Iolans looking to increase the value of their properties may soon have an attractive enticement by the city.
Iola City Council members approved expanding a neighborhood revitalization program to cover the entire city, meaning anyone who improves the appraised values of their property by at least $5,000 will be reimbursed the difference in cost of higher property taxes they would pay as a result.
The city formerly had the revitalization plan in place only along selected areas, including along U.S. 54, State Street and in other select neighborhoods around town considered to have an abundance of “blighted” properties.
Qualifying property owners receive a rebate of 95 percent of the higher property taxes paid for six years, with taxes then phased in at 20 percent a year. The county retains 5 percent of taxes paid for administration.
Up until Monday, the city had planned to extend the program, but only for the previously designated areas.
The discriminatory nature of which properties would be excluded led Councilman Steve French to propose covering the entire city.
City Clerk Roxanne Hutton said she was told at a city clerks conference cities should avoid doing a citywide revitalization program.
If a natural disaster were to wipe out a significant portion of the city, and property owners rebuild after the land had been reappraised, “then you’ve essentially lost your entire tax base.”
The vote to approve the citywide revitalization zone passed 5-3, with members Ken Rowe, Donald Becker and Joel Wicoff opposed.
Now, the matter must go back to Allen County, Allen Community College and USD 257. The revitalization program has been possible through an inter-local agreement between the four entities.
If the other entities refuse to participate in the expanded areas, the city can still refund its portion of the tax collections to the qualifying landowners.
HOMES FOR IOLA will have an additional year to complete construction of as many as two new homes near Garfield and Sycamore streets.
Iolan Nich Lohman, speaking on behalf of Homes For Iola, asked for the extension.
The city reimburses developers demolition costs, provided a new home is built within 12 months of a home’s removal.
