When Kansas City voters head to the polls Aug. 4, they’ll decide the future of one of the city’s largest neighborhood redevelopment efforts.
Question 3 asks voters whether to renew the Central City Economic Development (CCED) one-eighth-cent sales tax for another 10 years. The tax, first approved by voters in 2017, is set to expire in September 2027 unless it is renewed.
If approved, the measure would extend the existing tax through 2037. If rejected, the tax will expire in September 2027, ending Kansas City’s dedicated funding source for redevelopment in the Central City district.
Unlike many ballot questions, this proposal would not create a new tax. Instead, voters are deciding whether to continue a program created to help revive neighborhoods that experienced decades of disinvestment and struggled to attract private investment.
According to the Economic Development Corporation of Kansas City, which administers the program, CCED has funded 58 projects, invested more than $88 million and helped leverage nearly $1 billion in total development activity in the city’s Central City. The program also reports helping construct or renovate 1,473 housing units.
Here’s what voters need to know before casting their ballots.
Why Was the Tax Created?
To understand the CCED sales tax, it’s important to understand why Kansas City leaders believed a dedicated redevelopment fund was needed.
By the time voters approved the tax in 2017, many of Kansas City’s historic Black neighborhoods had experienced decades of disinvestment following the end of segregation. Construction of U.S. Highway 71 through the heart of the community further disrupted neighborhoods, displaced homes and businesses, and left behind vacant properties that were difficult to redevelop. Even as investment began returning to other parts of Kansas City, much of the Central City continued to struggle to attract private capital.
Another obstacle was financing.
While construction costs were similar to those elsewhere in Kansas City, lower property values often meant banks would not finance enough of a project’s cost. Even financially sound developments could be left with a funding gap that prevented construction from moving forward.
CCED was created to help close that gap.
Rather than paying for entire developments, the program provides strategic “gap financing” that helps developers secure the additional public and private funding needed to complete projects. Supporters describe it as a way to make projects financially possible while encouraging much larger investments from banks, tax credit programs, foundations and private investors.
Where Can the Money Be Spent?
Although the one-eighth-cent sales tax is collected citywide, the money may only be invested within the Central City district, generally bounded by Ninth Street on the north, Gregory Boulevard on the south, The Paseo on the west and Indiana Avenue on the east.
The district includes many of Kansas City’s historic Black neighborhoods, commercial corridors and the 18th & Vine Historic District.
What Has the Program Funded?
CCED investments have supported residential, commercial and mixed-use developments, as well as nonprofit and community facilities.
Among the better-known projects are One Nine Vine in the 18th & Vine district, KD Academy’s 24-hour childcare center on Prospect Avenue, the new AdHoc Center for Healing and Justice headquarters, the restoration of the historic Boone Theater, and the transformation of the long-abandoned former Kansas City Water and Street Department buildings at 2000 Vine—across from the iconic Workhouse Castle—into a mixed-use campus with offices, event space, an art gallery and restaurant.
According to CCED, the program has funded 58 projects through seven funding rounds, investing $88.29 million that has helped generate nearly $968 million in total development activity—roughly $10 in total investment for every $1 invested through CCED.
Supporters say those investments are helping restore long-vacant properties, create housing, support neighborhood businesses and generate jobs while preserving the character and history of Kansas City’s urban core.
When The Community Voice expanded into the Kansas City market in 2017, redevelopment around the 18th & Vine Historic District had largely stalled beyond the earlier investments in the American Jazz Museum and Negro Leagues Baseball Museum. Today, the area includes new apartments, offices, restaurants and commercial developments that supporters point to as evidence that investment momentum has returned.
Why Do Supporters Want to Continue It?
Supporters argue that neighborhood revitalization doesn’t happen overnight.
The program’s Impact Brief compares redevelopment to a long-term investment rather than a short-term construction project. It says the first five to seven years are often spent planning developments, assembling financing and completing construction. Visible neighborhood momentum typically follows over the next several years, while broader goals such as stronger business districts, increased private investment, population stabilization and a larger tax base may take 10 to 20 years to fully materialize.
They also argue the need that led to the program’s creation has not disappeared.
Many vacant buildings and underdeveloped properties remain, affordable housing is still needed, and financing challenges continue to make redevelopment difficult in parts of the Central City district. Without continued gap financing, supporters say some projects now in the development pipeline could be delayed or never built.
As the program states in its Impact Brief, CCED “is not simply a project funding source.” Instead, supporters describe it as a long-term reinvestment strategy designed to ensure Central City neighborhoods participate in—and benefit from—Kansas City’s continued economic growth.
Why Are Some People Skeptical?
Not everyone believes the program has moved quickly enough.
Some community members and critics have questioned whether taxpayers have seen enough completed projects after nearly a decade of collections. Others have raised concerns over transparency, administrative costs and whether redevelopment has progressed at the pace originally envisioned.
Supporters respond that many projects approved after the program launched in 2017 encountered delays caused by the COVID-19 pandemic, rising construction costs and financing challenges. They argue large redevelopment projects often require years of planning, financing and construction before visible results appear, particularly in neighborhoods where traditional financing remains difficult to obtain.
What Happens if Voters Approve or Reject It?
A yes vote would continue the existing one-eighth-cent sales tax for another 10 years, allowing the program to continue funding redevelopment projects within the Central City district through 2037.
A no vote would allow the tax to expire in September 2027, ending the dedicated funding source unless a new funding source is approved in the future.
Ultimately, Kansas City voters aren’t deciding whether to create a new tax. They’re deciding whether one of the city’s largest long-term efforts to rebuild historically underserved neighborhoods should continue into its next decade.
