17 - HISTORIC STRUCTURE PROPERTY TAX EXEMPTION

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Item No. 17 memorandum TO: John Godwin, City Manager FROM: Joey Sleeper, CBO, Historic Preservation Officer SUBJECT: HISTORIC STRUCTURE PROPERTY TAX EXEMPTION, 134- 136 -138- 140 N MAIN STREET DATE: 02/02/2015 BACKGROUND: Section 30 -50 of the Code of Ordinances provides for tax exemption for historic properties to encourage preservation. Structures which are located within a Historic District and undergo exterior rehabilitation of at least $10,000 are eligible. Once a property meets all codes and guidelines, and the owner has made proper application as outlined in Section 30 -51, the City Manager is authorized to enter into a tax exemption agreement with the owner. The City agrees to hold the taxable value at the year prior to the rehabilitation (in this case 2013 value) for up to 7 years starting the year after the rehabilitation (in this case 2015- 2021). The owner agrees to maintain the property in accordance with all city codes and guidelines during the tax exemption period. STATUS OF ISSUE: Laura & Steve Harper own the property at 134- 136- 138 -140 North Main Street, which is Lot 1 Block 11 of the City of Paris, and is located in the Downtown Historic District. During the year 2013 they obtained proper approvals and permits to renovate the exterior of the structure. The work was completed and accepted by the City in 2014. Mr. and Mrs. Harper then made application for tax exemption in November 2014 which was approved by the Historic Preservation Commission on January 14, 2015. BUDGET: The tax exemption agreement could affect tax revenues in future fiscal years, but no budget expenditures are anticipated. RECOMMENDATION: Approve the tax exemption agreement to hold the taxable value at the 2013 amount for 7 years beginning January 1, 2015 and ending December 31, 2021.