Economic development law comes under scrutiny for possible abuses

? Five years ago, legislators enacted a law to help spur construction of Kansas Speedway and development around it in Wyandotte County. Now, some of them wonder whether the law is being abused.

The law, first directed at the Speedway and later expanded, permits local governments to issue bonds, with the state Department of Commerce’s approval, for tourism and entertainment projects of statewide importance.

The Legislature’s Joint Committee on Economic Development reviewed the law Thursday. Some members wondered if it has permitted Wyandotte County to woo restaurants, major retail stores and entertainment businesses to the area around the Speedway, to the detriment of some potential competitors.

“Are we giving some private businesses an advantage over competitors in the local market?” asked Sen. Nick Jordan, R-Shawnee, the committee’s chairman.

But Mike Taylor, lobbyist for the Unified Government of Wyandotte County and Kansas City, Kan., said its use of some $457 million worth of bonds had created 4,000 new jobs and an area that now attracts up to 10 million visitors annually.

“There is a lot of competition,” he said. “It’s kind of the way the world works. If we don’t give them a deal, somebody else will.”

Some committee members saw a difference between floating bonds for the Speedway and retail stores or restaurants, noting that the Speedway is unique in Kansas, while retail stores and restaurants will compete against other businesses.

“With retail development, uniqueness becomes a real question,” said Sen. Pete Brungardt, R-Salina.

But Taylor said the restaurants and retail stores would be part of a “destination shopping experience” drawing visitors from up to 350 miles away