City Council Minutes 2022 08 16 - Laserfiche WebLink

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City Council Meeting Minutes August 16, 2022 Page 5of9 Mayor Stolzmann stated it appears there is consensus on a grant program including the ownership rules, the sunset date, granting based on the size of the original home, and that the applicant certify their insurance company is not covering the cost. Councilmember Leh stated it will be important people know the rebate is taxable if we go the grant route; a credit would be better if we can figure that out so it is not taxable. He also noted the budget will need to be balanced and if we have to backfill for the grant we will have to make cuts elsewhere. He added the good will of this program is important and we need to do what we can to get people back into the community. Councilmember Dickinson stated he wants to come up with a good number for the basis of the square footage costs; he would prefer a credit to a grant so people don't have to pay taxes on it. He would like Council to consider a flat rate that can be tied to the square footage of the new home. Councilmember Most stated she would like consideration of a fixed amount grant program to anyone who lost a home whether they are rebuilding or not. She asked staff if it is possible to do a credit and not a taxable grant. Acting City Manager Davis stated staff is looking into options and working with counsel to see if a credit can be administered at the point of permit rather than a taxable grant. Public Comments Peter Grossenbacher, Louisville, stated they lost their home in December, he supports a credit if possible as a grant might affect people's ability to qualify for other support. He stated many people are still on the fence about rebuilding and trying to see if they can afford it, so every bit helps. He doesn't support the 180 per square foot cost limit. Tawyna Samaroo, Louisville, agreed the 180 per square foot limit is arbitrary. She urged a rebate or credit of all the costs. She urged Council to take their time and create a good program. She noted it costs more per square foot to build a smaller home. Louis Delaware, Louisville, urged Council to get accurate build costs. He noted some people are buying items in advance due to supply chain issues and that should be considered. He urged a credit it if can be done to solve the tax issue. Frost Yarnell, Louisville, urged finding something less arbitrary than the 180 per square foot number; possibly a number based on actual cost. She noted the actual price gap on the rebuild will impact how families apply for other funds. Nan Boultbee, Louisville, stated the City is getting a use tax windfall regardless of this program as anyone who buys a lot and builds will pay the use tax. Based on that the City should not be keeping any use tax from those rebuilding.