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HomeMy WebLinkAboutMN-CC-1997-12-17 December 17, 1997 1 COMMON COUNCIL PROCEEDINGS CITY OF ITHACA, NEW YORK Special Meeting 7:30 P.M. December 17, 1997 PRESENT: Mayor Cohen Alderpersons (9) Shenk, Mackesey, Efroymson, Vaughan, Gray, Blumenthal, Thorpe, Marcham, Hanna OTHERS PRESENT: City Clerk – Conley Holcomb City Attorney – Geldenhuys City Controller – Cafferillo Director of Planning and Development – Van Cort Neighborhood and Historic Preservation Planner – Chatterton EXCUSED: Alderperson Sams PLEDGE OF ALLEGIANCE: Mayor Cohen led all present in the Pledge of Allegiance to the American flag. ADDITIONS TO OR DELETIONS FROM THE AGENDA: Alderperson Mackesey requested the addition of an Executive Session regarding a personnel item. Alderperson Marcham requested the addition of a resolution regarding the Sales and Use Tax Exemption. No Council member objected. SPECIAL ORDER OF BUSINESS: 2.1 An Ordinance to Amend Section 300-20 Entitled “Real Property Tax Exemptions for Historic Properties” By Alderperson Marcham : Seconded by Alderperson Blumenthal ORDINANCE 97-______ NOW BE IT ORDAINED AND ENACTED by the Common Council of the City of Ithaca, New York as follows: Section 1. The City of Ithaca Municipal Code, Section 300, is hereby amended by the addition of the following provisions: 300-20.A. Legislative Intent. This real property tax exemption for historic properties is being enacted in order to achieve the following goals: to increase incentives for property owners in historic districts to invest in the upkeep and rehabilitation of properties; to provide an incentive for the restoration and rehabilitation of commercial structures which qualify as landmarks in order to provide financial advantages, not available elsewhere in the county at this time, which may help to attract and retain businesses in the City of Ithaca; to assist homeowners who are interested in restoring their own properties, but may not be able to afford to do so when faced with potential increases in taxation as the result of alterations which would qualify December 17, 1997 2 for this exemption; to provide financial incentives for investment in low income residential neighborhoods which may contain landmarked buildings or districts designated within the area; and to provide a concrete benefit to offset the perceived financial disadvantage of owning historically or architecturally significant properties which are subject to the regulations of the city’s Local Landmarks Ordinance. The City of Ithaca real property tax exemption is intended to apply to alterations or rehabilitations of historic property as authorized pursuant to section 96-a and 119-aa through dd of the General Municipal Law and section 444-a of the Real Property Tax Law and all other powers granted to the City of Ithaca to provide such exemptions. This ordinance is intended to create a real property tax exemption that preserves or increases the historic character of real property located within the City of Ithaca. 300-20.B Real property within the City of Ithaca altered or rehabilitated subsequent to the effective date of this ordinance shall be exempt from city real property and special ad valorem levies, subject to and in accordance with the schedule set forth in section 300-20.B.1 and conditions outlined in Section 300-20.B.2,and C. B.1 Historic property which shall be defined hereafter shall be exempt from taxation to the extent of any increase in value attributable to such alteration or rehabilitation pursuant to the following schedule: Year of exemption Percentage of Exemption 1 100% 2 100% 3 100% 4 100% 5 100% 6 80% 7 60% 8 40% 9 20% 10 0% 300-20.B.2 No such exemption shall be granted for such alterations or rehabilitation unless all of the following criteria are met: (a) Such property must be historic which shall mean that the property has been designated as a landmark or is a property that is located in and contributes to the character of a designated historic district, created by a local law which was passed pursuant to section 96-a or 119- d.d of the general municipal law; and (b) Alteration or rehabilitation of exteriors and public interiors (to the extent that public interiors are regulated by the local preservation law) of historic property must meet guidelines and review standards established in the local preservation law; and December 17, 1997 3 (c) Alterations and rehabilitation of exteriors and public interiors (to the extent that public interiors are regulated by the local preservation law) of historic property are approved by the City’s Landmarks Preservation Commission prior to commencement of work; and (d) Alteration or rehabilitation must be for the purpose of historic preservation. For purposes of qualifying for a real property tax exemption pursuant to this ordinance, alterations and rehabilitation shall be deemed to be for the purpose of historic preservation if: (i) only exterior work is involved; or (ii) interior work involves the portion of the building that has been designated as a public interior under the local preservation law, to the extent that public interiors are regulated under the local preservation law; or (iii) At least 20% of the total cost of the project is directly attributable to exterior work and/or work that enhances the structural stability or structural integrity of the property; provided, however, that interior work for the purpose of converting property from a one or two family dwelling to a multiple dwelling as defined in the City Code of the City of Ithaca shall not qualify for the exemption; or (iv) the project returns to use a building which has not been used for a permissible purpose under applicable zoning ordinances for a continuous period of at least two years; and (e) Alterations or rehabilitation must be commenced subsequent to the effective date of this local law. C. This exemption shall be granted only by application of the owner or owners of such historic real property on a form prescribed by the State Equalization and Assessment Board. The application shall be filed with the County Assessor, who is the assessor for the City of Ithaca, on or before the appropriate taxable status date covering City real property. D. Such exemptions shall be granted where the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section. The assessor shall approve such application and such property shall thereafter be exempt from taxation and special ad valorem levies for City real property taxation as provided in the schedule established in section 300-20.B.1 of this law commencing with the assessment roll prepared on the basis of the taxable status date referred to in subdivision 300-20.C of this article. The assessed value of any exemption granted pursuant to this section shall be entered by the assessor on the assessment roll with the taxable property, with the amount of the exemptions shown in a separate column. E. This ordinance shall take effect immediately and shall apply to assessment rolls completed on or after such effective date. December 17, 1997 4 Mary Tomlan, Chair, Ithaca Landmarks Preservation Commission, explained the amendments to the ordinance that were recommended by the Commission. Extensive discussion followed on the floor regarding the intentions of the City and the ordinance as it relates to the interiors of historic properties. Amending Resolution By Alderperson Hanna : Seconded by Alderperson Efroymson RESOLVED, That the last clause of the first paragraph in Section 300-20.A Legislative Intent, be amended to read as follows: “and to provide a concrete benefit for improving or restoring historically or architecturally significant properties which are subject to the regulations of the City’s Local Landmarks Ordinance.” Ayes (6) Hanna, Efroymson, Gray, Mackesey, Marcham, Shenk Nays (3) Vaughan, Blumenthal, Thorpe Carried Amending Resolution By Alderperson Hanna : Seconded by Alderperson Efroymson RESOLVED, That Sections 300-20B.2 9(b),(c), and (d)ii be deleted from the ordinance. Ayes (5) Gray, Hanna, Mackesey, Blumenthal, Efroymson Nays (4) Vaughan, Shenk, Marcham, Thorpe The amendment failed due to lack of majority. Failed Main Motion as Amended A vote on the Main Motion as Amended resulted as follows: Carried Unanimously 2.2 Ithaca Traffic Signal Upgrade Grant Approval By Alderperson Blumenthal: Seconded by Alderperson Vaughan WHEREAS, a project for the Ithaca Traffic Signal Upgrade, P.I.N. 375258 (the Project) is eligible for funding under Title 23 U.S. Code, as amended, that calls for the apportionment of the costs such program to be borne at the ratio of 80% Federal funds and 20% non-federal funds, and WHEREAS, the City of Ithaca desires to advance the Project by making a commitment of 100% of the non-federal share of the costs of Scoping, Design (Phases I-VI) and ROW Incidentals; now, therefore be it RESOLVED, That Common Council hereby approves the above-subject project; and be it further RESOLVED, That Common Council hereby authorizes the City of Ithaca to pay in the first instance 100% of the federal and non-federal share of the cost of scoping, design (Phases I-VI) and ROW incidental work for the Project or portions thereof; and be it further December 17, 1997 5 RESOLVED, That the sum of $130,000 is hereby appropriated from the General Fund (or appropriated pursuant to in-kind services) and made available to cover the cost of participation in the above phase of the Project; and be it further RESOLVED, That in the event the full federal and non-federal share costs of the project exceeds the amount appropriated above, Common Council of the City of Ithaca shall convene as soon as possible to appropriate said excess amount immediately upon the notification by the NYSDOT thereof, and be it further RESOLVED, That the Mayor of the City of Ithaca of the County of Tompkins be and is hereby authorized to execute all necessary Agreements, certifications or reimbursement request for Federal Aid and/or Marchiselli Aid on behalf of the City of Ithaca with the New York State Department of Transportation in connection with the advancement or approval of the Project and providing for the administration of the Project and the municipality’s first instance funding of project costs and permanent funding of the local share of federal-aid and state-aid eligible Project costs and all Project costs within appropriations therefore that are not so eligible, and be it further RESOLVED, That a certified copy of this resolution be filed with the New York State Commissioner of Transportation by attaching it to any necessary Agreement in connection with the Project, and be it further RESOLVED, That this resolution shall take effect immediately. Discussion followed on the floor regarding the impact that traffic light synchronization would have on the rates of speed driven within the City. A vote on the resolution resulted as follows: Carried Unanimously 2.3 One-Week Sales and Use Tax Clothing and Footwear Exemption By Alderperson Shenk : Seconded by Alderperson Mackesey Be it enacted by Common Council as follows: Section one. The local legislative body of this jurisdiction hereby expresses its intent that receipts from sales of and consideration given or contracted to be given for purchases of clothing and footwear exempt from state sales and compensating use taxes pursuant to paragraph 30 of subdivision (a) of section 1115 of the tax law during the period commencing January 17, 1998, and ending January 23, 1998, should also be exempt from sales and compensating use taxes imposed in this jurisdiction. Section two. This resolution shall take effect immediately and shall apply to sales made and uses occurring during such period, although made or occurring under a prior contract. December 17, 1997 6 Extensive discussion followed on the floor regarding the benefits and losses associated with the sales and use tax exemption. City Controller Cafferillo reported that the initial estimate of lost sales tax revenue is approximately $9,000. A vote on the resolution resulted as follows: Ayes (8) Gray, Shenk, Thorpe, Hanna, Vaughan Efroymson, Blumenthal, Mackesey Nays (1) Marcham Carried January Sales Tax Holiday By Alderperson Marcham : Seconded by Alderperson Efroymson WHEREAS, Governor Pataki, Assembly Speaker Silver and Senate Leader Bruno abruptly announced a January 17-23, 1998 “sales tax holiday” for certain clothing purchases at a December 10 press conference, with no official notice to municipalities, and WHEREAS, state bureaucrats gave us and other municipalities only until December 29, 1997 – meaning 11 business days, at the height of the holiday season to enact a resolution, and WHEREAS, cities and counties are being required to act before this “tax holiday” is authorized by vote of the State Legislature, which amounts to a subversion of the legislative process by state leaders, and WHEREAS, state leaders are well aware of their move’s popularity with consumers but have failed to consider the damaging impact these “tax holidays” have on many New York localities, which are finding it increasingly difficult to cope with losses in revenues, now be it RESOLVED, That the Common Council of the City of Ithaca, New York, protests the short notice given municipalities and the bypass of the Legislature in scheduling this January 1998 “sales tax holiday” and urges state legislators to condemn the procedure, and be it further RESOLVED, That this Common Council demands that Governor Pataki and the Legislature take a comprehensive look at the overall fairness of state tax structures and the varying effects of sales tax reductions on localities before the clothing exemption becomes permanent in December 1999. Carried Unanimously Bicycle Advisory Council Bumper Stickers This item was withdrawn from the agenda as donations were received for the purchase of bumper stickers from area businesses. EXECUTIVE SESSION: By Alderperson Mackesey : Seconded by Alderperson Shenk RESOLVED, That Common Council adjourn into Executive Session to discuss a personnel item. Carried Unanimously December 17, 1997 7 RECONVENE: Common Council reconvened into regular session with no formal action being taken. Resolution By Alderperson Thorpe : Seconded by Alderperson Gray RESOLVED, That Common Council create an ad-hoc committee consisting of Alderpersons Mackesey, Vaughan, Shenk, and Thorpe (alternate) to review a grievance submitted by a City employee. Carried Unanimously ADJOURNMENT: On a motion the meeting was adjourned at 9:10 P.M. Julie Conley Holcomb, CMC Alan J. Cohen, City Clerk Mayor