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HomeMy WebLinkAbout~Master - Amending Citywide Urban Revitalization Area Plan to Include Alternate Tax Exemption Schedule and Additional Eligibility Requirements for Solar Installation with New Construction of Ownership HousingRESOLUTION NO. 24-684 RESOLUTION AMENDING CITYWIDE URBAN REVITALIZATION AREA PLAN TO INCLUDE AN ALTERNATE TAX EXEMPTION SCHEDULE AND ADDITIONAL ELIGIBILITY REQUIREMENTS FOR SOLAR INSTALLATION WITH NEW CONSTRUCTION OF OWNERSHIP HOUSING FOR THE CITY OF AMES, IOWA WHEREAS, City Council approved an Urban Revitalization Area (URA) and Plan on April 23, 2024, to incentivize the construction of new ownership housing. The URA designation applies city-wide to eligible new residential construction meeting the Plan's requirements to be "Qualified Real Estate;” and, WHEREAS, at its November 26, 2024, meeting, Council directed staff to prepare an amendment to URA Plan to include an alternative tax abatement criteria and incentive schedule for the construction of new ownership housing that also supports the City's Climate Action Plan goals for reduced carbon emissions; and, WHEREAS, Qualified Real Estate under this program will include new owner-occupied residential construction meeting current eligibility requirements, plus two additional requirements: 1) The dwelling is all-electric for heating, cooling, and appliances with no natural gas service line; and 2) Has a solar array installed that offsets at least 50% of its projected energy usage per requirements of the International Energy Conservation Code (IECC); and, WHEREAS, this will yield an estimated maximum of $5,180 of additional incentive value for a $500,000 home, for a total of $16,180 in estimated incentives. Coupled with federal tax credits offsetting 30% of the cost of a solar system and utility rebates, the additional tax abatement incentive will help consumers reduce the payback period of a solar array to an estimated 13-15 years versus 20 years without a city incentive; and, WHEREAS, the alternative tax abatement program will have the same application process and ending date as the existing program. Improvements must be initiated prior to December 31, 2027. The first application for an exemption must be filed by February 1st of the assessment year for which the exemption is first claimed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa, that amending the Citywide Urban Revitalization Area Plan to include an alternate tax exemption schedule and additional eligibility requirements for solar installation with new construction of ownership housing is hereby approved. ADOPTED THIS 17th day of December, 2024. _________________________________ ___________________________________ Renee Hall, City Clerk John A. Haila, Mayor Introduced by: Betcher Seconded by: Rollins Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin, Junck, Rollins Voting nay: None Absent: None Resolution declared adopted and signed by the Mayor this 17th day of December, 2024.