KC council passes tenants bill of rights; trims tax incentives proposed for Waddell & Reed

A full house of supporters cheer after the Kansas City City Council passes a tenants’ bill of rights at City Hall Dec. 12. In a separate issue impacting Kansas City public schools, the council voted to take more time to weigh tax incentives proposed for Waddell & Reed’s relocation to downtown KC.

UPDATED with the City Council’s vote to approve a trimmed-down incentive package for Waddell & Reed

It wasn’t close. A tenants bill of rights sailed to overwhelming approval by the Kansas City City Council Thursday as a full house of supporters — many of them renters with their own histories of housing struggles — cheered the fruits of their work.

“This is good policy made the right way,” KC Tenants founder Tara Raghuveer said, “with the people impacted leading.”

Kansas City Mayor Quinton Lucas said in a written statement that the entire community “should be proud of our KC Tenants Rights package.”

The policy will support and comfort the nearly half of all Kansas Citians who rent their homes and deserve “safe, quality and affordable housing,” the mayor said.

“This process is an outstanding example,” Lucas said, “of how legislating should always be done — through crafting smart and deliberate policy, providing ample opportunity for community input, and compromising to bring both tenants and landlords to the table.”

A key compromise helped the legislation package come out of the council’s Special Committee on Housing Policy and pass through the full council. The main resolution passed 12-to-1 with only First District Councilwoman Heather Hall voting no.

The bill of rights initially barred housing discrimination based on source of income — including tenants who rely on housing vouchers from the Federal Section 8 program. The compromise gives landlords the ability to opt out of participating in such a subsidy program.

But a host of other protections are solidified, including prohibitions against discrimination based on race, color, religion, national origin, sex, disability, marital status, sexual orientation, gender identity, conviction or arrest history, and rental history.

Robert Long, president of Landlords Inc., told The KC Star that the amended bill of rights had become “far more tolerable,” but expressed concern that the new legislation may still threaten the viability of some landlords who will have to determine if they can still do business in Kansas City.

KC Tenants rallied in freezing temperatures outside City Hall Oct. 30

Most of the crowd was ecstatic that KC Tenants, in less than a year as a renter-led organization, had mobilized a movement that moved its bill of rights from the drawing board and into city policy in six weeks.

LINC previously collaborated with Rhaguveer in creating the KC Eviction Project which developed data and other information that ultimately would help drive the tenants bill of rights.

Among the Eviction Project team’s work, it has partnered with the Kansas City Public Schools and Legal Aid of Western Missouri to use housing court eviction data to help vulnerable families avoid eviction and strengthen school attendance.

Council to take a longer look at proposed tax breaks for Waddell & Reed relocation

Many people in Thursday’s overflowing City Council audience came to see if the city would approve tax incentives for Waddell & Reed’s proposal to move to downtown.

But, with the Kansas City Public Schools having mounted a public campaign raising concerns about the proposal, the City Council voted to hold off at least a week.

An amended proposal was voted onto the table — cutting the tax abatement in years 11 through 15 of the package to 37.5% down from 75%. The change, which will be debated this week, would essentially cut $5 million from the overall $44 million in local incentives Waddell & Reed, a financial firm currently headquartered in Shawnee Mission, is seeking.

The bid also comes with $62 million in state incentives.

Ahead of Thursday’s meeting, Kansas City Public Schools issued a statement arguing that the proposal would deprive the school district and public charter schools in the district of some $15 million in revenue.

“This request is simply too much for a project lacking financial transparency and accountability,” the statement said.

The district has proposed that the tax abatement period be limited to 10 years instead of 15, cutting the incentives from $106 million to $96 million. The $10 million the districts and charters would gain could be used for additional pre-K classrooms, counselors for trauma support, expansion of the district’s Early College Academy and other academic supports, the district said.

“We are now asking the City Council to re-evaluate the proposal,” the district said, “and negotiate a more beneficial package for Kansas City’s children.”

UPDATE: Dec. 19, the City Council by an 8-to-4 vote approved a trimmed-down incentive package for Waddell & Reed.

According to The Kansas City Star:

Originally, Waddell & Reed was set to receive $44 million in local incentives, including a 10-year 75% property tax abatement. That package was reduced slightly last week, but negotiations for even more funds for schools continued.

The deal that emerged Thursday, according to KCPS, reduced the original incentive by $8.6 million, giving Waddell & Reed an overall local package worth about $35 million. The property tax abatement was reduced to a six-year 75% deal followed by nine years at 37.5%. That’s worth about $19.8 million. Waddell & Reed will also benefit from a sales tax exemption on construction materials worth about $2.7 million and a redirection of earnings taxes and utility taxes worth about $13 million.

All in all, Waddell & Reed will receive just shy of $100 million in incentives.

KCPS issued a statement after the vote:

When Kansas City Public Schools and our elected officials can work together to serve kids, it demonstrates the willingness to support not only public education but the wellbeing of our students, families and the entire community. We are grateful for Mayor Lucas, the City Council and those behind the scenes who ushered in good faith efforts to reduce the incentive package in favor of stronger support for our school system and city services.

We have been advocates for incentive reform and have shared feedback with the Mayor and the Council throughout this past fall. We appreciate their acknowledgement of these conversations.

“Our team and I look forward look to continued collaboration with Mayor Lucas, our elected officials and the Economic Development Corporation to ensure that our incentive programs achieve equitable consideration,” Superintendent Dr. Mark Bedell said.

We welcome Waddell & Reed to Kansas City.