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Garden City STAR Bond Project Approved

Mar 28, 2019

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Topeka, Kan. – The Kansas Department of Commerce approved a $129 million STAR bond project for Garden City, KS yesterday. Garden City has been authorized to use $25.4 million in STAR Bond funds for the project.

Garden City received bonding authority in order to assist with the Sports of the World Complex project. The STAR bonds constitute only 18 percent of the necessary funds for phase one, with the rest of the funds coming from the developer and the city.

“This is precisely the type of project the STAR bond program was created to support,” Acting Secretary of Commerce David Toland said.

This project has been ongoing, with communication between Garden City and the Department of Commerce in December of 2014. The project has been vetted and evaluated over a nearly-five-year process prior to approval.

The developments planned for the Project area will include an Ice Arena, World Food Plaza, Fieldhouse and Jump Park, Headwater Plaza, and more.

The feasibility study submitted to the Department of Commerce by Garden City has determined that the annual total economic impact of businesses and their employees in the project on the area economy is estimated to exceed $115 million and attract over one million visitors annually.

About STAR Bonds

State Tax Revenue (STAR) Bonds are designed to assist in the creation of major commercial, entertainment and tourism developments in the state of Kansas. 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 and include a high-quality innovative entertainment and tourism attraction, containing unique features which will increase tourism, generate significant positive and diverse economic and fiscal impacts and be capable of sustainable development over time. Public benefits must exceed public costs. STAR Bond financing must constitute less than fifty percent of total project costs.

Each STAR Bond project is evaluated through a comprehensive application process which includes feasibility, marketing and market impact studies. Bonds are then paid off via the new sales tax collected from the project.

STAR Bonds are not a liability of the state or city. In the event of a default, bond holders assume all risk, not taxpayers.