Topeka Tax Incentives Basics Re: Lauren's Bay

KSNT published an article April 9, 2025, entitled "Tax incentives approved for Topeka real estate developer." I am still trying to unravel the mystery of the Lauren's Bay residential development in Topeka, Kansas, that has been owing back taxes for more than a decade. The gist of the story is summed up in the lead sentence: "The City of Topeka approved a tax incentive plan that will spread out the cost of special assessment taxes in the Lauren’s Bay neighborhood for Topeka Real Estate Developer Jim Klausman." On August 9, 2025, based on some local news stories, I wrote the following: "Jim Klausman, a Topeka developer who owns Wheatfield Village at 29th and Fairlawn in Topeka, as well as Midwest Health, consisting of more than 50 healthcare communities in Iowa, Illinois, Kansas, Missouri, Nebraska, and Oklahoma, owes millions of dollars in back taxes on a very nice housing district near 47th and Wanamaker called Lauren's Bay. Commercial real estate broker Henry McClure, who is running for Topeka mayor against City Council Member Spencer Duncan, says taxes on these and about 100 other properties in the area have remained unpaid for a decade. "In April, the Topeka City Council agreed to establish a community improvement district (CID) for 16 properties in the Lauren's Bay neighborhood, as well as "three city-owned lots that have sat empty for years." (https://www.ksnt.com/news/local-news/tax-incentive-approved-for-topeka-real-estate-developer/) Earlier, Klausman had agreed to pay past-due special assessments on those properties 'in return for tax incentives from the city.' "Is creating or establishing a community improvement district for this development considered a "tax incentive?" I am still in the process of finding the answer to that question. In my world of writing and my limited experience in journalism (three years with weekly newspapers and nine hours of college courses, plus a year writing a column for the real estate insert in my local paper), good journalism includes such things as summarizing the background of a story and definitions of terms in order to clearly and concisely inform the general public. We have a mayoral election coming up in Topeka in November, and the people want to know what the issues are. One of these concerns what Topeka has been doing with Lauren's Bay for the past 10 to 15 years. In the absence of a clear and simple definition of the term "tax incentive," I have learned of some examples of tax incentives, specifically with respect to the city of Topeka, Kansas, USA. Based on an AI Overview, I have learned that "tax incentives focus on economic development and revitalization efforts." "Topeka offers several tax incentives. One of these is the Neighborhood Revitalization Program." This program "offers tax rebates for property improvements that increase appraised value. Certain properties, like historic or new infill housing, can receive a 95% rebate for 10 years." From an AI Overview: “Infill housing refers to new residential development built on vacant or underutilized land within existing urban areas, often filling in gaps in established neighborhoods.” Lauren’s Bay is definitely not “infill housing,” that’s for sure. The houses are priced at more than $300,000. Another incentive is the Tax Increment Finance (TIF) District in downtown Topeka, which uses future tax revenues for infrastructure and development financing. The Downtown Grant Program provides financial incentives for residential and commercial improvements within the Capital City Business Improvement District. Topeka also has three designated Opportunity Zones, where investing capital gains in projects within these low-income communities can receive preferential tax treatment. Properties in the Downtown Historic District may be eligible for additional state and federal historic preservation tax credits. For qualifying residents aged 65 and older who own their homes, there is the City of Topeka Property Tax Rebate Program, administered by the Community Resource Council (CRC). Additionally, Topeka has the Reinvestment Housing Incentive District (RHID) to encourage new residential housing developments. Eligibility and specifics vary for each program, and it's recommended to contact the City of Topeka's Finance Department, Downtown Topeka Inc., or other relevant departments for detailed information. So I leave you with this for the moment. At least another small piece of this puzzle is revealing itself. I will be back tomorrow to tackle a little more and share it with you. But, in essence, I am venturing to conclude that “tax incentives” are “tax relief.” Correct me if I’m wrong. https://www.ksnt.com/news/local-news/tax-incentive-approved-for-topeka-real-estate-developer/