[Adopted 11-27-2012 by L.L. No. 3-2012]
By providing the tax incentive provided for in this article, the Common Council and Mayor of the City of Gloversville wish to encourage conversion of nonresidential real property to mixed-use property.
This article is made pursuant to New York State Real Property Tax Law § 485-a.
As used in this article, the following terms shall have the following meanings:
APPLICANT
Any person obligated to pay real property taxes on the property for which an exemption from real property taxes under this article is sought.
COMMERCIAL CONSTRUCTION WORK
The modernization, rehabilitation, expansion or other improvement of the portion of mixed-use property to be used for commercial purposes.
COMMERCIAL PURPOSE OR USE
The buying, selling or otherwise providing of goods or services, including hotel services, or other lawful business or commercial activities permitted in mixed-use property.
MIXED-USE PROPERTY
Property on which will exist, after completion of residential construction work or a combination of residential construction work and commercial construction work, a building or structure used for both residential and commercial purposes.
PERSON
An individual, corporation, limited-liability company, partnership, association, agency, trust, estate, foreign or domestic government or subdivision thereof, or other entity.
RESIDENTIAL CONSTRUCTION WORK
The creation, modernization, rehabilitation, expansion or other improvement of dwelling units, other than dwelling units in a hotel, in the portion of mixed-use property to be used for residential purposes.
A. 
Nonresidential real property, upon conversion to mixed-use property, shall be exempt from taxation and special ad valorem levies as set forth in section B of this section.
B. 
Calculation of exemption.
(1) 
For a period of 12 years from the approval of an application, the increase in assessed value of such property attributable to such conversion shall be exempt as provided in Subsection B(2) of this paragraph. Such exemption shall be computed with respect to the exemption base. The exemption base shall be determined for each year in which there is an increase in assessed value so attributable from that of the previous year's assessed value.
(2) 
The computation of the tax exemption shall be as follows:
(a) 
Years one through 8: 100% of exemption base.
(b) 
Year 0: 80% of exemption base.
(c) 
Year 10: 60% of exemption base.
(d) 
Year 11: 40% of exemption base.
(e) 
Year 12: 20% of exemption base.
C. 
No such exemption shall be granted unless:
(1) 
Such conversion was commenced subsequent to the date this article takes effect; and
(2) 
The cost of such conversion exceeds the sum of $10,000.
D. 
For purposes of this section, the term "conversion" shall not include ordinary maintenance and repairs.
E. 
No such exemption shall be granted concurrent with or subsequent to any other real property tax exemption granted to the same improvements to real property, except, where during the period of such previous exemption, payments in lieu of taxes or other payments were made to the City of Gloversville in an amount that would have been equal to or greater than the amount of real property taxes that would have been paid on such improvements had such property been granted an exemption pursuant to this section. In such case, an exemption shall be granted for a number of years equal to the twelve year exemption granted pursuant to this section less the number of years the property would have been previously exempt from real property taxes.
F. 
Such exemption shall be granted only upon application by the owner of such real property on a form prescribed by the City of Gloversville. Such application shall be filed with the City Assessor on or before March 1 (the appropriate taxable status for Gloversville).
G. 
If the City Assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the application and such real property shall thereafter be exempt from taxation and special ad valorem levies as in this section provided commencing with the assessment roll prepared after the taxable status date referred to in Subsection F of section. 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 exemption shown in a separate column.
If any section or subsection, paragraph, clause, phrase or portion of this article shall be judged invalid or held unconstitutional by a court of competent jurisdiction, any judgment made thereby shall not affect the validity of this article as a whole or any part thereof other than the part or provision so adjudged to be invalid or unconstitutional.
Upon ratification by the Common Council following the conclusion of a public hearing, this article shall take effect upon satisfaction of all filing requirements with the State of New York, with said article being promptly filed with the State of New York by the City Clerk upon ratification of the same by the Common Council.