Living wage puts city, county at odds

Brace yourself for what could be another battle over the city’s living wage ordinance.

City and county commissioners at a study session Tuesday disagreed over whether the city ought to expand its living wage ordinance, which requires some companies to pay their employees several dollars more per hour than the federal minimum wage.

Currently, the ordinance only requires companies that received tax abatements after 2003 to pay the living wage, which currently is $11 per hour. But now the question is whether retailers and service businesses that receive financial or tax assistance from city government also should be required to pay the living wage.

“I think there is evidence that there has been significant disemployment occurring in some communities because of a living wage,” said City Commissioner Rob Chestnut. “Some jobs get pushed outside a community because they just can’t afford to be created.”

The question is a growing one because no longer are large manufacturing projects the only type of developments seeking economic development incentives from City Hall. More frequently retail projects are asking for special financing or special taxing districts.

For example, The Oread, a hotel project near Kansas University, is receiving special tax incentives called tax increment financing and a transportation development district. A proposed CVS drug store and other associated development at the northeastern corner of Sixth Street and Wakarusa Drive is receiving the benefit of a special taxing district.

If the living wage ordinance is expanded, businesses that locate in future developments that receive such public assistance would be required to pay all their employees $11 per hour or more.

Douglas County Commissioner Charles Jones is pushing for the expansion of the living wage.

“In this economy, the rich are getting much, much richer, and everybody else is falling further behind,” Jones said. “I don’t want jobs in this community just to make some executive richer. I want jobs because they enhance the community. I feel pretty passionate about looking out for the little guy in this process.”

The division isn’t split along city and county lines. City Commissioner Mike Amyx said he generally agreed with Jones. He said if projects receive tax breaks or other public incentives, they probably should pay the living wage.

But Chestnut said he is convinced some projects — like the $37 million Oread hotel project — would not have happened if the living wage ordinance were a factor.

Commissioners — who also discussed several other economic development topics — agreed to have another joint study session sometime this year to further discuss the issue.