M&C Review


COUNCIL ACTION:  Approved on 2/13/2018 

DATE: 2/13/2018 REFERENCE NO.: G-19227 LOG NAME: 0606PARTIAL HSTE - 4TH QUARTER 2017
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Approve Applications for Partial Approval of the Historic Site Tax Exemption for 1412 S. Lake Street, 2208 Mistletoe Avenue, 2317 Carverly Drive, 1905 S. Adams Street, 1509 Fairmount Avenue, 1221 S. Clara Street, 1431 Lipscomb Street, 1501 W. Morphy Street, 1598 Sunset Terrace, 1920 Washington Avenue and 2260 5th Avenue (COUNCIL DISTRICTS 5 and 9)

RECOMMENDATION:

It is recommended that the City Council approve the applications from multiple property owners for partial approval of the Historic Site Tax Exemption for 1412 S. Lake Street, 2208 Mistletoe Avenue, 2317 Carverly Drive, 1905 S. Adams Street, 1509 Fairmount Avenue, 1221 S. Clara Street, 1431 Lipscomb Street, 1501 W. Morphy Street, 1598 Sunset Terrace, 1920 Washington Avenue and 2260 5th Avenue.

 
DISCUSSION:

The purpose of this Mayor and Council Communication is to approve the initial application for rehabilitation projects for the following Historic and Cultural Landmark (HC) properties as part of the City's historic site tax exemption program:

Location

Historic
Designation

Council
District

Owners

1412 S. Lake Street

HC

9

A.J. and Crystal Hamilton

2208 Mistletoe Avenue

HC

9

Greg and Nancy Shoup

2317 Carverly Drive

HC

5

Kenneth Haliburton

1905 S. Adams Street

HC

9

Patrick and Marina Breeland

1509 Fairmount Avenue

HC

9

Nicolas Cruz

1221 S. Clara Street

HC

9

Neyle and Ryan Froh

1431 Lipscomb Street

HC

9

Daniel Mak

1501 W. Morphy Street

HC

9

Drew and Sarah Jones

1598 Sunset Terrace

HC

9

Bell Creek Realty

1920 Washington Avenue

HC

9

Ernesto and Gloria Cantu

2260 5th Avenue

HC

9

Drew and Sarah Jones

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 are eligible to receive certain 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. If eligible, 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 will be exempt from City ad valorem taxes. The term of this tax incentive is 10 years, commencing on the first day of the tax year following the City Council's verification that the rehabilitation project is complete.

The Historic and Cultural Landmarks Commission (HCLC) approved the applications for the partial tax exemption and the certificates of appropriateness, where applicable, for the rehabilitation of these properties at public hearings (See table below).

The property owners intend to substantially rehabilitate the properties in compliance with all City Ordinances. Following substantial rehabilitation of the properties listed, tax exemption applications will be submitted to the City Council for verification of completion of the applicable project. If the City Council verifies completion of the applicable project and declares the properties to be entitled to a tax exemption, then the properties will receive the tax incentives set forth above, which will based on the assessed values of the improvements and the land necessary for access to and use of the structure set forth in the chart below.

Property
Address

Taxing
Year
Value*

Land
Value

Improvement
(Structure)
Value

Required 30 Percent
Expenditure

Proposed
Expenditure

HCLC Review

1412 S. Lake
Street

2016

$25,000.00

  $13,588.00

  $4,076.00

$30,917.00

10/11/2017

2208 Mistletoe
Avenue

2016

$180,000.00

$116,230.00

   $34,689.00

  $80,000.00

10/11/2017

2317 Carverly Drive

2016

    $2,000.00

  $32,430.00

     $9,729.00

$120,000.00

10/11/2017

1905 S. Adams
Street

2016

  $50,000.00

   $95,200.00

  $28,560.00

  $30,000.00

10/11/2017

1509 Fairmount
Avenue

2013

  $50,000.00

  $30,000.00

    $9,000.00

    $9,000.00

11/10/2014

1221 S. Clara Street

2016

$150,000.00

$144,690.00

  $43,407.00

$250,000.00

11/13/2017

1431 Lipscomb
Street

2016

$113,872.00

$428,778.00

$128,633.00

$200,000.00

11/13/2017

1501 W. Morphy
Street

2016

  $50,000.00

$184,762.00

  $55,248.00

$100,000.00

11/13/2017

1598 Sunset Terrace

2016

$150,000.00

$144,690.00

  $43,407.00

$250,000.00

11/13/2017

1920 Washington
Avenue

2016

  $37,500.00

  $27,500.00

    $8,250.00

$157,000.00

11/13/2017

2260 5th Avenue

2016

  $75,000.00

$250,000.00

  $75,000.00

$135,000.00

11/13/2017

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

These properties are located in COUNCIL DISTRICTS 5 and 9.

This M&C does not request approval of a contract with a business entity.

 
FISCAL INFORMATION/CERTIFICATION:

Upon final approval of the Historic Tax Exemption - Verification applications, the Director of Finance certifies that a loss of an estimated $109,634.00 in property tax revenue will occur over the 10 year tax abatement period.  This reduction in revenue will be incorporated into the long-term financial forecast upon the Historic Tax Exemption being officially granted.  

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

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

 
 
ATTACHMENTS
  1221 S. Clara St.pdf
  1412 S. Lake St. - 1509 Fairmount Ave. - 1905 S. Adams St.pdf
  1431 Lipscomb St 1501 W. Morphy St 1920 Washington Ave 2260 5th Ave.pdf
  1598 Sunset Terrace.pdf
  2208 Mistletoe Blvd.pdf
  2317 Carverly Dr.pdf