Buildings like these city-owned properties that are being auctioned in April could be converted into mixed-use commercial/residential spaces.
By Nancy Peckenham
The Newburgh city council is considering a proposal designed to stimulate the renovation of buildings in the city by offering a significant tax break for the work done on them. Under the proposal introduced to the council by Edward Lynch, the director of planning and development, any existing building that is converted to a mixed-use residential and commercial space could see the cost of renovations be exempted from some of its property taxes for ten years.
Lynch told the city council recently that a similar plan was adopted a decade ago that gave a tax exemption to commercial properties and helped jumpstart the restaurant row along the city’s waterfront. Lynch said that these tax exemptions started at 50 percent of the assessed value of construction costs and got smaller each year, with some businesses now paying 100 percent of their taxes.
By targeting buildings that could be converted into residences with a commercial level on the street, more middle and upper-middle people could move into the city, bringing with them more money to spend locally, Lynch argued. “Property could otherwise just sit there and nothing happens,” he said.
Council members expressed some concerns about the program. Councilwoman Christine Bello wanted to know how other city residents who are grappling with the impact of a 71 percent property tax increase this year could benefit from the program. “Why should an individual condo owner get a break?” Bello asked. “What about us?”
Council members have agreed to learn more about the tax exemption program. Councilwoman Marge Bell said she’d like to travel with other city officials to Albany to see how 17-unit condo project there benefited from an exemption from taxes by both the city and the schools.
The tax abatement program excludes 100 percent of the cost of improvements for eight years, at which time, taxes are paid in 20 percent increments for the next four years until owners pay 100% of the assessed value of the renovations.
Loading...
