Audits to examine taxpayer dollars spent on Independence Event Center and Ward Parkway Shopping Center in Jackson County
JEFFERSON CITY, Mo (Oct. 13, 2016) Missouri State Auditor Nicole Galloway has announced her office will begin reviews of finances and operations of two of the largest Community Improvement Districts (CIDs) in the state, both located in Jackson County: the Independence Events Center CID in Independence and the Ward Parkway Center CID in Kansas City.
Community Improvement Districts offer financial incentives, through property and sales tax collections, with the intent of encouraging new growth and development in a specific area. The goal is to encourage enhancements that will benefit the community as a whole. Of the 300 known Community Improvement Districts in Missouri, there are about 50 located within Jackson County.
“As with any investment of public dollars, there must be accountability. With the additional authority granted to my office to audit Community Improvement Districts, I have committed to providing full transparency and oversight for the public dollars that fund them,” Auditor Galloway said. “There are many legitimate and worthy projects across the state that depend on funds provided through Community Improvement Districts, and it’s my goal to ensure the supported projects fulfill their intended purpose of improving Missouri’s communities, and their promise to taxpayers that the money will be used appropriately and in accordance with the law.”
The Independence Event Center Community Improvement District was established in 2007 to fund the construction of the Independence Event Center, a nearly 6,000 seat arena that was completed in 2009. The arena is owned by the city of Independence, and is located just southeast of the I-70 and I-470 interchange. In addition to the arena, the district includes the shops at Bolger Square, Independence Commons, Hartman Heritage Center, Eastland Center and Independence Center Mall. The district collected $5.6 million in taxes in 2015, which makes it the largest Community Improvement District in the state.
The Ward Parkway Center Community Improvement District was established in 2011 to help fund renovations to it’s namesake Ward Parkway Shopping Center in Kansas City. The district stretches between Ward Parkway and Stateline Road and runs north and south from 85th to 89th Street. The district collected $1.5 million in 2015.
These CID audits mark the first since House Bill 1418 went into effect in August. The new law allows for greater oversight and accountability of Community Improvement Districts by providing the State Auditor with the authority to audit CIDs without requiring citizens to initiate the audit through the petition process. Prior to the new law, citizens could only request an audit through the petition process, and only if they lived in the district. Due to the commercial nature of many CIDs, some do not have any residents, which meant they were not generally eligible for citizen requested audits.
The CID audits will include reviews of finances and operations for the districts, including compliance with the established district rules and the law, and adherence to financial and operating best practices for public government bodies. Individuals who would like to provide information for consideration during these audits may contact the State Auditor’s Whistleblower Hotline at 800-347-8597 or by email at moaudit@auditor.mo.gov.
These audits are part of an ongoing focus on increasing transparency and accountability for special taxing districts in Missouri. Earlier this year Auditor Galloway launched the online Show-Me Local Government Map to promote transparency in government finances and operations. In addition to the CID audits, a statewide report on Transportation Development Districts (TDDs) and an audit on Tax Increment Financing (TIF) district practices are underway.
