HomeMy WebLinkAboutMN-CC-2008-02-13COMMON COUNCIL PROCEEDINGS
CITY OF ITHACA, NEW YORK
Special Meeting 7:30 p.m. February 13, 2008
PRESENT:
Mayor Peterson
Alderpersons (10) Coles, Dotson, Rosario, Clairborne, Tomlan, Zumoff, Schuler,
Myrick, Cogan, Korherr
OTHERS PRESENT:
City Clerk – Conley Holcomb
City Attorney – Hoffman
PLEDGE OF ALLEGIANCE:
Mayor Peterson led all present in the Pledge of Allegiance to the American Flag.
Alderperson Tomlan arrived at 7:40 p.m.
SPECIAL ORDER OF BUSINESS:
2.1 A Local Law Establishing a Partial Exemption from Real Property Taxes for
City Tax Parcel No. 25-3-1.1 (Mutual Housing Association of Tompkins County,
Phase 1).
By Alderperson Coles: Seconded by Alderperson Cogan
WHEREAS, the Mutual Housing Association of Tompkins County, Inc. (hereinafter
“MHATC” or “Owner”), a corporation organized and existing under and by virtue of New
York State law, is the owner of Tax Map Parcel No. 25-3-1.1 in the City of Ithaca,
County of Tompkins, New York (the “Property”); and
WHEREAS, MHATC was initiated in 1989 (and incorporated as an independent entity in
1998) and has been operated since then for the purpose of providing housing
independent of the speculative market, and of enabling its residents, through a
cooperative approach, to control their housing costs and to create the opportunity for
stable, long-term occupancy within a supportive community, without the requirement of
home ownership; and
WHEREAS, the Property is the site of 14 of the 30 housing units that have been
developed and are owned by MHATC, which 14 units (known as “Phase I”) were the
beneficiary of funding pursuant to Article 18 of the New York Private Housing Finance
Law (“PHFL”) and were completed on or about October 29, 1993; and
WHEREAS, as a result of such funding, and pursuant to the New York Real Property
Tax Law (“RPTL”), Section 421(e), the Property is eligible for an exemption from local
and municipal taxes (including school taxes), upon the adoption of a local law to that
effect by the legislative body of the City of Ithaca (Common Council); and
WHEREAS, the Property is eligible for such exemption for a period of up to 20 years
from the taxable status date immediately following the completion of the units (i.e.,
starting March 1, 1994, and running until March 1, 2014, at the latest); and
WHEREAS, such exemption may be for 100% of the assessed value for a maximum of
12 years (from the date of completion of the units – i.e., until March 1, 2006, in this
case), for 80% of assessed value for the next two years (until March 1, 2008), for 60%
of assessed value for the next two years (until March 1, 2010), for 40% of assessed
value for the next two years (until 2012) and for 20% of assessed value for the final two
years of eligibility; and
WHEREAS, the Common Council has determined that the continued availability and
affordability of the housing provided by MHATC is beneficial to and in the best interests
of the public and the City; and
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February 13, 2008
WHEREAS, as a means of assisting MHATC in accomplishing its objectives, the Owner
has requested from the City, and the Common Council desires to extend to the Owner,
a partial tax exemption for the Property, for two years, effective March 1, 2008, subject
to an agreement by the Owner to direct the benefits of such exemption into the Owner’s
general revenues and to make such benefits available for the Owner’s general
operating expenses (rather than for the benefit of any particular residents or class of
residents) and to take certain steps, within the next month, to enhance the long-term
financial viability of MHATC; now therefore
Local Law No. ___ of 2008
BE IT ENACTED by the Common Council of the City of Ithaca, as follows:
SECTION 1.
Pursuant to Section 421(e) of the New York Real Property Tax Law, an exemption from
real property taxes levied by the City of Ithaca, and, to the extent applicable by law, by
other local taxing authorities, including the Ithaca City School District, is hereby granted
for the property comprised of Tax Map Parcel No. 25-3-1.1 in the City of Ithaca, upon
the following conditions:
(a) Said exemption from real property taxes (other than assessments for local
improvements) shall apply to 60% of the assessed value of the Property (including both
land and improvements), commencing on March 1, 2008 (the “Effective Date”), and
shall terminate either on the date which is two (2) years from the Effective Date or on
the date that the Property ceases to be subject to one or more provisions of Article 18 of
the PHFL pursuant to the provisions of Paragraph (c) of subdivision 6-a of section 1102
of such law or upon the breach (and failure to cure, upon notice by the City) by the
Owner of any substantive term of the Agreement-in-Lieu-of-Taxes between the parties
(see subparagraph (b), below), whichever date first occurs (and which date is
hereinafter referred to as the “Expiration Date”); and
(b) The continuation of this exemption shall be conditioned upon the agreement by
MHATC to direct the benefits of such exemption into the Owner’s general revenues and
to make such benefits available for the Owner’s general operating expenses (rather
than for the benefit of any particular residents or class of residents) and to take certain
steps, within the next month, to enhance the long-term financial viability of MHATC,
including the following:
Engage the National Development Council for assistance in a financial evaluation
and planning effort, including the critiquing and refining of MHATC’s financial
plan.
SECTION 2.
The Mayor, upon the advice of the City Attorney and City Controller and on behalf of the
City of Ithaca, is hereby authorized and requested to execute an agreement-in-lieu-of-
taxes between the City and the Owner, incorporating the terms set forth hereinabove,
and to take any and all other actions necessary to effectuate or verify the tax exemption
approved herein.
SECTION 3. Effective Date and Operative Date.
This law shall take effect immediately upon filing with the Secretary of State of the State of
New York.
City Attorney Hoffman explained that Common Council is authorized by State Law to take
this action, but is not required to do so. This exemption is for a 20 year period that starts
on the date of construction which began 14 years ago, leaving 6 years left. This request is
for a two year time period.
Alderperson Coles stated that Mutual Housing Association provides a valuable service by
providing low-income housing. She is glad they were willing and able to work with the
National Development Council on issues of concern to Common Council.
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February 13, 2008
Discussion followed on the floor regarding the time period for this exemption and how it will
be monitored by the Tompkins County Assessment Department and financing
requirements.
Mayor Peterson explained that a companion resolution may be brought forward in the
future to address financial sustainability issues.
Alderperson Clairborne stated that he supports this item but will abstain from the vote as
he has a relative living in the housing development.
A Vote on the Local Law Resulted as follows:
Ayes (9) Coles, Dotson, Rosario, Tomlan, Zumoff, Myrick, Schuler, Cogan
Korherr
Nays (0)
Abstentions (1) Clairborne
Carried
4. ADJOURNMENT:
On a motion the meeting adjourned at 7:50 p.m.
______________________________ _______________________________
Julie Conley Holcomb, CMC Carolyn K. Peterson,
City Clerk Mayor