Economic Development Incentives & Financing Tools

A variety of incentives and financing tools are available to promote development in the city of Salina. The information provided below is intended to serve as a brief explanation of various incentives and financing tools available at the time of publication; it does not provide a full summary of the eligibility requirements; it is not binding; it should not be the basis of financial decisions and further review of applicable local, state and federal policies and regulations is necessary in order for potential applicants to fully understand available incentives at the time of application. The incentives and financing tools summarized below are listed under each organization responsible for administering or coordinating those programs. In many cases, multiple organizations work cooperatively to review and approve applications. This information is also available as a handout; please click the following link:
Eco-Devo Incentives & Financing Tools

 

City of Salina

Margy Clem | Development Coordinator | margy.clem@salina.org
Amanda Barnett | LFKS Housing & Infill Dev. Fellow |  amanda.barnett@salina.org

 City of Salina Housing Policy

Incentive:

The Live Salina Housing Assessment and Strategic Plan was adopted by the Salina City Commission on January 25, 2016. Since 2016 that plan has guided much of the local business growth and neighborhood revitalization efforts – Including projects in Downtown Salina.

Because of the local economic growth, an updated supplement to the Live Salina Housing Assessment and Strategic Plan was adopted by the Salina City Commission on July 19, 2021. The purpose of updating the plan was to ensure that the community’s demographics and new employment numbers are as current as possible, allowing the City to understand the projected housing need over the next 10 years.

The City of Salina Housing Policy documentation is intended to provide both information and structure to the economic assistance programs available to developers subject to the approval of the Salina City Commission. The document contains detailed information about how Rural Housing Incentive District (RHID) and Industrial Revenue Bonds (IRBs) provide project-cost tax credits for Utility and Infrastructure land improvements. The conversation for both economic incentive programs can be started for using the same form Residential Housing Incentive Request Form.

Eligibility:

Subject to local approval by governing body

Application:

Residential Housing Incentive Request Form

Policy:

City of Salina Housing Policy


Live Salina Plans:

2016 Live Salina Plan
2021 Live Salina Supplement

Summary Packet:

Development Packet

Community Improvement District

Financing Tool:

A Community Improvement District (CID) is a real estate economic development tool that can be used to finance public or private facilities, improvements and services within a local city or county. The CID funding mechanism can be used to finance a variety of locally approved development-related activities including property acquisition, infrastructure development, and parking and building construction within the district. It can also extend to certain infrastructure improvements outside the designated district, if those improvements are contiguous to the district and are deemed necessary to implement the development plan. A CID can derive revenues through special assessments, a district-only sales tax or other funds as appropriated by the city or county.

Financing is provided through bond issuance or can be project generated on a pay-as-you-go reimbursement basis. Businesses within the district must approve the imposition of a district sales tax or property tax special assessment prior to its establishment. Those sales tax and special assessment proceeds are used to pay off bonds issued and / or contribute to the direct reimbursement of project-related costs. These special district taxes and special assessments have a maximum term of 22 years.

Contacting the local governing body should be a first step if there is interest in considering the establishment of CID to assist in funding project-related needs.

Resource:  www.kansascommerce.gov

Eligibility:

Subject to local approval by governing body

Application:

Community Improvement District Petition

Policy:

Community Improvement District Policy

Map:

Area of Change

Enterprise Zone

Incentive:

A rebate of 50% of paid building permit fees

Eligibility:

A qualified business located anywhere in Saline County, including the city of Salina, is eligible for this incentive for newly constructed buildings, building additions or renovations to existing buildings, when the project cost, as shown on the building permit application, exceeds $100,000 and the building is used for (a) manufacturing articles of commerce; (b) conducting research and development; or (c) storing goods and commodities sold or traded in interstate commerce. The rebate shall be paid at the time of issuance of a final Certificate of Occupancy.

Application:

No application is required; eligibility will be determined by City staff as part of plan review for a building permit.

Map:

N/A – all of Saline County

Industrial Revenue Bonds

Incentive:

Industrial Revenue Bonds (IRBs) are generally used as a tool to grant full or partial property tax abatement for certain commercial facilities for up to 10 years and a sales tax exemption for labor and materials purchased for new facilities. In limited circumstances, IRBs may be used to provide lower-cost tax-exempt financing for eligible manufacturing projects.

Eligibility:

Eligible expenses include land, buildings and equipment for qualifying manufacturing, agricultural, commercial, industrial and other facilities in accordance with K.S.A. 12-1740 et. seq.

Application:

Industrial Revenue Bonds Application

Industrial Revenue Bonds Application Procedure

Policy:

Resolution 81-3547

Map:

N/A

Neighborhood Revitalization Program

Incentive:

Under the Neighborhood Revitalization Program (NRP), property owners have the opportunity to receive a property tax rebate on additional taxes levied as a result of eligible property improvements within the designated areas. The purpose of the tax rebate is to encourage both new construction and rehabilitation of existing buildings in identified redevelopment areas.

The rebate is based on a formula applied to the added taxes paid resulting from the increased assessed value of the property after completion of improvements. The rebate ranges from 50% to 100% for the first five years and 25% to 50% for the next five years, depending upon the improvement and the increase in valuation.

Eligibility:

Provided that they are located within approved geographic areas, all types of residential property are eligible except accessory structures such as detached garages and storage buildings. Improvements must cost $10,000 or more and increase assessed value by at least 10% for residential property.

Provided that they are located within approved geographic areas, all types of commercial and industrial property are eligible except public utilities and railroads. Improvements must cost $20,000 or more and increase assessed value by at least 20% for commercial and industrial property.

Qualified improvements include new construction, rehabilitation, alterations and additions all of which require a building permit. Improvements must comply with City codes and regulations. [Resolution No. 04-6028, 6029, 6030]

Application:

Neighborhood Revitalization Program Tax Rebate Application

APPLICATION MUST BE FILED WITHIN 60 DAYS OF BUILDING PERMIT ISSUANCE

Maps:

Policy:

Neighborhood Revitalization Areas

Neighborhood Revitalization Plan

Property Tax Exemption Program

Incentive:

Kansas counties and cities may exempt from all ad valorem (property) taxation all or any portion of the appraised valuation of buildings, land, and tangible personal property used exclusively by a new business for (a) manufacturing, (b) research and development, or (c) the storing of goods traded in interstate commerce. Also, an exemption may be given for existing buildings or new expansions to existing buildings, and for the land and associated new personal property, for these same purposes, to facilitate the expansion of the business, if new employment is created. The exemption may extend for up to 10 years. Leased property can qualify under certain circumstances (K.S.A. 79-221).

Eligibility:

Eligible properties include all newly constructed buildings or additions to existing buildings used exclusively for eligible business activities (listed above) necessary to facilitate the formation of a new business or expansion of an existing business if, as a result of such formation for expansion, new employment is created.

Each application for property tax exemption will be evaluated in accordance with the following criteria:

Demonstration of economic benefit

Preservation of existing tax base

Eligible business (manufacturing, research and development, storage of goods or commodities sold or traded in interstate commerce)

Application:

Property Tax Exemption Application

Policy:

Resolution 91-4265

Map:

N/A

Qualified Opportunity Zones

Incentive:

Opportunity Zones, established by Congress in December 2017 as part of the Tax Cuts and Job Act, promote long-term investments in certain census tracts, with the goal of stimulating development in these economically distressed communities. This program allows taxpayers to re-invest private capital gains and postpone or decrease federal capital gains taxes in districts designated as “Qualified Opportunity Zones.”

Eligibility:

There are two opportunity zones in Salina – census tracts 1 (Downtown Salina) and 6 (Salina Airport Industrial Area).

Opportunity Zones are intended to be accessible to all classes of investors and businesses, and not just select developers and properties within the designated zone. In addition, there is no cap on gains made on investments in an Opportunity Zone.

Application:

Economic Development Incentives - General Application

Map:

Opportunity Zone Map (Tract 1)

Opportunity Zone Map (Tract 6)

Sales Tax Rebate

Incentive:

The governing body agrees to rebate all or a portion of sales taxes collected by the business in exchange for certain economic development (e.g., job creation, assessed value growth, growth in sales tax base, etc.). Sales Tax Rebates involve a contract between the business and the City setting out the terms of the rebate.

Eligibility:

Any commercial project that generates sales tax.

Application:

Economic Development Incentives - General Application

Map:

No

Special Redevelopment Area

Incentive:

100% waiver of building permit fee for all newly constructed buildings, building additions or renovations to existing buildings within the designated Special Redevelopment Area in Salina.

Eligibility:

Projects constructed for any purpose that are located in the designated (mapped) Special Redevelopment Area (SRA). [Resolution No. 05-6230]

Application:

No application is required; eligibility will be determined by City staff as part of plan review for a building permit.

Map:

Special Redevelopment Area

Tax Increment Financing

Financing Tool:

Tax Increment Financing (TIF) is used to reimburse certain land acquisition, site preparation and public improvement costs for commercial development projects. TIF uses the incremental increase in real estate tax revenues and, at the governing body’s option, certain sales tax revenues, within a TIF district to reimburse the developer for eligible costs.

Eligibility:

Developers/owners of proposed new projects are encouraged to determine whether the proposed new project is within an area eligible under state law for creation of a TIF district. If so, the developer/owner may apply for use of TIF funds (see application form, below) for eligible redevelopment project costs approved by the City such as land acquisition, site preparation, infrastructure, parking structures and other related costs.

Application:

Economic Development Incentives - General Application

Map:

N/A for new TIF

Salina 2020

Larry Britegam | 785.309.5510 | lbritegam@asbt.bank

As “Master Developer” of the Downtown Revitalization Project, Salina 2020 jointly with the City of Salina reviews and approves public financing requests related to downtown development. Public financing incentives are available for eligible, approved projects through the downtown CID, downtown TIF district and downtown Opportunity Zone (census tract 2).

All public financing requests associated with downtown Salina should first be directed to Salina 2020 (contact information above).

Eligibility:

Developers / owners of proposed new projects in the downtown CID are encouraged to apply for use of CID funds.

Developers / owners of proposed new projects, and owners of existing businesses in the downtown TIF district are encouraged to apply for use of TIF funds for eligible redevelopment project costs such as land acquisition, site preparation, infrastructure, parking structures and other related costs applicable to industrial, commercial, intermodal transportation areas and residential projects.

Each project approved for an allocation of incentive funds must be completed prior to eligibility for receipt of such funds. After project completion, funds will be distributed on a pay-as-you-go basis (i.e., as revenues are generated over time) pursuant to a priority system.

Application:

Public Financing Request Application (Exhibit B)

Map(s):

Community Improvement Districts Map

Salina Area Chamber of Commerce

Eric Brown | President / CEO | 785.827.9301 | ebrown@salinakansas.org

Project Open

Project Open is a matching loan program operated by the Salina Area Chamber of Commerce and is designed to support private capital by providing matching funds to assist startups and existing businesses that are expanding in Saline County, Kansas. It addition to loan and grant funding, Project Open also offers Business Education Training. For more information please visit http://www.projectopensalina.com/ or call the Salina Area Chamber of Commerce at 785-827-9301.

Financing Tool:

Up to $45,000 loan funding and up to $5,000 in grant funding

Location criteria:

Must be located within Saline County

Match criteria:

Matching loan (up to 60% of bank loan)

Finance terms:

Matches terms of partner or bank loan (minimum 2%)

Cultural Arts Regional Marketing Program

The purpose of the Cultural Arts Regional Marketing (CARM) program for Salina Area Cultural Arts Organizations is to increase the economic impact associated with overnight stays at Salina hotels / motels, specifically through visitors attending cultural arts venues and events, by means of enhancing regional marketing efforts of cultural arts organizations in the Salina area through a portion of the transient guest tax (TGT). For more information please contact Sylvia Rice, Visit Salina Director at 785-827-9301.

Financing Tool:

Fund One: Comprehensive Regional Marketing Plan Enhancements

The specific purpose of the Fund One program is to increase the economic impact associated with overnight stays in Salina hotels / motels by working with area cultural arts organizations who are significantly involved in regional marketing and who cooperatively create a collaborative marketing plan, and strengthening their regional exposure by matching their investments with TGT funds.

Fund Two: Cultural Arts Regional Marketing Grants

Fund Two is a CARM Grant program divided into two categories:

Fund Two (A) is designed to increase the economic impact associated with overnight stays by expanding the regional marketing potential of cultural arts events.

Fund Two (B) is an internal grant designed to conduct broad-based cultural arts marketing of Salina as a rich cultural arts destination. This grant is administrated by an Advisory Committee comprised of Visit Salina and Salina Arts & Humanities staff in partnership with representatives from the Cultural Arts Directors’ Roundtable, at least one representative from the hotel / hospitality industry and at least one representative from the food / restaurant / retail industry. This grant will not be utilized to promote specific cultural events already eligible for Fund One and Fund Two A grants.

Eligibility:

Fund One:

Participants may apply for no more than 25% of the anticipated annual funding, based on the TGT budget set by Visit Salina and the City of Salina and must provide a one-to-one dollar match of no less than $5,000.

Fund One Grants will be awarded on an annual basis, with participants receiving quarterly payments; however, participants will be limited to funds as they are generated through the TGT mechanism.

Fund Two (A):

Organizations participating in Fund One are not eligible for Fund Two grants; however, they can provide matching dollars for the Fund Two applicant.

Funding is for regional marketing of projects only

Projects must emphasize increased economic impact through overnight visitation. Partners can be non-profit, for-profit, arts or non-arts entities.

Projects featuring collaborative efforts will be given priority consideration.

Application:

Fund One:

Visit Salina will publish availability of grant guidelines and applications. Interested organizations will notify Sylvia Rice, Visit Salina Director, in writing via mail or email, no later than October 15 of their intent to participate in Fund One for the following year.

Visit Salina may coordinate an initial mandatory meeting for all identified Fund One participants, to reconfirm their interest and begin the collaborative planning process.

Identified participants will work together to create and submit marketing plans and budgets that specifically emphasize collaborative programming through various means.

Marketing plans will be reviewed by representatives of Salina Area Chamber of Commerce / Visit Salina and the City of Salina, with recommendations going to the Chamber Board for final approval.

Fund Two (A):

CARM Fund Two is an open application process, with submissions accepted throughout the calendar year. Applications shall be forwarded to Sylvia Rice, Visit Salina Director. All applications will be judged and awards recommended by the Cultural Arts Regional Marketing Review Committee. The Committee will present recommendations to the Salina Area Chamber of Commerce Board of Directors for consideration / approval, or to the Chamber Executive Commission when necessary due to timing.

Organizations may apply for us to $3,000 in grant funding, per application, based on a 1-to-2 match (i.e. providing a $1 match for every $2 requested). Only one application per project.

Salina Community Economic Development Organization

Mitch Robinson | Executive Director | 785.404.3131 | mrobinson@salinaedo.org

Salina Economic Development Incentive Program

Financing Tool:

A direct grant from the City of Salina for investment in property, new and expanded buildings, equipment and training, with disbursement dependent upon the level of capital investment and job growth.

Eligibility:

Eligible industries include manufacturing, processing, interstate product distribution, research and service sector businesses which derive 90% of their revenues from sources outside Saline County. [Resolution No. 17-7439]

Application:

SEDIP Application

Map:

N/A

Salina Downtown, Inc.

Penny Bettles | Managing Director | 785.825.0535 | pbettles@salinadowntown.com

Cluster Marketing Grants

Incentive:

Development Incentive Program (DIP) Cluster Marketing promotes cooperative marketing of multiple downtown businesses. Minimum single grant request is $250. Maximum single grant request is $1,000. All applications require a minimum match of $2 private investment to $1 grant funds.

Eligibility:

Any Salina Downtown business in good standing (Salina Downtown Service Fees must be current), may participate in an application for DIP Cluster Marketing funds. The cluster MUST include at least two eligible businesses. All participating businesses must agree to include the Salina Downtown logo in all marketing materials associated with their Cluster Marketing Grant.

Any Salina Downtown business in good standing may participate in an unlimited number of clusters annually (provided funding is available); however preference will be given to first-time grant applicants. Priority will be given to Salina Downtown members; however, non-profit Salina Downtown, Inc. Partners whose principal location lies within the boundaries are also eligible to apply for DIP Cluster Marketing funds.

Application:

Cluster Marketing Grant Guidelines and Application

Entertainment Funding Grants

Incentive:

Development Incentive Program (DIP) Entertainment funding encourages collaboration between businesses to help create a fun and cultural environment downtown!

Eligibility:

Any Salina downtown business in good standing (service fees must be current) may participate in an application for Entertainment funds. Minimum award is $50 with maximum award set at $200. All applications must meet the 1:1 match.

Application:

Entertainment Grant Guidelines and Application

Façade Improvement Program

Incentive:

The Facade Program focuses on improving the exterior of existing buildings and constructing new commercial buildings. 

Mini-Grants (up to $3,499 per award) – requires $2 applicant funds for every $1 grant funds. 

Forgivable Loans (up to $15,000 per award) – requires $1.50 applicant funds for every $1 loan funds. 

Eligibility:

Any Salina Downtown Business Improvement District #1 (BID) property owners and/or tenants of structures located within the BID, who are in good standing (BID Service Fees current), may apply. Applications are accepted quarterly (March, June, September and December). Priority will be given to BID members. However, non-profit Salina Downtown, Inc. partner businesses whose principal location lies within the BID boundary are also eligible to apply funds. The building’s eligibility is renewed annually.

Application:

Facade Improvement Grant Guidelines and Application

Facade Improvement Forgivable Loan Guidelines and Application

State of Kansas

The Kansas Department of Commerce provides site location assistance, financing programs, workforce development assistance, income tax incentives, property tax incentives, sales tax exemptions, and rural opportunity zones. Some of these programs are summarized below under “Network Kansas.” For more information about State assistance and incentives, please visit the Kansas Department of Commerce Business Incentives web page:

https://www.kansascommerce.gov/programs-services/business-services/

NetWork Kansas

NetWork Kansas serves as a link between business owners and resources available through the state government and provides a central point of contact to streamline the business startup processes.

NetWork Kansas matching loan programs, summarized below, are designed to support private capital by providing matching funds to assist startups and existing businesses that are expanding. A variety of loan programs are offered based on geography, matching loan amounts, and project need. See details below or go to the NetWork Kansas website:  https://www.networkkansas.com/. The best solution for your business will depend on the total project need and loan amount you’ve been approved for from your local service provider or bank. If you need assistance from a local NetWork Kansas partner, please call 877-521-8600. A Referral Coordinator will connect you with a funding expert in your area.

Startup Kansas Loan

Incentive:

Up to $45,000

Location criteria:

Rural (population fewer than 50,000), OR

Distressed-Urban (20% or more of the population in the census tract lives below poverty level)

Match criteria:

Matching loan (up to 150% of the loan being utilized for match)

Finance terms:

Matches terms of partner or bank loan (minimum 5%)

Kansas Capital Multiplier Loan

Incentive:

$25,000 - $250,000

Location criteria:

Available to all geographic areas

Match criteria:

Matching loan (up to 9% of bank loan)

Minimum bank loan of $278,000

Finance terms:

1-5 years, 4% fixed

6-10 years, 6% fixed

Women & Minority Business Multiplier Loan

Incentive:

$10,000 - $250,000

Location criteria:

Available in all geographic areas

Match criteria:

Matching loan (up to 20% of bank loan)

Minimum bank loan of $50,000

Finance terms:

1-5 years, 4% fixed

6-10 years, 6% fixed

E-Community Loan Funds

Incentive:

Up to $45,000

Location criteria:

Must be located in an E-Community. Visit www.networkkansas.com to view an E-Community map.

To access all documents and forms listed on this page, please click here:  Documents and Forms