CAPTION: Hutchinson City Hall, located at 125 East Ave B. CREDIT MICHAEL GLENN/THE HUTCHINSON TRIBUNE
By Michael Glenn
The Hutchinson City Council approved to set a public hearing for the establishment of three STAR Bond districts in the Salt City Tuesday morning at Hutchinson City Hall.
Director of Strategic Growth Dave Sotelo said it is essential for the public to have input on the bonds and shared a video from the Kansas Department of Commerce, which issues the bonds, on how the process works.
Currently, there are 16 STAR bonds active in Kansas, with examples including the River District in Wichita, Downtown Salina and the Amelia Earhart Hangar Museum in Atchinson.
Hutchinson used STAR bonds in 2006 with the Strataca Kansas Underground Salt Museum, which were paid off three years early in 2013.
“It’s one of the most successful bonds that have been paid,” Sotelo said. “We’ve had some history in the community and I’m excited to do it once again.”
There are three projects that could potentially see funds from the STAR bonds. The Cosmosphere would see an expansion and remodel, the Landmark Project would receive funds for the development of the property at the Northwest corner of 5th Avenue and Main Street and Memorial Hall would be revitalized.
Three separate STAR bonds districts, where a portion of new sales tax from the development is rerouted to pay off the bonds, would be implemented in Hutchinson along Main Street in Downtown Hutchinson, 11th Avenue around the Cosmosphere and 17th Avenue, including the construction area of the new hotel located north of 17th on Waldron Street.
“In this case, they’ve given us permission to have three different districts which are not connected,” Sotelo said.
Sotelo said if the bonds are approved to be established, city staff would go into planning the bonds and calculating the amount needed throughout the fourth quarter of 2024. Sotelo added the STAR districts could begin in early 2025.
“People won’t see an actual increase in sales tax,” Sotelo said. “It’s using sales tax already and using bonds. If we make investments, we expect it to increase. With the increment, we’ll pay the bonds back and the investors.”
