Minutes 11/25/2008 - Laserfiche WebLink

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November 25. 2008 Staff Recommends: . Adoption of proposed ordinance. Vision Principle: Thriving Neighborhoods and a Sense of Community. Next Steps Following Council Action: . Acquire necessary equipment and training to maintain the level of expertise needed as the lead Department for the Hazardous Materials Southside Tidewater Team. Motion by Mr. Whitehurst, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "ORDINANCE ACCEPTING A GRANT IN THE AMOUNT OF $30,000 FROM THE VIRGINIA DEPARTMENT OF EMERGENCY MANAGEMENT AND APPROPRIATING THE SAME AMOUNT IN THE FY 2008-2009 GRANTS FUND FOR THE HAZARDOUS MATERIALS SOUTHSIDE TIDEWATER TEAM." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 08 - 498 - Adoption of an ordinance to amend Sections 35-186, 35-187, and 35-188 and repeal Section 35-191 of the Code of the City of Portsmouth, Virginia (2006), pertaining to Tax Exemptions for Rehabilitated Property. Vision Principle: Bold New Directions. Background: . Pursuant to an amendment to the Constitution of Virginia, localities may enact a partial tax exemption on rehabilitated and replaced older structures. The purpose of the law is to stimulate investment in improving or replacing older properties without imposing any direct cost or loss of existing revenue for localities. Portsmouth has had this type of tax exemption for several years, but it has not been broad enough to spur the desired level of investment in older properties. This ordinance would expand the exemption for the purpose of stimulating additional private investment. Discussion: . The exemption will apply only to the value added by renovation or replacement of a structure, and the existing value prior to renovation or replacement will remain fully taxable. . The exemption period will be extended from five years to ten years. . The age of qualifying structures will be shortened from forty years to twenty-five years. . The exemption will be transferable with the property, and it will no longer terminate when the owner who made the renovations sells the property. . Existing renovated or replaced properties that previously qualified for an exemption will have the exemption extended for the balance of the ten-year period. . All other aspects of the present ordinance will remain unchanged. . Financial Impact: there will be no material loss of revenue. The ordinance is anticipated to stimulate additional investment in the renovation and replacement of older structures, resulting in a long-term increase in assessed values and real estate tax revenues. The amount of said additional revenues cannot be determined at this time. Recommended Action: Adoption of the ordinance is recommended. Vision Principle: Bold New Directions. Next Steps Following Council Action: . City Assessor to implement new law. . City Assessor to notify owners of present exempt properties of new law. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Drive, spoke in opposition to this item.