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Date
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March 24, 2008
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Agenda
Item No. 22 Roll
Call No. 08- Communication No. 08-152 Submitted by: Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Approval
of one (1) tax abatement application for improvements to property completed in
2007.
SYNOPSIS:
Recommend
approval of one (1) tax abatement application with an estimated value by the
applicant of $207,500 for a new single family dwelling unit. This application was not included on the
previous list, although it was timely filed by February 1, 2008. Staff
recommends approval of the application to apply prospectively as provided by
Iowa Law.
FISCAL
IMPACT:
Amount: Tax
abatement upon property with a claimed value of $207,500.
Funding
Source: Taxes are generated in the first year from
the land value, but the improvement value will be forthcoming when the $207,500
comes on the tax rolls after abatement ends.
ADDITIONAL
INFORMATION:
A total of one tax abatement application is being submitted at this time with an estimated value by the applicants of $207,500 for a new single family dwelling.
The applicant chose Schedule 4B
with an estimated value of $207,500. 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 property or 15% for commercial and industrial property.
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 also
has aided in upgrading deteriorating property in the city by providing an
incentive to maintain and upgrade property.
PREVIOUS
COUNCIL ACTION(S):
Date: February
25, 2008
Roll
Call: 08-298
Action: Approving
tax abatement applications (346) for additional value added by improvements
made during 2007. (Council
Communication No. 08-094)
Moved by Hensley to adopt. Motion Carried 7-0.
Date: January
28, 2008
Roll
Call: 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: 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.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
Currently,
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.
For more information on this and other agenda items,
please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office
on the second floor of City Hall,