Memorandum

City of Lawrence

Legal Services Department

 

TO: 

David Corliss,  City Manager

 

FROM:

John Jay Miller, Staff Attorney

 

CC:

Debbie Van Saun, Assistant City Manager

Toni Wheeler, Director of Legal Services

 

Date:

February 28, 2007

 

RE:

Hearing to adopt Neighborhood Revitalization Plan and Program  for the 8th and Pennsylvania District

 

On March 6th, the City Commission will hold a public hearing to consider the adoption of a Neighborhood Revitalization Plan and Program for the 8th and Pennsylvania District. Staff and the developer, Cinco Hombres, have prepared a proposed Neighborhood Revitalization Plan and Program, for the City Commission’s consideration which contains the statutory requirements for creating a Neighborhood Revitalization Area and Plan. 

 

A Neighborhood Revitalization Plan is required by The Kansas Neighborhood Revitalization Act, K.S.A. 12- 17,114 et seq., in order to establish a property tax rebate program to encourage improvements to property within the Revitalization Area.   The proposal would establish a plan and program for the redevelopment of the 8th and Pennsylvania District.  The basis of this plan is that this is an “area in which there is a predominance of buildings or improvements which by reason of age, history, architecture or significance should be preserved or restored to productive use.” K.S.A. 12-17,115.

As currently proposed by the Plan Cinco Hombres:

·         Would only be eligible for rebates on an amount no greater than the cost of the public and private infrastructure improvements.

·         The time frame to receive any rebate is twenty (20) years from the adoption of the plan.   

·         Plan is contingent upon the property owner in the Revitalization District entering into a Developer Agreement with the City.

·         Upon Approval of the Plan the Neighborhood Revitalization Fund will be established.

·         City Commission may change the plan as conditions policies or priorities change.

 

In conjunction with the Plan staff has prepared a draft Developer Agreement which will formalize the development, construction and implementation of the Neighborhood Revitalization Plan and the public and private improvements.  Staff and Cinco Hombres are finishing the details of the Developer Agreement and reviewing the legal issues involved in how the tax rebates to future owners of property in the Plan area are administered and factored into the maximum rebate limit for the public and private infrastructure improvements.

 

Cinco Hombres has informed staff that unless the other municipalities with taxing authority (Douglas County and the Lawrence School District) also agree to tax rebates the project will not be feasible.  Depending upon the outcome of the hearing, Cinco Hombres will seek tax rebate approval from the other municipalities.  If the other municipalities agree to approve rebates, staff will prepare interlocal agreements to include them as part of the Neighborhood Revitalization Plan.

 

The proposed Neighborhood Revitalization Plan and Program is attached for your review and consideration.  A draft Developer Agreement along with project estimates and a phasing exhibit is also attached for your review and would need to be approved at a future date.

 

Action Requested:  Hold public hearing, pending discussion and conclusion of the public hearing, direct staff to prepare an ordinance to adopt a Neighborhood Revitalization Plan and Program.