Council freezes new redevelopment plans as stricter blight guidelines debated

Springfield City Council has implemented a temporary freeze on new redevelopment plans for blighted areas.

City leaders are considering stricter guidelines on blight, a designation that allows developers to apply for tax breaks.

A moratorium will be in place until council approves those guidelines, also called a "workable plan."

There's no time limit on the moratorium. City Director of Economic Development Sarah Kerner said she believes the new guidelines can be finalized within 60 days, though it depends on City Council's schedule.

Councilman Richard Ollis said the new workable plan should be developed "expeditiously." The moratorium was approved in an 8-0 vote Monday night, with Councilwoman Phyllis Ferguson absent.

At least one project is being affected by the delay. Development company Roza Homes has purchased property on the corner of Harrison Street and Kimbrough Avenue with the intention of razing the existing dilapidated structures and replacing them with student apartments.

One of the houses had sewer damage and flooding in the basement, said a document submitted to the city by the developer. The other caught fire earlier this year, before it was purchased by Roza Homes.

Architect Geoffrey Butler, representing Roza Homes, spoke to council Monday night. He said he supports the new blight guidelines, but he objected to the moratorium.

"You can't change the rules in the middle of the game on (the developer)," Butler said. "That's just not right."

Butler previously told the News-Leader he believes the city's changing stances on blight create an environment of uncertainty which, if left unchecked, would harm development in Springfield. 

A council committee will continue to meet to debate the specifics of the workable plan before it is sent to the full council for a vote.

The plan will likely require all applicants to show that if not for the incentive, they would not pursue development on that particular piece of property — this stipulation is known as a "but-for test." They must also show that there are current signs of blight, if developing an area that was first declared blighted years ago.

The new guidelines might place more emphasis on developments that provide additional benefits for the community, such as being environmentally friendly or generate sales tax revenue.

Read more: 

Uncertainty over future of blight 'will kill development in Springfield,' architect warns

Council approves increasingly controversial blight designation for Cherry Street property

City leaders hope blight designation will help save Kearney