2.0. HRSR 03-10-1998 - Laserfiche WebLink

Home Browse Search

time schedule and fees associated with processing an application for assistance. • The availability of funding will shape the program. It is inevitable that funding and design decisions will be made concur- rently. It is likely that an allocation of existing funds will be needed to start the program. The amount of available funds will shape decisions about the design of the loan program. At the same time, the nature of the loan and grant program will influence the amount of funding need- ed. The end result will reflect a balance between funds and perceived ability to influence development in the Downtown. Tax abatement may offer a more attractive alternative to tax increment financ- Evaluate the use of ing for the rehabilitation of smaller buildings. Tax increment financing creates tax abatement revenue only on the taxable value in excess of value in existence at the time of District creation. Rehabilitation may not add significant value. Timing is another issue. The mechanics of the property tax system may create a two year lag between improvements and the receipt of tax increment revenues. Tax abatement addresses both of these issues. It is possible to abate the entire tax bill, not just the incremental value from rehabilitation. The abatement takes effect sooner -- with the next available tax year. Issues to consider in planning for use of tax abatement in the Downtown area include: • Coordinate with School District and County. Each political subdivision must separately abate its share of property taxes. At an early stage in the planning process, it would be important to meet with the School District and County to determine their interest in participating in an abatement program for the Downtown and if so, how to step up a process for considering projects. • Coordinate with other local efforts. The use of tax abatement should be part of an overall economic incen- tive package. Since abatements are granted by the City Council, the EDA operates loan and grants and the HRA administers the TIF dis- tricts, coordination of local efforts will be important to making best use of financial resources. • Target properties. Key redevelopment parcels in the Downtown are located within a TIF district. Tax abatement cannot be granted to property in a TIF district. Therefore, some consideration should be given to the properties that could receive greater benefit from abatement than from tax increment. Target parcels might include existing buildings requiring facade and interior renovation. A New Bridge Revftalwng Montkeffo's Downtown and Rlverfront - Page 4:23