HomeMy WebLinkAboutA005 - Council Action form dated February 22, 2000 ITEM # oZ
DATE 02/22/00
COUNCIL ACTION FORM
SUBJECT: RESOLUTION APPROVING THE URBAN REVITALIZATION PLAN FOR 325
WELCH AVENUE.
ACTION FORM SUMMARY: The City Council is being asked to approve the Urban
Revitalization Plan that staff was directed to prepare for 325 Welch Avenue.
Staff is recommending approval.
BACKGROUND:
On January 11, 2000 the City Council determined that the request for designation of an
Urban Revitalization Area for 325 Welch Avenue met the Criteria for Eligibility. The
required Condition the project meets is that it is Slum and Blighted. Under the Optional
Conditions the project meets the requirements — Brick Construction or Similar Masonry
Material and Landscaping Beyond Required.
City Council then directed staff to prepare an Urban Revitalization Plan for 325 Welch
Avenue and to set a date of public hearing for February 22, 2000 to establish the Urban
Revitalization Area.
City staff has prepared an Urban Revitalization Plan for Area 325 Welch Avenue. The
following items are included in the Urban Revitalization Plan:
The area includes 315 Welch Avenue, as the Urban Revitalization Program requires
that there be two principal structures in each Urban Revitalization Area established.
The tax abatements will only exist for 325 Welch Avenue.
The total assessed valuation of land and buildings on the properties totals:
325 Welch Avenue Land - $133,100 Improvements - $0
315 Welch Avenue Land - $240,500 Improvements - $317,900
It is expected that the value added will exceed the five- (5)% increase required in
actual value.
The owners of the properties in the district are.-
325 Welch Avenue — TAJMA L.L.C.
315 Welch Avenue — MU Association The Taxi
The zoning is R-4, which is High Density Residential
There are no enhancements to City services needed because of this project.
The project consists of an abandoned fraternity house being converted to a 9-unit,
brick apartment building at 325 Welch Avenue.
There will be no displacement of any persons and thus no relocation benefits
provided.
For further detail on the Urban Revitalization Plan for Area 325 Welch Avenue see the
attached plan.
The estimated value of the building when completed is $500,000. The land is currently
taxed at the value of$133,100, which equals $3,970.80/year in taxes. The estimated taxes
abated and collected have been calculated over a ten-year period showing the results of
the three tax abatement schedules, which could be taken by the applicant.
10-Year Period
URA Schedule Taxes Paid Taxes Abated
3-year $144,124.20 $44,749.80
5-year $144,124.20 $44,749.80
10-year $123,240.96 $65,633.04
If the project would not receive the tax abatement the estimated property taxes paid over
a 10-year period would be $188,874.00.
City staff is recommending approval of this action.
ALTERNATIVES:
1. The City Council can approve the Urban Revitalization Plan for 325 Welch Avenue.
2. The City Council can deny the Urban Revitalization Plan for 325 Welch Avenue.
3. The City Council can direct staff to revise the Urban Revitalization Plan for 325 Welch
Avenue.
MANAGER'S RECOMMENDED ACTION:
It is the recommendation of the City Manager that the City Council adopt Alternative #1.
This action will approve the Urban Revitalization Plan for Area 325 Welch Avenue and
allow for tax abatement for a redevelopment of an abandoned fraternity house into a 9-unit,
brick apartment building.
COUNCIL ACTION:
2