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Council approves 10‑year pilot for 173 South Main housing, not a perpetual clause
Summary
The council modified a proposed pilot agreement for supportive housing at 173 South Main so the agreed municipal payment ($35,000) will be treated as a 10‑year pilot with a scheduled review rather than an indefinite, perpetual escalation; staff said the pilot also removes the school tax share from the municipal calculation.
The council considered a proposed pilot payment agreement for 173 South Main, a supportive‑housing project that had been proposed to pay $35,000 annually in lieu of full municipal taxation.
Staff explained that the $35,000 figure reflects the municipal share after the pilot status removes the school portion of prior tax bills (about $16,000 of the prior total), so the pilot represents an incremental municipal contribution relative to a non‑pilot status. Several councilors expressed concern about locking in a low escalation rate "in perpetuity" and the long‑term fiscal effect. In discussion the applicant’s representative (S17) confirmed the project’s charitable purpose and staff noted the pilot payment would go into the general fund.
Councilors moved, seconded and approved a motion to adopt the pilot on a 10‑year term with scheduled review rather than a perpetual 2% escalation. Council asked staff to finalize the written agreement and return it for execution with the agreed 10‑year term language.
