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Downtown economy grows by 45%

June 2, 2009 | 2 Comments

downtown logoKevin Collison reports in the KC Star that the Downtown Council is trumpetting numbers showing that the Downtown economy has grown 45% since 2001, vs. 33% growth city-wide. Those numbers include city revenue from earnings taxes, sales taxes, business licenses, etc.  However, much of the earnings tax growth Downtown was due to heavily subsidized developments relocating workers from elsewhere in the city. And a lot of the growth in sales and restaurant taxes probably shifted from other city neighborhoods as well.

The true test of the massive investment Downtown will be over the long term as we see if it can pull in new revenue from outside the city – attracting businesses back from the suburbs and from outside the region, as well a growing new businesses from start-ups.

Categories: Business, Downtown


Comments

2 Comments so far

  1. Tony on June 2, 2009 10:43 am

    So, just from your post, I learned that Downtown economy grows by way of expensive giveaways and hurts business from the rest of Kansas City. All in hope that someday new business will grow.

    I guess that’s a good plan? Is there any contingency if it doesn’t work? Or do we just skip to talking about billions for light rail?

  2. Sarah on June 2, 2009 2:28 pm

    I hope light rail comes in. I was in Denver last weekend and boy does Kansas City’s downtown look sad. Here’s to hoping it will continue to grow.

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