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Commission hears overview of Reinvestment/Housing Incentive Districts; staff to pursue targeted housing-needs study
Summary
City staff briefed the commission on Reinvestment/Housing Incentive Districts (RHID), explaining two RHID types, approvals required from county and school districts and the Kansas Department of Commerce, and recommending a targeted housing-needs assessment as a next step to determine whether RHID or existing incentives better meet local needs.
City planning staff reviewed the Reinvestment/Housing Incentive District (RHID) program and asked the Leavenworth City Commission whether to pursue a targeted housing needs assessment before adopting any RHID boundaries.
Staff described two RHID formats: a subdivision-infrastructure RHID, which funds site and utility infrastructure for new single-family or multi-family subdivisions, and an upper-story RHID designed for housing in central business districts that can help cover remodeling costs for units above ground-floor commercial space. Staff noted the upper-story option is limited to properties inside the central business district and may cover work such as HVAC and interior upgrades.
The briefing explained how RHID functions: the baseline property-tax amount for properties inside the district continues to be paid to taxing bodies, while tax growth (the increment) generated by development is redirected to reimburse developers or finance infrastructure for an agreed term. Staff said RHID agreements can run up to 25 years and require local legal descriptions of the district, county and school-district concurrence, and approval from the Kansas Department of Commerce.
Officials discussed trade-offs. Commissioners asked whether RHID would reduce revenue to the county or school districts; staff said the districts must approve and that some counties and school boards nationally have become less willing to participate because they view the redirected increment as foregone revenue. Staff said RHID is best used to address locations that would not develop without incentives and cautioned that the city should not apply incentives to greenfield sites that already attract private development.
Staff recommended the next step be a targeted housing-needs assessment and said they would issue a request for proposals to obtain a longer-form study that would include recommendations and targeted geography for any RHID. A developer-provided housing study previously shared with staff offered a cursory look, but staff and commissioners said they want a city-specific analysis before proceeding. “We will probably conduct our own housing needs assessment,” staff said.
Commissioners expressed particular interest in applying incentives downtown for upper-story housing and in North Leavenworth for residential redevelopment; they also asked staff to analyze why the existing Neighborhood Revitalization Area (NRA) program has not yielded the same developer interest. Staff said they will return with procurement options and a scope for the housing study.
Clarifying details: RHID can run up to 25 years; two RHID types are subdivision-infrastructure and upper-story (for central business districts); approvals required include county, school district and Kansas Department of Commerce sign-off; staff will issue an RFP for a housing needs assessment to target any potential district boundaries.
