NEIGHBORHOOD

RESTATED AND AMENDED REVITALIZATION PLAN

Pursuant to Sections 12 and 14 of Revitalization Plan, dated July 7, 1997, the Board of County Commissioners of Washington County, Kansas (hereinafter referred to as “Governing Body”, does hereby restate and amend said Revitalization Plan to the extent provided below. This restatement and amendment shall be effective as of the date the original Revitalization Plan was approved and adopted by said Governing Body, the same being July 7, 1997. Those provisions of the Revitalization Plan, dated July 7, 1997 which are in conflict with the provisions set forth in the Restated and Amended Revitalization Plan are repealed.

ADDITIONAL STATEMENT OF FINDINGS

The Governing Body hereby incorporates by reference the Findings of the July 7, 1997 Revitalization Plan as though fully set forth herein. Said findings enumerate the factors and conditions which qualify the neighborhoods designated herein to participate in a neighborhood revitalization program as described in K.S.A. 12-17,114 et seq. The Governing Body further notes that the average median income for Washington County, Kansas, remains significantly lower than the statewide average and that the projected population trends of Washington County previously noted in the Revitalization Plan remain a significant public concern for said Governing Body. That is, along with the aging population, there has been an out-migration of the youth to urban areas seeking employment and economic opportunities. These population and economic trends pose problems for the future in income production and leadership. In order to continue to provide the services required by Kansas law and desired by residents, tax rates will have to be increased or services cut. It is imperative that the tax base be increased in future years in order to support the spending required. Further, incentives are needed to attract and keep businesses which can attract and keep youth in the county by offering employment opportunities. Accordingly, said Governing Body recertifies that the Neighborhood Revitalization Area as designated herein contains the following conditions:

(1) That there is a predominance of buildings or improvements by reason of certain economic conditions, obsolescence and loss of population density that are detrimental to the public health, safety or welfare; and

(2) That there is a presence of a substantial number of dilapidated, deteriorated and deteriorating structures, site deterioration, and other conditions that substantially impairs or arrests the sound growth of Washington County, and the same retards the provisions of employment and housing and constitutes an economic or social liability and is detrimental to public health, safety or welfare in present condition and use; and

(3) That there is a predominance of buildings and improvements because of age, history, and architecture of other significance that should be preserved or restored to productive use accordingly.

(4) Stating that portions of Washington County are a blighted area is a difficult admission: the positive local attitude that has grown in the last few years is not supported by stating that there are a substantial number of deteriorated structures and other economic conditions that substantially impair the sound growth of Washington County.

APPRAISED VALUATION OF LAND AND BUILDINGS

The appraised valuation of the real estate in the proposed revitalization plan area by value of land and buildings can be obtained from the Washington County Appraiser’s Office located at the Washington County Courthouse, 214 “C” Street, Washington, Kansas. The appraised valuation and change in valuation shall be the fundamental basis upon which the Governing Body shall review the effectiveness of this Restated and Amended Revitalization Plan for Washington County, Kansas.

NAMES AND OWNERS OF RECORD OF PROPERTY

Each owner of record of each parcel of land is listed together with the corresponding address in the files of the Washington County Appraiser’s Office located at the Washington County Office Courthouse, 214 “C” Street, Washington, Kansas.

NEIGHBORHOOD REVITALIZATION PLAN

Restated Purpose:

This plan is intended to improve the quality of life for all citizens of Washington County and promote the revitalization and development of all townships and municipalities in Washington County, Kansas by stimulating new construction and the rehabilitation, conservation, or redevelopment of specified areas in order to protect the public health, safety or welfare of the residents of the townships and county by offering certain incentives which include tax rebates. It is the intent of this policy to expand the tax base in each municipality and township and assure that the taxing units having authority to levy taxes on the property participating in this plan will receive, in the future, not less than the amount of tax previously assessed prior to granting of the rebate.

Neighborhood designation:

The County Appraiser, as part of the regular duties as County Appraiser, has assigned each parcel of real estate to a defined neighborhood. Those neighborhood assignments are based upon commonality of location and characteristics. Each neighborhood as designated by the County Appraiser shall be included in the revitalization area for 2006. All of the neighborhoods have been adversely affected by pervasive and deteriorating economic conditions and migration of population from Washington County

The Governing Body shall conduct an annual review of the neighborhoods, as defined and updated by the County Appraiser. The Governing Body shall determine what neighborhoods should be included or removed from the Restated and Amended Revitalization Plan. The Governing Body shall take into consideration population and economic data including by illustration and without limitation, the appraised value, assessed value, valuation of land and improvements in each neighborhood, and the amount of new construction in the neighborhood whether such construction is for agricultural, commercial or residential purposes.

CRITERIA FOR DETERMINATION OF ELIGIBILITY

Agricultural Property:

(1) New additions to any existing structures used for agricultural purposes, are eligible to make application to participate in the Restated and Amended Revitalization Plan.

(2) New construction of any structure used for agricultural purposes, is eligible to make application to participate in the Restated and Amended Revitalization Plan.

(3) Structure means any building, wall or other structure, including the building and improvements to existing structures and fixtures permanently assimilated to the real estate.

Commercial and Industrial Property:

(1) Rehabilitation, alterations and additions to any existing commercial or industrial structure used for retail, office, manufacturing, warehousing, institutional or other commercial or industrial purposes is eligible to make application to participate in the Restated and Amended Revitalization Plan.

(2) Construction of new commercial and industrial structures, including the conversion of all or part of a non-commercial structure into a commercial structure, used for retail, office, manufacturing, warehousing, institutional or other commercial or industrial purposes is eligible to make application to participate in the Restated and Amended Revitalization Plan.

(3) Improvements to existing or construction of new structures used for public utility or railroad purposes may not be eligible.

(4) Structure means any building, wall or other structure, including the building and improvements to existing structures and fixtures permanently assimilated to the real estate.

Residential Property:

(1) Construction of multi-family residences, including without limitation duplexes and apartment buildings, and the rehabilitation, alteration and addition to any existing multi-family residences, including without limitation duplexes and apartment buildings, may be eligible.

(2) Construction of a new multi-family residence includes the conversion of all or part of a non-residence into a multi-family residence may be eligible.

(3) Structure means any building, wall or other structure, including the building and improvements to existing structures and fixtures permanently assimilated to the real estate.

Base Rebate:

A property tax rebate shall be granted on the ad valorem or property tax assessed on the building or improvement value of the qualifying new construction. No rebate will be given on the tax assessed against the land upon which qualified buildings and improvements are located. The amount of rebate on the new construction shall be graduated in accordance to the following table:

New Appraised Value or Projected Construction Costs	Percentage of Property Tax Rebate on Real Estate Investment/Construction
$10,000 to $99,000	55.0%
$100,000 to $1,000,000	60.0%
Greater than $1,000,000	65.0%

Incentive Rebate:

Said Governing Body will consider increasing the amount of tax rebate up to 75.0% by giving special consideration to the number of new jobs created by the construction of improvements based upon the following scale:

(1) An additional tax rebate of 1.0% will be given for each newly created job provided; however, each job must pay $2.00 or more above the federal minimum wage.

(2) Such jobs must be for full time employment and must represent new employment in case of a business expansion.

Additional Terms and Conditions:

Rebates will be considered for residential (multi-family units only), agricultural or commercial and industrial property as described above, with an initial construction date after January 1, 2003. The term of the tax rebate that will be allowed is for a period of three (3) years. An additional two (2) years may be granted to the rebate period under the provisions as set forth below. There must be a minimum investment of $10,000 appraised value change for agricultural or commercial and industrial property to receive a tax rebate.

The term of rebate period may be extended provided that the applicant agrees to divert 13% of the computed rebate per year to the economic development fund beginning with year 2 of the original 3-year rebate plan and continuing thereafter until the end of the rebate period. This portion of the rebate payable to the economic development fund is to cover years 2, 3, 4 and 5. No tax rebate will be available beyond 5 years.

Other taxing jurisdictions may participate in the rebate program offered under this revitalization plan. If other tax jurisdictions decide to participate, the amount of the rebate shall be based upon the applicable percentages set forth above. The ad valorem tax or property tax that is subject to rebate shall not include landfill or other special assessments.

Construction of an approved project must begin and be completed within one (1) year of the date of application. The Governing Body can grant extensions to the completion date requirement for good cause shown.

Commercial projects are required to submit estimated new job creation numbers for all years they are requesting a tax rebate, total estimated value of Investment, and amount of current taxes. The Governing Body may require a commercial project to maintain a payroll level of a certain amount during the period of rebate in order to remain qualified.

The new, as well as the existing, improvements on property must conform with all other codes, rules and regulations in effect at the time the improvements are made, and for the length of the rebate or the rebate may be terminated. During the period of rebate, properties must be in compliance with all applicable codes, rules and regulations. If during a given tax year a property is not in compliance with such Codes and Ordinances the Commission may withhold the rebate for that year.

Any property that is delinquent in any tax payment and/or special assessment shall not be eligible for any rebate and if any property is delinquent during the term of rebate, all future rebates are revoked and full tax and assessment shall begin. Property eligible and approved under this plan for rebates shall waive any rights to any other Washington County tax incentives reducing or rebating the property taxes on improvements, under any other adopted program pursuant to statutory or constitutional authority. Only one approved rebate application shall be allowed at any one time for any one parcel of property.

Tax rebate will be based on the increase of appraised value following the first full year of completion. In order to be eligible for a tax rebate under the Restated and Amended Neighborhood Revitalization Plan, the applicant must remain current on all property taxes due and payable to Washington County, Kansas, regardless of whether the property subject to the delinquency is the property enrolled in the plan. If property taxes are appealed or are in the process of being appealed then no rebate will be given for the year being appealed until the appeal process is finalized.

For any property enrolled or accepted in the neighborhood revitalization program, including any applicant transferred from the Business Incentive Plan, no interest on any refund or on any rebate will be paid by Washington County.

Tax rebate does transfer with ownership of the property.

Tax Rebates may be revoked by the Governing Body if any of the following happens; (1) The company or business receiving the rebate ceases to operate in the same manner, as when the property was originally rebated, for more than 60 days at the location of property receiving the tax rebate or ceases to be a multi-family residential unit, (2) The owner of an agricultural property or a commercial/industrial building loses their lessee and/or their lessee ceases to operate in the same manner, as when the property was originally rebated, at the location of property receiving the tax rebate for more than 60 days (exemptions may be granted by Governing Body). For purpose of this paragraph, the term ceasing "to operate" means closing the business to agricultural, commercial or industrial activity by the business receiving the rebate or by the lessee of the owner receiving the rebate.

The Restated and Amended Revitalization Plan shall be effective as of the date of the initial plan was repealed. The repeal of the initial plan shall be rescinded and any and all rebates made pursuant to the initial plan shall be ratified and approved. Applicants enrolled in the Business Incentive Plan shall be transferred to the Restated and Amended Neighborhood Revitalization Plan. Any and all rebates or refunds made pursuant to the Business Incentive Plan shall be ratified and approved as rebate or refund made pursuant to the Washington County Neighborhood Revitalization Plan and any amendments or restatements thereto.

APPLICATION PROCEDURE

1. Prior to the commencement of construction on any improvement or new construction for which a tax rebate will be requested, the applicant-owner shall complete Part 1 of the application.

2. Part 1 of all applications must be delivered to the Washington County Appraiser with a non-refundable $100 application fee. If the property is accepted in the program, the applicant must pay a non-refundable renewal fee of $25 for each year the property participates in the program.

3. The County Appraiser’s Office will return a copy of Part 1 to the applicant within fifteen (15) working days, indicating approval or denial of the project. The applicant may appeal the decision of the County Appraiser to the County Commission within thirty (30) calendar days of receipt of notice from the County Appraiser.

4. The County Appraiser’s Office shall forward a copy of Part 1 to the County Clerk for notification and information purposes. Copies of the application shall also be forwarded to the County Treasurer for information and monitoring purposes.

5. The applicant-owner shall notify the County Appraiser of the commencement of construction by filing Part 2 of the application.

6. For any improvement that is only partially completed as of January 1, following the commencement of construction:

a. The applicant-owner shall file Part 3 of the application with the County Appraiser indicating the status of construction on January 1. Part 3 shall be filed on or before December 15, preceding the commencement of the tax rebate period.

7. For any improvement that is completed on or before January 1, following the commencement of construction:

a. The applicant-owner shall file Part 3 of the application with the County Appraiser on or before December 1, preceding commencement of the tax rebate period certifying the completion of the construction.

8. Soon after January 1, the County Appraiser shall conduct an on-site inspection of the construction project (improvement, rehabilitation, or new) and determine the new valuation of the real estate accordingly. The valuation is then reported to the County Clerk by June 15.

9. Upon filing Part 3 and the determination of the new valuation of said real estate, the form will be filed with the County Clerk and the County Appraiser certifying the project is in compliance with the eligibility.

10. Upon payment in full of the real estate tax for the subject property on or before December 20 of the tax year where reimbursement is sought, a tax rebate in the amount of the tax increment (less any administrative fee as specified in the Interlocal Agreement) shall be made to the owner. The tax rebate shall be made by the County Treasurer’s Office of Washington County through the Neighborhood Revitalization Fund established in conjunction with the other taxing units participating in an Interlocal Agreement. An annual report shall be provided to the local taxing units.

11. Projects must be 100% complete on January 1 of the tax year where reimbursement is sought. Actual costs of construction and/or appraised value will be the criteria used to assign the rebate percentages above. If the appraised value set by the County Appraiser, during the term of the rebate, is lower or higher than appraisal amount included in the approved application then the rebate percentages will be adjusted to the corresponding rebate level.

12. The County Clerk shall complete Part 4 setting forth the calculation to determine the apportionment of the rebate and submit said form to the County Commission for decision. The County Commission shall make the final determination as to whether the property qualifies for reimbursement and the percentage of reimbursement for each year.

APPLICATION FOR TAX REBATE UNDER RESTATED AND

REVITALIZATION PLAN

PART 1

Please Print/Type

Owner’s name: ___________________________________ Day Phone: _____________

Owner’s mailing address: ________________________________________________________

Address of Property: __________________________________ School District: __________

Parcel Identification Number: _____________________________________________________

(Take from your tax statement or call the County Appraiser’s Office)

Legal Description of Property: ____________________________________________________

(Use additional sheets if necessary)

COMMERCIAL:

_____ New

_____ Rehab

____ Addition

_____ Owner Occupied

_____

Employees

AGRICULTURE:

_____ New

_____ Rehab

____ Addition

_____ Owner Occupied

_____

Employees

RESIDENTIAL

Multi-family ____

_____ No. of Units

Total Improvement Cost: (Attach drawings and dimensions)

______________________________________________________________________________

(Use additional sheets if necessary)

Estimated or Actual Date of Completion: __________________________________________

Estimated or Actual Cost of Improvements: Total: $ ___________________________________

(Documentation is needed to support these)

Materials: $___________ Labor: $___________

Estimated or Actual Cost of Land: $________________________________________________

Estimated or Actual Cost of Tangible Personal Property: $_______________________________

List of Buildings to be or actually demolished: ________________________________________

Total New Payroll Planned? ________________ Year 1 ____________ Year 2

________________ Year 3 ____________ Year 4

________________ Year 5

Current Taxes On Applicant Property _______________________

Does the applicant own the land? _____ Yes _____ No

Will the proposed project be on a foundation? _____ Yes _____ No

Will it be permanently attached to the property? _____ Yes _____ No

I have read and do hereby agree to follow all application procedures and criteria. I further understand that this application will void one year from date below, if improvements or construction has not begun. I further agree to complete the questionnaire attached to this application.

______________________________________________ ________________________

Signature of Applicant Date

A non-refundable $100 application fee must accompany this application. (Please make payable to the Washington County Appraiser’s office. The applicant shall be responsible for the annual renewal fee of $25 payable to the Washington County Appraiser’s Office.

FOR

SECTION 1: Neighborhood Revitalization Plan

The location of information concerning the assessed value of land 4, 5

and the owners of record