The ordinance was proposed by
It was presented Wednesday night and referred to the council's
Removing the council from the review process was a problem for
"I am immediately skeptical of relinquishing that authority to a nameless, faceless group of administrators," Aponte said.
Solomon said the proposed ordinance sets specific and objective thresholds all developers would have to meet and would award the same kind of tax break to all.
Under his plan, any developer of a commercial or multi-family project seeking a tax treaty would have to be planning at least
The developer would have to be current on city taxes not only for the target property but any others it owned in the city. The same rule would apply to building code violations.
It would set a 15-year schedule of gradually increasing tax payments. For the first five years, property taxes on the development would be frozen. In the sixth year the property would be reappraised and the owner would pay the old tax amount plus 10 percent of what would be due under the new appraisal.
That additional share would go up by 10 percentage points a year -- the original payment plus 20 percent in year seven, plus 30 percent year eight, etc. -- until the 15th year, when the property would be taxed in full.
If a project is sold, the tax break would continue under the new owner, unless the new owner is a tax-exempt business. Then the original owner would be responsible for the full amount of taxes that would have been due without the agreement.
Tax-stabilization agreements have been a popular tool with the Taveras administration. In 2012, 12 of them were granted. And in the past month, they've been approved for the new owners of
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