Agenda Item # 5
Columbus Consolidated Government
Council Meeting
10/26/2010
Agenda Report # 570
TO: Mayor and Council
SUBJECT: Pine Meadow Estates - Enterprise Zone Employment Act
INITIATED BY: Planning Department
Recommendation: Approval is requested of a resolution for Tracy L. Sayers
Investments, LLC/Pine Meadow Estates, to receive ad valorem tax abatements only
(with the exclusion of school and general obligation debt levies) as specified
under the Enterprise Zone Employment Act. The Planning Department as well as
the Board of Tax Assessors does not recommend approval of other personal
property items as explained below.
Said project meets the minimum requirements as established in the Enterprise
Zone Employment Act.
Background: Pine Meadow Estates is located on 901 Joy Road and is partially
located within the boundaries of the Columbus Business Development Center
Enterprise Zone. The applicant is requesting to receive tax abatements on all
ad valorem taxes (with the exclusion of school and general obligation debt
levies); including real property, mobile home property and other property for
which ad valorem taxes are levied. The applicant also requests abatements of
other city fees related to the project such as electrical permits and annual
sticker fees.
The abatement is requested on the portions that are located within the
Enterprise Zone (EZ), between Ukraine Drive and I-185 (Tax Map Parcel ID #s 064
014 001 and 089 017 010). The project plans for installing 2005/2006 model
rental manufactured housing units onto up to 250 of the vacant lots with
foundations per code, access structures, skirting, and removal of axles and
tongues; resulting in an attractive permanent style structure. These
manufactured homes are nominal 14 feet by 64 feet with typically three bedrooms
and one bath and are available for rent at a fee of $450 per month. Said
manufactured housing units were acquired from the Federal Emergency Management
Agency (FEMA). The aforementioned units were assigned by FEMA for Hurricane
Katrina disaster relief. Each lot will contain a paved parking pad for two
cars and a paved activity patio next to the home for use by the residents. All
homes will be refurbished to consistent standards with certificates of
occupancy from the Columbus Consolidated Government. The remainder of the
rental lots, approximately 77, is planned for owner occupied manufactured
housing units.
Plans are being developed for renters to be able to elect to convert to a
lease-to-own arrangement, resulting in ownership of their manufactured housing
unit. It is anticipated that a total of 250 manufactured housing rental units
will be installed over a period of three years from the beginning of 2010
through the end of 2012. Infrastructure improvements are being made, including:
upgrades of water lines, landscaping, paving, estate security system, and new
electric service equipment. Amenities for residents will include estate
security with roadway lighting and staffed patrols, plus on-site management and
maintenance staff.
Project is internally funded by Tracy L. Sayers Investments, LLC, there is no
lender.
Tracy L. Sayers Investments, LLC/Pine Meadow Estates will hire and maintain
five (5) new employees, as required by the Enterprise Zone Employment Act,
prior to the tax abatement period. They also agreed to hire at least one ?low-
income and moderate-income? individual meeting the Enterprise Zone Employment
Law option.
Analysis: Tax Map Parcel ID #s 089 017 010 and 064 014 001 that belong to the
Pine Meadow Estates Project meet the criteria established by the Enterprise
Zone Act to be eligible for tax abatements as a residential business
rehabilitation project, in which the value of the improvements will exceed the
value of the land by a 5 to 1 ratio.
The project will incorporate and maintain the landscape requirement, for the
duration of the tax exemption period, as established by local ordinance #
98-30. Pine Meadow Estates has provided a concept plan with landscaping
information. The following information shall be provided, prior to the tax
abatement period, to comply with the landscaping requirement established in
said ordinance:
- Total area of the site;
- Information if there are any plans for demolition, reduction, or addition of
impervious area;
- Deed and plat information for Tax Map Parcel ID #s 089 017 010 and 064 014
001 including a map of underground public utility works in order to determine
the Right-of-Way on property parcels;
- Include a map of site topography that includes the slope;
- Include a detailed site plan showing a fifteen (15) foot wide landscaped
strip containing a minimum of three (3) canopy trees or six (6) small trees per
100 linear feet and 25 shrubs and/or ornamental grasses per 100 linear feet
must be installed adjacent to all property lines. Resolution # 499-01 indicates
that Ukraine Drive and Allied Drive are City roads; therefore, said landscaped
strip should also be incorporated on these roads;
- In order to comply with the strict Unified Development Ordinance, small
mature trees must be at least five (5) feet in height and have a caliper of at
least 11/2 inches, and large mature trees must be at least eight (8) feet in
height and have a caliper of at least 2 inches;
- Specify the type of turf or ornamental grasses to be used;
- The detailed site plan should also indicate where the ground cover will be
provided throughout the landscaped strip to minimize potential soil erosion;
- Need to designate flower beds around the plant areas and indicate where mulch
is going to be used;
- Plans to incorporate either a permanent built-in irrigation system or an
irrigation system designed and certified by a licensed landscape architect as
part of the Landscape Plan. The selected irrigation system needs to be in place
for a minimum of 1 year after planting.
Pine Meadows Estates will also create five new full time jobs in order to
provide additional economic stimulus to the area. They will maintain those five
(5) new jobs for the duration of the tax abatement period.
Financial Considerations: Tax abatements under the State of Georgia Enterprise
Zone Act will be made available to this project. Ad valorem taxes will be
abated based upon the following schedule:
One hundred percent (100%) of the property taxes shall be exempt for the first
five years
Eighty percent (80%) of the property taxes shall be exempt for the next two
years
Sixty percent (60%) of the property taxes shall be exempt for the next year
Forty percent (40%) of the property taxes shall be exempt for the next year;
and
Twenty percent (20%) of the property taxes shall be exempt for the last year
The Board of Tax Assessors has estimated that taxes abated for the ten year
period beginning with Tax Year 2011 are between $300,000.00 and $525,000.00.
Legal Considerations: Approve the resolution for Pine Meadow Estates to
receive tax abatements under the Enterprise Zone Employment Act. Projects which
take more than one year to complete are still limited to one ten-year period.
In addition, Pine Meadow Estates will show proof to The Board of Tax Assessors
every year that is maintaining those five (5) new jobs required under the
Enterprise Zone Employment Act.
The Board of Tax Assessors also requires to be notified of the status of the
project as of January 1 of each year in order to grant the abatement. This
information enables the Board to value the property at the stage of completion
as of the January 1 valuation date as set by Georgia code. The Board would need
to know when the project is considered completed.
The only personal property which has been approved for recognition within the
Enterprise Zone is machinery and equipment which is permanently located within
the EZ. Pine Meadow Estates consists of three tax parcels, but only two are
located within the EZ. The office and leasing is located in the portion not in
the EZ. Equipment and machinery would be used for the entire park. Therefore,
the personal property is not eligible for EZ tax abatements.
Recommendations/ Actions: Approval is requested of a Resolution for Tracy L.
Sayers Investments, LLC/Pine Meadow Estates to receive ad valorem tax
abatements only (with the exclusion of school and general obligation debt
levies) as specified under the Enterprise Zone Employment Act.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING APPROVAL OF THE REQUEST FOR PINE MEADOW ESTATES
LOCATED AT 901 JOY ROAD TAX MAP PARCEL ID #S 064 014 001 and 089 017 010 TO
RECEIVE TAX ABATEMENTS UNDER THE STATE OF GEORGIA ENTERPRISE ZONE ACT.
WHEREAS, Pine Meadow Estates (Tax Map Parcel ID #s 064 014 001 and 089 017 010)
is located within the boundaries of the Columbus Business Development Center
(Enterprise Zone); and,
WHEREAS, Pine Meadow Estates proposes to install and refurbish 250 model rental
manufactured housing units to bring them up to consistent standards with
certificates of occupancy from the Columbus Consolidated Government; and,
WHEREAS, the project meets the Enterprise Zone criteria as a residential
business rehabilitation project, in which the value of the improvements will
exceed the value of the land by a 5 to 1 ratio; and,
WHEREAS, Pine Meadow Estates will create five new full time jobs, prior to the
tax abatement period, and maintain those jobs during the full length of the tax
abatement period in order to provide additional economic stimulus to the area;
and,
WHEREAS, Pine Meadows Estates will provide operating statements, income and
expense information, as well as January rent roll on the entire complex to the
Board of Tax Assessors at the stage of completion as of the January 1 valuation
date as set by Georgia code; and,
WHEREAS, the project will incorporate and maintain the landscaping requirement,
for the duration of the tax exemption period, as established by local Ordinance
# 98-30.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the Council of the Consolidated Government of Columbus hereby, authorizes
and approves Pine Meadow Estates, located at 901 Joy Road Tax Map Parcel ID #s
064 014 001 and 089 017 010, to receive abatement of taxes as allowed by law
under the Enterprise Zone Employment Act of the State of Georgia. Tracy L.
Sayers Investments, LLC/Pine Meadow Estates shall comply with the following
items in order to receive those tax abatements:
1. Pine Meadow Estates will show proof to The Board of Tax Assessors
every year that is maintaining those five (5) new jobs required under the
Enterprise Zone Employment Act. Failure to maintain those new jobs will result
in the termination of the tax abatements.
2. The Board of Tax Assessors also requires to be notified of the
status of the project as of January 1 of each year in order to grant the
abatement. This information enables the Board to value the property at the
stage of completion as of the January 1 valuation date as set by Georgia code.
The Board would need to know when the project is considered completed.
3. The project will incorporate and maintain the landscape requirement,
for the duration of the tax exemption period, as established by local ordinance
# 98-30. The applicant shall also be required to follow any additional
requirements as determined by the City Arborist.
4.Landscaping shall be in place and approved by the City Arborist prior
to the granting of the tax abatements.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________day of _____________, 2010 and adopted at said meeting by the
affirmative vote of _____________members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Hunter voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
___________________________________ _____________________________
Tiny B. Washington, Clerk of Council , Mayor
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