NEIGHBORHOOD REVITALIZATION ACT
COOPERATIVE AGREEMENT for 826 PENNSYLVANIA STREET
This Agreement (hereinafter “Agreement”) is entered into this _____ day of ______, 2016, by and between the City of Lawrence, Kansas (hereinafter “City”); the Board of Commissioners of Douglas County, Kansas (hereinafter “County”); and Unified School District No. 497, Douglas County, State of Kansas (hereinafter “USD 497”) (collectively the “Parties”), all of which are municipalities within the meaning of K.S.A. 10-1101 and K.S.A. 12-17,114 et seq.; and
WHEREAS, K.S.A. 12-17,114 et seq. and amendments thereto, also referred to as the Kansas Neighborhood Revitalization Act (the “Act”), provides a program for neighborhood revitalization to provide incentives for property owners to improve aging and deteriorating property, or otherwise stimulate new construction, the rehabilitation, conservation or redevelopment of an area in order to protect the public health, safety and welfare; and
WHEREAS, K.S.A. 12-17,119, provides for all taxing jurisdictions within a Neighborhood Revitalization District to enter into agreements to further neighborhood revitalization; and
WHEREAS, the Parties desire to maximize the economic development opportunities under the Act and the Neighborhood Revitalization Plan (later defined herein) by acting jointly through the use of this agreement; and
WHEREAS, the Parties desire to set out the terms and conditions of participation as described herein, and
WHEREAS, the City and County will have primary responsibility for the procedural aspects of NRA implementation and administration, and therefore desire to set forth the specific rights and responsibilities of the Parties with respect to the procedures associated with the NRA.
NOW, THEREFORE, for the mutual promises and covenants contained herein and other good and valuable consideration, the Parties understand and agree as follows:
1. Purpose. The purpose of this Agreement is to provide a program for neighborhood revitalization and allow the taxing jurisdictions within the designated neighborhood revitalization area (“Area”) to work together, through this agreement, to facilitate the rehabilitation, conservation or redevelopment of an area to protect the public health, safety and welfare of the residents of Lawrence.
a. After conducting a public hearing and complying with the publication requirements of K.S.A. 12-17,117 as amended, on November 15, 2016 the City approved Ordinance No 9304 adopting a neighborhood revitalization district plan in substantially the same form and content as contained in Exhibit A attached hereto and incorporated herein by reference. (“Plan”).
b. The other Parties to this Agreement have also reviewed and considered the Plan, and by adoption of this Agreement, agree to work cooperatively to implement the Plan.
c. The Parties further agree that no separate legal entity shall be created under this Agreement, but rather the City, on behalf of all Parties, shall administer the Plan as adopted by the City or as it may be subsequently amended as provided herein.
d. The Parties agree that the Plan shall not be amended by the City or by any of the Parties acting separately and shall only be amended in writing signed by all Parties hereto, which consent and cooperation shall not be unreasonably withheld.
e. In the event that the Neighborhood Revitalization Plan, as adopted, is not followed with respect to the aspects set forth in the Plan, the Parties may individually wish to reconsider participation in the Plan.
2. Duration. This Agreement shall commence after it has been approved by and is fully executed by the Parties, and shall expire upon the expiration of the Rebate Period or termination of the 826 Pennsylvania NRA Plan.
3. Termination. The Parties agree that termination of this Agreement by any party prior to the period set forth in Paragraph 2 above would adversely impact the Plan, and consequently, this Agreement may only be terminated with ninety (90) days written notice, and further provided such written notice must be received prior to August 1 in the calendar year prior to the tax year the party desires to terminate participation, unless such notice is waived, in writing, by all Parties to this Agreement. The Parties further agree that any application for tax rebate submitted to the City prior to receipt of the notice of termination shall, if approved, be considered eligible for the duration of the rebate period set forth in the Plan.
4. Financing.
a. A qualified improvement must meet the requirements set out in the Plan.
b. The County shall calculate the annual rebate as per the Plan and shall transfer any tax increment rebate amounts received for the Parties to the Neighborhood Revitalization Fund (NRA Fund) a separate fund created and maintained by the City under the authority of K.S.A. 12-17,118 and amendments thereto.
c. The County shall retain an annual administrative fee in an amount of $500 from the increment of the rebate program. The County shall deduct this fee from the tax increment prior to rebating the tax increment to the City for disbursement to the property owner as provided in the Plan.
d. Within thirty (30) days of distribution of the tax increment from the County, the City will disburse the rebate(s) in the appropriate percentage to each eligible property owner(s) in accordance with the Plan. All funds transferred to the NRA Fund by the County and not required to be rebated to Owner(s) shall be refunded by the City to the County Treasurer for distribution to all participating taxing jurisdictions in their proportionate share based on their tax rate at the time of disbursement.
5. Additional City Responsibilities
a. The City’s Economic Development Coordinator shall be responsible for receiving compliance information and documentation for annual rebate from the Owner/(s) under the NRA Plan. The City’s Economic Development Coordinator shall have the authority and discretion to approve or reject annual rebate applications based on eligibility standards and review criteria contained in the NRA Plan. The City’s Economic Development Coordinator will forward notice of application approval or rejection to the County for annual rebate.
b. Upon payment of taxes by the Owner/Taxpayer, and provided the Owner/Taxpayer is in compliance with the NRA Plan, the City shall issue the appropriate rebate to the Owner/Taxpayer within 30 days after the next distribution date by Douglas County as specified in K.S.A. 12-1678a, and amendments thereto and in accordance with the NRA Plan.
c. Rebates are not given until property taxes are paid in full.
6. Additional County Responsibilities.
a. The County Appraiser shall conduct an on-site appraisal as part of the normal valuations following completion of the Improvements and determine the increase in the taxable valuation due to the improvements.
b. The County Appraiser will notify the City and the County Clerk of the valuation.
c. The County Treasurer will monitor real estate tax delinquencies for Property participating in the Program. The County Treasurer will notify the City if a Property becomes ineligible for the program due to tax or special assessment delinquencies.
8. Execution. For purposes of executing this Agreement, this document if signed and transmitted by facsimile machine or telecopier, is to be treated as an original document. This Agreement may be executed in one or more counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument.
9. Liberal Construction. This Agreement shall be liberally construed to achieve the economic development objectives and purposes of both this Agreement and the Plan. Should any provision of this Agreement be determined to be void, invalid, unenforceable or illegal, such provision(s) shall be null and void, but the remaining provisions shall be unaffected thereby and shall continue to be valid and enforceable.
10. Entire Agreement. This Agreement constitutes the entire agreement between the Parties on this subject and may not be modified or amended except in writing executed by all Parties in the same manner as the original.
11. Governing Law. This Agreement and the Plan and the rights of all the Parties hereto shall be governed by and construed according to the laws of the State of Kansas.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their respective, appropriate representatives with authority to bind their respective entity.
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CITY OF LAWRENCE, KANSAS
[SEAL]
By:
Attest: Thomas M. Markus, City Manager
Sherri Riedemann, City Clerk
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BOARD OF COMMISSIONERS
OF DOUGLAS COUNTY, KANSAS
[Seal]
By: _____________
Attest:
_________, Clerk of the Board
Approved As To Form:
County Counselor
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UNIFIED SCHOOL DISTRICT NO. 497, DOUGLAS COUNTY, STATE OF KANSAS
[Seal]
By:
President, Board of Education
Attest:
Clerk of the Board
Approved As To Form:
Attorney for the Board
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Exhibit A
Neighborhood Revitalization Plan
As adopted by Governing Body of the City of Lawrence
On November 8, 2016
through Ordinance No. 9304
[See Attached]