| | | | | | | | | City of Independence | | AGENDA ITEM COVER SHEET |
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| | | | | | | | | BILL NO. 22-761 | Res.No: 6815 |
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| | | | | | | | Agenda Title:
22-761 - A resolution approving a Temporary Building Permit Fee Waiver Program for infill and redevelopment of Single Family Residential. |
| | | | | | | | Executive Summary:
The City of Independence has been committed to fostering redevelopment within distressed areas by encouraging the demolition of sub-standard and dilapidated structures and the construction of new single-family residences and substantial rehabilitation of single-family residences.
The recently adopted City-Wide Housing Study outlined the strategic framework to address key housing goals and objectives that emerged through the course of this study. The goal to reinvest in existing properties emerged with the objectives to create more infill and redevelopment opportunities and to create and refine policies to support redevelopment. To this end, the City would waive the building permit fees to assist in infill, redevelopment and substantial rehabilitation of single-family residences in certain low- to moderate-income Census Tracts.
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| | | | | | | | Background:
Nearly 60 percent of housing in Independence was built in the decades between the 1940s and 1970s. The variety of architectural styles found in older neighborhoods are an asset. However, with much of the housing stock 50 to 80 years old, these homes often face challenges such as deferred maintenance, the need to upgrade systems like plumbing, HVAC, and electrical, and even structural repair. Due to their size, finishes, layout, and condition, they may not meet the needs and preferences of the current housing market.
The City-Wide Housing Study outlined a housing strategy framework that recommended five strategies along with multiple tactics and programs to address housing needs. The goal to reinvest in existing properties emerged with the objectives to create more infill and redevelopment opportunities and to create and refine policies to support redevelopment. As such, the City proposes a Building Permit Fee Waiver Program to address this need.
Purpose of the Building Permit Fee Waiver Program
The purpose of the program is to incentivize property owners within the area covered by the State of Missouri Neighborhood Preservation Act to enhance the area through infill and redevelopment and substantial rehabilitation of single-family residences. The program encourages the demolition of existing structures that may detract from the appearance and functionality of the area while increasing the assessed value of the property through redevelopment.
• Attract infill and redevelopment investment in a distressed area
• Encourage projects that will help reduce neighborhood blight
• Stimulate and facilitate proper design through planned redevelopment
• Encourage the formation of public/private partnerships for revitalization efforts
Geographic Boundaries of the Program
The State’s Neighborhood Preservation Program has identified distressed Census Block Groups, which are areas with a median household income of less than 70% of the median household income for the applicable MSA. See the attached map of the Census Block Group within the city limits.
Features of the Program
The associated building permit fees (i.e., building fees, electrical, mechanical and plumbing fees) for new single family home construction will be waived. The fees not subject to the waiver are the water tap fee and temporary electrical service fee. Infill development fee waivers will be subject to submitting plans that meet all applicable municipal codes and zoning requirements.
Requirements of the Program
The building permit fee waiver would be eligible to property owners/applicants who either construct a single-family residence or substantially rehabilitate an existing single-family residence within the geographic boundary of the Program.
Substantial rehabilitation involves the required repairs, replacement and improvements that involve two (2) or more major building components, exterior building improvements (if required) and costs that exceed 50% (exclusive of soft cost) of the property’s Jackson County market valuation. Major building components consist of roof structures, wall and floor structures, foundations, plumbing, mechanical and electrical systems that are significant to the building and its use.
Length of Program
The Program would run for five (5) years from the passage of the resolution waiving the building permit fees in the specific area. Staff feels this length of time would allow for analysis of how the program performed. If needed, the Program can be extended or ended at any time.
Staff calculated the average building permit fees paid to the City for 28 single family residential properties from 2017-2019 and compared that to the City’s portion of the property tax collected on those properties to determine the payback. It is estimated the payback for this incentive would be approximately three (3) years.
Approved as amended during the meeting.
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Fiscal Impact:
The building permit revenue projections are based on prior year averages plus known upcoming construction activities. Any project that comes forward to utilize this incentive would not impact those revenue projections.
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| | | | | | | | | Department: Community Development | Contact Person: Tom Scannell |
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| REVIEWERS: | | Department | Action | | Community Development Department | Approved | | City Clerk Department | Approved | | Finance Department | Approved | | City Managers Office | Approved | | City Clerk Department | Approved |
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| Council Action: | Council Action: |
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