FOR IMMEDIATE RELEASE
The City of Springfield hosted an informational open house regarding the proposed Grant Avenue Parkway Redevelopment Plan Thursday, Sept. 29 with approximately 50 residents, property owners and developers in attendance.
Springfield Department of Economic Vitality staff along with planning consultants with PGAV provided a presentation of the contents of the Redevelopment Plan, outlining economic development and neighborhood revitalization resources along a portion of the Grant Avenue Parkway improvement corridor. The identified redevelopment area encompasses Grant Avenue between Catalpa Street to the south and Olive Street to the north, as well as properties located roughly between Campbell Avenue to the east and Douglas Avenue to the west.
The goals of the plan are to provide financial assistance programs to support private economic development and neighborhood revitalization along the Grant Avenue Parkway corridor and into the surrounding neighborhoods.
What are we trying to accomplish?
- Continuation of a Community-led Process: This work is another step in the Grant Avenue Parkway planning and placemaking process in which the community has been engaged for the past few years.
- Lifting up the neighborhood: Facilitating private development to match the $26 million public investment.
- Preventing displacement: Developing strategies to help long-term homeowners improve their homes and to stay in the neighborhood.
- Flexibility: Providing developers with flexibility to aid in the implementation of the Grant Avenue Parkway Corridor Plan and ForwardSGF Comprehensive Plan.
What we heard from the public:
- Opportunities are needed for small-scale entrepreneurs to own or rehabilitate homes.
- The importance of avoiding displacement or gentrification.
- Opportunities are needed for local businesses to generate activity centers along the Parkway.
- The development community needs flexibility.
What tools are available through the Redevelopment Plan?
Real Property Tax Abatement
Land Clearance for Redevelopment Authority (LCRA) Law (“Chapter 99”)
- Abatement of real property taxes for a period of up to 10 years
- Subject to the City’s approval processes.
Urban Redevelopment Corporations Law (“Chapter 353”)
- Abatement of real property taxes for a period of up to 25 years
- Subject to the City’s approval processes.
How does tax abatement work?
Chapter 99: The taxable value of a property essentially becomes “frozen” for a period of up-to 10 years so that property taxes do not increase.
Why utilize Chapter 99 Tax Abatement?
To help existing homeowners fix-up their homes, protect or enhance their asset and to stay in the neighborhood. Also to help facilitate redevelopment projects within the Redevelopment Area.
Chapter 353: The taxable value of the land is frozen for a period of up-to 10 years, and then the property is valued at 50% of its total taxable value for up to an additional 15 years. This provides up to 25 years of abatement.
Why utilize Chapter 353 Tax Abatement?
To help facilitate larger redevelopment projects along within the Redevelopment Area.
The application of both tools within the Plan Area gives the City, property owners, and potential developers more flexibility.
How to participate in identified tax abatement programs:
As per state statute, both mechanisms (Chapter 99 and Chapter 353) require the preparation of a blight study and a redevelopment plan.”
The Redevelopment Plan and accompanying blight study fulfills this role in either process and takes two major steps out of the way, saving property owners and investors time and money.
Any property owner or developer seeking tax abatement is still required to:
- Apply with the City for tax abatement.
- Provide certain financial information about their proposed project.
The process to use the Chapter 99 incentive is approximately a 22-day process, including an application step and review by the LCRA .
The process to use the Chapter 353 incentive is an approximately 60-day process involving conferring with City Staff, an application step, and City Council approval.
“Neighborhood revitalization and economic development tools are vital as we work alongside the upcoming roadway improvement construction to transform this corridor,” explains Economic Vitality Director Amanda Ohlensehlen. “This Redevelopment Plan will coordinate with the previously established Grant Avenue Corridor Plan to help support the type of development and revitalization envisioned by the community through this project.”
For more information and to view meeting materials and access program application handouts, visit grantavenueparkway.com/revitalization.
In addition to the tools offered in the GAP Redevelopment Plan, residents and property owners in the Grant Avenue Corridor may also benefit from affordable housing programs that encourage home ownership by offering down payment assistance and land-trust partnerships through the Springfield Community Land Trust. Community service organizations such as Habitat for Humanity and programs through the state and federal government offer several financing options toward owning a home. Banks and other lenders also have several low-interest options available for financing the purchase of a home or, reinvesting in existing homes by making improvements.
Details about these opportunities can be found at Restoresgf.com. Restore SGF is a program under development that is funded by the City’s American Rescue Plan Act (ARPA) dollars, with support from Community Foundation of the Ozarks and area financial institutions Oak Star, Commerce and Legacy Bank.
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For more information, contact Kristen Milam at 573-819-3713 or [email protected].