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Legislation #: 061226 Introduction Date: 11/2/2006
Type: Resolution Effective Date: none
Sponsor: COUNCILMEMBER RILEY
Title: Recommending the Tax Increment Financing Commission of Kansas City consider developing proposed plans for tax increment financing housing overlays in the Ivanhoe and Blue Hills Neighborhoods.

Legislation History
DateMinutesDescription
11/2/2006 Filed by the Clerk's office
11/2/2006 Adopted

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061226.pdf Authenticated 118K Authenticated

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RESOLUTION NO. 061226

 

Recommending the Tax Increment Financing Commission of Kansas City consider developing proposed plans for tax increment financing housing overlays in the Ivanhoe and Blue Hills Neighborhoods.

 

WHEREAS, the use of tax increment financing (TIF) generated by the increase in value attributable to inflation and appreciation of all the residential parcels in a TIF area to fund housing rehabilitation in selected blighted neighborhoods is consistent with the intent of Missouris TIF legislation and was not the concern of the House of Representatives in its recent review of tax increment financing; and

 

WHEREAS, the Kansas City School District is funded based on a formula approved by the state legislature, the cost of funding schools beyond what is raised in local property taxes is borne by the state through the general fund. TIF does not take income away from the school district; and

 

WHEREAS, the goal for housing investment is to produce positive neighborhood change, trigger other housing investments, and increase the rate of appreciation so that the increment on parcels grows and the rate of investment accelerates and the entire TIF area benefits from investments over time; and

 

WHEREAS, this long-term strategy can reverse the devastating disinvestment, decline in property values and the loss of the middle class that have ravaged neighborhoods like Ivanhoe and Blue Hills and put the Kansas City School District into financial difficulty. Revitalization can reverse these trends, increase values, build new homes on vacant lots, increase the tax base and lower crime so that people of all incomes will pursue opportunities to live in the heart of the city; and

 

WHEREAS, Kansas City has realized success with TIF housing programs. Further, experiences in cities like Chicago and Portland, Oregon demonstrate a sizeable increment generator, such as those created by the usual commercial TIF project, is not required. A TIF housing overlay can be an effective revitalization tool based only on capturing increment from inflation and appreciation; and

 

WHEREAS, Brush Creek Community Partners has worked with the Ivanhoe Neighborhood Council and Blue Hills Neighborhood Association to develop plans to support the neighborhoods respective housing rehabilitation programs with the use of housing tax increment housing revenues; and

 

WHEREAS, actual housing property values in the Ivanhoe and Blue Hills Neighborhoods have increased three to four percent over the last five years and projections indicate a conservative 2% annual increase in housing values will yield over $3 million in the Ivanhoe Neighborhood and over $9.7 million for the Blue Hills Neighborhood for their respective housing programs through the residential TIF overlay; and

 

WHEREAS, these once forgotten inner-city neighborhoods with the highest crime rates in the City can make dramatic turnarounds with the use of TIF revenues to fund their minor home repair, emergency home repair, and in Ivanhoe the home acquisition and rehabilitation programs in targeted areas of the neighborhoods; and

 

WHEREAS, this housing support will optimize other redevelopment involving considerable public and private investment occurring in and around these neighborhoods;

NOW, THEREFORE,

 

BE IT RESOLVED BY THE COUNCIL OF KANSAS CITY:

 

Section 1. That the Council hereby recommends the Tax Increment Financing Commission consider working with Brush Creek Community Partners, the Ivanhoe Neighborhood Council and the Blue Hills Neighborhood Association to develop tax increment financing plans that provide for the proceeds of residential tax incremental financing overlays to be used for the respective neighborhoods housing programs.

 

Section 2. That the Council recommends costs incurred for the required studies, analysis, advertising and notifications, Economic Development Corporation staff work, and Brush Creek Community Partners investment in the development of the plans be reimbursed through the proceeds raised through the execution of the plans.

 

Section 3. That by January 31, 2007, the Tax Increment Financing Commission provide to the City Council a report on the progress of the plans development or residential Tax Increment Financing overlay plans for the Blue Hills and Ivanhoe Neighborhoods for the Councils consideration and action.

 

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