Council
Communication

Office of the City Manager

 

Date

May 4, 2009

 

Agenda Item No.       19

Roll Call No.              09-

Communication No.  09-263

Submitted by:  Larry Hulse, Community Development Department Director

 

 

AGENDA HEADING:

 

Approval of two (2) tax abatement applications for improvements to property located at 1001 Cherry Street and 2521Kingman Blvd.

 

 

SYNOPSIS:

 

Approval of the applications to apply prospectively as provided by Iowa Law.  The applications were filed with the City of Des Moines Prior to February 1, 2009 but were inadvertently omitted from the approval list submitted to City Council on February 23, 2009.

 

 

FISCAL IMPACT:

 

Amount:  Tax abatement upon property with a claimed value of $886,238.00.

 

·         Taxes are generated in the first year from the land value, but the improvement value will be forth coming when the $886,238.00 comes on the tax rolls after abatement ends.

 

 

ADDITIONAL INFORMATION:

 

There is only a two-year grace period in which an applicant can file for abatement without losing time from the maximum time abatement is allowed.  The applicant for 2521 Kingman Blvd. did not timely file the abatement application until this year and therefore can only receive abatement for the number of years remaining on the schedule chosen.  Therefore, this application should be approved only for the time remaining on the chosen abatement schedule.

 

The other application for 1001 Cherry Street was timely filed and should be approved for the full amount of time allowed by the chosen abatement schedule.  This application was inadvertently omitted from the applications approved by City Council on February 23, 2009.

 

 

PREVIOUS COUNCIL ACTION(S):

 

Date:   February 23, 2009

 

Roll Call Number:   09-278

 

Action:   Approving 392 Tax Abatement applications for additional value added by improvements made in 2008.  (Council Communication No.  09-124)  Moved by Hensley to adopt.  Motion carried 7-0.

 

Date:   February 23, 2009

 

Roll Call Number:   09-279

 

Action:   Approving Tax Abatement applications for additional value added by improvements completed in 2003 and 2005 for 2521 Kingman Boulevard and 1701 Gillette Street.  (Council Communication No.  09-125)  Moved by Hensley to adopt.  Motion carried 7-0.

 

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

 

 

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:

 

The tax abatement program on new improvements currently ends on December 31, 2011, unless the City Council extends the program beyond that date.  Any application received by February 1, 2012, 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, 400 Robert D. Ray Drive.  Council agendas are available to the public at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council meeting. Citizens can also request to receive meeting notices and agendas by email by calling the Clerk’s Office or sending their request via email to cityclerk@dmgov.org.