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8.3 Waiving Building Permits CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 12/18/2006 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: DEVELOPMENT SERVICES ITEM NO. Page 1 3 BY: Judy Irvin BY: ITEM: Resolution 06-6337 Consider a resolution authorizing the extension of the existing waiver of building permit and inspection fees for projects located within the Special Redevelopment Area to all housing rehabilitation permit applications submitted by the Neighborhood Services Division. BACKGROUND: In 1991, the Board of City Commissioners, recognizing certain distressed areas within the City of Salina warranted special attention and incentives to encourage economic development, created a Special Redevelopment Area (SRA). It is bounded by State Street, Ninth Street, Iron Avenue and the North Street on the south, the flood control dike on the north and the city limit lines on the east and west. (see attached map). The City of Salina and other local taxing jurisdictions have also had a Neighborhood Revitalization Plan in effect since 1996, with significant success in encouraging redevelopment. Related to these actions, various amounts of in-house fees, including those for building permits for housing rehabilitation projects, have been waived by resolution of the Board of Commissioners. The present fee waiver policy is tied to project location. Since 1996, the City Commission has budgeted $75,000 annually in the general fund to continue providing emergency and minor housing rehabilitation assistance to homeowners with low-to- moderate income. From time to time, Community Development Block Grant (CDBG) or HOME funds become available for a similar purpose; however nearly all Federal and State grant sources are required to be spent only in specific census tracts or target areas such as the SRA. The City-funded program is available to qualified homeowners throughout the City of Salina. The Board of Commissioners recently approved establishing a partnership with OCCK to provide technical services for housing rehabilitation projects funded by two Kansas Housing Resources Corporation grants to OCCK's Independent Connection program. At that time, it was noted staff would bring a proposal to the Commission for action at a later date to authorize a resolution to officially waive permit fees for such projects. It is expected some of the OCCK grant-funded projects will be located outside SRA boundaries. Numbers of permits requested by Neighborhood Services varies yearly by the type and extent of emergency repairs needed. Most emergency repairs either do not require a permit or require only a $20 stand alone permit. Permit fees for more extensive CDBG or HOME projects can be recovered by claiming waived fees as in-kind match to meet local cash match grant requirements. The value of permit fees proposed to be waived is modest, yet it could offset at least one or two minor emergency repair projects per year, thus allowing all designated housing rehabilitation funds to go for materials and services, rather than partly transferring back to the General Fund in the form of permit fee receipts. CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE TIME 12/18/2006 4:00 P.M. AGENDA SECTION NO: 8 ORIGINATING DEPARTMENT: APPROVED FOR AGENDA: DEVELOPMENT SERVICES ITEM NO. Page 2 3 BY: Judy Irvin BY: SUMMARY - recent City of Salina Housing Rehabilitation Program permits: 2005 2~05 Jan-Nov.2006 Jan-N~v.2006 Add ProJectsl Add ProJectsl resses P"t resses P"t erml s erml s 10 13 5 179 Location Outside SRA Inside SRA Totals 10 6 16 11 20 14 Broadening the area eligible under the current building permit and inspection fee waiver policy makes it consistent for permits issued for grant-funded housing rehabilitation projects, regardless of geographic location in the city. It will improve efficiency during the permit process by removing the need to determine whether or not a fee needs to be collected for a permit requested by Neighborhood Services. FISCAL NOTE: This resolution does not require a separate budget appropriation since it is to consider waiving fees charged by the City. The expected average value of proposed additional waived permits, based on the most recent fee schedule as adopted by the Commission on November 6, 2006, is estimated to range between $200 and $300 annually. COMMISSION ACTION OR RECOMMENDED ACTION Staff has identified the following alternatives for the Commission's consideration: 1. If the Commission does not wish to allow building permit and inspection fees to be waived for projects associated with the City of Salina Housing Rehabilitation Program and located outside the Special Redevelopment Area, no action is required. 2. If the Commission wishes to formally allow all permit and inspection fees to be waived for housing rehabilitation projects undertaken in association with the City of Salina Housing Rehabilitation Program, including those undertaken in partnership with OCCK, it should authorize the Mayor to sign the attached resolution. Attachments: Resolution 06-6337 Map: Special Redevelopment Area/City inset ,.. , 0.. 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