Before the Power & Light District became the hub of entertainment and economic activity that it is today, the area was blocks of unkempt parking lots and empty storefronts.
The district’s overhaul was in part financed through a piece of 2003 legislation called the Missouri Downtown Economic Stimulus Act, MODESA for short. The program expired and stopped taking new applications in 2013, but construction on projects with prior authorization, like the Power & Light apartment towers, continues.
Now, the same program could return and be used for upcoming developments like the Kansas City Current’s riverfront expansion and the Royals’ proposed ballpark at Crown Center.
Takeaways
- The Missouri General Assembly passed an economic development omnibus bill that authorizes new tax incentives and revives the dormant Missouri Downtown Economic Stimulus Act from 2003. It was widely credited with helping facilitate the development of the Power & Light District.
- The updated legislation expands where developments can be located. That means areas like the KC Current’s riverfront expansion and Crown Center would be eligible for MODESA incentives.
- Officials acknowledged that tax subsidy programs like MODESA have had issues, such as Kansas City stepping in every year to cover the debt payments from the Power & Light District’s development. Diverting revenue could also pose budgetary issues as the state makes cuts for the coming fiscal year and prepares to ask voters to eliminate the state’s income tax.
The updated program recently approved by the Missouri General Assembly allows the expansion of existing developments, two new developments per municipality and an expansion of what taxes can be collected to fund the projects…