STAR Bonds: Museum of Art & Light

Sales Tax and Revenue (STAR) bond programs are a public/private financing tool available through the State of Kansas that allows municipalities to issue bonds to finance the development of major attractions, entertainment, and tourism projects, and use some of the state and local sales tax revenue generated within the district to pay off the bonds. This unique economic development tool provides a way for cities to not only boost regional and national tourism, but also create new jobs and increase tax revenues within their communities.

The owners of Master Teacher, Bob and Tracey DeBruyn, approached the City for a STAR bond project in the downtown area, just west of Manhattan Town Center on Third Street, to construct The Museum of Art and Light. After approved, they constructed a three-story, 50,000 square foot state-of-the-art museum featuring an immersive exhibit and interactive displays, creating a one-of-a-kind, hands-on, art and cultural attraction. The Atelier des Lumieres in Paris, France is a good example of the primary feature and attraction this museum brings to Manhattan. See a map of the expansion (PDF).

The project identified a total budget of $43,600,000 with STAR bond proceeds funding $23,000,000. The remaining roughly $21,000,000 came from private debt and equity. There was no expectation of the City to fund construction or operations beyond leveraging the STAR bonds and dedicating the City's share of sales tax generated in the District toward this project through 2026, at which time the City's STAR Bond District expires. Following District expiration, there is no financial obligation for the City, the developers will find private placement for the bonds.

The proposed site is now within the current STAR Bond district. In order to amend the District boundary and incorporate the museum into the District's plan, several Kansas statutes that govern STAR bonds had to be followed, including mailing notifications, studies, publications, conducting public hearings, and gaining final approval from the Kansas Secretary of Commerce. The City Commission approved several agreements in addition to following the two statutorily dictated processes below:

1. Expand the current STAR Bond District Boundary (PDF) (Approved March 15, 2022)
2. Amend the current District Project Plan (PDF) (Approved April 19, 2022)

See the Timetable (PDF) that details the City Commission action calendar for these two items.