Local couple seeks tax break
Printed From: MiddletownUSA.com
Category: Middletown City Government
Forum Name: Economic Development
Forum Description: Local government efforts to develop the local Middletown area economy.
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=6448
Printed Date: Mar 29 2024 at 5:47am
Topic: Local couple seeks tax break
Posted By: Vivian Moon
Subject: Local couple seeks tax break
Date Posted: Mar 26 2017 at 1:48pm
Local couple seeks tax break to
redevelop Middletown
building
http://www.journal-news.com/news/local/richter/uXflDgPmOLMkhUpWJZU0UM/" rel="nofollow - Staff Writer
12:00 p.m Sunday,
March 26, 2017 http://www.journal-news.com/community/middletown" rel="nofollow -
MIDDLETOWN
A local
business couple is seeking a tax abatement to redevelop a building in downtown Middletown.
Richard and
Lydia Montgomery, who own three local small businesses in Middletown, are seeking a 12-year, 100
percent Community Reinvestment Area tax abatement for their project at 1201 Central Ave.
The Montgomerys are proposing
to redevelop the three-story building into a retail bicycle shop on the ground
level to be called Spoken Bicycles LLC and will transform the upper level into
a single family residence.
The total
investment by the Montgomerys
for the property and building improvements will be about $180,000, according to
city documents.
The CRA tax
abatement request is also within the previously negotiated agreement between
the city and the Middletown Board of Education.
“We have full
faith in downtown and that the downtown will be restored one day,” said Lydia
Montgomery.
In her
report, Assistant Economic Development Director Alexis Fitzsimmons said, “This
property is in a strategic location and would continue the expansion of the
downtown’s redevelopment that is currently gaining momentum.”
In her
report, Fitzsimmons said the Montgomerys
are local entrepreneurs, with three successful businesses: Society and Bright
Ideas Properties, both located at 1626
Central Ave., and Hinkle Electric Construction
Company.
Fitzsimmons
said the Montgomerys would like to continue
investing in downtown Middletown
and have acquired the 1201 Central
Ave. building.
Also as part
of the proposed agreement, the Montgomerys
will expected to complete construction and installation of the improvements by
Dec. 31, 2017. In addition, one full-time job must be created in the retail
store by Dec. 31, 2018.
Middletown
City Council Tuesday heard a first reading of the tax abatement agreement and
will consider approval at its April 4 meeting.
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Replies:
Posted By: What A City
Date Posted: Mar 27 2017 at 6:11am
As long as it is their money and not taxpayer's money, why not? As soon as one cent of taxpayer money is used, it changes the game.
A 12 year tax abatement seems a tad bit generous doesn't it? Aren't 10 year abatements the standard nowadays?
How long has "Assistant"Econ. Dev. Director Alexis Fitzsimmons been here? Where did she come from and what are her credentials? Didn't know the Econ. Dev Director was so busy that he had to have an assistant in this position. Is this department so overloaded that they have to load up at the top to keep up? Everyone's a dam Director of something. And how many subordinates do these "Director's" have who report to them?
Doesn't matter whether it's the public or private sector anymore, they award these so-called "Director" level jobs out like candy at Halloween time. Just put a quarter into the machine, turn the knob and out comes a Director's title in a little plastic container. Mercy.
It's their money. I hope they have success but it is the downtown area we are talking about here.
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Posted By: spiderjohn
Date Posted: Mar 27 2017 at 9:13am
nice people all the best to them! credit to anyone willing to go it with their own $$ 1 full time job by 2018? So---anyone buying property in town should get an improvement abatement based on an "eventual" business opening?
fair enough!
seems as if the Admin and insiders have quit answering ?s
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Posted By: swohio75
Date Posted: Mar 27 2017 at 9:46am
Table below appraised and assessed building value over the last several year.s
I don't believe CRA is dependent on job creation so the issue of 1 or 100 jobs is mute. |
Taxyr | Land Value | Building Value | Total Appraised Value | Land (35%) | Building (35%) | 35% Total Assessed | CAUV | 2016 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2015 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2014 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2013 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2012 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2011 | $1,510 | $13,640 | $15,150 | $530 | $4,770 | $5,300 | $0 | 2010 | $8,290 | $84,090 | $92,380 | $2,900 | $29,430 | $32,330 | $0 | 2009 | $8,290 | $84,090 | $92,380 | $2,900 | $29,430 | $32,330 | $0 | 2008 | $8,290 | $84,090 | $92,380 | $2,900 | $29,430 | $32,330 | $0 | 2007 | $7,600 | $73,460 | $81,060 | $2,660 | $25,710 | $28,370 | $0 | 2006 | $7,600 | $73,460 | $81,060 | $2,660 | $25,710 | $28,370 | $0 | |
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Posted By: Vivian Moon
Date Posted: Mar 27 2017 at 10:06am
PARID: Q6511007000025 | | | MONTGOMERY RICHARD & | 1201 CENTRAL AVE | |
Transfers (Date represents time of transfer) |
Date | Type | Sale Amount | Trans # | Seller | Buyer | 14-DEC-16 | LAND & BUILDING | $105,000.00 | 12453 | GREY HAVEN PROPERTY LLC | MONTGOMERY RICHARD & | 23-NOV-11 | LAND & BUILDING | $15,148.00 | 9303 | SOUTHWIND INVESTMENTS INC | GREY HAVEN PROPERTY LLC | 01-OCT-91 | LAND & BUILDING | $42,500.00 | | | | |
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Posted By: spiderjohn
Date Posted: Mar 27 2017 at 10:46am
Job creation ( payroll/personal tax base) should always be a factor in the former downtown area ever becoming a benefit instead of a liability. Why should businesses be taxed on improvements elsewhere, but not inside today's holy land boundaries?
Still-- how many former downtown area projects have met timelines and fulfilled obligations? Seems as if many/most are lagging/non-compliant.
The expensive black hole obsession continues and seems never-ending. No surprise or news there...
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Posted By: swohio75
Date Posted: Mar 27 2017 at 12:49pm
spiderjohn wrote:
Job creation ( payroll/personal tax base) should always be a factor in the former downtown area ever becoming a benefit instead of a liability. Why should businesses be taxed on improvements elsewhere, but not inside today's holy land boundaries?
Still-- how many former downtown area projects have met timelines and fulfilled obligations? Seems as if many/most are lagging/non-compliant.
The expensive black hole obsession continues and seems never-ending. No surprise or news there...
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While I don't have the exact boundaries and don't have time to search at the moment, I do believe the CRA boundaries extend into the residential areas surrounding downtown.
Here's some background on CRA. It's not exclusive to commercial buildings.
http://www.middletownusa.com/articles/community-reinvestment-area-program-summary " rel="nofollow - http://www.middletownusa.com/articles/community-reinvestment-area-program-summary
Middletown has a single CRA - that does't mean one or more couldn't be created in the future.
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Posted By: MattR
Date Posted: Mar 27 2017 at 12:57pm
Always straight to the point, Ms. Vivian. Well done.
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Posted By: SEEKING THE TRUTH
Date Posted: Apr 02 2017 at 11:09am
This is a better way of rewarding investors than free money
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