The City of Hutchinson announced it is moving forward with the initial stages of the STAR Bond project on Tuesday. The project is a significant initiative aimed at enhancing the community’s development and economic growth.
The STAR Bond project includes three key components:
- The Landmark Building Redevelopment will redevelop the historic Landmark Building to preserve its legacy while transforming it into 36 apartment units.
- The Memorial Hall Renovation will undergo renovations to restore its grandeur and make it a central hub for community activities and events.
- The Cosmosphere component of the project will expand the space museum’s exhibits and educational programs, attracting more visitors and enriching local cultural offerings.
“The STAR Bond project is a major opportunity for Hutchinson,” said Mayor Greg Fast. “By updating our historic buildings and expanding local attractions, we’re making a big investment in our city’s future. This project will boost our community and drive lasting growth.”
Strategic Growth Director Dave Sotelo emphasized the importance of the project.
“The STAR Bond project represents a strategic investment in our city’s future,” said Sotelo. “By revitalizing key areas and expanding our local offerings, we’re not only enhancing the quality of life for our residents but also positioning Hutchinson as a vibrant and attractive destination.”
The city plans to hold a public hearing in September, during which the City Council will consider the approval of the district. This step is crucial, but it is just the beginning of a longer process to bring these projects to fruition.
The approval process for STAR Bonds involves several steps:
- Approval of the STAR Bond District: The city will establish a designated area where the STAR Bonds will be used.
- Approval of the STAR Bond Project Plan: Detailed plans for each project within the district will be reviewed and approved.
- Issuance of Bonds: Once approved, the bonds will be issued to fund the projects.
There are a few moving parts that make STAR Bonds work.
- Revenue Generation: STAR Bonds allow the city to capture incremental sales tax revenues generated within the designated district. This means the difference between pre-development “base” sales taxes and the increase in sales taxes following new construction or redevelopment.
- No Tax Increase: Importantly, STAR Bonds do not involve additional taxation or tax abatement. Instead, they temporarily redirect future sales tax revenues from the development within the district. Existing sales tax rates remain unchanged for residents.
- Funding Mechanism: The bonds are paid off through the new sales tax revenue generated by the development. This ensures that the projects are self-financing and do not place a burden on taxpayers.
- Hutchinson has seen success with STAR Bonds projects. In 2006, Hutchinson became the first city in Kansas to establish a bifurcated STAR Bond district to invest in one of the community’s most treasured attractions, Strataca. The bonds issued have since been paid off, demonstrating the program’s potential for success.
The City of Hutchinson stated that it and its partners are committed to revitalizing the downtown area and enhancing the community’s attractions. This STAR Bond project aspires to represent a significant opportunity for economic growth and development for a brighter future for Hutchinson.
For more information, visit https://www.hutchgov.com/575/STAR-Bonds.
