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Economic Development Incentives
The public-private economic development partnership between El Dorado, Inc. and the City of El Dorado began in 1987. El Dorado, Inc. is a membership organization and is governed by a Board of Directors made up of local business leaders, banks, utilities and representatives appointed by the City of El Dorado Commission.
The City of El Dorado and El Dorado, Inc. work to be a partner to all new and existing El Dorado businesses. Assistance includes helping businesses get accurate information, while streamlining the development process. This partnership can also help identify resources and available opportunities.
There are a number of economic development incentives available for development in El Dorado.
Community Improvement Districts (CID) allow the governing body to levy additional taxes to fund improvements in a designated area. The taxes are derived from retail sales or special assessments on real property within the designated district. CIDs may impose an additional retail sales tax of up to 2% or a special assessment tax on real property with the district for up to twenty-two years. CIDs can be used for commercial, industrial or mixed-use projects. CID tax revenue can be used to pay for a wide range of capital costs and certain on-going operating costs.
Who is eligible?
CIDs can be used for commercial, industrial, or mixed-use projects.
How to apply?
Submit petition to the City Manager's office. Petition must be signed by property owners who own 55% of land area AND 55% of assessed property value in the proposed district.
| Current/Previous Recipient(s) | Address | Amount Authorized | Year Issued | Term of Incentive | CID Sales Tax |
|---|---|---|---|---|---|
| Days Inn (HRSP, LCC) | 3200 W. El Dorado Ave. | $3,134,244 | 2015 | 22 Years | 2% |
| American Realty (Strip Mall with Dollar Tree) | 2710 W. Central Ave. | $1,648,700 | 2017 | 22 Years | 1% |
| Central Kansas Properties | 3100 W. El Dorado | $1,100,000 | 2017 | 22 Years (terminated in 2024) | 2% |
| Baymont Inn (Navni Services, LLC) | 2525 W. Central Ave. | $1,110,000 | 2017 | 22 Years | 2% |
| Super 8 (West Hill Holdings, LLC) | 2530 W. Central Ave. | $1,850,000 | 2020 | 22 Years | 2% |
| El Dorado Plaza Shopping Center, LLC | 2300-2400 W. Central Ave. | $3,325,000 | 2023 | 22 Years | 1% |
The Community Development Block Grant is a commercial rehabilitation grant program by the State of Kansas to help cities improve the quality of their downtown commercial districts by assisting private property owners in the rehabilitation of blighted buildings. It is hoped the strategic investment of grant funds will help prevent the spread of blighted conditions to other nearby structures. Improvements are limited to: exterior of the building, abatement of asbestos and lead-based paint hazards and correction of code violations. The City is the applicant for the grant.
Who is eligible?
A recipient must have a privately owned commercial or industrial building. Eligible projects must meet at least one of these national objectives: prevention of elimination of slums or blight and/or job creation/retention. Eligible activities include: building rehabilitation for code violations, historic preservation or building renovation for job creation.
How to apply?
Contact Engineering for coordination of application.
| Current/Previous Recipient(s) | Address | Amount Authorized | Year Issued | Term of Incentive | Grant or Abatement |
|---|---|---|---|---|---|
| Ensminger | 142 N. Main St. | $247,950 | 2019 | NA | Grant |
Economic Development Exemptions (EDX) offer businesses a tax exemption for improvement to land and buildings for up to ten years. The percent of the exemption is based on the number of jobs created and capital investment. Exemptions can be made for up to ten years, depending on the current City Commission tax abatement policy. (All new business equipment is permanently exempt under state law.)
Who is eligible?
Eligible businesses: manufacture of articles of commerce, conduct research and development, or store goods or commodities sold or traded in interstate commerce.
How to apply?
Contact Engineering Office to coordinate process of Cost Benefit Analysis.
| Current/Previous Recipient(s) | Address | Year Issued | Term of Incentive | Financing |
|---|---|---|---|---|
| Confab | 630 N. Metcalf Road | 2020 | 10 years | 100 percent |
| Owens Construction Inc | 530 N. Metcalf Road | 2020 | 10 years | 100 percent |
Through an Industrial Revenue Bond, the City of El Dorado may grant qualified businesses a property tax abatement of up to 85 percent of the new real property taxes for up to ten years. This is based on the economic impact of the project, jobs created and the current City of El Dorado adopted tax abatement policy. Benefits include: favorable interest rates; financing for land, building, equipment, architectural and legal fees; and sales tax exemptions for buildings and fixing equipment funded with IRBs.
Who is eligible?
A new business or a growing business’s land, buildings and equipment.
How to apply?
Contact the Engineering Office.
Current Recipients
| Current/Previous Recipient(s) | Address | Year Issued | Term of Incentive | Financing |
|---|---|---|---|---|
| HRSP, LLC | 3200 W. El Dorado Ave. | 2017 | 10 years | 100 percent tax abatement |
| BG Products | 1225 N. Haverhill Road. | 2020 | 10 years | 100 percent tax abatement |
| Gordy Heritage LLC | 200-211 N. Gordy | 2022 | 17-20 years | Pilot for $50,000 per year |
The Moderate Income Housing (MIH) program serves the needs of moderate-income households that typically don’t qualify for federal housing assistance. MIH grants and/or loans are awarded to cities and counties with populations fewer than 60,000 to develop single or multi-family properties for homeownership or rentals. Projects can be for new construction, rehabilitation, or conversion from another use. (MIH) program serves the needs of moderate-income households that typically don’t qualify for federal housing assistance. MIH grants and/or loans are awarded to cities and counties with populations fewer than 60,000 to develop single or multi-family properties for homeownership or rentals. Projects can be for new construction, rehabilitation, or conversion from another use. The city is the applicant.
Who is eligible?
Builders and developers.
How to apply?
Contact the Engineering Office to coordinate the application.
The Neighborhood Revitalization Program is intended to promote the revitalization and development of certain properties within the City of El Dorado in order to protect the public health, safety and welfare of the residents of the city. More specifically, the City will offer property tax rebates for certain improvements or renovation of property. The rebate for increased appraised value is for a maximum of five years and 95 percent tax rebate.
Who is eligible?
Eligible commercial properties include those that are condemned, as well as any future properties that qualify for a City of El Dorado rehabilitation grant program through a description of blight, health or safety issues, or grant programs established and qualified by the City of El Dorado. In addition, buildings 25 years or older, meeting the dilapidated structure description and determined by the City Building Inspector's Office can petition to be included in the program. Properties also must show a minimum increase of at least 15 percent ($10,000) or greater of the investment valuation as determined by the building permit value.
How to apply?
An application can be obtained from the City's Engineering Department. Prior to the commencement of construction or any improvement for which a tax rebate will be requested, the property owner will complete Parts One and Two of the application, as well as get a permit from the City Building Inspector's Office. There is a non-refundable $25 application fee.
| Current and/or Previous Addresses | Business Type | Years | Appraised Value | Assessed Value | 2023 Rebate |
|---|---|---|---|---|---|
| 737 Gordy St. | Warehouse | 2023-2024 | $171,960 | $42,990 | $7,053.92 |
| 650 W. Sixth Ave. | Office | 2019-2023 | $431,040 | $107,760 | $17,681.58 |
| 114 E. Tenth Ave. | Warehouse | 2019-2023 | $286,840 | $71,710 | $12,215.58 |
| 1464 W. Sixth Ave. | Office/Warehouse | 2014-2023 | $242,060 | $60,515 | $9,929.48 |
| 630 N. Main St. | Retail | 2014-2023 | $384,740 | $96,185 | $15,782.32 |
| 202 W. Fifth Ave. | Warehouse | 2015-2024 | $338,540 | $84,635 | $13,887.18 |
| 223 N. Main St. | Warehouse | 2022-2024 | $12,930 | $3,232.50 | $530.31 |
| 220 W. Central Ave. | Office | 2014-2023 | $619,000 | $154,750 | $25,391.86 |
| 112 W. Central Ave. | Office | 2020-2024 | $176,060 | $44,015 | $7,222.11 |
| 106 W. Central Ave. | Retail | 2021-2024 | $102,190 | $25,547.90 | $4,191.99 |
| 109 N. Main St. | Retail | 2023-2024 | $61,590 | $15,397.50 | $2,526.55 |
| 625 N. Washington St. | Service | 2014-2023 | $99,160 | $24,790 | $4,067.62 |
| 117 W. Central Ave. | Commercial/Housing | 2014-2023 | $27,160 | $6,790 | $1,114.12 |
| 120 S. Gordy St. Ste. 1 | Service | 2020-2024 | $31,831 | $7,957.75 | $1,305.77 |
| 120 S. Gordy St. Ste. 3 | Service | 2020-2024 | $78,208 | $19,522 | $3,208.14 |
| 120 S. Gordy St. Ste. 4 | Service | 2020-2024 | $28,151 | $7,037.75 | $1,154.84 |
| 323 S. Main St. | Retail | 2023-2024 | $45,390 | $11,347.50 | $1,862 |
| 317 S. Main St. | Retail/Housing | 2014-2023 | $57,260 | $14,315 | $2,414.33 |
| 313 S. Main St. | Retail | 2020-2024 | $8,370 | $2,092.50 | $343.25 |
| 114 W. Locust Ave. | Service | 2015-2024 | $11,770 | $2,942.50 | $482.73 |
| 111 W. Locust Ave. | Retail | 2016-2024 | $42,630 | $10,657.50 | $1,748.79 |
| 623 N. State St. | Service | 2021-2024 | $245,360 | $61,340 | $10,064.84 |
Ad valorem (real property) taxes can be abated for up to ten years by resolution of the City or County Commission, for businesses meeting certain criteria set by either commission.
Who is eligible?
Property associated with a new business, or expansion of existing business that creates new employment.
How to apply?
Contact the Engineering Office.
Tax Increment Financing (TIF) finance redevelopment projects or other investments to stimulate economic development. It's a local government tool that can be used to target development in specific areas. It captures new tax dollars to fund needed public improvements that would not otherwise have occurred. Under Kansas law, funds may only be used for public infrastructure improvements or demolition of existing structures and can be for up to twenty years. Funding cannot be used for private building construction.
Who is eligible?
Areas eligible for a TIF include: blighted areas, conservation areas and enterprise zones, all within the city limits.
How to apply?
Contact the Engineering Office for coordination of district designation.
| Current/Previous Recipient(s) | Address | Year Issued | Term of Incentive | Capital Investment |
|---|---|---|---|---|
| Orscheln Farm and Home | 2908 W. Central Ave. | 2020 | 20 years | $6 million |