On Nov. 18, 2022, City Council approved the redevelopment plan for the Grant Avenue Parkway redevelopment area, generally bounded by Olive Street to the north, Catalpa Street to the south, Campbell Avenue to the east and Douglas Avenue to the west. The goals of the plan are to provide financial assistance programs to support private economic development and neighborhood revitalization along the Grant Avenue Parkway improvement corridor and into the surrounding neighborhoods.
City of Springfield Department of Economic Vitality staff, along with planning consultants Peckham, Guyton, Alberts & Viets (PGAV) outlined the economic development and neighborhood revitalization resources along the Grant Avenue Parkway corridor.
The redevelopment plan will enable property owners and developers in the redevelopment area to request partial real property tax abatement through the Land Clearance for Redevelopment Authority (LCRA) Law (“Chapter 99”) or Urban Redevelopment Corporations Law (“Chapter 353”).
- Under the LCRA option, the taxable value of a property essentially becomes “frozen” for a 10 year period so that property owners who choose to renovate, add on or construct new on their property are protected from the increase in property tax associated with the rise in the value of their property. This program can help facilitate all qualifying redevelopment projects within the Redevelopment Area.
- Under Chapter 353, real property taxes may be abated for a period of up to 25 years. Real property taxes are abated during the first ten years, based on 100% of the increase in assessed value of land and improvements. During the remaining 15 years, real property taxes are abated based on 50% of the assessed value of land and improvements. This program can help facilitate larger redevelopment projects within the identified Redevelopment Area.
As per state statute, both tax abatement mechanisms require the preparation of a blight study and a redevelopment plan. The approval of the Redevelopment Plan and accompanying blight study will fulfill this role in either process and take two major steps out of the way, saving property owners and investors time and money.
Redevelopment area property owners or developers seeking tax abatement will still be required to go through an application process and provide certain financial information about their proposed project. The process to use the Chapter 99 incentive takes approximately 22 days, including an application step and review by the LCRA. To use Chapter 353 requires an approximate 60-day process involving conferring with City Staff, completing an application, and seeking City Council approval. Both processes require an application fee.
“Neighborhood revitalization and economic development tools are vital as we work alongside the upcoming roadway improvement construction to transform the Grant Avenue Parkway corridor,” explained Economic Vitality Director Amanda Ohlensehlen. “This redevelopment plan will coordinate with the previously established Grant Avenue Corridor Plan to help support the type of development and revitalization envisioned by the community through this project.”
For more information and to view examples of how these programs could work for residential and commercial uses, visit grantavenueparkway.com/revitalization.