26-11 Designating Resolution - Real Property Tax Abatement for Wharf Partners LLC

Home Browse Search

Tax Estimates The petitioner qualifies for six-year (6) mixed-use development real property tax abatement. • Current estimated combined annual real property taxes: $4,487 • Tax Year 2025 tax liability for the parcels. Commercial Spaces • Estimated annual taxes after the project's completion: $312,046 • Estimate for commercial spaces only. O Assumptions: Land assessed value is $294,000; Real property Improvements assessed value is $9,000,000. • Total estimated taxes during the six-year (6) abatement period: $1,872,276 • Estimated taxes being abated during the abatement period: $1,775,398 Estimated total taxes to be paid during the abatement period: $96,878 Residential Units As set forth in the Statement of Benefits Form (Form SB-1) and to be memorialized in the Memorandum of Agreement, the residential tax abatement will apply only to units owned by the petitioner, Wharf Partners LLC. Upon the sale of any residential unit to a third party, the tax abatement for that unit will terminate. For units retained by the petitioner, the abatement period shall not exceed six years. The estimates provided below are based on the assumption that ten residential units will receive the abatement and that the average abatement period for each of those units will be three years. This scenario assumes that all units except those ten will be sold before the petitioner begins to realize the benefits of the abatement. These estimates are intended to provide context regarding the scale and magnitude of potential tax savings associated with the residential components of the building covered by this abatement. • Estimated annual taxes after the project's completion: $335,300 The estimated tax liability for each residential unit is $33,530. Assumptions PER UNIT: Land assessed value is $35,000; Real property Improvements assessed value is $1,455,000. • Total estimated taxes during the abatement period: $1,006,700 O Estimated taxes being abated during the abatement period: $953,800 • Estimated total taxes to be paid during the abatement period: $52,900 The tax estimates for the residential units assume that the tax abatement will apply to each unit for a period of three years. These estimates do not include any tax liability incurred or taxes that would be paid by an owner after Wharf Partners LLC sells a unit. 2