The Unified Government is putting more private properties in the delinquent tax sale than previously, a UG committee heard on Monday night.
UG officials said they had a goal of increasing the number of properties in the tax sale, and the most recent tax sale had more properties in it than the entire number of properties in a previous year. A report on delinquent real estate was made to the UG Administration and Human Services Committee.
The UG has more than $29 million owed in back delinquent tax revenue, according to Dennis “Tib” Laughlin, of the UG staff. About 6,500 properties are tax-sale eligible, he said.
In the past the UG was working through 700 to 1,000 parcels a year while 1,000 more were becoming tax delinquent, he said.
“When we take your house, we’ve lost,” he said. “The win is to keep you in your house, and in a status where you’re a good neighbor to the people around you.”
He said it was important to intervene in the beginning.
The UG changed a policy to accepting partial payments, he said, setting up payment plans for tax-delinquent properties. In general, the taxpayer has to pay half of the payment to be put on a payment plan, but the taxpayer is able to ask a judge for an exemption if there are special circumstances.
Laughlin said different UG departments are now working together on delinquent taxes and efforts to reduce blight.
At the spring tax sale, there were 692 properties placed in the sale, with 50 percent of the revenue coming from people who came in and gave the UG the back taxes, he said. Some others went on payment plans. He said people are now taking the UG seriously, because they really will take your house now.
About $1 million was raised at the spring tax sale, there were 400 bidders, and only 100 properties were left to sell by the time it started. About 80 properties were sold and 20 were moved to the Land Bank, he said.
A total of $3.3 million came in that day, much of it from property owners paying the back taxes to take their property out of the tax sale.
Last year it was decided to double the number of properties in the tax sales, he said. There are two more tax sales scheduled this year, and one of them has recently been posted for Aug. 17, with more than 600 properties listed at http://maps.wycokck.org/gisdata/TaxSale/TaxSaleList338.pdf.
Neighborhood Revitalization tax rebate program
The UG Committee also heard a presentation about the Neighborhood Revitalization Act tax rebate program.
Under this program, certain properties are eligible for tax rebates if there are repairs or remodeling made to them.
Angela Harshbarger with the UG Economic Development Department said the current plan is expiring at the end of this year and a new plan will be presented for approval. It will be presented for approval to the various school districts in the county before bringing it back to the UG Commission for approval.
A Neighborhood Revitalization map shows four areas, each with criteria for residential and commercial property development, she said.
An area in the eastern part of Kansas City, Kansas, is eligible for 10 years of tax rebates, as compared to five years in the other areas. In certain areas, there may be a 95 percent property tax rebate. She said the actual rebate is based on the incremental increase in taxes from completed construction improvements only. The actual rebate amount will be calculated by the treasurer’s office, she added.
Special project areas now include the east side of the city, and the State Avenue Corridor, she said. The rebate period is up to 20 years in the special project areas. Two proposed additions are the State Avenue East Corridor, I-635 to 57th Street along State Avenue, and the Leavenworth Road Corridor, 33rd to 77th streets, she said.
Commissioner Jane Philbrook asked for the Leavenworth Road Corridor area to be extended to 82nd Street. The special project areas have to be a minimum of over $3 million and either retail in nature, environmentally contaminated area or a historic designation, Harshbarger said.
As of this month, there were 105 projects in the Neighborhood Revitalization program during the past two years, including nine residential rehabilitations, 79 new residential projects, five commercial rehabilitations and 12 new commercial projects, she said.
For 2015, the commercial project costs totaled $6.1 million and residential, $6.7 million; for 2016, the commercial projects totaled $3.5 million, and residential, $6.5 million, she said.
Harshbarger said there are policy and language changes proposed, including allowing contract for deed properties to be eligible; base land value determined by current use as of Jan. 1; ineligible businesses would be liquor stores, bars and establishments with less than 50 percent food sales; and project completion within 24 month of application approval.
Bus service to new Amazon facility
Justus Welker of the UG Transportation Department said the UG has developed a plan for a temporary shuttle stop bus service connecting from two major transit hubs to the Amazon Fulfillment Center.
A weekday service would operate on a 30-minute schedule from the 47th Street Transit Center to Amazon, and it would also stop at Kansas City Kansas Community College.
On the weekend, the buses for this service would operate every 60 minutes, connecting the 10th and Main Transit Center in Kansas City, Mo., to the 47th Street Transit Center and then going to Amazon.
The estimated cost for the weekday service would be $78,000, and weekend service would cost about $40,000, he said.
The temporary service from July 30 through Dec. 31 would cost about around $127,000, he said. He added they may need to make changes.
This is the second proposal to the committee on bus service to Amazon; the first was more expensive. Commissioners said they would like to have a temporary service until they have more data about usage. The UG intends to develop a permanent plan once it has more information.
Commissioner Jane Philbrook added that she would like to see Amazon put some money into it. Commissioner Melissa Bynum said there is an opportunity for employers to purchase a discounted pass for employees through the Kansas City Area Transportation Authority.
The committee approved the temporary bus plan, which will go to the full commission for approval.
Agreement between UG and Fairfax Drainage District
In other action, the UG Administration and Human Services Committee voted to approve an interlocal agreement between the UG and the Fairfax Drainage District to reimburse the district for use of the district’s sewer system.
The agreement calls for the UG to pay the Fairfax Drainage District $192,690 to be used toward sewer cleaning and maintenance.
Sediment and debris accumulates within the district’s sewers from in-district and out-of-district sources, according to the agreement.
To see a video of this meeting, visit https://www.youtube.com/watch?v=9N_TmTBf3HQ.