Economic Development

Council members have established a review committee including members from the business, community, school and city sectors. This confidential committee meets privately with prospective businesses. Their recommendations are forwarded to the city council for a final decision.

Considerations balanced by the city council include job creation, community investment, company stability, potential impact on the school district and return on the community’s investment. Depending upon the community investment, companies may be asked to release financial information to the city’s committee and bond advisor. Kansas statutes also require communities to conduct a cost-benefit analysis on incentive packages.

·       Since 1986, Kansas has allowed its municipalities and counties to grant property tax exemptions for economic development purposes provided the exemption does not exceed 10 years. The council has utilized this tool.

     Each case is reviewed on its individual merits, and city council members have adopted some general guidelines regarding this issue. They typically require a minimum payment in-lieu of taxes on projects. This minimum payment requires companies to initially pay at least the amount of property taxes generated by the site’s current use. Council members have also agreed to a recruitment protocol signed by other Johnson County economic development officials. Communities are not allowed to actively recruit existing Johnson County business. The corporation must make requests for incentives and information.

·       The city has also issued industrial revenue bonds to aid firms. Companies interested in the bonds must essentially meet the same criteria as those requesting tax incentives. Generally, the bonds allow the company to secure a lower interest rate for financing a project. The company offsets the construction costs through a long-term debt arrangement.         

·       Utilizing state programs allows the community to offer Enterprise Zone incentives. These job creation benefits aid companies by providing credits for sales taxes, job creation income taxes and investments.         

·       State programs also aid companies with trade show grants, foreign trade zones, and workforce training.

·       For manufacturing firms, Spring Hill has rebated a portion of the city’s utility franchise fees. Taxes collected from Atmos Energy, Westar and Kansas City Power & Light are eligible for redemption. Usage determines the city’s offer for reductions.

·       Corporate incentives are offered by many of the utilities and services within the community. For example, Burlington Northern Santa Fe Railroad has worked with manufacturing firms needing railroad access by assisting them with construction of rail spurs. Rate incentives for large utility customers are also offered by some of the area’s utilities.         

·       City fees collected for inspections, building permits and utility connections can also be adjusted. In most instances, these fees are only waived if the company agrees to have their architect certify the project’s compliance with the applicable codes.         

·       The city council has also considered non-traditional measures as incentives. In the past, they provided office space for a company during their moving and construction phase.

·       Spring Hill is able to draw on Miami County’s strengths by applying for state Community Development Block Grant funds. Through an application considered by the Miami County Commissioners and state officials, Johnson County businesses can receive a portion of these Miami County funds. Businesses receiving block grant funds must hire a large percentage of Miami County residents as employees.