WICHITA, Kansas (KSN) – Is it a vital tool to help the city lure development and jobs downtown?
Or have developers profited enough from backroom, sweetheart deals?
In less than a week, voters will have to decide if the city should kick back 75% of the guest tax on the new Ambassador Hotel to help developers turn the old, abandoned Dockum Building into a new, boutique hotel.
“You've got to be competitive as a city and Wichita competes with other cities to attract people like me,” said Paul Coury, the lead developer of the Ambassador.
The project promises as many as 500 construction jobs over the next year as well as 120 more jobs at the hotel once it’s finished. A WSU study predicts the project could create 400 more jobs at other businesses.
After opponents forced Tuesday’s referendum vote, Coury was forced to pay the costs of staffing the polls. He says he’s concerned altering a deal between the city and developers with a referendum vote could have a chilling effect on future development in the city.
“You have to have incentives to attract developers or they'll go somewhere else,” said Coury.
Radio advertisements run by opponents question how far the city should go to lure developers.
Bob Weeks points out the project has already locked up $15 million in incentives regardless of the referendum on keeping 75% of the guest tax.
“The people have seen that yes - we've been very generous...but at some point enough is enough,” said Weeks.
Weeks has been a long time advocate for the free market and believes it’s not the government’s place to “pick favorites” by choosing who gets incentive deals and who doesn’t.
“We don't think its good public policy, it sets a template for every development following,” said Weeks.
Polls open on Tuesday at 6 a.m.