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RESOLUTION NO._____ of 2011
RESOLUTION STATING THE CITY OF SHREVEPORT'S ENDORSEMENT OF 229 MILAM, LLC TO PARTICIPATE IN THE BENEFITS OF THE LOUISIANA RESTORATION TAX ABATEMENT PROGRAM AND TO OTHERWISE PROVIDE WITH RESPECT THERETO
BY:
WHEREAS, the Restoration Tax Abatement has been created by the Electors of the State of Louisiana as an Act 445 of 1983, and amended in Act 783 of 1984, Article VII, Part II, Section 21(H) of the Louisiana Constitution and Louisiana R.S. 47:4311-4319, to authorize the Board of Commerce and Industry, with the approval of the Governor and the local governing authority and in accordance with procedures and conditions provided by law, to enter into a contract granting property owners who propose the expansion, restoration, improvement or development of an existing structure or structures in a downtown development district, historic district, or economic development district, established in accordance with law, the right to pay ad valorem taxes based upon the assessed valuation of the property prior to the commencement of the expansion, restoration, improvement or development; and
WHEREAS, the City of Shreveport desires to promote economic activity, create and retain job opportunities, and improve the tax base throughout the City for the benefit of all citizens; and
WHEREAS, it is the desire of the City Council to foster the continued growth and development (and redevelopment) of the City to the continued prosperity and welfare of the City; and
WHEREAS, this project is located in a Downtown Development District; and
WHEREAS, this project is a commercial property;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Shreveport in due, regular, and legal session convened that the City Council hereby approves the 229 MILAM, LLC application 2001-0165 for participation in the Louisiana Restoration Tax Abatement Program.
BE IT FURTHER RESOLVED that if any provision or item of this resolution or the application thereof is held invalid, such invalidity shall not affect other provisions, items or applications of this resolution which can be given effect without the invalid provisions, items or applications and to this end the provisions of this resolution are hereby declared severable.
BE IT FURTHER RESOLVED that all resolutions or parts thereof in conflict herewith are hereby repealed.
APPROVED AS TO LEGAL FORM:
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City Attorney's Office
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FACT SHEET
(Councilman Jeff Everson - District B)
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TITLE
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DATE
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ORIGINATING DEPARTMENT
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RESOLUTION APPROVING A RESTORATION TAX ABATEMENT RENEWAL APPLICATION FOR 229 MILAM, LLC
(2001-0165)
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December 27, 2011
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DEPT. OF COMMUNITY DEVELOPMENT BUREAU OF HOUSING AND BUSINESS DEVELOPMENT
REVIEWING AGENCY
DEPT. OF COMMUNITY DEVELOPMENT BUREAU OF HOUSING AND BUSINESS DEVELOPMENT
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PURPOSE
To approve a 5 year tax abatement renewal on the ad valorem tax increase resulting from the restoration of the building.
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BACKGROUND INFORMATION
A 1983 State Constitutional Amendment provided for the Restoration Tax Abatement Program as an incentive for restoration in historic preservation, economic development, and downtown development districts. The 53,000 square feet building at 229 Milam Street was built in 1903 and has had some remodeling in 1941, 1950, 1980 & 2006. The building is located in the Downtown Development Authority District.
This tax abatement will need to be approved by the State Board of Commerce and Industry after the resolution is approved by the City Council (including public hearing).
The applicant, 229 MILAM, LLC, is proposing to renovate and remodel the former 5-story office building and utilize the first floor for commercial office space and the other levels as condominiums, primarily residential property to be sold or leased, depending on market conditions.
The total cost of the project will be $3,300,000.00. The maximum Parish-School Board taxes which will be abated will be $58,212.00 per year for the next five years. DDA ad valorem forfeitures will be $ 3,628.00 per year for the next five years.
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TIMETABLE
The abatement will become effective after introduction to the City Council on (December 27, 2011), and approval (after public hearing) on (January 24, 2012), and State Department of Commerce and Industry approval.
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SPECIAL PROCEDURAL REQUIREMENTS
Notice of the time and place of the public hearing is published at least twice in the official Journal of the City. The first publication must appear at least ten days before the date of the hearing.
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FINANCES
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COST AND REVENUE PROJECTIONS
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COST of total project $3,300,000.00*
COST of this resolution
$ 19,375.00/year*
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SOURCE OF FUNDS
CITY _________%
$ __N/A_______%
$ ____________%
NON-CITY
$ ____________%
$ ____________%
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RELATED annual operating Costs $ -0-
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INCREASE REVENUE EXPECTED/YEAR
$ 19,375.00/ year after year 2016
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1. Approve the application.
2. Disapprove the application.
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CONCLUSION
Alternative number 1 is recommended. The application conforms to the established guidelines for participation in the program.
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Department of Community Development
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