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Discuss a new Residential Revitalization Incentive Program.
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BACKGROUND:
The availability of quality housing stock encourages the relocation of businesses, attracts new businesses, and promotes expansion of existing businesses to and within the City, all of which in turn will stimulate growth, create jobs, and increase property and sales tax revenues. In 2009, the City Council deemed residential revitalization to be a top priority. As a result, a new Residential Renaissance Program was created that consisted of a two pronged approach. One, the City actively acquiring properties in targeted areas and tearing them down for redevelopment; and two, creating a demolition/rebuild incentive program to encourage private sector redevelopment of existing one-family detached residential properties with the construction of new, higher value, one-family detached residential structures by virtue of a municipal property tax rebate equal to the difference between the valuation of original and improved structure for a period of seven (7) years.
To date this program has been effective, with the City acquiring and demolishing twenty-three (23) homes (with 22 of the lots being sold) and approving nineteen (19) demo/rebuild incentive applications. However, with the housing market booming and the City finding itself outbid on a number of potential tear down properties, there is concern that some of these properties will remain in their current state. Based on this, Council Member Froehlich has suggested revisiting our residential revitalization program.
While there may be a myriad of options, there are two potential program enhancements that will be presented. First, the recommendation from the Metro Study report suggesting a one-time incentive equal to ten (10) times the amount of increase in City sales taxes paid to the homeowner based on the pre-construction and post construction appraised value. Second, Council Member Froehlich's recommendation for th...
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