PRESENTER: Presenter
Caleb Chance Gasparek
Historic Preservation Officer
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SUBJECT: Title
HST21-355 Consideration of an application for tax relief at 123 S. Academy Ave within the Downtown Historic District.
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DEPARTMENT: Planning & Development Services
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COUNCIL DISTRICTS IMPACTED: District 6
BACKGROUND INFORMATION:
The applicant is a requesting tax relief for improvements made to the property at 123 S. Academy Ave.
Chapter 66-57.1 Incentives allows a property owner within a historic district to apply for tax relief for a period of 5 years, with the option to renew for an additional 5 years, if the improvements made to the property are of qualifying expenses totaling at least 10 percent of the appraised value of the property.
The appraised value of the property in 2021 was $236,450. In order to meet the 10 percent threshold, the improvements made must total at least $23,645. The total cost of improvements shown in the table below total $48,788, or 20.63 percent of the appraised value, meeting the threshold.
|
CATEGORY |
ESTIMATED AMOUNT |
|
Mechanical Systems (HVAC) |
$13,988 |
|
Plumbing |
$26,300 |
|
Electrical Wiring |
$8,500 |
|
Total |
$48,788 |
HISTORIC CONTEXT:
Refer to case file HST21-353 for a history of the property.
ISSUE:
A request for tax relief must be approved first by the Historic Landmark Commission, then by City Council. If approved, the tax relief will commence after the first of January in the tax year immediately following the year in which the work is completed.
FISCAL IMPACT:
Tax relief essentially freezes the taxable property value to what it was prior to renovation and restoration of the property for a period of 5 to 10 years.
Recommendation
RECOMMENDATION:
Staff recommends approval of the application for tax relief as the standards set forth in Chapter 66-57.1 and total more than 10 percent of the appraised property value.
ATTACHMENTS:
A. Location Map
B. Application
C. Submittal Documents
D. Sec. 66-57.1 Incentives