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Item No. 14 TO: City Council Rose Beverly, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Re -adoption of guidelines and criteria for residential tax abatement program building property DATE: February 24, 2025 BACKGROUND: On October 14, 2013, the City Council passed Ordinance No. 2013-036 creating Reinvestment Zone No. 2013-1 for residential tax abatements. This reinvestment zone included all areas inside Council districts 1-5. At the same time, Council adopted Resolution No. 2013-23, which adopted guidelines and criteria for such residential tax abatements. On February 9, 2015, Council passed Ordinance No. 2015-002 amending Reinvestment Zone 2013-1 to expand it to include all Council districts in the city and designated the new reinvestment zone as 2015-1. On April 22, 2019, Council approved Resolution No. 2019-013 readopting the guidelines and criteria for residential tax abatements. Council reauthorized Reinvestment Zone No. 2015-002, renaming it as Reinvestment Zone No. 2020-1, and reauthorized it again on January 27, 2025 as Reinvestment Zone No. 2025-1. STATUS OF ISSUE: To be eligible to participate in a residential tax abatement program, the city must adopt guidelines and criterial every two years. The current guidelines and criteria expire in April of this year. The guidelines apply to single family homes and cover new construction and residential improvements in a minimum amount of 20% of an existing home's appraised value. The abatements are for 5 years, and are de-escalating, from 100% to 40% over the 5 years. BUDGET: N/A OPTIONS: 1. Approve the attached resolution. 2. Direct staff to make changes to the existing guidelines and criteria and bring back to council at a future meeting. RECOMMENDATION: Conduct a public hearing and approve the resolution readopting criteria and guidelines for residential tax abatements.