KANSAS NEIGHBORHHOOD REVITALIZATION ACT
K.S.A. 1996 Supp.
12-17, 114 et seq.
This law authorized any municipality covered by the cash
basis law to designate an area within its boundaries as a neighborhood
revitalization area and to provide rebates to taxpayers in the amount of the
incremental increased in property taxes resulting from improvements made to the
property. The term “municipality” may include a city, township, school, county
or other political subdivision. The rebates are to be made within 30 days of
the payment of the full taxes.
Neighborhood revitalization area means in part, an area in
which buildings or improvements by reason of dilapidation or obsolescence are
detrimental to the public health, safety or welfare; or an area where there is
a substantial number of deteriorating or defective structures and other
improvements which impairs or arrests the sound growth of a city or constitutes
an economic liability; or an area in which there is a predominance of buildings
or improvements which by reasons of age, history, architecture or significance,
should be preserved or restored to productive use. See K.S.A. 1996 Supp.
12-17, 115(b), (1), (2) and (3).
Prior to designation of such an area, the municipality must
adopt a plan for the area which shall include, among other things, any
proposals for improving or expanding various municipal services within the
area, criteria to be used by the governing body for eligibility for rebates,
and the application process. Notice and public hearings are required prior to
adoption of the plan.
Municipalities are authorized to create a neighborhood
revitalization fund for this purpose and to place moneys in said fund from any
lawful source and from the general fund. Any two or more municipalities may
enter into interlocal cooperation agreements to exercise the powers under this
act.
STATEMENT OF
FINDINGS
Using the work “blighted” to describe Harper County Kansas
goes against the grain of a very proud community. However, that same community
recognized that growth and revitalization of rural areas must occur to insure
survival. The lack of growth and revitalization will over time bring an end to
the way of life known as a rural community.
Lack of housing, the dilapidation, deterioration and
obsolescence of residential, commercial and industrial structures, low housing
vacancy rates, loss of population, and a declining real wage structure all
contribute to the indicators of a “blighted” community.
In examining all of these factors, a clear warning is sounded
for Harper County, Kansas. Harper County is classified as an agricultural
dependent county by the USDA. A broadening and diversification of the local
economy base, construction for new or the improvement of existing housing and
commercial properties are some of the items needing attention to insure growth
and stability of any rural community.
A survey of the housing needs countywide indicates a major
shortfall of all types of housing exists. The need for new or improved
multi-family and individual living units for families with children are badly
needed. For our senior citizens, there is a similar need for new or improved
multiple unit facilities as well as individual living units. What seems
obvious is the need for incentives to facilitate persons or companies in the
construction of new multi-family and individual living units. Those same
incentives are needed to encourage owners to rehabilitate existing multiple
units and homes. Declining income, an older population and the ad valorem tax
structure are seen as contributing factors that prevent investors and owners
from building new structures. These same disincentives even retard the
remodeling and maintenance of existing homes and other structures.
Harper County has an aging and
deteriorating housing base. According to the Kansas Statistical
Abstract, only 9 building permits were issued from 1998 – 2000. The total
number of housing units is down from 3,563 in 1980 to 3,270 in 2000. According
to the office of the Harper County appraiser, of the existing homes built
through 1996, sixty-eight percent (68%) were built before 1940.
With the exception of the 1960’s, the population of Harper
County has declined every decade since 1910. Between 1990 and 2000, Harper
County’s population decreased by 9.3%. This was the largest decade population
decline since 1960. The current population is projected to decline by 16% over
the next 30 years. Source: Policy Research Institute, The University of
Kansas.
Harper County has lost ground in nearly every area necessary
to sustain itself. If something is not begun immediately to reverse the
obvious trends and indicators, our rural community way of life will surely
disappear through nothing more certain than the passage of time.
LEGAL DESCRIPTION
OF GENERAL NEIGHBORHOOD REVITALIZATION AREA
LEGAL DESCRIPTION
OF HARPER COUNTY
Beginning at the Northeast corner of Section 1, Township 31
South, Range 5 West, of the 6th P.M., thence Westerly along the
North line of Township 31 to the Northwest corner of Section 6, Township 31
South, Range 9 West of the 6th P.M., thence Southerly along the West
line of Townships 31, 32, 33, 34 and 35 South, Range 9 West of the 6th
P.M., to the Southwest corner of Lot 2 of Section 18, Township 35 South, Range
9 West of the 6th P.M., said point being on the Kansas-Oklahoma
border, thence Easterly along the Kansas-Oklahoma border to the Southeast
corner of Lot 1 of Section 13, Township 35 South, Range 5 West of the 6th
P.M., thence Northerly along the East line of Townships 35, 34, 33, 32, and 31,
Range 5 West of the 6th P.M., to the place of beginning.
Less: Sections 1 – 36, Township 31, Range 9; Sections 1 –
36, Township 31, Range 8; Sections 30 – 32, Township 31, Section 7; Sections 4,
5, & 8, Township 31, Range 6; Sections 11 – 16, & 24, Township 31,
Range 5; Sections 26 – 28 & 33 – 35, Township 32, Sections 6; Sections 2
& 3, Township 33, Range 6; Sections 4 – 6, Township 33, Range 9; Sections 7
– 36, Township 34, Range 9; Sections 7 – 25, Township 34, Range 8; Sections 7,
8, 17 – 20, 29, & 30, Township 34, Range 7; Sections 9, 10, 15, 16, 21, 22,
27, 28, 33, & 34, Township 34, Range 6; Sections 7 – 18, Township 35, Range
5; Sections 3, 4, & 9 – 16, Township 35, Range 6; Sections 1 – 18, Township
35, Range 9.
See map of Harper County, Kansas, attached.
ASSESSED VALUATION OF REAL PROPERTY
The assessed valuation of the real
estate contained in the area listed above is _________.
LISTING OF OWNERS OF RECORD IN AREA
The owners of record of each parcel of land, together with
corresponding mailing addresses are on file in the Harper County Clerk’s
Office.
LISTING OF ZONING CLASSIFICATIONS IN AREA
The zoning classifications and land uses of each parcel of
land are on file in the Harper County Appraiser’s Office.
TAX REBATE PLAN
PURPOSE:
This plan is intended to promote the revitalization and
development of the County of Harper by stimulating new construction of
residential, commercial and agricultural properties, and the rehabilitation,
conservation or redevelopment of residential, commercial and agricultural
properties within the area by offering certain incentives, which include tax
rebates.
CRITERIAL FOR DETERMINATION OF ELIGIBILITY
(A)
“Structure” means construction of new residential, commercial and
agricultural improvements to real estate; “structure” also includes
residential, commercial and agriculture real estate to which building
additions, remodeling, renovations, improvements and permanent fixtures are
assimilated to the existing properties.
(B)
Any structure which does not lend itself to obvious inclusion within the
above meaning should be cleared with the office of the Harper County Appraiser
prior to application. Sprinkling systems, fences, landscaping, swimming pools,
hot tubs, gazebos, patios, yard improvements and recreational structures are
exempt from inclusion in the tax rebate plan; the preceding list of exemptions
may not be complete and may be enlarged on a case by case basis.
(C)
There will be an open (3) year application period, beginning April 1, 2002, ending March 31, 2005. At the end of
the three (3) year application period, the taxing entities will review the plan
and determine its continuation. Those applications approved during the three
(3) year period will continue to receive the tax rebate for the full ten (10)
years following completion of the project.
(D)
To be eligible for any tax rebates under this Plan:
1) Part
1 of the Application For Tax Rebate must be completed in full and filed with
the office of the Harper County Appraiser, including the payment of a non-refundable
$100 application fee;
2) Prior
to the commencement of all new construction and all improvements to existing
properties, an inspection of the site of the project shall have been completed
by the office of the Harper County Appraiser to establish the base line
valuation between non-qualifying portions and the eligible portions under this
plan;
3) No
later than ten (10) days after the project is commenced, Part 2 of the
Application For Tax Rebate must be completed in full and filed with the office
of the Harper County Appraiser.
4) Part
3 of the Application For Tax Rebate must be completed and filed with the office
of the Harper County Appraiser no later than the 1st day of December
of the year prior to the first year an eligible tax rebate is available;
5) There
shall be no exceptions granted for noncompliance with this paragraph.
(E)
The minimum investment for eligibility in order to receive a tax rebate
for commercial, agricultural, or residential new construction or improvement to
existing properties is $15,000.00, which must be established upon request by
checks and invoices; the project must be classified and taxable as real estate.
(F)
New Construction as well as improvements to existing properties must be
in compliance with all applicable building permit requirements, building codes
and zoning regulations in effect within its location at the time the
improvements begin. Tax rebates may be denied or terminated for noncompliance
with this paragraph.
(G)
No applicant having delinquent real, personal or special assessment
taxes due Harper County will be eligible for this program. In the event any
such taxes become delinquent during the ten (10) year period, all current and
future tax rebates shall be forfeited in full.
(H)
Once a project application for new construction or improvements to an
existing property has been approved, no modifications to the project shall be
allowed for additional benefits under this Plan. Only one (1) application per
property will be eligible in any twelve (12) month period.
(I)
All tax rebates are subject to the approval of this Plan by each taxing
unit. See the Harper County Clerk for taxing units that have adopted the Tax
Rebate Plan of the Neighborhood Revitalization Plan.
(J)
All tax rebates under this Plan shall be based on the tax increase from
the assessed valuation; will be paid commencing the first calendar year
following the year of completion; and may change upward or downward depending
on the change in applicable mill levies.
(K) All
tax rebates under this Plan shall be made only from the resulting increase in
ad valorem taxes generated and collected by reason of the new construction or
improvements to existing properties and may not equal the amount of the actual
dollars spent. Example: a $20,000 improvement to an existing property may add
only $15,000 to the estimated market value of the property; thus the tax rebate
will be based on the $15,000 increment in value and not on the $20,000 actually
spent.
(L)
All tax rebate benefits under this Plan shall transfer with a change of
ownership of qualifying property.
(M) After
the payment of the real estate taxes in full, the tax rebate shall be made
within thirty (30) days following the date of the next scheduled tax
distribution.
(N) New
construction and improvements to existing properties must be completed within
two (2) years of the date of application. Any request for an extension beyond
that period will be considered for good cause shown on a case-by-case basis.
TAX REBATE
PROGRAM
UNDER THE NEIGHBORHOOD REVITALIZATION PLAN
CRITERIA FOR
COMMERCIAL & INDUSTRIAL PROPERTIES
NEW &
REHABILITATION PROJECTS
Increase in
Appraised Market Value of:
$15,000 - $500,000 $500,000 -
$3,000,000 $3,000,000+
Year: 1 – 3: 95% Year:
1 – 6: 95% Year: 1 – 6: 95%
4: 80% 7:
70% 7 – 10: 75%
5: 70% 8:
60%
6: 60% 9:
50%
7 – 8: 50% 10:
20%
9: 30%
10: 20%
CRITERIA FOR
RESIDENTIAL PROPERTIES
NEW & REHABILITATION PROJECTS
Increase in
Appraised Market Value of:
$15,000 +
Year:
1 – 3: 95%
4:
80%
5:
70%
6:
60%
7
– 8: 50%
9:
30%
10:
20%
*A minimum of $15,000 must be invested.
*A $100.00
up-front, non-refundable application fee will be charged to cover the
appraiser’s office time and administration.
*Shall include
the rehabilitation of existing structures and/or additions to existing
structures and new construction. Rebates will apply to all residential,
commercial, agricultural and industrial structures with a few exceptions yet to
be determined.
*The intended purpose or use of structure will
determine if project is commercial or residential.
*Multi-family structures and agriculture will be
considered commercial.
*Any NRP rebates may be taken in addition to any
applicable state and/or federal programs.
NEIGHBORHOOD REVITALIZATION PLAN CONTRACT
THIS CONTRACT, effective April 1,
2002, by and between the Harper County Townships 1, 2, 3, 4, 5, & 6,
Attica Cemetery, Burchfiel Cemetery, Danville Cemetery, Eagle Cemetery, Spring
Grove Cemetery, Freeport Cemetery, Pleasant Hill Cemetery, Cemetery District
#6, School Districts USD 511, USD 361, USD 331, USD 332, USD 255, USD 359;
Hospital Districts 1, 5, 6; Norwich Hospital, the Harper County cities of
Anthony, Attica, Harper, Bluff City, Danville, Freeport, Waldron; as parties of the first part, and hereafter referred
to collectively as the “municipalities”; and the BOARD OF COUNTY COMMISSIONERS,
HARPER COUNTY, KANSAS, as party of the second part, hereinafter referred to as
“County”.
WHEREAS, K.S.A. 12-2904 allows any municipality to enter
into a contract with any other municipality to perform any governmental
service, activity, or undertaking which each contracting municipality is
authorized by law to perform.
WHEREAS, all parties are municipalities as defined in K.S.A.
12-17115, capable of entering into contracts; and
WHEREAS, K.S.A. 1995 Supp. 12-17, 114 et seq. (Kansas
Neighborhood Revitalization Act) (KNRA) provides a program for neighborhood
revitalization and further allows for the use of contracts or agreements
between municipalities to further neighborhood revitalization; and
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS,
PROMISES AND AGREEMENTS CONTAINED HEREIN, THE PARTIEIS AGREE AS FOLLOWS:
SECTION I
NEIGHBORHOOD
REVITALIZATION PLAN (PLAN)
The parties of the first part “Municipalities”
and the party of the second part “County” separately and individually have
adopted a Neighborhood Revitalization Plan pursuant to the KNRA (the Plan). A
copy of the Plan is attached to this Contract and is incorporated herein as a
part of this Contract.
SECTION II
ADMINISTRATION OF THE
PLAN
The participating Municipalities agree that the
Board of County Commissioners of Harper County, Kansas, acting through the
County Clerk’s Office, shall administer the Plan. It is agreed that the County
shall be responsible for creating and administering a Neighborhood Revitalization
Fund as defined in K.S.A. 2000 Supp. 12-17, 118(a). It is further agreed that
the $100 application fee described in the Plan shall be utilized by the County
to pay for administrative costs incurred by the County in implementing and
administering the Plan.
SECTION III
AMENDMENT AND
TERMINATION
This Contract may be amended with
the written consent of the parties. Unless renewed by the written consent of
the parties, for a period of three years, this Contract shall Terminate and
expire on March 31, 2005, subject to the terms
of the Plan. Furthermore, the parties agree that any party may terminate this
agreement prior to March 31, 2005, by providing 30 days advance notice;
provided, however, any application for tax rebate submitted prior to termination
shall, if approved, be considered eligible for the duration of the rebate
period.
SECTION IV
MISCELLANEOUS
This Contract shall be effective and binding
upon each of the participating parties upon their execution of this agreement.
The Contract may be executed in several counterparts which, together, shall
constitute a binding agreement on all executing parties. Any Municipality
which does not execute this Contract shall not be considered a party. This
Contract and the Plan shall be liberally construed to achieve the economic
development objectives and purposes of this Contract and the Plan.
If any provision of this Contract shall be held
to be inoperative or unenforceable as applied in any particular case of to any
particular participating party, or in all cases because it conflicts with any
other provision or any other constitution or stature, or for any other such
reason, such circumstances shall not render the provision in question
inoperative or unenforceable in any other case or circumstance or render any
other provision invalid in inoperative or unenforceable to any extend. The
effect and meaning of this Contract, the Plan and the rights of all
participating parties shall be governed by and construed according to the laws
of the State of Kansas.
IN WITNESS WHEREOF, the parties have caused this Contract to
be duly executed by their respective appropriate representatives.
Contract
Signature Page Attached.