Community improvement districts (CID) allow an additional sales tax to be charged within the district. The proceeds from the additional tax are used to finance CID-eligible project costs.

According to Kansas law, a CID tax or special assessment can be used to fund capital improvements, infrastructure, and certain operational costs. Projects may be funded by the use of special obligation bonds, full faith and credit bonds, or on a pay-as-you-go basis.

The City of Prairie Village has two Community Improvement Districts. One of these districts is the Prairie Village Shops.

 Project Information

On April 2, 2010, Lane4 Property Group submitted petitions for the establishment of Community Improvement Districts at the Village Shops. Lane4 Property Group also submitted the necessary application materials as required in Council Policy CP059 – City Assistance and Redevelopment Projects.

At the September 20, 2010 Council Meeting, the City Council approved the establishment of Community Improvement Districts (CIDs) at the Prairie Village Shops. The CIDs will impose a 1% sales tax for 22 years effective January 1, 2011. This will increase the sales tax rate at both shopping centers to 9.975%.

How is the Additional 1% CID Sales Tax Collected and Used

At the time of each purchase, an additional 1% sales tax is collected by the retailer and sent to the Kansas Department of Revenue. The Kansas Department of revenue then distributes the additional 1% to the City of Prairie Village which deposits the funds in a separate account. The CID proceeds can only be used for items as outlined in the Development Agreement.

The City of Prairie Village holds all funds collected by the CID until the developer requests reimbursement for an allowable expense (i.e. signature project, target project, or tenant projects). The City then reviews the reimbursement request to ensure that it was an eligible expense and has been completed. Upon the completion of the project, the City would then reimburse the developer for any eligible expenses.

The Developer is reimbursed on what is called a "pay as you go" basis. This means the Developer only receives funds based on the amount of cash in the Prairie Village Shops CID Fund.  The City is under no obligation to issue bonds for any project costs.  If the City Council decides it is in the best interest of the City to issue bonds, it may do so, however, the decision to issue bonds is entirely up to the City Council.

How much Revenue has the CID generated and how has it been used?

A summary of the historical revenues and expenditures can be found in the CID Annual Reports on the Finance Department website .