1	Neighborhood Revitalization Plans Neighborhoods and Downtown City of Lawrence
2	NRA Goals: K.S.A. 12-17,114 et seq. Create a revitalization area – must meet statutory requirements, determined by the legislative bodies Provide incentives for capital investment Goal is to promote the revitalization of residential and commercial properties
3	How does the NRA work? Property tax rebates for improvements that increase appraised value – fixed rebate on the incremental increase Two year initial program period; $500,000/year rebate cap. $50,000 individual project cap. Projects must meet plan requirements and codes Eligibility criteria Rebate is based upon the taxing entities that have adopted the plan – works best if City, County and School District are all participants
4	How does the NRA work? (cont.) 95% rebate on incremental increase over 10 years 95% rebate on incremental increase over 15 years for qualified historic properties .5% of the rebate allocated for administration 4.5% of the rebate allocated to Neighborhood Revitalization Fund Rebate stays with property Modeled after the 8^th and Penn Plan
5	Impact on Taxing Entities
6	Neighborhood Revitalization Fund Used for infrastructure and other redevelopment improvements. Allocated by joint City/County/USD committee.
7	Criteria for Participation Property located in designated district Improve existing buildings or new construction including vacant parcels Residential, commercial, mixed-use Minimum appraised valuation increase of $10,000 for neighborhoods and $5,000 for downtown
8	Criteria for Participation (cont.) Conform to existing codes/plans Property taxes current TIF district is not eligible Owner-occupied and rental properties
9	Neighborhood NRA Areas
10	Downtown NRA Area
11	Areas of Overlap with Downtown NRA
12	Some Rebate Examples* $30,000 addition to single family residence Pre-construction appraised value of $125,000 Pre-construction assessed value (11.5% rate - residential) = $14,375 Post-construction appraised value of $150,000 Increase of $25,000 in appraised value Post-construction assessed value = $17,250 ($150,000 x 11.5%) Assessed value increase $17,250-$14,375 = $2,875 Incremental Increase $2,875 (assessed valuation) Potential rebate under proposed plan: City mill 26.358 County mill 30.013 USD 497 57.804 (total mill 114.175) $2,875 x mill/1000 = $328.25 taxes on increase Eligible for 95% rebate = $312 (annually for 10 years) * Rebate examples are hypothetical and are presented for discussion purposes only
13	Some Rebate Examples* New home construction on vacant parcel single family residence Pre-construction appraised value of $30,000 Pre-construction assessed value (11.5% rate - residential) = $3,600 Post-construction appraised value of $160,000 Increase of $130,000 in appraised value Post-construction assessed value = $18,400 ($160,000 x 11.5%) Assessed value increase $18,400-$3,600 = $14,800 Incremental Increase $14,800 (assessed valuation) Potential rebate under proposed plan: City mill 26.358 County mill 30.013 USD 497 57.804 (total mill 114.175) $14,800 x mill/1000 = $1,690 taxes on increase Eligible for 95% rebate = $1,605 (annually for 10 years) * Rebate examples are hypothetical and are presented for discussion purposes only
14	Some Rebate Examples* Eldridge Renovation 2005 Appraised Value $1,826,600 2005 Assessed Value $456,645 (25% of appraised – commercial rate) 2007 Appraised Value $2,700,00 2007 Assessed Value $675,000 Incremental Increase $218,555 (assessed valuation) Potential rebate under proposed plan: City mill 26.358 County mill 30.013 USD 497 57.804 (total mill 114.175) $218,555 x mill/1000 = $24,931 taxes on increase Eligible for 95% rebate = $23,684 (annually for 15 years) * Rebate examples are hypothetical and are presented for discussion purposes only
15	What the plan does not do Does not guarantee a set tax rebate – rebate is based on the project and its impact on appraised valuation Does not guarantee increased capital investment Does not provide up front funds for capital improvements, e.g. – sidewalk repair Does not address neighborhood concerns related to land use or other development issues
16	Other Issues for Consideration Increased valuation of surrounding properties Revitalization means different things to different people Potential for gentrification Simple, customer-friendly process Is plan feasible outside of 8^th & Penn?
17	Process from Here Revise and update plans Take plans to City Commission for consideration If plans are approved, take to County and USD 497 for adoption prior to January 1, 2008
18	Questions? Comments? Draft copies available for review in the Lawrence-Douglas County Metropolitan Planning Office Draft plans available on-line at www.lawrenceks.org