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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: Aug 16 2017 at 9:32pm


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.




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.


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


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. 

1201 CENTRAL AVE

TaxyrLand ValueBuilding ValueTotal Appraised ValueLand (35%)Building (35%)35% Total AssessedCAUV
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




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)

DateTypeSale AmountTrans #SellerBuyer
14-DEC-16LAND & BUILDING$105,000.0012453GREY HAVEN PROPERTY LLCMONTGOMERY RICHARD &
23-NOV-11LAND & BUILDING$15,148.009303SOUTHWIND INVESTMENTS INCGREY HAVEN PROPERTY LLC
01-OCT-91LAND & BUILDING$42,500.00



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...



Posted By: swohio75
Date Posted: Mar 27 2017 at 12:49pm
Originally posted by spiderjohn 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...

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.  



Posted By: MattR
Date Posted: Mar 27 2017 at 12:57pm
Always straight to the point, Ms. Vivian.  Well done.


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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