Looking Ahead in Wayne
Next Regular City
Council Meeting
May 20th at 5:30 p.m. in the council chambers at
306 Pearl Street.
What does "blight and
substandard determination" mean?
- Our
house on Oak Drive is over 40 years old.
It doesn't meet current insulation and ventilation building code
standards, the driveway is cracking and it needs new shingles and would
likely be determined to be blighted and substandard in a "blight and
substandard study" of the area.
- Almost
every home in Nebraska over 40 years old would likely qualify.
- Land
in the city limits that is poorly drained or has problems with storm water
run-off, is underdeveloped or has unsightly stuff on it would likely
qualify as "blighted and substandard".
- Most
commercial properties downtown would likely qualify because they are over
40 years old unless they have been totally renovated.
Why do we care about
this?
- No
building lasts forever.
- Where
do we get the money to fix up or tear down old buildings and replace them?
- If a
building isn't maintained what will it look like in another 20 years?
- Should
a community care if buildings aren't maintained?
What about downtown?
- Most
Nebraska towns were railroad towns and were built about the same time.
- New
state grant assistance and tax credit programs are being made available to
property owners to help pay the costs to repair and extend the life of
older buildings, fix sidewalks and streets.
- To
qualify for some of these programs a "blight determination study"
(Congress gave it this name) has to be done for the area..
- Some
communities will take advantage of these new programs and some won't.
- Wayne
is seeking grant funds to assist building owners downtown and is doing the
required "blight and substandard determination" study of the downtown
area.
What is Tax Increment
Financing (TIF)?
- TIF is
a financial incentive to build and renovate property in areas determined
to be "blighted and substandard".
- State
law allows cities to approve a private TIF loan to a builder to help pay
for removal of old buildings and new construction and renovation projects
that create "new" real estate property valuation in an area that is
"blighted and substandard".
- The
city can authorize the "new" incremental property tax that is generated by
the new building to be used for the next 14 years to pay off the TIF loan
that helped build it.
- The
community gets new and renovated buildings that would otherwise not have
happened with TIF help in areas that need it.
- Some
communities use tax increment financing to help growth and some don't.
What is an example of
TIF in Wayne?
- The
Oaks Retirement Center was built in 1998 with assistance from a TIF loan.
- The
community has enjoyed the benefit of this facility for nine years.
- The
$67,000 "new" property taxes per year that were dedicated to pay off the
Oaks TIF loan have paid it off 6 years ahead of schedule and now will go
to the school, city and county for future years.
- The
community now has both the benefit of $67,000 in new tax revenues and the
addition of the Oaks.
Why do these things?
- Communities
grow and prosper by one project at a time.
- Some
communities use all the incentives they can find and some choose not to.
- Someone
has to step up and take the risk.
- Wayne
has a history of being pretty active.
City Budget Sessions
The mayor and city council are meeting in informal open
budget discussions after council meetings planning next year's budget. Your comments and presence are encouraged.
Questions or comments?
Call Lowell Johnson, City Administrator at 375-1733 or email me at cityadmin@cityofwayne.org.
