Sales Tax Revenue (STAR) Bonds provide Kansas municipalities the opportunity to
issue bonds to finance the development of major commercial, entertainment and tourism
areas and to use the sales tax revenue generated by the development to pay off the
bonds.
STAR Bonds are meant to be a strategic economic development tool. In order to be
considered a major commercial entertainment and tourism area, a proposed project
must be capable of being characterized as a statewide and regional destination.
Projects should include high quality, innovative entertainment and tourism attractions,
as well as contain unique features that will increase tourism, generate significant
positive economic impacts and be capable of sustainable development over time.
There is a multi-step process involving the State, municipalities and developers
before STAR Bonds are approved. Those include, but are not limited to:
- A city identifying potential STAR Bond district boundaries.
- The local council setting public hearings to discuss creating the STAR Bonds district.
- The Secretary of Commerce approving the potential district.
- The local council holding public hearings and adopting ordinances to actually create
the district.
- Feasibility studies completed and delivered to the city.
- Project planning prepared and delivered to the city.
- The local planning commission reviewing the project.
- The local council setting and holding public hearings to adopt the project plan.
- The local council adopting the project plan.
- The Secretary of Commerce approving the project plan.
- Bond documents developed.
- STAR Bonds issued for project.
- Project begins.