13 - Approval of the 5 in 5 Housing In-fill Development Program Guidelines Criteria & Application Form

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Item No. 13 TO: Mayor, Mayor Pro -Tem & City Council Grayson Path, City Manager FROM: Andrew Mack, AICP Director Planning & Community Development SUBJECT: 5 In 5 Infill Development Program Guidelines DATE: January 10, 2022 BACKGROUND & DISCUSSION For several months now City Staff has been working to develop a new program initiative to encourage and incentivize new infill development housing in the core area of the City. Over the past 2 decades the City of Paris has been vigilant in its efforts to remove dilapidated and dangerous structures left abandoned, unmaintained or vacated due to fire. This resulted in approximately 1,000 house structures being removed from the community over this period. These vacant lots present an opportunity to have new dwellings constructed on them where existing streets and utilities are available to support existing neighborhoods. Unfortunately, the character of many of these older neighborhoods have resulted in a steady decline over time, however this program offers an opportunity to turn that around by an infusion of new, good quality, decent homes that will be of modest cost because the majority of these properties are of smaller lot sizes as compared with newer development that has spread further away from the downtown area. Limited constraints & flexibility are keys. With the program guidelines as proposed, an eligibility boundary has been recommended to provide a series of incentives in the core area. This is where the need for infilling of vacant lots holds great potential to improve the overall quality and appearance of these older neighborhoods. There are 4 primary incentives associated with the program guidelines. An applicant must enter into an agreement for approval by the City Council to build 5 or more new dwelling units in 5 years on 1 or more parcels. Under this agreement, the incentives are as follows: 1. Low cost tax forfeit lots to be sold for $1 to builders and/or investors, with approval of all the taxing jurisdictions. Other privately owned, non -pubic trustee parcels in the eligibility boundary area will also be counted toward the total 5 required newly constructed dwellings all up to fully modern building safety codes. 2. A 5 year 100% tax abatement to commence from the date of final completion by the builder. Upon completion, if the builder sells the new home(s), a request can be made to the City Council to re -assign the tax abatement for the remaining period under the agreement. 3. Reduced building plan review and permit fees. The higher the number of units built over time, the greater the percentage discount of the fees. 4. Reduced water & sewer labor tap fees. The higher the number of units built over time, the greater the percentage discount of the fees. There are a number of additional specifics built into the program contained in the guidelines. To date there has been strong interest expressed in the program from builders we shared the initiative with. This proposed program was discussed with a representative of all the other 3 taxing authorities and was well received. Recommendation Approval of the resolution adopting the 5 In 5 Infill Development Program Guidelines is recommended.