TOTAL $11,823.00

Revitalization Grant Program

The purpose of this program is to use the tax increase that can result when a property is rehabilitated, redeveloped, or developed to provide assistance in securing the project financing and offset some of the costs associated with the rehabilitation. The program will provide an annual grant equal to 70% of the increase in City property taxes for 10 years after project completion as long as the project results in an increase in assessment and therefore an increase in property taxes. Based on the project description and current value vs. estimated post-project assessment value of land and buildings identified in the Grant Application, the property assessment is expected to increase.

The confirmed current value assessment of the subject property located at 3311 Peter Street is $53,000 (2019). The owner currently pays annual total property taxes of $948.38 (based upon 2019 tax levies). The municipal portion, to which the grant would apply, is $863.05. The Applicant’s Estimated Post-Project Value of Land and Buildings based on the cost of construction is $250,000. However, some of the proposed costs which will be incurred, although eligible for purposes of the application, may not result in a direct increase in assessment value. In other words, the grant is calculated and paid, not on the post-project value or projections made in this report, but on the actual post-development value assessment, as determined by MPAC after project completion. The MPAC Post-Redevelopment Property Value Assessment for a similar property in the vicinity (constructed in 2018) was $190,000. Given the similarity in scale and geographic area to the subject property, we project that the Estimated Post-Redevelopment Property Value Assessment for 3311 Peter Street will be approx. $190,000. The grant will however be based upon the actual tax increment once the assessment has been determined by MPAC.

For illustrative purposes, the table below identifies the annual grant equal to 70% of the increase in City property taxes for 10 years after project completion, based on the Current Value Assessment and the (projected) Estimated Post Project Assessment Value. The taxes retained by the City over the duration of the grant program is equal to a 30% increase of the tax increment. After completion of the grant program (10 years), the City will collect the full value of municipal taxes ($3,094 annually).