Manhattan holds off on assessing a 2 percent developer fee for benefit districts

The Manhattan City Commission isn’t ready to proceed with assessing a 2 percent developer fee for benefit districts.
The commission discussed the proposed fee Tuesday during a work session. Commissioners didn’t necessarily reject the premise of a fee, but they didn’t show urgency adopting it either…. This year’s retreat led to the goal of providing “options and financial considerations regarding special assessments and options to reduce risk.”

Developers can petition the city to establish a benefit district for public infrastructure. A special assessment is added to each lot’s property tax for either the developer or homeowner to pay for the city’s work.
The proposed fee would be used to establish a special reserve fund to offset delinquent property taxes in the future.
The recent tax sales of Four Winds and Lee Mill Village, two proposed developments with delinquent special assessments on unimproved property, drove city officials to propose a fee.