Title
Approval of Special Historic Tax Valuation for 115 20th Avenue SW
Recommended Action:
Heritage Commission Recommendation:
Approve the application for 115 20th Avenue SW
City Manager Recommendation:
Move to approve the tax valuation application and all qualified rehabilitation expenditures as submitted for 115 20th Avenue SW, as reviewed and recommended by the Olympia Heritage Commission and Olympia's Historic Preservation Officer.
Report
Issue:
The City of Olympia participates in the Washington State Special Valuation program, a benefit of having a designated historic property. This year we have received one submission for the program. Following Olympia Heritage Commission review and recommendation for approval, the City Council will make a final decision on whether to approve or deny the submitted application.
Staff Contact:
Michelle Sadlier, Historic Preservation Officer, Community Planning and Development, 360.753.8031
Background and Analysis:
The current application was submitted by Daniel and Jennifer Masterson for their home at 115 20th Avenue SW.
Special Valuation Program
This program provides owners of eligible historic buildings the opportunity to apply for a property tax revaluation following the completion of approved rehabilitation work. This program incentivizes historic preservation by helping offset the costs of work to maintain and upgrade older buildings that typically result in higher property tax values. Following review and approval of expenditures, the property tax is reassessed and the total approved amount invested is subtracted from the new property value for 10 years. More information on this program can be found in Attachment 1.
While the program is administered by the Thurston County Assessor, the City of Olympia is responsible for determining if the building is eligible for the program, certifying that the rehabilitation work meets the criteria for qualified rehabilitation expenditures, and approving or denying the application. The City's role in the program is described in OMC 3.6 (Attachment 2).
The Olympia Heritage Commission (OHC) performs a full review of each application and its related expenses. The OHC then makes a recommendation to the City Council for approval or denial of the application. Once the City Council approves or denies the application, the Assessor is notified of their decision for final processing of the revaluation where approved.
Application for Special Valuation at 115 20th Avenue SW
Daniel and Jennifer Masterson's application was initially reviewed by the City's Historic Preservation Officer to determine if it meets the requirements for participation in the program. She found that the application meets preliminary requirements as follows:
· This property is a "contributing" property in the South Capitol Historic District, meeting the designation requirement;
· The approximate value of improvements is estimated at $66,000, well over the required minimum value of 25% of the dwelling's current tax valuation of $208,300.00; and
· All construction work listed in the application has been completed within the required two-year timeframe.
Following this initial review, the OHC's Heritage Review Committee conducted a site visit to review the rehabilitation work on November 24, 2014 (Attachments 3 and 4). Using the Washington State Advisory Council's Standards for the Rehabilitation and Maintenance of Historic Properties, the Committee considered all elements of the renovation work completed by the applicant. As a result of this review, the Committee passed a motion to recommend approval of all submitted expenses for Special Valuation.
The Heritage Review Committee presented their recommendation to the full OHC at its December 3, 2014 meeting. The OHC discussed and supported the Committee's recommendation, passing a motion to recommend approval of the tax valuation application and all qualified rehabilitation expenditures as submitted for 115 20th Avenue SW.
Should City Council approve the application, the City's Historic Preservation Officer will review all submitted receipts and verify the eligibility of each expense using definitions provided in WAC-254-20-030 and Internal Revenue Code Section 47(c)(2), described in Attachment 4. The final total value of the rehabilitation work will then be calculated and submitted to the Thurston County Assessor in a formal agreement.
In summary, because the Mastersons have satisfied all of the requirements for the program, the OHC recommends approval of their application for Special Valuation.
Neighborhood/Community Interests (if known):
Public interest in preserving the places that are important to Olympia's history, culture, and sense of place.
Options:
1. Approve the application.
2. Deny the application with findings of inconsistency with program requirements.
Financial Impact:
Staff time for processing Special Valuation applications is included in the base budget. Approving the application would result in no direct financial impacts to City of Olympia budgets.