Mayoral Q & A: Candidates discuss City Hall’s role in spurring economic development
Kansas City’s mayoral candidates answered an extensive questionnaire from The Star on key issues. Here are their responses to questions about economic development, edited for clarity and length.
What policies or initiatives would you pursue to help create jobs in Kansas City?
Scott Taylor: “I would continue to help create and retain jobs in Kansas City. As Chair of the Planning, Zoning and Economic Development Committee and member for eight years I have been part of creating thousands of new jobs and billions of dollars of new investment in the city. My focus would be to work with existing companies to grow and retain them for the long term.”
Alissia Canady: “I would consider a broader approach at policies, including collaboration between the offices of Economic Development and Workforce Development, Housing and Transportation because they are all intertwined. Collectively they will work to increase economic opportunities, reduce poverty, support those in reintegration and ultimately reduce gun violence if facilitated properly.”
Quinton Lucas: “Paying attention to the city’s long list of infrastructure needs, including work at the airport, creates a great many jobs directly in the construction arena, but also a number of other indirect jobs for manufacturers, suppliers, and waste and debris removal services. We can target funds and programs for Kansas City, Missouri residents on these projects and can even micro-target opportunities for folks living in our poorest zip codes.
“Small businesses are key to increasing employment and the city should work to support our city’s entrepreneurs. The first way the city can serve this role is with targeted tax incentive programs to small businesses, rather than just larger projects. The US Small Business Administration has already provided a template for such plans through its Small Loan Advantage and Community Advantage Programs, which have largely supported entrepreneurs from minority communities.
“I strongly support increased funding for KCATA to enhance bus routes in the urban core, particularly along Prospect, and increased east-west routes that can get people from their homes to jobs that are sometimes based in Kansas, like the GM Fairfax plant, Downtown, or Eastern Jackson County.“
Steve Miller: “I will work with all stakeholders to create a new City Plan – Focus 2020 to make certain the Kansas City we are creating is a 21st Century City – one which is prepared to attract business, develop and retain local and national talent and compete on a global stage. This includes creating as City that is sustainable, one which creates greater density at its core with vibrant integrated transportation options while still offering a variety of suburban opportunities.
“I will create an Office of Diversity, Equity and Inclusion, which views every city program through this lens understanding that the City of the future must be more diverse, equitable and inclusive. The City’s investment in projects will always be assessed on the propensity of the investment to attract well-paying jobs – and claw back provisions will be used to guarantee performance.
“As a metropolitan area, we must stop fighting over the same piece of the pie. This “Border War” has resulted in a loss of more than $300 million to local governments and a net change of only 1200 jobs. Instead, as mayor of Kansas City, I will work with our other mayors and regional leaders to get state governments to enact legislation to economic development weapons from being trained on neighbors.”
Scott Wagner: “I believe that we have a fractured approach as a community to workforce development. I think the Mayor’s office can and should play a more active role in connecting those seeking jobs to the training for higher paying jobs, to the programs that deliver that training. The categories where this can be important include Construction, High-Tech, Logistics, Advanced Manufacturing and Health Care. I also want to build better access to capital for businesses that want to grow in Kansas City. We have better lending options for small businesses, but nothing when they are ready to take the next step. Since the State can not figure out how to attract Angel Investors I believe the City needs to take the lead.”
Phil Glynn: “We must invest in worker skill training and upgrade our public transportation system to get workers to jobs. For decades, our policy has been to invest in buildings. Now it is time to invest in people.”
Vincent Lee: Did not respond.
Jolie Justus: “My administration will focus on the efficient execution of the recent series of voter-approved initiatives, which improve our basic services, infrastructure, and transportation facilities. Completing these projects will not only provide the city with needed public assets, but it will demonstrate to the public and business sector that Kansas City government deserves their confidence.
“We must work with Kansas officials to end the “Border War” of economic incentives, which has been a waste of effort and resources. We will partner with the region’s innovation leaders, to foster and grow our entrepreneurs and small businesses. We will provide the tools they need, then get out of the way and let them do what they do best. I support the goals of the University Health Sciences District and the emerging innovation districts that will be catalysts for future business growth and workforce development.”
Jermaine Reed: “We’ve made a lot of progress in the last eight years. From the street car, new convention center, elimination of food deserts, and plans to build a new airport terminal, I really think we are in a renaissance period for the city. As mayor, my focus will be on continuing to look for areas of economic growth while looking for ways to ensure there are more minority hires and that local businesses have a part in our city’s prosperity.”
Henry Klein: “If we have significantly better education, police response times and accountability and a strong mayoral form of city government where everyone is being held accountable and given the tools they need to succeed, the jobs will follow.”
Clay Chastain: Did not respond.
Do you support or oppose the ballot measure [scheduled for June] that would cap property tax abatements for developers at 50 percent?
Taylor: “I have concerns with the ballot issue as written as it applies to the East Side of Kansas City where more of a boost is needed to start development.”
Canady: “No. Some areas of the city will need all tools available to address the financing gap and ability to leverage state and Federal funds.”
Lucas: “Not at this time. I have concerns with the now-pending ballot initiative, including the fact there are no exceptions for East Side development—which is a serious concern—and no exception for development in economically distressed areas. I continue to support the 75% ordinance I drafted and got passed. It has reduced the reliance on incentives in economically vibrant areas of the City. We have shown it can be done with the economy staying vibrant. One of the greatest problems with the 75% ordinance has related to lax enforcement from staff and agencies. There’s a way to address that. Cutting incentives in distressed areas of the City is not the right path.”
Miller: “I oppose the ballot measure mandating a 50% cap because it would unnecessarily tie the hands of the City precluding it from undertaking projects that might be truly transformative. For instance, the Sunfresh grocery store at 31st and Prospect would not have been possible with such an ordinance in place. More frightening still, the City would never know the opportunities that might have been. Those opportunities would simply go elsewhere.”
Wagner: “I oppose it. Although I understand the sentiment behind it the reality is that whether it is at our current 75% limit, or it goes to 50% the same thing will occur. Developments will just go to agencies that are outside these caps. The surest way to improve the abatement situation is to negotiate better and say ‘no’ when its necessary. I’ve done that.”
Glynn: “I oppose it. However, I respect the community groups advocating for this and I am committed to using our economic incentives in areas that are truly suffering from blight. I will bring more stakeholders and representatives of affected taxing jurisdictions to the table to construct a more disciplined approach. I will ensure the process is transparent to the public and accountable to the taxpayers. I don’t support a policy change that may prevent us from catalyzing a transformative project that provides a good return on investment to the taxpayers.”
Lee: Did not respond.
Justus: “No. I cannot support an arbitrary cap on abatements anymore than I would propose a random floor. I still place great faith in the application of human judgment. Also, a cap could have an unintended impact of giving developers a target to ALWAYS shoot for, rather than encouraging a data-driven assessment of the cost of public interest elements of property development.”
Reed: “This is an issue that is up to voters. I supported 75% cap, and also believe expansion of opportunity zones is a great option. “
Klein: “I support the direction this is going in but a good leader needs to leave options open. “
Chastain: Did not respond.
What changes, if any, would you make to how the city decides on developer requests for incentives and abatements?
Taylor: “Since I have been Chair of P and Z we have passed incentive reform which I supported. I would have a public discussion about the use of incentives.”
Canady: “Appoint people to the alphabet agencies boards & commissions [TIF, LCRA, PIEA, IDA] who understand equitable development. Create opportunity for more input from the taxing jurisdictions at the statutory agencies and before the council votes. And lastly, review the Advance KC scorecard to prioritize business expansion opportunities that will encourage local hiring.”
Lucas: “The City should change its policy viewpoint on blight. The Country Club Plaza is not blighted. Instead, blight remediation goals on incentivized projects should be limited to projects in economically distressed areas of the City. “
Miller: “I will make certain that investment decisions are aligned with the new Focus 2020 Plan. The City’s economic development program, including incentives, will overlay the master City Plan.
“There needs to be more consistency between the various agencies which operate under the umbrella of the Economic Development Corporation. For instance, if the City is investing in a Project, prevailing wage should be required of all projects. The other taxing jurisdictions such as the school districts and library should have a seat at the table and an opportunity to be heard.”
Wagner: “Don’t accept blight as broken down furniture on the side of the road. Negotiate the deals down based on rigorous analysis of the project and its financial information, and be prepared to let a development go in search of a better deal.”
Glynn: “Investors and developers need clarity. Past administrations have not given clear direction about where they want incentivized development to happen. I will work with the development community and the Council to build consensus around prioritizing the targeting of truly blighted neighborhoods. Then I will appoint board and commission members committed to ensuring projects receive the most efficient amount of incentive required to make a given project happen.”
Lee: Did not respond.
Justus: “We should start to shift our focus from the more general commercial development strategies that revived our downtown to general policies that enhance broad-based economic growth, job creation, public transit access, environmental sustainability. And require the developers to meet certain benchmarks with clawbacks when goals are not met.”
Reed: “We need more government efficiency and transparency around appointments to boards and commissions.”
Klein: “We need to help the PIAC and our citizen groups develop strong, “shovel ready” projects that developers can choose from to support when we give then economic incentives. Or they can propose other alternatives as long as they fit into the scope of helping areas of our city that need help with specific needs but would not get that help without this kind of program.”
Chastain: Did not respond.
Has the city’s use of tax incentives for development been appropriate? If not, how should it change?
Taylor: “We need to be intentional and targeted and consider items on a case-by-case basis. We have reduced the number of TIFs do that tool has been used in the last few years on projects like the new Sunfresh.”
Canady: “The council should not guarantee debt on speculative or luxury real estate developments that do not meet the housing or public needs prioritized in citywide business plan.“
Lucas: “It has improved, but I continue to have qualms with the City’s use of incentives. Incentives should be directed toward truly blighted areas in economically distressed census tracts. The City also should tie incentives more closely to job production—providing more points for projects that are job generators.
Miller: “In many instances the City’s use of tax incentives has been appropriate – and responsible for the current momentum; in other instances, they have not represented the best use of the City’s limited resources. In the future, the City must not only ask the question: “but for” the City investment would the Project go forward; the City must do a better job of asking whether a project is the type of project the City should invest in. To answer this latter question, the new Focus 2020 must serve as the touchstone.”
Wagner: “Its all in the eye of the beholder. All I can say is there our developments I’ve voted for and some I’ve voted against. We will always have projects come forward, which is reflective of the desire of people to build in Kansas City, which is good. What I think we need to do more of is be more proactive in identifying what we are looking for. It’s hard to say no to a project when you have nothing to compare it against. The greatest challenge in economic development is being able to walk away from a project when you are unsure another may come. That can be changed by being intentional.”
Glynn: “We need to move away from a scattershot approach of ‘incentives everywhere.’ I offer a strategic approach of pairing the right incentive with the right project in the right location. I have brought $1.4 billion in investment to economically struggling communities nationwide and that’s what I will do for Kansas City.”
Lee: Did not respond.
Justus: “Economic development policies have restored our downtown into an economic powerhouse. We should now focus on broad-based economic development goals that translate that economic momentum into success at the neighborhood level. Those goals should include identifying EastWest corridors to interact with the well-developed North-South corridor. As we make this change, we need to support that growth with efficient public transport that fosters the movement of employees and customers throughout the city.”
Reed: “In some cases it has been, and in other cases we’ve probably have conceded too much. The reality is that tax incentives are a tool we can use to spur economic growth. We can do better by making sure we adequately define our affordability policies, labor and workforce development policies so that we are clear about the benefits that are tied to tax incentives.”
Klein: “The idea of “but for these incentives, the project wouldn’t get done” also known as the “but for” clause, is not going to be the litmus test going forward.”
Chastain: Did not respond.
As the city contemplates future development proposals. what types of projects should it prioritize. and why?
Taylor: “For future projects we should encourage affordable and workforce housing.”
Canady: “Affordable housing, capitalizing small businesses in growth industries, business expansion projects, catalyst development projects in severely distressed census tracts, and development projects that support job growth and transit-oriented development.”
Lucas: “We have probably over-incentivized of late in the construction of luxury multi-family development and in the construction of the Downtown hotel/motel market. We should direct where we can more incentive efforts to truly economically distressed areas and jobs that are bringing in more new jobs.”
Miller: “The City should work to attract projects that create opportunities – that is, well-paying jobs. This means providing leadership that will equip Kansas City to be competitive in the 21st Century. As Mayor, I am going to accomplish this by insuring that policies in City Hall align with important business initiatives and that business initiatives are both supported and influenced by sound policy from City Hall. Over the last 5 years, business leaders have put significant work into the Big Five Initiatives (Chamber of Commerce) and the KC Rising program (Civic Council). I understand this work and the potential it holds for the City.”
Wagner: “First, the City has to understand the economics of the market. This is both in areas of high demand and lower demand. Without understanding what financial challenges still exist in areas, it is more difficult to assess whether a development needs an incentive, and what is the proper incentive. More to the point is what to priortize. I think we are still challenged with Class A Office Development Downtown and Commercial Development on the Eastside. We have neighborhoods in the Northland and in the South part of the City [with] office and commercial corridors that are seeing an end to their useful life and will need rehabilitation.”
Glynn: “1) Projects that create quality jobs our citizens have the skills to thrive in. 2) Skills training to meet the demand of our current Kansas City employers. 3) Projects in existing public transportation corridors to ensure the lack of a reliable transportation is never a barrier to economic opportunity.”
Lee: Did not respond.
Justus: “The city’s economic development initiatives should build “economic causeways” between the “development islands” of the last twenty years. To support travel along those causeways, the city must expand its creative work with the KCATA. Efficient public transportation broadens the number of customers, employees and neighbors moving along those economic causeways, without leading to gridlock, destroying our environment, or increasing the need for parking.”
Reed: “Every community has different needs. Some areas may need more affordable housing options, other areas may need to combat blight. When looking to future development proposals we have to be cognizant of the needs of communities while making sure that we do not give too much away in concessions.”
Klein: “Please see my answer to this above.”