On September 1, 2020, the Board of Aldermen approved three applications for downtown property owners to make improvements to buildings in downtown Parkville. Since the Downtown Parkville Redevelopment Plan was approved in December 2019, four applications have been approved for four different downtown properties totaling $828,517 in improvements with a total positive net benefit of $71,997 to Plate County’s taxing districts over the terms of the incentives.
Discussions between the City and downtown property owners, merchants and representatives from the Main Street Parkville Association began in fall 2019 to discuss options and receive feedback about creating a Chapter 353 Downtown Parkville Redevelopment Plan. The group concluded that Chapter 353 economic incentives would be beneficial to all property owners and provide a more effective solution for improving the appearance of buildings downtown. In December, the Board of Aldermen approved the Downtown Parkville Redevelopment Plan and Downtown Parkville Redevelopment Policy.
The Plan allows for Missouri Chapter 353 program tax abatement which encourages investment into properties to fix structural conditions and enhance the overall appearance of downtown. The incentives offer an opportunity to preserve downtown’s unique character and appearance by providing a financial tool/mechanism for property owners through a property tax abatement. In order to qualify, a project must meet certain qualifications as set forth in RSMo Chapter 353.
The City developed a Downtown Parkville Redevelopment Policy to encourage building improvements in the Old Town District of downtown. It evaluates redevelopment projects and considers financial incentives according to specific thresholds which are modeled after tier levels used by other communities in the Kansas City region that have adopted similar Chapter 353 programs. The three tiers include an abatement of any new property taxes, as the result of the improvements, at the following levels:
- Level A (market stabilization) which allows 90% property tax abatement for up to 10 years and requires a minimum investment of $15,000 (100% for exterior improvements) or $25,000 (50% for exterior improvements); and
- Level B (market stimulating) which allows 90% property tax abatement for up to 12 years and requires a minimum investment of $150,000 (50% for exterior improvements); and
- Level C (market shifting) allows 90% property tax abatement for up to 15 years and requires a minimum investment of $750,000 (50% for exterior improvements).
The following projects have been approved:
- 16 Main Street (restaurant use) qualified for Level B tax abatement for work valued at $501,517 in interior and exterior improvements, with a positive net benefit of $40,481 to the taxing districts over the 12-year period; and
- 100 South Main Street (restaurant use) qualified for Level A tax abatement for work valued at $65,000 in interior and exterior improvements, with a positive net benefit of $5,032 to the taxing districts over the 10-year period; and
- 110 Main Street (first floor general store/lunch counter, second floor short-term rentals and addition of a third story for short-term rentals) qualified for Level B tax abatement for work valued at $162,000 in interior and exterior improvements, with a positive net benefit of $20,564 to the taxing districts over the 10-year period; and
- 101 Main Street (short-term rentals on second floor) qualified for Level A tax abatement for work valued at $100,000 in interior and exterior improvements, with a positive net benefit of $5,920 to the taxing districts.
Projects approved under the Downtown Parkville Redevelopment Plan will continue to pay the same annual property tax amount, and any increases indicated in the tiers, from the year it is approved until applicants are either reimbursed for their project’s cost or for up to the total length of the term. Once the applicants are reimbursed, the property tax rates in the following years will no longer remain at the same rate as they did during the incentive period.
Successful implementation of the program will result in a stronger downtown and overall stronger Parkville community. The program’s success will be dependent on the private sector’s commitment to improve the condition and value of the buildings downtown. The activity in the first year, and other development activity in Parkville in the first year of the program, has been strong, even taking into account some economic pressures related to COVID-19.
For additional information, contact Community Development Director Stephen Lachky at (816) 741-7676.