first suburbs handbook - kansas city - mid-america

FIRST SUBURBS

HANDBOOK

Case studies and development tools for first-tier suburbs

Mid-America Regional Council www.marc.org January 2004

This report was prepared by the Mid-America Regional Council

A great deal of thanks goes to the communities and city staff thatassisted MARC in assembling the information.

Mid-America Regional Council600 Broadway, Suite 200

Kansas City, Missouri 64105Phone 816/474-4240 • Fax 816/421-7758

www.marc.org

Table of Contents

Introduction......................................................................................................3

Case Studies – Kansas City Region ....................................................................5Projects

Loft Renovation Projects/Downtown Revitalization: Leavenworth, Kansas ............................. 5Northgate Village Homes: North Kansas City, Missouri ........................................................ 6Santa Fe Trail Neighborhood: Independence, Missouri ............................................................ 7Midtown/Truman Road Corridor: Independence, Missouri ...................................................... 8Crescent Creek: Raytown, Missouri ........................................................................................ 9Turtle Hill Redevelopment: Kansas City, Kansas ................................................................... 11

PoliciesRental Licensing: Kansas City, Kansas, Independence, and Prairie Village ........................... 13Downtown Development Guidelines: Raytown, Missouri, and Overland Park, Kansas ........ 15Neighborhood Preservation Program: Overland Park, Kansas .............................................. 16International Existing Building Code: Independence, Missouri .............................................. 17Minimum Standards Code Enforcement: Grandview, Missouri ............................................. 18

Case Studies – Other Regions ........................................................................ 19Projects

Aggie Village: Davis, California ............................................................................................. 19Ohlone-Chynoweth Commons: San Jose, California ............................................................ 20The Poplar Project: Boulder, Colorado .................................................................................. 21Addison Circle: Addison, Texas .............................................................................................. 23The Village at Shirlington: Arlington, Virginia ...................................................................... 25

PoliciesHousing Rehabilitation Subcode: State of New Jersey .......................................................... 26Smart Development Code Handbook: State of Oregon ........................................................ 28Downtown Master Plan: Stoughton, Wisconsin .................................................................... 29Downtown Design Guidelines: St. Cloud, Minnesota ........................................................... 31Housing Preservation Plan: Shaker Heights, Ohio ............................................................... 33Strategic Investment Plan: Shaker Heights, Ohio ................................................................. 35

Using Development Tools .............................................................................. 37

Development ToolsResidential Development Assistance Programs: Missouri ............................................................ 39Residential Development Assistance Programs: Kansas ............................................................... 43Economic Development Assistance Programs: Missouri .............................................................. 47Economic Development Assistance Programs: Kansas ................................................................ 55

Conclusion .................................................................................................... 60

Introduction

Introduction

First suburbs are communities where a majority ofthe housing was built just after World War II andlimited undeveloped land exists within the city’sboundaries. These communities are nowexperiencing some of the same challenges thathave plagued core cities, including businessesmoving out and declining retail sales, increases inrental housing, stagnant or declining housingvalues, and issues related to maintaining theirinfrastructure. Neighborhoods with these issues donot always fall neatly within a given community.For example, the cities of Independence andOverland Park have large sections of theircommunities that are classified as first suburbs, butthey also have sections that are growing andconsidered new suburbs. Core cities, such asKansas City, Missouri, and Kansas City, Kansas,also have neighborhoods that fall into the firstsuburb categorization.

For the last two years officials from first suburbs inthe Kansas City metropolitan area have beenmeeting with the support of the Mid-AmericaRegional Council, studying what othercommunities are doing, and sharing theirfrustrations, successes and ideas. These suburbshave formed the First Suburbs Coalition.

The members of the First Suburbs Coalitionrepresent communities where, in aggregate, almost50 percent of their housing was built between1940 and 1970. Coalition members representalmost 25 percent of the metropolitan area’spopulation.

The First Suburbs Coalition has hosted a series ofspeakers on key issues facing first suburbs. Inaddition, the Coalition has identified three keyissues facing first suburbs that form the basis for theorganization’s agenda:

• Modernizing housing stock, which wasprincipally built in the years following WW II.This housing stock is often smaller than currentstandards, does not contain the amenities thatare expected in a modern home, may have beenbuilt with lower quality materials, and often is

First Suburbs Coalition Members

Missouri Kansas

GladstoneGrandviewIndependenceNorth Kansas CityRaytownRiversideSugar Creek

FairwayMerriamMissionMission HillsMission WoodsOverland ParkPrairie VillageRoeland ParkWestwoodWestwood Hills

built on a lot that allows little room forexpansion.

• Retaining and attracting businesses that servetheir communities. Retail businesses, inparticular, have moved to more modern suburbanlocations, stripping first suburbs of services andrevenue.

• Maintaining and upgrading old infrastructure.This task is especially difficult when revenue isstagnant or declining.

A principal initial goal of the First SuburbsCoalition was to identify what tools and resourceswere available to first suburbs and to identifyexamples of first suburb communities successfullyusing these tools. This handbook represents abridge between the coalition’s early meetings andits agenda for the future. The handbook documentscase studies of successful developments in firstsuburbs in Kansas City and from around thecountry. It also provides a series of policies used bylocal communities and communities around thecountry that can be effective tools in dealing withfirst suburb issues.

This handbook is not all-inclusive, but illustratesthat local officials in first suburbs can take actionsthat can positively shape their communities’ future.

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Case Studies: Projects

Loft Renovation Projects/Downtown Revitalization:Leavenworth, Kansas

Kansas City Region

Choctaw Lofts (www.lvarea.com)

Leavenworth’s Riverfront CommunityCenter (www.lvks.org)

Project Description

Searching for a way to bring people back to thedowntown area, the city of Leavenworth turned towhat they already had: numerous buildings thatwere being underutilized. The Northeast AreaRevitalization (NEAR) strategic plan wasdeveloped in 1997 to explore ways to encouragereinvestment in the area. A resolution established arebate of 95 percent of the actual property taxincrease associated with property improvementsmade in the prescribed area. Since the inception ofthe plan, the area has seen reinvestment of over$12 million. For city officials, this reinvestmentis a part of their overall goal for a successfuldowntown: a partnership between quality housingand commerce.

The city has experienced a variety of success inboth small and large projects. Shawnee Residencesis a “neotraditional” structure designed to blend inwith the large downtown buildings. The projectwas built on a cleared site and is now home to 44residences for the elderly.

The Abernathy Lofts is one of the more recentprojects in Leavenworth. Developers areconvertingan 1870swarehouse to54 unitsusing federalLow-IncomeHousing TaxCredits. TheChoctawLofts, asmaller six-unit project,is also being converted from an1870s office building.

The city has committed funds for publicimprovements. The 1888 Union Depot has beenconverted to the city’s Riverfront Community

Center, whichnow serves as amultipurposecomplexprovidingsocial,educational,and recreationalopportunities tothe community.LeavenworthLanding Park, aquarter-mile linear park along the Missouri River,commemorates the transportation links that madethe city important in the 1850s, includingriverboats, railroads, wagon escorts, outfitters, trailswest and military roads. The city acquired the landin 1995 and constructed the park and multi-usetrail the following year using funds awarded by thestate of Kansas and the federal TransportationEnhancement Program. Another project justbeginning is the Three Mile Creek parkway thatwill join the Landing with Haymarket Square.

Lessons for Kansas City First Suburbs

Achieving quality infill projects is important forfirst-tier suburbs to be able to offer residents aunique living environment. Leavenworthrecognized the underutilization of buildings in itsdowntown area, and encouraged reinvestment byremoving the barriers to development. The cityalso invested public funds into projects that helpmake the entire area more attractive to residents.

Resources

Current Programs, www.lvks.org/current_programs.htmJohn Kreuger, Planning and Community Development

Director, Leavenworth, Kansas, 913/680-2614 Spotlight on Leavenworth, www.lvarea.com/news/Welcome to the City of Leavenworth, Kansas, www.lvks.org/

community_center.htm

Local Projects

5

Northgate Village Homes: North Kansas City, MissouriExpected Completion — 2005

Project Statistics

Site Area

ConstructionTimeline

Built Components

Amenities

29 acres

2.5 years

• 96 single-family homes• 94 row houses• 29 patio homes• 400 multi-family apartments• 180 senior housing units• 5 acres neighborhood retail

• Pocket parks• Access to downtown NKC

Project Description

Designed to “serve the needs of people and familiesfrom all ages and walks of life,” Northgate Village isa unique development in North Kansas City. Theproject’s developer, Hunt Midwest, has more than1,800 acres of land currently under developmentin the Kansas City metropolitan area, and is wellknown throughout the region. With the NorthgateVillage project, the developers are hoping tocreate a neighborhood that offers residents everynecessary amenity.

The project will include a mix of housing types(single-family, row houses, patio homes, apart-ments, and senior housing units), neighborhoodretail stores, and parks/open space. The row housesand single-family homes are designed with eclecticarchitecture found in the earliest neighborhoods inthe area. Front stoops and porches adorn thesingle-family houses and garages are accessedthrough rear alleys, creating a pedestrian-friendlyenvironment. Townhomes are located on the busier

perimeter streets to establish a transition intothe community. The entire neighborhood is seton a grid street layout, allowing for greaterconnectivity to areas within and outsidethe neighborhood.

The project began with the approval of a TaxIncrement Financing (See Appendix A) plan and adevelopment agreement with the selecteddevelopers. It required almost two years to acquirethe necessary land before the application processcould begin. The project required a number ofcomplex approvals for zoning changes, platting,architectural compliance and restrictive covenants.


First-tier suburbs increasingly face a diversedemographic makeup. No longer are these areashomogeneous in age, race or income group, andhousing stock must be updated to meet thesedemographic changes. With a project likeNorthgate Village, North Kansas City recognized

an opportunity to work with a well-knowndeveloper to provide a wide range of housingchoices. The project acknowledges thechanging housing needs of people over time(from apartments to single-family homes tosenior housing units). First-tier suburbs canuse projects like this to offer residents anopportunity to remain in their communitiesover a lifetime.

Project Designer/Developer

Hunt MidwestBloodgood Sharp Buster ArchitectsPlanners, Inc.

Resources

About Northgate Village Homes, www.northgatevillage.info/index.ssiMike Smith, Assistant to the City Administrator,North Kansas City, Missouri, 816/274-6000.

Case Studies: Projects Kansas City Region

Local Projects

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Santa Fe Trail Neighborhood: Independence, MissouriInitiated in 1997

Streetscape rendering of improvements to thearea. (www.qualityplaces.marc.org)

Project Description

The Santa Fe Trail neighborhood, located in thefirst-tier suburb of Independence, Missouri, is anambitious redevelopment of a blighted area. Theproject will include retail, office and residentialcomponents. Infrastructure improvements are alsoplanned for the 29-acre site. The project aims toincrease the walkability of the area and create amore pedestrian-friendly environment, drawingmore people back into this neighborhood.

Initially, the city performed a blight study to aid inthe approval of the Santa Fe NeighborhoodRevitalization Plan. The study results showed thatabout 51 percent of the structures in theneighborhood were built from the 1940s through1969, and few had benefited from any majorimprovements. The Tax Increment Financing (TIF)and Chapter 353 area established as a result of theplan includes commercial and retail establishmentsalong Noland Road and in the Santa Fe neighbor-hood, which was made up of mostly substandardsingle-family housing. The redevelopment plancreated a tax-abatement program to benefitproperty owners in the 353 area and encouragenew construction and rehabilitation of bothcommercial and residential projects.

The plan also called for the clearing of substandardand obsolete structures, and the transfer ofproperty to TIF developers for construction ofresidential and commercial space along the NolandRoad portion of the site.


The Santa Fe neighborhood has experienced theproblems of many residential areas in first-tiersuburbs throughout the country. With moststructures built well over 30 years ago anddeteriorating infrastructure, substantialimprovements were necessary to make the areaattractive to new residents. By judiciously usingthe redevelopment tools available, the city wasable to motivate property owners to reinvest intheir homes and businesses. Other first-tier suburbscould use the lessons from this project to addresstheir own needs for private investment to helpneighborhoods retain and attract residents.

Resources

Creating Quality Places, qualityplaces.marc.org


Local Projects

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Midtown/Truman Road Corridor: Independence, MissouriInitiated 1995Project Description

The Midtown/Truman Road Corridor (M/TRC)project area is located in the heart of Indepen-dence, where major historic institutions such as theTruman Home, the Truman National LandmarkDistrict and the Historic Independence Square canbe found. The mostly residential neighborhoodwas built during the early 1900s with somebuildings dating to the mid-1800s. The age ofbuildings and infrastructure contributed to majordeterioration, and many larger homes had beenrenovated into multiple units, causingovercrowding and parking problems.

The M/TRC study addressed a range of issuesregarding neighborhood and housing amenities,unit types and mix, home ownership versus rentalproperty issues, rents and purchase prices, desiredretail uses and general marketing strategies. TheM/TRC Redevelopment Corporation employedsite visits, group meetings, demographic research,surveys and a review of competing housing marketsto begin developing a new plan for the area.

The redevelopment project designed to correctthese problems included unprecedented publicreinvestment fueled by tax increment financedollars. Most improvements have ranged from

$15,000 to $50,000 per unit. Public reinvestmenthas been a major factor in the rehabilitation ofthe neighborhood. There is a comprehensiveutility-burial program taking place, as well as ablock-by-block program to completeimprovements to water mains, sewer lines, curbsand gutters, sidewalks, street pavements and streettrees. This public “facelift” is another factorencouraging private reinvestment.

The project has been funded through manydifferent types of programs. Tax IncrementFinancing of approximately $350,000 per yearsupported most of the infrastructure improvementsin the residential areas, land acquisition, and otheractivities related to redevelopment. Residentialimprovements include both rehabilitation and newconstruction projects that have been fundedthrough private contributions by residentialhomeowners and various institutions in the area.

The streetscape enhancements will have aparticularly significant impact within theIndependence community due to the historicimportance of the area. Uniform historic lamppostsand banners will help define the district and fostera sense of community.


Public investments into a blighted neighborhoodare necessary to build confidence in the project.When substantial improvements are made usingpublic funds, the confidence of property ownerscan be restored. First-tier suburbs can useIndependence’s exerience as a guide to analyzingthe assets that already exist in their communities.Although not many areas have such an establishedhistoric district as Independence, the lessonremains the same: build on what you have.

Resources

Creating Quality Places, qualityplaces.marc.org


Local Projects

8

Crescent Creek: Raytown, MissouriExpected Completion — 2004

Project rendering from Dial Realty. (http://dialkc.com/crescent1.html)

Site plan for the proposed Crescent CreekDevelopment. (http://dialkc.com/crescent_site.html)

final plat for city approval. The city expectsthat the final approval for the project will occurearly in 2004.


Project Description

Crescent Creek is a Traditional NeighborhoodDevelopment (TND) with 132 dwellings proposedfor a 22-acre tract of land. As a TND, the project isa mixed residential development of single-familydetached houses, townhomes, and paired houses(i.e. duplexes), as well as single-family detachedhomes centered around two green-space areas.This design will encourage a diverse range ofresidents with sale prices ranging from $115,000to $225,000 and up.

Streets in the development will be narrow and treelined. Garages are located to the rear of the lotsand are accessed from alleys, allowing porches tocreate a more pedestrian-friendly environment inthe front of homes.

The development will have approximately sevenacres of parkland and open space in five differentareas. Residents will have access to walking trails, aswimming pool and clubhouse, a playground andother park improvements. One particularly uniqueaspect of the project is that three of the parklandareas will be dedicated to the city but maintainedby the homeowners association. To ensure thatthere will be adequate funding for the maintenanceof these parkland areas, a Community ImprovementDistrict (CID) will be established for thedevelopment, so that homeowners association duescan be collected as part of the property taxes paidby each of the property owners. The CID fundswill pay for maintenance of street trees that will beplanted throughout the development as well as themaintenance of all alleys. With the creation of theCID, the project will have very little financialimpact on the city.

The project has received rezoning approval by theRaytown Board of Aldermen as a Planned LowDensity Residential (R-P-1) development. It hasalso received approval of its preliminary site plan,concept plan, preliminary design manual andpreliminary plat. The applicant, Dial Realty, muststill submit a final site plan, final design manual and

Local Projects

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For the city of Raytown, one key to the review andapproval process was educating city staff andelected and appointed officials on what TND isand why/how it could work in Raytown and theKansas City metro area. To achieve this, the cityhad staff participate in a trip with the Kansas CityHome Builders Association to look at various TNDprojects in the Denver metro area.

Afterwards, three of the city’s aldermen went on asimilar trip to Denver. Through this experience,city officials were able to truly understand what aTND could look like in the context of a city.

For the past three years, Raytown’s PlanningCommission has had a Creating Quality PlacesCommittee studying the various design aspectsthat help make a community a “quality place.” This

Crescent Creek, continued


provided a solid base of education and informationthat the Planning Commission was able to drawfrom when reviewing this project. It also helpedthe Planning Commission and Board of Aldermenavoid falling into an anti-density mindset andallowed them to stay focused on design aspectsthat provide density without forsaking the basics ofgood design.


Dial Reality Froelich Pycior Homes 180 DegreeDesign Studio

Resources

John Benson, Senior Planner, Raytown, Missouri,816/737-6000.

Crescent Creek Residential Community, Dial Realty, http://dialkc.com/res_raytown.html

Local Projects

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Turtle Hill Redevelopment: Kansas City, Kansas

Project Description

The Turtle Hill neighborhood in Kansas City,Kansas, is located just north of downtown. Theneighborhood has considerable historic value withresidences of some of the city’s founders still inplace. The neighborhood takes its name from theWyandotte Indian totem, the turtle. In recentyears, the neighborhood has experiencedconsiderable decline with low-income familieshaving difficulty maintaining the large, old homes.

City Visions Ministries, the non-profitredeveloper of Turtle Hill, began operations in1993, rehabilitating two homes in the Chelseaneighborhood of Kansas City, Kansas. Theycontinued to rehabilitate single-family homes inthe Chelsea area until they were asked by the cityto consider taking on the redevelopment of theTurtle Hill neighborhood. This represented a bigchange for the organization, going from primarilyrehabilitation projects to new home developmentand the redevelopment of an entire neighborhood— with all of the complex issues of infrastructure,financing and social cohesiveness.

City Visions started the project in 1996, spendingtheir first year building trust with neighborhoodresidents by discussing every possible aspect ofthe project with them. They did a property-by-

property survey of the neighborhood and began toassemble investment partnerships. Over a seven-year period City Visions constructed 29 newhomes, rehabilitated five homes that it owned,financed the rehabilitation of an additional 19homes, and rehabilitated one commercial office. Italso oversaw the construction of new infrastructurein the neighborhood. Just over $5 million has beeninvested in Turtle Hill since 1996, with 56 percentof the funds coming from private sources. Theproject used Tax Increment Financing, CDBGfunds, HOME funds, foundation funds and statehousing trust funds.

Assembling the financial package was a majorsourceof frustration at the outset of the projectbecause neither the neighborhood nor thedeveloper had a track record. It was also difficult,initially, to market the development. City Visionshad three model homes that sat for a year with over300 showings before the first sale was made, andinitial low appraisals of the properties caused largelosses. For example, City Visions invested$110,000 in their first home, but it was appraisedfor only $60,000. It took nearly three years toclose that gap. Home values have doubled duringthe project’s timeframe.


Local Projects

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The Turtle Hill redevelopment eventually includeda 58-unit rental townhome project immediatelysouth of the neighborhood, in the northernportion of the downtown area. The townhomeproject included 18 market-rate units. All 18 unitswere fully leased in 90 days and there is now awaiting list.


Successful redevelopment projects, like Turtle Hill,require patience and persistence on the part of all

Turtle Hill, continued


partners. Initially, such a project can be slow todevelop, as the trust of the neighborhood is earnedand the elements of the project are put in place. Inaddition, it takes time to build a market. Duringthis slow startup period there has to be amechanism to cover costs and losses. Inclusion ofthe neighborhood group and careful planning,although time consuming, pay dividends in theoverall success of the project. All of the partners insuch a project have to be flexible in order to dealwith inevitable unforeseen occurrences. Thesemight include a buried fuel tank or cistern, astubborn property owner, or the added timeneeded to get all of the partners on the same page.It is essential that there be an experienced,knowledgeable, committed developer at the centerof the project. The developer has to have the trustof both the neighborhood and the investmentpartners, and must be able to move quickly anddecisively while all around them others move as ifmired in molasses.


John Harvey, Executive Director, City VisionMinistries, www.cityvisionministries.org,913/371-5200

Local Projects

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Case Studies: Policies Kansas City Region

Local Policies

Rental Licensing: Kansas City, Kansas; Independence, Missouri; andPrairie Village, KansasCommunity Descriptions

Kansas City, Kansas, is considered an urban corecity. Its economic base is industrial and it has apopulation of 146,978. Independence, Missouri,the home of Harry S. Truman, is growing on itseast side, but also has a large, older portion thatfaces the same problems as other first suburbs.Independence has a population of 113,027. Thecity of Prairie Village, Kansas, is a first-ringresidential suburb with a population of 21,764.

Policy Issue

Residential rental properties present specialproblems for core cities and first suburbs.Often these properties are not maintained aswell as owner-occupied property, and propertyowners may live in another city making itdifficult for cities to get action on maintenanceissues. Properties that are not maintained canquickly affect adjacent properties and thesurrounding neighborhood.

Policy Description

Rental licensing is one way that a community cangain additional leverage in its efforts to ensure thatproperty is well maintained. The program usuallyworks in conjunction with a city’s codeenforcement program, but may have its own set ofcriteria. The city issues licenses for residentialrental properties, and requires landlords to eithermaintain their rental properties or face loss of theirlicense to operate.

Kansas City, Kansas, charges $33 per single-familyunit and more for multi-family properties. This feesupports a staff of four inspectors, a supervisor, twooffice staff and a director. In 2003, there were6,288 buildings licensed with a total of 15,953units. The Rental Licensing Program, which is runby the Neighborhood Services Department,conducted 10,002 inspections in 2003. Besidesreacting to complaints, the office conductsproactive inspections of targeted areas and

biannual inspections of all multi-family projects. Anappeals board oversees the program. The programalso works in conjunction with the LiveableNeighborhood task force to offer training forlandlords. This training includes screening tenantsand property maintenance.

Independence does not license properties, but,instead, licenses landlords as businesses (Chapter 5,Code of Ordinances). Landlords are subject topenalty if they do not abide by the city’s buildingmaintenance codes. The city also has a separateLandlord and Tenant Code (Chapter 4, Article 11,Code of Ordinances) which sets out the respon-sibilities of both landlords and tenants. The city ofIndependence and the Eastern Jackson CountyLandlords Association conduct landlord trainingeach year.

Prairie Village charges owners of single-familyrental property $45 per year, and the city basesmulti-family fees on the square footage of theproperty. Every rental property receives anexterior inspection each year. In 2003, 18 of the664 licensed rental properties had violations.

Adoption Process

Kansas City, Kansas, and Independence conductedextensive meetings and appointed specialcommittees or task forces to consider the issue ofrental licensing. These committees included both

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neighborhood residents and landlords. Althoughconsideration of the policies was heated, theapproach of including neighborhood residentsand landlords in the development of theprograms greatly helped both cities createsuccessful approaches.

Benefits

Implementation of a rental-licensing programallows a city to clearly identify who is responsiblefor specific properties. Of greatest importance, theprogram provides a city with leverage overlandlords, making the continuance of theirbusinesses subject to appropriate propertymaintenance. Neighborhood groups have foundthe program especially helpful when a particularrental property becomes a major problem forthe neighborhood.

Rental Licensing, continued


Local Policies

Challenges

Overcoming landlord opposition is a big challengewhen initially considering adoption of a rental-licensing program. Some landlords believe this isan invasion of property rights. Another challengeis to set an annual fee that provides an adequateamount of funds to administer the program.

Resources

Doug Luther, Assistant City Administrator, Prairie Village,Kansas, 913/385-4603, www.pvkansas.com/citygov/bus_license.shtml

Debby Graber, Program Coordinator, Kansas City, Kansas,913/573-8649, www.wycokck.org/nrc/rentals.htm

Larry Kauffman, Project Manager, Independence, Missouri,816/325-7172, www.ci.independence.mo.us/citycode.stm

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Downtown Development Guidelines: Raytown and Overland Park


Local Policies

Community Description

The city of Raytown, Missouri, is a first suburbwith a population of 30,060. Raytown issandwiched between the core city of Kansas Cityand the rapidly growing suburb of Lee’s Summit.The city of Overland Park, Kansas, is a rapidlygrowing suburban community with a population of158,430. The northern portion of the city,including its downtown, is older, with many of thecharacteristics of first suburbs.

Policy Issue

Downtown areas in Raytown and Overland Parkwere no longer the centers of retail or othercommunity activity. The cities were seeking waysto encourage development and redevelopment intheir downtowns that would revitalize the areas’roles as unique destinations and gathering placesin the community.

Policy Description

The Raytown CBD Design Elements are anextensive set of standards, guidelines and

illustrationsthat areintended tocreate anattractive andprosperousdowntown.According tothe guidelines,“the purposeof the CBDDesignElements is

to enhance and create a traditional downtowncore that forms a commercial cultural center forthe city of Raytown by emphasizing appropriateand complementary architectural, landscape andsite design standards for new and redevelopedproperties…”

The Overland Park design guidelines are not asingle set of standards applicable to all parts ofdowntown, but five separate sets of guidelines,

each applicable to adifferent portion ofdowntown. The masterplan identified fivedistinct districts, each ofwhich contributed tothe downtown’scharacter and vitality.The guidelines setstandards for develop-ment including density,landscaping, buildingmaterials, parking andcirculation — eachdesigned to enhancethat particular districtand contribute to the overall vitality of downtown.

Adoption Process

In both cities, the process started with thedevelopment of a master plan for downtown.Raytown followed its master plan with a task forceof stakeholders, which developed guidelines andrecommended them to the city council. TheOverland Park plan identified the variousdowntown districts and recommended designguidelines for each district.

Challenges

In both cases, dealing with a wide range ofinterests was a major challenge. Overland Parkchose to identify five separate districts to addressdifferent issues. Raytown used a task force ofstakeholders to focus on a variety of interests.

Resources

Tim Truesdale, Director of Community Development,Raytown, Missouri, 816/737-6059, www.raytown.mo.us/City/pdf/CBD%20Design%20Elements%20City.pdf (fordesign elements) and www.qualityplaces.marc.org/4a_studies.cfm?Case=80 (for case study).

Bryan Bear, Senior Planner, Overland Park, Kansas, 913/895-6197, www.opkansas.org/_Bus/Pre-construction_Resources/downtown_mp.cfm (for guidelines) andwww.qualityplaces.marc.org/4a_studies.cfm?Case=76(for case study).

Downtown Overland ParkClock Tower and Plaza

Downtown Raytown design element

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Neighborhood Preservation Program: Overland Park, Kansas


Local Policies


The city of Overland Park, Kansas, is a rapidlygrowing suburban community with a population of158,430. The northern portion of the city,including its downtown, is older, with many of thecharacteristics of first suburbs.

Policy Issue

According to Overland Park, “Neighborhoods inOverland Park are aging and residents face distinctchallenges in maintaining their neighborhoods.Since neighborhoods in the northern part of thecity are older, these areas face situations andchallenges that differ from their counterparts inother newer areas of the city. Further, many earlydevelopments did not establish homes associations,therefore, these residents have had a limitedorganizational structure for addressingneighborhood issues.”

Policy Description

In 1991, the city of Overland Park, in an effort toaddress issues facing its older neighborhoods,instituted a Neighborhood Preservation Program.The program consists of two components:traditional code enforcement and a neighborhoodconservation program. With four code inspectors,

working neighborhood organizations in order toimprove communications both within theneighborhoods and between the neighborhoodsand the city. The Neighborhood ConservationProgram helps residents organize newneighborhood groups; provides short-term supportto the new groups; and offers guidance, as well asleadership and communication training, to newleaders and group members. Seventeenneighborhood groups have been organized.

The Neighborhood Preservation Program alsoprovides a number of online guides and brochuresthat address both community organizing andcode issues.

Adoption Process

The city began the Neighborhood ConservationProgram with a pilot program. They thendesignated 48 neighborhood-planning areas whichform the basis for neighborhood organizing.

Challenges

The greatest challenge is finding the appropriatebalance of providing enough support to get aneighborhood group organized without havingneighborhoods become dependent on thosesupport services.

Resources

Skip Moon, Supervisor, Overland Park, Kansas, 913/895-6372, www.opkansas.org/_Res/Neighborhoods/Neighborhood_Preservation/index.cfm

the city responds to complaints about codeviolations and educates the public on code issues.

The Neighborhood Conservation Program wasinitiated to help older neighborhoods develop

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International Existing Building Code: Independence, Missouri


Local Policies


Independence, Missouri, the home of Harry S.Truman, is growing on its east side, but it has alarge, older portion that faces the same problems asother first suburbs. Independence has a populationof 113,027.

Policy Issue

First suburbs have a large stock of older buildings.Although cities want to encourage the rehabili-tation and use of these older buildings, they alsowant to make sure that the buildings are safe.Applying new building construction standardsto existing structures is often difficult andexpensive and can discourage rehabilitation ofthese older structures.

Policy Description

The International Code Conference (ICC)develops standardized building and property codesfor local governments. Recognizing the problempresented by existing structures, the ICC createdthe International Existing Building Code. Thepurpose of the code is described in its preface:“This code is founded on principles intended toencourage the use and reuse of existing buildingsthat adequately protect public health, safety, andwelfare; provisions that do not unnecessarilyincrease construction costs; provisions that do notrestrict the use of new materials, products, ormethods of construction; and provisions that donot give a preferential treatment to particular typesor classes of materials, products, or methods ofconstruction.”

Independence adopted this code in late 2003 toprovide a standardized set of codes for

rehabilitation that will, if not encourageredevelopment, at least not be a barrier tosuch development.

Adoption Process

The International Existing Building Code wasadopted by city ordinance in a process the same asthe adoption of other building codes. The

adoption was preceded by public discussion at citycouncil meetings.

Challenges

Since the International Existing Building Code is acompletely new code, it will take both developersand building code officials some time to becomefamiliar with the code and how it differs from thecodes that apply to new construction.

Resources

Dennis Enslinger, AICP, Senior Planner, Independence,Missouri, 816/325-7833.

International Code Council, www.iccsafe.org

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Minimum Standards Code Enforcement: Grandview, Missouri


Local Policies


The city of Grandview, Missouri, is a first suburbbordering the south side of Kansas City. The cityhas a population of 25,542.

Policy Issue

Property maintenance, especially exteriormaintenance, is a major issue for core cities andfirst suburbs. Lack of maintenance may come as aresult of absentee landlords or homeowners withinsufficient income. However, once one or twoproperties in a block begin to deteriorate, theblight can quickly spread to the rest of the blockand adjacent neighborhoods. Therefore, it isimportant that cities make every effort to keep theexterior appearance of properties up to code.Working on a complaint-only basis often does notreach the vast majority of problem properties.

Policy Description

Grandview, like many communities, has a minimumstandards code for properties. And like mostcommunities, Grandview enforced the code on acomplaint basis for many years. Several yearsago, Grandview decided to take a moreproactive approach to code enforcement ofexterior problems.

Each year, the city conducts a windshieldinspection of all residential properties in the city.Based on this survey, the city sends out notices toproperty owners citing code violations and

providing instruction on what owners must do tocorrect the problems. Last year, the city sent out1,200 to 1,300 letters. This year, more emphasis isbeing placed on commercial properties.

Adoption Process

The proactive approach to code enforcement wasadopted as an administrative action, a method forusing the already existing minimum standardscode. However, it required the concurrence ofthe city council.

Benefits

The proactive approach allows the city to addressa large number of visible code violations. A letteris a fairly low-keyed way of notifying propertyowners about problems, and it generally gets thedesired result without any further interventionon the part of the city. This method of codeenforcement helps improve the general appearanceof the community.

Challenges

As with most policies, initiation of the program wasthe most challenging part. Some citizenscomplained that this was intrusion by governmentinto their property rights. However, once theyrealized that even city council members mightreceive a letter, most opposition withdrew.

Resources

Cory Smith, City Administrator, Grandview, Missouri,816/763-3900

18

Case Studies: Projects Other Regions

Nationwide Projects

Aggie Village: Davis, CaliforniaNovember, 2001Project Description

Aggie Village is a 12-acre, mixed-use neighborhoodconstructed on the southern edge of downtownDavis, California. Its location is a key element ofthe project, as it not only connects the Universityof California campus and the historic downtown,but also serves as a gateway into the city. The five-block site includes retail, residential and universityuses. It also features useable open spaces andbicycle trail connections to major destinationswithin the city and the campus. Building designscomplement the diverse architectural character ofthe surrounding neighborhood, with Californiabungalows as well as Victorian and Mission stylehomes. Front porches, balconies and otherappealing details recall an earlier era of cozy small-town life in Davis, yet each home is designed withhigh-tech hook-ups and energy-efficientcharacteristics. The narrow, tree-lined streetsaccommodate visitor parking, and each home hasits own garage.

Innovative detached cottages or “granny flats”behind many of the homes can be used byhomeowners as offices, guest cottages or rentalunits. Each unit has a separate entrance and isdesigned to help encourage a pedestrian-orientedstreetscape in the neighborhood.


This project is a good example of a small-scale infilldevelopment project. By mixing uses andproviding residents with small service and retailbusinesses, first suburbs can offer a unique livingenvironment. Further, this project shows how infilldevelopment can help tie places in a city together.Aggie Village uses its central location to link thecity’s downtown and the university through bikeand pedestrian paths and through its architecture.It offers single-family housing at a higher density,with the granny flats to the rear of homes.

Project Designer

Peter Calthorpe and Associates

Resources

Smart Growth Principles and Practices Selected Case Studies. Cityand Regional Planning Department, CaliforniaPolytechnic State University, San Luis Obispo, Calif.

Aggie Village Site Plan (www.housing.colostate.edu/apartments/universityapts/aggie.html)

Typical Streetscape (www.housing.colostate.edu/apartments/universityapts/aggie.html)

19

Ohlone-Chynoweth Commons: San Jose, CaliforniaMay, 2001


Nationwide Projects

Project Description

The Commons is a transit-based, intergenerationalcomplex that combines affordable housing andretail space with easy access to a light rail stationthat serves the city of San Jose and allows for anumber of transportation choices for residents ofthe development. The project, an infilldevelopment, was constructed on top of anunderutilized parking lot leased from the SantaClara Valley Transportation Authority. It includesone-, two-, three- and four-bedroom apartmentsand townhouses, an on-site child care center, retailstores, a resident community center, and acomputer learning center. There are also severalplay areas and parks for children, including a mist-cooled bamboo forest.

Development and Implementation Strategies

Numerous city departments and companies cametogether to make this project a reality. The projectdeveloper, Eden Housing, Inc., is a non-profitcorporation founded in 1968 to support anddevelop affordable housing, provide social servicesand create sustainable development. The groupcollaborated with the city of San Jose and theSanta Clara Valley Transportation Authority toovercome obstacles and complete the project. A

federal home loanbank providedfunding throughBay View Bank andWells Fargo Bank.Wells Fargo alsoprovided a $7.4millionconventionalconstruction loan,to be paid by theproject’s tax creditinvestor, UnionBank of California.A $574,000 grantfor constructionwas provided bythe MetropolitanTransportationCommissionthrough theirTransportation forLivable Communities program.


This project is an excellent example of how localorganizations, city governments and privateindustry can collaborate to create a project thataddresses infill issues, provides affordable housing,and includes elements of sustainable design.

Project Designers

Eden Housing, Inc.Chris Leman and Associates

Resources

Ohlone-Chynoweth Commons, San Jose, Metropolitan TransitCommission, www.mtc.ca.gov/publications

Transit Based Affordable Family Housing Opening in San Jose,Eden Housing, Inc., www.edenhousing.org

Stop Sprawl: Fall 2000 Sprawl Report, The Sierra Club,www.sierraclub.org/sprawl/50statesurvey/states.asp

Project Statistics

Site Area

Land Use

Amenities

8.4 acres

4,400 square feet

• Retail space includescoffee shop, video store,dry cleaner

• Child care center• Computer learning center

Housing

Commercial/Retail

23 units/acre195 total units

Interior view of the Commons(www.urbanecology/portfolio/eden)

Typical Streetscape (www.svmg.org/committees/housing)

20

The Poplar Project: Boulder, ColoradoApril, 1996


Nationwide Projects

Project Description

Located in northern Boulder, Colorado, thePoplar Project was the city’s first owner-occupied, affordable housing project. Itincludes 14 dwelling units on 1.4 acres, andwas completed as a result of a public/privatepartnership. The project includes a commonlawn area and nearby pedestrian paths.Applicants were required to meet stringentqualifying criteria, and resale restrictions wereestablished to maintain the project’s statusas affordable.

Development and Implementation

Strategies

Two local architects, John Wolff and TomLyon, formed a non-profit organization calledthe Affordable Housing Alliance (AHA) toprovide homeownership opportunities to low-income families through the use of severaldifferent strategies. These included a sweat-equity approach to construction to helpreduce costs and help foster a sense of communityamong residents.

The AHA partnered with the Boulder HousingAuthority to develop the project, and workedclosely with the city of Boulder’s Department ofHousing and Human Services. One requirement ofthe project was that proceeds from home saleswould be used to produce additional affordablehousing in the Boulder area. The parcel wasacquired from a local developer by the BoulderHousing Authority in 1985. While the HousingAuthority had intended to use the site to developaffordable housing, no plans were developed andthe site stood vacant for almost 10 years until AHAcame forward. Although the site density originallyapproved by the city was for 20 multi-family units,the developers wanted to build 14 single-familyhomes, so approval by the planning commissionwas required. Two formal public meetings werefollowed by an open house, in which neighbors

and concerned citizens were invited to reviewdesigns and exchange ideas in a neutral setting.Smaller meetings in private homes followed theopen house, and project represen-tatives continuedtheir efforts to educate concerned neighbors aboutthe issue of affordable housing.

The developers took advantage of available CDBGfunds to help pay for land acquisition andpreconstruction costs.

Planning and Design Characteristics

The project is located in the Forest Glennplanned-unit development, a subdivision consistingof custom-built, single-family homes, townhouses,condominiums, a Montessori school, and a fewsmall businesses. The Poplar Project tookadvantage of some nearby recreation opportunitiesthat include tennis courts, a public recreationcenter, and a pedestrian/bike trail systemconnecting to open space.

Project Statistics

Site Area

Land Use

Amenities

1.4 acres

18 percent

• Retail space includescoffee shop, video store,dry cleaner

• Child care center• Computer learning center

Housing

Commercial/Retail

82 percent9.7 units/acre

Construction Timeline January 1995–April 1996

Built Components • 14,000 sq. ft. residential• 3,000 sq. ft. open space• 14 dwelling units

21


Nationwide Projects

Nontraditional design characteristics includedriveways to the rear of houses and a common lawnarea for residents. A key objective of the projectwas to encourage a sense of community and allowopportunities for neighborly interaction and publiclife. The homes are configured around the commonlawn area in a horseshoe, with all homes facing thelawn. Homeowners drive down one of the twoalleys at the rear of the homes, park in the partiallyconcealed car pockets, and enter through theirfront — and only — doors.

The homes were designed with Victorian stylearchitecture, and include porches and whitepicket fences.


The developers faced stiff opposition initiallybecause of misconceptions regarding affordablehousing. However, cities and developers in theKansas City area can use the example of the PoplarProject’s intensive outreach program as a method ofovercoming initial objections to infill development

The Poplar Project, continued

Site layout. (www.poplarhouse.com/catalog)

View of the Green, the common lawn area, from a home inthe Poplar Community. (www.aiacolorado.org/aiac/awards/award-co97)

projects. By taking action in the early phases of theproject, developers helped to influence publicopinion and reduce the obstacles to completion ofthe homes.

The project itself is an excellent example of howinfill development can take advantage of existinginfrastructure and recreation facilities to reducecosts and increase the attractiveness of the area topotential buyers. First suburbs contain numerousopportunities for such developments.

Project Designers

Affordable Housing AuthorityArchitractor Design Group, Inc.

Resources

AIA Colorado-Design Awards, www.aiacolorado.org/aiac/awards/award-co97.html

Smart Growth Principles and Practices Selected Case Studies, Cityand Regional Planning Department, CaliforniaPolytechnic State University, San Luis Obispo, Calif.

John Wolff, John Lyon, and David O’Neil. The Poplar HouseCatalog, www.poplarhouse.com/catalog.htm

22

Addison Circle: Addison, TexasExpected Completion by 2005


Nationwide Projects

Project Description

Addison is a traditional suburb located northwestof Dallas, Texas. Landlocked and at almost 80percent buildout, the city chose to take advantageof this site as one of the few areas suitable for ahigher-density, mixed-use project. Unlike theconventional suburban design that dominatesAddison, the project will include a residentialneighborhood of mid-rise housing with supportingretail amenities and a higher-density office andcommercial district.


The city encouraged a project of this type and sizefor the site, and approached the landowner,Gaylord Properties, about creating a “town center”project. Gaylord Properties teamed with PostProperties, an Atlanta-based REIT, to develop aplan for the site. Addison committed $9.5 millionover the life of the project to infrastructure,including roads and open space improve-ments,creating a public-private partnership.


Addison Circle developers have successfullyapplied traditional planning and developmentconcepts, such as placing residential units aboveshops and restaurants, integrating community

pocket parks throughout neighborhoods,providing a human-scale pedestrian experience,and offering housing for a mix of income levels,all in a nontraditional location — the suburbs.

Most residential buildings are four stories high,with three stories of residences above ground-floor shops and small service businesses. Themodern building design features also includebalconies and bay windows. Residentialbuildings typically rise from a stone base, whichis topped by a red brick facade.


This project offers a successful example of a cityencouraging the size and type of project desiredfor an area rather than waiting for a project to beproposed. Although a site of 80 acres may notbe available in all cities, a project like this couldoccur on a smaller scale. The city and

Project Statistics

Site Area

Land Use

Amenities

80 acres

Office: 35 percentRetail: 10 percent

• Retail space• Public park

Housing

Commercial/Retail

55 percent

Construction Timeline 1995–2005Eight development phases

Built Components • 1,000,000 sq. ft. office• 250,000 sq. ft. retail• 3,000 dwelling units

Architectural elements such as bay windows andmultiple front doors enliven the streetscape, as doeshigh-quality public infrastructure. (Urban Land,September 1998.)

23


Nationwide Projects

developers showed tremendous creativity andforesight in producing a development thatdeviated from the traditional design of thissuburban area. By creating a strong publiccommitment to the project, city officials helpedthe landowner and developers move forward withsuch a large project.

Project Designers

Gaylord PropertiesPost PropertiesRTKL Associates

Resources

“Addison Circle Revisited,” Urban Land Institute, September,1998.

Creating Quality Places, Mid-America Regional Council,www.qualityplaces.marc.org

RTKL Associates Projects,www.rtkl.com/retail/docs/gosling.pdf


Addison Circle, continued

24

The Village at Shirlington: Arlington, Virginia1987


Nationwide Projects

Project Description

This redevelopment project took place on the siteof a 1950s suburban shopping mall. To help turnthe shopping mall into a “Main Street,” the projectincluded street landscaping and new streetfurniture. Developers were able to preserve most ofthe original buildings on the site and the area isnow a large, mixed-use, retail and housing center.


The project developed as a result of a partnershipbetween The Oliver Carr Company and the siteowners. The partners originally planned todevelop a high-rise office center and a regionalmall, but agreed to build a mixed-use project.Working with city officials and members of thecommunity, the partners negotiated on suchaspects of the project as what types of uses shouldbe included and parking requirements. Thedeveloper agreed to finance the new infrastructureand renovation. The county agreed to fund theburial of utility lines and total landscaping ofthe area.


Taking advantage of buildings that were already onsite, the developers attempted to preserve as manystructures as possible, adding extra stories to someto provide more space for office and retail. Theoriginal design of the shopping center, however,was automobile oriented. Designers attempted tochange this by using a smaller street width, withlarger sidewalks, more landscaping and more streetfurniture.

Parking structures were built to reduce the numberof surface-level parking lots, many of which werereplaced by residential buildings. The designersalso created a system of shared parking. During theday, parking is used mainly by office workers, butat night and on weekends, parking structures areprimarily used by retail and entertainmentcustomers. The existing buildings were renovated

with limestone and granite on the exterior, andnew curbs and sidewalks were installed.


First suburbs in the area can use this as an exampleof a major redevelopment project. Although large,vacant parcels of land may no longer be availablein many first suburbs, redevelopment of outdatedshopping centers and strip malls represents thebest opportunity for new mixed-use projects.

Project Designer

The Oliver Carr Company

Resources

Creating Quality Places, Mid-America Regional Council,www.qualityplaces.marc.org

“Shirlington: It’s Not a Close Secret.” The Washington Post.December 11, 1993.


The Village at Shirlington, Urban Land Institute ProjectReference File. Oct.-Dec. 1989. http://20786.218.154/casestudies/C019020

Project Statistics

Site Area

Land Use

Amenities

25 acres

Office: 39 percentRetail: 8 percent

• Pedestrian arcade• Movie complex

Housing

Commercial/Retail

49 percent

Construction Timeline 1985–1987

Built Components • 80,000 sq. ft. office• 428,000 sq. ft. retail• 490 dwelling units

25

Case Studies: Policies Other Regions

Nationwide Policies

Housing Rehabilitation Subcode: State of New JerseyDecember, 1997Community Description

Almost half of New Jersey’s 3.1 million homes werebuilt before 1959. Many of the communitiesexhibit the characteristics of first-ring suburbs,where necessary investments into existing housingstock and other buildings have not been kept up.The cost of completing rehabilitation work acts asa disincentive to investment in existing buildings.

Policy Issue

Without private rehabilitation of homes, thehousing stock in a first-tier suburb could continueto deteriorate. By adopting codes or guidesthat make the process easier for property owners,a city can overcome this barrier. This maymean removing standards that apply to newbuildings, but are not necessarily appropriatefor existing structures.

Policy Description

Because of the age of the housing stock in thestate, officials recognized the importance ofrehabilitation and conversion projects in state,local, for-profit and non-profit efforts to expandthe supply of affordable housing. They alsorecognized the added difficulty rehabilitation andconversion projects face when they are asked tomeet modern codes. For new buildings, the processis straightforward according to author WilliamConnolly. “Materials to be used, processes to befollowed, and safety standards to be met are clearlystated and the cost of compliance is predictable.”The same is not true for developers looking torehabilitate older housing. The modernconstruction standards applied to these olderbuildings did not demonstrate improvements insafety and generally proved cost prohibitive todevelopers.

The Housing Rehabilitation Subcode wasdeveloped to guide rehabilitation projects andapply codes that identify the restrictive nature ofworking on existing buildings. Instead of basing

requirements on the cost of the work to beperformed, as many building codes now do, theNew Jersey code looks at the nature of the work.They established three types of projects —rehabilitation, change of use and additions —along with subcategories. The code includes agradual increase in requirements as the scope of theproject increases. It establishes specificrequirements for each category of work, includingproducts and practices, materials and methods, newbuilding elements, basic requirements, andsupplemental requirements.

Adoption Process

New Jersey’s Rehabilitation Subcode wasdeveloped by the Department of CommunityAffairs (DCA), a state-level organization that offersa wide array of financial and technical-assistanceprograms to local governments, non-profitagencies and residents. These programs respond toissues of public concern, including fire andbuilding safety, housing production, communityplanning and development, and local governmentmanagement and finance. In addition, the

Rehabilitation projects in the state increased by almost 5percent in the first year after the subcode was approved.(www.state.nj.us/dca)

26


Nationwide Policies

department worked in concert with a 30-membercommittee under the coordination of theCenter for Urban Policy Research at RutgersUniversity. This diverse committee included codeofficials, fire officials, architects, historicpreservationists, advocates for the disabled andgovernment representatives.

During a two-year period, the group met anddiscussed ways to ensure that while rehabilitationof older buildings should not be made costprohibitive by requiring developers to meet allmodern codes, certain standards would still beestablished. The committee submitted its draft toDCA staff in early 1997, and a proposal waspresented at two public hearings where commentswere received and discussed. After some minorclarifications and changes, the document wasapproved in December 1997.

Benefits of Implementation

Recognizing that some modern code requirementsare unnecessary and cost prohibitive for developersand homeowners who want to improve existingbuildings, the state of New Jersey proved thatcompromises do not have to mean a lower qualityof development. First-ring suburbs in the KansasCity region can use this plan as an example of howto change their “building code philosophy.” Insteadof assuming that the goal is to have existing

buildings meet modern codes, the RehabilitationSubcode allows the applicant to choose the scopeof the project. The code allows the applicant torealize the positive effects of money invested in anexisting building, even when it is not specificallyput towards code compliance.

For first suburbs, removing barriers to investing inexisting buildings is an important way toencourage residents and developers to activelypursue projects in their own neighborhoods. Moresensible regulations can save money not only forprivate residents and developers, but also fortaxpayers when a community undertakes arehabilitation project.

Challenges

The state had to undertake an aggressive programto retrain officials and building industry membersto apply the new code. The initial cost of thetraining was high.

Resources

Rules that Make Sense — New Jersey’s Rehabilitation Subcode,William Connolly, www.state.nj.us/dca/codes/rehab/pioneerart.shtml

Programs Book, New Jersey Department of CommunityAffairs, www.nj.gov/dca/programsbook/programsbook.

State of New Jersey, www.state.nj.us/dca/codes/rehab/pioneerart.shtml

Rehabilitation Code, continued

27


Nationwide Policies

Smart Development Code Handbook: State of OregonAugust, 1997Community Description

Oregon has long been known for its dedication tovarious forms of growth management at both thestate and local levels. With a growing population,Oregon felt the pressure of increased development,but the population’s traditional “love of the land”forced officials to reevaluate how growth wouldtake place in the state.

Policy Issue

The major issues involved with a Smart Growthcode are the conservation of land and a morebalanced approach to development. First-tiersuburbs should be especially interested in a codethat helps promote projects that offer the maximumuse of the land.

Policy Description

In 1995, the Oregon State Legislature confirmedits support of land-use planning by passing HouseBill 2079. Later codified as Oregon Revised Statute197.296, the bill requires communities to identifyand evaluate measures that will help themaccommodate necessary development whileensuring a high quality of life for residents. Usingfunds from the Transportation and GrowthManagement (TGM) Program, the stateDepartment of Transportation and Department ofLand Conservation and Development workedtogether to create a document that drew on thebest features of older neighborhoods andcombined them with the best ideas of the present.

The result is the Smart Development CodeHandbook, which provides guidance tocommunities in determining whether their localcodes and standards encourage, support or impedesmart development. The handbook outlines fiveprinciples of smart development: efficient land use,full utilization of urban services, mixed uses,transportation options, and detailed, human-scaleddesign. The handbook offers advice tocommunities in identifying the specific regulationsthat act as obstacles to smart development and

ways to achieve better development. Byidentifying different strategies that support theprinciples of smart development, the handbookserves as an easily accessible guide for local officialsand citizens. The document includes examples ofcode language from communities in Oregon andaround the country that cities can use to revisetheir own statutes.

Adoption Process

As discussed above, the project began as a result ofa state-wide mandate for local communities toevaluate their codes against a set of smartdevelopment principles. The development of theactual handbook was funded through a jointproject of the Department of Transportation andDepartment of Land Conservation andDevelopment.


Easily accessible, this handbook clearly outlinesspecific steps that cities can take to change codesthat are detrimental. For first-tier suburbsespecially, a handbook such as this providesinformation on establishing higher densities,promoting accessory units and mixing uses. Theuse of specific examples from Oregon communitiescould help first-tier suburbs evaluate their owncodes and see where changes may be appropriate.

Challenges

This state-level project involved the cooperationand coordination of numerous individuals. Thework was also greatly supported by the statelegislature and the majority of citizens. If a similarproject were to take place in either Kansas orMissouri, elected official and citizen support wouldneed to be developed.

Resources

Smart Development Code Handbook and Appendix, State ofOregon Transportation and Growth ManagementProgram, www.lcd.state.or.us/tgm/publications.htm

28


Nationwide Policies

Downtown Master Plan: Stoughton, WisconsinJune, 2000Community Description

The city of Stoughton is located about 20 milessoutheast of Madison in Dane County, Wisconsin.With a population of almost 12,500, Stoughtonsees itself as a growing community that maintains asmall-town flavor and a high quality of life. Thecity is home to a number of historical buildings andprides itself on its rich architectural history andwell preserved downtown.

Policy Issue

Creating a vibrant commercial core can be key fora community to attract visitors to the area andprovide residents with necessary amenities. Adowntown can also create an identity for thecommunity. Having a master plan allows a city tocreate a comprehensive vision, rather thanapproving projects in a piecemeal fashion.

Policy Description

With 67 historical buildings in the downtown area,the city recognized the importance of maintainingthose buildings and creating a vibrant andinteresting downtown area. The city wasundertaking a number of different projects thatincluded a renovated city hall. With the intentionof making significant infrastructure and streetscapeimprovements to the downtown area andencouraging private reinvestment, the city decidedthat a master plan would be an essential tool for asuccessful downtown.

The plan consisted of several key elements,including public input, unified design, a need andcost analysis for infrastructure improvements, andidentification of funding sources and financingoptions. By carefully establishing a prioritizationschedule for improvements and implementation ofthe plan, the city was able to address the areas ofmost need first. Recommendations in the planincluded simple steps, such as developing way-finding signage to promote downtown attractionsand increase pedestrian activity, as well as complexfinancing options.

Upper Façade restoration inprogress on the EricksonBuilding in Downtown Stoughton(www.silberschmidtdental.com/office.htm)

Adoption

Process

The citycontracted with aprivate firm inFebruary 2000 toprepare theDowntown MasterPlan. VierbicherAssociates, Inc.began the processwith a series ofinitial meetingswith city officialsand staff, businessowners, propertyowners andconcerned citizens.During thesemeetings, theconsultant gained athorough understanding of each stakeholdergroup’s goals and objectives.

Later the firm conducted data-gatheringmeetings where infrastructure needs, conditionsand problems were identified and catalogued.Throughout the process, meetings and presen-tations allowed for discussion and input on allaspects of the plan.

Recommendations were made to the StoughtonCity Council, and the plan was approved inJune 2000.


Communities in the Kansas City area can considerthe Stoughton Downtown Master Plan as anexcellent example of a smaller city making aconcerted effort to build on the positive aspects ofits community. The city saw an opportunity tomake substantial improvements to its downtownand build an area that would better serve residentsand attract visitors.

29

By refocusing on design elements of commercialareas, first-tier suburbs can increase the viability ofbusinesses in their communities. The Stoughtonplan also serves as a good example of the need forcareful planning and cost analysis. Stoughton put atremendous amount of energy into prioritizingimprovements and analyzing funding options, animportant lesson for any community struggling toprovide necessary funding.

Challenges

Many first-tier suburbs in the Kansas City area maynot have the clearly defined downtown area thatStoughton enjoyed. This may make it moredifficult to implement the priority plan thatthey develop.

Resources

City of Stoughton Downtown Master Plan, prepared byVierbicher Associates, Inc., www.co.dane.wi.us/plandev/build/stoughtonmasterplan.pdf


Nationwide Policies

Downtown Master Plan, continued

30


Nationwide Policies

Downtown Design Guidelines: St. Cloud, MinnesotaSpring, 2003Community Description

St. Cloud, Minnesota, is a community of around59,000 people located about 70 miles northwest ofthe Minneapolis/St. Paul metropolitan area. Thecity’s boundaries extend into three counties, with11 cities and townships forming its borders.This growing area has a diverse landscape thatincludes urban areas, smaller outlying towns andthriving farmland.

Policy Issue

Creating an attractive downtown area is, again, animportant step to attract new residents and visitorsinto the area. With design guidelines, a city can beassured that development taking place will beconsistent with plans and policies designed tocreate a community identity.

Policy Description

As part of the city’s Comprehensive Plan, theDowntown Design Guidelines serve as a guide todevelopment and redevelopment in and around thedowntown area. The stated intent of the plan is togive character to the area through a series ofprinciples on site design, building placement,materials and other issues. The city understandsthat not all the guidelines will be used by everyproject, but believes that through combined effortsa sense of place will be created.

Though not intended as a replacement of buildingand zoning codes, the guidelines offer 12principles that affect both public and privatespaces. Information regarding mixed uses, buildingplacement close to the street, two-story buildings,architectural standards and focal points is included.With short descriptions and visual examples, theguidelines serve as a quick reference andcomplement the goals and objectives of the overallcomprehensive plan for the community.

Adoption Process

Adoption of the design guidelines was part of amuch larger process of creating and updating acomprehensive plan for the St. Cloud area. Thisprocess included developing a vision for thecommunity’s future, and the advisory committeecharged with creating the document worked withnumerous citizen groups and local officials todefine that vision.


With a quick reference such as St. CloudsDowntown Design Guidelines, first-tier suburbscan easily provide information to developers andresidents about the city’s desired direction. Theguidelines can act as an initial set of standards tohelp improve the commercial areas of the

The Guidelines include a series of “Do’sand Don’ts” for each principle, like thisexample for building placement.(http://ci.stcloud.mn.us/Web/departments/Planning/compplan)

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Nationwide Policies

community and create a sense of place. They canalso establish a focus on design and sense of placethat may not have been present before.

Challenges

The St. Cloud guidelines were part of a muchlarger process of community visioning andplanning. If communities are not able to make thesame investment into a comprehensive plan fortheir cities, then the guidelines may not have thenecessary “teeth” to force compliance. There canalso be substantial challenges if existing standardsand regulations conflict with guidelines.

Resources

City of St. Cloud Comprehensive Plan, http://ci.stcloud.mn.us/Web/departments/Planning/compplan/compplan.htm

Downtown Design Guidelines, continued

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Nationwide Policies

Housing Preservation Plan: Shaker Heights, OhioNovember, 2001Community Description

Shaker Heights, Ohio, a first-ring suburb, is acommunity of just over 29,000 residents locatedeight miles from downtown Cleveland. Cityleaders describe the city as a “tranquil, yetcosmopolitan and distinctive suburb.” In additionto a nationally acclaimed school system, ShakerHeights counts over 7,600 private homes andalmost 4,300 rental properties within itsboundaries. The city is also home to over1,000 businesses.

Policy Issue

The age of infrastructure, especially housing stock,is an important issue facing first suburbs. Withoutprivate reinvestment, the deterioration of housingwill cause lower property values and serve as abarrier to attracting new residents into the area.

Policy Description

Because of Shaker’s history as Ohio’s first plannedgarden city, community residents have long beenproud of the tree-lined streets and extraordinaryarchitecture in area neighborhoods. Like manyfirst-ring suburbs, Shaker is concerned withpreserving the quality of its housing stock andimproving property values. In order to achievethis, the city developed a “Housing PreservationPlan” that identified four main areas in whichinterventions by the city can help fulfill the overallgoal of strong property values and “desirable,diverse neighborhoods.” These included: codeenforcement, quality of housing stock, marketdemand and landscape setting. In the plan, the cityoutlined both short-term (1-2 years) and long-term(3-5 years) actions.

Some short-term actions include establishing the“Certified Shaker” program that highlightsexemplary rental housing in the city; developing acitywide photographic inventory of all properties;and amending zoning codes to establish aconsistent landscape framework throughout thecity. The city also established actions for the long

term. These included traffic calming in residentialneighborhoods, tax-abatement for senior-friendlyhousing and an Apartment Improvement Programin which the city would offer 30–50 percentmatching grants.

Tree-lined streets are considered an important aspect toShaker Heights neighborhoods. (www.shade-trees.tripod.com)

Fairhill Place is a professionally renovated Georgiancolonial building. It has won state-level awards forexcellence in renovation, as well as city recognition.(www.montlack.com/index.asp).

33

Adoption Process

The policy process seems to have benefited greatlyfrom the support of city staff. This comprehensivepreservation plan offers a proactive approach tocity’s management of its housing stock.


As a first-ring suburb, Shaker Heights risked fallingproperty values and a deteriorating housing stock.Many first suburbs in the Kansas City region canbenefit from adopting plans like Shaker’s in theirown communities. A housing preservation plan canallow the city to aggressively pursue programs andobjectives that will help stop the decline ofresidential neighborhoods by attacking theproblem in a number of different ways: citizen


Nationwide Policies

Housing Preservation Plan, continued

involvement, financial assistance, up-to-dateinformation and flexible zoning codes.

Challenges

In developing a comprehensive policy, there are anumber of challenges for a city. Time and fundingwill be the biggest barriers to overcome. This typeof plan requires a large investment of staff, timeand energy to be successful, but it can also providea city with a valuable tool and record of itshousing stock.

Resources

About Shaker, www.shaker-hts.oh.us/about/City of Shaker Heights Housing Preservation Plan, www.shaker-

hts.oh.us/dept/revite/

34

Strategic Investment Plan: Shaker Heights, OhioJuly, 2000Community Description

Shaker Heights, Ohio, a first-ring suburb, is acommunity of just over 29,000 residents locatedeight miles from downtown Cleveland. Cityleaders describe the city as a “tranquil, yetcosmopolitan and distinctive suburb.” In additionto a nationally acclaimed school system, ShakerHeights counts over 7,600 private homes andalmost 4,300 rental properties within istsboundaries. The city is also home to over1,000 businesses.

Policy Issue

Focused plans for public investment and guidelinesfor encouraging private investment can helpconserve financial resources and concentrate effortson those areas that will have the most impact.

Policy Description

The purpose of Shaker Heights’ StrategicInvestment Plan is to advise the city on how bestto leverage its limited assets to encourage

appropriate private investment. A private firmprepared the document for the city and conducteda number of conversations with members of thecommunity. These interviews revealed both theendearing characteristics of Shaker Heights andcurrent problems.

Through an extensive process of communityvisioning, the city and its contract firm, UrbanDesign Associates, identified specific geographicareas that were in need of substantial attention, aswell as “floating” problems for which prototypesolutions and design standards were needed.They defined the “best” and “worst” that Shaker hadto offer and developed six overall areas for the planto address: transportation, visual and physicalimage, commercial/retail, housing, educationand connections.

Principles and programs were established to givespecific direction to developers and city officialswho make decisions regarding development andredevelopment. The city looked to “undo thedamage” caused by previous strategies, especially inthe area of street design. City leaders also wantedto provide retail space to serve communityresidents and fill unmet needs in the city. Toachieve these and many other goals, the StrategicInvestment Plan offers a “shopping list of initiatives”that the city can use to choose from a number ofdifferent scenarios that will help attract investmentinto the area. The various scenarios areaccompanied by different levels or steps ofinvestment for projects.

Adoption Process

In 1998, the process of creating the StrategicImplementation Plan started with gainingconsensus on goals for the future through a seriesof discussions of the city’s strengths and weaknessesin general terms. There was no focus on locationsor planning concepts. Through a telephone surveyand public workshops, Urban Design Associateshelped to formulate consensus on the program and initiatives.

The Strategic Investment Plan includes design plans thatoutline levels of initiatives for different locations throughoutthe City. (City of Shaker Heights SIP)


Nationwide Policies

35


The Strategic Investment Plan, much like acomprehensive plan, provides the city with adocument that can help shape the future of ShakerHeights. However, it gives a more specific list ofoptions that the city can take advantage of toachieve its overall mission. First-tier suburbs wouldbenefit from having a list of projects they want toundertake, all of which are a part of a greatercommunity vision.

Challenges

Many of the challenges in developing a strategicinvestment plan revolve around the money, timeand energy that are necessary to produce asubstantial document such as the city of ShakerHeight’s plan.

Resources

About Shaker, www.shaker-hts.oh.us/about/City of Shaker Heights Strategic Investment Plan, www.shaker-

hts.oh.us/Media/PDFs/Uploader/8222002142113sip.pdf

City of Shaker Heights Housing Preservation Plan, www.shaker-hts.oh.us/dept/revite/

The Plan also includes detailed sketches that representthe vision of the community for the future. (City of ShakerHeights SIP)


Nationwide Policies

Strategic Investment Plan, continued

36

Using Development ToolsFirst suburbs have access to a wide range ofresidential and commercial development tools (seetables following). They also have the ability tocreate development tools and incentives. Thequestion is to how best to use these tools in orderto create the kind of development the communitydesires with the least amount of public expense.

The intent of development tools and incentives isto encourage developers to invest in projects thatthey would not normally invest in. Theirreluctance in investing in a particular project maybe because the costs of development are too highrelative to the anticipated income, the anticipatedincome is too low relative to the costs ofdevelopment, or there are too many uncertaintiesassociated with the project thus making costs andreturn on investment unsure. These high costs, lowreturns, or uncertainty are measured against otherprojects that they might invest their time andmoney in, such as in conventional suburbandevelopments. The intent of the tools andincentives is to level the playing field regardingthese concerns.

Projects might have relative high costs because ofunusual site conditions due to natural features suchas rock, historic legacy issues such as old tanks thatmust be removed or environmental remediation.Projects involving redevelopment may have higherthan normal site acquisition costs because ofacquisition of structures or relocation of families oradditional infrastructure costs. In some cases, a citymay want a certain kind of development, use ofcertain design standards, or certain amenitiesincluded with the project that might add to thecost of the project. In all of these instances, thecity must find a way to close the gap between“normal” development costs and the costsanticipated in redevelopment. The city needs tostructure its development tools to reduce the costsof the project to the developer, either by assumingsome of these additional costs, such as through theuse of tax increment financing, CommunityDevelopment Block Grant funds, or low interestloans, or offsetting these additional costs throughsuch tools as tax abatement.

The flip side of the high cost problem is low returnon investment due to low anticipated income. Thisis somewhat more difficult to quantify, but is just asmuch a problem for developers as high projectcosts. Lower than normal income may be due tolow appraisals for property due to their location ina blighted neighborhood. This is especially thecase early in a project. For example, City VisionMinistries in developing the Turtle Hillneighborhood of Kansas City, Kansas, found thatthe first new home that they constructed, for a costof $110,000, appraised for only $60,000.Commercial development can face the sameproblem with rents for commercial space in oldercommunities, even first class space, notcommanding the same level of rents that similarspace commands in more affluent communities.The city must use development tools andincentives to overcome this revenue shortfall.Tools can include down payment and/or mortgagesubsidies for residential homebuyers or taxabatement for commercial developers.

Uncertainties can be a major barrier todevelopment. All developers face some level ofuncertainty, especially as it relates to sitegeological features. However, redevelopmentprojects often involve additional cost uncertaintieswith regard to environmental issues, infrastructurecondition and access, and site acquisition costs.Possibly of greater import is the time uncertaintyin undertaking a redevelopment project.Redevelopment projects can take longer thanconventional projects because of land acquisitionissues, unexpected environmental issues, workingwith neighborhood groups, the difficulty in raisingfunds or developing markets, and the very processof implementing development tools andincentives. Cities can use development tools toreduce this uncertainty by paying for advanceresearch that would identify problems such as thoseassociated with infrastructure or environmentalproblems. The city can dedicate funds, such asCommunity Development Block Grant funds, tocovering unexpected issues that arise because of

37

Using Development Tools

Using Development Tools

38

the nature of the property. Finally, cities can put inplace processes that will assure an expediteddevelopment timetable and access to staff that canassist.

A city should carefully consider whichdevelopment tools and incentives it wants toemploy and what it hopes to accomplish withthose tools. Once local officials have chosen a setof tools to use, they should lay out the process forusing them and make sure that city staff arequalified to use them. A detailed description ofeach tool and the process to be used to implementthem should be prepared for use by developers andstaff.

Development tools and incentives in mostcircumstances are a contract between thedeveloper and the city. This contract shouldinclude expectations for both the city and thedeveloper. The city needs to think through theexpectations it wants to place on developers inexchange for using the development tools andincentives. These can be in terms of the quality orcontent of the development, it can be in the

generation of jobs or other benefits, or it can be indirect participation in the project and sharing inreturns, should the project be a success.

Following is a brief checklist that cities can use inthe formulation of their development tools:

Identify the issues that developers will face

Identify the most appropriate tools foraddressing those issues

Identify the goals that are to be achieved byusing those tools

Identify the circumstances under which thetools will be used

Identify the costs associated with using thetools

Put in place the necessary legal mechanismsand staff to implement the tools

Develop a written description of each tool andthe process for using each tool

Put in place a mechanism for evaluating the useof the development tools

Development Tools Housing Programs

Missouri Housing Programs

Residential Development Assistance Programs for Missouri

Brownfield Redevelopment Program

This program is aimed at providing incentives forthe commercial development of sites that havebeen abandoned for over three years, but may alsoinclude mixed-use projects. The property ownedmust be publicly held or the project endorsed bylocal government, and the project must be locatedin a blighted redevelopment area. A minimum of10 new jobs must be created. Tax credits, grantsand/or loans may be issued to applicants (please seeWeb site for complete details).

Program administration: State

Funding types: Grants, loans, taxcredits

Housing types: Mixed use

Development types: New and rehabilitation

Targeted users: Developers

www.ded.state.mo.us

Chapter 353 Tax Abatement

An incentive that can be used by cities toencourage the redevelopment of blighted areas byproviding real property tax abatement and use ofeminent domain. During the first 10 years, theproperty is subject only to property taxes assessedon the land, not on any improvements. During thenext 15 years the property may be assessed up to50 percent of its true value.

Program administration: Local government

Funding types: Tax abatement

Housing types: Market rate owner andrental; low income


Targeted users: Cities

www.ded.state.mo.us

50 Percent Community Bank Tax Credit

“Fundors” (contributors or investors) may obtainstate tax credits based on 50 percent of theirinvestments or contributions to a pre-approvedCDC or Community Bank. The CDC would thenmake equity investments or loans to a specificproject within the designated redevelopment area(see also the discussion on CDCs). Limits are creditof up to $750,000 on a $1.5 million investment.


Funding types: Tax credit

Housing types: Low-income(homeowner only)



www.ded.state.mo.us

39


Funding types: Low-interest loans

Housing types: Low-income(homeowner only)

Development types: New

Targeted users: Owners

Program administration: Federal, through stateagencies

Funding types: Grants

Housing types: Low income









Residential Development Assistance Programs for Missouri, cont’d.

Community Development Block Grant

(CDBG)

Annual grants used for the benefit of low- andmoderate-income persons and/or preventing oreliminating blight. Areas not designated as eitherqualifying or eligible can receive federal moniesthrough state administered CDBGs. Projects mayinclude rehabilitation of private buildings,assistance to non-profits for communitydevelopment, and reconstruction or constructionof streets, water and sewer facilities, neighborhoodcenters, etc.

www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

Community Development Corporation

(CDC)

Induced investment into CDCs or CommunityBanks, which then invest in new or growing realestate development, resulting in an elimination ofblight, expansion of the tax base, etc. The CDCmust prepare a revitalization plan to be approvedby the Missouri Department of Social Services.Maximum special opportunity grant of $100,000.

www.ded.state.mo.us

First Place Program

Offers first-time homebuyers affordable mortgagefinancing. Residents must be within the limits ofhousehold income established by the state ofMissouri and must be first-time homebuyers.Eligible locations are within federallytargeted areas.

www.mhdc.com/homebuyer_programs/MRB_guidelines.htm


40

Program administration: Federal and state


Housing types: Market rate owner(federal only), marketrate rental and lowincome

Development types: Rehabilitation

Targeted users: Owners/developers



Housing types: Low-income rental




Funding types: Grants, low-interestloans



Targeted users: Nonprofits/developers




Historic Tax Credit Program

State provides 25 percent of eligible costs andexpenses of the rehabilitation of an approvedhistoric structure. The federal government alsooffers a 20 percent tax credit on commercial orresidential projects. The rehabilitation must beconsidered substantial and eligible activities mayinclude work on the building itself, architecturalfees, legal expenses and development fees. It maynot include any work to expand the building orgrounds. Note that federal credits cannot be sold,but credits received from the state can be.

www.ded.state.mo.us

Low-Income Housing Tax Credit Program

A federal tax credit to investors in affordablehousing that can be used each year for 10 years.The minimum number of qualifying units is (a) 40percent of the total number of units affordable topersons at 60 percent of the median income; or (b)20 percent affordable to persons at 50 percent ofthe median income. The state also has a credit, andmay allocate an amount equal to 100 percent ofthe federal credit. Developers may sell tax creditsto raise the equity to construct or acquire andrehabilitate rental housing.

www.mhdc.com/rental_production/low_inc_tax_pgrm.htm

Missouri Housing Trust Fund

Funding available for a variety of housing needssuch as acquisition and/or rehabilitation or newconstruction of rental housing (and relatedservices) for very low-income families, rentalassistance, emergency housing aid, and homerepair. Applicants must demonstrate prior,successful housing experiences and have thecapacity to successfully complete and operate thehousing and/or service proposed.

www.mhdc.com/rental_production/trust_fund/MHTF-info.htm

41



Housing types: Market rate rental,market rate owner andlow income


Targeted users: Non-profits



Housing types: Market rate rental



Program administration: Local governments







Neighborhood Assistance Program (NAP)

A qualifying nonprofit organization can be grantedassistance to administer a community orneighborhood project if the community orneighborhood itself does not have the ability orresources. Up to a 50 percent tax credit forcommunity services, physical revitalization,economic development can be granted to donors.

www.ded.state.mo.us

Neighborhood Preservation Act (NPA)

Tax credits for residential rehabilitation andconstruction costs in distressed communities orspecific census blocks. 15 percent tax credit for anew residence, limited to $40,000 or $25,000/residence/10-year period. There are two levels ofneighborhoods eligible to receive credits.“Eligible” neighborhoods are census block groupswith median income between 70-90 percent of themetropolitan area median. “Qualifying” areas arethose with median household incomes below 70percent of the metropolitan area median.

www.ded.state.mo.us

Tax Increment Financing (TIF)

Redirects an approved portion of certain localtaxes caused by a redevelopment project or area toreduce project costs. The TIF Commissionnegotiates the amount and the length of theincrement based on the least amount that wouldcause the project to occur. Eligible only in locallydesignated areas. May be up to 100 percent of theincreased amount of real property taxes.

www.ded.state.mo.us


42

Program administration: Federal, through stateagencies; direct grantsto larger cities andcounties






Funding types: Loan




Program administration: Federal

Funding types: Loans, grants

Housing types: Market rate andlow-income owners

Targeted users: Homeowners


Kansas Housing Programs

Residential Development Assistance Programs for Kansas


(CDBG)

Annual grants used for the benefit of low- andmoderate-income persons and/or in preventing oreliminating blight. Areas not designated as eitherqualifying or eligible can receive federal moniesthrough state-administered CDBGs. Projects mayinclude rehabilitation of private buildings,assistance to non-profits for communitydevelopment, and reconstruction or constructionof streets, water and sewer facilities, neighborhoodcenters, etc.

www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfmhttp://kdoch.state.ks.us

Community Housing Development

Organization

Helps non-profit developers increase the supply ofaffordable housing. Non-profit organizations mustmeet certain criteria to be considered a CHDO, asdefined by the HOME program regulations.CHDOs may apply for a loan of up to $300,000 tohelp finance a development, allowing rents to belowered. In developments of five or more units, 20percent of the units must be rented to householdsat or below 50 percent of the area median income.

www.kshousingcorp.org/programs/chdo.shtml

Emergency Repair Program

Assists homeowners with emergency repairs ofexisting owner-occupied properties to enableresidents to maintain a safe environment in theirhome. Examples of emergencies that may berepaired are an inoperable or faulty furnace, leakingroof, unsafe electrical wiring and plumbing,hazardous structural conditions, etc. Homeowners'income must not exceed 60 percent of the countymedian income. Initially the funds are in the formof a loan, but if the homeowner occupies the homeas the primary residence for a period of three yearsfrom the date of funding, no repayment is required.

www.kshousingcorp.org/programs/erp.shtml

43


Funding types: Loans

Housing types: Market rate owner

Targeted users: Individuals



Housing types: Market rate rental,market rate owner andlow-income owners


Targeted users: Owners/developers

Program administration: Cities/countiesadminister state funds

Funding types: Loans, grants

Housing types: Market rate and low-income owners


Targeted users: Homeowners, localgovernments,non-profits


Residential Development Assistance Programs for Kansas, cont’d.

First-Time Homebuyers Program (FTHB)

Provides down-payment assistance to qualifiedbuyers for the purchase of a first home. Theprogram is for those who have incomes at or below80 percent of the median income for their areas.The loan may be from 15–30 percent of thepurchase price of the home, awarded on a slidingscale, depending on the applicant’s income level.Buyers are expected to make a minimum invest-ment of $500 or 2 percent of the sale price,whichever is greater.

www.kshousingcorp.org/programs/fthb.shtml

Historic Tax Incentives Program

The federal government offers a 20 percent taxcredit on commercial or residential projects forcertified historic structures. The rehabilitation mustbe considered substantial and eligible activitiesmay include work on the building itself,architectural fees, legal expenses and developmentfees. It may not include any work to expand thebuilding or grounds. Note that federal creditscannot be sold, but credits received from thestate can be.

www2.cr.nps.gov/tps/tax/brochure2.htm#Rehabilitation%20Tax%20Credit

Homeowner Rehabilitation Program

Funded through the federal HOME InvestmentPartnerships Program, this program assistscommunities with repairing and rehabilitatingowner-occupied housing. Cities and counties mayapply for funds of up to $300,000 foradministering the program in their communities.Grants will pass through the cities and counties tohomeowners on a reimbursement basis, andassistance is provided in the form of a loan.Homeowners may not earn more than 80 percentof the median income for the area.

www.kshousingcorp.org/programs/hr.shtml


44





Targeted users: Non-profits,developers


Funding types: Loan






Housing types: Market rate and low-income owners






Housing Tax Credit

Designed to secure private equity capital for thedevelopment of affordable rental housing, theHousing Tax Credit (HTC) can provide as much as55-60 percent of the total development cost,which reduces the amount of debt financing inaffordable rental-housing developments. It is anannual tax credit allocation for 10 years.

www.kshousingcorp.org/programs/htc.shtml

HUD’s 203 (k) Program

HUD’s primary single-family mortgage insuranceprogram assists homebuyers who want to purchasea home in need of repair or modernization withinterim financing (acquisition and constructionloans) at lower rates than traditional loans. Themortgage amount is based on the projected valueof the property with the work completed, takinginto account the cost of the work. The propertymust be a one- to four-family dwelling that hasbeen completed for at least one year. Please seeHUD’s Web site for the entire list of requirements.

www.hud.gov/offices/hsg/sfh/203k/203kabou.cfm

Kansas Accessibility Modification Program

The program has two basic purposes: (1) toprovide accessibility modifications to residentsallowing individuals to better fulfill their abilitiesto use their homes, and (2) to gather informationfor future planning about the need in the state forsuch modifications. Individuals with disabilities canrequest funds to assist with modifications to theirprimary residence. Total household income mustnot exceed 80 percent of the area median income.

www.kshousingcorp.org/programs/kamp.shtml

45












Low-Income Housing Tax Credit Program

A federal tax credit to investors in affordablehousing that can be used each year for 10 years.The minimum number of qualifying units is (a) 40percent of the total number of units affordable topersons at 60 percent of the median income or (b)20 percent affordable to persons at 50 percent ofthe median income. Developers may sell tax creditsto raise the equity to construct or acquire andrehabilitate rental housing.

http://www.mhdc.com/rental_production/low_inc_tax_pgrm.htm

Weatherization Assistance Program

Funded through the U.S. Department of Energyand the Low-Income Energy Assistance Program,the WAP provides housing improvements thatincrease energy efficiency in income-eligiblesingle- or multi-family dwellings, includingmanufactured homes. Eligible households are thosewith income of up to 150 percent of the federalpoverty level or 60 percent of the state medianincome, whichever is higher. Target groups areelderly, persons with disabilities, and families withchildren.

http://www.kshousingcorp.org/programs/wap.shtml


46

Development Tools Economic Development

Missouri Economic Deveopment Programs

Economic Development Assistance Programs for Missouri

Action Fund Loan Program

Provides loans to certain types of for-profitcompanies that need funds for startup or expansionand have exhausted other sources. The DED willprovide funds in the form of a loan to an approvedcompany. The loan may be in a subordinatecollateral position to the lead/primary lender at thesole discretion of DED. This determination isbased on cash flow, collateral, credit history,character and other credit /collateralconsiderations of the business and owner. For-profitmanufacturing, processing and assembly companiesthat will have wages above the county average andprovide medical benefits are prioritized. Othertypes of companies will be considered if they donot negatively impact other area businesses. Mustbe in a non-entitlement area.



Project types: Industrial

Eligible organizations: Business owners

Eligible uses: The purchase of new machinery andequipment or working capital is eligible.Refinancing, pay out of stockholders, buyouts orlines of credit are not eligible.

www.ded.state.mo.us

Brownfield Redevelopment Program

This program is aimed at providing incentives forthe commercial development of sites that havebeen abandoned for over three years, but may alsoinclude mixed-use projects. The project must resultin the creation of at least 10 new jobs or theretention of 25 new jobs. New jobs are full time(35+ hours/week) for persons who were notemployed by the business or related taxpayer forthe prior year. Tax credits, grants or loans may beissued to applicants (please see Web site forcomplete details).

Eligible uses: the property must be owned by apublic entity. If owned by a private entity, the cityor county project must endorse the project. Theproperty must be located in a blightedredevelopment area.

www.ded.state.mo.us


Funding types: Grants, loans, taxcredits

Project types: Industrial, commercialand mixed use

Eligible organizations: Developers

47



Economic Development Assistance Programs for Missouri, cont’d.

Business Facility Tax Credit Program

State income tax credits are provided to businessesbased on the number of new jobs and amount ofnew investment created at each qualifying facility.The credits are provided each tax year for up to 10years after the project commences operations.Eligible projects include manufacturing,warehousing, wholesale distribution, mining,insurance, research and development, recyclingoperations, computer-related services and certainoffice activities, which have created at least twonew jobs (25 for office) and $100,000 in newinvestment ($1,000,000 for replacement facilities).Facility eligibility is determined by its primaryStandard Industrial Classification (SIC) code asdesignated by the Division of WorkforceDevelopment. The formula to earn the tax creditsis based on:

• $75 (or $125 in a distressed community) for anew Missouri company for each new job, and for



Project types: Industrial

Eligible organizations: Certain businesses

each $100,000 of new capital investmentcreated at the project; OR

• $100 (or $150 in a distressed community) for anexisting Missouri company for each new job, andfor each $100,000 of the new capital investmentcreated at the project.

The business may reduce its total Missouri incometax by up to 100 percent, depending on whether itoperates other Missouri facilities. The more jobsand investment created, the more Missouri incometax the earned credit can offset.

Chapter 353 Tax Abatement

An incentive that can be used by cities toencourage the redevelopment of blighted areas byproviding real property tax abatement and use ofeminent domain. During the first 10 years, theproperty is subject only to property taxes assessedon the land, not on any improvements. During thenext 15 years it can be assessed up to 50 percent ofits true value.

Eligible uses: redevelopment projects may includethe clearance, replanning, reconstruction orrehabilitation of any blighted area. Provision forsuch commercial, industrial, residential, or publicstructures and spaces as may be appropriate.

www.ded.state.mo.us

Program administration: Local government



Eligible organizations: Cities

48




50 Percent Community Bank Tax Credit

“Fundors” (contributors or investors) may obtainstate tax credits based on 50 percent of theirinvestments or contributions to a pre-approvedCDC or Community Bank. The CDC would thenmake equity investments or loans to a specificproject within the designated redevelopment area(see also the discussion on CDCs). Limits are creditof up to $750,000 on a $1.5 million investment.

Eligible uses: funds to the CDC or CommunityBank may be used for acquisition of real estate orbuildings, new capital improvements and workingcapital. Funds may also be used for real estate




Eligible organizations: Developers

Community Colleges “New Jobs Training

Program”

Provides assistance to companies creating asubstantial number of new jobs in Missouri.Whether the company is expanding its workforceor locating a new facility in the state, this programis designed to assist with the costs of training theemployees in the newly created jobs. Localcommunity colleges initially finance trainingthrough the sale of certificates. The certificates arerepaid by using tax credits from the employer’sregular withholding, based on a percentage of thegross wages paid to employees in the new jobs.The tax withholding is equal to 2.5 percent ofgross wages for the first 100 new jobs and 1.5percent for remaining new jobs. To repay thetraining and certificate costs, the tax withholdingfor projects in excess of $500,000 may be claimedup to eight years, and those projects not in excessof $500,000 may be claimed up to 10 years.Businesses with a sound credit ratings currentlylocated in or locating to Missouri, engaged in


Funding types: Tax Credits

Eligible organizations: Certain businesses

interstate or intrastate commerce for the purpose ofmanufacturing, processing or assembling productsare eligible. Companies that conduct research anddevelopment or provide services in interstatecommerce are also eligible. Retail businesses donot qualify for the program.

Eligible uses: funding can be used towardreimbursement for the training and costs associatedwith the issuance of certificates. Training activitiessuch as skill assessment, orientation, pre-employment training, occupational skill training,and on-the-job training can be included.Withholding tax credits claimed in excess of theamount of the project are returned to theDepartment of Revenue.

development or redevelopment projects, includingcertain types of housing infill and newconstruction for owner-occupied housing.

www.ded.state.mo.us

49





(CDBG)

Annual grants used for the benefit of low- andmoderate-income persons and/or in preventing oreliminating blight. Areas not designated as eitherqualifying or eligible can receive federal moniesthrough state-administered CDBGs. Projects mayinclude rehabilitation of private buildings,assistance to non-profits for communitydevelopment, and reconstruction or constructionof streets, water and sewer facilities, neighborhoodcenters, etc.

Eligible uses: funds are available to a wide range ofprojects from street repairs to industrial loans andjob training.


Funding types: Grants, loans

Project types: Industrial andmixed use


Community Development Corporation

(CDC)

Induced investment into CDCs or CommunityBanks, which then invest in new or growing realestate developments, resulting in an elimination ofblight, expansion of the tax base, etc. The CDCmust prepare a revitalization plan to be approvedby the Missouri Department of Social Services.No more than $750,000 can be invested or loanedby the CDC for any one business. A minimum ofone new job must be created/retained as a result ofthe investment of every $4,000 to $10,000(depending on type of company) of tax creditsprovided to investors of the CDC.

Eligible uses: the use of contributed or investedfunds provided to a Community Bank or CDC thatwere derived from the tax credits is limited to loansor equity investments to a business for acquisition





of land or an existing building; new capitalimprovements (real estate, machinery andequipment, furniture and fixtures); and certainworking expenses, including new inventory,payroll, advertising and marketing andprofessional services.

www.ded.state.mo.us

www.hud.gov/offices/cpd/communitydevelopment/programs/index.cfm

50




Historic Tax Credit Program

The state provides 25 percent of eligible costs andexpenses of the rehabilitation of an approvedhistoric structure. The federal government alsooffers a 20 percent tax credit on commercial orresidential projects. An eligible property must be(a) listed individually in the National Register ofHistoric Places, (b) certified by the MissouriDepartment of Natural Resources as contributingto the historical significance of a certified historicdistrict listed on the National Register, or (c) partof a local historic district that has been certified bythe US Department of the Interior. Rehabilitationcosts must exceed 50 percent of the total basis ofthe property (acquisition cost).

Eligible uses: the rehabilitation must be consideredsubstantial and eligible activities may include workon the building itself, architectural fees, legal




Eligible organizations: Landowners,developers

Missouri Downtown Economic Stimulus Act

(MODESA)

This program is meant to help facilitate theredevelopment of downtown areas and the creationof jobs by providing essential public infrastructure.Households in municipalities must have an annualmedian income of $62,000 or less, and the eligibleareas are CBDs that are either designated as“blighted” or “conservation” areas. Portions of thenew state and local taxes created by a project canbe diverted to fund eligible public infrastructureand related costs for a period of up to 25 years.Local funds must match.

Eligible uses: funds can be either for projects for“community enhancement” or “job creation.” Theproject costs and/or new job creation minimumsare based on the population of the municipality.

www.ded.state.mo.us

expenses and development fees. It may not includeany work to expand the building or grounds. Notethat federal credits cannot be sold, but creditsreceived from the state can be.

www.ded.state.mo.us


Funding types: Tax diversion


Eligible organizations: Local governments

51




Missouri FIRST Linked Deposit

This program aims to facilitate a lower interest rateto approved businesses. Eligible businesses includenew, existing or expanding firms with at least 10employees that are able to create one new job foreach $25,000 borrowed within 12 months. Addedemphasis is placed on higher-quality jobs, jobscreated in targeted industries and economicallydepressed areas, and spin-off jobs. Loan approval ismade by the financial institution subject to normalcredit policy.

Eligible uses: there are few restrictions on the useof funds. Loan proceeds (related to the deposit)



Project types: Industrial andcommercial


Neigborhood Assistance Program (NAP)

A qualifying non-profit organization can begranted assistance to administer a community orneighborhood project if the community orneighborhood itself does not have the ability orresources. Up to a 50 percent tax credit forcommunity services, physical revitalization oreconomic development can be granted to donors.

Eligible uses: projects in the areas of communityservice, education, crime prevention, job trainingand physical revitalization.



Eligible organizations: Non-profits

may be for new capital expenditures or to assistwith working capital. The program may also beused with federal or state loan guarantee programs.

www.treasurer.missouri.gov/link/deposit.htm

www.ded.state.mo.us

Neigborhood Preservation Act (NPA)

Tax credits for residential rehabilitation andconstruction costs in distressed communities orspecific census blocks. 15 percent tax credit for anew residence, limited to $40,000 or $25,000/residence/10-year period. There are two levels ofneighborhoods eligible to receive credits.“Eligible” neighborhoods are census block groupswith median income between 70–90 percent ofthe metropolitan area median. “Qualifying” areasare those with median household incomes below70 percent of the metropolitan area median.

Eligible expenditures can include propertyacquisition, surveys, site preparation, architectural



Project types: Mixed use

Eligible organizations: Owners

and engineering services, utility extensions andmany others. Non-eligible projects are thosecosts not directly attached to the building, suchas landscaping.

www.ded.state.mo.us

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Rebuilding Communities Tax Credit

Program

Aimed at stimulating business activity in“Rebuilding areas.” Check with MissouriDepartment of Economic Development foreligibility. Through this program, there arethree options:

(1) New or relocating eligible businesses maychoose one of the 40 percent Tax Credits, plusobtain the 1.5 percent Employee Tax Credit.Options are: 40 percent Income Credit — taxcredit to the taxpayer for three years based on40 percent of their income taxes due; 40percent Specialized Equipment Credit —Income tax credit based on the amount of fundsexpended on approved equipment; 1.5 percentIndividual Credit— qualified employees mayreceive a tax credit against state individualincome tax, equal to 1.5 percent of their grosssalary paid at such a facility.

(2) Existing businesses already located in adistressed area are eligible for a 25 percent taxcredit if they expend funds for specializedequipment, exceeding their average





Redevelopment Plan Resources

The applicability of many state, federal, and localresources depends on many factors that are bestrelayed in an overall redevelopment plan. Thisplan should address the issues of an entire area,helping to reduce spot development. The MissouriDepartment of Economic Development providesadvice to community groups and developers oncreating and financing such a plan.

Eligible uses: groups wanting to create acomprehensive redevelopment plan and search forfinancial assistance programs, qualified planningand law firms and similar projects.

www.ded.state.mo.us

expenditure of the prior two years for suchequipment.

(3) “Enhanced” existing businesses that doubletheir number of employees can apply for the40 percent tax credits and the 1.5 percentindividual credit.

Eligible uses: business must be manufacturing,biomedical, medical devices, etc (see Web site forcomplete list). The business must also have 75percent of employees at the facility in thedistressed community, prior to the issuance of taxcredits and have fewer than 100 employees totalfor all facilities at the time a pre-application iscompleted.

www.ded.state.mo.us


Funding types: Technical assistance

Eligible organizations: Landowners,developers, cities

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Small Business Incubator Tax Credit

Program

This program is designed to generate private fundsto establish a “protective business environment”(incubator) in which a number of small businessescan collectively operate to foster growth anddevelopment during their start-up periods. Anytaxpayer who makes a cash contribution to anapproved incubator sponsor or the fund itself isentitled to claim a tax credit equal to 50 percent ofthe contribution. Minimum tax credit is $1,500 percontributor; maximum tax credit is $50,000 percontribution if made to a single incubator and$100,000 if made to multiple incubators. There isno maximum if contribution is made directly to theIncubator Fund. Loan must be made in cooperationwith a city or county sponsor in a “non-entitlement” area where the project will be located.(Kansas City, Independence, and Lee’s Summit arenot eligible.)


Funding types: Grants, loans and loanguarantees


Eligible organizations: Taxpayers


Redirects an approved portion of certain localtaxes caused by a redevelopment project or area tocover project costs. The TIF Commissionnegotiates the amount and the length of theincrement based on the least amount that wouldcause the project to occur. Eligible only in locallydesignated areas. May be up to 100 percent of theincreased amount of real property taxes.

Redevelopment project costs include the costs ofstudies, surveys, plans and specifications, landacquisition, land preparation, professional servicecosts and fees, and construction costs of bothpublic and private improvements. Most TIFprojects involve the development of publicinfrastructure to support a project; however,redevelopment of buildings is also typical.

www.ded.state.mo.us





Eligible uses: contributions are used to establishand maintain incubators for small businesses. Fundsmust be expended to purchase or lease land,buildings, machinery, equipment, furniture andfixtures or to construct new or rehabilitate existingbuildings.

www.ded.state.mo.us

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Kansas Economic Deveopment Programs

Economic Development Assistance Programs for Kansas


Funding types: Grants, loans


Comprehensive Development Program

This is a community planning process designed tohelp a community create jobs, foster a more stableand diversified local economy, and improve livingconditions. The funds help communities do anassessment of the overall needs and opportunitiesthey have to offer. The plan establishes prioritiesfor action.

Eligible uses: planning processes that includesignificant citizen participation

http://kdoch.state.ks.us/


Funding types: Grants, services






Community Capacity Building Program

This program encourages collaborative communitydevelopment planning in the state. The commu-nity must form an active partnership among keycommunity-based organizations for the purpose ofdeveloping a shared vision for the future and a planof action to achieve that vision. A qualifiedprofessional planner must facilitate the process.

Eligible uses: the program for metropolitancommunities targets neighborhoods, growthmanagement in rapidly growing cities and countiesunder 50,000 in population, and downtowns.

Grants are subject to extensive review andrequire matching local funds

http://kdoch.state.ks.us


(CDBG)

Annual grants used for the benefit of low- andmoderate-income persons and/or preventing oreliminating blight. Areas not designated as eitherqualifying or eligible can receive federal moniesthrough state-administered CDBGs. Projects mayinclude rehabilitation of private buildings,assistance to non-profits for communitydevelopment, and reconstruction or constructionof streets, water and sewer facilities, neighborhoodcenters, etc.

Eligible uses: funds are available for a wide range ofprojects, from street repairs to industrial loans andjob training.

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Economic Development Assistance Programs for Kansas, cont’d.


Funding types: Loans, services







Funding types: Grants, tax credits andservices


Eligible organizations: Specific businesses

Certified Development Company (CDC)

A CDC is authorized by the Small BusinessAdministration (SBA) to market and service SBAloan guarantees to assist small businesses withfinancing for expansion and growth. A CDC assistsbusinesses by developing loan packages that offer anumber of financing avenues, providing resourcesfor preparing a business plan, assistance withstrategic planning and many other services.

Eligible uses: many different uses can be funded byloans obtained through a CDC. The group alsooffers numerous services for a variety of businessdevelopment needs.


Downtown Revitalization

The purpose of the program is to makeimprovements in a downtown designated area.It is modeled after the National Main StreetProgram, and requires an organized, long-termapproach to revitalize the original business districtof a community.

Eligible uses: a designated downtown manager whodoes not have a conflicting role with the cityoversees funds granted to cities. A professional

architect must develop design guidelines tobe adopted.


High Performance Incentive Program

(HPIP)

This program offers businesses five potentialbenefits: a 10 percent income tax credit foreligible capital investment that exceeds $50,000 ata company’s qualified business facility; a sales taxexemption to use in conjunction with thecompany’s eligible capital investment; a trainingtax credit of up to $50,000; priority considerationfor other assistance and programs; and grantfunding for half of consulting costs, up to$12,500. Qualified recipients must meet a listof requirements.

Eligible uses: HPIP funds are used as an incentiveprogram, not a retroactive entitlement.

Qualification is based on accomplished satisfactionof HPIP criteria, rather than a promise of futureperformance. Project descriptions must besubmitted for approval prior to commencement.


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Eligible organizations: Businesses


Funding types: Technical assistance

Eligible organizations: Valid Kansascommunityorganizations



Project types: Industrial andCommercial

Eligible organizations: Cities, businesses

IMPACT Program

The Investments in Major Projects andComprehensive Training (IMPACT) programprovides employers seeking to relocate or expandtheir business operations within Kansas withfinancial assistance to train employees hired to fillthe jobs created by the relocation or expansion.Eligible industries include basic enterprisescreating a large number of new jobs and payinghigher-than-average wages. These include thosebusinesses involved in manufacturing, multi-statedistribution, national service, agriculture, mining,research and development, interstatetransportation and tourism activities that create atleast 100 new jobs.

Eligible uses: funding can be used for on-the-jobtraining, classroom training, curriculumdevelopment, training related travel, supplies andtraining equipment, equipment relocation,building and equipment purchases and laborrecruitment.


Kansas Business First Program

This program is a business retention and expansionvisitation program. Local volunteers visit businesseswith a questionnaire or survey to gatherinformation about the firm’s development plans,economic concerns and opinions about thecommunity as a place to do business.

The program helps local community organizationsto form task forces to manage the program and usethe resulting information.

Eligible uses: administration of the visitationprogram and the formation of an action plan.


Kansas Economic Opportunity Initiatives

Fund (KEOIF)

KEOIF applications must be made by thesupporting city or county on behalf of a business.Eligible projects include those which generate newjobs and capital investment through businessrecruitment; generate new jobs and capitalinvestment through the major expansion of anexisting business; prevent the loss of jobs broughtabout by potential closure or out-of-staterelocation of an existing business; mitigate theeffects of the closure of major state or federalfacilities; or require matching funds forsignificant grants.

Eligible uses: Site and facility construction,improvements, equipment purchases and otherproject-related costs associated with theestablishment or expansion of a Kansas facility.


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Eligible organizations: Cities, businesses


Funding types: Grants, loans,technical assistance


Kansas Existing Industries Expansion

Program (KEIEP)

KEIEP is designed to meet the expansion-relatedneeds of existing Kansas businesses. Like theKEOIF program, KEIEP is performance-based, witha focus on the expansion/retention of jobs.Companies wishing to access funds are required tocommit to specific employment and payrollperformance levels as a prerequisite to funding.

Eligible projects include those which generate newjobs and capital investment through the expansionor renovation of an existing business or prevent theloss of jobs brought about by potential closure orout-of-state relocation of an existing business.


Kansas Main Street Program

The program provides funds to help communitiesdeal with the complex issues of revitalizing centralbusiness districts, capitalizing on their downtown’shistory, and identifying the resources of thecommunity itself. The program focuses on cities ofunder 50,000 in population. After a competitiveprocess to become designated a Kansas MainStreet City, the community must establish a boardof directors and develop a local program torevitalize the historic commercial area.

Eligible uses: Plans must address the “Four Points”of the program: organization (overall mission,consensus and cooperation), promotion ormarketing, design (street lighting, landscaping,signage, etc.), and economic restructuring(diversifying the economic base).


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Redirects an approved portion of certain localtaxes caused by a redevelopment project or area tocover project costs. The TIF Commissionnegotiates the amount and the length of theincrement, based on the least amount that wouldcause the project to occur. Eligible only in locallydesignated areas. May be up to 100 percent of theincreased amount of real property taxes.

Eligible uses: Redevelopment project costs includethe costs of studies, surveys, plans and specifi-cations, land acquisition, land preparation,professional service costs and fees and constructioncosts of both public and private improvements.Most TIF projects involve the development ofpublic infrastructure to support a project; however,redevelopment of buildings is also typical.



Eligible organizations: Community colleges,technical schools andcolleges

Training Equipment Grant Program

This is a funding mechanism that providescommunity colleges, area technical schools andarea technical colleges an opportunity to purchaseinstructional equipment to train or retrain theworkforce. The awards are granted based on theneed for equipment and the potential forstimulating economic growth and enhancingemployment opportunities.

Eligible uses: Projects to purchase equipment usedin a Kansas basic industry — manufacturing,interstate distribution, regional or national service,agriculture, mining, research and development orinterstate transportation — are given priority.


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Conclusion

First suburbs face a number of issues that have the potential to adversely affect their cities’ future.However, first suburbs are not alone and they are not helpless. This handbook has attempted todemonstrate some of the many ways that first suburbs are addressing these issues and some of the toolsthat are available. While the state, federal government and private developers are important elements in asuccessful first suburb strategy, it is clear that citieshave the ability to take the initiative and develop astrategy that can move their communities into aprosperous and resident-friendly future.

Local officials from first suburbs in the Kansas Citymetro area have discussed possible solutions to theircommon challenges over the past two years. Many ofthe solutions profiled in this handbook have comefrom those discussions and from the individualmembers of the First Suburb Coalition. The coalitionand MARC will use these discussions and thehandbook as a jumping-off point for the first suburbagenda. The agenda will be oriented to helping localgovernments implement strategies that will begin toaddress the first suburb issues facing their communities.

The First Suburbs Coalition will focus on informationand dialogue on:

• Local housing plans and policies, including plan contents, the process used to develop theinformation, expected benefits, and how such a plan is used to address housing and neighborhoodreinvestment and preservation

• How to develop, implement and use the results from housing and property surveys

• The issues involved in land assembly to allow cities to more proactively encourage reinvestment

• Steps to form and how to work with a community development corporation

• The pros and cons of a city acting as developer and how to go about it

• How to move forward on a First Suburbs Coalition legislative agenda.

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Appendix A

Northgate Village Redevelopment — The TIF Process

Project Description

In 1996, North Kansas City updated itscommunity Master Plan. In it, Northgate Villagewas identified as an area needing improvement.The Master Plan also discussed the need for thecity to achieve a better balance between rental andowner-occupied housing. As a result, theredevelopment project was born. In 1999, the citydrafted an RFP and proactively solicited proposalsfrom the Kansas City area developmentcommunity. The city’s Tax Increment Finance (TIF)Commission received five proposals. The cityassigned a professional staff review committee toreview the proposals and report back withrecommendations. At the end of the process, theTIF Commission and city council agreed to enterinto negotiations with the developer partnership ofHunt-Midwest and the Rainen Companies.

In January 2000, after approximately seven monthsof negotiations with the developers, the citycouncil approved both the TIF Plan anddevelopment agreement.

That spring, the city began the process ofacquiring the land. After it was determined that thecity and the owner of the property would beunable to come to agreement for the city’spurchase of the property, condemnationproceedings were initiated under the authority ofthe TIF statute. The condemnation process tookapproximately 18 months.

In 2002, relocation and demolition wereaccomplished for Phase 1 (two-thirds of projectarea). Much of 2003 was spent on infrastructureconstruction, zoning the property to a PlannedUnit Development. Platting approvals werecompleted between February and August 2003. Asof early 2004, the early stages of construction areunderway in the single-family area and the seniorapartments area.

Public Finances

The city currently estimates costs of $27 millionby the time the project is completed. Based onestimates made in 1999, the city anticipatedincome from TIF proceeds, land sales and rentsfrom remaining apartments to be $17.7 millionover the 28-year period of the TIF plan. The cityconsiders the $10 million difference an investmentin the community, which they might have had tospend anyway, over the same 28-year time period,for infrastructure replacement, etc.

Significant Elements of the Development

Agreement/TIF Plan

• The city took on up-front costs but receivesthe TIF revenue in return — contrary to mostTIF plans.

• The senior apartments are a 60-percent-affordable/40 percent-market-rate split. Theaffordable-rate units are based on the developer’saward of affordable housing tax credits.

• The project was divided into two phases so someexisting apartments could remain for those whowanted a new unit in the redevelopment.

• Property Management — In order to execute therelocation program and provide for interimhousing for those waiting for new units, the cityhad to fulfill the role of property owner.

• Relocation Program — At the time the city tookpossession of the property, existing residentsoccupied the apartments. A program ofrelocation had to be undertaken to providethose existing residents with other housing.

• Prohibited Commercial Uses — Given their level ofinvestment in the project, the city was able tonegotiate a list of prohibited commercial useswithin the commercial component of theproject.

• Architectural Design Requirements — Again, based onthe city’s level of investment, architecturaldesign guidelines were made a part of thedevelopment agreement.

Major Obstacles

• Condemnation Process — Condemnation was by farthe biggest obstacle to the project. There werea number of legal procedures that had to bedealt with in order to prevail.

• Tax-Credit Financing for the Senior Apartments — It wascritical to the city that the Senior Apartmentsprovide both affordable and market-ratealternatives. Agreement was eventually reachedthat there would be 60 percent affordable and40 percent market-rate apartments. Thedeveloper made it very clear that for a projectsuch as this to be funded, an award of 9 percentaffordable housing tax credits was essential — anextremely competitive process. The city had toplay an active role in promoting thedevelopment to MHDC.

Appendix A

Northgate Village Redevelopment — The TIF Process, continued

• Project Complexity — The city took an aggressivestep to improve the community in taking on thisproject. To undertake it, the city had toestablish a TIF Commission, go through tworounds of proposals, work through an extendedcondemnation process, work with twodevelopers with consistent and inconsistentgoals, manage the existing property, execute aprogram of relocation for over 400 residents,install new infrastructure, approve four differentdevelopment components, and bear the brunt ofcriticism from some members of the public andthe media in the early years. Finally, the city hashad to commit to more funding than wasoriginally planned. Fortitude and commitmentare essential to a project of this size andcomplexity.

Resources

Mike Smith, Assistant to the City Administrator,North Kansas City

Mid-America Regional Council600 Broadway, Suite 200

Kansas City, Missouri 64105Phone 816/474-4240 • Fax 816/421-7758

www.marc.org

first suburbs handbook - kansas city - mid-america

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