Kansas City Effort Keeps Artists in Place

This story from Kansas City might interest you if your community is trying to retain artists in revitalizing areas seeing property tax increases. A pioneering program intended to prevent artists and art-related businesses in the Crossroads Arts District from being forced out by rising property values is nearing enactment. The plan, believed to be one of the more innovative in the nation, would freeze property taxes on eligible Crossroads properties for 10 years.

The proposed program has been in the works for several years and would be administered by the Planned Industrial Expansion Authority, a state-chartered local development agency. It is intended to help preserve the flavor of the Crossroads, one of the city's more eclectic and dynamic districts. The area, which sprawls between the central business district and Crown Center, has dozens of art galleries and artist studios and is a popular destination on First Fridays.

But the success of the Crossroads has become a threat to artists. Twenty years ago, when the neighborhood was relatively desolate, they could purchase buildings cheaply, pay low taxes and create art. Now developers, attracted to its improved atmosphere, are renovating buildings into condominiums, offices and retail. As a result, property values -- and taxes -- are shooting up.

Artist Jim Leedy reported three years ago his tax bill had jumped from $12,000 to $40,000 because of the rapidly rising property values. "This is important for cultural reasons and for the health of the whole community," Leedy said. "Developers are part of it, but we don't want them to forget that arts and crafts are part of this too."

Under the program, property owners must demonstrate to the PIEA board that at least 51 percent of the building is being used for art-related purposes. The owners also must agree to repair any blighted conditions associated with their property. The building would have its property tax frozen for 10 years. Should the use change, the tax abatement would end. The program also has penalties should the owner cheat.

An earlier version of the proposal that had been endorsed in January by the City Plan Commission called for the properties to receive a standard Chapter 353 tax abatement, 100 percent for 10 years followed by 50 percent for 15 years. That plan was amended, however, to the 10-year, 100 percent abatement. After 10 years, the council is expected to review the Crossroads Arts PIEA plan to determine whether it should be renewed, but the council also can terminate the program at anytime. The 10-year abatement on individual properties cannot be extended without permission of the council. Source: Kansas City Star, March 29, 2007