Collins Place incentives approved
It would qualify for $59,100 in tax breaks on the commercial portion of the building over five years and $94,560 in property tax breaks for two years on the residential portion of the building, based on 2012 property tax mill levies, but these are expected to change with the new tax statements.
The developer opted out of a state income tax exemption as allowed and chose a depreciation of the asset instead, said City Business Development Director Ellen Huber.
The four-story building will consist of 3,000 square feet of commercial space with 29 apartments — one to three bedrooms. It has a footprint of 11,513 square feet and the whole area of the project is 46,052 square feet.
It will have 12 parking spaces on the interior of the lot and the developer intends to enter into a rental agreement with the city for about 25 available spaces in the lot east of the fire station.
The value of the building when completed will be $3 million.
Developer Crown Equity LLC. will invest nearly $3.9 million in the project.
Once work begins on the project, employees of neighboring businesses in the area who have been using the vacant lot for parking will need to park elsewhere.
The city’s designation of the project allows some incentives to be canceled if the developer doesn’t meet all of the terms in the agreement.
If the developer does not have the commercial space fully leased or sold and occupied within one year of certification of occupancy, half of any commercial space tax benefits for the building would be withdrawn by the city. If the commercial space is not fully leased or sold and occupied within two years of the certificate of occupancy, the other half of the Renaissance zone tax benefits would be withdrawn for that part of the building.