Allen County commissioners put off on whether to expand the boundaries of the Neighborhood Revitalization Program within Iola, saying they would revisit the matter at their last meeting of the year.
Meanwhile, city officials said Allen Community College trustees and USD 257 board members were waiting “to see what the county does” before deciding whether to embrace the program.
The NRP dates to 2006 and is financial incentive for residential and commercial construction and improvements of at least $5,000. The carrot is a refund of 95 percent on property taxes for the new construction or improvements for six years, with tax bills then phased in at 20 percent a year.
Iola sees the program as an opportunity for economic development that should be available to all.
Shonda Jefferies, Iola code enforcement officer, noted all of Neosho County is on the cusp of being included in a revitalization program.
“We need to be competitive,” Jefferies said.
In response to the commissioners’ reluctance to jump aboard, City Administrator Carl Slaugh said the incentive program would be superfluous if “people were begging to build in the city, but they aren’t.”
A sticking point for commissioners is the law that enacts neighborhood revitalization mentions blighted areas as a requirement for the program, which Slaugh said could be liberally interpreted.
“In Johnson County, they talk about a pasture being a blighted area,” he noted.
He allowed that while parts of Iola might not be considered blighted, “nothing is happening and this is a way to promote development.” Also Slaugh said there was nothing to lose because refunds do not affect property already on assessment books.
Works countered that government costs more each year and asked how the county and other governing bodies find revenue “without raising taxes” on existing properties.
“That’s a balance you have to weigh,” Slaugh said.
David Toland interjected that the revenue picture was broader than just property taxes.
“You have sales taxes and utility sales” from new development, said Toland, executive director of Thrive Allen County, as well as increases in employment when businesses upgrade or expand.
“You don’t want to take a knife to a gun fight,” Toland said of competition with other areas, such as Neosho County.
He theorized that if a Humboldt business, such as Monarch Cement, hired an executive who decided to build a home, Chanute might be more attractive than Humboldt or Iola because of a property tax incentive.
