Derby North Gateway Tax Increment Financing District Redevelopment Project Plan. July 25, 2013

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1 Derby North Gateway Tax Increment Financing District Redevelopment Project Plan July 25,

2 Table of Contents I. Summary of Feasibility Study... 3 (Includes District Map and Legal Description) II. Redevelopment District Plan III. Relocation Assistance Plan IV. Description of Improvements

3 I. Summary of Feasibility Study 3

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16 A tract of land located in the SE ¼ and the SW ¼, Section 25, Township 28 South, Range 1 East and in the NW ¼, SW ¼ and the NE ¼ of Section 36, Township 28 South, Range 1 E of the 6 th Principal Meridian, Derby, Sedgwick County, Kansas, more particularly described as: Beginning at the southwest corner of Lot 3, Block C, Stone Creek Addition; thence west 150 to the southeast corner of Lot 1, Block A, Stone Creek Commercial Addition; thence west along the south line of said Lot 1 and along the south line of Stone Creek Commercial 3 rd Addition to a point 10 feet east of the southwest corner of Lot 1, Block A; thence north along a line 10 east of and parallel with the east right-of-way line of Commerce Drive to the south line of reserve A as platted in Stone Creek Commercial 3 rd Addition; thence west along the south side said Reserve A to the west line of Stone Creek Commercial 3 rd Addition; thence north along the west line of said Stone Creek Commercial 3 rd Addition to a point on said west line and 325 north of the south line said Reserve A, thence west 70 to the east line of Stone Creek Commercial 2 nd Addition; thence south along the said east line to the south line of said Stone Creek Commercial 2 nd Addition; thence west along said south line to a point on the easterly right-of-way line of State Highway K-15; thence southeasterly on said right-of-way line to a point on the S line of said Sec. 25, feet, more or less, east of southwest Corner of said Sec. 25; thence south 60 feet; thence west parallel with said south line feet, more or less, to a point on the extended westerly edge of the State Highway K-15 Frontage Road pavement; thence southerly on said westerly edge of pavement, and westerly edge of pavement extended to a point on the north line extended of Wal-Mart Addition said point also being on the north line of the southwest ¼ Section 36, Township 28 south, Range 1E; thence east along north line of said Wal-Mart Addition extended to the east line of State Highway K-15 right-of-way; thence east feet, north feet and east feet more or less, along the northerly line of said Wal-Mart Addition to a point being west of the northeast corner of said Wal-Mart Addition, said point also being on the west line of Lot 20, Block 1, Old Ranch Addition; thence northerly feet to the northwest corner of said Lot 20; thence east along the north line said Lot 20 to the west line of Duckcreek Lane; thence north along the west line of Duckcreek Lane to the southeast corner of Lot 19, Block 1, Old Ranch Addition; thence west along south line of said Lot 19 to the southwest corner said Lot 19; thence northeasterly along the westerly line of Lots 6-19 inclusive to the north line of said Old Ranch Addition; thence east along said north line and north line extended to a point being 40 east of the west line of NE ¼ Section 36, T28S, R1E; said point being on the east right-of-way line of Buckner Street; thence north along east right-of-way line of Buckner to the northwest corner Lot 1, Block 1, Ridgepoint 4 th Addition; thence north 150 to the point of beginning. 16

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26 II. Derby North Gateway Redevelopment District Plan Approved by Derby City Council May 28,

27 REDEVELOPMENT DISTRICT PLAN FOR THE DERBY NORTH GATEWAY REDEVELOPMENT DISTRICT THROUGH TAX INCREMENT FINANCING SECTION 1: PURPOSE A district plan is required for inclusion in the establishment of a redevelopment district under K.S. A The district plan is a preliminary plan that identifies proposed redevelopment project areas within the district, and describes in a general manner the buildings, facilities and improvements to be constructed or improved. SECTION 2: DESCRIPTION OF TAX INCREMENT INCOME Projects financed through tax increment financing typically involve creation of an increment in real estate property tax income. The increment is generated by segregating the assessed values of real property located within a defined geographic area such that a portion of the resulting property taxes flow to the City to fund projects in the redevelopment district, and the remaining portions flows to all remaining taxing jurisdictions. The portion of property taxes flowing to the City is determined by the increase in the assessed value of the properties within the redevelopment district as a result of the new development occurring within the same area. When the current aggregate property tax rates of all taxing jurisdictions are applied to this increase in assessed property value from new development, increment income is generated. Public improvements within the district and other qualified expenditures are funded by the City and repaid over a specified period of time with this increment income. The property taxes attributable to the assessed value existing prior to redevelopment, the original valuation, continue to flow to all taxing jurisdictions just as they did prior to redevelopment. This condition continues for the duration of the established district, as defined by statute, or until all eligible project costs are funded, whichever is of shorter duration. SECTION 3: DESCRIPTION OF THE DISTRICT BOUNDARIES The property within the proposed district is generally located on the south side of Patriot Avenue and bordered by K-15 highway on the west and North Buckner Street on the east. A map depicting the boundaries of the proposed Derby North Gateway Redevelopment District is on page 17 of this document. SECTION 4: BUILDINGS AND FACILITIES The proposed district is located within the City of Derby and is subject to the Derby Comprehensive Plan, which identifies and recommends the appropriate uses in this area. The proposed development will include existing commercial property as well as a new retail center consisting of a Menards home improvement store and creation of six pad-ready development sites adjacent to Menards. The City intends to acquire the necessary property and construct a realignment of Nelson Drive within the proposed redevelopment district, including drainage improvements and landscaping. The area meets the 27

28 criteria for designation as a blighted area as defined by state law governing the establishment and financing of redevelopment districts. Property within a blighted area is legally eligible for establishment of a redevelopment district. SECTION 5: REDEVELOPMENT AND PROJECT AREAS The proposed district contains a single Project Area with boundaries coterminous to the Redevelopment District. TIF revenues used to pay for eligible expenses shall not exceed $2,215,000. The plan generally calls for realignment of Nelson Drive in conjunction with the private development of a Menards home improvement store and six adjacent pad-ready development sites. Realignment of Nelson Drive will improve traffic safety in the area, stimulate reinvestment in the Project Area, and transform this major community gateway. SECTION 6: CONCLUSION After establishment of the redevelopment district, redevelopment projects to be funded with tax increment financing will be presented to the Governing Body for approval through adoption of a Redevelopment Project Plan. The Plan will include detailed descriptions of the projects as well as a financial feasibility study showing that the economic benefits outweigh the costs. The Plan must be reviewed by the Derby Planning Commission and submitted to a public hearing following further notification of property owners before it can be adopted by a two-thirds majority vote of the Governing Body. 28

29 III. Relocation Assistance Plan A relocation assistance plan is not necessary for this project; it is anticipated that no residents or businesses will require relocation as a result of the improvements. 29

30 IV. Description of Buildings and Facilities Street Improvements As recommended in a 2010 Traffic Study, street improvements from this project will realign Nelson Drive from its current intersection with Patriot Avenue just east of Highway K-15 to a location further east, lining up with Commerce Drive north of Patriot Avenue. The realignment includes signalization of the new intersection. These proposed improvements will not only improve safety but also result in a more continuous commercial corridor, providing improved access to the properties in the area. Drainage Improvements Several properties in the Derby North Gateway Redevelopment District, especially those adjacent to Nelson Drive in the southern portion of the District, experience problems with stormwater runoff during periods of significant rainfall. The proposed drainage improvements will collect stormwater runoff in an enclosed drainage system, conveying it to the existing stormwater system crossing Highway K-15 from the existing detention storage area in the Menards Addition. Landscaping Improvements Landscaping improvements include the addition of landscaping features that will improve aesthetics along the Nelson Drive corridor. Land Acquisition The realignment of Nelson Drive will necessitate the acquisition of several tracts of land to be utilized as road right-of-way. The drainage improvements will also require acquisition of temporary and permanent easement rights to facilitate construction and future maintenance of the proposed stormwater system. Private Investment The most significant private investment in the Redevelopment District is the proposed construction of a Menards retail center on Lot 1 Block A of the Menards Derby Addition. The Menards Derby Addition also includes six outparcels intended for construction of additional retail businesses. 30