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All Kansas Cities

Neighborhood Revitalization Act

KSA 12-17, 114 et seq.

 

Adoption of a plan under the act allows for the rebate of taxes due to increased investment in structures inside the plan area resulting from improvements to a property.  Two or more taxing entities may agree to such rebates pursuant to an interlocal agreement.

 

 

 

Neighborhood revitalization area – defined in KSA 12-17,115 c (1), (2) & (3).

Governing Body must designate an area as a neighborhood revitalization area.  Prior to designating an area, governing body must adopt a revitalization plan – KSA 12-17,117.  Such plan can include proposals for improving and expanding municipal services.

Must define what properties are eligible for tax rebates and the amount and length of rebate.  Hearing must be held prior to plan adoption.

A neighborhood revitalization fund must be created.

Taxpayer who actually pays the taxes is eligible for the rebates, regardless of who may have originally redeveloped the property. 

Attorney General Opinion 96-84.

Bonner Springs

Neighborhood Revitalization Plan

Application

Marcia Ashford, Director of ED

913-667-1703

marciaa@bonnersprings.org

Offers two NRP plans

Must increase value of residential, multi-family and historic properties 5% and commercial/industrial 15%

**If 90 days delinquent in paying property taxes twice during eligibility of rebate, any remaining eligibility will be terminated. 

Minimum investment appraised must be $140,000-did not want manufactured homes

Plan has been very successful.  Increased development in older areas, dilapidated structures torn down.  Helped home builders sell easier.  Modeled program after Topeka. City staff hours-minimal, just took awhile to set up Plan. 

Problem-rental property, solved by putting owner occupancy requirement in Plan.

De Soto

Neighborhood Revitalization Program

Interlocal Agreement

Kim Gordanier, City Planner

785-583-1182 ext. 115

kgordanier@desotoks.us

Interlocal agreement

5% increase in value required 

10-year commercial abatement period, 5-year residential abatement period

Plan has brought limited success. Only do about 1-2 projects a year.  Problems with promotion. Very little staff time spent on program (about 20 hours a year)

El Dorado

Neighborhood Revitalization Plan

 

http://www.eldoks.com/compappd.html

Neighborhood stabilization strategies for various Kansas cities.

 

Susan Evenson

316-321-9100

sevenson@eldoks.com

City offers certain incentives including property tax rebates for certain improvements or renovation of property within the designated area. 

Last years appraised value over 8 million.  Made condemned property and any housing in grant program eligible for NRP even though not in boundaries. County gets 5% of rebate. Up for renewal every 3 years, started in 1996. 

~88 projects since beginning

50 hours staff time per year (on city level)

Emporia

Neighborhood Revitalization Plan

Interlocal Agreement

Patty Gillign

620-343-4291

pattygillign@emporia.ws

Property improvements which increase total property appraised value, upon and after successful application, shall be deemed eligible for a rebate of the ad valorem taxes generated by the incremental value added to the property’s tax prior to improvements. 

County keeps 5% of rebate

Enabled a lot of people to benefit, noticeable differences made by Plan.  Boundary issues-complaints about being right outside of boundaries.

Very little city staff time spent on Plan.    

Hutchinson

Neighborhood Revitalization Plan  Operating Procedures SOP

Ed Bible

620-694-2635

edb@hutchgov.com

Also has funded a Downtown Hutchinson Revitalization Partnership program. 

Interlocal agreement

Significant amount of building permits taken out. 

Review plan every 3 years. 

~2 hours of staff time a week spent on Plan. 

36 projects since Jan ’06.  Total building permit value-$12 million since 1997.

$5,753,500 investment for Jan ’06-present. 

451 projects under plan since 1997 (beginning of Plan).

Independence, MO

Independence Square Revitalization Plan

 

Several incentives for reinvestment in redevelopment areas utilized by the City of Independence are excise tax credits.  The city accesses an excise tax on new development which generates increased traffic.  Revenues are used to fund street improvements.  However, projects may receive up to 100% credit City when located in a designated redevelopment area.

 

 

Kansas City, KS/Wyandotte

http://www.wycokck.org/gen/wyco_generated_pages/index.html

Application

Interlocal Agreement

Neighborhood Revitalization Plan

Documents

Frank Viscek

913-573-5733

Fviscek@wycokck.org

Taxes must be paid when due for the rebate to be issued.  Rebate is either 5 or 10 years depending on type of structure for residential, 10 years for non-residential.

Non-residential, minimum investment is 15% increase in assessed value.  Residential 5% increase in assessed value required, 15% if 5+ unit structure.  Non-residential 50% rebate, Residential 95%, except historic designation gets 100% rebate. 

 

Problem:  Promotion issues with plan.  Set aside $ for promotion & spurred building.  Internal problems (coordination between all departments involved)

Staff time-4-5 hours a week

 

 

Lansing

Neighborhood Revitalization Plan 

Brochure

Sunshine Petrone

913-727-3233

petrone@lansing.ks.us

Minimum investment of $5,000 for residential, $10,000 for commercial/industrial

Residential gets 5-year rebate, industrial/commercial 10-years.  95 % rebate for residential, varies through 10-year period for industrial/commercial

Very Successful, began in 2002.

Revised in 2005, annexed more area so added more property to Plan.

Leavenworth

http://www.lvks.org/preservation_incentives.htm

Application

Mark Werthmann

913-680-2680

mwerthmann@firstcity.org

All new taxable improvements can receive a rebate of 95- percent of the property taxes levied against the new improvements each year for five years

Started in “96, renewed in “01 for 10 years. 

Has provided $14 million in additional investments.

2 hours a week staff time at city level

Lenexa

lenexa_plan_draft.doc

Molly Deckert

913-477-7553

mdeckert@ci.lenexa.ks.us

For the last 20 years, Lenexa has earmarked CDBG funds for improving streets, sidewalks and storm sewers in the original town.

 

A Lenexa City Council goal for 2006 is to consider the establishment of a neighborhood revitalization district for older areas in Lenexa in which a property owner who redevelops a property annually receives a rebate check of the portion of taxes paid on the improvements made to the property. 

Property Type

Refundable Application Fee*

Percent of Rebate

Length of Rebate

Single Family and Two Family Residential

$25

85%

10 years

Multi-Family Residential

$100

75%

10 years

Commercial

$100

75%

10 years

 

 

Lenexa is also looking at the possibility of putting developed areas into a TIF district for redevelopment purposes

 

Staff is currently tweaking the program based on the Governing Body’s comments and hope to present the second draft of the program in August or Sept.  Once approved, next steps included drafting an interlocal agreement with the other taxing jurisdictions and the JoCo Appraisers Office as well as being out public outreach so that our resident are informed of the program and its benefits

Lewis

Neighborhood Revitalization Plan

 

Neighborhood Revitalization Program is a way to receive up to a five-year rebate on the increased tax actually paid as a result of new construction or rehabilitation projects. 

Minimum investment required is $5000

Retain 10% of rebate for administration of program

 

Merriam

TIF Policy  

 

Certain costs of improvements within the TIF District may be reimbursed to the developer or paid through the issuance of special obligation bonds or full faith and credit bonds. 

 

Mission

TIF Policy  

 

Certain costs of improvements within the TIF District may be reimbursed to the developer or paid through the issuance of special obligation bonds or full faith and credit bonds. 

 

Newton

Brochure

 

Tim Johnson

316-284-6014

tjohnson@newtonkansas.com

The Neighborhood Revitalization Program is a way to receive up to a ten-year rebate on the increased taxes actually paid as a result of new construction or rehabilitation projects in the Neighborhood Revitalization Area (NRA). 

Improvements must increase the appraised value of the property by at least 15% or $5,000, whichever is greater. 

5-year rebate for residential rehab or new residential.  10-year rebate for commercial & industrial.

Has helped developers in area

Rehab dominates, residential dominates. 

109 projects from ’98-’05.

12 projects done since Jan ’06.

Based on League’s model.

40-50 city staff hours a year spent on program.

Renewed program and now it is a permanent ordinance

Olathe

Redevelopment Districts has adopted a TIF policy.  Resolution  TIF Process

 

 

 

Overland Park

Have adopted special zoning designation for residential infill development.  Code

 

Zero lot line subdivisions allowed.  Minimum lot area reduced to 4,250 sq. ft.  Design guidelines also adopted.

 

Parsons

Application

Brochure

Carolyn Kennett, Economic Development Director

620-421-7030

ckennett@parsonsks.com

 

 

Pittsburg

Neighborhood Revitalization Plan

Application

Deena Hallacy

620-232-1210 ext. 461

 

Minimum investment in residential of $5,000 and $10,000 for commercial/industrial.

Rebate of 100% of the total increase in assessed value for 5 years. 

Plan has been pretty successful. 

Took block groups (houses older than 50 years) to draw boundaries.

A lot of staff time spent on setting up program, now not much time.

Modeled program after Parsons

Salina

Brochure

Application

Handout

Interlocal Agreement

Notification Letter

Neighborhood Revitalization Plan

Judith Brengman

-Irvin

785-309-5760

Judy.irvin@salina.org

Rebate ranges from 50 to 100% for the first five years then 25 to 50% for the remaining 5 years.

Property improvements must cost $10,000 and increase value by 10% for residential and cost $20,000 and increase value by 20% for commercial/industrial.

Require a submittal appointment, only lasts about 10 minutes.

Plan has been successful.  ~40 projects in 2005. 

Functional problem-challenge to set up communication between people implementing and issuing permits.

 

Shawnee

Neighborhood Revitalization Plan pursuant to the Kansas Neighborhood Revitalization Act. 

 

 

Interlocal agreement part of the plan.  Area designated for revitalization.   Proposed land uses included in the plan.  CIP projects included. On-going repairs included street, sidewalk and downtown streetscape improvements.

Eligible properties include new and existing residential and commercial structures.

Neighborhood Revitalization Fund created to distribute rebates from.

Rebate period of 10 years.  Remodel – 90% rebate, new construction 50%. 10% of rebates stay in the fund.

Overall successful, fairly new program for city.  Large number of people participating, large scale improvements made by companies.

Small amount of staff time spent on Plan

 

Shawnee

Downtown Improvement Program program created in November 2004 by the City of Shawnee to encourage downtown investment.  Brochure  Two components – grant program and a subsidized loan program.

 

 

Program is funded out of the general fund.  Program improvement boundaries created.  $2,000 & $5,000 grants available – must be businesses or commercial zoned properties.  Projects in the pedestrian zones eligible for $5,000 grant.  Total costs of improvements must be at least $10,000.  For the $2,000 grants, total costs of the improvements must be at least $5,000.  Loan program – loans between $5,000-$25,000 available at 1.5% below the prime rate.  The City subsidizes the discount.

 

Tonganoxie

Neighborhood Revitalization Plan

Application Part A

 Application Part B

Kathy Bard

913-845-2620

cityclerk@tongie.org

Tax rebate for repairs or improvements.  Residential and commercial/industrial remodels-95% for 5 years. 

For new construction industrial and commercial, 50% rebate, periods is determined by amount of investment.

More successful in regards to development.

Not as successful in residential arena.

Very little staff time spent on Plan.

18 applications since ’98, extended program 5 years in ’03.

DeSoto/Bonner Springs used for revision in 2003.

Topeka

Brochure

Tim Paris

785-368-3728

tparis@topeka.org

 

**SENDING INFORMATION

 

Up to 80%rebate over 10 years may be given on the incremental increase in property taxes resulting from improvements made to a property in those targeted areas.  Qualified improvements include any construction, rehabilitation or additions that increases the appraised valuation of the property by more than 10% for residential and 20% for commercial as determined by Appraiser’s Office. 

*Historic preservation program offers an additional benefit to structures listed on the National, State or Local Registers.  Qualifying projects will receive a 100% rebate for 15 years. 

**Owner occupancy requirement.  Cannot build new homes to rent, must be owner occupied.

Plan started in 1995.  Millions of dollars in investments made in eligible areas. 75% residential, 25% commercial. 

Contract with county, compensate them for doing majority of the work.

Most applications rejected b/c of owner occupancy requirement. 

Minimal staff time, probably 2 months out of the year, consumes 80% of time.