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Date
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March 8,
2010
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Agenda
Item No. 17 Roll
Call No. 10- Communication No.
10-115 Submitted by:
Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Approval
of 4 tax abatement applications for improvements to properties completed in 2009.
SYNOPSIS:
Recommend
approval of 4 tax abatement applications with an estimated value by the
applicants of $643,500. There were 4
applications for the construction of new single family homes, apartments, and
new businesses with an estimated value of $643,500.
FISCAL
IMPACT:
Amount: Tax abatement upon property with
a claimed value of $643,500.
Funding Source:
Taxes will only be
generated from the land value while tax abatement is in effect. Taxes on the $643,500 improvement value will
be forth coming when the improvement value comes on the tax rolls after
abatement ends.
ADDITIONAL
INFORMATION:
A total of 4 tax abatement applications are being submitted at this time with an estimated value by the applicants of $643,500. There were 4 applications for the construction of new single-family homes, apartments, and new businesses with an estimated value of $643,500.
All 4 applicants chose Schedule 4B with an estimated value of $643,500. 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 or 15% for commercial and industrial property.
Cumulative Totals for 2009
Schedule Count
& Value
1 176 $3,110,329.13
2 4 $4,630,000.00
3 9 $38,093,332.00
4a 79 $38,736,057.34
4b 208 $62,281,823.65
Total 476 $146,851,541.12
Cumulative Totals for 2008
Schedule Count
& Value
1 292 $5,586,021.11
2 15 $53,772,109.00
3 17 $30,608,592.00
4a 237 $48,499,058.26
4b 294 $59,686,387.81
Total 855 $198,152,168.18
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
22, 2010
Roll
Call Number: 10-262
Action: Approving tax abatement applications for
the additional value added by improvements completed during 2009 (141
applications). (Council Communication
No. 10-086) Moved by Hensley to adopt.
Motion Carried 7-0.
Date: January
25, 2010
Roll
Call Number: 10-103
Action: Approving
Tax Abatement applications for additional value added by improvements completed
during 2009 (92 applications). (Council Communication
No. 10-031) Moved by Mahaffey to
adopt. Motion Carried 7-0.
Date: December
21, 2009
Roll
Call Number: 09-2266
Action: Approving
Tax Abatement Applications (69) for additional value added by improvements made
during 2009. (Council Communication
No. 09-887) Moved by Hensley 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.