|
Extended Special Assessment Financing Program
January 2007
The City Council has approved offering 20-year special assessment financing - on a case-by-case basis in special situations for 1) residential developments with extraordinary development costs and 2) existing Wichita residential neighborhoods without municipal services (sewer, water, storm sewers, paving).
The purpose of this program is to keep special assessment financing from creating a financial burden for buyers who purchase homes in developments that have incurred higher than typical development costs due to extraordinary development situations.
Applications may not be submitted for review until all of the bids for the project have been received. Each application for 20-year special assessment financing must include submittal of a complete 20-Year Assessment Project Profile Application. The Profile will provide the developer's responses to the following issues:
-
Price range of properties in subdivision.
-
Estimated monthly per lot cost for the special assessment taxes calculated on both 15 and 20-year assessments.
-
Description of excessive infrastructure costs that the developer believes qualifies the project for 20-year special assessments.
The developer is required to also include the following supporting material with the application:
-
Marketing materials provided to consumers, including renderings and prices of the available house plans, and a copy of the subdivision plat.
- Two copies of a spreadsheet that breaks down the per lot costs on both 15 and 20-year assessments.
-
Calculations for 15 and 20-year assessments should be based on the most recent bond sale interest rates.
Projects in existing neighborhoods without municipal services are automatically eligible for 20-year special assessment financing, with the approval of the City Engineer.
In the case of new infill projects, the developer or his agent must submit a written request for 20-year financing at the time the infrastructure petitions are submitted. Requests should be sent to Bill Morris, Engineering Division and a copy to Cathy Gilley, Finance Department.
Download the sample letter, Re: 20-Year Special Assessment Infill Request.
For existing neighborhoods without municipal services, Engineering will prepare the petition, required notification and documentation.
Acceptable monthly range for 15-year special assessment financing: Projects within these monthly ranges will not be approved for 20-year special assessment financing:
| Price Range of Property |
Monthly Special Assessment |
| Up to $100,000 |
$90 maximum |
| $100,001 - $120,000 |
$100 maximum |
| $120,001 - $150,000 |
$125 maximum |
| $150,001 - $200,000 |
$140 maximum |
| $200,001 - $300,000 |
$150 maximum |
| $300,001 - $450,000 |
$165 maximum |
| $450,001 - $600,000 |
$180 maximum |
| $600,001 - and up |
$200 maximum |
Development cost drivers that may affect the project include:
- Sewer extensions
- Sewer lift stations
- Erosion controls around ponds and lakes
- Dams and weirs
- City sidewalks
- Collector streets
- Drainage improvements and mass grading
- Bridges
- Accel and Decel lanes
- Signalization costs
- NPDES compliance costs
- Sealing of retention ponds
- Engineering costs
- Paving of roads to entrance of subdivisions
Cost drivers (unless required by platting) that will not typically be considered to qualify a project for 20-year special assessment financing:
- Soil testing
- Water wells
- Landscaping
- Mailboxes
- Temporary access roads
- Temporary utility costs
- Entry monuments and fencing (inclusive of walls)
- Lighting of walking paths
- Pools
- Park and play areas
- Clubhouses
- Art and statuary
- Grass (sod)
- Flagpoles
After the receipt of the Project Profile and other documentation, the committee will evaluate the application and invite the developer to discuss his application with the committee. After that discussion occurs, the committee will recommend approval or denial of the application to the City Council.
The City Council has appointed a committee consisting of City Council members, developers, and City staff to review and approve the applications for 20 year special assessment financing for new developments. The committee will meet regularly to review the applications that have been received and recommend approval or denial of each application. If conflicts of interest arise for any member of the committee in the review of an application, another representative from the member's affiliate will be appointed to serve on the review committee for the particular application.
For further information and submittal of completed applications, contact:
Terry Cassady, Development Assistance Director City Manager's Office 455 N. Main Wichita, KS 67202
: 268-4371
: 268-4519
: TCassady@wichita.gov
Back to Top
|