M&C Review


COUNCIL ACTION:  Approved on 6/20/2017 

DATE: 6/20/2017 REFERENCE NO.: G-19042 LOG NAME: 0606-03-17 VERIFY 1ST QUARTER
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Verify Completion of Rehabilitation Project for a Historic and Cultural Landmark Property Located at 1512 Hurley Avenue and Declare Said Property to be Entitled to a Historic Site Tax Exemption (COUNCIL DISTRICT 9)

RECOMMENDATION:

It is recommended that the City Council:

1. Verify completion of a rehabilitation project for a Historic and Cultural Landmark property located at 1512 Hurley Avenue; and

2. Declare that 1512 Hurley Avenue be entitled to a Historic Site Tax Exemption as set forth herein.

 
DISCUSSION:

The purpose of this Mayor and Council Communication is to verify the completion of a rehabilitation project for a Historic and Cultural Landmark (HC) property located at 1512 Hurley Avenue (Property) (current owner is Troy Evans) and declare said property to be entitled to the Historic Site Tax Exemption set forth below. Any structure that is designated as HC, or that contributes to a HC district, and the land necessary for access to and use of the structure that is substantially rehabilitated is eligible to receive the following tax incentives under Chapter 4.401 of the City Code.  Substantial rehabilitation consists of rehabilitation at a cost that equals or exceeds the greater of 30% of the assessed value of the structure prior to rehabilitation or $3,000.00.  The structure and land described above will have an assessed value for city tax valuation purposes equal to the assessed value of such structure and land for the tax year immediately prior to the commencement of rehabilitation. Any increase in the value of the structure and land in excess of the assessed value for the tax year immediately prior to commencement of the rehabilitation is exempt from city ad valorem taxes.  The term of this tax incentive is ten years, commencing on the first day of the tax year following the City Council's verification that rehabilitation project is complete.  If, during the ten-year term, the structure or the land is assessed at a lower value than the tax year immediately prior to commencement of the rehabilitation, the lower value will apply.

The Historic and Cultural Landmarks Commission (HCLC) approved an application for the partial tax exemption for the rehabilitation of this property on May 9, 2016, with the City Council approving the same on February 21, 2017 (M&C G-18951). The Property owner has since submitted all required documentation that the Property has been substantially rehabilitated, and Staff represents that the Property has been substantially rehabilitated in accordance with the applicable provisions of the City Code.  The table below shows the required expenditures necessary to substantially rehabilitate the Property and the total amount actually expended by the Property owner.  The total amount expended on the rehabilitation project exceeds the required expenditure.  The HCLC verified completion of the rehabilitation project on March 13, 2017.  Staff recommends that the City Council verify completion of the rehabilitation project for the property located at 1512 Hurley avenue because it satisfies all the requirements of the City Code.  Upon verification, staff recommends that the City Council declare the Property to be entitled to the tax incentives set forth below.  Any increase in the assessed land or improvement (structure) value set forth in the table below will be exempt from city ad valorem taxes for a period of ten years, commencing on the first day of the 2018 tax year.

Location

Taxing Year*

Land Value

Improvement (Structure) Value

Required 30% Expenditure

Total Expended

1512 Hurley Avenue

2015

$50,000

$91,900

$27,570

$107,288.27

*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation.

This property is located in COUNCIL DISTRICT 9.

This M&C does not request approval of a contract with a business entity.
 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that approval of the above recommendation will have no material effect on the Fiscal Year 2017 Budget.  While no current year impact is anticipated from this action, upon approval reduced revenues will be included in the long term forecast associated with years 2018 - 2022.

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FROM
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Submitted for City Manager's Office by:
Fernando Costa (6122)
Originating Department Head:
Randle Harwood (6101)
Additional Information Contact:
Justin Newhart (8037)

 
 
ATTACHMENTS
  0606-03-17 VERIFY 1ST QUARTER.pdf