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Council caucus backs first reading of five-year property tax moratorium for qualifying repairs
Summary
Council members discussed a Small Business Task Force ordinance that would let property owners freeze the city portion of property-tax assessments at pre-improvement value for up to five years for qualifying rehabilitation or redevelopment projects, with thresholds and time limits.
Rebecca Recker, a member of the Small Business Task Force, outlined an ordinance that would offer a property tax assessment moratorium to incentivize rehabilitation, repair and redevelopment of existing properties.
"This offers a property tax assessment moratorium to incentivize rehabilitation repair, redevelopment of existing properties," Recker said, adding the program would cover both residential and commercial properties and would allow owners to freeze the city portion of their property tax assessment at the pre-improvement value for a period of five years.
Under the proposal, commercial improvements must increase assessed value by more than 40 percent and residential improvements by 20 percent; commercial structures must be at least 20 years old and residential structures 25 years. Demolition-and-rebuild projects would apply to structures 25 years or older and rebuilding must begin within 12 months, the task force said. Applications must be submitted to the city administrator or a delegate within 30 days prior to starting work, the task force added, and construction must be completed within two years; an extension of up to two additional years is allowed.
Council members asked for a map showing eligible zoning districts and for a six-month review after implementation to see who applies and whether program criteria need adjustment. One councilor raised concerns that improvements could raise neighboring property values and contribute to gentrification; task force members said the package was modeled on about 10 state programs and that mandatory re-assessment by the PVA is governed by statute.
Mayor (presiding) summarized council sentiment and said there was support to move the item forward to a first reading at the February council meeting.
The caucus did not adopt the ordinance at the session; council scheduled the first reading for the full council agenda and asked staff to circulate zoning maps and clarifying application materials ahead of that meeting.
