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Biloxi council narrows ad valorem exemption to allow downtown residential projects of four-plus units
Summary
On second reading the Biloxi City Council approved a change to the city—s ad valorem tax exemption rules so developers may apply for abatements for residential projects of at least four dwelling units in the downtown zone; the ordinance passed 5-2.
The Biloxi City Council on second reading approved an ordinance amending the city—s ad valorem tax exemption program to allow certain residential structures to apply for abatements if they are in the downtown zone and contain at least four dwelling units. The motion to adopt the substitute ordinance was made by Councilman Glavin and seconded by Councilman Guynes; the ordinance passed on a 5-2 vote with Councilmen Tisdale and Lawrence recorded in opposition.
City staff told the council the existing ordinance excluded residential structures from eligibility and was written shortly after Hurricane Katrina. A staff member said, "the existing ordinance said if a structure is residential, you can't even apply," describing the change as an opening for multi-unit projects in the downtown district.
Council members debated whether residential developers should be eligible for a tax abatement that previously targeted businesses and large commercial projects. Councilman Lawrence argued against extending the program to single-owner residential developers who might "make all the money and leave," saying the abatement historically was used to assist businesses that remain in the city. Staff responded that the change applies only to downtown-zone projects of at least four units and that any abatement level would still require council approval.
The substitute ordinance adds a sentence to the qualification section providing an exception to the residential prohibition if the structure meets the downtown-zone and minimum-unit threshold. Council discussion referenced past downtown housing grants and the city—s aim to encourage more residential units downtown to support commercial and institutional uses. The ordinance will take effect under the normal timelines for an adopted city ordinance following second-reading approval.
Council members voting "yes" supported using the abatement tool to spur downtown residential development; the councilmen voting "no" said the program should remain focused on businesses and not residential profit-making projects. The council instructed staff that final abatement levels continue to return to council action.
Votes at a glance: Ordinance to amend the ad valorem tax exemption program qualification for exemption — motion by Councilman Glavin; second by Councilman Guynes; outcome: approved 5-2 (No: Councilman Tisdale; Councilman Lawrence).
