What Happened?
Property owners in Wenatchee, Washington, are forming a local improvement district (LID) to help finance local community updates, including an estimated $900,000 in modernization strategies to the downtown area.
The Goal
The local improvement district would consist of property owners, urban planners and city engineers collaborating on various projects such as lighting updates, tree removal, landscaping, crosswalks, bike amenities and sidewalk repairs.
Property owners in the Wenatchee LID would be sourced from four blocks of the downtown area, which is already primed for a $1.8 million street overlay project. The LID wants to have both improvement initiatives take place simultaneously to limit disruption to local businesses and residents.
The $900,000 for the updates includes costs for engineering, construction, LID administration, legal services and financing demands. Once a formal presentation has been created, it will be proposed to the city council.
How It Works
Local improvement districts are a common mechanism used by property owners looking to proactively initiative repairs, rehabilitation or other advancements in the community. All LIDs must be authorized by state law and follow state regulations when assembling and funding projects.
To finance such elective improvements to specific areas of downtown Wenatchee, property owners must form an LID and owners holding at least 60 percent of property value on affected blocks must approve a petition for the projects. The proposal to the city council must be agreed upon by all parties, as well as assessment methods and payback terms. The LID members would fund the project based on street frontage footage, while the city would pay back the full costs of the effort within 20 years.
LIDs are tapped for funding special projects rather than local governments in a number of circumstances based on state laws including when:
- Direct benefit is enjoyed by local property owners after projects are complete
- Obligation to others to protect surrounding property with certain changes or upgrades
- Equal sharing of new amenities or resources to benefit all affected property owners
Other LID Projects
A local improvement district in Cape Girardeau, Missouri, recently proposed updates to the downtown area to the city council. Downtown property owners have been collaborating for three years and plan to use new sales and property taxes to fund enhancement efforts. If the city council approves the proposal, the new taxes can be put public vote.
The proposal calls for a half-cent sales tax for businesses in the district, and a tax for property owners of 0.6708 cents per $100 assessed valuation. The new taxes would generate $255,000 annually for continual improvement projects.
Similarly, the Lancaster Alliance in Pennsylvania has teamed up with the James Street Improvement District to increase public safety with organizational partnerships. The newly merged groups will combine resources and expertise to conduct:
- Legislative advocacy
- Neighborhood enhancement projects
- Economic development initiatives
By working together, the groups hope to improve the quality of life throughout Lancaster.
Advanced Planning
Gov1 has monitored other planning initiatives including a stronger focus on pedestrian safety and modernizing street designs for more economic activity.