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Board approves Paola interlocal agreement renewing Neighborhood Revitalization Plan after debate over revenue impact
Summary
After questions about budget impacts and school-district revenue, the Paola Unified School District board voted 4–3 to approve an interlocal agreement renewing the City of Paola Neighborhood Revitalization Plan (NRP). City and county officials described how the marginal-property‑tax rebate works and how the county administers the plan.
The Paola Unified School District board on Tuesday approved an interlocal agreement with the City of Paola to continue the city’s Neighborhood Revitalization Plan, a property‑tax rebate program for improvements inside a designated district.
Randy Sheehan, City Manager for the City of Paola, told the board it is "a property tax rebate program for improvements on a property in a designated district." He stressed the rebate applies only to the marginal increase in assessed value caused by improvements and is limited to properties inside the city boundary; the district ends at Oak Creek Bridge, he said.
Randy and Mitch Gabbard, Paola’s zoning administrator, presented background: the plan began in February 2004, was originally set as a 10‑year program, and interlocal agreements with taxing entities lapsed in February 2014 though the plan itself remained in use. Miami County’s appraisal office administers rebates and calculates the marginal increases; the county also holds the fund created under the plan. Randy said 11 rebates were active and that, historically, the plan has recorded 14 commercial and 30 residential uses since 2004.
Board members debated the revenue impacts. One board member argued that the city has not been revenue neutral and said, "I personally kinda struggle with… tak[ing] money away from the district" when 38% of the rebate is borne by the school district and the district lacked precise estimates for future payouts. County staff (identified in the meeting as Jimmy) supplied recent disbursement totals: the most recent year’s total NRP disbursement across categories was $874, of which $660 was attributed to LOB and capital outlay categories, per the county’s new reporting system.
City officials said the program’s goal is to encourage rehabilitation or infill construction by reducing the immediate tax burden from improvements, and they described scenarios such as renovating historic downtown buildings or encouraging small infill homebuilders. Randy noted the program can be passed from developer to buyer in new‑construction infill cases, which can help attract builders to small lots; city staff estimated about 10–15 infill lots inside the current district.
Board members also asked administration whether vacant lots qualify; city staff said vacant lots are not eligible but a demolition followed by a rebuild on the same parcel can qualify. Staff described the application process: a property owner obtains a building permit from Paola City Hall, then works with the Miami County appraiser’s office to complete the application and the county calculates pre‑ and post‑improvement assessed values.
The board approved the interlocal agreement by a 4–3 vote. The board moved the agreement into effect without modifying plan language; the city and county had already approved their respective actions, and the interlocal agreement formalizes local taxing‑entity participation for the NRP in Paola.
The board asked city staff to provide more granular projections for school‑district budgeting if the program expands, and city staff said expanding boundaries or more active promotion would require additional staff capacity.
