PRESENTER: Presenter
Caleb Gasparek, Historic Preservation Officer & Assistant Planner
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SUBJECT: Title
Approval of the second and final reading of an ordinance regarding a request for rehabilitation tax credit from the property owner of 123 S. Academy Ave., located within the Downtown Historic District.
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DEPARTMENT: Planning & Development Services
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COUNCIL DISTRICTS IMPACTED: 6
BACKGROUND INFORMATION:
City Council held a public hearing on November 22, 2021 and unanimously approved the first reading of this requested tax rehabilitation ordinance (6-0-0).
The applicant is requesting tax relief for improvements made to the property at 123 S. Academy Ave., located within the Downtown Historic District.
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 in the 4th year 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. Tax relief essentially freezes the taxable value of the property to the appraised value before the improvements were made.
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 totals $48,788 or 20.63% of the appraised value, meeting the threshold.
|
CATEGORY |
ESTIMATED AMOUNT |
|
Mechanical Systems (HVAC) |
$13,988 |
|
Plumbing |
$26,300 |
|
Electrical Wiring |
$8,500 |
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Total |
$48,788 |
ISSUE:
N/A
FISCAL IMPACT:
The “tax freeze” incentive is one of several the City of New Braunfels provides to residents who maintain and improve historic properties.
Recommendation
RECOMMENDATION:
Staff recommends approval. Tax relief is one of several benefits the City of New Braunfels offers to owners of historic structures who wish to rehabilitate the structure while maintaining the historic character of their property and ensuring its longevity.
ATTACHMENTS:
A) Location Map
B) Application
C) Submittal Documents
D) Sec. 66-57.1 Incentives
E) Ordinance