Lawmakers in Kansas are considering an extension of the state’s STAR bond program, aimed at financing the redevelopment of struggling shopping centers. This initiative comes as several malls across the state have faced economic challenges and deterioration in recent years. The proposal, which has already passed the Senate with a 32-8 vote, seeks to prevent further economic decline and blight by extending the STAR bond program until 2028. Proponents argue that this measure is crucial for revitalizing commercial spaces and preventing the fate that befell malls like the former White Lakes Mall in Topeka, while critics express concerns about the program's effectiveness and transparency.
The debate surrounding the bill highlights the urgency of addressing the plight of aging malls, particularly in light of the demolition of the White Lakes Mall in Topeka. Senators pointed to this case as a cautionary tale, emphasizing the potential consequences of inaction. Senator Larry Alley warned that without intervention, other malls could suffer a similar fate, turning into eyesores that drain community resources. The demolished mall along the route taken by Wichita-area lawmakers serves as a stark reminder of what might happen if no action is taken. Senator Chase Blasi noted that Towne West Square in Wichita, once a vibrant shopping destination, now risks following the same path unless state economic development tools are utilized to transform it.
The legislation, Senate Bill 197, primarily focuses on reauthorizing Sales Tax and Revenue Bonds (STAR bonds), a tool that allows local governments to issue bonds for major commercial projects, using sales tax revenue to repay them. Without this legislation, the STAR bond program would expire in 2026. However, the amended version extends it to 2028. Supporters, including Bob North from the Kansas Department of Commerce, argue that STAR bonds play a vital role in fostering economic growth by creating tourism and entertainment attractions. Yet, opponents, such as Senator Caryn Tyson, raise concerns about poor audit results and the struggles some projects face in repaying the bonds. The bill introduces changes, including requiring visitor data collection, public disclosures, and eliminating eminent domain power for these projects.
To qualify for STAR bond assistance, a mall redevelopment project must have at least 50% of its space unoccupied and require a minimum investment of $10 million. Senators debated the merits of expanding eligibility to malls, with some expressing reservations. For instance, Senator Doug Shane attempted to remove the mall provision from the bill, citing concerns about overextending the program. Meanwhile, Senator Joe Claeys emphasized the critical need to act, warning of the devastating consequences of inaction. He pointed out that failing to intervene could lead to massive deteriorating structures that strain police resources, reduce neighboring property values, and ultimately cost millions in taxpayer dollars for demolition and cleanup. The example of Topeka’s West Lake Mall, abandoned in 2011 and demolished in 2021, underscores the potential outcomes of neglecting these issues.
The discussion also highlighted the broader implications for communities across Kansas. Senators Mary Ware and Ron Ryckman mentioned struggling malls in cities like Hutchinson and Salina, suggesting that the STAR bond program could offer much-needed support. Senator Jeff Klemp noted that counties like Leavenworth and Wyandotte face similar challenges. As legislators continue to debate the bill, they recognize the changing landscape of retail and the importance of adapting to new consumer behaviors. The hope is that this extension will provide the necessary tools to revitalize these spaces and prevent further economic decline.
