Main Center Redevelopment Corporation Board

MAIN CENTER REDEVELOPMENT CORPORATION MEETING AGENDA August 21, 2018 9:00 a.m. Pizza Shoppe 1105 W Main St. Blue Springs, MO 64015 1. Approval of Minutes from October 10, 2017 Meeting 2. Main Center Redevelopment Corporation Annual Report (Presentation) 3. Approval of MCRC Tax Abatement Policy 4. Public Officials Liability Training 5. Other Business 6. Adjourn Agenda posted at the following locations: Blue Springs Public Safety Building located at 1100 SW Smith Street Municipal Annex Building located at 1304 W Main Street City’s website http://www.bluespringsgov.com/AgendaCenter August 16, 2018 Teresa Evans, Coordinator Economic Development  MCRC BOARD OF DIRECTORS MEETING MINUTES OF MEETING OCTOBER 10, 2017 A meeting of the Main Center Redevelopment Corporation Board of Directors was held on Tuesday, October 10, 2017, 8:00 a.m. at Pizza Shoppe with Gailen Snyder presiding. BOARD MEMBERS IN Ken Billups, Jr. Cindy Miller ATTENDANCE Jen Hauschild Gailen Snyder Vickie Jacks - Absent Also present were City Attorney Jackie Sommers, Economic Development Manager Mark Stombaugh, Economic Development Coordinator Teresa Evans, Economic Development Accountant Cindy Rubino and Premier RE, LLC (applicant) David Mann CALL MEETING Chairman Snyder called the meeting to order at 8:01 a.m. TO ORDER APPROVE PREVIOUS Cindy Miller moved to approve the Minutes of the August 15, MINUTES 2017 meeting. Motion seconded by Jen Haushchild and carried unanimously. PRESENTATION – Economic Development Manager, Mark Stombaugh made a PREMIER, RE, LLC presentation on the tax abatement application from Premier RE, LLC, 1201 West Main, Blue Springs, Missouri. Mr. Stombaugh discussed the type of interior and exterior improvements included in the projects $350,000 budget and the applications conformity with the adopted Policy. The total value of the abatement reflected in the impact analysis would only be if a matching level of funds were expended. Economic Development Accountant, Cindy Rubino responded that she would be happy to answer any additional questions on the Tax Impact Analysis. Premier RE representative David Mann answered questions related to the projects timing. He stated that with the improvements and licensing related processes they hoped to be open in five months after taking possession. APPROVAL OF PREMIER Cindy moved to recommend the approval of the Premier RE, LLC RE, LLC tax abatement application, providing tax abatement corresponding to the investment threshold 100% for 10 years, and 50% for 15 years, and authorizing President of MCRC to execute the Abatement Agreement at the appropriate time. The motion was seconded by Jen Hauschild and carried with the following vote: Ken Billups, Jr. – AYE Cindy Miller – AYE Jen Hauschild – AYE Gailen Snyder – AYE October 10, 2017 MCRC Board of Directors Meeting Page 2 Vickie Jacks - Absent OTHER BUSINESS Chairman Snyder addressed the group asking for discussion and input on the policy. The MCRC Board of Directors wish to review the language regarding eligible property. There was general discussion about the need for clarification if a new project may be awarded to the same building once the initial tax abatement period has expired. Staff commented that the policy was up for review in 2018 and some language could be explored. ADJOURNMENT At 8:27 a.m., there was no further business to come before the Board; Jen Hauschild moved the meeting be adjourned. Motion seconded by Cindy Miller and carried unanimously. ___________________________________ ATTEST: Gailen Snyder, Chairman ______________________________ 2 Date: April 27, 2018 To: MCRC Board of Directors, Blue Springs City Council, Blue Springs R-IV School District, Jackson County Board of Services, Central Jackson County Fire Protection District, Jackson County, Jackson County Mental Health, Metropolitan Community Colleges, Mid-Continent Public Library, Missouri Blind Pension From: City Staff Subject: MCRC Annual Performance Audit of Revised MCRC 353 Tax Abatement Policy, (April 2017 to March 2018) The Main Center Redevelopment Corporation (MCRC) was formed May 9, 2001, to serve as a tool to bring about the revitalization of the downtown area in Blue Springs. Since 2001, the policy has been revised three times to respond to the changing business environment and the needs of businesses investing in a recovering economy. The current policy was approved by the Blue Springs City Council on June 2, 2014, by Resolution 57-2014. The MCRC Annual Performance Audit for (2017-2018), attached, contains the required data to be measured as outlined in the MCRC Tax Abatement Policy. The following table summarizes the program information for the MCRC as of March 31, 2018. Value of Resolution # of Abatement Investment Policy Years Abatements Number Abatements Period Threshold Granted 2001-2008 26 $734,465 10 years $0 32-2008 2008-2012 1 $129,408 10-25 $50,000 years 10-25 40-2013 2013 2 $229,089 $5,000 years 10-25 57-2014 2014-2018 11 $405,437 $5,000 years TOTAL 40 $1,498,399 Since the inception of the program in 2001, the value of those properties requesting and obtaining tax abatements have increased by 47.37%. Ordinance 4673, approved by City Council on August 7, 2017, adopted the Amended and Restated Development Plan, providing the terms, conditions and restrictions under which tax abatement may be terminated in the event that the property owner for a project fails to comply with the conditions of tax abatement. The Ordinance also removed Project 11, CrossFit Gym located at 200 NW 11th Street, previously approved on April 4, 2016, for non-compliance. Page 2 On September 6, 2017, City Council approved a residential project submitted by Dwellings by Design KC via Ordinance 4683. The redevelopment project includes the addition of an alleyway that would extend from 8th Street to 9th Street, and the extension of sewer and water mains, for allowing construction of 8 new rear entry two story single family homes. The total cost of improvements is $1,626,400. The tax abatement will be initiated separately for each residential lot with a maximum duration for any single lot of 5 years. The estimated tax impact is $97,308, or approximately $12,000 per lot. On November 20, 2017, City Council approved a commercial project submitted by Premier RE, LLC via Ordinance 4699, for repurposing the property at 1201 W. Main Street into a brewery and taproom on the main building level, while maintaining the existing tenant spaces in the lower level of the property. The tax abatement for the project is limited to the lesser of $350,000 or 25 years, with 100% abatement for the first ten years and 50% for the next 15 years. The estimated tax impact is $294,861 for the full 25 years. If you have any questions regarding this memo or the Main Center Redevelopment Corporation 353 Tax Abatement Policy or this report, please contact Cindy Rubino at 816.220.4542.  MCRC Performance Audit of Revised MCRC Tax Abatement Policy For the Period April 2017 - March 2018 Initial Policy Resolution 32-2008 Res 40-2013 Res 57-2014 Summary YR 1 YR 2 YR 3 YR 4 YR 5 YR 1 YR 2 YR 3 YR 4 YR 5 APR 08-MAR 09 APR 09-MAR 10 APR 10-MAR 11 APR 11-MAR 12 APR 12-MAR 13 APR 13-MAR 14 APR 14-MAR 15 APR 15-MAR 16 APR 16-MAR 17 APR 17-MAR 18 Prior to 2008 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Assessed Values (all MCRC parcels) $ 9,392,423 $ 9,439,742 $ 9,162,402 $ 8,462,606 $ 8,226,704 $ 8,422,118 $ 8,402,918 $ 8,542,744 $ 10,419,071 $ 11,118,116 Assessed Values of Properties w/Approved Abatements $ 1,211,163 $ 1,195,684 $ 1,185,963 $ 1,107,868 $ 1,002,446 $ 1,201,421 $ 1,201,421 $ 1,272,691 $ 1,628,613 $ 1,529,664 Value of Abatements Approved $ 734,465 $ - $ - $ 140,000 $ - $ - $ 229,089 $ - $ 13,267 $ 74,500 $ 392,170 Capital Investment Amount (includes incomplete projects) $ 326,082 $ 65,694 $ 373,300 $ 335,780 $ 94,240 $ 472,863 $ 86,489 $ 316,240 $ 199,518 $ 517,029 Abatements Approved 26 - - 1 - - 2 - 2 1 2 Parcels in MCRC (see note below) 233 231 232 233 233 233 234 231 225 229 Parcels Receiving Abatement 24 24 20 20 14 3 12 5 8 4 % of Parcels Receiving Abatement 10.30% 10.39% 8.62% 8.58% 6.01% 5.15% 5.13% 2.16% 3.56% 1.75% # of Permits Issued w/Approved Abatements (per parcel) 1 - 1 1 - 7 1 2 4 7 # of Permits Issued w/o Abatements (per parcel) 6 1 5 5 8 4 6 6 4 6 # of Projects Completed (and units) (per parcel) 5 1 2 6 8 11 7 6 5 5 # of Sq Ft Built or Rehabilitated (current year) 23,705 1,689 13,426 2,010 2,330 18,987 2,333 9,526 12,796 27,043 NOTES: 2009 - The number of parcels in the district was reduced from 233 to 231 due to a parcel merge. 2010 - The number of parcels in the district was increased from 231 to 232 due to a parcel split. 2011 - The number of parcels in the district was increased from 232 to 233 due to a parcel split. 2012 - The number of parcels in the district was unchanged. 2013 - The number of parcels in the district was unchanged. 2014 - The number of parcels in the district was increased from 233 to 234 due to a parcel split. 2015 - The number of parcels in the district was reduced from 234 to 231 due to parcel merges. 2016 - The number of parcels in the district was reduced from 231 to 225 due to parcel merges. 2017 - The number of parcels in the district was increased from 225 to 229 due to a parcel split. MCRC Performance Audit of Revised MCRC Tax Abatement Policy For the Period April 2017 - March 2018 Amount of Abatement Assessed Values 2017 RES 32-2008 RES 40-2013 RES 57-2014 Map ID Capital Name of Original Applicant Address Assessed 2017 Percent Redevelopment Project Description Type of Abatement Initial Policy 5-Year YR 1 5-Year Status (Project #) Investment Value Prior to Assessed Change in Total APR 13-MAR 14 Total Amount Project Value Value Prior to 2008 2008-2012 2013 2013-2017 A B C D E F G H I J K L M N 1(a) John Schmitz - Low Key Productions 1118 W Main St. $ 12,211 $ 26,359 115.86% $ - Install professional recording studio. 100% Real Estate Tax Abatement for 10 Years $ 72,065 $ - Terminated - 2012 Exterior and interior improvements to include new 1(b) David Webb - Chalet Center 710A W Main St. $ 124,835 $ 205,653 64.74% $ - exterior finish, windows, signage, new furnaces and air 100% Real Estate Tax Abatement for 10 Years $ 105,487 $ - Terminated -2012 conditioning units. Project 2(a) - Exterior, interior and mechanical improvements. Updating and repairing the HVAC and 2(a) Mark Roberts - Blue Springs Professional plumbing systems, seal and coat the parking lot, install 100% Real Estate Tax Abatement for 5 Years OR Total new carpet and flooring, install signs and paint. $ 23,008 Terminated - 2008 Building II Project costs, whichever comes first 901 W Main St. Project (4b) - Install sump pump and associated 4(b) excavation. Project 8(a) - Comprehensive remodeling of structure 100% Real Estate Tax Abatement for 10 Years OR Total 8(a) Jim Evans - JD Two LLC $ 70,560 $ 158,022 123.95% $ - $ 129,408 $ - Existing Abatement due to a recent fire. $140,000 abatement Project Costs, whichever comes first Exterior, interior and mechanical improvements to the 100% Real Estate Tax Abatement for 10 Years OR Total 2(b) Gailen Snyder - Apartments 906 W Main St. $ 15,330 $ 24,732 61.33% $ - apartment building. Updating and repairing HVAC $ 14,477 $ - Terminated - 2013 Project Costs, whichever comes first system, installing new windows and winterizing. Exterior, interior and mechanical improvements that include updating and repairing the heating, ventilation 100% Real Estate Tax Abatement for 10 Years OR Total 2(c) Billups & Snyder Insurance 905 SW Walnut St. $ 20,616 $ 47,486 130.34% $ - $ 12,500 $ - Terminated - 2010 and air conditioning system, install new windows and Project Costs, whichever comes first replace a garage door. Project 2(d) - Exterior, interior and mechanical improvements to the multi-family structure including 100% Real Estate Tax Abatement for 10 Years OR Total 2(d) $ 11,049 Terminated -2008 new furnaces and air-conditioning units and new siding Project Costs, whichever comes first Ken Billups - Apartments 903 SW Jones St. and trim. 100% Real Estate Tax Abatement for 5 Years OR Total 10(b) $ 16,720 $ 24,925 49.07% $ - Project 10(b) - New HVAC and windows. $ 11,214 Existing Abatement Project costs, whichever comes first Project 2(e) - Exterior, interior and mechanical improvements to the multi-family structure including 100% Real Estate Tax Abatement for 10 Years OR Total 2(e) $ 16,170 Terminated - 2012 Ken Billups - Apartments 110 SW 10th St. new furnaces and air conditioning units and new siding Project Costs, whichever comes first and trim. 10(a) $ 16,340 $ 23,484 43.72% $ - Project 10(a) - New HVAC and windows. 100% Real Estate Tax Abatement for 1 Year $ 2,053 Terminated - 2016 100% Real Estate Tax Abatement for 10 Years OR Total 3(a) Kenneth Scott Yates - Scotty's Guitar Shop 1005 W Main St. $ 7,975 $ 22,080 176.87% $ - Completely refurbish building interior and exterior. $ 11,000 $ - Terminated - 2012 Project Costs, whichever comes first Project 3(b) - Improve and refurbish the front of the 100% Real Estate Tax Abatement for 10 Years OR Total Snowy River Enterprises - Brand Office $ 71,675 Terminated - 2014 building, interior finish, roofing. Project Costs, whichever comes first 3(b),9(a) 1103 W Main St. Project 9(a) - rear deck installation, new heating & air 50% Real Estate Tax Abatement for 15 Years OR Total Snowy River Enterprises - Pizza Shoppe $ 22,615 $ 75,178 232.43% $ - conditioning, electrical, plumbing, refurbish $ 78,063 $ - Existing Abatement Project Costs, whichever comes first interior/exterior, new windows, awnings, roofing. Complete interior remodel, limited exterior remodel, 100% Real Estate Tax Abatement for 10 Years OR Total 3(c) Richard Zeitner - Associates in Psychology 1007 SW Walnut St. $ 18,418 $ 32,640 77.22% $ - $ 21,936 $ - Terminated - 2014 landscaping, and painting. Project Costs, whichever comes first Replace the building's front to improve energy 100% Real Estate Tax Abatement for 10 Years OR Total 4(a) John & Vickie Jack 1124 W Main St. $ 54,912 $ 69,002 25.66% $ - efficiency, replace upstairs windows, lay new carpet, $ 42,674 $ - Terminated - 2012 Project Costs, whichever comes first rewire and update HVAC and some painting. 4(b) - See 2(a) New roof, windows, guttering and central air 100% Real Estate Tax Abatement for 10 Years OR Total 4(c) Stephen & Sandra Taylor 706 NW Summit St. $ 12,143 $ 28,256 132.69% $ - $ 5,324 $ - Terminated - 2015 conditioning. Project Costs, whichever comes first  Amount of Abatement Assessed Values 2017 RES 32-2008 RES 40-2013 RES 57-2014 Map ID Capital Name of Original Applicant Address Assessed 2017 Percent Redevelopment Project Description Type of Abatement Initial Policy 5-Year YR 1 5-Year Status (Project #) Investment Value Prior to Assessed Change in Total APR 13-MAR 14 Total Amount Project Value Value Prior to 2008 2008-2012 2013 2013-2017 A B C D E F G H I J K L M N Waterproofing, interior rehab, tuck pointing, and exterior 100% Real Estate Tax Abatement for 10 Years OR Total 5(a) Reid & Cole Real Estate 1101 W Main St. $ 19,778 $ 38,736 95.85% $ - $ 18,000 $ - Terminated - 2015 painting; remodel work for ADA compliance. Project Costs, whichever comes first 100% Real Estate Tax Abatement for 10 Years OR Total 5(b) Larry Scott 202 SW 10th St. $ 14,157 $ 21,801 53.99% $ - New roof, siding, gutters and landscaping. $ 6,559 $ - Terminated - 2011 Project Costs, whichever comes first Project 5(c) - Awning replacement, new air conditioner $ 3,455 and new guttering. Project 7(a) - Add addition to the rear of the building 100% Real Estate Tax Abatement for 10 Years OR Total 5(c), 7(a) Dunn Right LLC dba Liddle's Sport Shop 1117 W Main St. Terminated - 2015 (existing sporting goods store). The start time for the 10 Project Costs, whichever comes first $ 31,616 $ 38,742 22.54% $ 36,000 $ - year abatement for both projects is the Project 5c start time. $ - Repair, upgrade interior walls, doors, strip and carpet, 100% Real Estate Tax Abatement for 10 Years OR Total 5(d) Jerry Lunn - ACL Realty LLC 1133 W Main St. $ 30,299 $ 67,888 124.06% $ - $ 26,577 $ - Terminated - 2010 repair exterior steps, doors and siding. Project Costs, whichever comes first Painting and repair work on plumbing, electrical, windows and floors, refinish and restore upstairs 100% Real Estate Tax Abatement for 10 Years OR Total Gina Caputo - Winkler Properties LLC exterior, HVAC improvements and cleaning/tuck $ 55,108 $ - Terminated - 2015 5(e) 1120 W Main St. Project Costs, whichever comes first pointing of exterior brick; remodel second floor for single $ 20,237 $ 54,907 171.32% residence. Brewers Sports Bar $ - Remove stairs and install new deck. New doors on the front and side, new bay window and 100% Real Estate Tax Abatement for 10 Years OR Total 6(a) Robert Watson 712 W Main St. $ 53,031 $ 62,276 17.43% $ - $ 26,400 $ - Terminated - 2012 fireplace and all new library paneling. Project Costs, whichever comes first Complete rehab of the top floor of the building including 100% Real Estate Tax Abatement for 10 Years OR Total 6(b) Clay & Donna Swope 1112 W Main St. $ 26,162 $ 55,383 111.69% $ - $ 30,000 $ - Terminated - 2015 new furnaces, windows, flooring, electrical rewiring, etc. Project Costs, whichever comes first 7(a) - See 5(c) Projects 7(b)1 though 7(b)5 were approved together for 7(b) Evans - Bahr - Anielak 805 - 807 W Main St. $ 192,407 $ 188,943 -1.80% $125,000. Upgrade existing exterior façade at the 100% Real Estate Tax Abatement for 10 Years $ 125,000 $ - existing strip center. 7(b)1 805A W Main St. $ 24,301 $ - Terminated - 2015 7(b)2 805B W Main St. $ 30,989 $ - Terminated - 2016 7(b)3 805C W Main St. $ 49,145 $ - Terminated - 2014 7(b)4 807A W Main St. $ 58,607 $ - Terminated - 2014 7(b)5 807C W Main St. $ 25,901 $ - Terminated - 2016 8(a) - See 2(a) 9(a) - See 3(b) 100% Real Estate Tax Abatement for 10 Years + 50% 9(b) America's Community Bank $ 108,667 $ 114,208 5.10% $ - Exterior demolition and remodel. Real Estate Tax Abatement for 15 Years OR Total $ 151,026 $ - Existing Abatement Project Costs, whichever comes first 10(a) - See 2(e) 10(b) - See 2(d) 11 Crossfit Gym 200 NW 11th St. Rescinded 202 SW 9th Street $ 18,595 $ 18,595 0.00% 12 Dwellings by Design 807 SW Walnut Street $ 10,368 $ 10,368 0.00% 12(a) Lot 7 824 SW Jones Street $ 74,768 New home construction. $ 11,971 Pending Cost Certification 100% Real Estate Tax Abatement for 5 Years OR Total 12(b) Lot 8 820 SW Jones Street $ 72,618 New home construction. $ 11,971 Pending Cost Certification Project Costs, whichever comes first 12)c) Lot 9 206 SW 9th Street $ 71,232 New home construction. $ 11,971 Pending Cost Certification 12(d) $ 74,768 New home construction. Tax abatement per lot will commence immediately in $ 12,279 Pending Cost Certification Lot 10 827 SW Walnut Street the year after cost certification and transfer to MCRC 12(e) Lot 11 $ 3,000 Demolition of existing structure. have been completed. $ 12,279 Pending Cost Certification 12(f) Lot 12 $ 3,000 Demolition of existing structure. $ 12,279 Pending Cost Certification 12(g) Lot 13 $ 12,279 Pending Cost Certification 12(h) Lot 14 $ 12,279 Pending Cost Certification  Amount of Abatement Assessed Values 2017 RES 32-2008 RES 40-2013 RES 57-2014 Map ID Capital Name of Original Applicant Address Assessed 2017 Percent Redevelopment Project Description Type of Abatement Initial Policy 5-Year YR 1 5-Year Status (Project #) Investment Value Prior to Assessed Change in Total APR 13-MAR 14 Total Amount Project Value Value Prior to 2008 2008-2012 2013 2013-2017 A B C D E F G H I J K L M N 100% Real Estate Tax Abatement for 10 Years + 50% Interior demolition; new electrical feeds and panel; and 13 East Forty Brewing 1201 W Main Street $ 120,000 $ 120,000 $ 189,500 Real Estate Tax Abatement for 15 Years OR Total $ 294,861 Pending Cost Certification tenant finish. Project Costs, whichever comes first Properties w/ Approved Abatements $ 1,037,992 $ 1,529,664 47.37% $ 488,886 $ 734,465 $ 129,408 $ 229,089 $ 405,437 Capital Inv. Corner Ventures LLC 1120 NW Oak Street $ 43,878 $ 500 Tenant finish for The Hide Out bar. Capital Improvement Capital Inv. BEB Holdings 1114 W Main Street $ 61,021 $ 1,700 Replace main panel. Capital Improvement Capital Inv. Michael & Melissa Morris 1116 W Main Street $ 62,367 $ 7,625 Replace rooftop A/C unit. Capital Improvement Capital Inv. Vicky Samrany Trust 1401 SW Walnut Street $ 30,213 $ 3,000 Repair structure due to car accident. Capital Improvement Capital Inv. Darren Meyer Trust 1400 SW Walnut Street $ 12,200 $ 1,000 Install 7' privacy fence and 4' wood picket fence. Capital Improvement Capital Inv. City of Blue Springs 1001 W Main Street $ 16,113 $ 6,600 Install electrical vehicle charging stations. Capital Improvement All Properties $ 1,755,456 $ 509,311 NOTE: The Amount of Abatement shown in Columns K through M is based on the lessor of the Estimated Tax Impact Over the Life of the Project, the Estimated Project Improvements, or if the abatement has expired, it is the Actual Amount of Tax Abatement.  Legend NW Zaun Ave MCRC District Boundary NW 12th St Terminated Abatement NW Knox St Existing Abatement Capital Investment NW Vesper St esper St Approved Abatement NW Vesper St NW 11th St NW 10th St NW North Summit Cir W Summit St NW 14th St 3b & 9a NW Summit St NW Summit St 2a, 4b & 8a 5d 7b2 NW 15th St 5c & 7a 3a 7b5 7b1 4c «7 ¬ 13 NW Lakeview Rd 4a 5a 2b W Main St 7b4 7b3 9b 2d &10b 6a 5e 1a 6b W Smith St 1b SW 14th St 10a 12(a) 12(b) SW 11th St 5b 12(c) SW 15th St 12(d) 12(h) SW Walnut St 12(e) 12(g) 12(f) W Walnut St 3c 2c SW 7th Street Ter SW 10th St SW 13th St SW 9th St ore St ± Not to Scale MCRC Performance Audit 2017-2018 May 18, 2018  City of Blue Springs, Missouri Main Center Redevelopment Corporation Incentive Policy I. Program Statement The intent of the Main Center Redevelopment Corporation (MCRC) is to strengthen the economic viability of the Main Center area by providing financial incentives for improving the appearance and structural conditions of its buildings and increasing the infill development of vacant parcels and population density to further support commercial properties. Main Center has been at the heart of Blue Springs development since early 1880’s. Twelve of the 126 buildings in the redevelopment area were constructed prior to 1900, while buildings in the entire area average over 50 years old. The maturity of the area brings with it both charm as well as challenges in that many of the buildings and land parcels do not conform to current standards and practices. The Main Center Redevelopment Corporation was incorporated to allow the City of Blue Springs to assist business and property owners in meeting these challenges. The ultimate success of the Main Center is dependent on private sector commitment. It is up to the merchants, building owners, residents, professionals and investors to improve the value of their businesses and the condition of their buildings. These incentive programs are intended to stimulate improvements to the Main Center Corridor by providing innovative financing mechanisms. It presents an opportunity to preserve our community’s heritage, and to enhance and promote the unique atmosphere which Main Center can provide. Successful implementation will result in a stronger Main Center and a stronger Blue Springs community. II. Downtown Master Plan A number of downtown buildings have been altered in a manner that does not contribute to the appearance or the image of Main Center. In some cases, alteration is not consistent with the overall design of the structure itself. Such building treatments are in direct conflict with the need for a comprehensive, coordinated approach to improvements. Several guiding documents have been developed with public input for the downtown area. In January 2007, the City adopted the Downtown Master Plan and in 2017 Downtown Design Guidelines were established. It is important that structures, both in their design and use, conform to the Downtown Master Plan and Design Guidelines. Accordingly, no incentive program shall be granted unless, at a minimum, the proposed Redevelopment Project conforms to these standards as determined by the Downtown Review Board. This Policy provides for two types of incentives: (1) real property tax abatement and (2) a reduction in permit fees which would be applicable to 1 new development and redevelopment under the city code. It is contemplated that development may request and receive one, or both incentive programs. The two are not considered mutually exclusive. III. Description of Tax Abatement Program Pursuant to Chapter 353, RSMo, the Main Center Redevelopment Corporation has the ability to abate real property taxes for redevelopment projects. The amount and length of the tax abatement is dependent on which “Level” applies to the project: A, B or C. The incentive amount varies with each Level depending upon the investment amount. Level A The purpose of Level A is to attract sizable (market shifting) investments. There are two classes within Level A: Investment Threshold: Minimum $750,000 Incentive Amount 10 years 100% abatement + 15 years at 75% abatement Investment Threshold Minimum $1,000,000 – Requires “But for” economic analysis, paid for by the applicant Incentive Amount 10 years 100% abatement + 15 years at 100% abatement Level B The purpose of Level B is to attract mid-market investments (market stimulating): Investment Threshold $100,000 - $749,000 Investment Amount 10 years 100% abatement + 15 years at 50% abatement Level C The purpose of Level C is to attract market stabilizing investments (market stabilization): Investment Threshold $5,000 - $99,000 Incentive Amount: Equal to cost of improvements or 100% abatement for 10 years, whichever occurs first 2 Determination of qualified investment threshold. If the project involves new construction, or rehabilitation of an existing structure, interior and exterior costs may count towards the investment range. The total project budget for the investment should look to allocate 50% to exterior costs and 50% to interior costs, subject to the MCRC Board of Directors review. Interior costs shall not include furniture, appliances, inventory, trade or display fixtures. The MCRC Board of Directors shall review the project budget and make a recommendation to the City Council for approval. Project density. A project shall generally relate to an individual land parcel, but treating multiple properties as if assembled may be appropriate depending upon the circumstances. This policy shall not generally apply to individual single family residential structures, unless it is appropriate to treat a project involving multiple structures as a whole. Commercial projects may have one or more units per structure. Impact on School District Because new residential projects which qualify for Levels A or B have the potential to significantly generate students into the school district, affected parties shall confer with the District to identify mitigating factors, such as entering into a PILOT Agreement, as may be appropriate given such a project's financial viability. For example, one new residential single family dwelling would not generally be expected to qualify at Levels A or B, and requiring a PILOT on this lower investment amount may render this Policy's abatement inconsequential as a means to incenting development which conforms to the Downtown Master Plan. However, a multiple family residential structure (e.g., attached housing, four-plex, etc.) may well qualify at Levels A or B and, given this higher investment amount, a PILOT Agreement would be appropriate. “PILOT” refers to payments in lieu of taxes to be made to all taxing authorities whose property tax revenues are affected by the abatement on the same pro rata basis and in the same manner as the ad valorem property tax revenues received by each taxing authority from such property in the year such payments are due. But-for economic analysis means that, with respect to a particular Redevelopment Project, the applicant would not reasonably be anticipated to undertake the Redevelopment Project without the tax abatement incentive, which may be evidenced by an applicant’s affidavit attesting to this fact. The cost of the but-for economic analysis will be paid for by the applicant. IV. Description of Permit Fee Program City Code Section 805.030 provides the public purpose and framework for a partial waiver of building, plan review, and sign permit fees inclusive of water and sewer system development fees (Fees) to encourage in-fill development and redevelopment in the Main Center area. In each situation, upon request, the Fees within the district will be reduced by one-half (½), or 50%. 3 V. Eligible Property Redevelopment projects may be located on any parcel within the MCRC Redevelopment Area. See attached Exhibit B for the redevelopment area boundaries. VI. Tax Abatement Application Process: Applications for the program will be accepted by the City Staff on behalf of Main Center Redevelopment Corporation. A $250.00 filing fee to MCRC is required with the application for investment Level “C” or a filing fee of $750.00 for investment Level “A” and “B”. The Application will first be reviewed by the Downtown Review Board for a determination of whether the proposed Redevelopment Project conforms to the Downtown Master Plan. If the Downtown Review Board determines that the proposed Redevelopment Project conforms to the Downtown Master Plan, then the application will be considered by the MCRC Board of Directors for recommendation to the City Council, including a recommendation as to the appropriate incentive Level. The City Council shall then consider the MCRC recommendation. If the City Council favorably considers the application, it will adopt an ordinance approving the redevelopment project and authorizing the tax abatement. The property owner and MCRC will then enter into a Memorandum of Understanding setting forth program responsibilities and expectations and execute deeds conveying the property – albeit briefly – to MCRC and then back to the property owner, which then serves as the statutory trigger for the tax abatement. The tax incentive is available for only those projects that have been approved by the City Council before the project is started. The project is considered started when the applicant has received one or more building permits for the project VII. Permit Fee Reduction Process Requests for reduction in Fees can be made to the Community Development Department along with the submission of applicable Permit Application materials. VI. Expiration This Policy expires five (5) years from the date of City Council approval. No applications will be accepted after this five-year period, but applications submitted before the end of the five-year period will be processed in accordance with this Policy. The next date this policy is to be reviewed by the City Council is June, 2018. VII. Performance Audit To assist in measuring the effectiveness of this Policy, City Staff shall collect the following benchmark data: baseline annual assessed valuation of the Redevelopment Area; number of building permits issued with and without abatements within the 4  Redevelopment Area identifying the number of projects (and units) completed per parcel; capital investment amount; amount of square feet built or rehabilitated. This data shall be documented annually. City Staff shall present to the MCRC Board of Directors and the City Council a Performance Audit that quantifies and analyzes the program results. City Staff shall also make a recommendation whether the program should be continued or modified. All affected taxing jurisdictions shall be provided with a copy of the Performance Audit and notified of the date that it will be presented to the City 5