The URL can be used to link to this page

Home My WebLink AboutA002 - Council Aciton form dated October 14, 2008 ITEM # 41 DATE 10/14/08 COUNCIL ACTION FORM SUBJECT: REVISIONS TO DOWNTOWN URBAN REVITALIZATION PLAN AND AREA BOUNDARY BACKGROUND: On April 24, 2001 , in conjunction with the Downtown Facade Grant program, City Council established the Downtown Urban Revitalization Area and Plan (attached). The Area boundary is the same as the boundary for the Downtown Fagade Grant program. Among the criteria for eligibility for tax abatement are the same Design Guidelines as those that apply to the Downtown Facade Grant program. Four projects have received abatement of increased property value totaling $220,000. Not all of the fagade improvements supported by the grant program result in an increase in property value. Generally, projects that replace display windows and doors that add awnings or that remove coverings over existing brick do not add assessed property value. If the City Council changes the Design Guidelines and the boundary for the grant program and wants to keep the tax abatement program consistent, it should take several steps to change the Downtown Urban Revitalization Area and Plan. The actions described below as a, b, and c under Alternative #1 are consistent with state law requirements. These requirements include published notice and mailed notice to all property owners within the existing and proposed Urban Revitalization Area. ALTERNATIVES: 1. The City Council can direct staff to: a. prepare revisions to the Downtown Urban Revitalization Plan consistent with the revisions approved by City Council for the Downtown Fagade Grant program, and b. prepare revisions to the Downtown Urban Revitalization Area boundary consistent with the revisions approved by City Council for the Downtown Fagade Grant program, and c. set a date of public hearing for November 25, 2008. 2. The City Council can decline to proceed with revisions to the Downtown Urban Revitalization Plan and Area boundary, leaving the criteria for tax abatement as they currently exist. 3. The City Council can direct staff to prepare an ordinance to terminate the Downtown Urban Revitalization Area. 4. The City Council can refer this issue back to staff for further information. MANAGER'S RECOMMENDED ACTION: It is clear that tax abatement is a substantial incentive for major fagade improvement projects. The City is already receiving property tax revenue from the increased value of projects for which the abatement schedule has ended. It makes sense to maintain consistency between the criteria and boundary for eligibility between the grant program and the tax abatement program. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1 and direct staff to: a. prepare revisions to the Downtown Urban Revitalization Plan consistent with the revisions approved by City Council for the Downtown Facade Grant program, and b. prepare revisions to the Downtown Urban Revitalization Area boundary consistent with the revisions approved by City Council for the Downtown Facade Grant program, and c. set a date of public hearing for November 25, 2008. Staff actions under this alternative will include published and mailed notice by October 24. 2 URBAN REVITALIZATION Downtown 1. Property Address: See Attachment A. 2. Legal Description: See Attachment B (Two pages, graphics and description). 3. Assessed Valuation: Land: See Attachment A. Buildings: See Attachment A. 4. Owners: Name: See Attachment A. Address: See Attachment A. 5. Zoning District and Classification: See Attachment A. 6. City Services: No enhancements are planned. 7. Applicability of Revitalization: Revitalization shall be applicable only to that subset of eligible property within the above legal description that qualifies under the Urban Revitalization Downtown Criteria Matrix. See Attachment C. 8. Duration: There is no end date. 9. Relocation: The plan does not require the displacement of any persons, and there will be no relocation benefits provided. 10. Percent Increase in Value Required: The value-added requirement is a five(5) percent increase in actual value. - 11. Federal State or Private Grant/Loan Programs for Residential Improvements: There are no grants or loans. 12. Existing; Land Use: (A)** See Attachment A. 13. Geocode: See Attachment A. 14. Tax Exemption Schedule: The exemption period is for three (3) years. All qualified real estate is eligible to receive a 100% exemption of the Actual Value added by the improvements. The overall improvement value to the property will need to be at least 105% of the current assessed value to qualify for the program. **(c-10, r-70, etc.) refer to the City Assessor's land use codes. aAd JAnG aAV SV'IDnoa 0 aAV O-90TIax aAV,I I,HN Mg w aAV NXV'ID o 0 110 �j o � x o M (D 0 O N � O `d a o � -V aV Cl and QNd2IO a " o M URBAN REVITALIZATION DOWNTOWN CRITERIA MATRIX REQUIRED Downtown District • Properties must be located within the designated Downtown Urban Revitalization Area. Utilizing the Design Guidelines for Fapade Improvements approved by Council Resolution #01-090 on March 6, 2001 • Properties must follow the Downtown Design Guidelines for facade improvements; AND • Utilizing the services of a designer approved by City staff, implement a fagade improvement project that meets 100% of the facade improvements that are called for by the Design Guidelines for Fagade Improvements. That fagade improvement project shall include one or more of the following treatments from the Design Guidelines for Fagade Improvements: • Streetscape • Upper fagades • Upper windows • Storefronts • Transoms • Display windows • Kickplates • Entrances • Signs • Awnings and canopies • New Construction If 1"floor is vacant, then the front half of the 1 r,floor is required to have a retail use. If the I'floor loor is not vacant, and has a permitted use, then it is eligible Furthermore, no residential structures are eligible. The improvements must be maintained or the lie of the tax abatement schedule appliedfor.