City of Salina
Margy Clem | Development Coordinator | [email protected]
Amanda Barnett | LFKS Housing & Infill Dev. Fellow | [email protected]
City of Salina Housing Policy
The Live Salina Housing Assessment and Strategic Plan was adopted by the Salina City Commission on January 25, 2016. Since 2016 that plan has guided much of the local business growth and neighborhood revitalization efforts – Including projects in Downtown Salina.
Because of the local economic growth, an updated supplement to the Live Salina Housing Assessment and Strategic Plan was adopted by the Salina City Commission on October 24, 2022. The purpose of updating the plan was to ensure that the community’s demographics and new employment numbers are as current as possible. The City has established an annual contract for plan updates for the next 5-years.
The City of Salina Housing Policy documentation is intended to provide both information and structure to the economic assistance programs available to developers subject to the approval of the Salina City Commission. The document contains detailed information about how Rural Housing Incentive District (RHID) and Industrial Revenue Bonds (IRBs) provide project-cost tax credits for Utility and Infrastructure land improvements. The conversation for both economic incentive programs can be started for using the same form Residential Housing Incentive Request Form.
Eligibility: Subject to local approval by the governing body
Application: Residential Housing Incentive Request Form
Policy: City of Salina Housing Policy
Live Salina Plans: 2016 Live Salina Plan & 2022 Live Salina Supplement
Summary Packet: Development Packet
Community Improvement District
A Community Improvement District (CID) is a real estate economic development tool that can be used to finance public or private facilities, improvements and services within a local city or county. The CID funding mechanism can be used to finance a variety of locally approved development-related activities including property acquisition, infrastructure development, and parking and building construction within the district. It can also extend to certain infrastructure improvements outside the designated district, if those improvements are contiguous to the district and are deemed necessary to implement the development plan. A CID can derive revenues through special assessments, a district-only sales tax or other funds as appropriated by the city or county.
Financing is provided through bond issuance or can be project generated on a pay-as-you-go reimbursement basis. Businesses within the district must approve the imposition of a district sales tax or property tax special assessment prior to its establishment. Those sales tax and special assessment proceeds are used to pay off bonds issued and / or contribute to the direct reimbursement of project-related costs. These special district taxes and special assessments have a maximum term of 22 years.
Contacting the local governing body should be a first step if there is interest in considering the establishment of CID to assist in funding project-related needs.
Eligibility: Subject to local approval by the governing body
Application: Community Improvement District Petition
Policy: Community Improvement District Policy
Map: Area of Change
Enterprise Zone
A rebate of 50% of paid building permit fees
Eligibility: A qualified business located anywhere in Saline County, including the city of Salina, is eligible for this incentive for newly constructed buildings, building additions or renovations to existing buildings, when the project cost, as shown on the building permit application, exceeds $100,000 and the building is used for (a) manufacturing articles of commerce; (b) conducting research and development; or (c) storing goods and commodities sold or traded in interstate commerce. The rebate shall be paid at the time of issuance of a final Certificate of Occupancy.
Application: No application is required; eligibility will be determined by City staff as part of plan review for a building permit.
Industrial Revenue Bonds
Industrial Revenue Bonds (IRBs) are generally used as a tool to grant full or partial property tax abatement for certain commercial facilities for up to 10 years and a sales tax exemption for labor and materials purchased for new facilities. In limited circumstances, IRBs may be used to provide lower-cost tax-exempt financing for eligible manufacturing projects.
Eligibility: Eligible expenses include land, buildings and equipment for qualifying manufacturing, agricultural, commercial, industrial and other facilities in accordance with K.S.A. 12-1740 et. seq.
Application: Industrial Revenue Bonds Application & Industrial Revenue Bonds Application Procedure
Policy: Resolution 81-3547
Neighborhood Revitalization Program
Under the Neighborhood Revitalization Program (NRP), property owners have the opportunity to receive a property tax rebate on additional taxes levied as a result of eligible property improvements within the designated areas. The purpose of the tax rebate is to encourage both new construction and rehabilitation of existing buildings in identified redevelopment areas.
The rebate is based on a formula applied to the added taxes paid resulting from the increased assessed value of the property after completion of improvements. The rebate ranges from 50% to 100% for the first five years and 25% to 50% for the next five years, depending upon the improvement and the increase in valuation.
Eligibility: Provided that they are located within approved geographic areas, all types of residential property are eligible except accessory structures such as detached garages and storage buildings. Improvements must cost $10,000 or more and increase assessed value by at least 10% for residential property.
Provided that they are located within approved geographic areas, all types of commercial and industrial property are eligible except public utilities and railroads. Improvements must cost $20,000 or more and increase assessed value by at least 20% for commercial and industrial property.
Qualified improvements include new construction, rehabilitation, alterations and additions all of which require a building permit. Improvements must comply with City codes and regulations. [Resolution No. 04-6028, 6029, 6030]
Application: Neighborhood Revitalization Program Tax Rebate Application. Application must be filed within 60 days of building permit issuance
Maps: Neighborhood Revitalization Areas
Policy: Neighborhood Revitalization Plan
Property Tax Exemption Program
Kansas counties and cities may exempt from all ad valorem (property) taxation all or any portion of the appraised valuation of buildings, land, and tangible personal property used exclusively by a new business for (a) manufacturing, (b) research and development, or (c) the storing of goods traded in interstate commerce. Also, an exemption may be given for existing buildings or new expansions to existing buildings, and for the land and associated new personal property, for these same purposes, to facilitate the expansion of the business, if new employment is created. The exemption may extend for up to 10 years. Leased property can qualify under certain circumstances (K.S.A. 79-221).
Eligibility: Eligible properties include all newly constructed buildings or additions to existing buildings used exclusively for eligible business activities (listed above) necessary to facilitate the formation of a new business or expansion of an existing business if, as a result of such formation for expansion, new employment is created.
Each application for property tax exemption will be evaluated in accordance with the following criteria:
- Demonstration of economic benefit
- Preservation of existing tax base
- Eligible business (manufacturing, research and development, storage of goods or commodities sold or traded in interstate commerce)
Application: Property Tax Exemption Application
Policy: Resolution 91-4265
Qualified Opportunity Zones
Opportunity Zones, established by Congress in December 2017 as part of the Tax Cuts and Job Act, promote long-term investments in certain census tracts, with the goal of stimulating development in these economically distressed communities. This program allows taxpayers to re-invest private capital gains and postpone or decrease federal capital gains taxes in districts designated as “Qualified Opportunity Zones.”
Eligibility: There are two opportunity zones in Salina – census tracts 1 (Downtown Salina) and 6 (Salina Airport Industrial Area). Opportunity Zones are intended to be accessible to all classes of investors and businesses, and not just select developers and properties within the designated zone. In addition, there is no cap on gains made on investments in an Opportunity Zone.
Application: Economic Development Incentives - General Application
Map: Opportunity Zone Map (Tract 1), Opportunity Zone Map (Tract 6)
Sales Tax Rebate
The governing body agrees to rebate all or a portion of sales taxes collected by the business in exchange for certain economic development (e.g., job creation, assessed value growth, growth in sales tax base, etc.). Sales Tax Rebates involve a contract between the business and the City setting out the terms of the rebate.
Eligibility: Any commercial project that generates sales tax
Application: Economic Development Incentives - General Application
Special Redevelopment Area
100% waiver of building permit fee for all newly constructed buildings, building additions or renovations to existing buildings within the designated Special Redevelopment Area in Salina.
Eligibility: Projects constructed for any purpose that are located in the designated (mapped) Special Redevelopment Area (SRA). [Resolution No. 05-6230]
Application: No application is required; eligibility will be determined by City staff as part of the plan review for a building permit
Map: Special Redevelopment Area
Tax Increment Financing
Tax Increment Financing (TIF) is used to reimburse certain land acquisition, site preparation and public improvement costs for commercial development projects. TIF uses the incremental increase in real estate tax revenues and, at the governing body’s option, certain sales tax revenues, within a TIF district to reimburse the developer for eligible costs.
Eligibility: Developers/owners of proposed new projects are encouraged to determine whether the proposed new project is within an area eligible under state law for creation of a TIF district. If so, the developer/owner may apply for use of TIF funds (see application form, below) for eligible redevelopment project costs approved by the City such as land acquisition, site preparation, infrastructure, parking structures and other related costs.
Application: Economic Development Incentives - General Application