Title
Historic Tax Exemption Criteria (B)
This item involves a recommendation from the Community Development Committee (CDC) to the City Commission to: a) retain the current method ad valorem tax exemption for historic properties based on committee findings; and, b) remove the item from the CDC referral list;
The CDC also discussed the possibility of the City Commission discussing the following items for further discussion: 1) direct the historic preservation staff to have neighborhood meetings to discuss expanding the districts; and, 2) direct the Community Redevelopment Agency (CRA) to consider a micro TIFF program in specific areas. *ESTIMATED STAFF PRESENTATION 5 MINUTES*
Explanation
On February 19, 2014, staff presented a report which provided responses to issues raised by City Commissioners and additional background information including adopted State law and City Code concerning enabling legislation and eligible properties and data on revenue abatement related to ad valorem tax exemptions for historic structures.
The Community Development Committee discussed the report and associated presentation and voted to continue the ad valorem tax exemption program for historic structures in its current format based on the following seven findings:
1) That the preservation of mixed income, mixed use, walkable neighborhoods with irreplaceable character has value;
2) This program is the tipping point to make improvements affordable;
3) Some historic structures are improved that would not be affordable without the tax exemptions;
4) The ad valorem tax exemption for historic properties is the only incentive available in the downtown area;
5) The exemption encourages high quality design and architecture matters;
6) It is a very efficient way to provide these incentives because there are no upfront costs to the City; and,
7) Private investment spurred by the incentive begets additional private investment.
The CDC heard favorable comments from several citizens who had used the ad valorem tax reduction for historic properties.
After hearing comments, the CDC also voted to direct the historic preservation staff to have neighborhood meetings to discuss expanding the historic districts and directed the CRA to consider a micro TIFF program in specific areas that would be similar to the ad valorem tax program for historic structures.
Fiscal Note
The City would continue to have reduced ad valorem tax collections related to the incremental value of improvements on historic properties for 10 years. There would be additional staffing responsibilities necessary to conduct the studies and implement items A and B in the recommendation outlined below relative to exploring the expansion of historic districts and having the CRA consider a micro TIFF program
Recommendation
Community Development Committee to City Commission - 1) remove this item from the Community Development Committee referral list; and, 2) accept the seven findings listed in this memo;
Community Development Committee to City Commission - Recommend that the City Commission consider the following:
A) direct the historic preservation staff to have neighborhood meetings to discuss expanding the districts; and, B) direct the CRA to consider a micro TIFF program in specific areas.
Alternative Recommendation
Community Development Committee to City Commission - Not to pursue A or B or one or the other.