The purpose of this Mayor and Council Communication (M&C) is to ratify approval of the initial applications for rehabilitation projects for Historic and Cultural Landmark (HC) properties located at 2217 Fairmount Avenue and 1616 Washington Avenue; verify the completion of HC properties located at 2217 Fairmount Avenue, 1701 Fairmount Avenue, 1921 5th Avenue, 1616 Washington Avenue, 2115 Weatherbee Street, and 1145 Mistletoe Drive (collectively, Properties); and declare said Properties to be entitled to the Historic Site Tax Exemption set forth below.
Any structure that is designated as Historic and Cultural Landmark, or that contributes to a 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 percent 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 the 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) reviewed and approved the initial applications and verified completion of the rehabilitation projects for all of the Properties on the dates set forth in the table below. The initial applications for all Properties were approved by the City Council on the dates set forth below, except for 2217 Fairmount Avenue and 1616 Washington Avenue, which will be ratified by the City Council as part of this M&C.
The property owners have since submitted all required documentation that the properties have been substantially rehabilitated, and Staff represents that the properties have 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 properties and the total amount actually expended by the property owners. The total amount expended on the rehabilitation projects exceeds the required expenditure. Staff recommends that the City Council verify completion of the rehabilitation projects for the properties because they satisfy all the requirements of the City Code. Upon verification, Staff recommends that the City Council declare the properties to be entitled to the tax incentives set forth below. Any increase in the assessed land or improvement (structure) values 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 | HCLC Initial Approval | City Council Initial Approval | HCLC Verification | 2217 Fairmount Ave. | 2013 | $50,000.00 | $106,200.00 | $31,860.00 | $87,142.00 | 5/10/2017 | xxx | 7/10/2017 | 1701 Fairmount Ave. | 2013 | $37,000.00 | $ 33,600.00 | $10,080.00 | $42,538.00 | 4/11/2016 | 2/21/2017 | 8/14/2017 | 1921 5th Ave. | 2016 | $45,558.00 | $57,000.00 | $17,100.00 | $30,110.00 | 6/12/2017 | 8/1/2017 | 9/11/2017 | 1616 Washington Ave. | 2015 | $30,000.00 | $46,000.00 | $13,800.00 | $15,700.00 | 8/8/2016 | xxx | 9/11/2017 | 2115 Weatherbee St. | 2013 | $125,000.00 | $145,000.00 | $43,500.00 | $60,212.00 | 5/8/2017 | 8/1/2017 | 9/11/2017 | 1145 Mistletoe Dr. | 2016 | $150,000.00 | $80,000.00 | $24,000.00 | $148,893.00 | 5/8/2017 | 8/1/2017 | 9/11/2017 |
*The taxing year refers to the tax year immediately prior to the commencement of rehabilitation.
These properties are located in COUNCIL DISTRICT 9. This M&C does not request approval of a contract with a business entity. |
