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Date
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February 25, 2008
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Agenda
Item No. 18 Roll
Call No. 08- Communication No. 08-094 Submitted by: Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Approval
of three hundred forty-six (346) tax abatement applications for improvements to
property completed in 2007.
SYNOPSIS:
Recommend
approval of 346 tax abatement applications with an estimated value by the
applicants of $130,640,682.48. There
were 106 applications for the construction of new single family homes, apartments,
and new businesses with an estimated value of $96,513,375.38 and 240
applications for improvements to existing structures with an estimated value of
$34,127,307.10.
FISCAL
IMPACT:
Amount: Tax
abatement upon property with a claimed value of $130,640,682.48.
Funding
Source: Taxes are generated in the first year from
the land value, but the improvement value will be forthcoming when the $130,640,682.48
comes on the tax rolls after abatement ends.
ADDITIONAL
INFORMATION:
A total of 346 tax abatement applications are being submitted at this time with an estimated value by the applicants of $130,640,682.48. There were 106 applications for the construction of new single-family homes, apartments, and new businesses with an estimated value of $96,513,375.38 and 240 applications for improvements to existing structures with an estimated value of $34,127,307.10.
A total of 133 applicants chose Schedule
1 with an estimated value of $2,656,806.10. Schedule 1 is
for qualified residential property. Applicants receive an exemption
from taxation on the actual value of improvements not to exceed
$20,000. The exemption period is ten years and the exemption amount
is 115% of the actual value added by improvements.
A total of 4 applicants chose Schedule
2 with an estimated value of $8,541,403. Schedule 2
is for all qualified real estate and will receive a partial exemption for ten
years. The exemption schedule is a declining schedule and starts
with the first year at 80% and ends in year ten at 20%.
A total of 8 applicants chose Schedule
3 with an estimated value of $18,556,673. All
qualified real estate is eligible to receive an exemption from taxation on the
actual value added by the improvements for three years. This schedule also
applies to commercial and industrial real estate that is eligible to receive an
exemption from taxation on the actual value added by the improvements for three
years. This schedule also applies to commercial and industrial property in
specific areas.
A total of 41 applicants chose Schedule
4A with an estimated value of $49,110,092. Schedule
4A is for qualified real estate in specific areas generally located
downtown and near the downtown area. The exemption period is ten
years and the exemption amount is 100% of the actual value added by
improvements. Qualified real estate assessed as residential or
assessed as commercial consisting of three or more living quarters with at
least 75% of the space used residentially is eligible to receive an exemption
from taxation and the actual value added by the improvements.
A total of 160 applicants chose Schedule
4B with an estimated value of $51,775,708.38. Schedule
4B is for qualified real estate for the remainder of the City for a period
of five years. Qualified real estate assessed as residential or
commercial and consisting of three or more living quarters with at least
75% of the space used residentially is eligible to receive an exemption from
taxation on the actual value added by improvements. The exemption
amount is 100% of the actual value added by the improvements.
In order to receive tax abatement on a
property, the applicant must increase the value of residential property at
least 5% for residential or 15% for commercial and industrial property.
Cumulative
Totals for 2007
Schedule Count Value
1 286 $5,360,236.05
2 9 $14,141,403.00
3 12 $27,649,173.00
4a 117 $73,004,443.50
4b 399 $88,220,793.43
Total 823 $208,376,038.98
Cumulative Totals for 2006
Schedule
Count Value
1 315 $15,336,930.62
2 13 $13,564,515.00
3 9 $10,533,840.00
4a 370 $60,956,657.00
4b 381 $67,910,209.67
Total 1,088 $168,302,152.29
Cumulative
Totals for 2005
Schedule
Count Value
1
377 $6,255,451.00
2 29 $25,394,060.00
3 14 $11,736,718.00
4a 124 $37,034,450.81
4b 598 $112,310,205.80
Total 1141 $192,605,885.61
Cumulative Totals for 2004
Schedule
Count Value
1 364 $7,000,000.00
2 25 $8,000,000.00
3 9 $2,000,000.00
4a 94 $61,000,000.00
4b 680 $194,000,000.00
Total 1172 $272,000,000.00
The City approved tax abatement to
stimulate growth and expansion in the City and level the playing field with
areas outside the City. Developers have identified tax abatement as
a primary reason for attracting buyers to their units. The abatement
program has also aided in upgrading deteriorating property in the city by
providing an incentive to maintain and upgrade property.
PREVIOUS
COUNCIL ACTION(S):
Date: January
28, 2008
Roll
Call Number: 08-120
Action: Approving
tax abatement applications (208) for additional value added by improvements
made during 2007. (Council
Communication No. 08-029) Moved by Kiernan to adopt. Motion Carried 7-0.
Date: December
17, 2007
Roll
Call Number: 07-2369
Action: Approving
tax abatement applications (44) for additional value added by improvements made
during 2007. (Council Communication No. 07-732) Moved by Hensley to adopt. Motion Carried 6-1.
Date: November
29, 2007
Roll
Call Number: 07-2191
Action: Approving
tax abatement applications for additional value added by improvements made
during 2007 (96 applications). (Council
Communication No. 07-674) Moved by Vlassis to adopt. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
The
tax abatement program on new improvements currently ends on December 31, 2008,
unless the City Council extends the program beyond that date. Any application received by February 1, 2009,
and approved by the City Council, will receive abatement for the number of
years applied for. It is anticipated
that there will be numerous submittals of tax abatement applications on a
yearly basis until the program ends.