RESOLUTION NO by D5E8A3

VIEWS: 4 PAGES: 9

									                   ORDINANCE NO. _________________

      AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
      MCKINNEY, TEXAS, AMENDING CHAPTERS 29, 36 AND 41 OF
      THE CITY OF MCKINNEY CODE OF ORDINANCES BY ADDING
      SECTIONS    29-35.1   RELATING   TO    A   HISTORIC
      NEIGHBORHOOD IMPROVEMENT ZONE; ADDING 29-35.2
      RELATING TO A HISTORIC NEIGHBORHOOD IMPROVEMENT
      ZONE PROGRAM; ADDING 29-35.3 RELATING TO A
      NEIGHBORHOOD EMPOWERMENT ZONE; AMENDING 36-24
      RELATIVE TO THE BUILDING AND STANDARDS COMMISSION
      JURISDICTION    AND    AUTHORITY   REGARDING    TAX
      EXEMPTIONS UNDER THE HISTORIC NEIGHBORHOOD
      IMPROVEMENT ZONE PROGRAM; AMENDING 41-235
      RELATIVE TO THE HISTORIC PRESERVATION ADVISORY
      BOARD      POWER      REGARDING     THE    HISTORIC
      NEIGHBORHOOD       IMPROVEMENT    ZONE   PROGRAM;
      PROVIDING A SEVERABILITY CLAUSE; PROVIDING A
      PENALTY PROVISION; AND PROVIDING FOR AN EFFECTIVE
      DATE.

WHEREAS, the City of McKinney City Council appointed a committee to study
         and initiate programs to benefit property owners who desire to
         invest in the diverse housing mix in historic, central McKinney; and

WHEREAS, the committee adopted a philosophy whereby its proposed
         programs are tailored to preserve the City’s unique and historic
         neighborhoods while encouraging property owners to maintain
         and/or rehabilitate their residences; and

WHEREAS, the committee desires to initiate its first program (Phase I) to raise
         awareness to the larger, integrated set of economic initiatives for
         the affected areas; and

WHEREAS, the committee seeks City Council consideration of a program
         wherein owners in a defined geographic Historic Neighborhood
         Improvement Zone (“HNIZ”) may receive tax exemptions based on
         verified investment meeting specified criteria; and

WHEREAS, the HNIZ program would allow owners to receive an exemption of
         up to 100% of their City of McKinney ad valorem taxes for up to
         fifteen (15) years based upon specified historic designations and
         residential improvement expenditures; and
WHEREAS, the creation of a Neighborhood Empowerment Zone overlay of the
         area comprising the HNIZ program will help promote rehabilitation
         of affordable housing in the zone; and

WHEREAS, the City Council of the City of McKinney is of the opinion that the
         HNIZ program should be implemented allowing for an exemption of
         ad valorem taxes for residential property owners within the HNIZ
         area who qualify for and meet the requirements of the program; and

WHEREAS, the City Council of the City of McKinney desires that the creation of
         a Neighborhood Empowerment Zone will benefit the citizens of the
         City, by increasing the public health, safety, and welfare of the
         citizens and that this area meets the requirements of Section
         312.202, Tax Code as a reinvestment zone.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF MCKINNEY, TEXAS, THAT:

Section 1. All of the above premises are found to be true and correct and are
incorporated into the body of the Ordinance as if copied in their entirety.

Section 2. The Code of Ordinances of the City of McKinney, Texas, Chapter
29 is hereby amended by adding Sections 29-35.1, 29.35.2 and 29.35.3 which
shall read as follows:

“Sec. 29-35.1. Historic Neighborhood Improvement Zone

A Historic Neighborhood Improvement Zone (“HNIZ”) is hereby created for the
purpose of preserving the City’s unique and historic neighborhoods while
encouraging property owners to maintain and/or rehabilitate their residences.
The HNIZ shall be bounded by US 380, US 75, Park View Avenue, Wilson Creek
Parkway, Tennessee Street, Industrial Boulevard, and Airport Drive, as shown on
the graphic labeled Exhibit A attached hereto.

Sec. 29-35.2. Historic Neighborhood Improvement Zone Program

A Historic Neighborhood Improvement Zone Program (“Program”) is created
wherein owners in the defined geographic HNIZ may receive tax exemptions
based on verified investment meeting specified criteria. This Program consists of
three (3) levels of participation and corresponding tax exemptions.

(a)    Level 1: Residential properties which receive the designation of the
Historic Marker Program by the HPAB would receive a 100% exemption of the
City’s ad valorem taxes for a period of 15 years. The process and criteria for
receiving the Historic Marker designation are as follows:
         Purpose: The purpose of the Marker Program is to encourage owners of
         historic properties to become actively involved in the preservation of
         McKinney's historic past through the recognition of historic events, people,
         and architecture.

         The marker, if awarded, would allow the owner of the building to apply
          for a tax incentive provided the building has been rehabilitated/restored
          according to the Secretary of the Interior's Standards.

         The following requirements would have to be met to obtain a marker:
          o Written documented history.
          o The building must be a minimum of 50 years of age
          o The house must be located within the HNIZ
          o Photo documentation of all four elevations using B&W photos with
             negatives, color slides, and copies of any available historic
             photographs.
          o Legal description of the property with a location map.
          o Site plan of the property.

           The application is reviewed by the Historic Preservation Officer (HPO).
           The HPO may ask for additions or revisions to the documentation if
           necessary. Once the application is completed the HPO will send a staff
           report to the Historic Preservation Advisory Board (HPAB) for approval
           or denial of the historic marker application, with appropriate appeals to
           the City Council.

          If awarded, the owner may purchase and display the marker.

           If the HPAB approves the marker the applicant may make application
           for a tax incentive providing the building has architectural integrity and
           has been properly rehabilitated/restored and maintained.

(b)      Level 2: Owners shall submit plans for exterior improvements to
residential properties to the HPO. The owner may then receive a letter of
eligibility if the improvements qualify for the Program. Thereafter, owners who
make verified exterior improvements, including but not limited to roof, windows,
foundation, and siding) consistent with applicable codes, both historic district and
building codes, as applicable, in any 12-month period beginning with receipt of a
letter of eligibility and having a combined cost in excess of $10,000, during that
12-month period, may receive an exemption of 50% of the City’s ad valorem
taxes for a period of 15 years, as finally determined by applications submitted to
the Building and Standards Commission. Owners may submit additional
applications under Level 2 during any period of exemption. If such applications
are approved, the exemption period shall be extended from the date of the last
approval. In such event, the exemption periods run concurrently until the earliest
approval expires and continues until the latter approval expires.
(c)      Level 3: Owners shall submit plans for improvements to residential
properties to the HPO and to the Building Permits department. The owner may
receive a letter of eligibility, if the improvements qualify for the Program. Owners
who make verified exterior improvements (roof, windows, foundation, and siding)
consistent with applicable codes, both historic district and building codes, as
applicable, or who make verified interior improvements to upgrade interior
systems to current building codes, including but not limited to fire, HVAC,
insulation, electrical, plumbing, or a combination of interior or exterior
improvements, in any 12-month period beginning with receipt of a letter of
eligibility and having a combined cost in excess of $5,000, during that 12-month
period may receive an exemption of 30% of the City’s ad valorem taxes for a
period of 15 years, as finally determined by applications submitted to the Building
and Standards Commission.                If an owner submits plans for additional
improvements under Level 2 or Level 3 during any period of exemption
previously granted under Level 3, such owner, upon approval of the Building and
Standards Commission, shall receive an exemption of 50% of the ad valorem
taxes for a period of 15 years from the date of such approval.

(d)     Aggregate Cap (per year): The City Council may impose an aggregate
cap on the total amount of ad valorem taxes which would be exempted in any
budget year under any or all of the levels set forth in subsections (a) – (c) of this
Section. The annual cap shall be exhausted on a “first come, first served” basis,
as determined by the actual date the City receives a completed application. The
cap shall be a tool to limit any budgetary concerns based on yearly fluctuations in
tax revenues, and as such, the annual cap may be raised or lowered each year
by the City Council. For calendar year 2007 and continuing annually thereafter
until otherwise adjusted by the City Council, the aggregate cap on exempted ad
valorem taxes shall be $50,000 per year.

(e)   Program Suspension: The City Council may suspend the Program at any
time.

(f)     Implementation: The City shall set up an application process providing for
the review of applications, verification of improvements and certification of the
exemptions. The exemption may continue and be transferable upon sale of the
property so long as an annual written certification by the owner is timely received
by the City. Code inspection and periodic checks on annual owner certifications
for previously-constructed exterior improvements shall be a key element to
verification of new construction as well as maintenance of improvements.

(g)    Neighborhood Empowerment Zone (NEZ) Overlay under Local
Government Code Chapter 378: The HNIZ would be geographically coexistent
with the NEZ. Owners in the NEZ who qualify under any level set forth in
subsections (a) – (c) would receive residential building permit fee waivers on any
construction, including residential inspection fees.       Also, new residential
construction in the NEZ would receive residential impact fee waivers.

Sec. 29-35.3 Neighborhood Empowerment Zone

A Neighborhood Empowerment Zone (“NEZ”) as set forth in Local Government
Code Chapter 378, as amended, is hereby created to promote the rehabilitation
of affordable housing in the NEZ. The NEZ shall be geographically coexistent
with the HNIZ.”

Section 3. The Code of Ordinances of the City of McKinney, Texas, Section
36-24 is hereby amended, in part, to read as follows

“Sec. 36-24. Jurisdiction and authority.

                                      ***
(b) Authority and functions. The building and standards commission may:

      (1) Declare a building substandard in accordance with the powers
      granted by subchapter C, chapter 54, Texas Local Government Code, as
      amended, and in accordance with subchapter A, chapter 214 of the Texas
      Local Government Code, as amended;
      (2) Require, within a fixed period, the reduction in occupancy load of an
      overcrowded structure or the vacation of a structure that is dangerous to
      the health, safety, or welfare of the occupants;
      (3) Order, in the appropriate case, the immediate removal of persons or
      property found on private property, enter on private property to secure the
      removal if it is determined that conditions exist on the property that
      constitute a violation of an ordinance, and order action to be taken as
      necessary to remedy, alleviate or remove any substandard building found
      to exist;
      (4) Require, within a fixed period, the removal of personalty from a
      structure ordered vacated or demolished. Removal may be accomplished
      by use of city staff or a private transfer company if the owner of the
      personalty is not known, or the whereabouts of the owner cannot be
      ascertained, or the owner fails to remove the personalty. The commission
      may cause any personalty removed to be stored in the care and custody
      of a bonded warehouse facility. Costs of removal and storage are the
      responsibility of the owner of the personalty. The personalty may be
      disposed of, and associated costs assessed, to the extent and as allowed
      by law;
      (5) Require, within a fixed period, the demolition of a structure found to
      be a public nuisance, by the owner or by the city;
      (6) Require, within a fixed period, as an alternative to demolition of a
      structure found to be a public nuisance, or in violation of an ordinance, the
      repair of the structure by the owner within a fixed period or by the city;
      (7) Require that the owner, lienholder or mortgagee of property repair a
      structure and bring same into compliance with current codes and
      applicable standards;
      (8) Require or cause the correction, within a fixed period, of a dangerous
      condition, as defined by city ordinance or state law, on the land.
      Correction of a dangerous condition may be accomplished by city staff or
      private contractor. Costs of correction are the responsibility of the owner;
      (9) Require that structures be secure against entry within a reasonable
      time based upon the evidence presented to the commission and as
      determined to be in the best interest of the health, safety and general
      welfare of the citizens;
      (10) Issue orders or directives to any peace officer of the state, including
      a sheriff or constable or the chief of police of the city, to enforce and carry
      out the lawful orders or directives of the commission;
      (11) Determine the amount and duration of the civil penalty the city may
      recover against the owner or owner's representative with control over the
      premises, in a suit for such purpose, on proof that such party was notified
      of the provisions of the ordinance, as defined herein, and after receiving
      notice of the ordinance provisions, said party committed acts in violation of
      the ordinance or failed to take action necessary for compliance with the
      ordinance, such civil penalty not to exceed one thousand dollars
      ($1,000.00) a day for violation of such ordinance, all as provided by
      section 54.017, chapter 54, Texas Local Government Code, and as
      amended;
      (12) Grant variances in accordance with provisions hereinafter stated
      when, in the opinion of the commission, a literal interpretation of the
      housing and substandard building code, the housing code and the Uniform
      Code for the Abatement of Dangerous Buildings, as adopted and as
      amended, would result in the imposition of an unnecessary or
      unreasonable hardship, provided that the variance would not create or
      allow the existence of a hazardous condition, as defined by city ordinance
      or state law; and
      (13) Hear appeals and offer interpretations of the housing and
      substandard building code, the housing code, the Uniform Code for the
      Abatement of Dangerous Buildings, the 2000 Edition of the International
      Building Code, and the 2000 Edition of the International Residential Code,
      the Uniform Fire Code, the 2000 Edition of the International Mechanical
      Code, the 1999 Edition of the National Electrical Code, the 2000 Edition of
      the International Electrical Code, and the 2000 Edition of the International
      Plumbing Code adopted by the city, and as amended.
      (14) Determine the eligibility and length of ad valorem tax exemptions
      for applications submitted under the Historic Neighborhood Improvement
      Zone Program.”

Section 4. The Code of Ordinances of the City of McKinney, Texas, Section
41-235 is hereby amended, in part, to read as follows:
“Sec. 41-235. Historic preservation advisory board.

                                          ***
(4) The board shall have the power to:

       (a)    Adopt rules and procedures as necessary to provide for the orderly
              conduct of board meetings.
       (b)    Recommend criteria for the identification of historic, architectural and
              cultural landmarks.
       (c)    Conduct surveys and maintain an inventory of significant historic,
              architectural and cultural landmarks and historic districts within the city.
       (d)    Maintain written minutes which record all recommendations and actions
              taken by the board and the reasons for taking such actions.
       (e)    Recommend conferral of recognition upon the owners of landmarks or
              within districts by means of certificates, plaques or markers.
       (f)    Increase public awareness of the value of historic, cultural and
              architectural preservation by encouraging and participating in public
              education programs developed by the historic preservation officer.
       (g)    Make recommendations to the city concerning the utilization of state,
              federal or private funds to promote the preservation of landmarks and
              historic districts within the city.
       (h)    Recommend the acquisition of landmark structures by the city where its
              preservation is essential and where private preservation is not feasible.
       (i)    Recommend specific design guidelines for the review of landmarks and
              districts to ensure compatibility within the district.
       (j)    Approve or deny applications for a Historic Marker under the Historic
              Neighborhood Improvement Zone Program. An application denied under
              this subsection (j) may be appealed to the City Council.”

Section 5. If any section, subsection, paragraph, sentence, phrase or clause
of this Ordinance shall be declared invalid for any reason whatsoever, such
decision shall not affect the remaining portions of this Ordinance, which shall
remain in full force and effect, and to this end, the provisions of this Ordinance
are declared to be severable.

Section 6.    This ordinance shall be reviewed by the City Council at its first
regular meeting in 2022 to evaluate the benefits of the programs and to
determine whether to amend or repeal any or all provisions hereof.

Section 7. It shall be unlawful for any person, firm or corporation to develop
this property, or any portion thereof, in any manner other than is authorized by
this Ordinance, and upon conviction therefore, shall be fined any sum not
exceeding $2,000.00, and each day that such violation shall continue shall be
considered a separate offense. These penal provisions shall not prevent an
action on behalf of the City of McKinney to enjoin any violation or threatened
violation of the terms of this Ordinance, or an action for mandatory injunction to
remove any previous violation hereof.
Section 8. The caption of this Ordinance shall be published one time in a
newspaper having general circulation in the City of McKinney, and shall become
effective upon such publication.

DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF
MCKINNEY, TEXAS ON THIS THE ____ DAY OF FEBRUARY, 2007.


                                             __________________________
                                              BILL WHITFIELD, MAYOR

CORRECTLY ENROLLED:




_________________________________
SANDY HART, CMC, CITY SECRETARY
BEVERLY COVINGTON, DEPUTY CITY SECRETARY

APPROVED AS TO FORM:




________________________________
MARK S. HOUSER, CITY ATTORNEY
                  Exhibit A

Historic Neighborhood Investment Zone Graphic

								
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