07-28-14 Community Investment - Laserfiche WebLink

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COMMUNITY INVESTMENT JULY 28, 2014 4:04 P.M. Committee Members Present: Gavin Ferlic, Henry Davis (AB), Valerie Schey, Derek Dieter Citizen Members Present: Patrick Mullen, Austin Cabello (AB) Other Council Present: Tim Scott, Dr. Fred Ferlic, Dr. David Varner, Oliver Davis, Karen White Others Present: Scott Ford, Brock Zeeb, Marty Wolfson Agenda: 1. Bill 35 -14 Resolution River Race Townhomes 2. Update Residential Tax Abatement Proposal Gavin Ferlic, Chair of the Community Investment Committee, noted two items on the agenda. One was bill 35 -14 which would declare a site on the East Bank an economic development target area in an effort to facilitate the development of River Race Townhomes. The other was a resolution to support changes to the tax abatement statute to allow five year abatement for residential rehab of run -down homes. Starting proceedings, Gavin announced he had received a request from the petitioner to withdraw the bill and continue its consideration indefinitely. The request was honored. The second item, a proposal to allow residential rehab abatement was presented by retired Notre Dame Economics professor Marty Wolfson. He said the proposal could provide a stimulus incentive to those wanting to rehab a house as opposed to letting it ultimately be demolished. The abatement would be for 5 years reducing any incremental gain in assessed value due to the rehab by 50% over the abated period. He added there would have to be a minimum of $5,000 invested to a home having an assessed value at or less than median assessed value of houses in the city. His overall message stressed the value of creating an incentive to rehab as opposed to tear -down. Councilmember Valerie Schey expressed concern that the incentive should only apply to owner - occupied homes. Other Councilmembers also wondered about the advisability of creating incentives for land lords who might not exhibit the same concern as a homeowner. Marty Wolfson disagreed, stating the same rehab incentive should be made available to those who provide habitable rental housing. There was some discussion about the value of the incentive considering typical rehab investment likely would not add to the assessed value of a property. Marty said any incentive at all was worth encouraging rehabilitation.