City of
Neighborhood Resources
Department
MEMORANDUM
|
TO: |
Mike Wildgen, City Manager |
|
THRU: |
|
|
FROM: |
|
|
Date: |
|
|
Subject: |
Structural Blight Abatement / Neighborhood Revitalization Act |
At the
o initiation of a higher level of enforcement through staff reassignment,
o adding resources for a proactive structural blight abatement program, and
o development of a Neighborhood Revitalization program.
Initiate Higher Level of Enforcement
Currently the department employs
two Zoning Inspectors that are charged with enforcing the rental registration
program. In addition to their current
duties of conducting rental inspections, both staff members also conduct
Proposed Action Plan. In order to initiate a program of increased enforcement, staff would plan to visually evaluate structures on all properties within designated target areas and assign a condition classification to any structures showing evidence of structural blight. The initial target area will be properties located within the historic environs. This is a staff initiated program as opposed to the current complaint based approach to structural blight. This action plan will require several months to complete based on the estimated staff time available for this initiative.
A classification scale would be
developed to assist inspectors in evaluating structures. Condition classifications will range from a 1
rating (no immediate concern, monitor) to a rating of 5 (immediate safety
concern/hazard), with 2, 3, and 4 ratings being intermediate levels of concern. Hazardous structures will receive immediate
attention, while structures with minor concerns will be monitored and
enforcement action taken as resources permit.
As code violations are identified, the standard notification process
will be followed. On cases where
property owners are unwilling to correct code violations, a complaint will be
filed with the city prosecutor.
It is recommended that this program be reviewed within six-months of
implementation to identify effectiveness and any modifications or changes that
may be necessary.
Proactive Structural Blight Program
This type of program involves full-time staff proactively focusing on identifying and processing all structural blight cases. Currently, blight enforcement is a complaint-based program, with staff initiated enforcement occurring as time is available. A more formal program aimed at reducing structural blight in the community will require additional budget allocations and staffing. The objective of such a program would be to identify structural blighted properties, notify property owners of needed actions, and inspect for correction of the violations. In some cases the city may need to make the necessary corrections if the property owner is unable or unwilling to take action.
Budget
Implications.
Currently the
Code Enforcement Department budget includes $5,000 for blight abatement. Funds from this line item are utilized for
minor abatement projects, such as securing structures, or occasionally
demolishing unsafe structures. The
availability of more funds for expansion of these activities would allow a more
proactive and expeditious enforcement and abatement program. An amount of $25,000 set aside specifically
for abatement would be a recommended funding level for a more proactive program. This is a conservative amount and will likely
require increases in future years, as the quantity and complexity of abatement
projects performed by the City increases.
Blight and
Neighborhood
Revitalization Program
During the 1994 legislative session, lawmakers passed SB 732, known as the Neighborhood Revitalization Act (NRA). The Act allows tax rebates for property owners who renovate or make improvements to their property. Local governments are authorized under the Act to cooperate in offering property tax rebates to owners that invest money in their property resulting in an increase in value. The rebate is offered for any additional property taxes assessed as a result of property improvements. The Act is codified at K.S.A. 12-17,114 (attached).
Partnerships. The City, County, school board and any
other entity receiving a portion of the tax base are required as part of the
NRA to establish a partnership via an inter-local agreement. This partnership is vital to ensure the
maximum tax rebate for the property owner and is crucial for a successful
neighborhood revitalization plan.
Revitalization Plan. Each municipality must adopt a plan and designate an area in which they want to promote revitalization and development or redevelopment as described in K.S.A. 12-17,117. The plan must describe the property in the proposed area and be identified on a map. A plan must also list the current valuations of the land, buildings and the names and addresses of the owners within the plan area. The criteria that will be used to evaluate and establish eligible properties must also be included in the plan. A public hearing is to be conducted prior to the approval of the revitalization plan.
The NRA is written to allow a municipality the flexibility to develop is own plan and requirements. For example, the NRA does not stipulate a minimum investment, however most plans include a minimum investment be made by the property owner. A common investment standard used in most plans is $5000 for residential development. Commercial investments are occasionally the same amount as residential; some cities use a larger investment requirement for industrial projects.
Under the NRA, an agreement must contain a duration provision as well as a termination provision. Time frames for program plans vary from two to ten years in duration. An advantage of a shorter time frame is the publicity generated each time the plan is renewed, resulting in a re-investment in properties included in the plan. The city must renew plans and inter-local agreements at the end of each program plan. Rebate periods and percentages will vary as well. In some cases the rebate on the increased tax burden is offered at 100% then decreases each year during the rebate period. Rebate periods range from three to ten years. Interested property owners with property located within the designated area must apply to the city for program consideration. Application fees vary between $25-$35 and are due at time of submittal.
Requirements as described in K.S.A. 12-17,115 stipulate definitions that identify a qualifying revitalization area. The area will have a predominance of buildings that are dilapidated, deteriorated, or inadequate which endanger life or property and detrimental to the public health safety or welfare. If the area or neighborhood in which a preponderance of structures bear some historical, architectural or significance and merit preservation it may be designated as a revitalization area.
Staff Requirements. Ten communities were contacted to gather information regarding their programs and nine responded. Responding were El Dorado, Emporia, Hutchinson, Leavenworth, Newton, Ottawa, Salina, Topeka, KC/Wyandotte County Unified Government, and Wichita and range in size from 11,495 (Ottawa) to 320,395 (Wichita).
All
nine respondents noted that no additional staff was hired to administer the
rebate program. Existing staff were used
and duties were added or reassigned.
Additionally, respondents stated that the initial start up of the
program was the most onerous, with the required compliance with the state
statute most time consuming. (The plan
requires such items as the legal description, existing assessed valuation,
names and addresses of existing property owners, existing zoning
classifications and land uses of the area, proposals for improving or expanding
municipal facilities, criteria, standards, and procedure for the rebate
program, as well as other matters deemed necessary by the governing body.) After the program is established, less time
is involved to administer it, although respondents noted the ease of program
administration could be more or less, depending on the requirements of the
individual program.
Advantages. The major advantage for the property owner is the tax rebate associated with the additional tax burden resulting from improvements on deteriorating structures or development. New development may be an outcome for areas not previously developed, providing employment during construction and resulting businesses that follow economic development. Since the tax rebates do not interfere with current tax revenue, local government entities participating in the plan may benefit from a long term increase in tax revenue. A lasting benefit is the redevelopment in designated areas that will stabilize older neighborhoods and provide property owners an opportunity to make improvements that will enhance the community as a whole.
Approximately thirty-two cities
in
The program is intended to specifically
impact neighborhoods and the community as a whole by the resulting improvements
to buildings and other structures. As
such, an appropriate means to initiate this program in
In summary, the additional information is intended to provide additional resources for the City Commission in their decision making process. Staff awaits further direction regarding additional enforcement strategies and/or the Neighborhood Revitalization Act.
Attachments: City of
Neighborhood Revitalization Act, K.S.A. 12-17,114