Memorandum 15-097 Economic Development Advisory Commission Recommendations for Affordable Housing

Memorandum 15-097

TO:                       MAYOR WYTHE AND HOMER CITY COUNCIL

FROM:                  MELISSA JACOBSEN, CMC, DEPUTY CITY CLERK

DATE:                   JUNE 22, 2015

SUBJECT:           ECONOMIC DEVELOPMENT ADVISORY COMMISSION RECOMMENDATION REGARDING AFFORDABLE HOUSING

On May 14, 2012 the City Council designated Community Economic Develop Strategy (CEDS) priorities and requested the Economic Development Advisory Commission review and provide recommendations regarding implementation strategies, including timetables, responsible parties, and funding.

In January 2015 the Commission followed up with Council via Memorandum 15-013 regarding an affordable housing incentive and at their June 9, 2015 regular meeting they took the following action which passed with four yes votes and one no vote:

BROWN/ARNO MOVED THAT THE RECOMMENDATION FOR THIS PROPOSAL TO GO FORWARD FOR CITY COUNCIL TO CONSIDER WITH THE OUTLINE SUGGESTED:

New Business and Housing Incentives on Homer Undeveloped Land

7 year trial period
All new construction, (business and residential) on UNDEVELOPED LAND

Note: applies to new construction only, not additions

Waive city taxes on improvements for a period of 10 years

Benefits:

Promoting development on undeveloped land available in Homer
Promoting and attracting new businesses
Promoting Living Wage Jobs by local industries and increased support services
Increasing use and service fee infrastructures of city; sewer, water, gas, electric
Promoting new users to sales tax base, not just a target group of individuals
Promoting and encouraging a base for construction which includes anticipating the LNG Pipeline benefits

RECOMMENDATION: Consider the proposal from the Economic Development Advisory Commission, determine if the recommendation is feasible and whether to bring forward an ordinance or resolution to implement the tax incentive program.