Salina Commission Votes 4-0 to Allow TIF Funds for Theatre Salina Expansion

The Salina City Commission approved a change to its Downtown Master Development Agreement that will allow downtown Tax Increment Financing (TIF) funds to be used for an expansion project at Theatre Salina.

The measure passed 4-0.

City staff explained that downtown redevelopment is governed by a complex agreement involving several economic development tools, including STAR Bond funds, TIF funds and Community Improvement District funds.

Under the existing structure, money being generated in the downtown TIF is currently going into a New Business Development Fund. Theatre Salina, however, is not a new business, meaning the proposed expansion did not fit the existing requirements for use of that fund.

The supplemental agreement approved by commissioners changes the development agreement to allow the Theatre Salina project to receive funding.

Salina 2020 Supports Continued Downtown Investment

During public comment, Guy Walker, speaking on behalf of Salina 2020, as well as Blue Beacon, 1858 Properties and Lighthouse Properties, urged commissioners to view the project as part of a longer-term strategy for downtown.

Walker said the downtown incentive districts are expected to expire roughly between 2037 and 2039, depending on when each district began. He said Salina 2020's goal has always been for downtown redevelopment to remain successful well beyond the life of those incentives.

Walker said Salina 2020 believes continued investment is important because downtown has experienced success, but he does not believe that means its long-term success is guaranteed.

“We really want to ensure that it continues to remain that way.”

Walker also pointed to Theatre Salina's impact on downtown activity, saying performances bring people into the district and benefit nearby businesses.

“When you go downtown on the night of a Theatre Salina show, the restaurants are full. There's people walking around.”

Walker said the same effect can be seen when the Stiefel Theatre hosts an event.

He also emphasized that the overwhelming majority of downtown businesses are locally owned.

“When we're supporting downtown, we're supporting our fellow citizens.”

Walker said Salina 2020 believes Theatre Salina's expansion will increase the organization's use by the community while bringing additional visitors downtown.

Walker also addressed the structure of the proposed funding. He said there is precedent for paying certain downtown incentives over time, but noted that those arrangements typically include approximately 5% interest. According to Walker, providing the Theatre Salina funding upfront would avoid those interest costs and potentially leave more money available in the TIF fund for future projects.

Michael Spicer Outlines Theatre Salina Expansion

Michael Spicer, executive director of Theatre Salina, also spoke in support of the project and outlined what the expansion would include.

Spicer said he is beginning his 29th year as executive director and noted that Theatre Salina was created in 1960, with its permanent home established at 303 E. Iron Ave. in 1972.

He said the new project would include a technical storage building connected to the existing facility, with an expansion on the stage-right side of the theater to provide additional room for set storage and movement.

The project would also add educational space, including:

Two new dance classrooms with natural light and sprung floors

A vocal performance studio

A lobby area for families

A study area for students

Spicer said Theatre Salina has continued to invest in its technical capabilities, including converting production lighting to LED and installing an LED array for projected scenery and animation.

He said the expansion is intended to address both technical needs and growing demand for educational programs.

“This funding is an investment that benefits the community in many ways.”

Spicer said Theatre Salina's Center for Theatre Arts has averaged about 350 student registrations per year since COVID and that the theater pays to bus more than 5,200 students to performances each year.

He also said the organization's policy is that no child is turned away from its education programs because of an inability to pay.

Spicer Cites Economic and Tourism Impact

Spicer also focused on Theatre Salina's economic impact.

According to Spicer, Theatre Salina has generated more than $9 million in direct spending in the local economy over the last decade and more than $335,000 in STAR Bond sales tax revenue during that same period.

He said theater patrons also spend money at restaurants, stores, attractions and hotels while visiting Salina.

Spicer said approximately 35% of Theatre Salina's audience comes from outside Saline County, with patrons coming from more than 145 Kansas communities and 28 other states.

He also said more than 425 volunteers contribute over 65,000 hours annually to help produce 14 live theater productions each year.

Spicer characterized Theatre Salina as a regional destination for both live theater and theater education.

“Theatre Salina is the only provider of this quality of theater and education between Topeka and Denver, from Wichita to Omaha.”

Final Vote

The commission approved the supplemental agreement 4-0.

Mike Hoppock — Yes

Trent Davis — Yes

Greg Lenkiewicz — Yes

Doug Rempp — Yes

Final vote: 4-0.