ORDINANCE NO. 9294
AN ORDINANCE PROVIDING FOR DEFERRAL OF PAYMENT OF SPECIAL ASSESSMENTS FOR PUBLIC IMPROVEMENTS IN IMPROVEMENT DISTRICTS ESTABLISHED ON PROPERTY OWNED BY A POLITICAL SUBDIVISION OF THE STATE OF KANSAS; PROVIDING FOR THE PERIOD OF DEFERRAL, THE EXTENSION OF SUCH PERIOD, THE COLLECTION OF ASSESSMENTS, AND PROVIDING FOR PAYMENT OF PRINCIPAL AND INTEREST DURING THE DEFERRAL PERIOD.
WHEREAS, the City of Lawrence, Kansas (the “City”) is authorized pursuant to Article 12, Section 5 of the Constitution of the State of Kansas (the “Home Rule Amendment”), to determine its local affairs and government and to provide for the deferral of special assessments levied on improvement districts created by the City; and
WHEREAS, the City, in Ordinance No. 6009, determined it was necessary to provide for the deferral of specials assessments levied on improvement districts created by the City in the circumstances specified in Ordinance No. 6009; and
WHEREAS, the City, in Ordinance No. 6009, provided for the deferral of the payment of special assessments for public improvements in improvement districts on property owned by a political subdivision of the State of Kansas, under the terms and conditions specified in said ordinance, for a period of twenty (20) years; and
WHEREAS, the City, in Ordinance No. 8258, provided for the deferral of the payment of special assessments for public improvements in improvement districts on property owned by a political subdivision of the State of Kansas, under the terms and conditions specified in said ordinance, for an additional period of five (5) years, for a total period of twenty-five (25) years;
WHEREAS, the governing body of the City, at the request of the Board of County Commissioners of Douglas County, has determined it is necessary to extend the period of the deferral of the payment of special assessments for public improvements in an improvement district on property owned by Douglas County, a political subdivision of the State of Kansas, under the terms and conditions specified in this ordinance, for an indefinite period;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:
Section 1. Whenever the governing body of the City may create an improvement district in an undeveloped area of the City which is owned by a political subdivision of the State of Kansas, and whenever a public improvement may be constructed in such an improvement district, the expense of which is chargeable to the improvement district, the governing body may, in its discretion, provide for delay in the payment of such assessments, under the terms and conditions specified in this Ordinance; and for such cost may issue internal improvement bonds of the City as provided by law. The procedure for assessing and collecting the assessments or for redeeming property from special assessments shall be for the same as for bonds issued for improvements authorized under K.S.A.12-6a01 et seq., as far as said statutes may be applicable, and for the costs of such improvements which are payable by the City at large, the City may also issue general improvement bonds of the City which bonds shall be repayable by the levy of a general tax on all the property in the City.
Section 2. The governing
body of the City may, in its discretion, authorize and provide for the deferral
of special assessments for the cost of constructing public improvements in
improvement districts which contain property owned by a political subdivision
of the State of Kansas and which are in undeveloped areas of the City. The
governing body may provide for delay in the beginning of payment of assessments
upon such property for a designated period not exceeding 20 years or until the
time such property is sold or conveyed to a party other than said political subdivision,
provided that if the property is sold or conveyed to a party other than the
political subdivision and such party agrees to construct a speculative building
for resale on such property, and such party presents proof satisfactory to the
City of such party’s ability to construct such building, the governing body may
provide for a continuation of the deferral period until the time as such party
sells or leases the property to a subsequent purchaser or lessee, and provided
further, that the entire period of deferral shall not exceed 20 years. All
assessments levied upon property which are deferred under the terms of this
Ordinance shall become due and payable when ownership of the property changes
to an owner not eligible for deferral under this Ordinance, as described above,
or at the expiration of the deferral period. Notwithstanding the foregoing, upon
written request of Douglas County, Kansas, the governing body of the City may,
in its discretion, authorize and provide for the deferral of special assessments
for the cost of constructing public improvements levied against lots and pieces
of land owned by the Board of County Commissioners of Douglas County within the
East Hills Business Park Improvement District, for an additional five (5)
years, for a total deferral period of __ years indefinite period.
Section 3. All ordinances of the City levying special assessments for the costs of constructing public improvements upon property for which the property has been granted a deferral in payment shall state that such assessments have been deferred and the terms of this Ordinance and shall state the period of the deferral granted, except that after passage of Ordinance No. 9293 the City may defer special assessments for the cost of construction of public improvements levied against lots and pieces of land owned by the Board of County Commissioners of Douglas County within the East Hills Business Park Improvement District for an indefinite period of time and shall not be required in any such ordinance to state the period of the deferral granted. The City Clerk shall, when certifying such special assessments to the county clerk, note thereon the words, “payment deferred” and the period for which the deferral is granted. Such assessments, when levied and certified, and when they become due under the terms of this Ordinance, shall be collected as other taxes.
Section 4. Whenever the governing body of the City shall grant a deferral in the payment of assessments under the provisions of this act, the governing body shall provide for the payment of principal and interest on any bonds issued for the payment of the costs of such improvement during the period for which such deferral has been granted by the levy of a tax upon all of the taxable property of the City in the manner provided for the payment of bonds payable by the City in at large. The portion of such bonds issued for payment of the costs of such improvements which are payable by the City at large during the assessment deferral period shall be considered bonds payable by the City at large. When such deferred assessments become due and payable under the terms of this Ordinance, the costs incurred by the City at large by reason of and during the time of the deferral period shall be paid by the special assessment against the property and the proceeds thereof paid into the general bond and interest fund of the City. Upon a determination that deferred assessments have become due, the City Clerk shall notify the county clerk of the balance of such assessment and that it is to be collected in the manner provided by law. In no event shall the amount so collected exceed the amount of the original assessment plus interest which would have been charged initially if deferral had not been granted.
Section 5. The governing body of the City releases the Board of County Commissioners of Douglas County, the Economic Development Corporation of Lawrence and Douglas County, and the real property described as Lots A and B of Block 1, and those pieces or portions of G, H, and I of Block 3 as identified in Exhibit A incorporated herein by reference from any remaining outstanding Assessments levied pursuant to Ordinance No. 6010 for the cost of constructing public improvements levied against said lots and pieces of land owned by the Board of County Commissioners of Douglas County within the East Hills Business Park Improvement District.
Section 6. Ordinance 8258 is hereby repealed, it being the intent of the Governing Body of the City of Lawrence, Kansas that this Ordinance No. 929.4 shall supersede it.
Section 7. This Ordinance hereby supersedes Ordinance No. 6009 and Ordinance 8258 and shall take effect from and after its passage and publication in the official City newspaper, as provided by law.
PASSED by the Governing Body of the City of Lawrence, Kansas on this ____ day of September, 2016.
APPROVED:
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Mike Amyx
Mayor
ATTEST:
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Sherri Riedemann
City Clerk
APPROVED AS TO FORM:
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Toni R. Wheeler
City Attorney
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NOTICE TO PUBLISHER
Publish one time and return one Proof of Publication to the City Clerk and one to the City Attorney.