From a financial standpoint, the state’s Sales Tax and Revenue (STAR) bond projects are set up to essentially pay for their own development. The tool allows Kansas municipalities to issue bonds “to finance the development of major commercial, entertainment and tourism projects,” which are then paid off through the sales tax revenue generated by the development. … While there are a few more wrinkles, once a STAR bond district is established (like Derby did in 2015), such bonds can then be issued to make payments for development of tourism attractions, infrastructure improvements, etc. … In metropolitan areas, those bonds can only be used for projects with an anticipated capital investment of at least $50 million. In rural areas, though, there is no specific financial threshold on STAR bond projects – just the mere requirement bonds be issued for a project of major regional or statewide significance.
Source: Derby Informer | News
