CC MEETING: February 4, 2020
DATE: January 27, 2020
TO: Erin Rinehart, City Manager
FROM: Cory Heiple, Environmental Services Director
Title
Consider A Resolution Authorizing The City Manager To Enter Into A Single-Family Demolition And Rebuild Grant Agreement On An Eligible Property At 1202 Noble Avenue And Located Within A Neighborhood Empowerment Zone, In A Total Grant Amount Not To Exceed $35,999.33.
Body
BACKGROUND:
In November of 2014, City Council adopted the Demolition and Rebuild Grant Incentive program policy. The program provides reimbursement grants of up to 100% of the costs associated with the demolition of a residential structure and a single lump sum incentive payment equivalent to a ten-year abatement of the municipal ad valorem property tax for new construction value in excess of $300,000. Eligible properties must be located in a Neighborhood Empowerment Zone. This program has been marketed throughout the qualifying zones with special outreach focused on NOTICE neighborhoods.
Ms. Flores has applied for a demo/rebuild incentive to demolish an existing single-family structure at 1202 Noble Avenue and construct a new home. The property is located in a Neighborhood Empowerment Zone and meets the eligibility requirements of the incentive grant program.
FINANCIAL IMPLICATIONS:
The property is currently occupied by a vacant single-family house. The property owner desires to construct a new house on the lot, with a floor area of about 3,000 square feet. The new construction is estimated to be $596,335, with an estimated demolition cost of $13,550. The value of the existing house is $119,630. In accordance with the program policy, subtracting the value of the existing house from the new construction value and subtracting the taxable homestead value, the eligible project amount is $381,364.
The annual municipal ad valorem taxes applied to the new construction will be $2,249. Since the construction value is in excess of $300,000, the project will...
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