| To: |
Melinda Reed, Interim City Manager |
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| From: |
Sharon Haugen, Community Development Director |
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| Subject: |
Consider a resolution granting property tax benefits for Farmers State Bank of Montana, for reconstruction of a building at 2100 N. Montana in the City of Helena, Montana |
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Present Situation:
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Farmers State Bank of Montana has purchased the property at 2100 N. Montana and is presently reconstructing a new commercial building on the property. The property was most recently the site of the Helena Industries Thrift Store. The owners of Farmers State Bank have submitted a request for tax abatement under provisions of state law for remodeling, reconstruction, or expansion of existing commercial buildings or structures (MCA 15-24-1502 et seq.). Under these provisions, applicants who add to an existing building or structure that increase its taxable value by at least 5 percent may qualify for this abatement. If approved, the property taxes abated are phased in over five years at 20 percent each year. Upon local approval of tax abatements, the Department of Revenue determines eligible improvements and applies the abatement to the property.
The current taxable market value of the property is $0 because it was owned by Helena Industries, a not for profit corporation and exempt from ad valorem property taxes.
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Background Information:
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| Farmers State Bank desires to obtain the property tax benefits for reconstruction of a building at 2100 N. Montana. |
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Proposal/Objective:
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| Farmers State Bank desires to obtain the property tax benefits for reconstruction of a building at 2100 N. Montana. |
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Advantage:
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The granting of tax abatements is one of the tools the City Commission has for encouraging economic development and redevelopment of an area. This abatement represents a redevelopment project located in one of the key corridors of the City and new construction would serve as a catalyst for other redevelopment in that area. |
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Notable Energy Impact:
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None noted |
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Disadvantage:
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The property tax benefits will result in a decrease in the total revenue realized until the property tax benefits period is complete and due to Helena School District No. 1, Lewis and Clark County, and the City of Helena. If approved by both the City and the County, the total tax exemption and reduction over ten years is approximately $520,939, $114,083 of which would be due to the City. |
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Notice of Public Hearing:
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Attached
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