Economic Development Incentives

The City of North Kansas City recognizes that the proper utilization of economic development incentives can have a positive impact towards community redevelopment consistent with community goals. In addition, enhancing the local economy through attracting new and innovative businesses is a target goal of the City’s Master Plan. Below are key incentives in which the City has, in the past, engaged. Find the City’s general policy for economic incentives below.

Chapter 353
Real Property Tax Abatement under Missouri Statute Chapter 353 is a program which provides an incentive to encourage redevelopment of “blighted” areas. Real estate tax abatement can be granted for a period of up to 100% for ten years and up to 50% for an additional fifteen years by Missouri State Statute section 353.110.

Chapter 100
Chapter 100 authorizes cities to issue Industrial Development Bonds, which are revenue bonds used to finance industrial development projects for private corporations, partnerships, or individual companies. Eligible projects include warehouses, distribution facilities, research and development facilities, office industries, and manufacturing plants. This may apply to the financing of land, buildings, and personal property.

Tax Increment Financing
Tax Increment Financing (TIF) allows for developments to use a portion of newly generated taxes and apply a portion of them to repay costs for the development. The maximum period for TIF is 23 years.

Community Improvement Districts
Community Improvement Districts (CIDs) may either be separate political subdivisions, funded through public money such as sales tax assessments, or not-for-profits, funded through property tax or special assessments. CIDs are designed to help improve the community through improving conditions for current businesses and attracting new development.

Neighborhood Improvement Districts
Neighborhood Improvement Districts (NIDs) are created for an area seeking certain public use improvements which are paid for by special assessments to property owners in that area. All projects financed through NIDs must be for facilities used by the public.

Transportation Development Districts
Transportation Development Districts (TDDs) are separate political subdivisions created to finance transportation related improvements. This is done through issuing bonds, levying taxes, or applying special assessments.

Opportunity Zones

The Opportunity Zones program encourages long-term investment and job creation in low-income areas of the state, by allowing investors to re-invest unrealized capital gains in designated census tracts. North Kansas City was one of the 161 Opportunity Zones (click here for map) submitted by the State of Missouri to the federal government for inclusion in the program*. The provision has two main tax incentives to encourage investment:

Temporary deferral of inclusion in gross income for capital gains that are reinvested into Opportunity Funds.

Investors can roll existing capital gains into Opportunity Funds with no up-front tax bill.
If investors hold their Opportunity Fund investments for five years, the basis of their original investment is increased by 10 percent (meaning they will only owe taxes on 90 percent of the rolled-over capital gains.) If investors hold for seven years, the basis increases by a further five percent.
Investors can defer original tax bill until December 31, 2026, at the latest, or until they sell their Opportunity Zone investments, if earlier.

Excludes from taxable income capital gains on Opportunity Fund investments held for at least 10 years

* Zones are subject to approval by U.S. Department of Treasury. A date for final approval has not been set.

Related Documents
-Economic Development Incentive Policy
-Application for Chapter 353
-Application for Chapter 100

For more information on the incentive programs, please feel free to contact Kim Nakahodo at 816-274-6000.

City Hall
2010 Howell St
North Kansas City, MO 64116

Phone 816-274-6000

Regular Hours:
Monday - Friday
8am to 5pm