Title
Consider/Discuss Amendments to McKinney Historic Neighborhood Improvement Zone (HNIZ) program portions of City of McKinney Ordinances 98-83 and 98-84.
Summary
COUNCIL GOAL: Enhance the Quality in McKinney
(5D: Promote reinvestment activities and ordinance changes in McKinney's historic downtown that balance preservation of historic character and current market needs)
MEETING DATE: March 3, 2022
DEPARTMENT: Development Services - Planning Department
CONTACT: Paula Nasta, AIA, Planning Manager
Jennifer Arnold, Director of Planning
RECOMMENDED HPAB ACTION:
• Discuss and provide feedback to Council on the proposed changes to the HNIZ ordinance.
ITEM SUMMARY:
• The pending amendments to the HNIZ ordinance are expected to include the following:
o Increase aggregate cap to $500,000 annually
o Require properties receiving the HNIZ exemption to be owner-occupied
o Require a minimum investment of $10,000 for level 1 (100%) tax exemptions. The current minimum investments for Level 2 & 3 will not change.
o Require houses to be a minimum of 40 years old to be eligible for level 2 or level 3 exemptions. Level 1 minimum age will remain 50 years.
o Modify the exemption period from 7/15 years to a consistent 10 years
*homes with existing exemptions would not be impacted by these changes
• The pending amendment moves the Neighborhood Empowerment Zone (NEZ) program out from Section 98-84 to its own section 98-85.
o No other changes are made to the NEZ program.
BACKGROUND INFORMATION:
• In late 2021, Planning Staff presented information to the Historic Preservation Advisory Board (HPAB) and City Council regarding possible improvements to the Historic Neighborhood Improvement Zone (HNIZ).
• Based on the feedback and direction received, we anticipate presenting the draft changes and ordinance amendments to City Council for consideration and action in late February/early March.
• Pending Council action, we anticipate accepting HNIZ tax exemption applications again on March 16, 2022.
FINANCIAL SUMMARY:
• This raises the aggregate cap on foregone taxes resulting from this program to a potential $500,000.