M&C Review


COUNCIL ACTION:  Approved on 4/17/2018 

DATE: 4/17/2018 REFERENCE NO.: G-19269 LOG NAME: 06PARTIAL HSTE - 1ST QUARTER 2018
CODE: G TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT:   Approve Applications for Partial Approval of the Historic Site Tax Exemption for 3 Chase Court, 2315 Mistletoe Avenue, 1424 S. Lake Street, 2200 Marigold Avenue, 2401 N. Main Street, 1200 Clara Street, 1411 S. Lake Street, 2243 Harrison Avenue, 1725 S. Adams Street, and 1831 Fairmount Avenue (COUNCIL DISTRICTS 2 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 3 Chase Court, 2315 Mistletoe Avenue, 1424 S. Lake Street, 2200 Marigold Avenue, 2401 N. Main Street, 1200 Clara Street, 1411 S. Lake Street, 2243 Harrison Avenue, 1725 S. Adams Street, and 1831 Fairmount 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

3 Chase Court

HC

9

Paul and Janna Randall

2315 Mistletoe Avenue

HC

9

Mary Anna Hudak

1424 S. Lake Street

HC

9

Gene Smith

2200 Marigold Avenue

HC

9

Brad Roberts

2401 N. Main Street

HC

2

Jeffrey Smith

1200 Clara Street

HC

9

Sabrina and Steve Gebhardt

1411 S. Lake Street

HC

9

Jordan Warnement and Jose Salazar

2243 Harrison Avenue

HC

9

The Susi Living Trust

1725 S. Adams Street

HC

9

Tarrant Properties, Inc.

1831 Fairmount Avenue

HC

9

Stanley Tucker and Michael McDermott

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

Homestead
Exemption

Base-Year
Taxable
Value

Proposed
Expenditure

HCLC
Review

3 Chase Court

2016

  $87,500.00

$390,230.00

$117,069.00

Yes

$382,184.00

$163,500.00

1/8/2018

2315 Mistletoe Ave.

2016

$187,500.00

$248,650.00

  $74,595.00

Yes

$348,920.00

  $200,000.00

1/8/2018

1424 S. Lake St.

2016

  $50,000.00

  $82,707.00

  $24,812.00

Yes

$106,166.00

     $59,000.00

1/8/2018

2200 Marigold Ave.

2016

  $28,000.00

$175,305.00

  $52,591.00

No

$203,305.00

     $52,600.00

1/8/2018

2401 N. Main St.

2016

  $54,360.00

$383,810.00

$115,143.00

No

$438,170.00

$7,000,000.00

1/8/2018

1200 Clara St.

2016

$150,000.00

$194,960.00

  $58,488.00

No

$344,960.00

   $200,000.00

1/8/2018

1411 S. Lake St.

2016

  $50,000.00

  $10,000.00

    $3,000.00

No

  $60,000.00

   $121,000.00

1/8/2018

2243 Harrison Ave.

2016

$162,500.00

  $47,500.00

  $14,250.00

No

$210,000.00

     $70,000.00

1/8/2018

1725 S. Adams St.

2017

  $50,000.00

$107,560.00

  $32,268.00

Yes

$126,048.00

     $40,000.00

3/12/2018

1831 Fairmount Ave.

2017

  $93,750.00

$192,884.00

  $57,865.00

No

$286,634.00

  $150,000.00

3/12/2018

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

These properties are located in COUNCIL DISTRICTS 2 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 $641,070.00 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:
Jay Chapa (5804)
Originating Department Head:
Randle Harwood (6101)
Additional Information Contact:
Justin Newhart (8037)

 
 
ATTACHMENTS
  2200 Marigold Avenue.pdf
  2401 N Main Street.pdf
  3 Chase Court.pdf
  Fairmount HSTE-Partial.pdf
  Mistletoe Heights HSTE-Partial.pdf