The Port Improvement District (PID) is a new economic development tool which provides bonding capability for projects within designated districts using sales and use taxes and/or real property taxes to pay off the bonds. For more information, please see sections 68.20 through 68.60 of the Missouri Revised Statutes.
Projects where the PID will be most useful are projects where development or redevelopment involves environmental cleanup, energy conservation, or building efficiencies.
Eligible areas for the PID are those involving the acquisition, operations, maintenance, rehabilitation or construction of any building or infrastructure determined by Port KC to be significant in or in furtherance of history, architecture, archaeology or culture of the country, state, or any political subdivision of the state of Missouri.
The taxes accessible through the PID are additional Real Property Tax (RSMo 68.235) and additional Sales and Use Taxes up to 1 percent in 1/8 percent increments (RSMo 68.245).
Costs eligible to be paid with these tax revenues are very broad and include studies, plans, surveys, professional services, administrative fees, land acquisition, demolition, grading, construction of new buildings, rehabilitation of old ones, repair, financing costs, relocation costs, and other expenses (RSMo 68.205). There is not necessarily a maximum time period for the redirection taxes to run.
The PID district is created by filing a petition approved by the Port KC board and presented to the County Circuit Court. The levying of taxes within the district must be voted by registered voters living in the district, or if there are no voters living in the district then by the property owners. Once passed, Port KC has the capability to issue revenue bonds or notes (RSMo 68.040.1).