City of Lawrence Neighborhood Revitalization
Plan and Program
8th & Pennsylvania District
The Neighborhood Revitalization Plan (“Plan”) is required by the Kansas Neighborhood Revitalization Act (see Appendix 1) in order to create a Neighborhood Revitalization Program intended to encourage both reinvestment and improvements to a specific area or district of the community. The governing body of the City of Lawrence has determined that the Neighborhood Revitalization District (“District”) described in the Plan meets the condition described in K.S.A. 12-17, 115(c) (3):
(3) An area in which there is a predominance of buildings or improvements which by reason of age, history, architecture or significances should be preserved or restored to productive use.
The Governing Body has also determined that the rehabilitation, conservation, and redevelopment of the District is necessary to protect the public health, safety and welfare of the residents of the Neighborhood Revitalization District and the City as a whole.
The components of the Plan include a map establishing boundaries of the District, a proposal for improving municipal services, a list establishing local eligibility criteria, and an application procedure for the Program. The eligible construction for the Plan area must be in conformance with the “Design Guidelines: 8th & Penn Neighborhood Redevelopment Zone” which is incorporated by reference and attached hereto as Exhibit A.
The Plan provides an avenue to achieve the City’s goal to improve neighborhoods and to encourage historic redevelopment areas.
Section 1: Purpose
Establish a neighborhood revitalization tax rebate program (“Program”) to provide incentives for both residential and commercial property owners to improve their aging or deteriorating property, or otherwise increase the appraised value of the property. The Program is intended to promote the revitalization and development of residential and commercial properties by stimulating new construction and the rehabilitation, conservation, or redevelopment of the area in order to protect the public health, safety, or welfare of residents of the City.
The purpose of implementing the Program includes providing a revitalization tool that will:
§ Stabilize mature neighborhoods by rehabilitating older homes and properties.
§ Encourage property owners to improve businesses and homes.
§ Encourage improvement of rental properties.
§ Strengthen community pride.
§ Eventually increase the tax base and make affordable housing more available.
There are many benefits of the Program:
§ It will provide incentives for housing improvements through property tax refunds.
§ It does not interfere with current property tax revenues.
§ It will create new long-term tax revenue, without creating a fiscal burden for the City, County, and other taxing jurisdictions.
§ It will offer incentives for development/redevelopment where development/redevelopment might not otherwise occur.
§ It will help create jobs because, historically, jobs follow development.
§ It will help reverse the outward migration of residents and the resulting deterioration of neighborhoods within the mature portion of the City.
§ It will strengthen the fiscal capacity of city government to grow and serve the area.
§ It provides a window of opportunity for participation, thereby, prompting investment that otherwise may not have occurred.
§ It will encourage housing, commercial, and industrial development in the City.
Section 2: Map & Legal Description of Neighborhood Revitalization District
Legal Description of the NRA Plan Area
Commencing on 8th Street at the extended centerline of the alley between New Jersey Street and Pennsylvania Street; thence south along the centerline of said alley to the centerline of the 9th Street right-of-way; thence east along the centerline of 9th Street right-of-way to the east line of the Delaware Street right-of-way, which is also the west line of Lot 1, McDonald Beverage Addition; thence north along the east line of Delaware Street right-of-way to the center line of 8th Street, thence west along the center line of 8th Street to the point of beginning.
Section 3: Value of Real Properties
The appraised value of the real estate in the District is:
2006 Appraised Values
Land: $893,620
Buildings: $2,457,500
Total Value: $3,351,120
The assessed value of the real estate in the District is:
2006 Values
Land: $202,105
Buildings: $596,950
Total Value: $799,055
Section 4: Owners of Record in the Districts
|
Owner |
Plate No. |
|
West Side of Penn |
|
|
Cinco Hombres |
U00088A |
|
Chris Ogle |
U00094A |
|
Cinco Hombres |
U00101A |
|
Frances Ogle |
U00104A |
|
LB Holdings |
U100109A |
|
East Side of Penn |
|
|
Cinco Hombres |
U00087A |
|
Roger Harris |
U00091A |
|
Cinco Hombres |
U00097A |
|
Penn St Investors |
U00106A |
|
Roger Harris |
U00110A |
|
Properties - Poehler Bld. & South |
|
|
Cinco Hombres |
U02490A |
|
Cinco Hombres |
U00003A |
|
Roger Harris |
U00006A |
|
James Schwada |
U00003B |
A list of names and addresses of owners of record of real estate within the District are also available upon request from the City Clerk’s Office.
Section 5: Zoning Classifications and Land Use
See Appendix II – Zoning Map.
See Appendix III – Land Use Map.
Section 6: Current Condition of the Districts
Pursuant to KSA 12-17, 117 (a) (6) & (7), the properties eligible for revitalization are those parcels within the Plan area and as further described in the “Design Guidelines: 8th & Penn Neighborhood Redevelopment Zone” and attached hereto as Exhibit A.
Section 7: Proposals for Improving Municipal Services in the District
The City recognizes the value of municipal services and capital improvements throughout the community. The City is strongly committed to maintaining a substantial presence in the District.
Efforts underway or in planning stages include:
Capital Projects 2006-2010
Road Improvements
Improvement of 8th Street
Improvement of 9th Street
Section 8: Criteria for Determining Eligibility
Eligible property applies to additions or improvements to existing buildings, new construction, or both (“Improvements”). Pursuant to KSA 12-17, 117 (a) (6) & (7), the properties eligible for revitalization are those parcels within the Plan area and those improvements which meet the “Design Guidelines: 8th & Penn Neighborhood Redevelopment Zone” which is attached hereto as Exhibit A.
1. There will be a five (5) year application period beginning January 1, 2007, and ending December 31, 2012. At the end of four (4) years, the City will review the Plan and determine its continuation. The City reserves the right to evaluate the Program at any time. Rebates will be subject to the maximum rebate limits of this plan.
2. The Improvements must result in an increase of $5,000 for residential and $10,000 commercial or industrial in the appraised value of eligible property. Some Improvements, such as major repairs (even those that may require a building permit) may not result in an increase in the appraised value and thus will not be eligible for a property tax rebate.
3. New and existing Improvements on property must conform to all codes, rules, and regulations in effect at the time the Improvements are made. Tax rebates may be terminated if Improvements do not conform to all applicable codes during the rebate period or to approved site plans or development plans.
4. Any otherwise eligible property with delinquent taxes or special assessments shall not be eligible for a rebate until such time as all taxes and assessments have been paid.
5. Qualified Improvements eligible for tax rebates under the Neighborhood Revitalization Plan may submit only one application per piece of property, unless additional applications are approved by Governing Body action.
6. Tax rebate is personal to the owner. Rebates for residential structures will be given only to properties that are occupied by the owner.
7. The Program is subject to approval of each taxing unit which will be stated in the interlocal agreement between the City and taxing jurisdictions. (See the City Clerk for taxing units who have adopted the Program.)
8. Construction must be completed in the time set out in the application for a tax rebate. Extensions beyond that period will be considered on a case by case basis by the City Manager.
9. Property Eligible for a Property Tax Rebate are those parcels within the Plan area and as further described in the “Design Guidelines: 8th & Penn Neighborhood Redevelopment Zone” and attached hereto as Exhibit A and must meet said guidelines and any approved site plans or development plans to be eligible for a tax rebate.
a) Residential Property
i. Property used after improvement for single or multi-family residential uses shall be limited to: redevelopment (ground up), rehabilitation and alterations, including new or existing accessory structures to any existing primary residential structure built prior to adoption of this Plan, including alteration of a single-family home into a multi-family dwelling, shall be eligible.
ii. The Improvements must comply with all applicable codes of the City of Lawrence in order to qualify for a tax rebate under the Plan.
iii. Eligible residential property shall be eligible for a 95 percent rebate of property taxes on taxable value of eligible Improvements for the term of the rebate period (see Section 10.)
b) Commercial & Industrial Property
i. All property used exclusively after redevelopment (ground up) or improvement for commercial or industrial uses shall be eligible.
ii. Mixed use residential and commercial property shall be eligible if the residential use qualifies or to the extent the Improvements are appraised as commercial property.
iii. Mixed use residential and industrial property shall be eligible.
iv. Eligible commercial and industrial property shall be eligible for a 95% rebate of property taxes on the appraised value of eligible improvements for the term of the rebate period (see Section 10.)
c) Agricultural and all other property
Property used after improvement for agricultural or any non-commercial, non-industrial or non-residential uses shall not be eligible.
10. General Provisions and Maximum Rebate Limitations Applicable to All Rebate Applications on Eligible Property
a) Property owners of all eligible property shall make application filed with the City Clerk on application forms provided by the City.
b) Eligible Improvements must be authorized by a building permit when applicable.
c) Property owners shall make application before a building permit has been issued and the permit fee paid for any eligible Improvements. The deadline for application shall be prior to commencing improvements. The property owner may appeal to the Governing Body and the Governing Body may approve an application for rebate after the deadline but not later than when the substantially completed improvements are first assessed by a Lawrence Building Official or designee.
d) Only one application for rebate shall be allowed per property. This application may include any number of Improvements.
e) Any otherwise eligible property with delinquent taxes or special assessments shall not be eligible for a rebate until such time as all taxes and assessments have been paid. If delinquency occurs after entry into the Program, the owner shall have ninety days to bring taxes current. If such delinquency continues beyond ninety days, the property shall no longer be eligible for the Program. If such delinquency is corrected within the initial 90 days, but reoccurs in subsequent years, the property shall no longer be eligible for the Program.
The property owner shall notify the City when all improvements covered under the application have been completed and the City shall inspect the Improvements for compliance with the required building codes and for compliance with the “Design Guidelines: 8th & Penn Neighborhood Redevelopment Zone”.
f) The City shall notify the County Appraiser that the improvements covered under the rebate application have been substantially completed.
g) The County Appraiser shall conduct an on-site inspection following substantial completion of the Improvements and determine the increase in the taxable valuation due to the Improvements and shall report that amount to the County Clerk.
h) The rebate shall be calculated each year using the appraised value resulting from the Improvements.
i) The property taxes must be paid and an increment generated before a rebate will be issued.
j) The ________ {to be determined} shall review all applications based on eligibility contained in this Plan and approve such eligible applications. If an application is not approved, the property owner may appeal the decision within 10 days of the date of the __________ decision, in writing to the Governing Body for final determination.
k) If this Plan is repealed or the rebate criteria changed, any approved applications shall be eligible for rebates for the remaining Term of the rebate originally provided in the Plan.
l) Maximum Rebates Allowed Under the Plan.
The plan shall allow rebates equal to the allowed costs of the planned improvements and pursuant to the Development Agreement executed by the Developer in conjunction with this plan, for the following improvements as described in Exhibit B attached hereto:
m) Phasing of Rebates
Rebates shall be calculated annually based upon the following schedule:
Following completion of the planned improvements to the Poehler Building and parking lots south of the Poehler Building and the Alley between Pennsylvania Street and Delaware Street between 8th & 9th Street, rebates shall be calculated at 25% of the increase in appraised value.
Following completion of the above and the planned improvements to Zone 3 of the 8th and Pennsylvania redevelopment zone, rebates shall be calculated at 50% of the increase in appraised value.
Following completion of the above and the remaining planned improvements to Zone 1 of the 8th and Pennsylvania redevelopment zone, rebates shall be calculated at 75% of the increase in appraised value.
Following the completion of the above and the bricking and other appurtenant allowed improvements improvement pursuant to the Design Guidelines of Pennsylvania Street from 8th Street to 9th Street, rebates shall be calculated at 100% of the increase in appraised value.
15. Construction of an improvement must have begun on or after the date of the designation of the District and be located within the District.
16. The appraised valuation must increase by $5,000 for single family and two-family residential and by $10,000 for multifamily and commercial property.
17. An application for a tax rebate must be filed prior to commencing construction.
18. The Improvements must comply with all applicable codes of the City of Lawrence in order to qualify for a tax rebate under the Plan.
19. The new, as well as existing improvements on the property must conform to all applicable codes, rules, laws, ordinances, and regulations in effect at the time the improvements are made, and remain in compliance for the length of the rebate or the rebate may be terminated.
20. List of Improvements NOT Eligible for rebate
· All property within a TIF
· Any property which has or will receive a tax abatement under other terms not pursuant to this Plan.
21. Effective Dates of the Plan
This Plan and property tax rebates provided by this Plan shall be effective upon the adoption of this Plan by resolution of the Governing Body of the City of Lawrence. This Plan and the District shall expire after five (5) years from the date of adoption unless extended by the resolution of the City Council prior to its expiration. However, the term of rebate for applications approved under this Plan is 10 years from the date of approval or until the maximum rebate limits pursuant to this plan have been reached, but in no event shall the rebate term be greater than 10 years. The Governing Body may repeal, amend or modify this Plan as conditions, policies or priorities of the Governing Body change.
Section 9: Application Procedures
Prior to filing the Application for Tax Rebate, the following procedures apply:
1. Obtain an application from the Lawrence City Clerk, located at Lawrence City Hall, 6 East 6th Street, Lawrence KS 66044 or online at www.lawrenceks.org
2. Prior to the commencement of construction of any Improvements or new construction for which a tax rebate will be requested, the applicant-owner will complete Part 1 of the application. Requests must be received and approved before commencement of construction.
3. Part 1 of the application must be filed with the City Clerk with a refundable application fee ($25.00 single family residential and $100.00 multifamily residential or commercial) prior to the commencement of construction.
4. The City will notify by letter to the applicant within ten (10) days of receipt of a completed and comprehensive application, indicating approval or denial of the project.
5. The City Clerk will forward a copy of Part 1 to the County Clerk for notification and information purposes. Copies of the application will also be forwarded to the Planning and Neighborhood Resources Departments for monitoring purposes.
6. The applicant-owner will notify the County Appraiser of the commencement of construction by filing Part 2 of the application within 10 days after starting the project.
7. For any Improvements that are only partially completed as of January 1 of the calendar year, following commencement of construction, the owner-applicant will file Part 3 of the application with the County Appraiser indicating the status of construction as of January 1 of the calendar year. Part 3 will be filed on or before December 15 of the calendar year, preceding the commencement of the tax rebate period.
8. For any improvement that is completed on or before January 1 of the calendar year, following the commencement of construction, the owner-applicant will file Part 3 of the application with the County Appraiser on or before December 1 of the calendar year, preceding commencement of the tax rebate period, certifying the completion of construction, along with an itemized statement of costs. This is necessary to receive your rebate.
9. Soon after January 1 of the calendar year, the County Appraiser will conduct an on-site inspection of the Improvements and determine the new valuation of the real estate accordingly. The valuation is then reported to the County Clerk by June 15 of the calendar year. The tax records will be revised.
10. Upon filing of Part 3, and the determination of the new valuation of the said real estate, the form will be filed by the City Clerk with the County Clerk and the County Appraiser certifying the project is in compliance with the requirements for a tax rebate.
11. Upon payment in full of the real estate tax for the subject property for the initial and each succeeding year period extending through the specified rebate period, and within an approximately thirty (30) day period following the date of tax distribution by the City to the other taxing units, a tax rebate in the amount of the tax increment will be made to the owner. The tax rebate will be made by the Finance Director of Lawrence through the Neighborhood Revitalization Fund established in conjunction with the other taxing units participating in an Interlocal Agreement. If the property owner appeals their tax bill to County Appraiser, no payment will be made until the appeal is resolved.