Title
Approval of a Resolution Granting Special Tax Valuation for the Olympia Heritage Site at 208 Percival St NW
Recommended Action
Committee Recommendation:
The Heritage Commission recommends approving the resolution granting special property tax valuation status for the historic property at 208 Percival St NW.
City Manager Recommendation:
Move to approve the resolution granting special property tax valuation status for the historic property at 208 Percival St NW.
Report
Issue:
Whether to approve the application for property tax revaluation based on the historic property rehabilitation costs.
Staff Contact:
Brittany Gillia, Historic Preservation Officer, Community Planning & Development, 360.753.8427
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City of Olympia participates in the Washington State Special Tax Valuation program. The program provides owners of designated historic buildings with the opportunity to apply for a property tax revaluation following the completion of approved rehabilitation work. The purpose is to incentivize historic preservation by offsetting the costs to maintain and upgrade older buildings. To qualify for special valuation, the qualified rehabilitation expenses must be equal to or greater than 25 percent of the value of the building (not the land value).
As outlined in OMC 3.60 Special Property Tax Valuation the Olympia Heritage Commission (OHC) performs a full review of each application and its related expenses. The OHC then makes a recommendation to City Council for approval or denial.
The application must be reviewed or denied by the City Council before December 31, 2024. If approved, the City enters into a ten-year agreement with the property owner to ensure no additional modifications are made without written consent by the City.
The Thurston County Assessor completes the final processing of the special valuation. Beginning in the following year (2025) the property tax is reassessed (to include the new improvements) and the Total Qualified Expenditures are subtracted from the newly assessed value for a period of ten years.
208 Percival St NW
On October 23, 2024, the Olympia Heritage Commission passed a unanimous motion to recommend approval of the application for Special Valuation at 208 Percival St NW. The Heritage Commission recommendation is based on the following:
1. The property is listed on the Olympia Heritage Register as of March 27, 2023.
2. The rehabilitation work was completed within the requisite 24 months prior to application.
3. The rehabilitation work and related expenses were reviewed by the Heritage Review Committee on October 14, 2024. The committee recommended approval to the full Heritage Commission.
4. The assessed value of the structure prior to rehabilitation work is $386,700.00. Total Qualitied Expenditure would have to meet or exceed a value of $96,675.00 to meet the 25 percent threshold.
5. Staff conducted a review of all receipts and found the Total Qualified Expenditures is $118,956.76 and exceeds the 25 percent value threshold.
The attached Certificate of Approval will be submitted to the Thurston County Assessor.
Climate Analysis:
As the Special Tax Valuation encourages repair of historic material as much as possible, not only does that reduce the introduction of new waste to landfills, it also offers property owners more affordable opportunities they may not have otherwise considered.
Equity Analysis:
The Olympia Heritage Commission is dedicated to improving the education and outreach of the Heritage Register and Special Tax Valuation opportunities to underrepresented communities. Every project is an opportunity for education and outreach.
Neighborhood/Community Interests (if known):
There are no specific known community interests or concerns reagreing this Special Tax Valuation.
Financial Impact:
Approving the application will result in no direct financial impact to City budgets. Staff time for processing Special Valuation applications is included in the operating budget.
Options:
1. Move to approve the resolution granting special valuation for the historic property at 208 Percival St NW.
2. Seek additional information for review and further consideration
3. Move to deny the resolution due to findings of inconsistency with program requirements.
Attachments:
Resolution
Agreement
Certificate of Approval
Link to DAHP Special Tax Valuation Program Webpage
Link to OMC 3.60 Special Property Tax Valuation