Chairperson Bowers opened the hearing on HB2737.  Jason Long, staff revisor, presented a briefing on the bill and responded to questions from the Committee.

Chairperson Bowers recognized Blaine Finch, representing Hageman Capital, to make comments and introduce their client.  Mr. Finch responded to questions from the Committee before introducing Xiao Ou Yuan.  Mr. Yuan testified in support of HB2737 indicating the bill refines an existing economic development tool that brings private capital in while keeping financial risk off of local governments.  Mr. Yuan explained that Tax Increment Financing (TIF) is used when a property generates relatively little in property taxes.  Mr. Yuan stated the bill modernizes how TIF projects can be financed.  He indicated it keeps risk aligned with the private parties benefiting from the development and gives cities flexibility to support development without requiring participation.  (Attachment 1)

Mr. Yuan responded to questions from the Committee.

Nathan Eberline provided neutral testimony for HB2737. Mr. Eberline indicated the flexibility and different opportunities for funding sources in this bill is appreciated.  He stated they are neutral on the bill due to a slight shift in how cities operate and their function in this type of role.  Mr. Eberline explained they wanted to raise the considerations of being on a slightly different role from an administrative standpoint for cities that work with developers that choose to use this operation.  He indicated there will need to be some different type of instruction and clarity on how those roles will look.  (Attachment 2)

Mr. Eberline responded to questions from the Committee.

Written neutral testimony for HB2737 was submitted by:

• Kelly VanZwoll, Senior Vice President-Government Relations, Kansas Bankers Association  (Attachment 3)
• Cale Beam, Kansas Credit Union Association  (Attachment 4)

Chairperson Bowers closed the hearing on HB2737.