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Date
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February 23,
2009
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Agenda
Item No. 19 Roll
Call No. 09- Communication No.
09-124 Submitted by:
Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Approval of 392 tax abatement
applications for improvements to property completed in 2008.
SYNOPSIS:
Recommend
approval of 392 tax abatement applications with an estimated value by the
applicants of $127,538,234.64. There
were 127 applications for the construction of new single family homes,
apartments, and new businesses with an estimated value of $94,998,384 and 265
applications for improvements to existing structures with an estimated value of
$32,539,850.64.
FISCAL
IMPACT:
Amount: N/A
Funding Source:
N/A
Taxes
will only be generated from the land value while abatement is in effect. Taxes on the $127,538,234.64 improvement
value will be forth coming when the improvement value comes on the tax rolls
after abatement ends.
ADDITIONAL
INFORMATION:
A total of 392 tax abatement applications are being submitted at this time with an estimated value of $127,538,234.64. There were 127 applications for the construction of new single-family homes, apartments, and new businesses with an estimated value of $94,998,384 and 265 applications for improvements to existing structures with an estimated value of $32,539,850.64.
A total of 122 applicants chose Schedule 1 with an estimated value of
$2,431,735.64. Schedule 1 is for
qualified residential property. Applicants receive an exemption from
the 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 12 applicants chose Schedule 2 with an estimated value of
$53,249,109. 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 10 applicants chose Schedule 3 with an estimated value of
$21,756,185. 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 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 153 applicants chose Schedule 4A with an estimated value of
$21,978,631 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 95 applicants chose Schedule 4B with an estimated value of
$28,122,574 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 2008
Schedule Count
& Value
1 290 $5,554,421.11
2 15 $53,772,109.00
3 17 $30,608,592.00
4a 236 $48,439,058.26
4b 290 $59,218,387.81
Total 848 $197,592,568.18
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 1,141 $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 1,172 $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:
February 9, 2009
Roll
Call Number: 09-179
Action:
Approving 183 Tax Abatement applications
for the additional value added by improvements made during 2008. (Council
Communication No. 09-052) Moved by Vlassis to adopt.
Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE