings, instead providing financing from the state general fund. While this could theoretically expedite developer repayment over 20 years, it does not provide revenue benefits to the city, county, or school district. If home sales slowdown, the deficit might impact the city, potentially leading to an increase in the mill levy for other taxpayers.

The projected 20-year rebate total at 2% growth is estimated to be $25,566,623. This might require the city to issue a future bond to repay the remaining funds if the project exceeds $25 million, especially since the proposal is upward of $27 million. This scenario could result in additional tax increases for city taxpayers.