The CloudCorp Board of Directors unanimously voted to recommend renewal of the Neighborhood Revitalization program in their September board meeting. I presented their decision to the Cloud County Board of Commissioners on Monday and they promptly scheduled a public hearing for Monday, November 10th at 3:15pm.
The Neighborhood Revitalization program was enacted in June of 2010 and allowed for the county to create a revitalization district. In this district, property owners have the opportunity to apply for a property tax rebate on building projects that increase the incremental market value of the property by $30,000 or more. If approved, a property owner will receive property tax rebates on the additional value added for 5 years according to the following schedule:
Year 1= 95%
Year 2= 95%
Year 3= 95%
Year 4= 80%
Year 5= 70%
This partnership is between Cloud County, the cities of Aurora, Clyde, Concordia, Glasco, Jamestown and Miltonvale, Cloud County Community College, and Unified School Districts No. 224, 334 and 333. This agreement is set to expire with the Neighborhood Revitalization Plan on December 31, 2014 but the plan can be extended another three years if agreed upon by the participating taxing entities.
The CloudCorp Board made up of various partners in this agreement met in March and again in September to review the program. They asked me to prepare tax rebate projections for current projects, new construction numbers, information on surrounding county programs, and a survey for those who participated in the program. With that information in hand, the CloudCorp board voted to recommend renewal based on the following points:
Many of the surrounding counties have a neighborhood revitalization program. It is important to our communities, especially those close to the county border, to have the program in place to remain competitive for new housing and new business.
This program is the only tax incentive we can offer to non-industrial commercial ventures existing outside the Concordia TIF district.
Neighborhood Revitalization was cited by 62.5% of participants who responded to a survey as a reason they decided to build.
The long-term taxation benefits outweigh the immediate strain felt by the rebates.
While new construction numbers did not change substantially in those years referenced in the packet, it is important to note the economic recession we encountered in 2008-2010 that deeply impacted construction and economic activity in the country.
The public is welcome to attend the public hearing at the courthouse on Monday, November 10 at 3:15 to review the program.