SUBJECT: Ordinance approving Historic Site Tax Exemption for Historic or Protected Landmark property located at: 3405 Meadow Lake Ln., which meet the relevant eligibility requirements of Section 44-5 of the Code of Ordinances.
RECOMMENDATION: (Summary)
That City Council adopt ordinance approving Historic Site Tax Exemptions for Historic or Protected Landmark for the property located at: 3405 Meadow Lake Ln.., which meets the relevant eligibility requirements of Section 44-5 of the Code of Ordinances.
SPECIFIC EXPLNATION:
Section 44-5 of the Code of Ordinances provides an incentive for historic preservation in the form of a tax exemption for Historic or Protected Landmarks. Prior City Council designation of the property as a Historic or Protected Landmark is a prerequisite to granting an historic site tax exemption. The property owner must then demonstrate to the Chief Development Officer that restoration and preservation expenditures were made in an amount equal to at least 50% of appraised value of the improvements within the time frames prescribed in the Ordinance. The tax exemption amount is then calculated based on the amount spent on restoration, up to 100% of ad valorem taxes that would be owed the following year on the appraised value of improvements only (not land). The exemption is for a 15-year period, but is capped each year at the exemption amount calculated for year one.
The owner of the following Historic Landmark submitted sworn affidavits that meet the criteria set out in the Code of Ordinances. The table below shows the base value of improvement (pre-restoration), the amount of the restoration investment made by the property owner, the approximate dollar amount of the taxes that will be foregone for the first year, based on Harris County Appraisal District’s 2015 property valuation and the City’s current property tax rate, and the estimated maximum amount that would be exempt over 15 years:
|
Historic Landmark
|
Base Yr. Improvement Value (HCAD)
|
Total Restoration Expenditure
|
Estimated Yr. One Exemption
|
Max. Estimated Exemption over 15 Yr.
|
|
3405 Meadow Lake Ln.
|
$592,742
|
$1,179,810
|
$11,014
|
$165,210
|
Since the property has been designated as Historic or Protected Landmark, and meets all other criteria, it is recommended that City Council grant each of the properties the exemption from ad valorem taxation provided under Section 44-5 of the Code of Ordinances.
cc: Marta Crinejo, Agenda Director
Anna Russell, City Secretary
Donna Edmundson, City Attorney
Gary Dzierlenga, Senior Assistant City Attorney