City economic development director urges renewal of downtown neighborhood revitalization agreement

City of Leavenworth staff asked the Leavenworth County commission to renew a 10‑year interlocal agreement for the Neighborhood Revitalization Area (NRA) program that rebates the incremental property‑tax increase from qualifying building improvements.

Penny Holler, assistant city manager and economic development director, described the NRA as a targeted tool to spur rehabilitation in the downtown and adjacent neighborhoods. She said the program uses short‑term rebates of assessed‑value increases to make costly upgrades feasible — for example, meeting building‑code, ADA and fire‑safety requirements in older structures — and that many projects in the downtown used NRA alongside historic tax credits.

Holler said the county’s share of NRA rebates totaled about $148,000 in 2024 and that the program has issued roughly $3.3 million in property‑tax rebates among city, county and school district participants over the past decade. The city estimated there are 26 active projects in the NRA now; many of the larger projects that used incentives a decade ago will reach the end of their rebate periods and return full taxable value to local taxing entities.

Commissioners asked about stacking the NRA with other incentives such as TIF or RHID, the typical rebate durations (five to 10 years depending on project size), and whether the program transfers with property sales (it does; the rebate stays with the parcel through the incentive term). City staff said TIF and NRA cannot be stacked but that RHID may be compatible under certain conditions and that the city will provide additional metrics requested by the school district to support renewal consideration.

A commissioner moved to renew the interlocal agreement with the City of Leavenworth and USD 453; the motion was seconded and taken up for discussion. The transcript shows the motion and discussion; the meeting minutes should be consulted for the formal vote tally and final outcome.

What happens next: County staff and the city will continue coordination on tracking program activity and reporting outcomes annually, and the commission will consider the renewal motion and related documentation in its official record.