CID

Topeka Residents: Rally for Community Improvement Districts and Fee Waivers to Fuel Equitable Growth

 

**By Henry McClure, Topeka Resident and Advocate**

 

TOPEKA, Kan. – As Topeka stands on the brink of significant revitalization, Community Improvement Districts (CIDs) emerge as a vital tool for driving economic development without imposing immediate tax burdens on residents. These districts, enabled by Kansas law, facilitate targeted investments that spawn new projects, generate employment, and elevate our community's overall appeal. With developers grappling with unprecedented challenges like skyrocketing construction costs and persistent inflation, now is the time for Topeka to not only champion CIDs but also waive development fees to ensure inclusive, sustainable progress for all.

 

CIDs function as specialized districts designed to fund enhancements in designated areas, typically via a modest sales tax addition—ranging from 1% to 2%—levied exclusively within the district. This isn't a citywide tax increase; it's a focused charge on transactions from the new development, ensuring no upfront costs to existing taxpayers. The essence is simple: Without the project, there's no tax. But with a CID, Topeka gains thriving retail, commercial, or mixed-use spaces that might otherwise remain unbuilt.

 

The incentive power of CIDs is transformative. In areas plagued by blight or underuse, developers often encounter financial hurdles that render projects unviable. By redirecting a share of the project's future sales tax to cover costs like infrastructure, utilities, or site work, CIDs close these gaps. This "but-for" mechanism guarantees that developments proceed only with district support, converting dormant sites into vibrant economic hubs. Take the 911 Walnut project at SW 32nd Terrace and Topeka Boulevard, which utilized a 2% CID sales tax to attract $15 million in investment, including fresh dining and shopping options.

 

The rewards for Topeka are undeniable: soaring property values, job creation, and amplified local tourism and facilities. All this without tapping general funds or hiking taxes across the board today—the income stems directly from the project's vitality, creating a symbiotic benefit for developers and the community.

 

To harness CIDs' full potential, Topeka must enforce a uniform policy. The city's guidelines, revised in 2025 through Resolution No. 9625, detail a review process by a committee and governing body, with sales tax rates up to 2% in increments. Yet, inconsistencies arise, raising equity issues. When the city awards a 2% incentive to prominent or government-supported ventures—like the California Crossing Shopping Center CID—that benchmark should extend to all eligible projects, irrespective of the developer's profile or project size. Uniformity dispels favoritism and grants "everyday" developers fair access, democratizing community investment.

 

Recent updates, such as aligning CID application fees with other incentives at $5,000, underscore Topeka's dedication to efficiency. By committing to a single, steadfast policy, we promote transparency and inclusivity, avoiding capricious alterations based on influence.

 

Moreover, to truly propel growth amid today's economic headwinds, Topeka should waive development fees for qualifying CID projects. The city already permits the City Manager to reduce permitting costs by up to 25% for economic development initiatives under Municipal Code 109.6, recognizing their value in spurring progress. But given the burdens developers face, a full waiver—or at least an expansion beyond 25%—is warranted. Construction costs have surged, with national indices showing a 6.6% rise over the past year and projections for 4-5% inflation in non-residential building in 2025-2026. In the Midwest, including Kansas, material prices for steel, concrete, and lumber remain elevated due to supply chain volatility and tariffs, while labor wages outpace general economic growth. Overall inflation hit 2.7% in December 2025, with housing and energy costs climbing even faster, eroding developers' margins.

 

These pressures—compounded by Kansas-specific forecasts of 6% cost escalation in FY25 and 10% in FY26—make it tougher to launch community-boosting projects. Waiving fees like building permits, planning applications, or site plan reviews (which can total thousands per project) would alleviate this load, enabling developers to invest more in quality and innovation. This isn't a handout; it's a strategic pass to foster growth, keeping overall project costs manageable and accelerating Topeka's expansion. Precedents exist, such as fee waivers for charitable housing, proving the city's flexibility in supporting vital developments.

 

Looking forward, embracing CIDs with consistent policies and fee waivers positions Topeka as a developer-friendly hub. Reach out to your city council to endorse these measures and insist on equitable implementation. United, we can cultivate a dynamic city where growth be