KCTribune: Circuit City's problems lead to city problems: "Now that Circuit City may not become the anchor tenant, the City of Merriam may be left with a TIF developed shopping center with no tenants and no revenue. In 2007, the City of Merriam budgeted for over $600,000 in revenue from this project and another TIF incentive development, Merriam Pointe, across I-35, which is owned by David Block and David Christie. Neither property has produced any revenue to date, according to Leap.
“The current City Council put a lot of eggs in that basket – giving a TIF incentive for 30 acres, and they now want another tax incentive, a TDD, and they don’t even have an anchor tenant. The City of Merriam just had to raise the property tax for residents 6 mils, which is unheard of.” said Leap.
A TDD is similar to a CID (Community Improvement District) sales tax in Kansas City, which adds an additional percentage to the sales tax collected in a designated area, and is usually reserved for underdeveloped or blighted areas. In Kansas City, a CID must be approved by 51% of the stakeholders in the requested area, whereas a TDD can be requested by a single developer."
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The article says that Circuit City is likely to file for bankruptcy.
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