Title
Consider/Discuss/Act on a Request by Daniel Stampfel for a Historic Marker Level Historic Neighborhood Improvement Zone Program Tax Exemption for the Property at 109 S. College Street.
Summary
COUNCIL GOAL: Enhance the Quality of Life in Downtown McKinney
MEETING DATE: April 6, 2023
DEPARTMENT: Planning Department - Development Services
CONTACT: Cassie Bumgarner, Historic Preservation Planner
Paula Jarrett Nasta, AIA, Planning Manager
RECOMMENDED CITY COUNCIL ACTION:
• Staff recommends approval of the request.
ITEM SUMMARY:
• The applicant requests approval of a Historic Marker Level HNIZ Program tax exemption for the property located at 109 S College Street.
• To be eligible for a tax exemption incentive under the HNIZ Program, residential properties must meet the minimum eligibility requirements of the program, along with specific criteria for the requested incentive level.
• Staff has reviewed the request and has found that it meets the minimum eligibility requirements of the HNIZ Program for a Historic Marker Level exemption.
• Specifically, the criteria for a Historic Marker Level incentive are as follows:
o The property has received a historic marker designation pursuant to the Historic Mark Program requirements outlined in Chapter 98 of the City’s Code of Ordinances.
§ The property owners were approved as City of McKinney Historic Marker on August 4, 2022 (HP2022-0067).
o A minimum investment of $10,000 in building improvements for the property has been demonstrated within at least the previous 3 years from the date of the incentive request.
§ Within the last three years, the owners have completed rehabilitation efforts to the structure that include the following work:
- Front porch refurbishment December 2022: $8,148.50 for flashing, framing, replacement of deck board due to wood rot, and painted
- Siding repair October 2022-February 2023: $1,476.66 for repairing large gaps and cracks in siding that were allowing outside elements into the interior of the home
- Plumbing repair February 2021: $565.00 for replacement of two burst pipes in the crawl space.
BACKGROUND INFORMATION:
• The Historic Neighborhood Improvement Zone (HNIZ) Program was established in 2008 for the purpose of preserving the city’s unique and historic neighborhoods while encouraging property owners to maintain and/or rehabilitate residential properties and structures.
• The HNIZ Program includes a three-tiered incentive structure whereby residential properties that meet specified criteria are eligible to receive ad valorem tax exemptions on city taxes for a designated period of time.
• To be eligible for an HNIZ Program incentive, the following minimum general requirements apply:
o The property shall be located within the HNIZ Program area.
o The property shall be owner-occupied and shall maintain a homestead exemption from the Collin Central Appraisal District for the life of the incentive period.
o Verified, eligible improvements shall have received all necessary permits and approvals, including COAs.
o The structure, accessory structures, grounds, property elements and building elements with their materials and finishes have been maintained in good repair and in operable condition.
o There are no pending code violations.
o The total ad valorem taxes owed to the city must be current and paid on time.
FINANCIAL SUMMARY:
• A Historic Marker Level incentive carries a 100% exemption from city ad valorem taxes for a period of ten years.
• In order to limit potential budgetary concerns, the HNIZ Program has an annual aggregate cap of $500,000 for the total amount of city ad valorem taxes that can be exempted in any budget year.
• Per Collin County Tax Assessor, ad valorem taxes for this property in 2022 were approximately $3,271.02