(a)
The
city desires to enhance economic development activity within the city’s
historic center.
(b)
The
city therefore desires to amend a policy regarding grants of performance-based
incentives to further economic development.
(Ordinance O-12-06-07-10D1 adopted 6/7/12)
(a)
General.
This policy was developed by the city to enhance
economic development within the city’s historic center - an
area the city has aptly named the “Heart of Hutto.” It
provides two types of incentives, one for new construction and one
targeting new businesses that locate in the city’s historic
area. This policy vests city staff with the ability to offer the incentives,
as expressly set forth in this policy. Chapter 380 agreements will
be utilized as the primary type of agreements between the parties
and the city. Staff has no authority to offer or execute any agreement
beyond the parameters as set forth in this policy. Requests for incentives
above the levels in this policy will have to be made directly to the
city council.
(b)
Effective date.
This policy shall become effective immediately
upon favorable action by the city council. These incentives can also
be applied to any new businesses that started in the historic area
since October 1st of 2011.
(c)
Geographical boundaries.
The incentives provided by
this policy shall only be applicable within the area of the city known
as the historical overlay district. A map of the historical overlay
district is attached as exhibit A to this policy.
(d)
Tax rebate policy.
(1)
Property tax: A reimbursement of city property taxes, in excess of
the real property value of the property at the time the property owner
requests the reimbursement as listed on the county appraisal district
rolls, on real property will be granted when the proposed rehabilitation
and/or improvement(s) of a nonresidential or mixed use, of 10,000
or less square feet, increases the value of the existing real property
by a minimum of twenty (20) percent.
(2)
The reimbursement will be calculated on the appraised value of improvements
as follows:
|
Year
|
1
|
2
|
3–5
|
|
Reimbursement
|
100%
|
100%
|
80%
|
(3)
Design fees will only be included in the abatement if a registered
architect has designed the project.
(4)
Sales tax: A reimbursement of city sales taxes on sales from any
new retail businesses, of 4,000 or less square feet located in a permanent
structure will be granted as follows:
|
Year
|
1
|
|
Reimbursement
|
100%
|
(5)
An “agreement for disclosure of confidential tax information”
must be filed with the state comptroller in order for the city to
rebate city sales taxes. Sales tax rebates can and will only occur
on businesses that generate sales tax. Sales tax rebates will generally
occur one quarter after the actual payment of the sales tax. This
is due to the processing time of sales tax information at the state
comptroller. A business participating in this policy must be in business
at the time of the rebate to be eligible to receive the rebate.
(f)
Expedited permitting.
Permits meeting all submission
requirements will be processed within five (5) working days of when
they are submitted.
(g)
Process.
Proposed businesses interested in applying
for assistance through the city’s program must file an application.
City staff may approve an agreement with the business and/or property
owner, if the business or property owner meets everything as specified
in the policy.
|
Exhibit A. City of Hutto Historic Overlay District
 |
(Ordinance O-12-06-07-10D1, ex.
A, adopted 6/7/12; Ordinance
O-16-06-16-7B adopted 6/16/16)
(a)
Eligibility.
The historic preservation property tax
freeze program is available to all residential properties designated
to be a historically contributing structure within the city’s
historic district that complete the substantial rehabilitation of
their home. A property owner must invest twenty (20) percent or more
of the value of the structure on qualifying expenses to be eligible
for the program.
(b)
Qualifying improvements.
The historic preservation property
tax freeze program qualifying expenses are: improvements that extend
the life of the building and preserve it for future generations. Examples
included, but are not limited to the following: installation of a
new roof, repairs to the foundation, or restoration of the original
wood windows.
(c)
Nonqualifying improvements.
The following improvements
that are not considered eligible, include, but are not limited to,
the following: Cosmetic changes such as new bathroom fixtures or kitchen
counters.
(d)
Application/review.
The historic preservation property
tax freeze program application is reviewed by staff prior to construction
and verified when all improvements have been completed.
(e)
Incentive.
If an eligible property owner completes all
qualifying improvements and meets all city requirements upon completion,
the program freezes the municipal property taxes at the pre-renovation
value for a period of five (5) years.
(Ordinance O-16-06-16-7C adopted 6/16/16)
(a)
Eligibility.
The downtown facade improvement grant program
is available to all properties located within the city’s historic
district, including commercial and residential, provided that the
improvements are visible from a public right-of-way.
(b)
Qualifying improvements.
Qualifying expenses eligible
for reimbursement shall include repairs and improvements to the exterior
of the building which are visible from a public-right-of-way. Qualifying
improvements may include, but are not limited to, repairs to exterior
siding or roofing, repointing brick, restoring original wood windows,
fresh paint, and historically appropriate signage.
(c)
Application review.
The downtown facade improvement
grant program application shall be reviewed by a four (4) member committee
to include: one (1) member of the historic preservation commission,
the historic preservation officer, the downtown manager, and the director
of development services. Application deadline for projects is September
1st of each year. Priority will be given to:
(d)
Reimbursement.
(1)
The facade improvement grant program is a 50/50 matching grant. Upon
satisfactory completion of the approved work, grant recipients shall
be reimbursed at a rate of fifty (50) percent of the cost of eligible
building improvements.
(3)
Qualifying improvements shall meet the following requirements upon
completion:
(A)
Prior to beginning work, the project shall be reviewed by the historic
preservation officer.
(B)
All work must comply with chapter 6 of the Unified Development Code (UDC) and the Secretary of the Interior’s Standards for Rehabilitation.
(C)
Paint colors shall be chosen from the approved list of historically
appropriate paint colors.
(D)
The applicant must provide receipts for all work.
(Ordinance O-16-08-18-8B adopted 8/8/16)
