Council
Communication

Office of the City Manager
 
 

Date

February 25, 2008

 

Agenda Item No.       21

Roll Call No.              08-

Communication No.  08-096

Submitted by:  Larry Hulse, Community Development Director

 

 

AGENDA HEADING: 

 

Approving tax abatement application for eight (8) years for improvements completed in 2004 for property located at 1010 Maury Street.  

 

 

SYNOPSIS:

 

Recommend approval of one tax abatement application for improvements to property located at 1010 Maury Street; it is recommended that approval be granted for eight years, rather than ten, because the application was not filed in a timely manner. The applicant indicates on the application that the improvements were completed in January 2004, but the application was not filed until January 2008.  Because this application for tax abatement was not timely filed within the required two year grace period allowed by the statute, the applicant is only eligible for eight years of abatement.

 

The application will be treated as timely-filed for the next round of tax abatements; the applicant will receive eight years of the remaining term of abatement, commencing with the taxes paid in fiscal year 2009/10.

 

 

FISCAL IMPACT:

 

Amount:  $40,000 in forthcoming taxable value.

 

Funding Source:  Taxes will be generated in the first year from the land value.  The improvement value will be forthcoming when the $40,000 comes on the tax rolls after abatement ends.

 

 

ADDITIONAL INFORMATION:

 

The applicant chose Schedule 4A.  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 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.

 

 

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 19, 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 eligible and for which an application was submitted.  It is anticipated that there will be numerous submittals of tax abatement applications on a yearly basis until the program ends.