Title
Consider/Discuss/Act on a Request by Mark and Connie Miserak for a Level 1 (Historic Marker) Historic Neighborhood Improvement Zone Program Tax Exemption for the Property at 406 Parker Street
Summary
COUNCIL GOAL: Enhance the Quality of Life in Downtown McKinney
MEETING DATE: August 4, 2022
DEPARTMENT: Planning Department - Development Services
CONTACT: Cassie Bumgarner, Historic Preservation Planner
Paula Jarrett Nasta, AIA, Planning Manager
RECOMMENDED BOARD ACTION:
• Staff recommends approval of the request.
ITEM SUMMARY:
• The applicant requests approval of a Level 1 (Historic Marker) HNIZ Program tax exemption for the property located at 406 Parker 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 Level 1 (Historic Marker) exemption.
• Specifically, the criteria for a Level 1 (Historic Marker) 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 received a City of McKinney Historic Marker on November 4, 2021.
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:
- Repainting exterior ($9,854.53)
- Upgrading electrical and replacing heater ($7,730)
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 Level 1 (Historic Marker) incentive carries a one-time, 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.
• Under the current program, Staff estimates that the total amount of ad valorem tax revenues being forgone is approximately $262,000.