Title
Consider/Discuss/Act on a Request by David Kelly for Approval of a Historic Marker Level Historic Neighborhood Improvement Zone Program Tax Exemption (Level I) for the Property Located at 801 N Church Street
Summary
COUNCIL GOAL: Enhance the Quality of Life in Downtown McKinney
MEETING DATE: October 3, 2024
DEPARTMENT: Development Services - Planning Department
CONTACT: Cassie Bumgarner, Historic Preservation Planner II
Jennifer Arnold, AICP, Director of Planning
RECOMMENDED HPAB 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 801 N Church 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 are submitting a City of McKinney Historic Marker application on October 3, 2024.
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, including:
o Complete reroofing on residence (20,051.93)
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 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 $293,962.