The estimated value of the grant represents 100% of the increase in the municipal portion of property taxes for a period of 5 years. The Downtown CIP stipulates that the grant cannot be more than the eligible costs. The estimated total tax increment grant of $131,872, plus the $50,000 from the Commercial/Mixed Use Building Facade Improvement Grant, the total grant funds equals $181,872 over 5 years. The applicant estimates $2,355,000 in investment into properties including the interior fit up for the tenant. The grant represents approximately 7.7% of the estimated investment for this development.
119 Chatham Street
| Estimate Property/Building Improvement Tax Increment Grant Calculation 119 Chatham Street West | |||
|---|---|---|---|
| Year of Grant | Pre Development Municipal Taxes (less Vacancy Rebate Allowance) | Post Development Municipal Taxes | Estimate Value of Grant |
| 1 | $ 37,732 | $ 48,836 | $ 11,104 |
| 2 | $ 37,732 | $ 48,836 | $ 11,104 |
| 3 | $ 37,732 | $ 48,836 | $ 11,104 |
| 4 | $ 37,732 | $ 48,836 | $ 11,104 |
| 5 | $ 37,732 | $ 48,836 | $ 11,104 |
| Total Grant Estimate | $ 55,518 | ||
Assumptions
| Current Property Value Assessment (2019 - Commercial) | $610,155 |
|---|---|
| Current Property Value Assessment (2019 - Residential) | $747,345 |
| Current Municipal Tax Levy (2019) | $44,396.68 |
| Estimate Post Development Property Assessment (Commercial) | $671,171 |
| Estimate Post Development Property Assessment (Residential) | $822,080 |
| Estimate Post Development Municipal Taxes (Commercial New Construction) | $22,063 |
| Estimate Post Development Municipal Taxes (Multi-Residential) | $26,773 |
| Municipal Multi-Residential Tax Rate | 0.03256788 |
| Municipal Commercial Tax Rate | 0.03287237 |
| Vacancy Rebate Allowance | $6,664 |