NICK GOSNELL
Hutch Post
HUTCHINSON, Kan. — The Hutchinson City Council approved an ordinance that will ultimately result in the ending of the CID for the Fairfield Inn property in Hutchinson at its meeting on Tuesday.
"Back in 2010, we established a Community Improvement District, CID District, for the Fairfield Inn," said Finance Director Angela Richard. "In 2012, we began collecting sales tax for that CID. In 2017, the developer then sold the property. Therefore, he no longer has operating expenses that can be reimbursed by the CID. That CID does not transfer to the new owner of that property, so here in the next month or two, we will have reimbursed all of his eligible expenses for the property."
It takes several months to undo a CID.
"We will publish the ordinance in the newspaper," Richard said. "We will then send a copy to the Kansas Department of Revenue prior to April 1. They will then terminate the CID on July 1. It has to be at the beginning of a quarter."
A reminder that CID money is a way for cities to reimburse developers for their cost to develop infrastructure like hotels or malls.
"They submit their sales tax to the state," Richard said. "The state then gives us the sales tax money. We keep track of that separately, per CID. If the developer has enough eligible expenses, which, the eligibility is outlined in the agreement, then we can pass that money on to the developer to reimburse them for their expenses."
The CID was due to expire in 2024 anyway, and was originally a 12-year deal.
CLICK HERE to download the Hutch Post mobile app.
CLICK HERE to sign up for the daily Hutch Post email news update.