WICHITA, Kansas (KSN) – A conservative group is taking their fight against incentives for downtown developers to the public.
Americans for Prosperity is leading a drive to collect more than 2500 signatures in an effort to force a referendum vote on a recent deal between the city and developers. That deal allows developers to keep a portion of the room taxes they would collect on a new downtown hotel.
“I think that what the government does for one it needs to do for all,” said Jack Tolbert. He was among the first to sign the petition at AFP’s Wichita office.
Developers want to spend $22.5 million turning the old Dockum building at Douglas and Broadway into a ritzy, boutique hotel. The deal with the city would allow them to keep $2.25 million of taxes generated by the new hotel during its first 15 years in operation.
The building has been vacant since 1999.
"If it's such a great opportunity in downtown then it should happen on its own,” said state director of Americans for Prosperity Derrick Sontag. "What is the harm in that building being vacant? Why does that building have to be occupied?"
Developers of the new hotel say they’re disappointed by the petition drive. Tulsa developer Paul Coury is heading up the effort. He points out the money they would get is just a portion of taxes that the city wouldn’t be able to collect if the hotel isn’t built. His hotel would also pump life into a city block that’s been dormant for a decade.
“I’m not sure if they’re against Wichita growing or free enterprise or what,” said Coury.
AFP has 60 days to collect the signatures. If they’re successful, the city would be forced to hold a vote within 90 days. Developers would be forced to pay the $50,000 price tag for the vote.
