Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Historic Preservation topic
No spam. Unsubscribe anytime.
Commission earmarks $1 million toward Casa Del Sol restoration; staff to pursue tax-credit strategy
Summary
Commissioners tentatively added $1 million to the budget for Casa Del Sol historic preservation and directed staff to pursue state and federal historic tax credits to offset project costs.
The Harlingen City Commission on July 2 agreed in principle to allocate an additional $1 million from the city's hotel/tourism and 4B funds toward restoring Casa Del Sol, a locally significant historic building, while directing staff to pursue state and federal historic tax credits to reduce the city's net cost.
Why it matters: City staff described Casa Del Sol as a landmark with architectural value and said the building required immediate work (abatement and design) to stabilize the structure. Commissioners and staff discussed the estimated repair cost range and a strategy to recover a portion of costs through historic rehabilitation tax credits.
Key details - Proposed ask: Staff proposed a $3 million budget estimate to rehabilitate Casa Del Sol and asked the commission to consider a combination of hotel-occupancy-tax (HOT), 4B and possible general-fund support. At the workshop staff earmarked an additional $1 million from 4B/hot funds for historic preservation and said they would request the 4B board consider an additional $1 million.
- Tax-credit strategy: Staff reported preliminary guidance that state and federal historic rehabilitation tax credits can recover a substantial portion of qualified rehabilitation costs (staff cited possible recovery in the range of the mid-40 percent of eligible costs after consulting preservation advisers). Staff said the city would retain a consultant experienced in preparing tax-credit applications to maximize potential recovery and would return with cost estimates and a procurement plan for the consultant.
- Next steps: Staff said asbestos abatement is already underway, after which design and bidding will proceed. Commissioners directed staff to prepare procurement documents for a tax-credit consultant and to report back with refined cost estimates following design and bids.
Quotes and sourcing: Staff framed the approach as a mix of matching funds plus tax-credit recovery; commissioners emphasized prioritizing drainage but acknowledged municipal responsibilities for preserving historic assets that contribute to tourism and downtown appeal.
Ending: Commission consensus advanced the project to the next stage: staff will pursue tax-credit consulting, finish abatement, obtain design and cost estimates from RFQs/RFPs, and return with a funding plan that shows the estimated net city cost after any tax-credit sales or grants.
