Kirk McClure, Associate Professor

Graduate Program in Urban Planning

University of Kansas

1465 Jayhawk Blvd., 317 Marvin Hall

Lawrence, Kansas 66045-7614

(785) 864-3888

mcclure@ku.edu

Memo

To: Frank Reeb, City Clerk

From: Kirk McClure

CC: Mayor Mike Rundle

Date: 4/29/2004

Re: Trend Analysis of Tax Abatements

As you and I discussed with the Mayor after the meeting of the Public Incentives Review Committee, it may assist the City Commission in their deliberations if they could see the performance of the tax abatement program over time. To facilitate this, I have prepared three tables.

Table 1 indicates whether or not each abatement generated the promised investments in real property and in personal property. An abatement is deemed to be in substantial compliance if more than 90 percent of the promised investment was made. Note that the level of investment is not known for some early and now expired abatements.

This table indicates that 6 of 19 reporting abatements did not generate the promised abatements.

Table 2 indicates whether or not each abatement generated the promised full-time jobs. An abatement is deemed to be in substantial compliance if more than 90 percent of the promised jobs were generated.

This table indicates that 6 of 20 abatements did not generate the promised full-time jobs in 2003, up from pervious years.

Table 3 indicates whether or not each abatement paid workers at a level such that the average worker in each occupational category was paid at or above community wage standards. An abatement was deemed to be in substantial compliance if the firm’s average was at least 90 percent of the community average for each occupational category.

The table indicates that 6 of 12 reporting abatements were not in substantial compliance in 2002. It also indicates that 5 of 12 reporting abatements were not in substantial compliance in 2003. Additional firms are out of business and, as such, are not paying the promised wages.