Downtown Finance Overview

Downtown Redevelopment was funded by a combination of city funding, a tax increment financing (TIF) district, a transportation development district (TDD) and STAR bonds. Additionally, private development contributed to the projects. Total project costs are estimated at more than $200 million. View a flow chart of sources and uses of the funds.

Tax Increment Financing
Tax Increment Financing (TIF) is estimated to contribute $25 million toward land assembly and public infrastructure within the project areas such as roads, sidewalks, lighting, water lines, sewer, stormwater, etc. TIF dollars are generated exclusively in the north and south project areas. TIF includes the increase in property taxes and city sales tax generated from the new development. 

The city, county and school district continue to receive the base amount established in 2005, when the TIF district was created. Anything generated above and beyond this base is pledged toward the land acquisition and public infrastructure necessary to facilitate the north and south project areas. 

Transportation Development District Financing
Two Transportation Development Districts (TDD) generate an additional half-cent sales tax on top of the total sales tax rate to help assist with the public infrastructure improvements. In total, the TDD will generate another $7 million to the project.

STAR Bonds
The state awarded a total of $50 million in State Tax and Revenue bonds to the South End Redevelopment project following a Market Feasibility Study. The bonds were intended for construction of the Flint Hills Discovery Center, land acquisition in the south district and public infrastructure improvements.

Private Investment
Dial Realty invested $87 million in the construction of all retail, restaurants and residential units in the North and South Project areas. No public tax dollars were used to construct private businesses or residences.

City of Manhattan Investments
The City of Manhattan is scheduled to invest an additional $35.7 million (roughly 20% of the total project) toward other public improvements in both the north and south project areas. Projects significant to the benefit of the community have been identified for this investment. These include:
  • Creating an intersection at Third Street and Pierre Street
  • Financing the construction of the Conference Center and a portion of the 400-stall parking garage
  • Fourth Street construction — north and south
  • Opening up Leavenworth Street at Third Street (connection to the mall)
  • Purchasing the furniture, fixtures, exhibits and equipment for the Discovery Center