Revitalization Commission Agenda and Packet 2010 06 14

Home Browse Search

By continuing to run the TIP clock on the four parcels that comprise the Vitamin Cottage redevelopment, NURA would continue to collect this property tax increment. This would be rebated back to Vitamin Cottage under the terms of the existing incentive agreement. The terms of the agreement are that NURA will rebate back all incremental property taxes to Vitamin Cottage up to $250,000 or for 10 years, whichever occurs first. The first full payment to Vitamin Cottage will occur in 20 I 0, based on the 2009 property tax assessment. This payment is estimated at approximately $49,000. Staff estimates the agreement will be satisfied in five years after the 2015 payment. Additionally, the Council could elect to continue the TIF clock for the Vitamin Shoppe/Floyd's building, as redevelopment occurred here after the parcel was added to the NURA area in 2004. The Marketplace is not included in this scenario, and it is assumed that the TIF clock would continue to run for this portion of the NURA area. In the event that the City chooses to stop the TIF clock, it can be restarted, property by property, by providing notice of the relevant parcel numbers to the Adams County Assessor, which could be done as soon as redevelopment is imminent. The total current annual revenue from the 2004 NURA areas is approximately $185,000. Freezing the TIF clock for these areas, and keeping it running for the Vitamin Shoppe / Floyd's property and the Vitamin Cottage property would result in approximately $92,000 in lost annual revenue to NURA. The two properties where the 25-year clock would remain running are expected to generate approximately $92,700 annually in incremental revenue. Stopping the TlF clock would preserve future years of incremental revenue, which could be particularly important at places like the Malley Center, where future redevelopment could increase property taxes significantly. Thus, NURA would be foregoing minimal returns in the short-term for potentially large returns in the future. Additionally, stopping the TIP clock would return incremental revenues to the other taxing entities in areas where the increases have not been directly caused by redevelopment and urban renewal efforts. It is important to note that stopping the TIF clock would have no effect on the individual property owners' taxes. It only relates to the distribution of collected property tax revenues. This analysis was done parcel by parcel, accounting for tax-exempt properties such as City- owned parcels, and also accounting for areas that have been subdivided between 2004 and 2009. The data is now organized and stored such that additional analysis can occur if necessary. 11