Title
Discuss the Demolition/Rebuild Program.
Body
REQUESTOR:
Mayor Terry Lynne, Councilwoman Tina Bennett-Burton
BACKGROUND:
In 2009, the City Council approved a resolution to allow residents to demolish and rebuild their existing homes with cash and property tax incentives. The resolution was later amended to include builders and developers to also be eligible for the incentive. Current incentives depend on property assessed value and range from up to a $30,000 cash grant to up to seven (7) years of city property tax rebate. All applications must be reviewed and approved by the City Council.
DISCUSSION:
The current return on investment with the current program is 11.5 years based on assessed tax values. Eighty-eight percent of applicants are still the original applicant and/or homebuyer if a developer applied for the incentive. The increase assessed value to date is $82.7 million.
Options for consideration include the following or any combination thereof:
• One-time payment of up to $20,000 (10 properties for $200,000 annual budget impact)
• No cash payment, up to five-year property tax incentive (20 properties-maximum assessed value up to $1,000,000, budget impact $350,000 annually)
• No change to the existing program
DISTRICT:
Citywide
ATTACHMENT(S):
1. Demo/Rebuild Program Data Sheet
2. Presentation